Benson Hill, Inc. (BHIL)·Q2 2024 Earnings Summary

Executive Summary

• Q2 2024 revenue rose to $33.8M, up 44% year over year, driven by proprietary soybean grain sales and increased partnerships/licensing; net loss from continuing operations improved to $(18.0)M from $(36.5)M YoY, and Adjusted EBITDA loss narrowed to $(12.4)M from $(15.2)M YoY .
• Sequentially, revenue improved from $21.1M in Q1 2024, with continuing-ops net loss improving from $(26.3)M in Q1 to $(18.0)M in Q2; cash and marketable securities ended Q2 at $29.5M, with management reiterating cash runway through year-end 2024 .
• The company emphasized execution on an asset-light licensing model, expansion of feeding trials (broiler, turkey, swine, dairy, salmon), and strategic alternatives including a non-binding indication of interest to acquire all outstanding shares from Argonautic Ventures; herbicide-tolerant UHP-LO varieties are planned for 2026, pulled forward by one year .
• No Q2 2024 earnings call transcript was available; core qualitative updates were provided via the press release and shareholder letter .

What Went Well and What Went Wrong

What Went Well

• Revenue mix shifted toward higher-quality earnings: reported revenues increased by $10.3M YoY in Q2, driven by proprietary grain sales and partnerships/licensing, consistent with the asset-light transition .
• Operating discipline reduced losses: Adjusted EBITDA loss improved to $(12.4)M from $(15.2)M YoY due primarily to expense reductions; R&D down 27.7% YoY to $7.5M; cash used in operations and free cash flow improved on a year-to-date basis .
• Strategic pipeline and trials: “The Benson Hill team showed focus and financial discipline… while making strides in our transition to an asset-light licensing model” — CEO Deanie Elsner; nearly a dozen academic/commercial feeding trials planned over 9–12 months across species representing >80% of 30M U.S. soybean feed acres .

What Went Wrong

• Gross margin pressure: Q2 revenue ($33.8M) was below cost of sales ($34.6M), reflecting transitional mix and low-margin categories previously recognized; SG&A increased YoY due to a non-recurring 2023 stock-based comp reversal, masking underlying OpEx improvements .
• Interest expense remained a headwind: Q2 interest expense was $1.7M (though improved YoY), and net loss from continuing ops, while better, remained substantial at $(18.0)M .
• Liquidity and going-concern risks cited: Management continues to “explore sources of capital” to fund operations beyond 2024; forward-looking risk language explicitly highlights financing and covenant risks and uncertainty around strategic alternatives .

Financial Results

Headline Results: Prior Year, Prior Quarter, Current Quarter

Notes:

• EPS figures reflect the 1-for-35 reverse split effective July 18, 2024, as disclosed in the Q2 statements .
• No S&P Global estimate comparisons are presented due to unavailable S&P mapping for BHIL (see Estimates Context).

Q2 2024 Operating Detail (YoY)

First Half KPIs (Quality of Earnings & Cash)

Segment breakdown: Not disclosed numerically; management cites proprietary soybean grain sales and licensing/partnership revenue as key drivers, with discontinued operations reclassified to reflect divested processing assets .

Guidance Changes

Earnings Call Themes & Trends

(No Q2 2024 call transcript available; themes derived from shareholder letter and prior quarter call.)

Management Commentary

• “The Benson Hill team showed focus and financial discipline and delivered significantly better operating results this quarter, while making strides in our transition to an asset-light licensing model. We also strengthened strategic partnerships that are crucial for our future growth.” — CEO Deanie Elsner .
• CropOS platform: “CropOS derives insights from a vast data lake of more than 470 billion data points… driving breeding predictions with up to 80 to 85 percent accuracy… enabling a step change in the plant breeding process in terms of speed and precision.” .
• Feeding trials roadmap: “Nearly a dozen academic studies and commercial feeding trials are planned over the next 9 to 12 months… These end-user market segments represent more than 80 percent of the 30 million U.S. soybean acres used in animal feed.” .
• Strategic alternatives: A Transaction Committee is evaluating a preliminary, non-binding indication of interest from Argonautic Ventures to acquire all outstanding shares; the company does not intend further announcements until appropriate .

Q&A Highlights

(No Q2 2024 call transcript available; representative context from Q4 2023 Q&A.)

• Milestones and revenue cadence: Management emphasized that partnership/licensing transactions are the key milestones to track over the next 12–18 months as the legacy business transitions out, acknowledging potential near-term revenue volatility during the handoff .
• Deal structures: Strategic partnerships may include exclusivity or technology access fees (licensing), offtake agreements, and multi-year seed bulking to meet demand; herbicide tolerance in UHP-LO targeted for 2026 to enable broadacre adoption .
• OpEx run-rate: Cash OpEx and CapEx run-rate targeted at $55–$60M through 2024, with expected further reductions as the model scales via partnerships .

Estimates Context

• S&P Global/Capital IQ Wall Street consensus estimates were unavailable for BHIL due to missing CIQ mapping, so estimate comparisons (EPS, revenue, EBITDA) could not be presented this quarter. We will incorporate S&P Global consensus when mapping is available.

Key Takeaways for Investors

• The asset-light transition is progressing: Q2 revenue and adjusted EBITDA improved YoY, helped by proprietary sales and licensing, with sequential revenue acceleration from Q1; monitor partnership announcements and acreage adoption as primary drivers .
• Validation pipeline is broadening: Feeding trials across major species (representing >80% of U.S. soybean feed acres) are set to inform commercialization and economics; positive outcomes could expand licensing uptake and improve earnings quality .
• 2026 herbicide-tolerant UHP-LO is a pivotal milestone: Earlier-than-expected timing is likely to catalyze broadacre adoption and scale royalties, a key medium-term revenue growth lever .
• Liquidity: Cash/marketable securities of $29.5M at Q2 and reiterated runway through end-2024; near-term trading should consider financing/timing risk as strategic alternatives and capital structure options are evaluated .
• Earnings quality: Despite negative gross margin in Q2, losses narrowed and free cash flow improved substantially in H1; as low-margin legacy volumes fall away, licensing/partnership revenue should lift margin profile over time .
• Stock catalysts: Any definitive strategic transaction (Argonautic IOI process), major licensing deals, or decisive feeding-trial results could be stock-moving near term .

Citations:

• Q2 2024 8-K and press release, shareholder letter, and financial statements .
• Q1 2024 press release and shareholder letter (Business Wire) and summary coverage .
• Q4 2023 earnings call transcript .