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 May 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 ¨
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): ¨
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): ¨
On May 12, 2022, Olink Holding AB (publ) issued a news release announcing unaudited results for the three months ended March 31, 2022, which are further described in the Company’s unaudited Interim Report for the Quarter Ended March 31, 2022 and Presentation dated May 12, 2022, copies of which are furnished as Exhibit 99.1, 99.2 and 99.3, respectively, to this Form 6-K.
| Exhibit No. | Description |
| 99.1 | Olink Holding AB (publ) news release dated May 12, 2022. |
| 99.2 | Olink Holding AB (publ) unaudited Interim Report for the Quarter Ended March 31, 2022. |
| 99.3 | Olink Holding AB (publ) Presentation, May 12, 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: May 12, 2022
Exhibit 99.1
Olink reports first quarter 2022 financial results
UPPSALA, Sweden, May 12, 2022 (GLOBE NEWSWIRE) -- Olink Holding AB (publ) (“Olink”) (Nasdaq: OLK) today announced its unaudited financial results for the first quarter of 2022.
Highlights
| · | First quarter 2022 revenue totaled $22.7 million, representing year over year growth of 66% on a reported basis and 72% on a constant currency adjusted like-for-like basis | |
| · | First quarter cumulative Explore customer installations reached 27, with 9 additional Signature Q100 placements | |
| · | Explore revenue of $15.7 million accounted for 69% of total first quarter revenue, with Explore Kit revenue totaling $2.1 million, or 13% of total Explore revenue | |
| · | First quarter kits revenue and analysis services revenue represented 18% and 73% of total revenue, respectively | |
| · | First quarter 2022 adjusted EBITDA was ($9.1) million, with a net loss of ($12.2) million; compared to First quarter 2021 adjusted EBITDA of ($3.7) million and net loss of ($14.3) million | |
| · | Maintained full year 2022 guidance, with revenue expected to be in the range of $138 million to $145 million, representing growth of 45% - 53% |
“Olink continued its strong performance in the first quarter of 2022, building on the considerable progress achieved last year,” said Jon Heimer, CEO of Olink. “We are well-positioned to achieve our goals, and to drive continued robust growth this year, next year, and beyond."
First quarter financial results
“Olink’s strategy of controlled investment and solid execution was readily apparent during the first quarter,” said Oskar Hjelm, CFO of Olink. "We believe our combination of disciplined financial management, strong growth prospects, and best-in-class product platform, will drive long term value.”
Total revenue for the first quarter of 2022 was $22.7 million, as compared to $13.6 million for the first quarter of 2021, growing 66% year over year.
First quarter 2022 kits revenue of $4.0 million represented 18% of our total revenue, compared to 21% for the first quarter of 2021; and grew 41% year over year primarily as a result of continued Explore growth, but also increased Target revenue.
Analysis services revenue for the first quarter of 2022 was $16.6 million, as compared to $9.6 million for the first quarter of 2021, representing 74% growth.
Other revenue was $2.1 million for the first quarter of 2022, as compared to $1.2 million for the first quarter of 2021. Other revenue growth was driven primarily by Signature Q100 placements.
By geography, revenue during the first quarter of 2022 was $9.7 million in Americas, $10.1 million in EMEA (including Sweden), and $2.8 million in China and RoW (including Japan).
1 Olink press release½First quarter 2022 report
Adjusted EBITDA was ($9.1) million for the first quarter of 2022, as compared to ($3.7) million for the first quarter of 2021.
Adjusted gross profit was $14.2 million in the first quarter of 2022, as compared to $9.2 million in the first quarter of 2021; and gross profit was $13.3 million in the first quarter of 2022, as compared to $8.6 million in the first quarter of 2021.
By segment, adjusted gross profit margin for kits was 89% for the first quarter of 2022, as compared to 82% for the first quarter of 2021; and gross profit margin for kits was 85% for the first quarter of 2022, as compared to 79% for the first quarter of 2021.
First quarter 2022 adjusted gross profit margin for analysis services was 58% as compared to 64% in the first quarter of 2021; and gross profit margin for analysis services was 54% as compared to 59% in the first quarter of 2021. The decline in analysis services margin was driven primarily by the continued expansion of Olink’s lab capacity and associated increased personnel costs.
First quarter 2022 gross profit margin and adjusted gross profit margin for Other was 47%, as compared to 62% for the first quarter of 2021.
Total operating expenses for the first quarter of 2022 were $29.5 million, as compared to $22.4 million for the first quarter of 2021. 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.
Net loss for the first quarter of 2022 was ($12.2) million, as compared to a net loss of ($14.3) million for the first quarter of 2021. Net loss per share for the first quarter of 2022 was ($0.10) based on a weighted average number of outstanding shares of 119,010,097 as compared to a net loss per share of ($0.48) in the first quarter of 2021 based on a weighted average number of outstanding shares of 38,926,170.
2022 guidance
Olink maintains its full year 2022 revenue guidance range of $138 million to $145 million and continues to expect revenue will be weighted toward the second half of the year and fourth quarter specifically.
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: 5650306. 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, adjusted gross profit margin and adjusted gross profit margin by segment 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.
2 Olink press release½First quarter 2022 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 caption "Risk Factors" in our Form 20-F (Commission file number 001-40277) 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 for 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.
Investor 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
3 Olink press release½First quarter 2022 report
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
| Three months ended March 31, | ||||||||||||
| Amounts in thousands of US Dollars | Note | 2022 | 2021 | |||||||||
| Revenue | 4 | $ | 22,677 | $ | 13,628 | |||||||
| Cost of goods sold | (9,360 | ) | (4,996 | ) | ||||||||
| Gross profit | 13,317 | 8,632 | ||||||||||
| Selling expenses | (9,465 | ) | (5,704 | ) | ||||||||
| Administrative expenses | (14,399 | ) | (12,411 | ) | ||||||||
| Research and development expenses | (5,985 | ) | (4,219 | ) | ||||||||
| Other operating income/(loss) | 328 | (105 | ) | |||||||||
| Operating loss | $ | (16,204 | ) | $ | (13,807 | ) | ||||||
| Interest, net | (130 | ) | (1,876 | ) | ||||||||
| Foreign exchange, net | 1,765 | 306 | ||||||||||
| Other financial expenses | - | (1,641 | ) | |||||||||
| Loss before tax | (14,569 | ) | (17,018 | ) | ||||||||
| Income tax benefit | 5 | 2,399 | 2,723 | |||||||||
Net loss for the period (Attributable to shareholders of the Parent) | $ | (12,170 | ) | $ | (14,295 | ) | ||||||
| Basic and diluted loss per share | 9 | $ | (0.10 | ) | $ | (0.48 | ) | |||||
