Executive Summary

Q1 2024 revenue fell to $21.1M as Benson Hill exited low‑margin trading and transitioned to an asset‑light licensing/partnership model; gross profit improved to $5.2M on mix shift toward higher‑margin licensing .
Operating expenses decreased to $21.8M (Operating expenses, as adjusted: $17.5M), driving a significantly smaller Adjusted EBITDA loss of $7.1M vs. $14.5M a year ago; free cash flow loss improved to $10.7M from $36.9M .
Liquidity actions: cash used in operating activities from continuing operations was $10.2M; cash and marketable securities ended at $30.5M; the company retired ~$59M of convertible notes in February and subsequently amended its DDB credit facility in May (revolver $6M; term loan $15.8M; guarantor minimum cash covenant) .
Management emphasized progress toward licensing in animal feed (Perdue feeding trials), cost reductions, and capital structure optimization; formal numeric guidance not provided, but the company expects lower revenue and improved margin profile over time as licensing scales .
Wall Street consensus (S&P Global) was unavailable for BHIL this quarter due to missing SPGI mapping; therefore, beat/miss vs. estimates could not be assessed (attempted SPGI retrieval, no mapping available).

What Went Well and What Went Wrong

What Went Well

Gross profit increased to $5.2M (+13% YoY) despite lower revenue, reflecting shift away from low‑margin trading and toward higher‑margin licensing contracts .
Operating expenses fell to $21.8M (Operating expenses, as adjusted: $17.5M), cutting Adjusted EBITDA loss to $7.1M and improving free cash flow loss to $10.7M; management cited expanded Liquidity Improvement Plan execution .
Strategic progress: divestiture of Creston and retirement of ~$59M convertible notes; May 7 FNBO facility amendment provides revolver and term loan capacity to fund DDB operations; ongoing partnerships and animal feed validation (Perdue trials) support the licensing roadmap .
- CEO: “We…strengthen our balance sheet and enhance our financial flexibility…drive operational efficiencies and reduce operating costs” .

What Went Wrong

Revenue declined 57% YoY to $21.1M as 2023 low‑margin trading volumes did not repeat and non‑proprietary soybean sales fell; licensing ramp remains in early stages .
Net loss from continuing operations widened to $26.3M, driven by interest expense and lack of the prior year’s large non‑cash warrant/conversion gains .
Going concern risk disclosed: while actions reduced debt and OpEx, management noted substantial doubt absent additional capital and strategic revenue scaling; minimum cash covenants under FNBO add constraints .

Financial Results

Metric	Q1 2023	Q1 2024
Revenue ($USD Millions)	$48.667	$21.133
Gross Profit ($USD Millions)	$4.643	$5.238
Total Operating Expenses ($USD Millions)	$25.869	$21.769
Net Loss from Continuing Operations ($USD Millions)	$(6.785)	$(26.314)
Diluted EPS – Continuing Ops ($USD)	$(0.04)	$(0.14)

Segment/Geography and Revenue Timing

Metric	Q1 2023	Q1 2024
Domestic Revenue ($USD Millions)	$25.576	$21.133
International Revenue ($USD Millions)	$23.091	$0.000
Revenue – Point in Time ($USD Millions)	$46.125	$17.792
Revenue – Over Time ($USD Millions)	$2.542	$3.341

KPIs and Cash/Liquidity

Metric	Q1 2023	Q1 2024
Adjusted EBITDA ($USD Millions)	$(14.462)	$(7.084)
Operating Expenses, as Adjusted ($USD Millions)	$25.757	$17.483
Free Cash Flow Loss ($USD Millions)	$(36.908)	$(10.651)
Cash used in Operating Activities (Continuing Ops) ($USD Millions)	$(34.511)	$(10.242)
Cash & Marketable Securities (Period End) ($USD Millions)	$—	$30.5

Balance Sheet and Prior Quarter Liquidity Reference

Metric	Dec 31, 2023	Mar 31, 2024
Cash & Cash Equivalents ($USD Millions)	$8.934	$6.646
Marketable Securities ($USD Millions)	$32.852	$23.852
Cash, Cash Equivalents & Restricted Cash ($USD Millions)	$16.081	$6.675
Long-term Debt, total ($USD Millions)	$60.451 (incl. current)	$6.771

Notes:

Cash & marketable securities in Executive Summary reflect $30.5M (management’s presentation, includes discontinued operations cash) ; detailed balance sheet presents continuing operations .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	Not provided (Q4 call indicated lower revenue due to divestitures)	No numeric guidance provided; management expects lower revenue in transition year and improved earnings quality over time	Maintained narrative (no formal ranges)
Margin Profile	FY 2024+	N/A	Expect margins to increase over time as royalty/licensing revenues scale	Qualitative raised (margin trajectory)
OpEx/Cost Actions	FY 2024	Run-rate OpEx $55–$60M goal (Q4 commentary)	Continuing cost discipline; Operating expenses, as adjusted down to $17.5M in Q1	Maintained progress
Capital Structure	2024	Target debt retirement; explore financing	Retired ~$59M convertible notes (Feb); amended FNBO facility (May)	Executed actions

No dividend, tax, OI&E or segment-specific numeric guidance disclosed for Q1; management reiterated strategic roadmap rather than publishing formal ranges .

