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LNZA Nasdaq· LanzaTech Global Inc.
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LNZA Nasdaq· LanzaTech Global Inc.
Earnings report Q2 2023

LanzaTech Global, Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

LanzaTech Global, Inc. reported total revenue of $12.92 million for the three months ended June 30, 2023, representing a significant increase of 31% compared to the same period in the previous year. The company's revenue can be broken down into the following segments:

  1. Revenue from contracts with customers - services: $10.37 million, up from $7.14 million in the previous year's quarter. This segment primarily includes revenue generated from providing services to customers.

  2. Revenue from contracts with customers - tangible products: $1.01 million, slightly higher than the $0.98 million reported in the same quarter last year. This segment comprises revenue from the sale of tangible products to customers.

  3. Revenue from collaborative arrangements: $0.46 million, a decrease from $0.97 million in the previous year's quarter. This segment includes revenue generated from collaborative partnerships.

  4. Revenue from related party transactions: $1.08 million, up from $0.76 million in the same quarter last year. This segment represents revenue generated from transactions with related parties.

Strengths

LanzaTech Global, Inc. demonstrated strong financial performance in the latest quarter, with a notable increase in revenue. The company's revenue growth can be attributed to the significant increase in one-time revenue, which rose by 28% to $11.46 million. Additionally, recurring revenue increased by 68% to $1.46 million, indicating a growing base of repeat customers. Management comments suggest that the company's focus on expanding its customer base and diversifying its revenue streams has contributed to this positive performance.

Challenges

Despite the overall strong revenue growth, LanzaTech Global, Inc. faced challenges in managing its cost and operating expenses. The cost of revenue from contracts with customers, both for services and tangible products, increased compared to the previous year's quarter. This rise in costs, excluding depreciation, may have impacted the company's profitability. Additionally, selling, general, and administrative expenses increased by 74%, indicating potential challenges in controlling operating expenses.

Noteworthy

It is worth mentioning that LanzaTech Global, Inc. experienced a significant increase in net loss, which amounted to $26.79 million for the quarter, compared to $15.93 million in the same period last year. This increase in net loss can be attributed to higher operating expenses and potentially other non-recurring factors. The company's adjusted EBITDA also declined by 33% to $(23.82) million, indicating a decrease in operating profitability.

Summary

LanzaTech Global, Inc. delivered a strong performance in terms of revenue growth in the latest quarter. The company experienced significant increases in one-time revenue and recurring revenue, reflecting its success in expanding its customer base and diversifying revenue streams. However, challenges in managing costs and operating expenses resulted in a higher net loss and a decline in adjusted EBITDA. Going forward, LanzaTech Global, Inc. should focus on optimizing its cost structure while continuing to drive revenue growth through its services, tangible products, collaborative arrangements, and related party transactions.

Source documents

Form 10-Q/A  filed on Dec 02, 2023
14 pages scanned

Reference data

Company financials Q2 revenue 20.5M
Analyst estimates Q2 EPS missed by -32.33%
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