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Telesis Bio Inc. (TBIO)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 2024 revenue fell sharply to $1.55M vs. $7.00M in Q2 2023, driven by lower product revenue during the transition to Gibson SOLA and the timing of Pfizer collaboration milestones; gross margin was -52% due to ~$1.8M restructuring charges, but would have been 64% absent those charges .
  • Operating expenses were $10.69M; excluding severance and impairment tied to restructuring, OpEx would have been ~$8.8M (a ~30% YoY reduction vs. $12.4M in Q2 2023), reflecting cost alignment to the commercial focus .
  • Net loss widened to $13.18M; EPS was -$7.62 (vs. -$5.10 in Q2 2023), with cash, restricted cash, cash equivalents and short-term investments of $10.31M and notes payable of $5.3M as of June 30, 2024 .
  • No forward guidance was issued; strategic updates include Eton divestiture (discontinued operations), continued Pfizer collaboration progress, and CEO transition to Eric Esser, creating near-term stock narrative catalysts around restructuring impacts vs. SOLA adoption trajectory .

What Went Well and What Went Wrong

What Went Well

  • Cost discipline: excluding second-quarter severance and impairment, Q2 OpEx would have been ~$8.8M, ~30% lower YoY, with management emphasizing substantial favorable impact on future quarters .
  • Platform focus: continued advancement of Gibson SOLA enabling on-premises synthesis of long DNA and mRNA, with positive reception at PEGS Boston and growing market interest; Pfizer collaboration based on SOLA continues to progress .
  • Management alignment: CEO transition completed (Eric Esser), with prior operational leadership cited; Q1 commentary underscored focus on Gibson SOLA and BioXp mRNA solutions gaining traction .

What Went Wrong

  • Top-line pressure: Q2 total revenue fell to $1.55M from $7.00M YoY due to a $1.8M product revenue reduction amid the commercial transition and a $3.5M decline in collaboration revenue tied to milestone timing and deferred revenue recognition .
  • Margin compression: Q2 gross margin was -52% vs. 71% a year ago, primarily from ~$1.8M one-time restructuring charges and less high-margin collaboration revenue; normalized gross margin would have been 64% .
  • Losses widened: net loss increased to $13.18M and EPS to -$7.62; company reiterated no forward-looking guidance, which may limit near-term visibility for investors .

Financial Results

Quarter-over-Quarter Key Metrics

MetricQ4 2023Q1 2024Q2 2024
Total Revenue ($USD Millions)$6.98 $3.44 $1.55
Gross Margin (%)68.1% 42% -52%
Operating Expenses - Reported ($USD Millions)$22.23 $9.97 $10.69
Operating Expenses - Adjusted where disclosed ($USD Millions)$10.8 (excl. goodwill impairment) N/A$8.8 (excl. severance/impairment)
Net Loss ($USD Millions)$17.69 $8.64 $12.59
EPS ($USD)-$0.61 -$5.52 -$7.62
Cash, Restricted Cash, Cash Equivalents & ST Investments ($USD Millions)$19.33 $15.70 $10.31

Year-over-Year Comparison (Q2 2024 vs. Q2 2023)

MetricQ2 2023Q2 2024
Total Revenue ($USD Millions)$7.00 $1.55
Gross Margin (%)71% -52%
Operating Expenses - Reported ($USD Millions)$12.41 $10.69
Net Loss ($USD Millions)$8.29 $12.59
EPS ($USD)-$5.10 -$7.62

Revenue Breakdown

Revenue Component ($USD Millions)Q2 2023Q1 2024Q2 2024
Product Sales$2.67 $1.26 $0.84
Service Revenue$0.07 $1.25 $0.00
Collaboration Revenue$3.46 $0.96 $0.00
Royalties & Other$0.81 $0.93 $0.71
Total Revenue$7.00 $3.44 $1.55

Operating Expense Composition (Reported)

OpEx Component ($USD Millions)Q2 2023Q1 2024Q2 2024
Research & Development$3.92 $2.93 $2.47
Sales & Marketing$3.19 $1.68 $1.70
General & Administrative$5.29 $5.37 $5.51
Impairment of Property & Equipment$0.00 $0.00 $1.02
Total Operating Expenses$12.41 $9.97 $10.69

Balance Sheet Snapshot

Metric ($USD Millions)Dec 31, 2023Mar 31, 2024Jun 30, 2024
Cash, Restricted Cash, Cash Equivalents & ST Investments$19.33 $15.70 $10.31
Working Capital$22.17 $16.98 $7.14
Total Assets$70.41 $63.33 $52.73
Total Liabilities$40.87 $41.68 $42.78
Redeemable Convertible Preferred Stock$29.30 $29.89 $30.48
Total Stockholders’ (Deficit) Equity$0.24 -$8.24 -$20.54

vs. Estimates

MetricQ2 2024 S&P Global ConsensusQ2 2024 Reported
Revenue ($USD Millions)N/A (S&P Global consensus unavailable)$1.55
EPS ($USD)N/A (S&P Global consensus unavailable)-$7.62
Note: S&P Global consensus data was unavailable for TBIO this quarter (mapping missing).