| Other comprehensive loss: | ||||||||||||
| Items that may be reclassified to profit or loss: | ||||||||||||
| Exchange differences from translation of foreign operations | (11,292 | ) | (20,553 | ) | ||||||||
| Other comprehensive loss for the period, net of tax | (11,292 | ) | (20,553 | ) | ||||||||
| Total comprehensive loss for the period, net of tax | (23,462 | ) | (34,848 | ) | ||||||||
Total comprehensive loss for the period (Attributable to shareholder of the Parent) | $ | (23,462 | ) | $ | (34,848 | ) | ||||||
4 Olink press release½First quarter 2022 report
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
| Amounts in thousands of US Dollars | Note | As of March 31, 2022 | As of December 31, 2021 | |||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Intangible assets | 298,134 | 308,124 | ||||||||||
| Property, plant and equipment | 13,418 | 12,696 | ||||||||||
| Right-of-use asset | 7,792 | 8,778 | ||||||||||
| Deferred tax assets | 5 | 11,783 | 9,091 | |||||||||
| Other long-term receivables | 421 | 422 | ||||||||||
| Total non-current assets | $ | 331,548 | $ | 339,111 | ||||||||
| Current assets | ||||||||||||
| Inventories | 32,048 | 28,940 | ||||||||||
| Trade receivables | 23,652 | 42,061 | ||||||||||
| Other receivables | 5,034 | 4,094 | ||||||||||
| Prepaid expenses and accrued income | 3,816 | 7,476 | ||||||||||
| Cash at bank and in hand | 120,211 | 118,096 | ||||||||||
| Total current assets | $ | 184,761 | $ | 200,667 | ||||||||
| TOTAL ASSETS | $ | 516,309 | $ | 539,778 | ||||||||
| EQUITY | ||||||||||||
| Share capital | 6 | 30,988 | 30,964 | |||||||||
| Other contributed capital | 6 | 508,324 | 506,008 | |||||||||
| Reserves | (9,591 | ) | 1,701 | |||||||||
| Accumulated losses | (75,167 | ) | (62,997 | ) | ||||||||
| Total equity attributable to shareholders of the Parent | $ | 454,554 | $ | 475,676 | ||||||||
| LIABILITIES | ||||||||||||
| Non-current liabilities | ||||||||||||
| Interest-bearing loans and borrowings | 7 | 5,182 | 5,427 | |||||||||
| Deferred tax liabilities | 5 | 26,897 | 27,092 | |||||||||
| Total non-current liabilities | $ | 32,079 | $ | 32,519 | ||||||||
| Current liabilities | ||||||||||||
| Interest-bearing loans and borrowings | 7 | 2,105 | 2,952 | |||||||||
| Accounts payable | 10,711 | 8,668 | ||||||||||
| Current tax liabilities | 25 | 314 | ||||||||||
| Other current liabilities | 10 | 16,835 | 19,649 | |||||||||
| Total current liabilities | $ | 29,676 | $ | 31,583 | ||||||||
| Total liabilities | $ | 61,755 | $ | 64,102 | ||||||||
| TOTAL EQUITY AND LIABILITIES | $ | 516,309 | $ | 539,778 | ||||||||
5 Olink press release½First quarter 2022 report
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
| Three months ended March 31, | ||||||||||||
| Amounts in thousands of US Dollars | Note | 2022 | 2021 | |||||||||
| Operating activities | ||||||||||||
| Loss before tax | $ | (14,569 | ) | $ | (17,018 | ) | ||||||
| Adjustments reconciling loss before tax to operating cash flows: | ||||||||||||
| Depreciation and amortization | 4,436 | 3,663 | ||||||||||
| Net finance expense/income | (1,635 | ) | 3,211 | |||||||||
| Loss on sale of assets | 464 | - | ||||||||||
| Share based payment expense | 6 | 2,179 | - | |||||||||
| Other | (56 | ) | - | |||||||||
| Changes in working capital: | ||||||||||||
| (Increase)/Decrease in inventories | (3,702 | ) | (1,402 | ) | ||||||||
| (Increase)/Decrease in accounts receivable | 17,662 | 14,068 | ||||||||||
| (Increase)/Decrease in other current receivables | 3,182 | (2,185 | ) | |||||||||
| (Decrease)/Increase in trade payables | 2,098 | 3,723 | ||||||||||
| (Decrease)/Increase in other current liabilities | (2,408 | ) | (730 | ) | ||||||||
| Interest received | 1 | - | ||||||||||
| Interest paid | (131 | ) | (1,976 | ) | ||||||||
| Tax received/(paid) | (985 | ) | 33 | |||||||||
| Cash flow used in operating activities | $ | 6,536 | $ | 1,387 | ||||||||
| Investing activities | ||||||||||||
| Purchase of intangible assets | (327 | ) | - | |||||||||
| Purchase of property, plant and equipment | (2,090 | ) | (948 | ) | ||||||||
| Cash flow used in investing activities | $ | (2,417 | ) | $ | (948 | ) | ||||||
| Financing activities | ||||||||||||
| Proceeds from issue of share capital | 6 | 24 | 264,706 | |||||||||
| Share issue costs | 6 | - | (19,288 | ) | ||||||||
| Proceeds from interest-bearing loans and borrowings | - | 2,400 | ||||||||||
| Repayment of interest-bearing loans and borrowings | - | (65,627 | ) | |||||||||
| Payment of principal portion of lease liability | (748 | ) | (534 | ) | ||||||||
| Cash flow from financing activities | $ | (724 | ) | $ | 181,657 | |||||||
| Net cash flow during the period | 3,395 | 182,096 | ||||||||||
| Cash at bank and in hand at the beginning of the period | 118,096 | 8,655 | ||||||||||
| Net foreign exchange difference | (1,280 | ) | 667 | |||||||||
| Cash at bank and in hand at the end of the period | $ | 120,211 | $ | 191,418 | ||||||||
6 Olink press release½First quarter 2022 report
Key financial information by segment (unaudited):
| Three months ended March 31, | ||||||||
| Amounts in thousands of US Dollars unless otherwise stated | 2022 | 2021 | ||||||
| Kit | ||||||||
| Revenue | 3,994 | 2,841 | ||||||
| Cost of goods sold | (603 | ) | (585 | ) | ||||
| Gross profit | $ | 3,391 | $ | 2,256 | ||||
| Gross profit margin | 84.9 | % | 79.4 | % | ||||
| Service | ||||||||
| Revenue | 16,607 | 9,558 | ||||||
| Cost of goods sold | (7,663 | ) | (3,942 | ) | ||||
| Gross profit | $ | 8,944 | $ | 5,616 | ||||
| Gross profit margin | 53.9 | % | 58.8 | % | ||||
| Total segments | ||||||||
| Revenue | 20,601 | 12,399 | ||||||
| Cost of goods sold | (8,266 | ) | (4,527 | ) | ||||
| Gross profit | $ | 12,335 | $ | 7,872 | ||||
| Gross profit margin | 59.9 | % | 63.5 | % | ||||
| Corporate / Unallocated | ||||||||
| Revenue | 2,076 | 1,229 | ||||||
| Cost of goods sold | (1,095 | ) | (469 | ) | ||||
| Gross profit | $ | 981 | $ | 760 | ||||
| Gross profit margin | 47.3 | % | 61.8 | % | ||||
| Consolidated | ||||||||
| Revenue | 22,677 | 13,628 | ||||||
| Cost of goods sold | (9,360 | ) | (4,996 | ) | ||||
| Gross profit | $ | 13,317 | $ | 8,632 | ||||
| Gross profit margin | 58.7 | % | 63.3 | % | ||||
7 Olink press release½First quarter 2022 report
Reconciliations of adjusted gross profit to gross profit, the most directly comparable IFRS measure, by segment (unaudited):
| Three months ended March 31, | ||||||||
| Amounts in thousands of US Dollars unless otherwise stated | 2022 | 2021 | ||||||
| Kit | ||||||||
| Revenue | 3,994 | 2,841 | ||||||
| Cost of goods sold | (603 | ) | (585 | ) | ||||
| Gross profit | $ | 3,391 | $ | 2,256 | ||||
| Gross profit margin | 84.9 | % | 79.4 | % | ||||
| Less: | ||||||||
| Depreciation charges | 132 | 86 | ||||||
| Share based compensation expenses | 36 | - | ||||||
| Adjusted Gross Profit | $ | 3,559 | $ | 2,342 | ||||
| Adjusted Gross Profit % | 89.1 | % | 82.4 | % | ||||
| Service | ||||||||
| Revenue | 16,607 | 9,558 | ||||||
| Cost of goods sold | (7,663 | ) | (3,942 | ) | ||||
| Gross profit | $ | 8,944 | $ | 5,616 | ||||
| Gross profit margin | 53.9 | % | 58.8 | % | ||||
| Less: | ||||||||
| Depreciation charges | 693 | 493 | ||||||
| Share based compensation expenses | 30 | - | ||||||
| Adjusted Gross Profit | $ | 9,667 | $ | 6,109 | ||||
