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Dec 31, 2021

Mesa Labs Q3 2022 Earnings Report

Mesa Labs' financial performance saw revenue increase by 60%, but operating income decreased significantly due to unusual items. Net loss was also reported.

Key Takeaways

Mesa Labs reported a 60% increase in revenue for Q3 2022, driven by organic growth and acquisitions. However, the company experienced a decrease in operating income and reported a net loss, impacted by unusual items related to acquisitions and other adjustments.

Revenues increased by 60% compared to the same quarter last year, reaching $54,696 thousand.

Operating loss was $(2,512) thousand, a significant decrease compared to the prior year's operating income of $22 thousand.

Net loss was $(2,060) thousand, or $(0.39) per diluted share.

Organic revenue growth was 12% for the quarter.

Total Revenue
$54.7M
Previous year: $34.2M
+60.1%
EPS
$1.36
Previous year: $1.46
-6.8%
Gross Profit
$28.6M
Previous year: $20.7M
+38.6%
Cash and Equivalents
$51.7M
Previous year: $254M
-79.6%
Free Cash Flow
$13.8M
Previous year: $10.7M
+29.4%
Total Assets
$722M
Previous year: $622M
+16.1%

Mesa Labs

Mesa Labs

Mesa Labs Revenue by Segment

Forward Guidance

Mesa Labs completed the acquisition of Agena Bioscience and anticipates continued organic revenue and profitability growth, despite ongoing pandemic-related headwinds, with the Mesa Way operating model.

Positive Outlook

  • Double-digit organic revenues growth yielding 12% for the quarter.
  • Completed the acquisition of Agena Bioscience.
  • The Mesa Way operating model continues to build increasing resilience into our businesses.
  • Excited about Agena’s growth prospects and the strategic options it brings to our future.
  • The quality of our business portfolio improved during the quarter with the acquisition of Agena Bioscience.

Challenges Ahead

  • Ongoing pandemic related headwinds including obstacles to direct customer engagement, supply chain reliability, and personnel availability.
  • Calibration Solutions continues to struggle with revenues contracting 6% in the quarter as compared to the prior year.
  • Global supply chain complications and pandemic related labor shortages.
  • Gross profit percentage shrank by 310 bps versus prior year in the quarter from lower volumes and higher labor costs.
  • Uncertainty to come.

Revenue & Expenses

Visualization of income flow from segment revenue to net income