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Jun 30, 2021
Codexis Q2 2021 Earnings Report
Codexis had an extraordinarily strong second quarter, with record product revenue and product gross margin reached a new high.
Key Takeaways
Codexis reported a 70% increase in total revenue, driven by a 227% increase in product revenue. The company's product gross margin climbed to 71%. Due to the strong performance, Codexis raised its full-year revenue guidance.
Product revenues increased 227% to $14.7 million in Q2’21, primarily driven by the sale of enzymes used to manufacture branded pharmaceutical products.
Product gross margin climbed to 71% in Q2’21, driven by a shift in the sales mix to higher margin products.
Codexis had 22 customers who contributed over $100,000 in revenue, nine of which contributed over $1 million in revenue.
Takeda exercised the option to expand its strategic collaboration for the discovery of additional transgenes for a lysosomal storage disorder gene therapy program.
Forward Guidance
Codexis is raising its financial guidance issued on June 17, 2021.
Positive Outlook
- FY 2021 total revenues are expected to be in the range of $98 - $103 million; up from prior guidance of $89 to $93 million
- FY 2021 product revenues are expected to be in the range of $59 - $63 million; up from prior guidance of $45 to $48 million
- FY 2021 gross margin on product revenue is expected to be in the range of 65% - 68%; up from prior guidance of a range of 60% - 64%
- Codexis expects record annual sales for a single proprietary Codexis enzyme.
- Codexis anticipates the initiation of a first clinical trial of CDX-7108.
Challenges Ahead
- Codexis’ dependence on its licensees and collaborators
- Codexis’ dependence on a limited number of products and customers
- Potential adverse effects to Codexis’ business if its customers’ products are not received well in the markets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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