| Adjusted Gross Profit % | 58.2 | % | 63.9 | % | ||||
| Corporate / Unallocated | ||||||||
| Revenue | 2,076 | 1,229 | ||||||
| Cost of goods sold | (1,095 | ) | (469 | ) | ||||
| Gross profit | $ | 981 | $ | 760 | ||||
| Gross profit margin | 47.3 | % | 61.8 | % | ||||
| Less: | ||||||||
| Depreciation charges | - | - | ||||||
| Share based compensation expenses | - | - | ||||||
| Adjusted Gross Profit | $ | 981 | $ | 760 | ||||
| Adjusted Gross Profit % | 47.3 | % | 61.8 | % | ||||
8 Olink press release½First quarter 2022 report
Reconciliation of adjusted EBITDA to operating loss, the most directly comparable IFRS measure (unaudited):
| Three months ended March 31, |
||||||||
| Amounts in thousands of US Dollars | 2022 | 2021 | ||||||
| Operating profit/(loss) | (16,204 | ) | (13,807 | ) | ||||
| Add: | ||||||||
| Amortization | 2,974 | 2,720 | ||||||
| Depreciation | 1,462 | 943 | ||||||
| EBITDA | (11,768 | ) | (10,144 | ) | ||||
| Management adjustments | 444 | 6,422 | ||||||
| Share based compensation | 2,198 | - | ||||||
| Adjusted EBITDA | $ | (9,126 | ) | $ | (3,722 | ) | ||
Reconciliation of adjusted gross profit to gross profit, the most directly comparable IFRS measure (unaudited):
| Three months ended March 31, | ||||||||
| Amounts in thousands of US Dollars unless otherwise stated | 2022 | 2021 | ||||||
| Revenue | 22,677 | 13,628 | ||||||
| Cost of goods sold | (9,360 | ) | (4,996 | ) | ||||
| Gross Profit | $ | 13,317 | $ | 8,632 | ||||
| Gross Profit % | 58.7 | % | 63.3 | % | ||||
| Less: | ||||||||
| Depreciation charges | 824 | 579 | ||||||
| Share based compensation expenses | 66 | - | ||||||
| Adjusted Gross Profit | $ | 14,207 | $ | 9,211 | ||||
| Adjusted Gross Profit % | 62.6 | % | 67.6 | % | ||||
9 Olink press release½First quarter 2022 report
Exhibit 99.2
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
| Three months ended March 31, | ||||||||||||
| Amounts in thousands of US Dollars | Note | 2022 | 2021 | |||||||||
| Revenue | 4 | $ | 22,677 | $ | 13,628 | |||||||
| Cost of goods sold | (9,360 | ) | (4,996 | ) | ||||||||
| Gross profit | 13,317 | 8,632 | ||||||||||
| Selling expenses | (9,465 | ) | (5,704 | ) | ||||||||
| Administrative expenses | (14,399 | ) | (12,411 | ) | ||||||||
| Research and development expenses | (5,985 | ) | (4,219 | ) | ||||||||
| Other operating income/(loss) | 328 | (105 | ) | |||||||||
| Operating loss | $ | (16,204 | ) | $ | (13,807 | ) | ||||||
| Interest, net | (130 | ) | (1,876 | ) | ||||||||
| Foreign exchange, net | 1,765 | 306 | ||||||||||
| Other financial expenses | - | (1,641 | ) | |||||||||
| Loss before tax | (14,569 | ) | (17,018 | ) | ||||||||
| Income tax benefit | 5 | 2,399 | 2,723 | |||||||||
| Net loss for the period (Attributable to shareholders of the Parent) | $ | (12,170 | ) | $ | (14,295 | ) | ||||||
| Basic and diluted loss per share | 9 | $ | (0.10 | ) | $ | (0.48 | ) | |||||
| Other comprehensive loss: | ||||||||||||
| Items that may be reclassified to profit or loss: | ||||||||||||
| Exchange differences from translation of foreign operations | (11,292 | ) | (20,553 | ) | ||||||||
| Other comprehensive loss for the period, net of tax | (11,292 | ) | (20,553 | ) | ||||||||
| Total comprehensive loss for the period, net of tax | (23,462 | ) | (34,848 | ) | ||||||||
| Total comprehensive loss for the period (Attributable to shareholder of the Parent) | $ | (23,462 | ) | $ | (34,848 | ) | ||||||
Exhibit 99.2
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
| Amounts in thousands of US Dollars | Note | As of March 31, 2022 | As of December 31, 2021 | |||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Intangible assets | 298,134 | 308,124 | ||||||||||
| Property, plant and equipment | 13,418 | 12,696 | ||||||||||
| Right-of-use asset | 7,792 | 8,778 | ||||||||||
| Deferred tax assets | 5 | 11,783 | 9,091 | |||||||||
| Other long-term receivables | 421 | 422 | ||||||||||
| Total non-current assets | $ | 331,548 | $ | 339,111 | ||||||||
| Current assets | ||||||||||||
| Inventories | 32,048 | 28,940 | ||||||||||
| Trade receivables | 23,652 | 42,061 | ||||||||||
| Other receivables | 5,034 | 4,094 | ||||||||||
| Prepaid expenses and accrued income | 3,816 | 7,476 | ||||||||||
| Cash at bank and in hand | 120,211 | 118,096 | ||||||||||
| Total current assets | $ | 184,761 | $ | 200,667 | ||||||||
| TOTAL ASSETS | $ | 516,309 | $ | 539,778 | ||||||||
| EQUITY | ||||||||||||
| Share capital | 6 | 30,988 | 30,964 | |||||||||
| Other contributed capital | 6 | 508,324 | 506,008 | |||||||||
| Reserves | (9,591 | ) | 1,701 | |||||||||
| Accumulated losses | (75,167 | ) | (62,997 | ) | ||||||||
| Total equity attributable to shareholders of the Parent | $ | 454,554 | $ | 475,676 | ||||||||
| LIABILITIES | ||||||||||||
| Non-current liabilities | ||||||||||||
| Interest-bearing loans and borrowings | 7 | 5,182 | 5,427 | |||||||||
| Deferred tax liabilities | 5 | 26,897 | 27,092 | |||||||||
| Total non-current liabilities | $ | 32,079 | $ | 32,519 | ||||||||
| Current liabilities | ||||||||||||
| Interest-bearing loans and borrowings | 7 | 2,105 | 2,952 | |||||||||
| Accounts payable | 10,711 | 8,668 | ||||||||||
| Current tax liabilities | 25 | 314 | ||||||||||
| Other current liabilities | 10 | 16,835 | 19,649 | |||||||||
| Total current liabilities | $ | 29,676 | $ | 31,583 | ||||||||
| Total liabilities | $ | 61,755 | $ | 64,102 | ||||||||
| TOTAL EQUITY AND LIABILITIES | $ | 516,309 | $ | 539,778 | ||||||||
Exhibit 99.2
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY FOR THE THREE
MONTHS ENDED MARCH 31, 2022 AND MARCH 31, 2021 (UNAUDITED)
| Amounts in thousands of U.S. Dollars | Notes | Share capital | Other contributed capital | Reserves | Accumulated loss | Total equity | ||||||||||||||||||
| As of December 31, 2021 | $ | 30,964 | $ | 506,008 | $ | 1,701 | $ | (62,997 | ) | $ | 475,676 | |||||||||||||
| Net loss for the period | - | - | - | (12,170 | ) | (12,170 | ) | |||||||||||||||||
| Other comprehensive income for the period | - | - | (11,292 | ) | - | (11,292 | ) | |||||||||||||||||
| Total comprehensive loss for the period | - | - | (11,292 | ) | (12,170 | ) | (23,462 | ) | ||||||||||||||||
| Transactions with shareholders in their role as owners | ||||||||||||||||||||||||
| New share issue, net | 6 | 24 | - | - | - | 24 | ||||||||||||||||||
| Share based renumeration | 6 | - | 2,316 | - | - | 2,316 | ||||||||||||||||||
| As of March 31, 2022 | $ | 30,988 | $ | 508,324 | $ | (9,591 | ) | $ | (75,167 | ) | $ | 454,554 | ||||||||||||
| Notes | Share capital | Other contributed capital | Reserves | Accumulated loss | Total equity | |||||||||||||||||||
| As of December 31, 2020 | $ | 27,224 | $ | 257,774 | $ | 39,360 | $ | (24,658 | ) | $ | 299,700 | |||||||||||||
| Net loss for the period | (14,295 | ) | (14,295 | ) | ||||||||||||||||||||
| Other comprehensive income for the period | - | - | (20,553 | ) | - | (20,553 | ) | |||||||||||||||||
| Total comprehensive loss for the period | - | - | (20,553 | ) | (14,295 | ) | (34,848 | ) | ||||||||||||||||
| Transactions with shareholders in their role as owners | ||||||||||||||||||||||||
| New share issue, net | 6 | 3,740 | 241,678 | - | - | 245,418 | ||||||||||||||||||
| As of March 31, 2021 | $ | 30,964 | $ | 499,452 | $ | 18,807 | $ | (38,953 | ) | $ | 510,270 | |||||||||||||
Exhibit 99.2
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