Earnings Call Themes & Trends

Topic	Q3 2023 Mentions	Q4 2023 Mentions	Q1 2024 Current Period	Trend
Transition to licensing/asset‑light	Announced divestitures; plan to license for animal feed; UHP‑LO traits and HT roadmap	Emphasized lower revenue in 2024 transition; licensing/partnership KPIs; OpEx run‑rate	Reported higher‑margin licensing revenue; operating cost reductions; shareholder letter reinforces licensing model	Continued execution; licensing ramp in early innings
Debt/Capital structure	Ongoing plan to retire senior term loan	Retired senior debt; exploring financing alternatives	Retired ~$59M converts (Feb) and amended FNBO facility (May)	Balance sheet de‑risking; covenants remain
Animal feed validation	Multi‑species feed studies planned; Holy Grail product feedback	Continued offtake and licensing groundwork	Perdue feeding trial results cited; value creation $100–$230 per acre targeted	Validation strengthening
Cost discipline	Identified $33M+ OpEx reductions	Run‑rate OpEx target $55–$60M	Operating expenses, as adjusted cut to $17.5M in Q1; free cash flow improved	Sustained reduction
Guidance posture	Directional only	Directional only	No formal numeric guidance; margin trajectory emphasized	Unchanged stance

Management Commentary

CEO statement: “2024 represents a year of transition as we evolve our business to a licensing model… strengthen our balance sheet and enhance our financial flexibility… drive operational efficiencies and reduce operating costs” .
CFO view: “As we transition… our revenues and costs will be lower, and our margins will increase over time, which will drive improvement in the quality of our earnings” .
Strategic milestones: divested Creston, retired ~$120M high‑cost debt cumulative, expanded seed portfolio testing (42 varieties across 358 locations), and Perdue feeding trial validation implying $100–$230 per acre value vs. commodity soy .

Q&A Highlights

No Q1 2024 earnings call transcript available in the document set. From Q4 2023 Q&A (relevant to current period):
- Licensing cadence: deals may include exclusivity/technology access fees; seed bulking expected over two years with HT traits entering field in 2026 and broadacre in 2027 .
- OpEx run‑rate: targeted $55–$60M in 2024 with further improvements as partnership model scales .
- Milestones to track: partnership/licensing announcements and transition completion (legacy runoff) .

Estimates Context

S&P Global/Capital IQ consensus EPS and revenue estimates for BHIL were unavailable due to missing SPGI company mapping at the time of analysis; therefore, we cannot assess beat/miss vs. Wall Street consensus this quarter. Values retrieved from S&P Global were attempted but unavailable due to missing mapping.

Key Takeaways for Investors

Licensing shift is working through P&L: revenue down sharply as low‑margin trading exits, but gross profit improved and Adjusted EBITDA loss narrowed; watch for sustained mix‑driven margin gains as royalties/fees scale .
Liquidity improved via February debt payoff and May facility amendment, but going‑concern disclosure persists; securing non‑dilutive financing and licensing offtakes are critical near‑term catalysts .
Operational execution on cost cuts is visible (Operating expenses, as adjusted down to $17.5M), supporting free cash flow improvement; continued discipline remains key in transition year .
Animal feed validation (Perdue trials) and expanded seed testing underpin the licensing value proposition; tangible offtake/licensing deals would be meaningful stock catalysts .
Expect limited near‑term revenue with improving earnings quality; monitor covenant compliance (minimum cash) and FNBO facility metrics while the licensing flywheel spins up .
Absence of formal guidance suggests execution milestones, financing and partnership announcements will drive narrative and stock reaction more than quarterly prints .
SPGI consensus unavailable this quarter; future mapping would enable cleaner beat/miss analysis.

Sources: Q1 2024 10‑Q, Q1 2024 8‑K (press release & shareholder letter), Q4/Q3 2023 earnings call transcripts.

Benson Hill, Inc. (BHIL)·Q1 2024 Earnings Summary