Olink Holding AB (publ) (“Olink”) (Nasdaq: OLK) today announced its
unaudited financial results for the second quarter ended
June 30, 2023.
Highlights
- Second quarter 2023 revenue totaled $29.4 million, representing
year over year growth of 7.0% on a reported basis and 7.2% on a
constant currency adjusted like-for-like basis
- Total Explore customer installations reached 74, with 11
installations during the second quarter
- Total Signature Q100 placements reached 132, with 15 placements
during the second quarter
- Explore revenue of $18.2 accounted for 62% of total second
quarter revenue, with Explore Kit revenue totaling $6.0 million, or
33% of total Explore revenues
- Second quarter kits revenue and analysis services revenue
represented 36% and 53% of total revenue, respectively
- Second quarter 2023 net loss was $(8.3) million, with adjusted
EBITDA of $(11.6) million; compared to second quarter 2022 net loss
of $(4.8) million and adjusted EBITDA of $(7.9) million
- Exited second quarter 2023 with a cash balance of
$151 million
- Announced the introduction of Explore HT, a transformational
solution for high-throughput proteomics delivering significant
improvements to throughput, scalability, cost and workflow
- Olink reiterates 2023 full year reported revenue guidance of
$192 million to $200 million, representing growth of approximately
37% to 43% on a reported basis, and growth of approximately 38% to
44% on a constant currency basis; and reiterates expectations to
return to profitability in 2023, as measured by adjusted
EBITDA
“Olink’s second quarter performance saw continued business
momentum despite a challenging operating environment,” said
Jon Heimer, CEO of Olink. “Our commitment to
innovation is exemplified by the launch of Explore HT, which
represents a major leap forward in our ability to serve high-plex
proteomics customers, and significantly improves upon every major
design feature of Explore 3072. With the launch of this highly
anticipated product, Olink has further cemented its position as the
market leader in proteomics, which drives continued confidence in
the outlook for the year.”
Second quarter financial
results“While the timing of some customer orders impacted
revenue late in the quarter, our results continued to support our
targets for the year,” said Oskar Hjelm, CFO of
Olink. "Through a disciplined strategy of focused
investment, prudent asset allocation, and strong execution, Olink
has laid a strong foundation for continued leadership and robust
growth in the quarters and years ahead.”
Total revenue for the second quarter of 2023 was $29.4 million,
as compared to $27.5 million for the second quarter of 2022,
growing 7% year over year and driven primarily by strength in our
kit business.
Second quarter 2023 kits revenue of $10.5 million represented
36% of our total revenue, compared to 26% for the second quarter of
2022; and grew 47% year over year, with both Explore Kits and
Target Kits contributing to growth.
Analysis services revenue for the second quarter of 2023 was
$15.5 million, as compared to $17.9 million for the second quarter
of 2022.
Other revenue was $3.4 million for the second quarter of 2023,
as compared to $2.5 million for the second quarter of 2022. Other
revenue growth was driven by Signature Q100 placements and other
hardware revenue.
By geography, revenue during the second quarter of 2023 was
$12.9 million in Americas, $11.9 million in EMEA (including
Sweden), and $4.7 million in China and RoW (including Japan).
Reported gross profit was $17.3 million in the second quarter of
2023, as compared to $17.1 million in the second quarter of 2022.
Adjusted gross profit was $18.2 million in the second quarter of
2023, as compared to $17.9 million in the second quarter of
2022.
Reported gross profit margin for kits was 79% for the second
quarter of 2023, as compared to 89% for the second quarter of 2022.
Adjusted gross profit margin for kits was 81% for the second
quarter of 2023, as compared to 91% for the second quarter of
2022.
Reported gross profit margin for analysis services was 52% as
compared to 54% in the second quarter of 2022. Adjusted gross
profit margin for analysis services was 56% for the second quarter
of 2023, as compared to 58% in the second quarter of 2022.
Reported and adjusted gross profit margin for Other was 27% for
the second quarter of 2023, as compared to 45% for the second
quarter of 2022.
