UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO SECTION 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2022
Commission File Number: 001-40277
OLINK HOLDING AB (PUBL)
(Exact Name of Registrant as Specified in its Charter)
Uppsala Science Park
SE-751 83
Uppsala, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
On February 14, 2022, Olink Holding AB (publ) issued a news release announcing its unaudited financial results for the fourth quarter and full year ended December 31, 2021, and providing revenue guidance for the full year 2022. A copy of the news release is furnished as Exhibit 99.1 to this Form 6-K.
Company management hosted a conference call to discuss financial results on February 14, 2022. An archived webcast of the event will be available on the "Investors" section of the Company's website at https://investors.olink.com/investor-relations. A copy of the presentation is furnished as Exhibit 99.2 to this Form 6-K.
| Exhibit No. | Description |
| 99.1 | Olink Holding AB (publ) News Release dated February 14, 2022. |
| 99.2 | Olink Holding AB (publ) Presentation February 14, 2022. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| OLINK HOLDING AB (PUBL) | |||
| By: | /s/ Jon Heimer | ||
| Name: | Jon Heimer | ||
| Title: | Chief Executive Officer | ||
Date: February 14, 2022
Exhibit 99.1
Olink reports fourth quarter and full year 2021 financial results and provides outlook for 2022
UPPSALA, Sweden, February 14, 2022 (GLOBE NEWSWIRE) -- Olink Holding AB (publ) (“Olink”) (Nasdaq: OLK) today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2021, and provided revenue guidance for the full year 2022.
Highlights
| · | Fourth quarter revenue totaled $43.7 million, representing year over year growth of 61% on a reported basis and 45% on a constant currency adjusted like-for-like basis |
| · | Full year 2021 revenue totaled $95.0 million, achieving year over year growth of 76% on a reported basis and 64% on a constant currency adjusted like-for-like basis |
| · | Accelerating investment following the IPO, increased the number of employees by almost two-fold to 416 by the end of 2021, including 150 employees in the commercial organization |
| · | Cumulative Explore customer installations reached 25 at the end of 2021, compared to 21 at the end of the third quarter |
| · | Achieved 28 Signature Q100 placements during the fourth quarter |
| · | Explore revenue of $30.1 million accounted for 69% of total fourth quarter revenue, with Explore Kit revenue totaling $12.0 million, or 40% of total Explore revenues |
| · | Fourth quarter Kit revenue and analysis services revenue represented 35% and 54% of total revenue, respectively |
| · | Fourth quarter adjusted EBITDA and net loss was ($1.4) million and ($8.0) million, respectively; with full year 2021 adjusted EBITDA and net loss totaling ($18.5) million and ($38.3) million, respectively |
| · | Olink expects full year 2022 revenue to be in the range of $138 million to $145 million, growing 45% - 53%, plans continued strong investment to drive further adoption of its industry-leading proteomics platform, and remains sufficiently capitalized for executing its existing strategic plan |
“Achieving or surpassing all of Olink's major operational milestones in 2021, our industry-leading execution is proof of the talent and drive of our entire organization,” said Jon Heimer, CEO of Olink Proteomics. “Olink entered the year in an exceptionally strong competitive position; with increased optimism about the proteomics market and high conviction in its leadership position, in 2022 and beyond."
Fourth quarter and full year financial results
“Olink's fourth quarter performance was tremendous, providing a great opportunity to strategically accelerate investment into the Company,” said Oskar Hjelm, CFO of Olink Proteomics. "We anticipate 2022 will be another year of strong revenue growth, and we remain well capitalized to deliver on our existing strategic plan and return to profitability."
Benefitting from rapid adoption of new products, and strong growth across major geographic regions, total revenue for the fourth quarter of 2021 was $43.7 million, as compared to $27.2 million for the fourth quarter of 2020. Fourth quarter revenue growth, totaling 61%, was driven primarily by strong Explore growth. Full year 2021 revenue grew 76% to $95.0 million, as compared to $54.1 million for 2020.
1 Olink press release ½ Fourth quarter and full year 2021 report
Kits revenue for the fourth quarter of 2021 grew 83% to $15.3 million, or 35% of total revenue, as compared to $8.3 million for the fourth quarter of 2020, or 31% of total revenue. Drivers of kits revenue included strong Explore pull-through and a rapid expansion of our external kit users. Full year 2021 kits revenue grew 82%, totaling $26.8 million, versus $14.8 million during 2020. The strong Explore Kit revenue growth was enabled by rapid customer adoption of the Explore externalization strategy leading to 25 external kit users and pull through levels of approximately $750,000 for full year 2021.
