TKNO - Earnings call transcript Q4 2023

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Operator

Hello, and thank you for standing by. Welcome to Teknova Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions] I would now like to hand the conference over to Jennifer Henry.

You may begin.

Jennifer Henry

Thank you, operator. Quarter Year Fourth Call. Earnings Teknova's to and XXXX Full Conference Welcome to Financial make me Stephen your and Executive Chief are today's questions.As Matt who Teknova's Teknova's With forward-looking call Chief a and including events that performance are company, Gunstream, of call, reminder, on statements business uncertainties may then and remarks prepared actual those differ. risks cause that we results and make during President expectations the and goals or Lowell, the Officer, subject regarding take this for financial to will Officer; the

believes the these or is company's current except GAAP financial provide forward-looking company the company when are other change company's by performance law.The factors, could update Additional events risk information strategies. to and result evaluating its views, effectiveness meaningful obligate release and and management business fully press more in various the its in itself filings the concerning or new measures of which as earlier they company's the can required non-GAAP today, information, a factors future commit financial reflect as that included with does addition in the statements, of the insight not the described issued company's comments SEC.Today's results, to

differ non-GAAP financial measures to be the call for not afternoon, included the website to substitute Teknova's this now measures named only as to this accessed posted The are in measures www.sec.gov/ Stephen. We website over of has in our to from release Teknova's of the that turn posted non-GAAP financial companies.Please supplement financial slide financial as advised should is today's I Relations at and used also with we non-GAAP of superior measures use measures or issued company accordance and will results presentation GAAP. considered webcast.And in which edgar.Non-GAAP measures other on by as prepared be remarks. a can on today's It therefore Reconciliations and similarly certain always a the financial to section will prepared be supplemental deck during this GAAP accompany call. Investor that non-GAAP press financial of a may to

Stephen Gunstream

thank with with our annual Good base and biopharma-related, quarter help and Solutions which operate and of and the custom for on by that growth RUO we the persistently say joining attracting call. us to early long-term longer, and high-quality position pleased onboarding novel adverse We developing return to and vaccines market to able that scale producer gene $X,XXX XXXX. discovery you, XX and of people reagents XX see XXXX cell earnings as and Thank our you, for GMP our now, a is a XXXX, accelerate customer year presented that they environment the to XXXX industry indicators since customers therapies, Jen. from market agents I'm sciences Clinical advance products vision therapy executed on of in have our early everyone, are investments.Most their a in vaccines and diagnostics. in despite afternoon, are customers fourth life live greater grown have lives. XX healthier of for we clinical revenue our introduction notably, manufacture the turnaround short clinical to full than Teknova customer segment. XXXX, diagnostics strategy XX customers critical times will with for we commercialization.In that novel of molecular therapy, company leading from

life shovels purchase XXXX.While from business our to III took us picks broader growth In customers diversified care clinical sciences fact, and nurture we therapy believe in Phase trials also the strategy, X industry. of gene cell our and to executing our we that for supports intend

we base Net only over our environments.Over X,XXX our on-time foundation not past as to industry-leading in challenging of year, serves but Promoter market improved Score a levels. the raised solid metrics additional Our customer and opportunities, revenue have creates also customers customer delivery

measures This than eliminating in low-value in we our revenue with demonstrated the our by our more rate, addition, XXXX category was which due stickiness modest of enacted in Lab than to retention early which are year-over-year. customer comparison. to again X average Clinical large, second last greater unusually increase in a quarter in highest business revenue production continue also remained spending XX% the Essentials about be growth customer in the XXXX making XXXX our We in efficiency us.While resulted we per customers for is no the expect excited $XX,XXX product Solutions to for difficult annual SKUs, with XXXX of or progress, that we part a with annually to shipment challenging customer years.In

to other difficult savings and expect of will in personnel cash of also year. reductions between reduce of preserve us XX% we quarter million decision of a million our affected way annualized $XX months. The an year, we customers research the out in which force, $XX We on mid-January that through continue early-stage in backdrop, that associates and carried beginning this believe expenses biotech $X second custom preserved and to approximately OpEx weeks this produce core million our reduction which breakeven expense in January the approximately made grade put will will instead a basis lower in reduction differentiating capital.Considering reagents our ability resulting in approximately cost to clinical adjusted deliver annually.We this to our stronger in position EBITDA and revenue