| Three months ended
March 31, | ||||||||||||
| Amounts in thousands of US Dollars | Note | 2022 | 2021 | |||||||||
| Operating activities | ||||||||||||
| Loss before tax | $ | (14,569 | ) | $ | (17,018 | ) | ||||||
| Adjustments reconciling loss before tax to operating cash flows: | ||||||||||||
| Depreciation and amortization | 4,436 | 3,663 | ||||||||||
| Net finance income/expense | (1,635 | ) | 3,211 | |||||||||
| Loss on sale of assets | 464 | - | ||||||||||
| Share based payment expense | 6 | 2,179 | - | |||||||||
| Other | (56 | ) | - | |||||||||
| Changes in working capital: | ||||||||||||
| (Increase)/Decrease in inventories | (3,702 | ) | (1,402 | ) | ||||||||
| (Increase)/Decrease in accounts receivable | 17,662 | 14,068 | ||||||||||
| (Increase)/Decrease in other current receivables | 3,182 | (2,185 | ) | |||||||||
| (Decrease)/Increase in trade payables | 2,098 | 3,723 | ||||||||||
| (Decrease)/Increase in other current liabilities | (2,408 | ) | (730 | ) | ||||||||
| Interest received | 1 | - | ||||||||||
| Interest paid | (131 | ) | (1,976 | ) | ||||||||
| Tax (paid)/received | (985 | ) | 33 | |||||||||
| Cash flow used in operating activities | $ | 6,536 | $ | 1,387 | ||||||||
| Investing activities | ||||||||||||
| Purchase of intangible assets | (327 | ) | - | |||||||||
| Purchase of property, plant and equipment | (2,090 | ) | (948 | ) | ||||||||
| Cash flow used in investing activities | $ | (2,417 | ) | $ | (948 | ) | ||||||
| Financing activities | ||||||||||||
| Proceeds from issue of share capital | 6 | 24 | 264,706 | |||||||||
| Share issue costs | 6 | - | (19,288 | ) | ||||||||
| Proceeds from interest-bearing loans and borrowings | - | 2,400 | ||||||||||
| Repayment of interest-bearing loans and borrowings | - | (65,627 | ) | |||||||||
| Payment of principal portion of lease liability | (748 | ) | (534 | ) | ||||||||
| Cash flow from financing activities | $ | (724 | ) | $ | 181,657 | |||||||
| Net cash flow during the period | 3,395 | 182,096 | ||||||||||
| Cash at bank and in hand at the beginning of the period | 118,096 | 8,655 | ||||||||||
| Net foreign exchange difference | (1,280 | ) | 667 | |||||||||
| Cash at bank and in hand at the end of the period | $ | 120,211 | $ | 191,418 | ||||||||
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
Exhibit 99.2
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. General information
On January 27, 2021, Knilo HoldCo AB was registered as a Swedish public limited company and renamed as Olink Holding AB (publ) (the “Company). The Company has ten wholly owned subsidiaries. The Company and its subsidiaries develop, produce, market and sell biotechnological products and services along with thereof related activities. The Company is located at Uppsala Science Park, Dag Hammarskjölds väg 54A, SE-752 37 UPPSALA, Sweden.
On March 29, 2021, the Company completed its initial public offering (the “Offering”) in the United States. The Company’s American Depositary Shares (“ADSs”) were approved for listing on The Nasdaq Global Market (“Nasdaq”) under the trading ticker symbol “OLK”. Trading on Nasdaq commenced at market open on March 25, 2021. The ultimate parent of the Company is Summa Equity Holding AB, Stockholm, Sweden.
The Company’s interim condensed consolidated financial statements were authorized for issue by the Board of Directors on May 11, 2022.
2. Basis of preparation and summary of significant accounting policies
2.1. Basis of preparation
The interim condensed consolidated financial statements for the three months ended March 31, 2022 and 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting. The Company has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast doubt over this assumption and that the Company has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company’s annual report filed on Form 20-F as of December 31, 2021.
2.2. New standards, interpretations and amendments
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2021, except for the adoption of new standards effective as of January 1, 2022. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
Several amendments apply for the first time in 2022: Reference to the Conceptual Framework – amendments to IFRS 3, Property, Plant and Equipment - Proceeds before Intended Use– amendments to IAS 16, Onerous Contracts - Cost of Fulfilling a Contract - amendments to IAS 37 and Annual Improvements to IFRS Standards 2018-2020– amendments to IFRS 1, IFRS 9, IFRS 16, and IFRS 41. None of these amendments have a material impact on the interim condensed consolidated financial statements of the Company.
Exhibit 99.2
3. Significant accounting estimates and judgments
In preparing these interim condensed consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation and uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31, 2021.
The COVID-19 pandemic has adversely affected, and we expect will continue to adversely affect, elements of our business. COVID-19 has primarily disrupted the customer end of the supply chain, with our customers’ labs operating at reduced capacity for extended portions of our growth rate for 2021, in particular as customers have had issues accessing their labs. We have not seen any material cancellations in our pipeline; however, there have been delays as customers are pushing projects into the future. We are continuing to closely monitor how the pandemic and related response measures are affecting our business. Our production and manufacturing facilities are located in Uppsala, Sweden and Watertown, Massachusetts and we have not to date experienced any material disruptions to our production or supply of goods. We increased our inventory level in 2020 and 2021 in order to operate with a higher level of inventory than we have done historically. Although we have seen a reduction in demand due to the COVID-19 pandemic, we have not observed any significant changes in our underlying customer base, and we have been and will continue to serve our customers, even at reduced levels, until their activities return to normal. The gradual recovery of revenue we have seen compared with previous levels reflects the underlying factors affecting demand, including the easing of lockdown restrictions and the partial or full reopening of academic and biopharmaceutical research laboratories around the world. At March 31, 2022 we concluded there was no evidence of material changes to recoverability risk of business assets, including deferred tax assets and trade receivables.
4. Segment and revenue information
4.1. Description of segments and principal activities
Operating segments are reported based on the financial information provided to the Chief Executive Officer (“CEO”). The CEO is identified as the Chief Operating Decision Maker (“CODM”) of the Company. The CODM monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on revenue growth with less emphasis on profit or loss due to the early-stage development of the Company. Profit or loss is measured consistently with net profit or net loss in the Interim Condensed Consolidated Financial Statements. The CODM monitors the operating segments based on revenue growth and gross profit and reports its results under two segments: Kit and Service. All other operating segments have been aggregated and are included within the Corporate / Unallocated heading.
