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DYADIC INTERNATIONAL INC (DYAI)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered modest revenue while FY 2024 improved YoY; total FY revenue rose to $3.50M (+20.6% YoY), driven by $1.0M Proliant license and ~$0.89M Inzymes success fees . Against Street, FY revenue missed consensus ($3.50M vs $4.30M*) and Q4 revenue missed ($0.82M vs $1.60M*); FY EPS was -$0.20 vs -$0.18* consensus, a slight miss .
  • Liquidity strengthened: cash and investment-grade securities were $9.29M at year-end (vs $7.27M prior year), supported by convertible notes financing; balance sheet showed $7.46M total liabilities, including $4.98M in convertible notes (incl. related party) .
  • Strategic catalysts: CEPI funding (up to $4.5M, with Dyadic to receive up to $2.4M) and Gates Foundation $3.0M grant bolster platform validation and potential 2025 revenue opportunities . Near-term commercialization targets include Human Serum Albumin (expected Q2 2025) and DNase1 research-grade rollout .
  • Management emphasized a dual-track strategy: monetize alternative proteins (albumin, transferrin, DNase1, dairy enzymes) while advancing human/animal health via C1 collaborations; tone constructive on adoption and non-dilutive funding .

What Went Well and What Went Wrong

What Went Well

  • Alternative proteins monetization accelerated: $1.0M license from Proliant and ~$0.89M from Inzymes success fees; management: “$1.9 million in revenue from our cell culture media and non-animal dairy segments” .
  • Non-dilutive validation and funding: CEPI awarded $4.5M to FBS (Dyadic to receive up to $2.4M) to speed C1 vaccine development; Gates Foundation granted $3.0M for mAbs in RSV/malaria .
  • Quote: “We’re launching our first commercial products… recombinant albumin, non-animal dairy, DNase1… broadening the adoption of our microbial platforms” – CEO, closing remarks .

What Went Wrong

  • Miss vs Street: Q4 revenue ~$0.82M vs $1.60M* consensus; FY revenue $3.50M vs $4.30M*; FY EPS -$0.20 vs -$0.18*, reflecting continued operating losses and lower-than-expected top line .
  • Other income fell sharply YoY (to $0.09M from $1.43M) due to interest expense from convertible notes and absence of 2023 Alphazyme gain, pressuring net results .
  • Continued net losses and operating loss FY 2024 (-$5.81M net, -$5.90M operating), underscoring scale-up and commercialization execution risk despite pipeline progress .

Financial Results

Quarterly Performance

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD)$0.386M $1.958M $0.817M*
Net Income ($USD)-$2.045M -$0.203M -$1.551M*
Net Loss per Share ($)-$0.07 -$0.01 N/A
Cash + Investment Securities ($USD)$10.10M $10.00M $9.29M

Values marked with * retrieved from S&P Global.

Full-Year Comparison

MetricFY 2023FY 2024
Revenue ($USD)$2.899M $3.495M
Net Loss ($USD)-$6.795M -$5.809M
Basic/Diluted EPS ($)-$0.24 -$0.20
Cash + Investment Securities ($USD)$7.273M $9.288M

Versus Estimates

MetricPeriodActualConsensusSurprise
Revenue ($USD)Q4 2024$817,376*$1,600,000*-$782,624 (−48.9%); miss
Revenue ($USD)FY 2024$3,495,389 $4,300,000*-$804,611 (−18.7%); miss
EPS ($)FY 2024-$0.20 -$0.18*-$0.02; miss
EPS ($)Q4 2024N/A-$0.04*N/A

Values marked with * retrieved from S&P Global.

Segment Breakdown

ItemDetail
Operating SegmentsSingle segment: development/commercialization of synthetic protein products via C1 and Dapibus™ platforms

KPIs and Operating Drivers

KPIFY 2024Notes
License/Milestone Revenue~$1.90MProliant $1.0M; Inzymes ~$0.89M success fees
Collaborations (revenue sources)19FY 2024 vs 16 in FY 2023
Convertible Notes Outstanding~$4.98M$3.91M notes + $1.07M related party (net)
Cash + Investments$9.29MAs of 12/31/2024