Total operating expenses for the second quarter of 2023 were
$36.3 million, as compared to $31.7 million for the second quarter
of 2022. The increase was largely due to continued investment into
Olink's commercial organization, research and development team
expansion, and additional administrative costs.
Net loss was $(8.3) million for the second quarter of 2023 and
adjusted EBITDA was $(11.6) million, as compared to a net loss of
$(4.8) million and adjusted EBITDA of $(7.9) million for the second
quarter of 2022.
Net loss per share for the second quarter of 2023 was $(0.07)
based on a weighted average number of outstanding shares of
124,342,715 as compared to a net loss per share of $(0.04) in the
second quarter of 2022 based on a weighted average number of
outstanding shares of 119,101,120.
2023 guidanceOlink reiterates 2023 full year
reported revenue guidance of $192 million to $200 million,
representing growth of approximately 37% to 43% on a reported
basis, and growth of approximately 38% to 44% on a constant
currency basis.
The Company also expects revenues in 2023 will continue to
progress along a seasonal pattern that is weighted toward the
second half of the year, and fourth quarter specifically. In
addition, Olink believes with continued growth and scale up, it
will return to profitability in 2023, as measured by adjusted
EBITDA.
Webcast and conference call detailsCompany
management will host a conference call to discuss financial results
at 8:00 am ET. Investors interested in listening to the conference
call are required to register online here. A live webcast of the
conference call will be available in the “Events” section of the
Company's website at
https://investors.olink.com/news-events/events. The webcast will be
archived and available for replay for at least 90 days after the
event.
Statement regarding use of non IFRS financial
measuresWe present certain non-IFRS financial measures
because they are used by our management to evaluate our operating
performance and formulate business plans. We believe that the use
of these non-IFRS measures facilitates investors’ assessment of our
operating performance. We caution readers that amounts presented in
accordance with our definitions of adjusted EBITDA, adjusted gross
profit, adjusted gross profit margin, adjusted gross profit margin
by segment, and constant currency revenue growth, may not be the
same as similar measures used by other companies. Not all companies
and Wall Street analysts calculate the non-IFRS measures we use in
the same manner. We compensate for these limitations by reconciling
each of these non-IFRS measures to the nearest IFRS performance
measure, which should be considered when evaluating our
performance. We encourage you to review our financial information
in its entirety and not rely on a single financial measure.
We are not able to forecast constant currency revenue on a
forward-looking basis without unreasonable efforts due to the high
variability and difficulty in predicting foreign currency exchange
rates and, as a result, are unable to provide a reconciliation to
forecasted constant currency revenue.
Investor contactJan Medina, CFAVP Investor
Relations & Capital MarketsMobile: +1 617 802
4157jan.medina@olink.com
Media contactMichael B. GonzalesVP Global
MarketingMobile: +1 415 308 6467michael.gonzales@olink.com
Forward-looking statementsThis press release
contains express or implied “forward-looking statements” as defined
under the Private Securities Litigation Reform Act of 1995 that are
based on management’s beliefs and assumptions and on information
currently available to management. All statements contained in this
release other than statements of historical fact are
forward-looking statements, including statements regarding our 2023
revenue outlook, our Explore externalizations, our ability to
develop, commercialize and achieve market acceptance of our current
and planned products and services, our research and development
efforts, and other matters regarding our business strategies, use
of capital, results of operations and financial position, and plans
and objectives for future operations. In some cases, you can
identify forward-looking statements by the words “may,” “might,”
“will,” “could,” “would,” “should,” “expect,” “intend,” “seek,”
“plan,” “outlook,” “objective,” “anticipate,” “believe,”
“estimate,” “predict,” “project,” “potential,” “continue,”
“currently,”“ongoing” or the negative of these terms or other
comparable terminology, although not all forward-looking statements
contain these words. These statements involve risks, uncertainties
and other factors that may cause actual results, levels of
activity, performance, or achievements to be materially different
from the information expressed or implied by these forward-looking
statements. These risks, uncertainties and other factors are
described under the caption "Risk Factors" in our Form 20-F for the
fiscal year ended December 31, 2022 (Commission file number
001-40277) and elsewhere in the documents we file with the
Securities and Exchange Commission from time to time. We caution
you that forward-looking statements are based on a combination of
facts and factors currently known by us and our projections for the
future, about which we cannot be certain. As a result, the
forward-looking statements may not prove to be accurate. The
forward-looking statements in this press release represent our
views as of the date hereof. We undertake no obligation to update
any forward-looking statements for any reason, except as required
by law.