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company Guidance (overall)Q2 2024None (no guidance policy) No forward-looking guidance issued Maintained no guidance

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was found on the company’s IR site; Q2 2024 page lists the press release and Form 10-Q but no transcript link, limiting Q&A theme analysis .

TopicPrevious Mentions (Q4 2023 and Q1 2024)Current Period (Q2 2024)Trend
Gibson SOLA & mRNA initiativesEmphasis on BioXp mRNA kit adoption; cost cuts; insourcing oligos and instrument manufacturing to support margin; initial SOLA positioning Continued advancement of Gibson SOLA with positive PEGS reception; active pursuit under Pfizer collaboration Strengthening platform focus
Collaboration revenue (Pfizer)2023 collaboration revenue up YoY with milestone achievements Q2 decline due to milestone timing and reduced deferred revenue recognition from upfront payments Near-term headwind; timing-driven
Cost structure & restructuring2023 restructuring reduced OpEx; Q1 2024 OpEx down 31% YoY Q2 restructuring (severance/impairment) with ~$1.8M one-time charges; adjusted OpEx ~$8.8M Structural improvement despite one-time costs
Guidance/visibilityNo guidance issued in Q4 2023 and Q1 2024 No forward-looking guidance in Q2 2024 Unchanged: no guidance
Macro/product demand2023 commentary noted capital spending weakness affecting instrument mix Transition focus to SOLA contributing to product revenue decline Mix- and transition-related pressure

Management Commentary

  • “I am pleased with our performance as we execute against our strategy to focus on Gibson SOLA and BioXp mRNA solutions… believe it will transform high-throughput on-demand synthesis of high-fidelity DNA and mRNA” — Eric Esser, President & CEO (Q1 press release) .
  • “Gibson SOLA… enables on-premises automated overnight synthesis of high-fidelity long DNA and mRNA… growing interest in the market for adopting this platform” (Q2 press release highlights) .
  • Eton divestiture: now reflected as discontinued operations, simplifying reporting and focus .
  • Pfizer collaboration: continued activities under the strategic research collaboration and license agreement based on SOLA for potential mRNA vaccine and biopharma applications .
  • Restructuring: actions in Q2 to reduce cost base; one-time charges drove negative GM, but management expects substantial favorable impact on future quarters .

Q&A Highlights

  • Q2 2024 earnings call transcript unavailable on IR site; no Q&A themes or clarifications could be analyzed for this period .
  • Prior comments emphasize SOLA commercialization, mRNA workflow traction, and ongoing collaboration with Pfizer, but no new call-based guidance or clarifications are available for Q2 .

Estimates Context

  • S&P Global consensus for TBIO Q2 2024 was unavailable due to missing mapping; as a result, formal consensus comparisons cannot be provided this quarter [GetEstimates error; no values].
  • Reported results showed significant YoY revenue decline and negative gross margin driven by restructuring and collaboration timing, which suggests estimates may need to reset lower for near-term revenue/margins until SOLA adoption and milestone timing normalize .

Key Takeaways for Investors

  • Q2 print was weak (rev $1.55M; GM -52%) due to restructuring and collaboration timing, but normalized GM would have been 64%, indicating underlying unit economics remain viable when one-time costs are excluded .
  • Cost actions are material (adjusted OpEx ~$8.8M vs. $12.4M LY), positioning the company for leaner operations as SOLA adoption scales; future quarters should benefit from lower spend .
  • Strategic focus is clear: prioritize Gibson SOLA and BioXp mRNA, with Pfizer collaboration as a validating external signal; near-term commercial traction is the key proof point .
  • Visibility remains limited without guidance and with milestone-heavy collaboration revenue; expect quarterly volatility tied to timing of external programs and platform transition .
  • Liquidity narrowed (cash ~$10.31M at 6/30/24); monitoring cash burn vs. restructuring benefits and potential financing needs is prudent .
  • Equity remains in deficit (-$20.54M), reinforcing the importance of execution on SOLA commercialization and collaboration milestones for medium-term repair of the capital structure .
  • Near-term trading lens: lack of guidance and headline revenue/margin weakness may weigh on sentiment; medium-term thesis centers on SOLA adoption, mRNA workflow differentiation, and milestone conversion under collaborations .