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Sep 30, 2020
Codexis Q3 2020 Earnings Report
Codexis reported stronger than expected total revenues and expects higher sequential sales in the fourth quarter.
Key Takeaways
Codexis reported total revenues of $18.4 million for the third quarter of 2020. Product revenue exceeded expectations, with Merck, Allergan, and Urovant Sciences as leading contributors. The company expects full year product revenue to be above pre-COVID-19 guidance and close to 2019 levels.
Total revenues for Q3 2020 were $18.4 million.
Product revenue was $8.4 million, driven by Merck, Allergan and Urovant Sciences.
R&D revenue was $10.0 million, impacted by lower revenues under the Novartis CodeEvolver® licensing agreement and a prior-year milestone payment under the GSK CodeEvolver® licensing agreement.
Net loss for the third quarter of 2020 was $6.1 million, or $0.10 per share.
Codexis
Codexis
Forward Guidance
Codexis expects higher sequential sales in the fourth quarter of 2020 and anticipates full year product revenue to be above pre-COVID-19 guidance and close to 2019 levels. The company expects to deliver 2020 total revenues near or above last year.
Positive Outlook
- Expects higher sequential sales in the fourth quarter, showing growing momentum as we close 2020
- Expects full year product revenue to be above pre-COVID-19 guidance range and very close to what we delivered in 2019
- All of the growth verticals are reporting solid progress
- Expectation is to deliver 2020 total revenues near or above last year
- Positions us well for continued momentum into 2021
Challenges Ahead
- Continuing effect of the COVID-19 pandemic on the operations of Codexis, its suppliers and customers
- Dependence on its licensees and collaborators
- 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
- Possible impacts of the COVID-19 pandemic on Codexis’s operations and businesses and Codexis’ prospects for recovery from those impacts