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Mesa Labs
🇺🇸 NASDAQ:MLAB
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Sep 30, 2023

Mesa Labs Q2 2024 Earnings Report

Mesa Labs' second quarter performance was lower than the previous year due to sluggish capital equipment orders and the customer loss of Sema4, but better than the first quarter for revenues and AOI excluding unusual items.

Key Takeaways

Mesa Labs reported a decrease in revenues and operating income compared to the same quarter last year. Total revenues were $53.165 million, a decrease of 9.5%. Operating loss was $(60) thousand, a decrease of 101.5%. The company is implementing cost control actions expected to generate annual savings of approximately $2 million starting in 3Q24.

Revenues decreased 9.5% year-over-year but increased 5.0% compared to the first quarter.

Non-GAAP core organic revenues decreased 10.1% year-over-year but increased 2.7% compared to the first quarter.

Operating income decreased 101.5% year-over-year.

Non-GAAP adjusted operating income excluding unusual items decreased 29.1% year-over-year but increased 17.2% compared to the first quarter.

Total Revenue
$53.2M
Previous year: $58.7M
-9.5%
EPS
$1.91
Previous year: $2.88
-33.7%
Gross Profit
$32.1M
Previous year: $36.4M
-11.8%
Cash and Equivalents
$35.6M
Previous year: $32.4M
+10.0%
Free Cash Flow
$9.14M
Previous year: $8.92M
+2.5%
Total Assets
$637M
Previous year: $656M
-2.9%

Mesa Labs

Mesa Labs

Mesa Labs Revenue by Segment

Forward Guidance

Mesa Labs expects GKE to add €19-€20 million of revenues over the first 12 months of complete ownership. Excluding the impact of purchase accounting and integration expenses, gross profit as a percentage of revenues is expected to be in line with the existing SDC business, and AOI as a percentage of revenues is expected to approach 37%-40%. GKE is also expected to deliver mid-single digit organic revenues growth over the next several years.

Positive Outlook

  • GKE acquisition expected to add €19-€20 million of revenues over the first 12 months.
  • Gross profit percentage for GKE expected to be in line with existing SDC business.
  • AOI percentage for GKE expected to approach 37%-40%.
  • GKE expected to deliver mid-single digit organic revenues growth over the next several years.
  • GKE synergies are expected to benefit the division’s life sciences and healthcare customers alike.

Challenges Ahead

  • Sluggish capital equipment orders in the biopharmaceutical vertical.
  • Previously announced customer loss of Sema4 in Clinical Genomics.
  • Unclear macroeconomic environment.
  • Slow-down in the biopharmaceutical vertical.
  • Potential macroeconomic headwinds in China affecting Clinical Genomics business.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Mesa Labs