Analysis services revenue for the fourth quarter of 2021 was $23.7 million, as compared to $17.3 million for the fourth quarter of 2020, representing 37% growth. Full year 2021 analysis service revenue totaled $60.2 million, versus $34.4 million for 2020, representing 75% growth.
Other revenue was $4.7 million for the fourth quarter of 2021, as compared to $1.6 million for the fourth quarter of 2020. Other revenue growth was driven primarily by the placement of 28 Signature Q100 instruments during the quarter. Full year 2021 other revenue totaled $8.0 million, versus $4.9 million for 2020.
By geography, revenue during the fourth quarter of 2021 was $20.2 million in North America, $20.1 million in EMEA (including Sweden), and $3.3 million in China and RoW (including Japan). By geography, revenue during the full year 2021 was $42.3 million in North America, $45.4 million in EMEA (including Sweden), and $7.2 million in China and RoW (including Japan).
Driven primarily by the decision to accelerate investment, adjusted EBITDA was ($1.4) million for the fourth quarter of 2021, as compared to $10.8 million for the fourth quarter of 2020. Full year 2021 adjusted EBITDA was ($18.5) million, versus $11.0 million for 2020.
Adjusted gross profit was $26.5 million in the fourth quarter of 2021, as compared to $19.6 million in the fourth quarter of 2020. Full year 2021 adjusted gross profit totaled $61.3 million, versus $38.4 million for 2020.
By segment, adjusted gross profit margin for kits was 85% for the fourth quarter of 2021, as compared to 90% for the fourth quarter of 2020. The decrease in margin in the fourth quarter of 2021 compared to 2020 was related to year-end adjustments for Target reagent products. Full year 2021 adjusted gross profit margin for kits was 86%, versus 84% for 2020.
Fourth quarter 2021 adjusted gross profit margin for analysis services was 50% as compared to 68% in the fourth quarter of 2020. The decline in analysis services margin was driven primary by the 56,000 samples processed for the UKBB. Olink remains very pleased with the investment into the UKBB project and how it will further research and further cement its position as the leader in proteomics. In addition, analysis services margin was impacted by an increase in personnel costs driven by the increase of Olink's lab capacity. Full year 2021 adjusted gross profit margin for analysis services was 57%, versus 69% for 2020.
Adjusted gross profit margin for Other was 34%, as compared to 23% for the fourth quarter of 2020. Fourth quarter 2021 Other adjusted gross profit margin was impacted by Signature platform sales. Full year 2021 adjusted gross profit margin for Other was 45%, versus 47% for 2020.
2 Olink press release ½ Fourth quarter and full year 2021 report
Total operating expenses for the fourth quarter of 2021 were $33.1 million, as compared to $13.8 million for the fourth quarter of 2020. The increase was largely due to continued and accelerated investment in Olink's commercial organization and research and development and driven by additional costs as a public company as well.
Full year 2021 total operating expenses were $102.9 million, as compared to $42.0 million for 2020. Net loss for the fourth quarter of 2021 was ($8.0) million, as compared to a net profit of $6.5 million for the fourth quarter of 2020. Full year 2021 net loss totaled ($38.3) million, as compared to ($6.8) million for 2020.
Net loss per share for the fourth quarter of 2021 was ($0.07) based on a weighted average number of outstanding shares of 119,007,062 as compared to a net profit per share of $0.13 in the fourth quarter of 2020 based on a weighted average number of outstanding shares of 23,190,461. Full year 2021 net loss per share totaled ($0.43), versus ($1.10) per share in 2020.
2022 guidance
Given the Company's strong competitive position and the growth prospects of the proteomics market, Olink expects full year 2022 revenue will be in the range of $138 million to $145 million, progressing along a seasonal pattern similar to 2021. Olink also expects it will continue to accelerate investment this year to drive growth, and believes it is sufficiently capitalized to deliver on its existing strategic plan and return to profitability.
Webcast and conference call details
Company management will host a conference call to discuss financial results at 8:00 am ET. Investors interested in listening to the conference call may do so by dialing (833) 562-0120 for domestic callers or (661) 567-1096 for international callers, followed by Conference ID: 5159949. 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 measures
We 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.
