Akoya Biosciences (AKYA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $18.8M, down 25% year-over-year, mainly due to capital equipment purchase constraints in the life sciences tools market.

• Organizational restructuring and operational efficiencies improved margins and reduced operating expenses, with workforce reductions and facility consolidation.

• Net loss for Q3 2024 was $10.5M, an improvement from $12.9M in Q3 2023; loss from operations improved 28% to $8.3M.

• The company is actively evaluating strategic alternatives for sustainable growth and profitability.

• Installed instrument base grew 15% year-over-year to 1,299 units; publications citing company technology rose 47% to 1,578.

Financial highlights

• Q3 2024 revenue: $18.8M, down 25% year-over-year; YTD 2024 revenue: $60.3M, down 14%.

• Q3 2024 product revenue: $12.3M (down 32%); service and other revenue: $6.5M (down 9%).

• Gross margin improved to 62.3% from 60.6% year-over-year, driven by manufacturing efficiencies and higher consumables mix.

• Operating expenses dropped 25% year-over-year to $20.1M; YTD 2024 operating expenses: $74.5M.

• Cash, cash equivalents, and marketable securities totaled $39.3M as of September 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance lowered to $80–$85M, with a minor sequential increase expected in Q4.

• Gross margins expected to remain in the low 60s, with further improvement anticipated in 2025.

• Adjusted EBITDA expected in the low single digits exiting 2024; cash flow break-even targeted for mid-2025.

• Management expects continued operating losses in the foreseeable future and substantial doubt exists about the ability to continue as a going concern without additional funding.

• No significant capital expenditures expected for the remainder of 2024; major CapEx completed earlier in the year.