Executive Summary

Q1 2024 revenue was $3.4M, down 46% YoY (vs. $6.3M in Q1 2023) and down sequentially vs. Q4 2023 ($7.0M), driven by completion of Pfizer deferred revenue amortization and softer instrument demand; gross margin compressed to 42% (vs. 56% YoY, 68.1% in Q4) .
Operating expenses fell 31% YoY to ~$10.0M (reported $9.97M), reflecting the Q4 2023 restructuring; net loss improved to $(8.6)M; EPS was $(5.52) (split-adjusted) vs. $(6.75) in Q1 2023 .
Strategic focus sharpened on Gibson SOLA and BioXp mRNA; management reiterated traction in mRNA workflows and continued progress under the Pfizer collaboration (SOLA-based) .
No forward-looking guidance provided; watch for Gibson SOLA commercialization milestones and mRNA adoption metrics as potential stock catalysts .

What Went Well and What Went Wrong

What Went Well

Material OpEx reduction: Operating expenses reduced ~31% YoY to ~$10.0M, reflecting benefits from the Q4 2023 restructuring program across R&D, S&M, and G&A .
Strategic clarity and product focus: “Execute against our strategy to focus on Gibson SOLA and BioXp mRNA solutions,” with SOLA “ready for commercial delivery” and mRNA offerings “gaining traction” (Eric Esser, CEO) .
Ongoing Pfizer collaboration progress: Program based on Gibson SOLA enzymatic DNA synthesis continues “to progress favorably,” supporting the mRNA discovery thesis .

What Went Wrong

Revenue contraction and mix headwinds: Sales fell to $3.4M as collaboration revenue stepped down post completion of deferred revenue amortization tied to the $8M Pfizer upfront; instrument demand also softened .
Margin compression: Gross margin fell to 42% (vs. 56% YoY and 68.1% in Q4 2023) due to reduced higher-margin collaboration revenue and fewer higher-margin BioXp 9600 systems vs. Q1 2023 .
Service revenue pressure: Service revenue declines linked to turnover in the commercial team at the Eton subsidiary weighed on top-line stability .

Financial Results

Headline metrics vs. prior periods and estimates

Metric	Q1 2023	Q4 2023	Q1 2024
Revenue ($M)	6.316	6.977	3.440
Gross Margin %	56%	68.1%	42%
Operating Expenses ($M)	14.482	10.8 (excl. goodwill impairment)	9.967
Net Loss ($M)	(11.119)	(17.687)	(8.637)
Diluted EPS ($)	(6.75) (split-adjusted)	(0.61)	(5.52) (split-adjusted)

Notes: Q4 2023 operating expense in table reflects the company’s “exclusive of goodwill impairment” figure for comparability .

Actual vs. Estimates (Q1 2024)

Metric	Actual	Consensus	Surprise
Revenue ($M)	3.440	N/A	N/A
Diluted EPS ($)	(5.52)	N/A	N/A

S&P Global consensus estimates for TBIO could not be retrieved; estimate comparisons are therefore not shown.

Revenue mix (segment detail)

Revenue ($M)	Q1 2023	Q3 2023	Q4 2023	Q1 2024
Product sales	3.001	2.435	1.585	1.264
Service revenue	1.674	1.466	1.438	1.251
Collaboration revenue	0.962	0.962	3.304	—
Royalties & other	0.679	0.701	0.650	0.925
Total Revenue	6.316	5.564	6.977	3.440

Selected balance sheet / cash KPIs

KPI	Dec 31, 2023	Mar 31, 2024
Cash, restricted cash, cash equivalents and ST investments ($M)	19.333	15.696
Working capital ($M)	22.167	16.983
Total assets ($M)	70.411	63.331
Total liabilities ($M)	40.873	41.682
Long-term notes payable ($M)	5.3	5.2
Total stockholders’ equity ($M)	0.238	(8.236)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance (revenue, margins, OpEx, etc.)	FY 2024	None	No forward-looking guidance provided	Maintained no guidance

Reference point: In Q3 2023, management estimated FY 2023 revenue between $28–$30M (historic context, not FY 2024), now superseded by reported FY 2023 results .