3 Olink press release ½ Fourth quarter and full year 2021 report
Use of forward-looking statements
This press release contains forward-looking statements that are based on management’s 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 2022 revenue outlook, our Explore externalizations, 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. 333-257842) 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 Olink
Olink 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.
IR Contact
Jan Medina, CFA, VP Investor Relations & Capital Markets
Mobile: +1 617 802 4157
jan.medina@olink.com
Media Contact
Andrea Prander, Corporate Communications Manager
Mobile: +46 768 775 275
andrea.prander@olink.com
4 Olink press release ½ Fourth quarter and full year 2021 report
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
| Three
months ended December 31, | Twelve
months ended | |||||||||||||||
| Amounts in thousands of US Dollars | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Revenue | $ | 43,683 | $ | 27,188 | $ | 94,973 | $ | 54,067 | ||||||||
| Cost of goods sold | (18,379 | ) | (8,437 | ) | (36,763 | ) | (17,456 | ) | ||||||||
| Gross profit | 25,304 | 18,751 | 58,209 | 36,611 | ||||||||||||
| Selling expenses | (11,950 | ) | (4,276 | ) | (33,668 | ) | (12,722 | ) | ||||||||
| Administrative expenses | (11,826 | ) | (7,893 | ) | (47,495 | ) | (20,102 | ) | ||||||||
| Research and development expenses | (8,722 | ) | (2,209 | ) | (22,141 | ) | (9,632 | ) | ||||||||
| Other operating income/(loss) | (596 | ) | 584 | 443 | 475 | |||||||||||
| Operating profit/(loss) | (7,791 | ) | 4,957 | (44,652 | ) | (5,370 | ) | |||||||||
| Interest income/(expense) | (38 | ) | (1,187 | ) | (2,048 | ) | (6,631 | ) | ||||||||
| Foreign exchange gain/(loss) | 2,523 | 4,587 | 1,875 | 5,455 | ||||||||||||
| Other financial income/(expense) | 19 | (135 | ) | (1,719 | ) | (713 | ) | |||||||||
| Loss before tax | (5,288 | ) | 8,222 | (46,545 | ) | (7,259 | ) | |||||||||
| Income tax benefit/(expense) | (2,685 | ) | (1,732 | ) | 8,206 | 479 | ||||||||||
| Net profit/(loss) for the period (Attributable to shareholders of the Parent) | $ | (7,972 | ) | $ | 6,490 | $ | (38,339 | ) | $ | (6,780 | ) | |||||
| Basic and diluted profit/(loss) per share | $ | (0.07 | ) | $ | 0.13 | $ | (0.43 | ) | $ | (1.10 | ) | |||||
| Other comprehensive (loss)/income: | ||||||||||||||||
| Items that may be reclassified to profit or loss: | ||||||||||||||||
| Exchange differences from translation of foreign operations | (13,570 | ) | 26,535 | (37,659 | ) | 36,761 | ||||||||||
| Other comprehensive (loss)/income for the period, net of tax | (13,570 | ) | 26,535 | (37,659 | ) | 36,761 | ||||||||||
| Total comprehensive (loss)/income for the period, net of tax | $ | (21,542 | ) | $ | 33,025 | $ | (75,998 | ) | $ | 29,981 | ||||||
| Total comprehensive (loss)/income for the period (Attributable to shareholder of the Parent) | $ | (21,542 | ) | $ | 33,025 | $ | (75,998 | ) | $ | 29,981 | ||||||
5 Olink press release ½ Fourth quarter and full year 2021 report
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
| Amounts in thousands of US Dollars | As
of | As of December 31, 2020 | ||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Intangible assets | $ | 308,124 | $ | 347,387 | ||||
| Property, plant and equipment | 12,696 | 5,774 | ||||||
| Right-of-use asset | 8,778 | 4,684 | ||||||
| Deferred tax assets | 9,091 | 37 | ||||||
| Other long-term receivables | 422 | 133 | ||||||
| Total non-current assets | 339,111 | 358,015 | ||||||
| Current assets | ||||||||
| Inventories | 28,940 | 20,826 | ||||||
| Trade receivables | 42,061 | 33,482 | ||||||
| Other receivables | 4,094 | 2,856 | ||||||
| Prepaid expenses and accrued income | 7,475 | 1,491 | ||||||
| Cash at bank and in hand | 118,096 | 8,655 | ||||||
| Total current assets | 200,667 | 67,310 | ||||||
| TOTAL ASSETS | $ | 539,778 | $ | 425,325 | ||||
| EQUITY | ||||||||
| Share capital | 30,964 | 27,224 | ||||||
| Other contributed capital | 506,008 | 257,774 | ||||||
| Reserves | 1,701 | 39,360 | ||||||
| Accumulated losses | (62,997 | ) | (24,658 | ) | ||||
