In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alpha Teknova Inc (NASDAQ:TKNO) reported a 5% increase in total revenue for Q1 2025 compared to the same quarter in 2024.
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The company's gross margin improved to 30.7% in Q1 2025, up from 23.8% in Q1 2024, driven by higher revenue and lower overhead costs.
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Lab Essentials revenue increased by 12% due to an increased number of customers.
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The company has expanded its clinical customer accounts significantly, from 13 in 2020 to 48,000 in 2024.
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Alpha Teknova Inc (NASDAQ:TKNO) signed a collaboration agreement with Pluristics, enhancing its product portfolio and market presence in cell therapy.
Negative Points
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Revenue from clinical solutions products decreased by 32% in Q1 2025 compared to Q1 2024.
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The company experienced a net loss of $4.6 million in Q1 2025, although this was an improvement from the $8.1 million loss in Q1 2024.
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Revenue from sales of custom products to Life Science tools and diagnostics customers declined more than 30% compared to the same period last year.
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The company anticipates potential delays or reductions in purchases from small and mid-sized biotech customers due to reduced biotech funding.
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Alpha Teknova Inc (NASDAQ:TKNO) expects operating expenses to remain at least $8 million per quarter, which could impact profitability.
Q & A Highlights
Q: Can you provide insights on the demand from cell and gene therapy customers following the recent FDA leadership change and any improvements in the biotech funding landscape? A: Steven Gunstream, CEO: It's too early to see any changes from the FDA leadership shift. We anticipated a challenging market when setting our guidance, with early-stage customers conserving capital. However, we have a robust pipeline of customers who have raised funds or are part of larger institutions, and we expect this segment to grow by 15% as guided.
Q: Could you elaborate on the revenue per customer trend and the impact of new customer onboarding? A: Steven Gunstream, CEO: We have observed that as customers progress through clinical trials, their spending increases significantly. For instance, as they move from phase 1 to commercialization, we expect a 30-fold increase in spending. The current trend aligns with our market research, showing increased spending as customers advance through trial phases.
Q: Regarding the collaboration with Pluralistics, how does this product position you competitively, and what impact do you expect in 2025? A: Steven Gunstream, CEO: The collaboration enhances our cell therapy workflow and targets our existing customer base, particularly in stem cell research. While it's a unique product, we don't expect a material impact in 2025 due to the time required for market penetration. However, we anticipate growth in subsequent years.