About OlinkOlink Holding AB (Nasdaq: OLK)
is a company dedicated to accelerating proteomics together with the
scientific community, across multiple disease areas to enable new
discoveries and improve the lives of patients. Olink provides a
platform of products and services which are deployed across major
biopharmaceutical companies and leading clinical and academic
institutions to deepen the understanding of real-time human biology
and drive 21st century healthcare through actionable and impactful
science. The Company was founded in 2016 and is well established
across Europe, North America, and Asia. Olink is headquartered in
Uppsala, Sweden.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
OTHER COMPREHENSIVE INCOME (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended June 30 |
|
Six months ended June 30 |
|
|
Amounts in thousands of U.S. Dollars unless otherwise
stated |
Note |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
Revenue |
4 |
29,436 |
|
27,514 |
|
56,893 |
|
50,191 |
|
| Cost of
goods sold |
|
(12,145 |
) |
(10,444 |
) |
(21,988 |
) |
(19,804 |
) |
|
Gross profit |
|
17,292 |
|
17,070 |
|
34,905 |
|
30,387 |
|
|
Selling expenses |
|
(12,608 |
) |
(10,588 |
) |
(24,602 |
) |
(20,053 |
) |
| Administrative expenses |
|
(15,790 |
) |
(13,994 |
) |
(32,171 |
) |
(28,393 |
) |
| Research and development
expenses |
|
(8,055 |
) |
(7,333 |
) |
(14,441 |
) |
(13,318 |
) |
| Other
operating income |
|
180 |
|
239 |
|
9 |
|
567 |
|
|
Operating loss |
|
(18,981 |
) |
(14,606 |
) |
(36,300 |
) |
(30,810 |
) |
| Interest income |
|
528 |
|
10 |
|
606 |
|
11 |
|
| Interest expense |
|
(116 |
) |
(135 |
) |
(236 |
) |
(266 |
) |
| Foreign exchange, net |
|
7,585 |
|
8,714 |
|
7,421 |
|
10,479 |
|
| Other
finance income |
|
561 |
|
— |
|
578 |
|
— |
|
|
Loss before tax |
|
(10,423 |
) |
(6,017 |
) |
(27,932 |
) |
(20,586 |
) |
| Income
tax benefit |
5 |
2,149 |
|
1,195 |
|
5,701 |
|
3,594 |
|
|
Net loss for the period (Attributable to shareholders of
the Parent) |
|
(8,274 |
) |
(4,822 |
) |
(22,231 |
) |
(16,992 |
) |
|
Other comprehensive loss: |
|
|
|
|
|
| Items that may be
reclassified to profit or loss: |
|
|
|
|
|
| Exchange differences from
translation of foreign operations |
|
(21,939 |
) |
(41,097 |
) |
(18,839 |
) |
(52,389 |
) |
| Other comprehensive loss for
the period, net of tax |
|
(21,939 |
) |
(41,097 |
) |
(18,839 |
) |
(52,389 |
) |
| Total comprehensive loss for
the period, net of tax |
|
(30,213 |
) |
(45,919 |
) |
(41,070 |
) |
(69,381 |
) |
|
Total comprehensive loss for the period (Attributable to
shareholders of the Parent) |
|
(30,213 |
) |
(45,919 |
) |
(41,070 |
) |
(69,381 |
) |
|
Basic and diluted loss per share |
9 |
(0.07 |
) |
(0.04 |
) |
(0.18 |
) |
(0.14 |
) |
|
|
|
|
|
|
|
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
|
Amounts in thousands of U.S. Dollars |
Note |
June 30, 2023 |
|
December 31, 2022 |
|
|
ASSETS |
|
|
|
| Non-current
assets |
|
|
|
| Intangible assets |
|
243,784 |
|
257,480 |
|
| Property, plant and
equipment |