| Total equity attributable to shareholders of the Parent | $ | 475,677 | $ | 299,700 | ||||
| LIABILITIES | ||||||||
| Non-current liabilities | ||||||||
| Interest-bearing loans and borrowings | 5,427 | 63,965 | ||||||
| Deferred tax liabilities | 27,092 | 33,193 | ||||||
| Total non-current liabilities | 32,518 | 97,158 | ||||||
| Current liabilities | ||||||||
| Interest-bearing loans and borrowings | 2,952 | 2,146 | ||||||
| Accounts payable | 8,668 | 6,658 | ||||||
| Current tax liabilities | 314 | 506 | ||||||
| Other current liabilities | 19,649 | 19,157 | ||||||
| Total current liabilities | 31,583 | 28,467 | ||||||
| Total liabilities | $ | 64,101 | $ | 125,625 | ||||
| TOTAL EQUITY AND LIABILITIES | $ | 539,778 | $ | 425,325 | ||||
6 Olink press release ½ Fourth quarter and full year 2021 report
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
| Twelve months ended December 31, | ||||||||
| Amounts in thousands of US Dollars | 2021 | 2020 | ||||||
| Operating activities | ||||||||
| Loss before tax | $ | (46,545 | ) | $ | (7,259 | ) | ||
| Adjustments reconciling loss before tax to operating cash flows: | ||||||||
| Depreciation and amortization | 15,802 | 12,540 | ||||||
| Net finance expense | 1,893 | 1,889 | ||||||
| Loss on sale of assets | 502 | - | ||||||
| Share based payment expense | 2,524 | - | ||||||
| Changes in working capital: | ||||||||
| (Increase)/Decrease in inventories | (10,158 | ) | (5,978 | ) | ||||
| (Increase)/Decrease in accounts receivable | (12,172 | ) | (11,889 | ) | ||||
| (Increase)/Decrease in other current receivables | (6,105 | ) | (911 | ) | ||||
| (Decrease)/Increase in trade payables | 3,014 | 3,738 | ||||||
| (Decrease)/Increase in other current liabilities | 2,039 | 11,146 | ||||||
| Interest received | 98 | - | ||||||
| Interest paid | (2,312 | ) | (4,726 | ) | ||||
| Tax received/(paid) | (2,266 | ) | (5,339 | ) | ||||
| Cash flow used in operating activities | $ | (53,687 | ) | $ | (6,789 | ) | ||
| Investing activities | ||||||||
| Purchase of intangible assets | (4,325 | ) | (7,791 | ) | ||||
| Purchase of property, plant and equipment | (10,482 | ) | (3,460 | ) | ||||
| Proceeds from sale of property, plant and equipment | 144 | - | ||||||
| Acquisition of subsidiaries, net of cash acquired | - | (4,593 | ) | |||||
| Decrease/(Increase) in other non-current financial assets | (297 | ) | 2 | |||||
| Cash flow used in investing activities | $ | (14,960 | ) | $ | (15,842 | ) | ||
| Financing activities | ||||||||
| Proceeds from issue of share capital | 264,706 | 19,155 | ||||||
| Share issue costs | (19,484 | ) | - | |||||
| Proceeds from interest-bearing loans and borrowings | 2,312 | 7,930 | ||||||
| Repayment of interest-bearing loans and borrowings | (65,627 | ) | - | |||||
| Payment of principal portion of lease liability | (2,845 | ) | (1,490 | ) | ||||
| Cash flow from financing activities | $ | 179,062 | $ | 25,595 | ||||
| Net cash flow during the period | 110,415 | 2,964 | ||||||
| Cash at bank and in hand at the beginning of the period | 8,656 | 6,162 | ||||||
| Net foreign exchange difference | (975 | ) | (471 | ) | ||||
| Cash at bank and in hand at the end of the period | $ | 118,096 | $ | 8,655 | ||||
7 Olink press release ½ Fourth quarter and full year 2021 report
The following table presents the Company’s key financial information by segment (unaudited):
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| Amounts in thousands of U.S. Dollars, unless otherwise stated | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Kit | ||||||||||||||||
| Revenue | 15,263 | 8,320 | 26,797 | 14,759 | ||||||||||||
| Cost of goods sold | (2,439 | ) | (966 | ) | (4,112 | ) | (2,671 | ) | ||||||||
| Gross profit | 12,824 | 7,354 | 22,685 | 12,088 | ||||||||||||
| Gross profit margin | 84.0 | % | 88.4 | % | 84.7 | % | 81.9 | % | ||||||||
| Service | ||||||||||||||||
| Revenue | 23,693 | 17,284 | 60,221 | 34,404 | ||||||||||||
| Cost of goods sold | (12,826 | ) | (6,225 | ) | (28,299 | ) | (12,114 | ) | ||||||||
| Gross profit | 10,868 | 11,058 | 31,922 | 22,289 | ||||||||||||