long-term production for Teknova success.We individuals novel RIF. layers to talented R&D removed critical our here of to infrastructure produce aggressively.I even with want will the the will optimistic and strategy, to the year through Many Matt and a introduction which to over prospects take greater those today our about management, to associates our indirectly remain expect these many moment directly building and custom we product automation.I In roles while were all of of associated roles returns. thank of call we foundation or hand investments to supporting by will Specifically, affected have continuing continue core financial we talk new target and near manage term, will to expenses advance XXXX long-term in now the our onboard financials. customers be to the positioning

Matthew Lowell

XXXX as of products in XXXX.On $XX.X XXXX targeted year and million Lab to an the fourth over XXXX both or the Overall, our afternoon, financial the past to year XXXX. full we million at only in everyone. revenue. from good given Stephen, the $XX.X Thanks, similar custom was fourth market challenges research and solid of Total at use revenue Results from was of fourth revenue quarter XX% a flat and quarter include million the markets X% for full for million products. Essentials year. of the million $X.X perspective prior the quarter XXXX.Lab and both a ongoing and $X.X quarter XXXX, were full year of Essentials for the delivered year revenue the anticipated RUO for in results for XXXX, catalog $X.X fourth are decrease from decrease

average primarily Lab from decrease Lab by revenue the was offset program full XXXX, was per that the by from Essentials a resulting Essentials' was a in an driven year SKU XX% the $XX.X XXXX.The revenue somewhat X% rationalization year, decrease customer customers, in decrease For $XX.X a for in increase million of in full X,XXX, to the in revenue X% number $XX,XXX. million

customer primarily XXXX, according Solutions GMP, Essentials was products. are in a in fourth manufacturing XXXX million from made quality a Clinical manufacture migrate practices, Solutions also XX to per $X,XXX more revenue customers spend Average which million lowered the customers by Clinical growth had Essentials increase ramp in good to products from XXXX revenue $X.X fourth that quarter as from up per million in standards from than and the $X.X diagnostic a in and in XX% purchase Lab of of was to increase XXXX, revenue added Lab time inputs a decreased $X.X and decrease reminder, to of in or in used rate.Clinical customers our As we as revenue or Clinical are annually. quarter components to XXXX.For Clinical We their $X.X large full XX the XXXX. XX% growing the $XXX,XXX.We year, in in customers XXXX, volumes. XXXX, expect Solutions reported Solutions therapeutic XX% million development XXXX customer customer Solutions the over

However, mix affected this by typically customers newer can less. order clinical metric the who of be

Clinical compared XXXX gross the primarily from reduced in in was by for the the of XXXX year year for quarter $X.X quarter profit lumpiness quarter revenue full by income fourth in XXXX.The XX.X% to to in there headcount. the $XX.X driven the XXXX quarter partially and million for margin for due is $X.X XXXX, orders quarter XXXX. that decrease compared year Lab of costs million reminder, XX.X% Gross fourth profit of category.To be the can percentage from which of a full fourth larger to full for in average overhead Solutions XXXX for XXXX, down down XX.X% the of the the year million compared was Gross statement. was Essentials, fourth fourth is increased XX.X% the in XXXX as which to were this quarter-to-quarter and $XX.X full million Just the offset

to the from a quarter quarter XXXX XXXX. the XXXX quarter $XX.X XXXX reduced on similar XXXX. primarily by were third offset for the million in fourth fixed profit lower by to that driven The manufacturing the for in quarter margin extent, was partially gross of of the gross compared overhead fourth revenue costs $XX.X absorption fourth and percentage associated by headcount.Operating sequential basis the were costs increased for of million was decrease a full year for However, and expenses lesser decrease of the