|
18,013 |
|
15,056 |
|
| Right-of-use asset |
|
8,425 |
|
9,891 |
|
| Deferred tax assets |
5 |
16,335 |
|
10,846 |
|
| Other
long-term receivables |
|
407 |
|
571 |
|
|
Total non-current assets |
|
286,964 |
|
293,844 |
|
|
Current assets |
|
|
|
| Inventories |
|
51,575 |
|
44,246 |
|
| Trade receivables |
|
30,973 |
|
52,743 |
|
| Other receivables |
|
2,303 |
|
2,562 |
|
| Prepaid expenses and accrued
income |
|
7,467 |
|
7,786 |
|
| Cash at
bank and in hand |
|
151,217 |
|
75,109 |
|
|
Total current assets |
|
243,535 |
|
182,446 |
|
|
TOTAL ASSETS |
|
530,499 |
|
476,290 |
|
|
EQUITY |
|
|
|
| Share capital |
6 |
32,221 |
|
30,988 |
|
| Other contributed capital |
6 |
613,783 |
|
514,133 |
|
| Reserves/(Deficit) |
|
(77,426 |
) |
(58,588 |
) |
|
Accumulated Deficit |
|
(98,079 |
) |
(75,848 |
) |
|
Total equity attributable to shareholders of the
Parent |
|
470,498 |
|
410,685 |
|
|
LIABILITIES |
|
|
|
| Non-current
liabilities |
|
|
|
| Interest-bearing loans and
borrowings |
7 |
6,720 |
|
7,322 |
|
|
Deferred tax liabilities |
5 |
20,433 |
|
22,196 |
|
|
Total non-current liabilities |
|
27,153 |
|
29,518 |
|
|
Current liabilities |
|
|
|
| Interest-bearing loans and
borrowings |
7 |
1,511 |
|
2,113 |
|
| Accounts payable |
|
7,426 |
|
6,885 |
|
| Current tax liabilities |
|
698 |
|
1,389 |
|
| Other
current liabilities |
10 |
23,213 |
|
25,700 |
|
|
Total current liabilities |
|
32,847 |
|
36,086 |
|
|
Total liabilities |
|
60,000 |
|
65,605 |
|
|
TOTAL EQUITY AND LIABILITIES |
|
530,499 |
|
476,290 |
|
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
|
|
|
Six months ended June 30 |
|
|
Amounts in thousands of U.S. Dollars |
Note |
2023 |
|
2022 |
|
| Operating
activities |
|
|
|
| Loss before tax |
|
(27,932 |
) |
(20,586 |
) |
| Adjustments reconciling loss
before tax to operating cash flows: |
|
|
|
|
Depreciation and amortization |
|
8,760 |
|
8,794 |
|
|
Net finance income |
|
(8,368 |
) |
(10,224 |
) |
|
Loss on sale of assets |
|
35 |
|
489 |
|
|
Share-based compensation expense |
6 |
5,017 |
|
4,172 |
|
|
Other |
|
26 |
|
(49 |
) |
| Changes in working
capital: |
|
|
|
|
Increase in inventories |
|
(9,280 |
) |
(11,007 |
) |
|
Decrease in accounts receivable |
|
21,485 |
|
14,509 |
|
|
Decrease in other current receivables |
|
259 |
|
2,320 |
|
|
Increase in trade payables |
|
876 |
|
3,413 |
|
|
Decrease in other current liabilities |
|
(2,101 |
) |
(190 |
) |
| Interest received |
|
606 |
|
11 |
|
| Interest paid |
|
(236 |
) |
(266 |
) |
| Other finance income |
|
578 |
|
— |
|
| Tax
paid |
|
(1,213 |
) |
(1,110 |
) |
|
Cash flow used in operating activities |
|
(11,490 |
) |
(9,724 |
) |
| Investing
activities |
|
|
|
| Purchase of intangible
assets |
|
(1,177 |
) |
(868 |
) |
| Purchase of property, plant
and equipment |
|
(5,581 |
) |
(3,356 |
) |
| Proceeds from sale of
property, plant and equipment |
|
5 |
|
— |
|
|
Increase in other non-current financial assets |
|
159 |
|
55 |
|
|
Cash flow used in investing activities |
|
(6,595 |
) |
(4,169 |
) |
| Financing
