GlobeNewswire Inc | Aug 11, 2021 07:00AM EDT

August 11, 2021

UPPSALA, Sweden, Aug. 11, 2021 (GLOBE NEWSWIRE) -- Olink Holding AB (publ) (Olink) (Nasdaq: OLK) today announced its financial results for the second quarter of 2021.

Highlights:

-- Revenue was $17.7 million in the second quarter of 2021, representing year over year growth of 124% on a reported basis and 129% on a constant currency adjusted like-for-like basis -- Adjusted EBITDA was ($6.3) million in the second quarter of 2021, as compared to ($1.3) million in the second quarter of 2020 -- Net loss was ($10.6) million in the second quarter of 2021, as compared to ($2.0) million in the second quarter of 2020 -- Olink reiterates its expectations for full year 2021 revenue to be in the range of $90 million to $92 million, and its plans to continue to accelerate investments into its platform to further accelerate growth -- Olink introduced and opened up the order books for Olink Explore 3072 and Olink Signature Q100 during the second quarter -- First full quarter of the Explore Kit offering in the market; cumulative number of external kit customers was 16 at the end of the second quarter of 2021 -- Explore accounted for 53% of total revenues in Q2. Explore Kit revenue accounted for 39% of Explore revenues in Q2

We saw excellent financial performance in the second quarter of 2021, our first full quarter as a public company, with strong adoption of our proteomics products and services. We are particularly pleased with the acceptance and adoption of our Explore service and kit offerings. Our dedicated team delivered revenue of $17.7 million, representing 124% year over year growth, said Jon Heimer, CEO of Olink Proteomics. We were excited to open up the order books for Olink Explore 3072 and Olink Signature Q100 during the quarter. We are already seeing early adoption of Explore 3072 by premier customers, including deCODE Genetics, an Amgen subsidiary, and the UK Biobank Pharma Proteomics Project.

Second quarter financial results:In the second quarter, our team delivered strong revenue growth, driven by our newest product offering, Explore. Q2 2021 was the first full quarter with the Explore Kit offering in the market, and Explore accounted for 53% of total revenues in Q2. Explore Kit is our fastest growing product line. Our financial performance and successful IPO have positioned the company to continue to invest ahead of the curve, and accelerate investments for future growth, said Oskar Hjelm, CFO of Olink Proteomics.

Total revenue for the second quarter of 2021 was $17.7 million, as compared to $7.9 million for the second quarter of 2020. Revenue growth was driven primarily by the Explore platform, following a strong quarter for both the Service and Kit offerings. We launched our Explore Kit offering late in the first quarter of 2021. Analysis services revenue for the second quarter of 2021 was $11.8. million, as compared to $5.1 million for the second quarter of 2020.

Kits revenue for the second quarter of 2021 was $5.0 million, as compared to $1.7 million for the second quarter of 2020.

Other revenue was $0.8 million for the second quarter of 2021, as compared to $1.0 million for the second quarter of 2020.

Looking at revenue by geography during the second quarter of 2021, revenue was $7.8 million in North America, $8.7 million in EMEA (including Sweden), and $1.2 million in China and RoW (including Japan).

Adjusted gross profit was $12.5 million in the second quarter of 2021, as compared to $5.7 million in the second quarter of 2020.

By segment, adjusted gross profit margin for analysis services for the second quarter of 2021 was 64% as compared to 67% in the second quarter of 2020.

Adjusted gross profit margin for kits was 90% for the second quarter of 2021, as compared to 95% for the second quarter of 2020.

Adjusted gross profit margin for other was 44% for the second quarter 2021, as compared to 62% for the second quarter of 2020.

Total operating expenses for the second quarter of 2021 were $23.3 million, as compared to $10.5 million for the second quarter of 2020. The increase was due to increased spending according to Olinks strategic plan, as well as IPO related expenses. Operating expenses excluding IPO related non-recurring items were $21.9 million in the second quarter of 2021.

