Jun 30, 2021

Mesa Labs Q1 2022 Earnings Report

Mesa Labs reported an increase in revenues and net income, but a decrease in operating income.

Key Takeaways

Mesa Labs reported a 17% increase in revenues, a 13% decrease in operating income, and a 64% increase in net income for the first quarter of fiscal year 2022. Adjusted operating income also increased by 12%. The company is focused on long-term growth and navigating economic conditions.

Revenues increased by 17% compared to the same quarter last year.

Operating income decreased by 13%, but adjusted operating income increased by 12%.

Net income increased by 64% or $0.38 per diluted share.

Total company gross profit percentage contracted by 430 bps versus 1Q21 to 64%.

Total Revenue
$34.9M
Previous year: $29.9M
+16.6%
EPS
$0.38
Previous year: $0.3
+26.7%
Gross Profit
$22.3M
Previous year: $20M
+11.9%
Cash and Equivalents
$276M
Previous year: $231M
+19.4%
Free Cash Flow
$8.94M
Previous year: $2.04M
+337.2%
Total Assets
$612M
Previous year: $577M
+6.2%

Mesa Labs

Mesa Labs

Mesa Labs Revenue by Segment

Forward Guidance

Mesa Labs anticipates increased economic uncertainty due to the COVID Delta variant and inflation pressures but remains optimistic about the continued economic recovery and is focused on capturing opportunities in biopharmaceutical and healthcare verticals. They retain a strong cash position and balance sheet flexibility to invest in growth opportunities.

Positive Outlook

  • Optimistic regarding the continued economic recovery.
  • Focused on capturing the opportunities presented in our biopharmaceutical and other healthcare driven verticals.
  • Retain a strong cash position
  • Retain balance sheet flexibility
  • Positioned to invest in growth opportunities both organic and inorganic

Challenges Ahead

  • COVID Delta variant is colliding with increased vaccinations globally
  • Inflation pressures in the U.S.
  • Increased economic uncertainty
  • Gross profit percentage in Biopharmaceutical Development segment expected to range from the low to mid 50’s.
  • Instruments division continues to lag the broader economic recovery.

Revenue & Expenses

Visualization of income flow from segment revenue to net income