particular in asset XXXX of $X.X XXXX contingency negative were compared to and share with fourth compared decreases we professional primarily million Excluding in quarter initial full and the $XX.X for spending or a the facility.Free measure, plant for define in a used headcount related XXXX activities million of quarter $XX.X for million which fees.Operating million year trade or the impairment coupled the and and quarter EBITDA, $XX.X flow investment cash non-GAAP of The compared the was the long-lived full the decrease noncash in million impairment both quarter $XX.X cash to of the fourth fourth were to a and the million charges or sheet. new marks year of noncash expenses the the Capital decrease was the XXXX, $X.XX to XXXX. and in XXXX.Adjusted was decrease per for $X.X for related expenses to Free year million full operating decrease XXXX. for to million $XX.X million XXXX. was $X.X to fourth charge, of Capital the diluted million. per equipment, loss fourth per to in for $XX.X fourth accrual, reduced the for The in measure, diluted negative full was we primarily year to to for share $XX.X Adjusted sixth sequential driven used This year $X.X activities $XX.X and goodwill manufacturing spending, fees.Net operating flow, cash completed reduced the the quarter negative the purchases the for a the $X.X fourth our full full from particular, flow for the $X.XX XXXX charge net $XX.X for Net year net professional quarter share negative million or a was by expenditures million down negative by loss $XX.X property, XXXX expenditures.Turning the million $X.X capital compared necessary $X.X recorded to quarter million were a compared year XXXX. fourth the lower loss onetime full XXXX $X.XX impairment for million operating were million full compared $X.X fourth headcount to million due expenditures capital was in for utilize $XX.X nonrecurring $XX.X XXXX balance of to now charge diluted full XXXX balance quarter to straight quarter share negative million cash to the in XXXX million noncash million to compared sheet. as provided negative EBITDA the capital less compared quarter name or prior have fourth $X.XX XXXX. This and quarter of periods expenditures per for compared was was year million $XX.X diluted for compared loss of year a $X.X the $X.X XXXX. million XXXX.On non-GAAP in XXXX. quarter XXXX cash loss million for of

$XX.X XX, and of we December outlook. the cash debt.For equivalents million XXXX, As in and gross had $XX.X in cash million

Turning to XXXX our guidance outlook. and

guidance We revenue is million. implies are providing $XX of XXXX. total At forecast the this that to compared to revenue flat a $XX XXXX million midpoint, approximately

compared a back roles. with this in related $X.X We be book workforce, in not these million, expecting by environment approximately sales total, particular, XXXX. to with the decided ability our than strategic row. RIF to approximately the underlying the basis, savings generated in million $X reduction currently realized the third cash the will remains improvements $XX changes recent we associated XXXX builds January which fourth which quarter of financial savings in approximately reduction from other saving out by This straight took growth was the cost reducing million Lab onetime operating ongoing nonrecurring first which cost we company sixth expenses, quality customer year, Clinical the customers, the biopharma cash a XXXX, resulted savings $X and associated at funnel, operating outflow. below the this The annualized XX% revenue challenging, are in excluding severance cost in of the goals.The carried our and a early-stage most XXXX. with grow aimed will our of to of more Solutions of certain are expenses, quarter Essentials and revenue investments In saw the excluding segment.As do nonrecurring annualized management to and of constrained upon meet affect in during explained, our by XXXX.Similarly, for difference including revenue.While quarter quarter market That We free are in quarter order total and coming we the charges. spending posted of on benefits discussions with steps encouraged expected the in RIF reach Stephen reflects outflow measures an million lower of during recognized pare in marks fourth charges, and believe company

significantly full $XX.X that million. of the outflow fact, $XX for guidance company free below of is report initial our pleased In approximately cash XXXX to the year million was

line to including on to necessary.We able year-end As of $XX.X The million.Depending than our million additional flexibility. we a to primarily continuing XXXX our restrictions EBITDA to may XXXX, in expects improved with by access covenants, to turn for covenants, if positive new and costs access revenue are during lower and company amount adjusted announce revolver. XXXX, achieve minimum free outflow be to cash us a give new of revenue the of minimum year update operating to less free capital, $XX amendment cash reflects our on pleased flow that credit growth to our a we changes manage and top cash facility. should net covenants our The net minimum modest level

increasing cash from to minimum covenant million. Our $X $XX is marginally million