Net loss for the second quarter of 2021 was ($10.6) million, as compared to ($2.0) million for the second quarter of 2020.

Net loss per share for the second quarter of 2021 was ($0.09) based on a weighted average number of outstanding shares of 119,007,062, as compared to ($0.28) in the second quarter of 2020 based on a weighted average number of outstanding shares of 20,532,723.

Adjusted EBITDA for the second quarter of 2021 was ($6.3) million, as compared to ($1.3) million for the second quarter of 2020.

2021 guidance:Due to the continued uncertainty around the COVID pandemic, Olink is maintaining its previous guidance of revenue for 2021. The company 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 second quarter financial results before the market opens on August 11, 2021 at 8:00 a.m. Eastern Time U.S. The dial-in numbers are (833) 562-0120 for U.S. domestic callers or (661) 567-1096 for international callers, followed by Conference ID: 1764101. A live webcast of the conference call will be available on the Investors section of the Companys 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 Managements Discussion and Analysis of Financial Condition and Results of Operations in our Registration Statement on Form F-1, as amended (File No. 333-257842) 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)

Three months ended Six months ended June 30, June 30,Amounts inthousands of Note 2021 2020 2021 2020 US DollarsRevenue 4 $ 17,688 $ 7,884 $ 31,316 $ 15,882 Cost of goods (5,823 ) (2,291 ) (10,819 ) (5,840 )soldGross profit 11,865 5,593 20,497 10,042 Selling (6,979 ) (2,959 ) (12,683 ) (5,669 )expensesAdministrative (12,172 ) (3,963 ) (24,583 ) (7,835 )expensesResearch anddevelopment (4,990 ) (3,506 ) (9,209 ) (6,093 )expensesOtheroperating 868 (115 ) 763 (15 )income/(loss)Operating loss (11,408 ) (4,950 ) (25,215 ) (9,570 )Interestincome/ 2.1 (78 ) (2,225 ) (1,953 ) (4,258 )(expense)Foreignexchange gain/ 2.1 (5,806 ) 5,416 (5,501 ) (1,174 )(loss)Otherfinancial 2.1 (115 ) (143 ) (1,756 ) (431 )income/(expense)Loss before (17,407 ) (1,902 ) (34,425 ) (15,433 )taxIncome taxbenefit/ 6,806 (145 ) 9,529 2,268 (expense)Net loss forthe period(Attributable $ (10,601 ) $ (2,047 ) $ (24,896 ) $ (13,165 )toshareholdersof the Parent)Basic anddiluted loss 9 $ (0.09 ) $ (0.28 ) $ (0.37 ) $ (1.03 )per share Othercomprehensive income/(loss):Items that maybereclassified to profit orloss:Exchangedifferencesfrom 13,167 15,190 (7,386 ) (100 )translation offoreignoperationsOthercomprehensiveincome/(loss) 13,167 15,190 (7,386 ) (100 )for theperiod, net oftaxTotalcomprehensiveincome/(loss) $ 2,566 $ 13,143 $ (32,282 ) $ (13,265 )for theperiod, net oftaxTotalcomprehensiveincome/(loss)for the period $ 2,566 $ 13,143 $ (32,282 ) $ (13,265 )(Attributableto shareholderof the Parent)

