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BH

Benson Hill, Inc. (BHIL)·Q3 2024 Earnings Summary

Executive Summary

  • Revenue of $34.1M rose 45% year-over-year on residual grain sales and licensing/partnership revenue; net loss from continuing operations was $21.9M; Adjusted EBITDA loss improved to $12.6M from $14.4M in Q3 2023 .
  • Cash and marketable securities were $14.4M at quarter-end, and management reiterated substantial doubt about going concern absent additional capital, highlighting the need to raise funds and execute the asset-light transition .
  • Strategic progress: broadened partnerships and seed licensing; continued success in broiler feeding trials with UHP-LO soy; expanded 2025 seed portfolio (30+ varieties across six platforms) .
  • Corporate catalysts: 1-for-35 reverse split (effective Jul 18) and transfer of listing to Nasdaq (Aug 26); ongoing strategic review and non-binding LOI for potential acquisition (Argonautic Ventures) .

What Went Well and What Went Wrong

What Went Well

  • “Our third-quarter results reflect Benson Hill’s financial discipline and focus as we transform our business from a closed-loop manufacturing model to an asset-light licensing model,” said CEO Deanie Elsner, emphasizing demand for soy quality traits across the supply chain .
  • Broiler feeding trial (major poultry integrator): UHP-LO soybean meal boosted final bird weights by 5.4% and improved feed conversion ratio by 3.2%, validating performance and cost advantages in veg-fed diets; trials now cover producers representing 40%+ of U.S. broiler market .
  • Cost actions drove improvement: Adjusted EBITDA loss narrowed to $12.6M (vs $14.4M YoY) and R&D/SG&A trended lower on liquidity plan execution .

What Went Wrong

  • Liquidity: cash/marketable securities fell to $14.4M and management disclosed substantial doubt about going concern, requiring additional capital and/or strategic actions to fund operations beyond Q4 2024 .
  • Continued operating losses: net loss from continuing operations was $21.9M; cost of sales increased with higher grain sales activity, compressing near-term profitability during the operating model transition .
  • Revenue mix remains narrow: international revenue was nil across 2024 quarters as the company pivots away from divested processing assets and reorients to licensing/seed sales and domestic grain .

Financial Results

Consolidated P&L and Liquidity (USD Millions, except per-share; periods oldest → newest)

MetricQ1 2024Q2 2024Q3 2024
Revenue$21.133 $33.773 $34.098
Net Loss from Continuing Ops$(26.314) $(17.983) $(21.896)
Diluted EPS – Continuing Ops$(0.14) $(3.27) $(3.95)
Adjusted EBITDA (Loss)$(7.084) $(12.413) $(12.628)
Cash & Marketable Securities (period end)$30.5 $29.5 $14.4

Segment/Geography Revenue Mix (USD Millions)

MetricQ1 2024Q2 2024Q3 2024
Domestic Revenue$21.133 $33.773 $34.098
International Revenue$0.000 $0.000 $0.000

Operating Expense KPIs (USD Millions)

MetricQ1 2024Q2 2024Q3 2024
R&D Expense$6.941 $7.456 $7.006
SG&A Expense$14.828 $10.155 $12.292

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Liquidity runwayFY2024Expected to fund operations through end of 2024 Cash/marketable securities of ~$14.4M at 9/30; substantial doubt about going concern without additional capital; runway through year-end 2024 Maintained runway, heightened going-concern risk
Listing status2024NYSE min price remediation via reverse split 1-for-35 reverse split effective Jul 18; transferred listing to Nasdaq Aug 26 Executed actions
Financing/credit2024-2029DDB facility prior terms Amended/Restated: $6M revolver (matures Dec 1, 2024) and $15.8M term loan (prime+1%, matures Apr 1, 2029); guarantor minimum cash covenant Extended, resized facilities
Revenue/EPS/margin guidance2024None providedNone providedNo change

Earnings Call Themes & Trends

Note: No Q3 2024 earnings call transcript found; themes derived from shareholder letters and 10-Q/8-K .