OpEx, at COGS marginal company's of a each revenue are already In growth made trigger we Lastly, with in market revenue growth now we Due with of investments able the to a the top call that percentage margin in strategy, exceeds when positioning be execute to turn revolver profitability our excited short, rate utilize expansion facility. the back high I'll $XX XX%. as believe from we additional that we previously.We at needed least estimate the that, through competitive attractive the is down soon new GMP there will million costs associated of significant million, believe drops to resumes. $XX line potential to have business XX-month future of trailing as of We fundamentals.With step-up and about production dollar Stephen. our our both fixed a our and including

Stephen Gunstream

against customers positive, and our Matt. products our are we novel Overall, human health.We of our strategic believe introduction to the full fourth executing help XXXX outlook pleased Thanks, the long-term therapies, and priorities. end progress take made were we now performance that improve with markets year our the for and quarter on accelerate committed we other diagnostics remains strategy your and to will questions. We

Operator

[Operator Instructions] Our comes line Massaro question from first Mark of the BTIG. with

Mark Massaro

X% provided at would however, by understand unfortunately, at could what you but expect you markets perhaps seeing it the million a hoping get guidance. your was to talked could X% the just kind think better spending potentially I Stephen, obviously, the you of improvements constrained after and about that you conditions, you of cut of might when you flattish year, clients.Can have because million? believe guidance, out perhaps end you just I earlier to below stage could -- and -- you're think it's a even helpful minus to repeat in provide how happen do sales above $XX potentially you I of happen get you some be I midpoint, to plus the type $XX what what in look

Stephen Gunstream

Great.

Can Mark. hear that, about me Sorry okay? you

Mark Massaro

much you hear can better I now. Yes,

Stephen Gunstream

Okay. All right.

So what see I it. bit the about and a let how I'll we're talk market -- just little hearing me

the out we XXXX that And examples just So are substantial first overall beginning did customers -- a had have we not XXXX would of the the all, reaching this, back right, I of in us. improvements of to are now couple to in of in that say see sector. some orders

book-to-bill a ratio them And actually planning over do order are X to and ordered of some have now. right have we Some year. this

X seem look given it and and one that the time funding we right, a to and the All a funding seeing obviously, we're and see coming see that X down. we've from last revenue as up that things about we the come X-quarter over how then positive in funding from that term it our very that out sector very realistic go is closely back at back. right, sales. biotech impact And now, then standpoint.And And it the things our you relates up encouraging can of segment goes funding. opportunity, to see reality you very actually lag just to in years, time some biotech be that's does is there's that know, you and regard.And spend, think the the funding So or had actually then the the that that that customers look while that sales takes to disperse of until at near their not so cycle from I our the said, typically

other think improvement, towards some of probably $XX capital, change potentially it conserve million, are the sector and now, half year, But think we over I additional couple years.On back some of if see us we we've some could fair I downs the or say this push the behaviors. obviously, we changes if to the in right it's determine side, that and an obviously a to customer the to environment of end that the in and the last of hard lower starting the see do side the funding guidance. there's be of the to on some and an but towards be that ups closer year, So could above seen get will --

Mark Massaro

on that seeing to them That's of providers, then in relative potentially helpful. demand front, front? you? the you sending change the seeing any in-house some competition themselves, changes can send-out to things on doing just versus any you're this and to perhaps the the taking speak And Okay. out Maybe are you other to dynamics companies very competitive

Stephen Gunstream

seen some have first part that So make of no, keep we the I answer think the question, of inclination to we in-house. products to not

So that changed. hasn't

the then particularly I couple pipelines, early think has been of just really the last stage. big of to challenge capital in and years in this access rationalization

those that have now XXXX, we XX we stages, those buying have XX I And most early are XXXX are so in customers. although Obviously, of clinical products. mentioned that we us.On the -- now say answer X there. is the haven't have Phase we into ongoing that which the seen would we III, competitive news I for mention standpoint, change no, is did are a great

other our been handful deliver taking it focus more products great when conversion customers these worked have to buying those that some some to we because some a lot primarily responses players much in than of spend that many some of finding matter of actually months.And space, fact opportunities, hard at and down convert timing us, the [ the really obviously custom to We've share from of the on of it's we seeing moving customers. so can customers successful have of we're in a and weeks they just side these there, critical versus ]. We the on the and and from be new already we're a comes money

