Codexis Reports 38% Revenue Growth in Q3, Net Loss Improvement, Amid Restructuring Efforts

Codexis, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable changes in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, total revenues reached $12.8 million, a 38% increase from $9.3 million in the same period of 2023. Product revenue surged by 107% to $11.2 million, up from $5.4 million. However, for the nine months ended September 30, 2024, total revenues decreased by 13% to $37.9 million, down from $43.6 million in 2023, primarily due to a decline in research and development revenue.

The company reported a net loss of $20.6 million for the third quarter of 2024, a significant improvement from a net loss of $34.9 million in the same quarter of 2023. For the nine-month period, the net loss was $54.9 million, down from $69.0 million in the prior year. This reduction in losses was attributed to higher product revenues and lower operating expenses, with total costs and operating expenses for Q3 2024 decreasing by 29% to $29.4 million.

Strategically, Codexis underwent a restructuring in 2023, which included discontinuing certain development programs in biotherapeutics and consolidating operations in Redwood City, California. The company has combined its previous Performance Enzymes and Novel Biotherapeutics segments into a single reportable segment as of October 1, 2023. Additionally, Codexis entered into a non-exclusive licensing agreement with Alphazyme LLC for multiple enzymes in its life science enzyme portfolio, which could provide future sales-based royalties.

Financially, as of September 30, 2024, Codexis had cash and cash equivalents of $37.5 million, down from $65.1 million at the end of 2023. The company also reported total assets of $148.2 million and total liabilities of $74.8 million. The increase in liabilities was primarily due to the Innovatus Loan Agreement, which provided $30 million in funding in February 2024, with an additional $10 million contingent on achieving revenue milestones.

Overall, while Codexis experienced growth in product revenue during the third quarter, the decline in total revenues for the nine-month period and the ongoing restructuring efforts reflect the company's strategic adjustments in a competitive market.