| Gross profit margin | 45.9 | % | 64.0 | % | 53.0 | % | 64.8 | % | ||||||||
| Total segments | ||||||||||||||||
| Revenue | 38,956 | 25,604 | 87,018 | 49,163 | ||||||||||||
| Cost of goods sold | (15,264 | ) | (7,192 | ) | (32,411 | ) | (14,786 | ) | ||||||||
| Gross profit | 23,692 | 18,412 | 54,607 | 34,377 | ||||||||||||
| Gross profit margin | 60.8 | % | 71.9 | % | 62.8 | % | 69.9 | % | ||||||||
| Corporate / Unallocated | ||||||||||||||||
| Revenue | 4,727 | 1,584 | 7,955 | 4,904 | ||||||||||||
| Cost of goods sold | (3,115 | ) | (1,246 | ) | (4,352 | ) | (2,671 | ) | ||||||||
| Gross profit | 1,612 | 338 | 3,602 | 2,233 | ||||||||||||
| Gross profit margin | 34.1 | % | 21.4 | % | 45.3 | % | 45.5 | % | ||||||||
| Consolidated | ||||||||||||||||
| Revenue | 43,683 | 27,188 | 94,973 | 54,067 | ||||||||||||
| Cost of goods sold | (18,379 | ) | (8,437 | ) | (36,763 | ) | (17,456 | ) | ||||||||
| Gross profit | 25,304 | 18,751 | 58,209 | 36,611 | ||||||||||||
| Gross profit margin | 57.9 | % | 69.0 | % | 61.3 | % | 67.7 | % | ||||||||
8 Olink press release ½ Fourth quarter and full year 2021 report
A reconciliation of Adjusted EBITDA to operating loss, the most directly comparable IFRS measure, is set forth below (unaudited):
Three months ended December 31, | Twelve months ended December 31, | |||||||||||
| Amounts in thousands of U.S. Dollars | 2021 | 2020 | 2021 | 2020 | ||||||||
| Operating profit/(loss) | (7,791 | ) | 4,957 | (44,652 | ) | (5,370 | ) | |||||
| Add: | ||||||||||||
| Amortization | 2,993 | 2,642 | 11,090 | 9,872 | ||||||||
| Depreciation | 1,635 | 842 | 4,713 | 2,668 | ||||||||
| EBITDA | (3,163 | ) | 8,441 | (28,849 | ) | (7,170 | ) | |||||
| Management Adjustments | (85 | ) | 2,370 | 7,777 | 3,852 | |||||||
| Share based compensation expenses | 1,888 | - | 2,524 | - | ||||||||
| Adjusted EBITDA | (1,360 | ) | 10,811 | (18,548 | ) | 11,022 | ||||||
Reconciliations of Adjusted Gross Profit to gross profit, the most directly comparable IFRS measure, are set forth below (unaudited):
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| Amounts in thousands of U.S. Dollars, unless otherwise stated | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Revenue | 43,683 | 27,188 | 94,973 | 54,067 | ||||||||||||
| Cost of goods sold | (18,379 | ) | (8,437 | ) | (36,763 | ) | (17,456 | ) | ||||||||
| Gross Profit | 25,304 | 18,751 | 58,209 | 36,611 | ||||||||||||
| Gross Profit % | 57.9 | % | 69.0 | % | 61.3 | % | 67.7 | % | ||||||||
| Less: | ||||||||||||||||
| Inventory fair value step up | - | 6 | - | 266 | ||||||||||||
| Depreciation charges | 1,100 | 825 | 2,992 | 1,540 | ||||||||||||
| Share based compensation expenses | 100 | - | 100 | - | ||||||||||||
| Adjusted Gross Profit | 26,504 | 19,582 | 61,302 | 38,417 | ||||||||||||
| Adjusted Gross Profit % | 60.7 | % | 72.0 | % | 64.5 | % | 71.1 | % | ||||||||
9 Olink press release ½ Fourth quarter and full year 2021 report
Reconciliations of Adjusted Gross Profit to gross profit, the most directly comparable IFRS measure, by segment are set forth below (unaudited):
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| Amounts in thousands of U.S. Dollars, unless otherwise stated | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Kit | ||||||||||||||||
| Revenue | 15,263 | 8,320 | 26,797 | 14,759 | ||||||||||||
| Cost of goods sold | (2,439 | ) | (966 | ) | (4,112 | ) | (2,671 | ) | ||||||||
| Gross profit | 12,824 | 7,354 | 22,685 | 12,088 | ||||||||||||
| Gross profit margin | 84.0 | % | 88.4 | % | 84.7 | % | 81.9 | % | ||||||||
| Less: | ||||||||||||||||
| Inventory fair value step up | - | 2 | - | 92 | ||||||||||||
| Depreciation charges | 114 | 124 | 431 | 258 | ||||||||||||
| Share based compensation expenses | 48 | - | 48 | - | ||||||||||||
| Adjusted Gross Profit | 12,986 | 7,479 | 23,164 | 12,437 | ||||||||||||
| Adjusted Gross Profit % | 85.1 | % | 89.9 | % | 86.4 | % | 84.3 | % | ||||||||
| Service | ||||||||||||||||
| Revenue | 23,693 | 17,284 | 60,221 | 34,404 | ||||||||||||
| Cost of goods sold | (12,826 | ) | (6,225 | ) | (28,299 | ) | (12,114 | ) | ||||||||