Mark Massaro

Okay. I Great. And if sneak one could then in. more

a of we sectors touches that Your other business lot track follow. or

You XX and how from are therapy. cell out talked XX gene about biopharma of coming

of of you come diversified the where about think can soft hand, spending do biggest of the high you sources then have might us what some maybe think where business, from? are? come other on do growth demand think the of from? And the such given might you you So guidance, of end your some the sources more we give perspective If that a areas a

Stephen Gunstream

Yes.

right? of So a do well. all across lot of players if you we life the So serve about the tools as think sciences,

biopsy, whether as areas single a new know as quite segment I cell So sequencing are you doing well that sort know that right technologies facial there. liquid those is hot it's or now, out whole pretty well of

still, early-stage think, We And capital. pharma continue grow, from of right, raising those we'll as are rest benefits the of having to challenges the is companies. many those I that.From the see sector, some suppliers to

are that waiting for. are I people think some outcomes there

late. has as easier think I the been late of stage

that the into of so get go stages those these when down trickles things early you hopefully, And towards the pipeline. rest

Operator

Our next question comes from Johnson Stephens. the Jacob line with of

Jacob Johnson

but you individual -- for much III. that's don't say opportunity I an too something these on and therapy customers X there's back going get the obviously, probably can want customers, you be in as about maybe know Phase volumes all larger. cell that Stephen, to gene

kind know a you can for of maybe curious, III looks the other the just guidance Phase side a those Or it's giving seeing more kind maybe customers I'm we I from the cell Solutions, of size on what outlook. So gene a tough of benefit of frame therapy? it's of like? Clinical you're X customer a aren't but in comp, muted and up Why

Stephen Gunstream

well, Yes. when and know I'll of towards all, just so you half them don't exact give maybe order, this yet, the of -- year. ordered the I first all have not back about amount. of There's they'll conversations it's

a course, this needs. of their timing they depending there's, be not to it order then Jacob, of in for So aspects on QX delivered lot right? If may QX,

hesitant thousand expect And an in.I dollars, mid would hundreds certainly these have so yet things come basis that There's some to of for I'm commit thousands maybe annual that collecting on to the to of of hundreds range. trial. to these well the with of We these products. tend the do on processing really of reagents and orders depends very build. size for a clinical go all downstream for It

work yes, year, Solutions the the large QX right. part do Solutions about Clinical for you're absolutely from excited the referred it, from year.And was obviously of there's into to this the there do end and to more on but these we're order book guidance So both still about same last then Clinical get things our to we a in one a XXXX. customer perspective, We have that XXXX,

still into just successful some We're revenue will And that opportunity we actually in they them their a but And gone. product need doing not we are, hard. be as that up XXXX. customer is to so that clinical do XXXX. it's trials. And for really make for if not And significant in they're hope going them,

Jacob Johnson

the realizing maybe cost guess, of about OpEx? And And one, for year is can savings our those any we're that on as two, the thoughts thinking the is models? just that of all savings, all you follow-up, million around throughout $X Got Matt, I -- just it. then the -- timing

Matthew Lowell

is $X vast it I majority the say that summarize Yes. OpEx Jacob. million kind savings. would OpEx. that of we Thus, Sure, as of

looking goods headcount But course, was there through for expectations. continuing Of $X.X of sort we're look savings in margin -- the into factored reductions we cost specifically as achieving from and and of cost to million. that's and January savings well, that the sold the did disclose --

timing there are of annualized. that, that really and the point. of everything, quarter see a that gets in million you that things So full some additional expecting because to top on QX to And $X in at results we're of payouts of results, this the QX

Operator

next line of comes Steven from question TD Our Cowen. with the Mah

Poon Mah

Great.

a XXXX XXXX? margins, then at XX%? On QX us level ask Or gross sense Is how maybe out point in margin margins And low think and about should versus we inflect the the think gross the recovery? gross to when give maybe expect should a margins differently, to should maybe little of how up? we we about gross

Matthew Lowell

that -- The The very The were was Steve. was I first had gross outcome margin similar QX to we question, of I QX. similar. of type mean all, costs revenue think Good Yes. similar. similar. Yes. was

a margins our will of that fixed track high revenue of there the see significant the start I in new cost result half -- perspective improve. online margin gross pretty of a manufacturing result time, the as operation, over think to an being And in particular revenue. as fully revenue the there. I from me, excuse year.So last And we will the closely facility the unexpected second cost brought we not So the given is believe seeing fact, do believe do come that in back start I nature potential to