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Human Serum Albumin (HSA) launch timingH1 2025H1 2025 expected Q2 2025 expected; third milestone payment anticipated Q3 2025 Refined timing (maintained window; specified Q2); milestone cadence clarified
DNase1 (RNase-free) research-gradeEarly 2025Preorders early 2025; sampling ongoing Process validation with EU CDMO; initial manufacture progressing Maintained; execution detail added
Dairy enzyme commercializationLate 2025H1 2025 target noted earlier in some contexts Launch anticipated late 2025; productivity milestone received in 2024 Deferred to late 2025; milestone achieved
Grants (CEPI/Gates)2025Applications submitted CEPI $4.5M award (Dyadic up to $2.4M); Gates $3.0M awarded Raised (secured awards)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2, Q3 2024)Current Period (Q4 2024)Trend
Alternative proteins monetization (albumin, transferrin, DNase1)Proliant deal; COAs for albumin/transferrin; DNase1 sampling; $425k dairy enzyme success fee HSA on track for Q2 2025; transferrin/FGF sampling in 2025; DNase1 process validation with EU CDMO Continued execution; commercialization clarity improving
Grants and non-dilutive fundingGrant submissions with FBS; DOD VIC collaboration; bird flu/Mpox preclinical advances CEPI $4.5M award; Gates $3.0M grant; expectation of additional funded programs Strengthening funding pipeline and validation
Animal/avian health (H5)Positive rabbit studies; poultry/cattle vaccine interest Cross-protection across H5 strains; trials/diagnostics interest; continued partner sampling Momentum building; broader application scope
Regulatory/production considerationsISO facilities for research-grade products; scalable lower-COGS claims Emphasis on QC/specs for HSA; GRAS/EU regulatory specifics for dairy enzymes Deeper operational detail; execution risk managed
Macro/tariff/policyNot centralManagement sees cost-efficiency trend favoring C1; potential shifts in vaccine platform adoption Supportive backdrop for cost-disruption platforms
R&D execution (C1 platform)Broader antigen/mAb expression (HPV, RSV, HIV); 4.5 g/L Mpox antigen Focus on speed/yield/cost advantages; pathway to clinical adoption via partners Validation and partner-led acceleration

Management Commentary

  • “Our strategic focus on developing products in profitable non-pharmaceutical market segments has resulted in key milestones, including $1.9 million in revenue from our cell culture media and non-animal dairy segments.” – CEO .
  • “We are grateful for CEPI’s funding… advancing Dyadic’s C1 platform for faster, more affordable vaccines and treatments.” – CEO on CEPI .
  • “We’re launching our first commercial products… preparing to launch our first commercial product in recombinant albumin… and DNase1… a major milestone in Dyadic’s evolution.” – CEO closing .

Q&A Highlights

  • Funding and grants: Analysts probed grant landscape; management cited ongoing CEPI/Gates programs and multiple new applications embedding C1, with Dyadic expected to receive up to $2.4M from CEPI’s $4.5M award .
  • HSA commercialization path: COO emphasized validation, QC, and scale-up with Proliant, targeting Q2 2025 launch, highlighting rigorous product qualification before market entry .
  • Dairy enzymes pathway: COO detailed GRAS/EU requirements and scale-up for late-2025 commercialization; productivity milestone already achieved .
  • Productivity/pricing: COO noted strong productivity enabling margins across research-grade and cell culture media components (albumin, transferrin, growth factors), with high market pricing per gram .
  • Strategic positioning: CEO underscored cost-efficiency imperative and C1/Dapibus platforms’ role amid macro shifts, reinforcing near-term revenue focus while accepting non-dilutive pharma grants .

Estimates Context

  • Q4 2024 revenue missed consensus materially ($0.82M vs $1.60M*), indicating slower-than-expected conversion of pipeline to revenue in the quarter. FY 2024 revenue also missed consensus ($3.50M vs $4.30M*), while FY EPS (-$0.20) modestly trailed consensus (-$0.18*), reflecting lower other income and interest expense impacts .
  • Implications: Street models may need to temper near-term revenue cadence while incorporating CEPI/Gates-funded program inflows and clearer HSA/DNase1 commercialization timelines for 2025.
    Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Commercialization is approaching: HSA expected Q2 2025 and DNase1 research-grade process validation underway; these can transition DYAI toward recurring revenue in high-value reagent/media markets .
  • Funding validates platform: CEPI ($4.5M with up to $2.4M to Dyadic) and Gates ($3.0M) strengthen non-dilutive runway and support 2025 activity; monitor timing of cash receipts and program milestones .
  • Q4/FY misses vs consensus highlight timing risk: results suggest a staggered ramp; recalibrate expectations for quarterly variability as commercialization and regulatory steps complete .
  • Balance sheet adequate for execution: Year-end cash and investments of $9.29M and secured notes provide liquidity to bridge product launches; watch note-related interest expense and any equity needs .
  • Focus on margin-rich niches: Albumin, transferrin, growth factors, and reagent enzymes carry premium pricing; C1/Dapibus productivity may drive attractive unit economics at scale .
  • Animal health optionality: H5 cross-protection data and partner interest create diversified applications (poultry/cattle diagnostics/vaccines), offering additional monetization pathways .
  • Trading lens: Near-term catalysts include HSA product launch updates, DNase1 initial shipments, and CEPI project progress; estimate revisions likely trend cautious near-term, improving as commercialization events materialize .

Values marked with * retrieved from S&P Global.