Loading...
01/11 16:18
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals significant financial challenges, including a decline in revenue and increased operating expenses. Despite some positive developments like increased ownership in LanzaJet and a $40 million investment, there are major concerns such as timing uncertainties, cash flow risks, and regulatory adoption issues. The Q&A section highlights vague responses from management, which could further unsettle investors. While there are optimistic elements, the overall sentiment is negative due to financial losses, cost control challenges, and project risks.
Total Revenue Q3 2024 $9.9 million, down $7 million year-over-year; primarily due to the expected LanzaJet sublicense event not occurring and depressed ethanol pricing.
Biorefining Revenue Q3 2024 $5.9 million, down $6.5 million year-over-year; lower than Q3 2023 due to high engineering services revenue in the prior year.
Joint Development and Contract Research Revenue Q3 2024 $1.8 million, down $1 million from Q2 2024; primarily due to completion of government projects and downtime before new projects.
CarbonSmart Product Sales Revenue Q3 2024 $2.2 million, up from $0.9 million in Q2 2024; in line with Q3 2023, driven by increased direct fuel product sales despite lower ethanol prices.
Cost of Revenue Q3 2024 $8.1 million, down from $14.4 million in Q3 2023; related to headcount allocations and higher CarbonSmart sales.
Gross Margin Q3 2024 18% of revenue; impacted by revenue mix and absence of high-margin LanzaJet share issuance revenue.
Operating Expenses Q3 2024 $34.8 million, up $5 million year-over-year; flat compared to Q2 2024, driven by project development expenses.
Adjusted EBITDA Q3 2024 Loss of $27.1 million, compared to a loss of $19.1 million in Q3 2023; due to lower revenues and higher project development expenses.
Cash Position Q3 2024 $89.1 million, up from $75.8 million at the end of Q2 2024; increase attributed to a $40 million investment by Carbon Direct Capital.
LanzaTech Nutritional Protein: Announced ability to produce single-cell protein, targeting the $1 trillion alternative protein market.
Ethanol Off-take Agreement: Signed a two-stage ethanol off-take agreement with ArcelorMittal, with potential annual revenue of $6 million to $20 million.
Project Drake: 30 million gallon per year ethanol to sustainable aviation fuel project, expected to positively impact Q4 financial performance.
Project SECURE: Progressing well, with potential revenue of approximately $4 million before year-end.
Joint Venture with Olayan Group: Expected to finance and cultivate commercial opportunities in the Middle East.
Cost Control: Focused on controlling and reducing costs, with operating expenses at $34.8 million, below budget.
Cash Position: Increased cash position to $89.1 million, attributed to a $40 million investment by Carbon Direct Capital.
Business Model Evolution: Evolving from a licensing model to developing and financing own projects for greater control and profitability.
Partnership Approach: Adopting a partnership approach with capital partners to secure financing for project development.
Revenue Shortfall: Third quarter revenue was $9.9 million, about $7 million below target due to the expected LanzaTech sublicense event not occurring and depressed ethanol pricing.
Market Dynamics: Ethanol pricing in the target market was significantly below expectations, impacting CarbonSmart revenue despite a quarter-over-quarter increase.
Project Development Risks: The company is evolving its business model to take more control over project development, which involves risks associated with securing capital and managing project timelines.
Timing Uncertainty: Several key initiatives, including Project Drake and the next LanzaJet sublicensing event, have timing uncertainties that could affect fourth quarter financial outcomes.
Cost Control Challenges: Operating expenses increased year-over-year, driven by project development costs, although the company is focused on controlling and reducing costs.
Cash Flow Risks: The company faces risks related to cash flow generation, particularly if anticipated revenues from projects do not materialize as expected.
Regulatory and Market Adoption Risks: The reliance on the adoption and decision cycles of licensees poses risks to the business model, potentially delaying revenue recognition.
Business Model Evolution: LanzaTech is evolving its business model to complement its licensing business and enhance its capability to develop and finance its own projects, allowing for greater control over timing and performance.
Project Drake: Project Drake is a 30 million gallon per year ethanol to sustainable aviation fuel project expected to reach final investment decision in 2025, with significant positive impact on financial performance.
Partnerships: LanzaTech is partnering with Brookfield Asset Management for project financing and with the Olayan Group for commercial opportunities in the Middle East.
Ethanol Off-take Agreement: A two-stage ethanol off-take agreement with ArcelorMittal is expected to generate $6 million in annual revenue short-term and $10 million to $20 million per year long-term.
Sustainable Aviation Fuel Projects: LanzaTech is involved in multiple sustainable aviation fuel projects globally, indicating strong market interest.
Single-Cell Protein Production: LanzaTech has developed the capability to produce single-cell protein, targeting the $1 trillion alternative protein market.
Q4 2024 Revenue Expectations: LanzaTech expects a range of revenue outcomes for Q4 2024, with potential drivers including $20 million from the Norway project, similar revenue from Project Drake, and $4 million from Project SECURE.
LanzaJet Sublicensing Agreements: Potential signing of additional LanzaJet sublicensing agreements could result in significant revenue recognition.
2025 Financial Outlook: LanzaTech anticipates that ongoing projects will unlock access to cash, significantly bolstering financial liquidity and accelerating the path to profitability.
Share Settlement Payment: A $10 million settlement payment was made to ACM to fully satisfy obligations under a forward purchase agreement, reducing the number of issued and outstanding common shares.
LanzaJet Sublicensing Agreements: Potential for receiving additional shares and revenue from LanzaJet sublicensing agreements, with expectations of significant revenue recognition associated with share consideration.
The earnings call reveals significant financial challenges, including a decline in revenue and increased operating expenses. Despite some positive developments like increased ownership in LanzaJet and a $40 million investment, there are major concerns such as timing uncertainties, cash flow risks, and regulatory adoption issues. The Q&A section highlights vague responses from management, which could further unsettle investors. While there are optimistic elements, the overall sentiment is negative due to financial losses, cost control challenges, and project risks.
The earnings call summary highlights strong financial performance with a 35% revenue growth and improved EBITDA loss. The partnership with Technip Energies and investment from Carbon Direct Capital are positive catalysts. The Q&A section indicates potential market expansion and sufficient liquidity. Despite some uncertainty in management responses, the overall sentiment is positive, supported by optimistic guidance and strategic partnerships.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
