GlobeNewswire Inc | May 20, 2021 07:00AM EDT

May 20, 2021

UPPSALA, Sweden, May 20, 2021 (GLOBE NEWSWIRE) -- Olink Holding AB (publ) (Olink) (Nasdaq: OLK) today announced its financial results for the first quarter of 2021.

Highlights:

-- Revenue was $13.6 million in the first quarter of 2021, representing year over year growth of 70% on a reported basis and 54% on a constant currency adjusted like-for-like basis -- Adjusted EBITDA was ($3.7) million in the first quarter of 2021, as compared to ($1.4) million in the first quarter of 2020 -- Net loss was ($14.3) million in the first quarter of 2021, as compared to ($11.1) million in the first quarter of 2020 -- Olink issues 2021 revenue guidance to be in the range of $90 million to $92 million, representing 66% to 70% growth over 2020 -- Olink completed an initial public offering of 13.2 million common shares in the forms of ADSs, raising $264.7 million in gross proceeds -- Use of products published in almost 550 peer reviewed studies through March 31st, 2021, including the first two publications on the Explore platform during the first quarter 2021

Olink had strong financial performance in the first quarter of 2021 with continued robust adoption of our proteomics products and services, which use our proprietary Proximity Extension Assay (PEA) technology. Our dedicated team delivered revenue of $13.6 million, representing 70% year over year growth, and strong gross margin improvement, said Jon Heimer, CEO of Olink Proteomics. We successfully completed our IPO in March and are now better positioned to enable new discoveries and improve the lives of patients by enabling understanding of real-time human biology and accelerating proteomics with the scientific community. We expect our strong momentum to continue for the rest of this year and beyond, and are excited about our growing team and strategic investments.

First quarter financial results:In the first quarter, our team delivered strong revenue growth, driven by our newest product offering, Explore. Our financial performance and the successful completion of our IPO has strengthened our balance sheet and positioned the company to accelerate investments for future growth, said Oskar Hjelm, CFO of Olink Proteomics.

Total revenue for the first quarter of 2021 was $13.6 million, as compared to $8.0 million in the first quarter of 2020. Revenue growth was driven primarily by the Explore platform.

Analysis services revenue for the first quarter 2021 was $9.6 million, as compared to $6.0 million in the first quarter of 2020.

Kits revenue for the first quarter of 2021 was $2.8 million, as compared to $1.5 million in the first quarter of 2020.

Other revenue was $1.2 million for the first quarter of 2021, as compared to $0.5 million in the first quarter of 2020.

Looking at revenue by geography during the first quarter of 2021, revenue in North America was $7.3 million, in EMEA (includes Sweden) it was $5.5 million, and it was $0.8 million in China and RoW (includes Japan).

Adjusted gross profit was $9.2 million in the first quarter of 2021, as compared to $5.0 million in the first quarter of 2020.

By segment, adjusted gross profit margin for analysis services for the first quarter 2021 was 64% as compared to 66% in the first quarter of 2020.

Adjusted gross profit margin for kits was 83% for the first quarter 2021, as compared to 44% in the first quarter of 2020.

Adjusted gross profit margin for other was 63% for the first quarter 2021, as compared to 67% in the first quarter of 2020.

Total operating expenses for the first quarter of 2021 were $22.4 million, as compared to $9.1 million in the first quarter of 2020. The increase was due to increased spending according to our strategic plan as well as IPO related expenses.

Net loss for the first quarter of 2021 was ($14.3) million, as compared to ($11.1) million in the first quarter of 2020.

Net loss per share for the first quarter of 2021 was ($0.48) based on an average number of outstanding shares of 38,926,170, as compared to ($0.76) in the first quarter of 2020.

Adjusted EBITDA for the first quarter of 2021 was ($3.7) million, as compared to ($1.4) million in the first quarter of 2020.

2021 guidance:Olink expects full year 2021 revenue to be in the range of $90 million to $92 million. We plan to continue to accelerate investments into our platform to further accelerate growth.

Webcast and conference call detailsOlink will host a conference call to discuss the first quarter financial results before the market opens May 20, 2021 at 8:00 a.m. Eastern Time. The dial-in numbers are (833) 562-0120 for domestic callers or (661) 567-1096 for international callers, followed by Conference ID: 5167217. A live webcast of the conference call will be available on the Investors section of the Company's website at https://investors.olink.com/investor-relations. The webcast will be archived and available for replay for at least 90 days after the event.

Statement regarding use of non IFRS financial measuresWe present certain non-IFRS financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We believe that the use of these non-IFRS measures facilitates investors assessment of our operating performance. We caution readers that amounts presented in accordance with our definitions of Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Profit Percentage may not be the same as similar measures used by other companies. Not all companies and Wall Street analysts calculate the non-IFRS measures we use in the same manner. We compensate for these limitations by reconciling each of these non-IFRS measures to the nearest IFRS performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

Use of forward-looking statementsThis press release contains forward-looking statements that are based on managements beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our 2021 revenue outlook, our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts, and other matters regarding our business strategies, use of capital, results of operations and financial position, and plans and objectives for future operations.

In some cases, you can identify forward-looking statements by the words may, will, could, would, should, expect, intend, plan, anticipate, believe, estimate, predict, project, potential, continue, ongoing or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under the captions "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Registration Statement on Form F-1, as amended (File No. 333-253818) and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.

About OlinkOlink Holding AB (Nasdaq: OLK) is a company dedicated to accelerating proteomics together with the scientific community, across multiple disease areas to enable new discoveries and improve the lives of patients. Olink provides a platform of products and services which are deployed across major biopharmaceutical companies and leading clinical and academic institutions to deepen the understanding of real-time human biology and drive 21st century healthcare through actionable and impactful science. The company was founded in 2016 and is well established across Europe, North America and Asia. Olink is headquartered in Uppsala, Sweden.

