• Total Revenue (First Nine Months 2024): Approximately $6.9 million, up from $5.1 million in the same period of 2023.
• Total Revenue (Q3 2024): Approximately $1.8 million, down from $3.8 million in Q3 2023.
• Operating Loss (First Nine Months 2024): Approximately $17.6 million, down from $18.9 million in the same period of 2023.
• Operating Loss (Q3 2024): Approximately $7.5 million, up from $4.2 million in Q3 2023.
• Net Loss (First Nine Months 2024): Approximately $18 million, compared to $18.6 million in the same period of 2023.
• Net Loss (Q3 2024): Approximately $8.2 million, up from $3.9 million in Q3 2023.
• Cash and Cash Equivalents (As of September 30, 2024): Approximately $20 million.
• Projected Cash Usage (2024, Excluding Lavie Bio and Biomica): Approximately $8 million to $10 million, down from $12.5 million in 2023.
• General and Administrative Expenses (Q3 2024): Approximately $2.9 million, up from $1.5 million in Q3 2023.
• Research and Development Expenses (First Nine Months 2024): Approximately $13.2 million, down from $15.2 million in the same period of 2023.
• Financing Expenses Net (Q3 2024): $757,000, compared to financing income of $320,000 in Q3 2023.

• Warning! GuruFocus has detected 5 Warning Signs with EVGN.

Release Date: November 21, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Evogene Ltd (NASDAQ:EVGN) reported a revenue increase to approximately $6.9 million for the first nine months of 2024, up from $5.1 million in the same period of 2023.
• The company completed a successful fundraising round in August 2024, raising $5.5 million in gross proceeds.
• Evogene Ltd (NASDAQ:EVGN) announced a collaboration with Google Cloud to develop a generative AI foundation model for novel small molecule design, enhancing its ChemPass AI tech engine.
• Casterra, a subsidiary of Evogene Ltd (NASDAQ:EVGN), achieved significant milestones in seed production infrastructure in Kenya and Brazil, supporting future seed demands.
• Lavie Bio, another subsidiary, expanded its product Yalos to new crops and markets, with initial sales expected to begin in spring 2025 for soybeans.

Negative Points

• Evogene Ltd (NASDAQ:EVGN) experienced a decrease in Q3 2024 revenues to approximately $1.8 million from $3.8 million in Q3 2023, primarily due to a $2.5 million license fee received in the previous year.
• The company reported an operating loss of approximately $17.6 million for the first nine months of 2024, slightly down from $18.9 million in the same period of 2023.
• General and administrative expenses increased significantly to approximately $6.1 million for the first nine months of 2024, up from $4.8 million in the same period of the previous year.
• Evogene Ltd (NASDAQ:EVGN) faced delays in seed deliveries due to extended rain seasons in Kenya, impacting Casterra's operations.
• The company reported a net loss of approximately $18 million for the first nine months of 2024, compared to $18.6 million in the same period of 2023, with increased financial expenses related to warrants issued in August 2024.

Q & A Highlights

Q: On the second quarter call, you said you expected a material update on a follow-on order for 2025 deliveries at Casterra by today's call. This did not happen. Why did this not materialize? A: Ofer Haviv, President and CEO: We were expecting to receive orders from our partners, but internal discussions based on performance in their fields are still ongoing. There is no specific complication, and we expect a decision soon.

Q: Have Casterra's continued delayed deliveries of the initial order placed in mid-2023 compromised its ability to secure a follow-on order? A: Ofer Haviv, President and CEO: We have resolved production issues in Africa, and our partners are satisfied. Despite some delays due to extended rains in Kenya, we are now in a good position for future seed supplies.

Q: Is Evogene contributing any cash to the collaborations announced with Google and Ben-Gurion University? If so, how much? A: Ofer Haviv, President and CEO: For the Ben-Gurion University collaboration, expenses are covered through a grant. For the Google collaboration, each side covers its own expenses, and it is part of our ongoing product development process.

Q: How much cash is at the parent company level as of September 30, 2024, and what is the remaining cash usage for the balance of 2024? Why do you carve out Biomica and Lavie Bio in saying what your cash usage will be? A: Yaron Eldad, CFO: Evogene and its subsidiaries had $8 million in cash as of September 30, with additional funds expected from seed deliveries. We have enough cash for the year and more. Biomica and Lavie Bio funds are used to pay Evogene for technology and services.

Q: Where do you think the sales level for Yalos can be in two years? What is your base case target? A: Amit Noam, CEO of Lavie Bio: We are optimistic due to positive feedback from farmers and the potential of Yalos on soybean, a prime crop for bio-stimulants. We anticipate significant sales in two years, becoming material in Evogene's revenues.

Q: How has the early feedback been on the Yalos launch? How should we think about peak annual revenues for Yalos? A: Amit Noam, CEO of Lavie Bio: Feedback has been good, especially for soybean, which is more relevant for bio-stimulants. We expect significant sales in the next two years, reaching significant double-digit millions of dollars.

Q: How should we think about Casterra revenues in 2025 relative to 2024? A: Ofer Haviv, President and CEO: We expect 2025 to be better than 2024, with resolved production capacity issues in Kenya and strong performance in Brazil. We are in a strong competitive position as the only seed producer of castor in Africa.

Q: Could you provide insight into the current level of insider ownership in the company and how management is aligned with shareholders' interests? A: Ofer Haviv, President and CEO: A significant portion of management compensation is based on equity, aligning interests with shareholders. We focus on generating value for shareholders as we are also invested in the company.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.