Earnings Call Themes & Trends

Note: No Q1 2024 earnings call transcript was available on the company’s site; Q1 2024 “Quarterly Results” page lists press release and 10-Q only . The themes below draw from company releases across periods.

Topic	Previous Mentions (Q3 2023, Q4 2023)	Current Period (Q1 2024)	Trend
Gibson SOLA focus	Advanced SOLA technology plan; in-house instrument mfg.; mRNA-focused high-growth strategy signaled	Strategic focus on Gibson SOLA; “ready for commercial delivery”	Increasing strategic emphasis
mRNA product traction	“7 Days to mRNA” campaign; De novo mRNA as initial primary product	BioXp mRNA adoption continues; 40% of Q1 instrument buyers indicated mRNA as primary workflow	Strengthening adoption narrative
Collaboration (Pfizer)	Ongoing SOLA-based collaboration mentioned	Collaboration “continues to progress favorably”	Steady progress
Margin drivers	FY23 GM >60% expected; oligo and instrument insourcing to aid GM	GM down to 42% on lower high-margin collaboration revenue and fewer BioXp 9600 units vs. Q1 2023	Near-term pressure from mix
Cost controls	Fifth consecutive quarter of OpEx reductions; restructuring programs	OpEx down ~31% YoY; Q4 restructuring benefits flowing through	Sustained discipline
Macro/capex	Capital spending weakness weighed on instruments	Continued instrument softness vs. Q1 2023	Persistent end-market headwind

Management Commentary

“I am pleased with our performance as we execute against our strategy to focus on Gibson SOLA and BioXp mRNA solutions... excited about the progress we’ve made with Gibson SOLA to ready it for commercial delivery...” — Eric Esser, President & CEO, Q1 2024 release .
“The strategic research collaboration and license agreement with Pfizer continues to progress favorably... for potential application by Pfizer in mRNA-based vaccines and other biopharma products.” — Q1 2024 release .
Prior context: “Record BioXp kit sales and expanding gross margin against the backdrop of significant cost cutting initiatives...” — Todd R. Nelson, Q4 2023 release (historic) .

Q&A Highlights

No Q1 2024 earnings call transcript was available on the Telesis Bio IR site; the Q1 “Quarterly Results” page lists the press release and Form 10‑Q but no call transcript or replay link. As a result, Q&A details and any on-call clarifications are unavailable for this period .

Estimates Context

S&P Global (Capital IQ) consensus data could not be retrieved for TBIO; accordingly, estimate comparisons for revenue and EPS are not shown. Future quarters should reassess when mapping is available.
Directionally, given the collaboration revenue step-down and instrument softness, Street models may need to recalibrate near-term margin trajectory (mix) and top-line cadence until SOLA commercialization and mRNA adoption inflect .

Key Takeaways for Investors

Mix headwinds dominated: the amortization completion of Pfizer upfront and softer instrument demand drove a 46% YoY revenue decline and 42% GM; near-term results are sensitive to collaboration revenue cadence and instrument mix .
Cost discipline is real: OpEx down ~31% YoY with restructuring benefits across R&D, S&M, and G&A; net loss narrowed YoY despite the revenue decline .
Strategic pivot underway: execution focus on Gibson SOLA (commercial readiness) and BioXp mRNA workflows; 40% of Q1 instrument purchasers signaled mRNA as primary workflow, validating the thesis .
Pfizer collaboration remains an anchor: continued favorable progress supports the SOLA platform’s relevance in mRNA-based applications (follow milestone cadence and related revenue visibility) .
Balance sheet watch: cash fell to $15.7M with negative equity; long-term notes payable at $5.2M—monitor cash burn, capital needs, and timing of gross margin recovery as mix normalizes .
No guidance: absent formal outlook, catalysts include SOLA commercial milestones, mRNA adoption updates, and potential collaboration expansions .
Trading setup: near-term sentiment hinges on evidence of SOLA commercialization and mRNA demand translating to revenue/margin reacceleration; margin mix (collab vs. product) is the key swing factor .

Telesis Bio Inc. (TBIO)·Q1 2024 Earnings Summary