• Total Revenue: $24.5 million for fiscal year 2024, a 19% increase over the previous year.
• Fourth Quarter Revenue: $6.5 million, marking another quarter of record revenue growth.
• Gross Profit Margin: 49%, down from 56% in the previous year.
• Operating Expenses: Decreased by 30% to $26 million, excluding asset impairment.
• R&D Expenses: Reduced to $4 million from $14.1 million in the previous year.
• Net Loss: $27.2 million for fiscal year 2024, compared to $26.6 million in the prior year.
• Cash Burn: Significant reduction in cash burn year-over-year.
• Unrestricted Cash: $3.5 million at the end of fiscal 2024.
• Use of Cash: $4.8 million in fiscal 2024, compared to $22.4 million in fiscal 2023.
• Convertible Debentures: Agreement to sell and issue $3 million with an 8% annual interest rate.

• Warning! GuruFocus has detected 6 Warning Signs with IPA.

Release Date: July 29, 2024

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

Positive Points

• ImmunoPrecise Antibodies Ltd (NASDAQ:IPA) reported a 19% increase in total revenue for fiscal year 2024, reaching $24.5 million, which is above the industry average.
• The company achieved its fifth consecutive quarter of record revenue, driven by the success of its end-to-end services and the commercial launch of LENSai.
• Significant reduction in cash burn year-over-year, reflecting effective cash flow management and strategic investments in growth.
• The launch of LENSai API and vector search software has been well-received, with increasing interest from pharmaceutical, healthcare, and technology companies.
• ImmunoPrecise Antibodies Ltd (NASDAQ:IPA) has entered into strategic collaborations, such as with PGxAI, to advance personalized medicine and improve patient outcomes.

Negative Points

• Despite strong revenue growth, the company's stock valuation does not reflect its intrinsic value, indicating a disconnect between market cap and achievements.
• Gross profit margin decreased from 56% to 49% due to additional costs associated with wet lab expansion and inflationary pressures.
• The commercialization of BioStrand's LENSai technology has been more challenging than anticipated, leading to a significant write-down.
• The company reported a net loss of $27.2 million for fiscal year 2024, including noncash impairment losses on goodwill and intangible assets.
• ImmunoPrecise Antibodies Ltd (NASDAQ:IPA) faces funding needs and has been conducting small equity raises to support its operations and growth initiatives.

Q & A Highlights

Q: Can you provide an update on the milestones and their impact on financials, particularly regarding the structured AI lab deal with licensee? A: Jennifer Bath, CEO: The early access rollout has begun to generate initial revenues, particularly with one partner using the LENSai API. This is a phased approach, and we expect more significant revenues as the program progresses. The marketing push for LENSai API has ramped up, and we anticipate subscription model revenues to start rolling in around Q2 of fiscal 2025.

Q: What challenges did you face with the BioStrand acquisition, and how do you plan to earn a return on that investment? A: Jennifer Bath, CEO: The integration of BioStrand into the antibody discovery space took longer than expected. We faced challenges in balancing investments between data management and the LENSai BioIntelligence suite. However, we now have over 80 applications built for drug discovery, validated in the lab, and are seeing increasing traction and revenue from BioStrand.

Q: How have conversations with potential partners changed since completing end-to-end programs using LENSai? A: Jennifer Bath, CEO: The successful use of LENSai in silico programs has positively impacted conversations with partners, proving the technology's legitimacy. This has transformed our ability to provide evidence and demonstrate capabilities, leading to more rapid buy-in, especially from technology companies.

Q: Regarding revenue growth guidance for fiscal 2025, what are the expectations, and how sustainable is the growth from expanded facilities in the Netherlands? A: Jennifer Bath, CEO: We expect sustainable growth driven by expanded capabilities in the Netherlands, particularly in antibody development and B-Cell technology. Our market intelligence indicates low-double-digit growth, but we are outperforming peers due to vendor consolidation and our reputation for excellence.

Q: Given the challenging market conditions and funding needs, are there considerations for strategic alternatives to realize value? A: Jennifer Bath, CEO: While open to maximizing shareholder value, we believe our current valuation does not reflect our opportunities. We are not interested in giving away the upside from our investments and remain focused on executing our strategy to unlock the true value of IPA.

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