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LEXX Nasdaq· Lexaria Bioscience Corporation
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LEXX Nasdaq· Lexaria Bioscience Corporation
Earnings report Q4 2023

Lexaria Bioscience Corp. Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Lexaria Bioscience Corp. reported total revenue of $151.28 thousand. The company's revenue is broken down into four segments: Intellectual Property (IP) Licensing, B2B Product, Research and Development (R&D), and Corporate. IP Licensing generated the highest revenue at $144.99 thousand, followed by B2B Product at $5.39 thousand, and R&D at $0.90 thousand. The Corporate segment did not generate any revenue during the quarter.

Strengths

Lexaria Bioscience Corp. demonstrated strong revenue growth in the latest quarter, with a significant increase compared to the same period last year. The company's total revenue increased by approximately 54% year-over-year, from $97.74 thousand to $151.28 thousand. This growth can be attributed to the success of the IP Licensing segment, which saw a substantial increase in revenue. The management commented that the licensing revenues are significantly concentrated on three licensees, indicating a strong demand for Lexaria's intellectual property.

Challenges

Despite the overall revenue growth, Lexaria Bioscience Corp. faced challenges in controlling its operating expenses. The company's total operating expenses amounted to $1.29 million, which exceeded its gross profit of $146.46 thousand. This resulted in a loss from operations of $1.14 million. The high operating expenses, particularly in the Research and Development segment, indicate potential inefficiencies in cost management.

Noteworthy

It is noteworthy that Lexaria Bioscience Corp. has a non-controlling interest, which resulted in a net loss attributable to non-controlling interest of $5.72 thousand. This indicates that the company has minority shareholders who are not fully responsible for the net loss reported. Additionally, the company experienced an unrealized loss on marketable securities, amounting to $53.22 thousand, which impacted its overall financial performance.

Summary

Lexaria Bioscience Corp. achieved strong revenue growth in the latest quarter, driven by the success of its IP Licensing segment. The company's total revenue increased by approximately 54% compared to the same period last year. However, the company faced challenges in controlling its operating expenses, resulting in a loss from operations. It is important for Lexaria to focus on optimizing cost management to improve its profitability. Overall, the company's revenue performance indicates a positive trend, but careful attention should be given to expense control in order to enhance financial performance.

Source documents

Form 10-Q  filed on Jan 12, 2024
73 pages scanned

Reference data

Company financials Q4 revenue 151.3k
Analyst estimates Q4 EPS missed by -100.00%
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