NEW YORK – Olink reported on Wednesday that its Q2 revenues were up 7 percent year over year.
For the three months ended June 30, the Uppsala, Sweden-based proteomics firm posted revenues of $29.4 million, up from $27.5 million in the year-ago period but below the consensus Wall Street estimate of $33.3 million.
Service revenue was $15.5 million, down 13 percent from $17.9 million in Q2 2022. Kits revenue was $10.5 million, up 48 percent from $7.1 million in the year-ago period. Other revenue was $3.4 million, up 36 percent from $2.5 million in Q2 2022.
On a conference call following release of the results, Olink CEO Jon Heimer highlighted the July release of the company's Explore HT platform, which expands the protein targets measured by its Explore system from around 3,000 to more than 5,300.
The new system also offers a fourfold improvement in sample throughput and sevenfold improvement in data throughput, as well as lower sequencing and labor costs and a simpler workflow, Heimer said.
Chief Commercial Officer Carl Raimond said during the call that the Baylor College of Medicine Human Genome Sequencing Center has acquired an Explore HT system and added that the company is seeing interest in the system "across biopharma, academia, and government," both from new potential customers and existing customers interested in upgrading their Explore systems to the Explore HT.
During the quarter, Olink placed 11 Explore systems, bringing the total number of installations to 74. It also placed 15 of its Signature Q100 instruments, bringing total placements to 132.
Raimond noted that kit sales made up 36 percent of the company's revenue compared to 26 percent in Q2 2022 and said that Olink remains on track to hit its target of achieving 50 percent of its revenues from kits by the end of 2023.
He added that the company had seen a lengthening in sales cycles, particularly among biopharma customers, which he attributed to general macroeconomic conditions as well as the fact that some potential customers were waiting for the launch of the new Explore HT system.
Olink's net loss in the second quarter was $8.3 million, or $.07 per share, compared to $4.8 million, or $.04 per share, in Q2 2022 and outperforming the consensus Wall Street estimate of $.10.
The company's R&D expenses were $8.1 million, up 11 percent from $7.3 million in the year-ago period. Its SG&A costs were up 15 percent to $28.4 million from $24.6 million in Q2 2022.
Olink maintained its previously projected 2023 revenue guidance of between $192 million and $200 million.
It ended the quarter with $151.2 million in cash and cash equivalents.
In Wednesday morning trading on the Nasdaq, Olink shares were down 4 percent to $15.52.