ContactsMedia and Investor RelationsOlink Holding AB (publ), Stina Thorman, stina.thorman@olink.com, +46707187354

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

For the three For the threeAmounts in thousands of US Dollars Note months months ended March ended March 31, 2021 31, 2020Revenue 4 $ 13,628 $ 7,998 Cost of goods sold (4,996 ) (3,549 )Gross profit 8,632 4,449 Selling expenses (5,704 ) (2,710 )Administrative expenses (12,411 ) (3,872 )Research and development expenses (4,219 ) (2,587 )Other operating (loss)/income (105 ) 100 Operating loss (13,807 ) (4,620 )Financial income 780 772 Financial expenses (3,991 ) (9,683 )Loss before tax (17,018 ) (13,531 )Income tax 2,723 2,413 Net loss for the period (Attributable $ (14,295 ) $ (11,118 )to shareholders of the Parent)Basic and diluted loss per share 9 $ (0.48 ) $ (0.76 ) Other comprehensive income/(loss): Items that may be reclassified to profit or loss:Exchange differences from translation of foreign (20,553 ) (15,290 )operationsOther comprehensive income/(loss) for (20,553 ) (15,290 )the period, net of taxTotal comprehensive loss for the period, netof $ (34,848 ) $ (26,408 )taxTotal comprehensive loss for theperiod (Attributable to shareholder $ (34,848 ) $ (26,408 )of the Parent)

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

Amounts in thousands of US Dollars Note As of March As of 31, 2021 December 31, (Unaudited) 2020ASSETS Non-current assets Intangible assets $ 323,461 $ 347,387 Property, plant and equipment 5,856 5,774 Right-of-use assets 4,381 4,684 Deferred tax assets 1,066 37 Other long-term receivables 129 133 Total non-current assets 334,893 358,015 Current assets Inventories 20,962 20,826 Trade receivables 17,890 33,482 Other receivables 3,632 2,856 Prepaid expenses and accrued income 2,075 1,491 Cash at bank and in hand 191,418 8,655 Total current assets 235,977 67,310 TOTAL ASSETS $ 570,870 $ 425,325 EQUITY Share capital 5 30,964 27,224 Other contributed capital 5 499,452 257,774 Reserves 18,807 39,360 Accumulated losses (38,953 ) (24,658 )Total equity attributable to shareholders of $ 510,270 $ 299,700 the ParentLIABILITIES Non-current liabilities Interest-bearing loans and borrowings 5, 6 1,998 63,965 Deferred tax liabilities 29,372 33,193 Total non-current liabilities 31,370 97,158 Current liabilities Interest-bearing loans and borrowings 5, 6 2,124 2,146 Accounts payable 9,852 6,658 Current tax liabilities 224 506 Other current liabilities 17,030 19,157 Total current liabilities 29,230 28,467 Total liabilities $ 60,600 $ 125,625 TOTAL EQUITY AND LIABILITIES $ 570,870 $ 425,325

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

For the three For the threeAmounts in thousands of US Dollars Note months months ended March ended March 31, 2021 31, 2020Operating activities Loss before tax $ (17,018 ) $ (13,531 )Adjustments reconciling loss before tax to operating cash flows:Depreciation and amortization 3,663 2,863 Net finance expense 3,211 8,911 Changes in working capital: (Increase) in inventories (1,402 ) (440 )Decrease in accounts receivable 14,068 7,821 (Increase) in other current (2,185 ) (845 )receivablesIncrease in trade payables 3,723 618 (Decrease)/Increase in other current (730 ) 76 liabilitiesInterest paid (1,976 ) (1,397 )Tax paid 33 (4,140 )Cash flow used in operating $ 1,387 $ (64 )activitiesInvesting activities Purchase of property, plant and (948 ) (658 )equipmentDecrease/(Increase) in other - 23 non-current financial assetsCash flow used in investing $ (948 ) $ (635 )activitiesFinancing activities Proceeds from issue of share capital 5 264,706 710 Share issue costs 5 (19,288 ) - Proceeds from interest-bearing loans 2,400 8,000 and borrowingsRepayment of interest-bearing loans 6 (65,627 ) - and borrowingsPayment of principal portion of lease (534 ) (275 )liabilityCash flow from financing activities $ 181,657 $ 8,435 Net cash flow during the period 182,096 7,736 Cash at bank and in hand at the 8,655 6,162 beginning of the periodNet foreign exchange difference 667 501 Cash at bank and in hand at the end $ 191,418 $ 14,399 of the period

A reconciliation of Adjusted EBITDA to operating loss, the most directly comparable IFRS measure, is set forth below:

For the three For the threeAmounts in thousands of U.S. Dollars months ended months ended March 31, 2021 March 31, 2020Operating (loss)/profit (13,807 ) (4,620 )Add: Amortization 2,720 2,317 Depreciation 943 546 EBITDA (10,144 ) (1,757 )Management Adjustments 6,422 348 Adjusted EBITDA $ (3,722 ) $ (1,409 )

Reconciliations of Adjusted Gross Profit to gross profit, the most directly comparable IFRS measure, are set forth below:

For the For theAmounts in thousands of U.S. Dollars, unless three threeotherwise stated months ended months ended March 31, March 31, 2021 2020Revenue $ 13,628 $ 7,998 Cost of goods sold (4,996 ) (3,549 )Gross profit 8,632 4,449 Gross profit % 63.3% 55.6% Less: Inventory fair value step up - 253 Depreciation charges 579 273 Adjusted Gross Profit $ 9,211 $ 4,975 Adjusted Gross Profit % 67.6% 62.2%