Mar 31, 2024

Mesa Labs Q4 2024 Earnings Report

Mesa Labs reported a loss due to a non-cash impairment charge, but revenues increased and non-GAAP adjusted operating income also increased.

Key Takeaways

Mesa Labs' Q4 2024 results showed a net loss primarily due to a significant non-cash impairment charge. However, revenues increased by 6% compared to Q4 2023, driven by the GKE acquisition. Non-GAAP adjusted operating income excluding unusual items increased by 26.3%.

Revenues increased by 6% compared to Q4 2023, driven by the GKE acquisition.

Non-GAAP core organic revenues decreased by 3.5%.

Operating loss was $(271,284), including a $274,533 non-cash impairment charge.

Non-GAAP adjusted operating income excluding unusual items increased by 26.3%.

Total Revenue
$58.9M
Previous year: $55.6M
+6.0%
EPS
$2.77
Previous year: $1.94
+42.8%
Gross Profit
$31.1M
Previous year: $33.2M
-6.4%
Cash and Equivalents
$28.2M
Previous year: $32.9M
-14.3%
Free Cash Flow
$12.3M
Previous year: $11.5M
+7.4%
Total Assets
$445M
Previous year: $662M
-32.8%

Mesa Labs

Mesa Labs

Forward Guidance

Mesa Labs is focused on deepening its presence in the Asia Pacific region and realizing synergies from the GKE acquisition. The company is also prepared to refine its business strategy for Clinical Genomics to adapt to changes in FDA regulations. Mesa will continue to leverage the Mesa Way to stay nimble in FY25.

Positive Outlook

  • Deepening presence in the Asia Pacific region.
  • Realizing synergies from the GKE acquisition.
  • Moderating headwinds in capital expenditures within the biopharmaceutical vertical.
  • Expanded sales and marketing by 80 bps as a percentage of revenues.
  • Expanded AOI excluding unusual items percentages.

Challenges Ahead

  • Ongoing macroeconomic uncertainty.
  • Regulatory uncertainty related to FDA regulations of lab developed tests.
  • Need to refine business strategy for Clinical Genomics.
  • Potential implications to Mesa or acquired customers after the effective date of the regulation.
  • Ongoing impact of the economic slowdown in China.