The Company’s research and development activities, sales & administrative activities, financing (including finance costs, finance income and other income) and income taxes are managed on a corporate basis and are not allocated to operating segments. Such expenditure is included in corporate/ unallocated.
Exhibit 99.2
4.2. Revenue and Gross Profit
The following tables presents the Company’s key financial information by segment:
Key financial information by segment (unaudited):
Three
months ended | ||||||||
| Amounts in thousands of US Dollars unless otherwise stated | 2022 | 2021 | ||||||
| Kit | ||||||||
| Revenue | 3,994 | 2,841 | ||||||
| Cost of goods sold | (603 | ) | (585 | ) | ||||
| Gross profit | $ | 3,391 | $ | 2,256 | ||||
| Gross profit margin | 84.9 | % | 79.4 | % | ||||
| Service | ||||||||
| Revenue | 16,607 | 9,558 | ||||||
| Cost of goods sold | (7,663 | ) | (3,942 | ) | ||||
| Gross profit | $ | 8,944 | $ | 5,616 | ||||
| Gross profit margin | 53.9 | % | 58.8 | % | ||||
| Total segments | ||||||||
| Revenue | 20,601 | 12,399 | ||||||
| Cost of goods sold | (8,266 | ) | (4,527 | ) | ||||
| Gross profit | $ | 12,335 | $ | 7,872 | ||||
| Gross profit margin | 59.9 | % | 63.5 | % | ||||
| Corporate / Unallocated | ||||||||
| Revenue | 2,076 | 1,229 | ||||||
| Cost of goods sold | (1,095 | ) | (469 | ) | ||||
| Gross profit | $ | 981 | $ | 760 | ||||
| Gross profit margin | 47.3 | % | 61.8 | % | ||||
| Consolidated | ||||||||
| Revenue | 22,677 | 13,628 | ||||||
| Cost of goods sold | (9,360 | ) | (4,996 | ) | ||||
| Gross profit | $ | 13,317 | $ | 8,632 | ||||
| Gross profit margin | 58.7 | % | 63.3 | % | ||||
Exhibit 99.2
4.3. Disaggregation of revenue from contracts with customers
The Company derives revenue primarily from the sales of own-produced finished goods and services in the following geographical regions:
| For the three months ended March 31, 2022 | Kit | Service | Corporate / Unallocated | Total | ||||||||||||
| Sweden | $ | 113 | $ | 265 | $ | 172 | $ | 550 | ||||||||
| Americas | 2,359 | 6,589 | 758 | 9,706 | ||||||||||||
| EMEA (excluding Sweden) | 877 | 7,828 | 872 | 9,577 | ||||||||||||
| China | 504 | 21 | 176 | 701 | ||||||||||||
| Japan | 63 | 1,402 | 29 | 1,494 | ||||||||||||
| Rest of world | 78 | 502 | 69 | 649 | ||||||||||||
| $ | 3,994 | $ | 16,607 | $ | 2,076 | $ | 22,677 | |||||||||
| For the three months ended March 31, 2021 | Kit | Service | Corporate / Unallocated | Total | ||||||||||||
| Sweden | $ | 327 | $ | 537 | $ | 453 | $ | 1,317 | ||||||||
| Americas | 1,849 | 5,325 | 218 | 7,392 | ||||||||||||
| EMEA (excluding Sweden) | 453 | 3,157 | 348 | 3,958 | ||||||||||||
| China | 161 | - | 64 | 225 | ||||||||||||
| Japan | 37 | 510 | 30 | 577 | ||||||||||||
| Rest of world | 14 | 29 | 116 | 159 | ||||||||||||
| $ | 2,841 | $ | 9,558 | $ | 1,229 | $ | 13,628 | |||||||||
4.4. Seasonality of operations
The Company experiences seasonality in revenue due to customers’ annual budget cycle. The seasonality results from several factors, including the procurement and budgeting cycles customers, especially government or grant-funded customers, whose cycles often coincide with government fiscal year ends. Similarly, biopharmaceutical customers typically have calendar year fiscal years which also result in a disproportionate amount of purchasing activity occurring during the fourth quarter. The seasonality impacts both segments; therefore, higher revenues and operating profits are usually expected in the second half of the year rather than in the first six months. This information is provided to allow for a better understanding of the results; however, management has concluded that this is not ‘highly seasonal’ in accordance with IAS 34.
Exhibit 99.2
5. Income tax
Three
months ended | ||||||||
| Amounts in thousands of US Dollars | 2022 | 2021 | ||||||
| Current tax | $ | 18 | $ | (21 | ) | |||
| Deferred tax | 2,381 | 2,744 | ||||||
| Income tax expense | $ | 2,399 | $ | 2,723 | ||||
| Effective tax rate | 16 | % | 16 | % | ||||
The Company operates in multiple jurisdictions globally with significant operations outside Sweden. Accordingly, the consolidated income tax rate is a composite rate reflecting earnings and the applicable tax rates in the jurisdictions where the Company operates.
6. Share capital
| (A) | Reorganization of share structure |
On March 16, 2021, the Company’s shareholders approved the adoption of new articles of association which provided for the reorganization of existing common and preferred shares into one single share class. Pursuant to the new articles of association, each class of shares have been reorganized into one class of common shares as follows:
| · | The common shares series A have been re-designated as 56,221,500 common shares; |
| · | The common shares series B have been re-designated as 250,000 common shares; |
| · | The preferred share series A have been re-designated as one common share; and |
| · | The preferred shares series B1 have been re-designated as 200,755,561 common shares. |
Furthermore, on March 16, 2021, the Company’s shareholders resolved to conduct a reverse share split where the total number of outstanding common shares (257,227,062) was consolidated into 105,771,768 common shares.
| (B) | Initial public offering |
On March 29, 2021, the Company completed an initial public offering of 13,235,294 ADSs, representing 13,235,294 common shares, at an initial public offering price of $20.00 per share. The net proceeds from the initial public offering were $249.3 million, after deducting the underwriting discounts, net of deferred taxes, and other initial public offering costs associated with the filing.
Following the initial public offering on March 29, 2021 the Company had 119,007,062 shares outstanding.
| (C) | New share issue |
On March 29, 2022, the Company issued 91,056 shares, associated with the vesting of RSUs in the incentive award plan. Following this new share issue, the Company has 119,098,118 shares outstanding.
Exhibit 99.2
| (D) | Incentive award plan |
On March 16, 2021 at the Annual General Meeting, our shareholders approved and made effective our 2021 Incentive Award Plan (“2021 Plan”). The principal purpose of the 2021 Plan is to attract, retain and motivate selected employees, consultants and directors through the granting of share-based compensation awards and cash-based performance bonus awards. Under the 2021 Plan, 1,085,900 shares are initially available for issuance pursuant to a variety of stock-based compensation awards, including stock options, restricted stock unit awards and performance based restricted stock unit awards; provided, however, that no more than 1,085,900 shares may be issued upon the exercise of incentive stock options. The shares will be issued when the program vests over the four-year plan period.
In connection with the closing of the initial public offering, the Company granted options to purchase an aggregate of 620,675 common shares out of the 2021 Plan, of which 442,789 options were granted to certain of our executive officers and directors, in each case with an exercise price equal to 125% of the initial public offering price of $20.00. Such options shall vest over four years, subject to the terms and conditions of the 2021 Plan. The expiration date on the options is five years from grant date. The IFRS2 cost is calculated according to the following: Fair value per option at grant date multiplied by the number of outstanding share options multiplied by the number of days passed of the vesting period. To calculate fair value per share option at the grant date, the principles of the Black-Scholes model have been used. The expense associated with these stock options amounted to $0.3 million for the three months ended March 31, 2022. These are recorded within selling, administrative and research and development expenses within the income statement.
