LanzaTech Q2 2024 Earnings Report
Key Takeaways
LanzaTech reported total revenue of $17.4 million for Q2 2024, exceeding expectations and representing a 35% year-over-year increase. The company reaffirmed its full-year 2024 outlook, projecting revenue between $90 million and $105 million, and announced a $40 million investment by Carbon Direct Capital.
Reported revenue of $17.4 million for second-quarter 2024, a 35% increase compared to $12.9 million in second-quarter 2023, driven by the Biorefining business.
Continued execution on Biorefining business, including early-stage equipment and engineering revenue related to a new project with NTPC Limited in India.
Achieved CarbonSmart milestone with first pure-play ethanol fuel sales, building on existing CarbonSmart business.
Increased ownership stake in LanzaJet to approximately 37% from approximately 23% during second-quarter 2024.
LanzaTech
LanzaTech
Forward Guidance
LanzaTech reaffirmed its full-year 2024 financial guidance, expecting revenue between $90 million and $105 million and an adjusted EBITDA loss between $(65) million and $(55) million.
Positive Outlook
- Total revenue of $90 million to $105 million for full-year 2024, which, at the midpoint, represents approximately 55% revenue growth over full-year 2023.
- Multiple projects are expected to progress to the FID stage of the development process during the second half of 2024, and are expected to begin generating equipment revenues, and in certain cases recover previously incurred costs, as these projects progress into construction.
- Revenue for the second half of 2024 is projected to be heavily weighted to the fourth quarter, with third-quarter revenue expected to be similar to second-quarter 2024.
- Management expects adjusted EBITDA loss of $(65) million to $(55) million for full-year 2024, which, at the midpoint represents improvement of approximately 25% over the prior year.
- Cost savings associated with the previously disclosed reorganization and work reprioritization initiatives continuing to materialize.
Challenges Ahead
- The probability of achieving full-year 2024 guidance could be negatively impacted should timing delays occur and advancement of projects be delayed to 2025.
- LanzaTech expects that the quarterly impact of unanticipated project timing shifts will diminish over time as the Company scales recurring revenue.
- Second-quarter 2024 net loss was $(27.8) million as compared to second-quarter 2023 net loss of $(26.8) million.
- As of June 30, 2024, LanzaTech had $75.8 million in total cash, restricted cash, and investments, compared to total cash of $92.3 million at the end of first-quarter 2024.
- Total cash burn in second-quarter 2024 was $16.5 million.