| Gross profit | 10,868 | 11,058 | 31,922 | 22,289 | ||||||||||||
| Gross profit margin | 45.9 | % | 64.0 | % | 53.0 | % | 64.8 | % | ||||||||
| Less: | ||||||||||||||||
| Inventory fair value step up | - | 3 | - | 174 | ||||||||||||
| Depreciation charges | 986 | 682 | 2,561 | 1,224 | ||||||||||||
| Share based compensation expenses | 52 | - | 52 | - | ||||||||||||
| Adjusted Gross Profit | 11,905 | 11,744 | 34,534 | 23,688 | ||||||||||||
| Adjusted Gross Profit % | 50.2 | % | 67.9 | % | 57.3 | % | 68.9 | % | ||||||||
| Corporate / Unallocated | ||||||||||||||||
| Revenue | 4,727 | 1,584 | 7,955 | 4,904 | ||||||||||||
| Cost of goods sold | (3,115 | ) | (1,246 | ) | (4,352 | ) | (2,671 | ) | ||||||||
| Gross profit | 1,612 | 338 | 3,602 | 2,233 | ||||||||||||
| Gross profit margin | 34.1 | % | 21.4 | % | 45.3 | % | 45.5 | % | ||||||||
| Less: | ||||||||||||||||
| Inventory fair value step up | - | - | - | - | ||||||||||||
| Depreciation charges | - | 19 | - | 58 | ||||||||||||
| Share based compensation expenses | - | - | - | - | ||||||||||||
| Adjusted Gross Profit | 1,612 | 357 | 3,602 | 2,291 | ||||||||||||
| Adjusted Gross Profit % | 34.1 | % | 22.6 | % | 45.3 | % | 46.7 | % | ||||||||
10 Olink press release ½ Fourth quarter and full year 2021 report
Exhibit 99.2
Fourth Quarter 2021 Financial Results February 14, 2021 Olink Proteomics Vision Enable understanding of real - time human biology Mission Accelerate proteomics together
Disclaimer 2 This presentation may contain certain forward - looking statements and opinions . Forward - looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future that, for example, contain wording such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future . Forward - looking statements contained in this presentation include, but are not limited to, statements about : our addressable market, market growth, future revenue, key performance indicators, expenses, capital requirements and our needs for additional financing, our commercial launch plans, our strategic plans for our business and products, market acceptance of our products, our competitive position and developments and projections relating to our competitors, domestic and foreign regulatory approvals, third - party manufacturers and suppliers, our intellectual property, the potential effects of government regulation and local, regional and national and international economic conditions and events affecting our business . We cannot assure that the forward - looking statements in this presentation will prove to be accurate . Furthermore, if our forward - looking statements prove to be inaccurate, the inaccuracy may be material . These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward - looking statements . The forward - looking statements and opinions contained in this presentation are based on our management’s beliefs and assumptions and are based upon information currently available to our management as of the date of this presentation and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information . In light of the significant uncertainties in these forward - looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all . Actual results, performance or events may differ materially from those in such statements due to, without limitation, risks generally associated with product development, including delays or challenges that may arise in the development, launch or scaling of our new products, programs or services, challenges in the commercialization of our products and services, the risk that we may not maintain our existing relationships with suppliers or enter into new ones, or that we will not realize the intended benefits from such relationships, any inability to protect our intellectual property effectively, changes in general economic conditions, in particular economic conditions in the markets on which we operate, changes affecting interest rate levels, changes affecting currency exchange rates, changes in competition levels, and changes in laws and regulations, and other risks described under the caption "Risk Factors" in our Registration Statement on Form F - 1 (File No . 