Codexis, Inc. (NASDAQ:CDXS) Q1 2022 Earnings Conference Call May 5, 2022 4:30 PM ET

Company Participants

John Nicols – President and Chief Executive Officer

Ross Taylor – Senior Vice President and Chief Financial Officer

Brendan Strong – Investor Relations, Argot Partners

Conference Call Participants

Steven Mah – Cowen

Brandon Couillard – Jefferies

Matthew Hewitt – Craig-Hallum Capital Group

Evan Karev – Piper Sandler

Operator

Welcome to the Codexis First Quarter 2022, Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. And now I'll turn the call over to Brendan Strong from Argot Partners. Please go ahead.

Brendan Strong

Thank you Operator. With me today are John Nicols, Codexis', President and Chief Executive Officer, and Ross Taylor, Codexis' Chief Financial Officer. During this call, management will be making a number of forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995, including our guidance for 2022 revenues, product revenues, and gross margin on product revenues, prospects for our life sciences tools, crude sector and biotherapeutics product businesses, and our expectations regarding the sales of one of our proprietary enzymes to Pfizer for the manufacturer of their COVID 19 antiviral therapeutic Paxlovid. To the extent that statements contained in this press release are not prescriptions of historical facts regarding Codexis.

They are forward-looking statements reflecting the beliefs and expectations of management as of this statement date May 5, 2022. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are in some cases beyond Codexis' control, and that could materially affect actual results. Additional information about factors that could materially affect actual results can be found in Codexis annual report on Form 10-K, filed with the Securities and Exchange Commission on February 28, 2022. Including under the caption Risk Factors and in Codexis' other periodic reports filed with the SEC. Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law. And I'll now turn the call over to John.

John Nicols

Thank you, Brendan. Good afternoon, everyone. I'm pleased to report that Codexis has delivered another very strong quarter of top-line growth as we kick off 2022. Total revenue of $35.3 million for the first quarter of 2022, nearly doubled the year-over-year. A tripling of product revenues versus last year led the way, and those were delivered at an expanded gross margin reaching 72%. Our sales continued to be spread across a wide range of customers in the quarter as well, with 16 who contributed over $100,000 in revenue, 8 of whom contributed over $1 million. We'll provide an in-depth overview of each of our business segments shortly. But I am proud to highlight that we are building on the strength of last year's defining success in the sustainable manufacturing market, by consistently showcasing our value to a broadening range of customers through the quick and efficient scaling of our product supply capacities.