AMRS Stock Price Increased 27.39%: Why It Happened

By Amit Chowdhry ● March 3, 2021
  • The stock price of Amyris Inc (NASDAQ: AMRS) has increased by 27.39%. This is why it happened.

The stock price of Amyris Inc (NASDAQ: AMRS) – a leading synthetic biotechnology company active in the Clean Health and Beauty markets through its consumer brands – has increased by 27.39% as it went from a previous close of $15.66 to $19.95. Investors had responding to the company reporting its fourth quarter and full year 2020 financial results. 

Q4 2020 Highlights

– Record sales revenue of $80 million nearly doubled versus the prior year quarter. Record Product revenue of $35 million increased 71% compared to the prior year quarter driven by a record quarter for Consumer which, with $17 million in revenue and 161% growth, delivered as much revenue in Q4 as the entire year 2019. Ingredients revenue of $18 million grew 29%. Q4 revenue included $40 million for the Farnesene strategic transaction.

– Gross margin of 66% improved from 56% in the prior year quarter and increased $30 million year-over-year. Product-related gross margin grew $6 million versus the prior year quarter with the remaining $24 million primarily attributable to the year-over-year impact from strategic transactions.

– Cash operating expense of $50 million increased by $5 million or 10% versus the prior year quarter, primarily due to marketing investments in our consumer brands and new R&D programs.

– Adjusted EBITDA was positive $1 million and improved $26 million year-over-year due to higher revenue, improved Product gross margins, and income from the Q4 strategic transaction.

– GAAP net earnings were -$109 million due mostly to -$98 million of unfavorable mark-to-market non-cash adjustments related to changes in the fair value of debt and derivatives. GAAP EPS of -$0.44 basic improved from -$0.65 basic in the prior year quarter.

– Adjusted net earnings of -$7 million improved $34 million compared to the prior year quarter. Adjusted EPS of -$0.03 compared with -$0.34 for Q4 2019.

– Debt of $171 million was significantly reduced by $127 million from $297 million in the prior year quarter resulting in reduced interest expense of $6 million or 56% compared to the prior year quarter.

FY 2020 Highlights

– Record sales revenue of $173 million grew 13% versus the prior year. Record Product revenue of $112 million increased 72% versus the prior year driven by record Consumer revenue and record Ingredients growth, up 197% and 26% respectively.

– Gross margin of 56% improved $11 million compared to the prior year. Product-related gross margin grew $37 million year-over-year, with a $23 million improvement from Consumer and a $14 million increase from Ingredients. 2019 saw higher income from Collaboration and transactions resulting in a year-over-year variance of -$26 million.

– Cash operating expense of $181 million decreased by $1 million or 1% compared to the prior year primarily due to decreases in G&A and R&D expenses partly offset by increases in marketing expenses to support consumer brands growth.

– Adjusted EBITDA of -$95 million improved $8 million compared to the prior year, primarily due to higher revenue and improved gross margins.

– GAAP net earnings were -$382 million due mostly to -$232 million of mark-to-market non-cash adjustments related to changes in the fair value of debt and derivatives, extinguishment of debt and deemed dividends. GAAP EPS of -$1.88 basic improved from -$2.67 basic in the prior year.

– Adjusted net earnings of -$151 million improved $16 million compared to 2019. Adjusted EPS of -$0.74 compared with -$1.65 for the prior year.

KEY QUOTES:

“2020 was a year of transformative execution for Amyris. We delivered the third consecutive quarter of record Product sales revenue in Q4 while also expanding Product gross margins. We continued to see strong growth with our Consumer brands and delivered Q4 Consumer revenue equivalent to the entire year 2019. This revenue and margin growth combined with the completion of the strategic transaction resulted in positive adjusted EBITDA in the quarter.”

“The Amyris team made significant progress in 2020 on our strategic initiatives. We delivered six new ingredients at scale, completed a successful $200 million equity financing and significantly reduced our total debt. With the momentum in our product revenue we believe that we are well positioned to continue to drive sector leading growth into the future. We expect 2021 to be another record year with underlying total revenue in the $240 million range and reported total revenue of around $400 million, when including the potential impact of the strategic transactions. With our business momentum and these transactions, we expect to deliver full year 2021 positive adjusted EBITDA.”

— John Melo, President and Chief Executive Officer of Amyris

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.