333 - 257842 ) and other documents we file with the Securities and Exchange Commission from time to time . The information, opinions and forward - looking statements contained in this announcement speak only as of its date, and are subject to change without notice and we undertake no obligation to update any such forward - looking statements for any reason, except as required by law . This presentation contains estimates, projections and other information concerning our industry, our business, and the markets for our products and services . Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information . Unless otherwise expressly stated, we obtained this industry, business, market and other data from our own internal estimates and research as well as from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data and similar sources . While we believe our internal company research as to such matters is reliable and the market definitions are appropriate, neither such research nor these definitions have been verified by any independent source .
Summary 3 Executive summary • Superior disruptive proprietary technology • Exceptional go - to market strategy • Very strong commercial execution • Transparent stable business model, easy to work with • 76% YoY growth in 2021 led by rapid expansion in high - plex • >750 customers with a global footprint • Market validation of reagent kit strategy – Explore, Target, and Focus • 214 - > 416 FTEs in 2021 (150 in commercial team) Looking ahead • $35B TAM • Continued strong growth, aim for #1 market share in the emerging field of proteomics • Establish NPX as the gold standard in proteomics • Agnostic to NGS and qPCR platforms • Library expansion: 4.5k to 6k and beyond • Unlocking the mid - plex market with Signature and Flex Plex • Continue to drive PEA in clinical decision making • Continue to scale up the organization to accelerate growth
Uniquely positioned in proteomics – Highest data quality with high - plex 4 Highest Data Quality Sensitivity and specificity that maximizes the value of every data point Broad coverage with few false positives and false negatives Dynamic Range Spanning across 10 logs Sample Consumption Efficient use of valuable biobank Throughput 1000s of samples across 1000s of proteins Cost Leveraging per data point economics
Break - through science with Olink in high - impact peer reviewed literature 5
Singapore Shanghai Boston Tokyo Uppsala Proven execution, delivering on all strategic levers in 2021 76% Year on year revenue growth in FY21 (unaudited) ~35% Q4 reagent kit share of revenues ~62% Explore revenues as % of total revenues FY21 100% Coverage of the plasma proteome using Explore 3072 56k UKBB Samples delivered in 2H 2021 to the UKBB consortia ~2x Team expansion in 2021 to 416 employees $95.0 FY21 $m revenues (unaudited) Revenue guidance - $90 - 92 for FY21
Singapore Shanghai Boston Tokyo Uppsala Strong execution of externalizations with significant headroom to grow 25 Explore customer installations (NovaSeq) 28 Signature placements in Q4 2021 ~$750k Explore LTM pull - through 40 Olink Biomark core labs 1 8 6 APAC 11 5 17 EMEA 13 15 17 Americas Explore labs Biomark Core Labs Signature labs 500k Sample potential on Explore externalization ~69% Explore revenues share of Q4 revenues ~40% Explore Kit revenues share of Q4 Explore revenues
8 Proprietary PEA technology Discovery to Dx Proximity Extension Assay (PEA) Solving fundamental challenges in proteomics $35bn TAM opportunity A market leader Strong commercial execution A market leader with a differentiated technology platform enabling customers from Discovery to Dx
Actionable science driving rapid customer adoption and growth 9 Evolution of publications based on PEA (as of December 2021) Number of publications (accumulated) 1 54 123 223 349 513 750+ FY17 FY16 FY20 FY19 FY18 FY21 Customer account acquisition Total number of accounts served since inception 116 216 329 469 637 FY21 FY20 FY18 FY16 750+ FY17 FY19 1 PEA publication count exceeded 800 as of Feb 11, 2022.