A summary of stock option activity under the Company's 2021 Plan relating to awards to certain officers and directors as of March 31, 2022, and changes during the three months ended March 31, 2022, are as follows:
| Outstanding
Stock Options | Weighted
Average Exercise Price | |||||||
Balance as of January 1, 2022 | 442,789 | 25,00 | ||||||
| Granted | - | - | ||||||
| Forfeited | - | - | ||||||
| Balance as of March 31, 2022 | 442,789 | 25,00 | ||||||
| Vested and exercisable as of March 31, 2022 | 110,697 | |||||||
During the third quarter of 2021, 465,225 restricted stock units (“RSUs”) that had been approved at the Annual General Meeting on March 16, 2021 were awarded to employees currently employed by Olink under the 2021 Plan. Of this, 352,464 were outstanding as of March 31, 2022, of which 108,071 RSU’s were granted to our executive officers. The RSUs will vest during a four-year period; new shares will be issued when the RSU’s vest. The expense associated with these RSUs amounted to $2.2 million for the three months ended March 31, 2022. These are recorded within selling, administrative, research and development and cost of goods sold expenses within the income statement.
Exhibit 99.2
The following is a summary of the RSU activity and related information as of March 31, 2022, and changes during the three months ended March 31, 2022:
Outstanding Restricted Stock Units | Weighted Average Grant Date Fair Value | |||||||
| Balance as of January 1, 2022 | 335,449 | 23.75 | ||||||
| Granted | 19,903 | 23.75 | ||||||
| Forfeited | (2 888 | ) | - | |||||
| Balance as of March 31, 2022 | 352,464 | 23.75 | ||||||
| Vested and exercisable as of March 31, 2022 | 87,664 | |||||||
7. Fair values
As of March 31, 2022 and December 31, 2021, respectively, the fair values of cash at bank, accounts receivables, other receivables, accounts payable, and advance payments from customers approximate their carrying amounts largely due to the short-term maturities of these instruments. There were no loan facilities as of March 31, 2022 nor as of December 31, 2021.
8. Related-party transactions
The Company entered the following related party transaction in the period prior year:
Management Service Agreements
On March 25, 2021, the Company terminated the Summa management service agreement and concurrently paid the success fee of approximately $2.25 million in connection with the initial public offering.
The Company did not enter any related party transaction agreements in the period current year.
9. Earnings per share
Earnings per share for the Company is calculated by taking the net loss for the period divided by the weighted average of outstanding common shares during the period.
For the three months ended March | For the three months ended March
| |||||||
| Net loss for the period | $ | (12,170 | ) | $ | (14,295 | ) | ||
| Less accumulated preferred dividend yield | - | (4,245 | ) | |||||
| Total | (12,170 | ) | (18,540 | ) | ||||
| Weighted average number of shares (thousands) | 119,010 | 38,926 | ||||||
| Basic and diluted loss per share | $ | (0.10 | ) | $ | (0.48 | ) | ||
Exhibit 99.2
As of March 31, 2021, the Company did not hold any potential dilutive shares nor any antidilutive shares; therefore, there are no differences between the basic and diluted earnings (loss) per share as of March 31, 2021.
As of March 31, 2022, the Company has the following potential common shares that can be potentially dilutive but are antidilutive as of March 31, 2022, and are therefore excluded from the weighted average number of common shares for the purpose of diluted profit/(loss) per share:
| i. | 442,789 outstanding stock options related to the 2021 Incentive Award Plan (see note 6) |
| ii. | 264,800 restricted stock units related to the 2021 Incentive Award Plan (see note 6) |
The weighted average number of shares reflect the impact of the Company’s reverse share split as discussed in Note 6 for both periods presented. The accumulated preferred dividend yield established under the Company’s Management Shareholder Agreement ceased, in accordance with this agreement, without any requirement for such accumulated preferred dividend yield to be paid out as a result of the share reorganization that took place on March 16, 2021 in anticipation of the initial public offering. The $4.2 million for March 31, 2021 represents the preferred dividend yield calculated through the March 16, 2021 share reorganization as discussed in Note 6. There is no annual cash dividend declared or payable.
10. Other current liabilities
Other current liabilities consist of the following:
| Amounts in thousands of US Dollars | As
of March 31, 2022 | As of December 31, 2021 | ||||||
| Salaries and wages | $ | 6,802 | $ | 6,306 | ||||
| Advance invoiced customers | 4,334 | 5,447 | ||||||
| Royalties | 904 | 1,233 | ||||||
| Other current liabilities | 4,795 | 6,663 | ||||||
| Total | $ | 16,835 | $ | 19,649 | ||||
11. Subsequent events
The Company performed a review of events subsequent to the balance sheet date through the date the financial statements were issued and determined that there were no such events requiring recognition or disclosure in the financial statements.
Exhibit 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Results of Operations
| Amounts in thousands of U.S. Dollars, unless otherwise stated | For the three months ended March 31, 2022 | For the three months ended March 31, 2021 | ||||||
| Revenue | $ | 22,677 | $ | 13,628 | ||||
| Cost of goods sold | (9,360 | ) | (4,996 | ) | ||||
| Gross profit | 13,317 | 8,632 | ||||||
| Selling expenses | (9,465 | ) | (5,704 | ) | ||||
| Administrative expenses | (14,399 | ) | (12,411 | ) | ||||
| Research and development expenses | (5,985 | ) | (4,219 | ) | ||||
| Other operating (loss)/income | 328 | (105 | ) | |||||
| Operating loss | (16,204 | ) | (13,807 | ) | ||||
| Interest, net | (130 | ) | (1,876 | ) | ||||
| Foreign exchange, net | 1,765 | 306 | ||||||
| Other financial expenses | - | (1,641 | ) | |||||
| Loss before tax | (14,569 | ) | (17,018 | ) | ||||
| Income tax benefit | 2,399 | 2,723 | ||||||
| Net loss for the period (Attributable to shareholders of the Parent) | $ | (12,170 | ) | $ | (14,295 | ) | ||
The following analysis includes EBITDA, Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Profit Percentage which are measures not calculated in accordance with IFRS. For more information regarding our use of these measures and reconciliations to the most directly comparable financial measures calculated in accordance with IFRS, see the section titled “Non-IFRS Reconciliations” below.
Revenue
Revenue for Q1 2022 was $22.7 million compared to $13.6 million for Q1 2021. The increase of $9.1 million, or 66%, was driven primarily by Explore analysis services, with the Service segment growing 74%. The Kit segment grew 41% year over year on a reported basis. The Explore platform accounted for 69% of Q1 2022 revenues.
Gross Profit/Gross Profit Percentage
Gross profit for Q1 2022 was $13.3 million compared to $8.6 million for Q1 2021. The increase of $4.7 million, or 54%, was mainly due to year over year revenue growth.
The decrease in gross profit percentage of 5% was driven primarily by our continued buildout of lab capacity within analysis services.
Exhibit 99.2
Operating Expenses
Total operating expenses for Q1 2022 were $29.5 million compared to $22.4 million for Q1 2021. The increase of $7.1 million, or 32%, 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.
Segment Information
Kit Revenues
Kit revenues represented 18% of our revenues for Q1 2022 compared to 21% for Q1 2021 and grew 41% year over year primarily as a result of continued Explore growth but also increased Target revenue. We also report an improvement in adjusted gross profit percentage to 89% Q1 2022 compared to 82% for Q1 2021.
Service Revenues
Service revenues represented 73% of our revenues for Q1 2022 compared to 70% for Q1 2021 and grew 74% year over year primarily as a result of a strong momentum in demand for the Explore service offering that was launched in June 2020.
We generated an adjusted gross profit percentage of 58% on Service revenues for Q1 2022 compared to 64% for Q1 2021. The decline in analysis services margin was driven primarily by the continued expansion of Olink’s lab capacity and associated increased personnel costs.
