Conestoga Capital Advisors, LLC on Alpha Teknova, Inc.
Thesis
Alpha Teknova supplies customized reagents and essential materials for life-science research, diagnostics and drug development. Revenue hit a record as growth spread across customers and end markets. Cash consumption also fell to the lowest level since before its IPO. Management lifted its revenue outlook, and investment in the commercial organization should help drive further demand for custom products.
“2Q revenue reached a company record as growth broadened across customers and end markets”
Key risks
- Research and biopharma customers may constrain spending.
- Recent commercial investments must translate into profitable growth.
- The company still experienced free cash outflow despite its improvement.