Fourth quarter financial results (unaudited) 10 1. Adjusted EBITDA is a non - IFRS measure and defined as profit for the year before accounting for finance income, finance costs, tax, management adjustments, depreciation, and amortization of acquisition intangibles. Refer to Appendix for non - IFRS reconcil iation. 2. Adjusted Gross Profit is a non - IFRS measure and defined as revenue less cost of goods sold, which is then adjusted to remove the impact of depreciation and the impact of inventory fair value step up associated with the purchase accounting process that is r ecorded within cost of goods sold. 4Q 2020 4Q 2021 Total Revenue $ 27.2 $ 43.7 Total Adjusted EBITDA 1 $ 10.8 ($ 1.4) Adjusted Gross Profit Percentage 2 72.0 % 60.7 % 54% 35% 11% Service Kit Other Fourth quarter 2021 Segment breakdown % of total Headcount development #Headcount Fourth quarter 2021 – Financial highlights USDM 70 71 106 135 214 416 FY16 FY17 FY19 FY18 FY20 FY21
Fourth quarter 2021 revenue (unaudited) 11 1. RoW includes Japan and RoW . 2. EMEA includes Sweden. $43.7 million in revenue for 4Q 2021, representing 61% y/y growth on a reported basis 11 Revenue by segment USD’000 Revenue by geography USD’000 8,320 17,284 1,584 15,263 23,693 4,727 Other Kit Service +83% +37% +198% Q4’20 Q4’21 14,315 11,555 1,318 20,232 20,110 3,341 China & RoW (1) Americas EMEA (2) +41% +74% +153% Q4’20 Q4’21 Our Explore offering accounted for 69% of revenue in the fourth quarter of 2021, with service segment and kit segment growth 37% and 83%, respectively, year over year. Kit revenues primarily consist of Explore kits.
Fourth quarter 2021 Adjusted Gross Profit Percentage (unaudited) 12 $26.5 million in adjusted gross profit for 4Q 2021, compared to $19.6 million in 4Q 2020 12 Adjusted gross profit percentage decreased to 60.7% for the fourth quarter, reflecting investments into our service to suppor t continued revenue growth and the delivery of UKBB samples Adjusted Gross Profit Percentage by segment 1 USD’000 85% Kit 68% Other Service 90% 50% 23% 34% Q4’20 Q4’21 1. Adjusted Gross Profit is a non - IFRS measure and defined as revenue less cost of goods sold, which is then adjusted to remove the impact of depreciation and the impact of inventory fair value step up associated with the purchase accounting process that is r ecorded within cost of goods sold.
Fourth quarter 2021 Operating Expenses (unaudited) 13 $33.1 million in total operating expenses for 4Q 2021, compared to $13.8 million in 4Q 2020 1 13 Olink is investing according to its strategic plan, hiring in the commercial and R&D teams Selling Expenses USD’000 4,276 11,950 Q4’20 Q4’21 Research and Development Expenses USD’000 2,209 8,722 Q4’20 Q4’21 General and Administrative Expenses USD’000 7,893 11,826 Q4’21 Q4’20 Q4’20 Q4’21 1. Total operating expenses includes Other operating income/(loss) .
2022 Guidance We expect revenue for the full year 2022 to be in the range of $138M and $145M, representing 45% to 53% growth over 2021. 14 We expect strong sustainable growth, and continued investment into our organization 2022 Revenue Guidance USDM 46 54 95 138 - 145 FY19 FY20 FY21 FY22 +17% +76% ~+45 - 53%