The following is a summary of the Alpha Teknova, Inc. (TKNO) Q4 2023 Earnings Call Transcript:
Financial Performance:
Alpha Teknova reported a flat Q4 revenue of $7.9 million compared to Q4 2022, and an 11% decrease in annual revenue to $36.7 million from 2022.
Gross profit for Q4 2023 dropped to $1.3 million from $2.1 million in Q4 2022, and yearly gross profit decreased to $10.3 million from $17.5 million in 2022. Gross margin percentage also saw a decrease from 26.7% in Q4 2022 to 17.0% in Q4 2023.
Net loss improved from a loss of $13.3 million in Q4 2022 to $10.7 million in Q4 2023. For the full year, net loss decreased from $47.5 million in 2022 to $36.8m in 2023.
The company achieved a reduction in operating expenses and capital expenditures, alongside increased savings from a reduction in headcount. It aims to achieve positive adjusted EBITDA and free cash flow by 2025.
2024 revenue is expected to remain relatively flat at $35-38 million.
Business Progress:
The company successfully expanded its customer base in the Clinical Solutions segment and delivered new initiatives in product innovation and efficiency, particularly in the Lab Essentials category.
Measures to increase production efficiency led to achieved savings of over $8 million annually, with adjusted EBITDA breakeven revenue dropping to $50-55 million.
The company plans to aggressively manage expenses while continuing to onboard new target customers, despite expecting modest revenue growth in 2024.
Alpha Teknova remains optimistic about long-term prospects due to a positive outlook for end markets and will continue its focus on aiding clients in introducing new therapies, diagnostics, and products to improve human health.
More details: Alpha Teknova IR
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