Non-IFRS Reconciliations
We present these non-IFRS financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also 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.
Exhibit 99.2
EBITDA and Adjusted EBITDA
We use the non-IFRS measures of EBITDA and Adjusted EBITDA. We define EBITDA as profit for the year before accounting for finance income, finance costs, tax, depreciation, and amortization of acquisition intangibles. We define Adjusted EBITDA as profit for the year before accounting for finance income, finance costs, tax, depreciation, and amortization of acquisition intangibles, further adjusted for management adjustments and share based compensation expenses. Management adjustments generally consist of certain cash and non-cash items that we believe are not reflective of the normal course of our business. We identify and determine items to be unique based on their nature and incidence or by their significance. As a result, the composition of these items may vary from year to year.
We present Adjusted EBITDA because we believe this measure can provide useful information to investors and analysts regarding the operational results of the business, as EBITDA is a fairly common metric with which market participants are familiar.
A reconciliation of Adjusted EBITDA to operating loss, the most directly comparable IFRS measure, is set forth below:
| Amounts in thousands of U.S. Dollars | For the three months ended March 31, 2022 | For the three months ended March 31, 2021 | ||||||
| Operating (loss)/profit | (16,204 | ) | (13,807 | ) | ||||
| Add: | ||||||||
| Amortization | 2,974 | 2,720 | ||||||
| Depreciation | 1,462 | 943 | ||||||
| EBITDA | (11,768 | ) | (10,144 | ) | ||||
| Management Adjustments | 444 | 6,422 | ||||||
| Share based compensation expenses | 2,198 | - | ||||||
| Adjusted EBITDA | $ | (9,126 | ) | $ | (3,722 | ) | ||
Management adjustments for Q1 2022 amounted to $0.4 million and mainly refers to costs related to recruitment of new board members. Management adjustments for Q1 2021 amounted to $6.4 million of costs associated with the initial public offering. There were no such costs in Q1 2022. Adjusted EBITDA for the period ended March 31, 2022, includes an add back of $2,2 million of share based compensation expenses associated with our 2021 Incentive Award Plan. There were no such costs in Q1 2021.
Exhibit 99.2
Adjusted Gross Profit, including Adjusted Gross Profit Percentage
We use the non-IFRS measure of Adjusted Gross Profit, including Adjusted Gross Profit Percentage. We define Adjusted Gross Profit as revenue less cost of goods sold, which is then adjusted to remove the impact of depreciation and the impact of material transactions or events that we believe are not indicative of our core operating performance, such as share based compensation expenses.
We believe that Adjusted Gross Profit, including Adjusted Gross Profit Percentage, provides important information to management and to investors regarding our core profit margin on sales. These are primary profit or loss measures we use to make resource allocation decisions and evaluate segment performance. Adjusted gross profit assists management in comparing the segment performance on a consistent basis for purposes of business decision-making by removing the impact of certain items we believe do not directly reflect our core operations and, therefore, are not included in measuring segment performance.
Reconciliations of Adjusted Gross Profit to gross profit, the most directly comparable IFRS measure, are set forth below:
| Amounts in thousands of U.S. Dollars, unless otherwise stated | For the three months ended March 31, 2022 | For the three months ended March 31, 2021 | ||||||
| Revenue | $ | 22,677 | $ | 13,628 | ||||
| Cost of goods sold | (9,360 | ) | (4,996 | ) | ||||
| Gross profit | 13,317 | 8,632 | ||||||
| Gross profit % | 58.7 | % | 63.3 | % | ||||
| Less: | ||||||||
| Depreciation charges | 824 | 579 | ||||||
| Share based compensation expenses | 66 | - | ||||||
| Adjusted Gross Profit | $ | 14,207 | $ | 9,211 | ||||
| Adjusted Gross Profit % | 62.6 | % | 67.6 | % | ||||
Adjusted gross profit percentage for Q1 2022 was 62.6% compared to an adjusted gross profit percentage of 67.6% for Q1 2020. Adjusted gross profit for Q1 2022 and Q1 2021 consists of $0.8 million and $0.6 million, respectively, related to depreciation charges and $0.07 million and $0 million, respectively, related to share based compensation expenses.
Exhibit 99.2
Reconciliation of adjusted gross profit to gross profit, the most comparable IFRS measure, by segment (unaudited):
Three months ended March 31, | ||||||||
| Amounts in thousands of US Dollars unless otherwise stated | 2022 | 2021 | ||||||
| Kit | ||||||||
| Revenue | 3,994 | 2,841 | ||||||
| Cost of goods sold | (603 | ) | (585 | ) | ||||
| Gross profit | $ | 3,391 | $ | 2,256 | ||||
| Gross profit margin | 84.9 | % | 79.4 | % | ||||
| Less: | ||||||||
| Depreciation charges | 132 | 86 | ||||||
| Share based compensation expenses | 36 | - | ||||||
| Adjusted Gross Profit | $ | 3,559 | $ | 2,342 | ||||
| Adjusted Gross Profit % | 89.1 | % | 82.4 | % | ||||
| Service | ||||||||
| Revenue | 16,607 | 9,558 | ||||||
| Cost of goods sold | (7,663 | ) | (3,942 | ) | ||||
| Gross profit | $ | 8,944 | $ | 5,616 | ||||
| Gross profit margin | 53.9 | % | 58.8 | % | ||||
| Less: | ||||||||
| Depreciation charges | 693 | 493 | ||||||
| Share based compensation expenses | 30 | - | ||||||
| Adjusted Gross Profit | $ | 9,667 | $ | 6,109 | ||||
| Adjusted Gross Profit % | 58.2 | % | 63.9 | % | ||||
| Corporate / Unallocated | ||||||||
| Revenue | 2,076 | 1,229 | ||||||
| Cost of goods sold | (1,095 | ) | (469 | ) | ||||
| Gross profit | $ | 981 | $ | 760 | ||||
| Gross profit margin | 47.3 | % | 61.8 | % | ||||
| Less: | ||||||||
| Depreciation charges | - | - | ||||||
| Share based compensation expenses | - | - | ||||||
| Adjusted Gross Profit | $ | 981 | $ | 760 | ||||
| Adjusted Gross Profit % | 47.3 | % | 61.8 | % | ||||
Exhibit 99.2
Exhibit 99.3
First Quarter 2022 Financial Results May 12, 2022 Olink Proteomics Vision Enable understanding of real - time human biology Mission Accelerate proteomics together
Strictly private and confidential Disclaimer 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 Form 20 - F (Commission file number 001 - 40277 ) and elsewhere in the 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 . 2
Summary Executive summary • 66% year over year revenue growth in 1Q 2022 led by rapid expansion in high - plex • Market validation of reagent kit strategy – Explore, Target, and Focus • Superior disruptive proprietary technology • Exceptional go - to market strategy • Very strong commercial execution • Transparent stable business model, easy to work with • Served 815 customers, with a global footprint • 416 - > 465 FTEs in 1Q 2022 (163 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 FlexPlex • Continue to drive PEA in clinical decision making • Continue to scale up the organization to accelerate growth 3
Uniquely addressed all challenges in proteomics – highest data quality 4 Dynamic range Library of 3000 proteins covers 10 logs ( fg – mg) Validation Strict, comprehensive validation of each target High - throughput 14 million protein measurements/week/system Cost efficient Piggyback on cost evolution in NGS Scalability Offering discovery to Dx on one technology platform High sensitivity IL - 8; 30 fg /ml Proprietary PEA technology Solving fundamental challenges in proteomics: Quality, throughput and cost Dual antibody recognition and barcoding required by PEA Exceptional specificity Minimal sample volume Equal to or less than 1 uL of sample required 4