activities |
|
|
|
| Proceeds from issue of share
capital |
6 |
100,205 |
|
24 |
|
| Share issue costs |
6 |
(5,026 |
) |
— |
|
| Payment
of principal portion of lease liability |
|
(1,142 |
) |
(1,502 |
) |
|
Cash flow from/(used in) financing activities |
|
94,037 |
|
(1,478 |
) |
| Net cash flow during the
period |
|
75,952 |
|
(15,371 |
) |
| Cash at bank and in hand at
the beginning of the period |
|
75,109 |
|
118,096 |
|
| Net
foreign exchange difference |
|
157 |
|
(2,884 |
) |
|
Cash at bank and in hand at the end of the
period |
|
151,217 |
|
99,841 |
|
Reconciliations of adjusted gross profit to gross
profit, the most directly comparable IFRS measure, by segment
(unaudited):
|
|
Three months ended June 30 |
|
Six months ended June 30 |
|
|
Amounts in thousands of U.S. Dollars unless otherwise
stated |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
Kit |
|
|
|
|
| Revenue |
10,510 |
|
7,146 |
|
24,044 |
|
11,140 |
|
| Cost of
goods sold |
(2,222 |
) |
(821 |
) |
(4,732 |
) |
(1,424 |
) |
|
Gross profit |
8,288 |
|
6,325 |
|
19,312 |
|
9,716 |
|
| Gross profit
margin |
78.9 |
% |
88.5 |
% |
80.3 |
% |
87.2 |
% |
| Less: |
|
|
|
|
| Depreciation charges |
179 |
|
136 |
|
336 |
|
268 |
|
|
Share-based compensation expenses |
72 |
|
27 |
|
112 |
|
80 |
|
|
Adjusted Gross Profit |
8,539 |
|
6,488 |
|
19,760 |
|
10,064 |
|
| Adjusted Gross Profit
% |
81.2 |
% |
90.8 |
% |
82.2 |
% |
90.3 |
% |
| |
|
|
|
|
| Service |
|
|
|
|
| Revenue |
15,516 |
|
17,885 |
|
25,938 |
|
34,491 |
|
| Cost of
goods sold |
(7,427 |
) |
(8,262 |
) |
(12,010 |
) |
(15,925 |
) |
|
Gross profit |
8,089 |
|
9,623 |
|
13,928 |
|
18,566 |
|
| Gross profit
margin |
52.1 |
% |
53.8 |
% |
53.7 |
% |
53.8 |
% |
| Less: |
|
|
|
|
| Depreciation charges |
550 |
|
591 |
|
1,100 |
|
1,282 |
|
|
Share-based compensation expenses |
101 |
|
76 |
|
155 |
|
89 |
|
|
Adjusted Gross Profit |
8,740 |
|
10,290 |
|
15,183 |
|
19,937 |
|
| Adjusted Gross Profit
% |
56.3 |
% |
57.5 |
% |
58.5 |
% |
57.8 |
% |
| |
|
|
|
|
| Corporate /
Unallocated |
|
|
|
|
| Revenue |
3,411 |
|
2,483 |
|
6,911 |
|
4,560 |
|
| Cost of
goods sold |
(2,496 |
) |
(1,361 |
) |
(5,245 |
) |
(2,455 |
) |
|
Gross profit |
915 |
|
1,122 |
|
1,666 |
|
2,105 |
|
| Gross profit
margin |
26.8 |
% |
45.2 |
% |
24.1 |
% |
46.2 |
% |
| Less: |
|
|
|
|
| Depreciation charges |
— |
|
— |
|
— |
|
— |
|
|
Share-based compensation expenses |
— |
|
— |
|
— |
|
— |
|
|
Adjusted Gross Profit |
915 |
|
1,122 |
|
1,666 |
|
2,105 |
|
| Adjusted Gross Profit
% |
26.8 |
% |
45.2 |
% |
24.1 |
% |
46.2 |
% |
Reconciliation of constant currency revenue growth to
revenue growth as reported under IFRS, the most directly comparable
IFRS measure (unaudited):
We use the non-IFRS measure of constant currency growth, which
we define as our total revenue growth from one fiscal year to the
next on a constant currency exchange rate basis. We measure our
constant currency revenue growth by applying the current fiscal
period’s average exchange rate to the prior year fiscal period.