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

As of June As of DecemberAmounts in thousands of US Dollars Note 30, 31, 2021 2020 (Unaudited)ASSETS Non-current assets Intangible assets $ 330,546 $ 347,387 Property, plant and equipment 7,117 5,774 Right-of-use asset 4,983 4,684 Deferred tax assets 10 11,301 37 Other long-term receivables 305 133 Total non-current assets 354,252 358,015 Current assets Inventories 25,657 20,826 Trade receivables 19,882 33,482 Other receivables 4,426 2,856 Prepaid expenses and accrued income 12,356 1,491 Cash at bank and in hand 158,114 8,655 Total current assets 220,435 67,310 TOTAL ASSETS $ 574,687 $ 425,325 EQUITY Share capital 5 30,964 27,224 Other contributed capital 5 503,317 257,774 Reserves 31,974 39,360 Accumulated losses (49,554 ) (24,658 )Total equity attributable to $ 516,701 $ 299,700 shareholders of the ParentLIABILITIES Non-current liabilities Interest-bearing loans and 5, 6 2,093 63,965 borrowingsDeferred tax liabilities 10 29,538 33,193 Total non-current liabilities 31,631 97,158 Current liabilities Interest-bearing loans and 5, 6 2,422 2,146 borrowingsAccounts payable 6,283 6,658 Current tax liabilities 267 506 Other current liabilities 17,383 19,157 Total current liabilities 26,355 28,467 Total liabilities $ 57,986 $ 125,625 TOTAL EQUITY AND LIABILITIES $ 574,687 $ 425,325

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

Six months ended June 30,Amounts in thousands of US Dollars Note 2021 2020 Operating activities Loss before tax $ (34,425 ) $ (15,433 )Adjustments reconciling loss before tax to operating cash flows:Depreciation and amortization 7,420 5,754 Net finance expense 9,210 5,863 Share based payment expense 300 Changes in working capital: (Increase) in inventories (5,470 ) (1,957 )Decrease in accounts receivable 12,493 9,916 (Increase) in other current (11,300 ) (412 )receivablesIncrease in trade payables (113 ) 251 (Decrease)/Increase in other current (854 ) (295 )liabilitiesInterest paid (2,054 ) (1,542 )Tax paid (1,803 ) (3,380 )Cash flow used in operating (26,596 ) (1,235 )activitiesInvesting activities Purchase of intangible assets (1,692 ) (4,191 )Purchase of property, plant and (2,546 ) (839 )equipmentAcquisition of subsidiaries, net of - (4,593 )cash acquiredDecrease/(Increase) in other (175 ) 23 non-current financial assetsCash flow used in investing (4,413 ) (9,600 )activitiesFinancing activities Proceeds from issue of share capital 5 264,706 13,634 Share issue costs 5 (19,485 ) Proceeds from interest-bearing loans 2,312 8,000 and borrowingsRepayment of interest-bearing loans 6 (65,627 ) and borrowingsPayment of principal portion of lease (1,450 ) (588 )liabilityCash flow from financing activities 180,456 21,046 Net cash flow during the period 149,447 10,211 Cash at bank and in hand at the 8,655 6,162 beginning of the periodNet foreign exchange difference 12 609 Cash at bank and in hand at the end $ 158,114 $ 16,982 of the period

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

Three months ended Six months ended June 30, June 30,Amounts in thousands of 2021 2020 2021 2020 U.S. DollarsOperating (loss)/profit (11,408 ) (4,950 ) (25,215 ) (9,570 )Add: Amortization 2,728 2,343 5,448 4,660 Depreciation 1,029 548 1,972 1,094 EBITDA (7,651 ) (2,059 ) (17,795 ) (3,816 )Management Adjustments 1,400 735 7,822 1,083 Adjusted EBITDA (6,251 ) (1,324 ) (9,973 ) (2,733 )

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

Three months ended Six months ended June 30, June 30,Amounts inthousands ofU.S. Dollars, 2021 2020 2021 2020 unlessotherwisestatedRevenue $ 17,688 $ 7,884 $ 31,316 $ 15,882 Cost of goods (5,823 ) (2,291 ) (10,819 ) (5,840 )soldGross Profit 11,865 5,593 20,497 10,042 Gross Profit % 67.1 % 70.9 % 65.5 % 63.2 %Less: Inventory fair - - - 253 value step upDepreciation 622 118 1,201 391 chargesAdjusted Gross 12,487 5,711 21,698 10,686 ProfitAdjusted Gross 70.6 % 72.4 % 69.3 % 67.3 %Profit %