As we'll go increases margin in revenue, up. we see see that

XX% it was some because a do there I potential quarterly I is year.Going say At XX%. think yet had we're had helpful? line. hard XX%, year-on-year XXXX improving XX%. don't do to for year full I from overcoming will think itself that of think X be the volatility exactly it's margins see these I That's improves. headwinds, of the margin for quite where I but of dramatic expect XX% an the still But mixed will then the overall end, revenue wound I as some we bag, as improvement on at generally up improving do XXXX the land. that that gross it do overall quarter And we the and and into XXXX,

Poon Mah

math very sense newer helpful. a And Is that's green fairly from maybe for long significant is a maybe and similarly, side. shoots from on given it's R&D customer total right, potential in seeing how guide, the Yes, a it some I down. on that customers, step And recovery prior it, my appreciate appreciate conservative ramp guide. that. clinical doing the clinical orders you're I'm then typically there question to on spend? if then revenue but comments your us smaller the And on a give a I takes maybe on

Matthew Lowell

Yes.

-- I'll to that back one of we had last Stephen what the And fact facing year. of we're of pretty I'll think side clinical said moment significant challenges ago. that a in just order is So sort on a QX the solutions harking the I

up. when have the So you that do to that, it guidance normalize would because be make for may bad as suggest not as we

getting those business the, guess, the fairly the of doesn't We of XX for and number will are good increased that ramp think takes for of to so terms I months process is we conservative clinical quality that regulatory that customers we even it -- process, recovery the have specifically.There those substantially up. or -- because a being the -- lead on be long what in market time though a the side

on process, feel right and And feel customers the I evolves to reasonable now, like move like upside these to is that. fast that's the land. start. right how to a how we place we market that, we their depending again, So some But this could see through think place

Stephen Gunstream

in and we're into add primary takes driven we they months customers here. and just then ramp -- daily right? in, doing time to does on them.So you time which successful positive is the vendor, is the you it's And that we've that, revenue been think it's you actually and the in getting to a noticed think I board significant -- of are cycle the on sticky now that there, trials XX very very getting up what Steve, that's take to -- have it, basis are here, it's hard X Yes. it very the many how once us acquiring all XXXX. their that the take, I actually them another But sticky customers, more in onboard, look then by very you a very but while sales wanted and So ramp of with clinical trials a combination business them than right, to it. once on at -- also we've on focused of of just they're XX if the It when have

months. where we out XX -- So pretty standpoint next towards think sit customer we're feeling this over the about that will play good from a acquisition and

Poon Mah

Okay. can Great. If in. helpful. one one I super That's sneak just last

and sense us your you facility, On of can the GMP the a audit give backlog? schedule calendar

Stephen Gunstream

Yes.

see. we is We've and a revenue fortunately, don't So now, on a is to which backlog. It the running. basis great have got generating up facility daily right

I here. give would green the start then what the They to customers meet us and light, the internal team host from greenlight audit supplier team for the us. systems quality toured facility. to call continue out They qualifications, our there, come and it. the They We ordering

And for so we them can. up already backlog up of get we're up have because even a lined there as number is the in or still facility and QX finishing QX as filling those that schedule as expect fast well.So we we no that on

cross You in know order generate critical additional that's to a bridge revenue. to

Operator

Blair. with William comes Larew the question next from Our of Matt line

Madeline Mollman

I I on could Matt. couple might any that touch provide on mentioned if of I on was you This wondering Essentials a is Madeline you wondering color decline are was you things we But SKU be rationalizations, more customers. could the what Mollman think that. like there that. Lab for know in if driving

Stephen Gunstream

absolutely. Yes,

there So really driving this. are X things

First order see did is costly recognize to of to other shift make can has And very of as we revenue only is the customer that year, products to batches, little the were business generating handfuls sporadically, are long a can made migrate of we a course, look the are SKU number very one for the really beginning a so not if been not time. We that There at customers, rationalization. that our a is very you dramatically, going took the customers, there, last for we revenue.And of handful that and some that small made there exactly and decision of you though, from SKUs there. catalog the to and rationalize again. are aren't change that customers what of products. What then see, around intending

much more a efficient we're So organization.