Break - through science in high - impact peer reviewed literature 5
Singapore Shanghai Boston Tokyo Uppsala Proven execution, delivering on all strategic levers 66% Year over year revenue growth in 1Q22 (unaudited) ~18% Reagent kit share of 1Q22 total revenues >5k Untapped base of Illumina NGS systems addressable by Olink ~69% Explore revenues share of 1Q22 total revenues Top 20 Served all 20 of the largest biopharma 100% Coverage of the plasma proteome using Explore 3072 ~4k Untapped base of proteomics labs addressable by Olink 6
Singapore Shanghai Boston Tokyo Uppsala Strong execution of externalizations with significant headroom to grow 27 Explore customer installations 1 9 6 APAC 12 7 17 EMEA 14 21 17 Americas Explore labs Biomark core labs Signature labs 66% Explore revenues share of LTM total revenues 19% Kits revenue share of LTM total revenues ~$700k LTM Explore average revenue pull - through per customer installation 500k Sample potential on Explore externalization 37 Cumulative Signature placements as of 1Q22 40 Olink Biomark core labs 7
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 8
Actionable science driving rapid customer adoption and growth Evolution of publications based on PEA 1 Number of publications (accumulated) 54 123 223 349 513 768 839 FY17 FY16 FY20 FY19 FY18 FY21 Customer account acquisition Total number of accounts served since inception 1Q22 1 PEA publication count exceeded 860 as of April 30, 2022. Publication counts are estimates. 116 216 329 469 637 753 815 FY17 FY16 FY20 FY19 FY18 FY21 1Q22 9
First quarter financial results (unaudited) 1. Adjusted EBITDA is a non - IFRS measure and defined as profit for the year before accounting for finance income, finance costs, tax, depreciation, and amortization of acquisition intangibles, further adjusted for management adjustments and share based c om pensation expenses. Refer to Appendix for non - IFRS reconciliation. 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 material transactions or events that we believe are not indicative of our core opera ti ng performance, such as share based compensation expenses. Refer to Appendix for non - IFRS reconciliation. . 1Q 2021 1Q 2022 Total revenue $ 13.6 $ 22.7 Total EBITDA ($ 10.1) ($ 11.8) Total adjusted EBITDA 1 ($ 3.7) ($ 9.1) Gross profit (%) 63.3 % 58.7 % Adjusted gross profit (%) 2 67.6 % 62.6 % 73% 18% 9% Service Kit Other First quarter 2022 segment breakdown % of total Headcount development #Headcount First quarter 2022 financial highlights USDM 70 71 106 135 214 416 465 FY16 FY17 FY19 FY18 FY20 FY21 1Q22 10
First quarter 2022 revenue (unaudited) 1. RoW includes Japan and RoW . 2. EMEA includes Sweden. $22.7 million in revenue for 1Q 2022, representing 66% y/y growth on a reported basis Revenue by segment USD’000 Revenue by geography USD’000 2,841 9,558 1,229 3,994 16,607 2,076 Other Kit Service +41% +74% +69% 1Q21 1Q22 7,392 5,275 961 9,706 10,127 2,844 China & RoW (1) Americas EMEA (2) +31% +92% +196% 1Q21 1Q22 Our Explore offering accounted for 69% of revenue in the first quarter of 2022, with service segment and kit segment growth 7 4% and 41%, respectively, year over year. Kit revenues were weighted toward Explore Kits. 11
First quarter 2022 adjusted gross profit percentage (unaudited) $14.2 million in adjusted gross profit for 1Q 2022, compared to $9.2 million in 1Q 2021 Adjusted gross profit percentage decreased to 62.6% for the first quarter, reflecting investments into our service to continu e buildout of lab capacity Adjusted gross profit percentage by segment 1 USD’000 82 % 64 % 62 % 89 % 58 % 47 % Kit Other Service 1Q21 1Q22 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 material transactions or events that we believe are not indicative of our core opera ti ng performance, such as share based compensation expenses. Refer to Appendix for non - IFRS reconciliation. IFRS GM 79% IFRS GM 85% IFRS GM 59% IFRS GM 54% IFRS GM 62% IFRS GM 47% 12
First quarter 2022 operating expenses (unaudited) $29.5 million in total operating expenses for 1Q 2022, compared to $22.4 million in 1Q 2021 1 Olink is investing according to its strategic plan, hiring in the commercial and R&D teams Selling expenses USD’000 5,704 9,456 1Q21 1Q22 Research and development expenses USD’000 4,219 5,985 1Q21 1Q22 General and administrative expenses USD’000 12,411 14,399 Q4’21 Q4’20 1Q21 1Q22 1. Total operating expenses includes Other operating income/(loss) . 13
Strictly private and confidential Constant currency revenue growth of 72% versus reported growth of 66% FX impact driven by strengthening of USD against the EUR, SEK, and GBP Currency rates from Olink ERP system, sourced from the Swedish Riksbank FX rate change 1Q22 versus 1Q21 Index rebased at 100 with 1Q21 as base year SEK 0.6 GBP 0.9 1Q22 USD EUR 2.6 1.3 CNY JPN 22.7 12.4 4.9 Comments Olink generated 55% ($12.4 million) of revenues in USD during 1Q22. In 1Q22 we saw a strengthening of the USD against most key currencies, leading to a currency headwind compared to prior year, and against the FX rates used for internal planning. Currency flows largely stem from business activities in the Americas, with additional USD paying customers in other regions as well. Additional key currencies are EUR, SEK (Sweden), and GBP stemming from customer transactions in EMEA. 100 100 100 100 100 100 100 93 90 97 102 91 USD EUR SEK GBP CNY JPY - 7% - 10% - 3% +2% - 9% 1Q21 1Q22 1Q 2022 revenues by currency MUSD 14
2022 guidance – expecting rapid growth We expect revenue for the full year 2022 to be in the range of $138M and $145M, representing 45% to 53% growth over 2021. We expect strong sustainable growth, and continued investment into our organization 2022 revenue guidance USDM 46 54 95 138 - 145 FY19 FY20 FY21 FY22 +17% +76% +45 - 53% 15
APPENDIX 16
Non - IFRS reconciliation (adjusted gross profit) ($ in thousands) Three months ended March 31, 2022 Three months ended March 31, 2021 Gross profit $ 13,317 $ 8,632 Gross profit % 58.7% 63.3% Less: Depreciation charges $ 824 $ 579 Share based compensation expenses $ 66 - Adjusted gross profit $ 14,207 $ 9,211 Adjusted gross profit % 62.6% 67.6% 17
Non - IFRS reconciliation (adjusted EBITDA) ($ in thousands) Three months ended March 31, 2022 Three months ended March 31, 2021 Operating profit (loss) $ (16,204) $ (13,807) Add: Amortization $ 2,974 $ 2,720 Depreciation $ 1,462 $ 943 EBITDA $ (11,768) $ (10,144) Management adjustments $ 444 $ 6,422 Share based compensation expenses $ 2,198 - Adjusted EBITDA $ (9,126) $ (3,722) 18
Non - IFRS reconciliation (adjusted gross profit) ($ in thousands) Three months ended March 31, 2022 Three months ended March 31, 2021 Gross profit $ 3,391 $ 2,256 Gross profit % 84.9% 79.4% Less: Depreciation charges $ 132 $ 86 Share based compensation expenses $ 36 - Adjusted gross profit $ 3,559 $ 2,342 Adjusted gross profit % 89.1% 82.4% Three months ended March 31, 2022 Three months ended March 31, 2021 $ 8,944 $ 5,616 53.9% 58.8% $ 693 $ 493 $ 30 - $ 9,667 $ 6,109 58.2% 63.9% Three months ended March 31, 2022 Three months ended March 31, 2021 $ 981 $ 760 47.3% 61.8% - - - - $ 981 $ 760 47.3% 61.8% Kits revenue Service revenue Other revenue 19