Pyrogenesis Canada (PYR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached just over CAD 4 million (or $4 million), up 9% year-over-year, marking the third consecutive quarter of year-over-year growth and a record backlog of CAD 54.9 million as of November 6, 2024.

• Gross margin improved to 42%, a 13-point increase from the previous quarter and 12 points higher than the same period last year, reflecting operational efficiency and cost-cutting.

• Net loss for Q3 2024 was CAD 3.9 million, a 38% improvement from Q3 2023.

• Cost-cutting initiatives delivered over CAD 3 million in recurring annual savings, with SG&A expenses down significantly year-over-year.

• The company changed its name to PyroGenesis Inc. and relocated headquarters to a larger office in downtown Montreal.

Financial highlights

• Q3 2024 revenue was CAD 4 million, up from CAD 3.9 million in Q2 and CAD 3.5 million in Q1; year-over-year revenue increased by CAD 300,000.

• Gross profit for Q3 2024 was CAD 1.7 million (42% margin), up from CAD 1.1 million (30%) in Q3 2023.

• SG&A expenses decreased to CAD 5 million from CAD 7.6 million in Q3 2023, mainly due to lower credit loss, reduced share-based expenses, and cost-cutting.

• Comprehensive loss for the quarter was CAD 3.9 million, a favorable improvement of CAD 2.3 million year-over-year.

• Cash at September 30, 2024, was CAD 0.04 million, with a net working capital deficiency of CAD 10.4 million.

Outlook and guidance

• Management expects continued growth, with recurring cost savings and a robust backlog supporting future performance.

• No specific revenue or net income guidance for 2024 due to early-stage market adoption.

• The company is close to surpassing all of 2023's revenues within the first three quarters of 2024.

• Strategy focuses on leveraging plasma technology for heavy industry decarbonization, commodity security, and waste remediation.

• Company expects recurring revenue to increase as more plasma systems are sold and as energy transition trends accelerate.