Trinity Biotech (TRIB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 3% year-over-year to $15.2 million, driven by strong TrinScreen HIV demand and 60% growth in Point-of-Care products, despite lower sequential TrinScreen revenues due to ordering patterns.

• Transformation plan underway, focusing on cost reduction, manufacturing consolidation, and offshoring to drive profitability and efficiency, with initiatives nearing completion.

• Strategic acquisitions in prostate cancer and preeclampsia diagnostics, plus investment in rapid sepsis testing, expand the product pipeline and market reach.

• Regained compliance with NASDAQ listing requirements, removing a key stock overhang.

Financial highlights

• Q3 2024 revenue was $15.2 million, up 3.2% year-over-year; Point-of-Care revenue rose 60% to $4.3 million, led by TrinScreen HIV sales of $2.4 million; Clinical Laboratory revenue declined 9.6% to $10.8 million.

• Gross profit was $5.3 million (35% margin), consistent with prior year after adjusting for one-time items.

• Operating loss improved to $2.6 million from $4.5 million in Q3 2023; net loss was $4.8 million versus $6.7 million last year.

• Adjusted EBITDA/EBITDASO loss narrowed to $1.4 million from $3.5 million year-over-year.

• Cash balance at quarter-end was $2.8 million, with $3.6 million used in operations and $4.2 million from financing activities.

Outlook and guidance

• Reiterated 2024 TrinScreen HIV sales guidance of approximately $10 million, expecting over $3 million in Q4.

• Targeting $20 million annualized run-rate EBITDA/EBITDASO (excluding one-offs) on $75 million revenue by Q2 2025.

• PrePsia preeclampsia test expected to generate revenue in H2 2025; prostate cancer test targeted for 2026.

• TrinScreen HIV gross margins expected to improve in early 2025 as production is transferred offshore.