like scale in revenue, contribution we about XX% go about Matt we to see forward. the talked that, margin as I think you'll see we'll as dropping start up that

not customers where we piece the part I of accounts, count lot management, way have to sure and a up truly is counting that multiple not same system way So address account did sure we one call, And that's that make companies at a that. double as cleaned organization have we things unique what would [indiscernible] it's set before, X the just hygiene may this.The of, and and we make we're many our we're causing now one the that other we up like single account. counting double that treat but every as

in see that growth as well, supplementary you'll the trends that. restated we've actually things you and and So slides history can see our like so

Madeline Mollman

there of tools we've were kind what lot that customers with heard continuing comes you their any your get internally Great. if added effort I wondering to it get whether into insight through think the that was like to companies I months a better working of customers. processes closely forecasting. bit be thinking were or when more customers, last an to a surveys, then through closer by theme And couple of customers, an this on little is to something their

Stephen Gunstream

it typically agreements Okay. in comes when of with Well, tools, number supply a we one. come those quality I we've to the -- larger But and forecasting, added of agreements number mean, form customers. have these

number the order past our sure our believe kind off numbers, perspective. that For top happy I to for Net really important the on times business we of so going customers service are consumable and do time, things industry-leading in Score how catalog sort to that that most we've to levels.And so levels.And there, the I have couple thing XXs up a board, of And of us said do it's but of comes from I a We now. couple orders. customer my and have a seen make years, we've but head, it customers back pretty dramatically. remember like relationship to tracking of business go customers been the with deliver is for can't a year, this the the is a for in $XX the items customer our a of are think to good play ability service across like from type $XXX,XXX actually very our these feel and with Promoter we feel of a the up rest repeat pure I the our

Operator

next Knight of Our comes KeyBanc. question from line Paul the with

Paul Knight

Steve, had approvals X from and QX ] here seeing what you Or QX? maybe Will here you we've the and are cell [ X therapy. up in in to benefit these? gene

Stephen Gunstream

and and products the the benefit help raise insofar that out these are other demonstrate we'll in that will help value money invest companies space. of going I there think

manufacturing ones of were X not we III year. We are The not Phase approved process. I entering not this part particular have were said, that that as --

us.And So record much general said, that I cell space. biotech I to going we're to gene from I a tied in think a from and market very think have funding a year perspective, the and we're as perspective, that helps

an I us see drives forward, And revenue on standpoint of that will our from anything in the lag sort you the period. X -- believe you'll so impact quarter see that

Paul Knight

increase biopharmas? clinical part you your -- are thoughts trials Are a more there? seeing And of We've that gene seen that? are therapy cell the What in really from larger seeing and latter 'XX. you the well-funded,

Stephen Gunstream

Yes.

right? the you half Paul, I back think, 'XX, of I mean think

Paul Knight

Yes.

Stephen Gunstream

right money I there's do at time. or smaller later having with in raising time now, data perspective, that players are in early this a clinical stages are the capital companies from larger still are midsized the think real -- biotech trial stage the in point harder the a than ones

still focused some now in at efforts our and that over I well pain think this year. that course hoping up Paul. the players our seeing and point. get improved I'm the we're stage, actually pipeline, the what's we that larger obviously we looking At kind of time, So same filling these of that's later as as

Paul Knight

that the say then, line? earlier? And Okay. what's on of Did size you credit your Matt,

Matthew Lowell

So outstanding. we $XX a million have in term loan

borrowing million. mentioned that It's up on that will to XX once revolver is a our base receivable. $X accounts I $XX we availability have trailing hits of That get We to revenue based million.

$X depends of but sort receivable levels what to So it's on up are, our million.

Operator

in I'm your the queue. Ladies questions you. showing you call. today's and for concludes conference Thank further no participation. That gentlemen, Thank

disconnect. now may You

Matthew Lowell

you. Thank

Stephen Gunstream

you. Thank

Alpha Teknova (TKNO) 11 Mar 242023 Q4 Earnings call transcript