|
|
Three months ended June 30 |
|
Six months ended June 30 |
|
Amounts in thousands of U.S. Dollars, unless otherwise
stated |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Revenue |
29,436 |
|
27,514 |
|
56,893 |
|
50,191 |
| Revenue growth (IFRS) |
7.0 |
% |
56 |
% |
13 |
% |
|
| Foreign
exchange impact |
(0.2 |
%) |
(6 |
%) |
(2 |
%) |
|
|
Constant currency revenue growth |
7.2 |
% |
62 |
% |
15 |
% |
|
Reconciliation of consolidated adjusted gross profit to
gross profit, the most directly comparable IFRS measure
(unaudited):
|
|
Three months ended June 30 |
|
Six months ended June 30 |
|
|
Amounts in thousands of U.S. Dollars, unless otherwise
stated |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
Revenue |
29,436 |
|
27,514 |
|
56,893 |
|
50,191 |
|
| Cost of
goods sold |
(12,145 |
) |
(10,444 |
) |
(21,988 |
) |
(19,804 |
) |
|
Gross Profit |
17,292 |
|
17,070 |
|
34,905 |
|
30,387 |
|
| Gross Profit
% |
58.7 |
% |
62.0 |
% |
61.4 |
% |
60.5 |
% |
| Less: |
|
|
|
|
| Depreciation charges |
729 |
|
727 |
|
1,436 |
|
1,550 |
|
|
Share-based compensation expenses |
173 |
|
103 |
|
267 |
|
169 |
|
|
Adjusted Gross Profit |
18,193 |
|
17,900 |
|
36,608 |
|
32,106 |
|
| Adjusted Gross Profit
% |
61.8 |
% |
65.1 |
% |
64.3 |
% |
64.0 |
% |
Reconciliation of adjusted EBITDA to operating loss, the
most directly comparable IFRS measure (unaudited):
| |
|
|
|
|
|
|
Three months ended June 30 |
|
Six months ended June 30 |
|
|
Amounts in thousands of U.S. Dollars |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
Operating income/(loss) |
(18,981 |
) |
(14,606 |
) |
(36,300 |
) |
(30,810 |
) |
| Add: |
|
|
|
|
| Amortization |
2,763 |
|
2,847 |
|
5,497 |
|
5,822 |
|
|
Depreciation |
1,677 |
|
1,510 |
|
3,263 |
|
2,972 |
|
|
EBITDA |
(14,540 |
) |
(10,249 |
) |
(27,540 |
) |
(22,016 |
) |
| Management Adjustments |
5 |
|
321 |
|
1,505 |
|
765 |
|
|
Share-based compensation expenses |
2,913 |
|
1,992 |
|
5,017 |
|
4,190 |
|
|
Adjusted EBITDA |
(11,622 |
) |
(7,936 |
) |
(21,017 |
) |
(17,061 |
) |
Olink Holding AB (NASDAQ:OLK)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Olink Holding AB (NASDAQ:OLK)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