TopicPrevious Mentions (Q1 & Q2 2024)Current Period (Q3 2024)Trend
Asset-light transitionAnnounced pivot; divested Creston/Seymour; licensing focus; adjusted EBITDA improving Continued execution; improved quality of earnings; broadened licensing/seed partnerships Positive execution momentum
Partnerships/licensingADM exclusive collaboration existed; broadening partners across feed/formulators; plan to expand licensees/distributors Non-exclusive ADM seed supply; 20+ partners with goal to double; expanded distribution/licensing Expanding breadth
UHP-LO product performanceInitial trials showed cost/performance benefits; trials across poultry/turkey; target broadacre adoption Second integrator nearly doubled weight gains vs prior; FCR improved; trials now cover 40%+ broiler segment Strengthening validation
R&D and IPCropOS, breeding speed; portfolio expansion to 35+ varieties by 2025 23 new patent applications YTD; portfolio spans 6 platforms, adapted to 70%+ US soybean acres Building IP moat
Supply chain/geographyDomestic-centric revenue post-divestitures Domestic-only revenue; logistics around grower networks and specialty programs Stable domestic focus
Regulatory/legal/strategicLOI for potential acquisition; reverse split to maintain listing LOI terms reiterated; transfer to Nasdaq; going concern risk disclosed Elevated corporate actions

Management Commentary

  • “There is true and measurable potential for our proprietary seeds portfolio…strategic partnerships will be pivotal to delivering market-driven demand for our seed innovations” — Deanie Elsner, CEO .
  • “Our seed offering for the 2025 crop season is stronger than ever, featuring more than 30 soybean varieties…with characteristics like increased protein content, lower anti-nutrients, higher energy density, and quality oil” .
  • “UHP-LO soybean meal…boosted final bird weights by 5.4% and improved feed conversion ratios by 3.2%…supporting animal performance while reducing feed costs” (second major integrator trial) .
  • Liquidity disclosure: “There is substantial doubt about our ability to continue as a going concern” absent additional capital; cash and marketable securities ~$14.4M at quarter-end .

Q&A Highlights

No Q3 2024 earnings call transcript was located; the company posted an 8-K press release and shareholder letter in lieu of a transcript .

Estimates Context

S&P Global consensus estimates were unavailable due to Capital IQ mapping issues; therefore, estimate comparisons are not provided. We did not rely on third-party non-S&P sources to avoid potential inconsistencies (GetEstimates mapping error encountered; consensus not retrievable). Where analysts adjust models, drivers likely include: 45% YoY revenue growth from residual grain/licensing, improved Adjusted EBITDA loss, and heightened going-concern/liquidity risk disclosures .

Key Takeaways for Investors

  • The asset-light licensing pivot is gaining traction (partners, seed portfolio breadth), but near-term profits remain pressured by grain sales mix and operating transition; Adjusted EBITDA loss narrowed to $12.6M .
  • Liquidity is the central risk: $14.4M cash/marketable at quarter-end and “substantial doubt” about going concern absent capital; expect financing/strategic updates to be key stock drivers near term .
  • Operational validation: compelling UHP-LO feed trial results (weight/FCR gains) support adoption across broiler producers, a potential catalyst for acreage/licensing revenues through 2025-2026 .
  • Corporate events (reverse split, Nasdaq transfer, strategic review/LOI) stabilize listing status but add event risk; monitor execution and disclosure cadence .
  • Revenue is now domestically concentrated post-divestitures; scaling licensing/seed sales should gradually diversify and improve quality of earnings .
  • Credit facility amendment extends term loan to 2029 with covenants; maintaining minimum cash and covenant compliance is essential while pursuing capital/partnerships .
  • Estimate revisions likely focus on improved revenue growth and non-GAAP loss trajectory offset by liquidity constraints; absence of formal guidance continues .