Harvard Bioscience (HBIO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 19.7%–20% year-over-year to $23.1 million, reflecting global market headwinds, especially in China, Asia Pacific, and reduced capital spending by CRO and biopharma customers in Europe and the U.S.

• Gross margin remained strong at 57.2%, though slightly below last year, with a GAAP operating loss of $2.1 million and adjusted operating profit of $0.8 million (3.5% of revenue).

• Adjusted EBITDA was $1.3 million (5.5% margin), down from $3.9 million (13.6% margin) last year, mainly due to lower gross margin dollars.

• Net loss for Q2 2024 was $2.9 million, compared to a net loss of $1.0 million in Q2 2023.

• Cost reduction actions in Q2 are expected to yield $4 million in annualized savings.

Financial highlights

• Six-month 2024 revenue was $47.6 million, down 18.9% year-over-year; gross profit dropped 20.1% to $28.0 million.

• Cash flow from operations was $0.6 million for H1 2024, down from $5.4 million last year.

• Net debt as of June 30, 2024 was $32.1 million, nearly flat from $32.8 million at year-end 2023.

• Cash and cash equivalents were $4.0 million as of June 30, 2024.

• Basic and diluted loss per share was $0.07 for Q2 2024 and $0.18 for the six months ended June 30, 2024.

Outlook and guidance

• Full-year 2024 revenue outlook reduced to $97–$102 million, with sequential growth expected in the second half, heavily back-end loaded.

• Full-year gross margin expected at 59–60%, and adjusted EBITDA margin in the high single digits.

• Management expects available cash, cash from operations, and debt capacity to be sufficient for at least the next 12 months.