Q1 2024 Flotek Industries Inc Earnings Call Transcript
Key Points
- Flotek Industries Inc reported significant year-over-year improvements in gross profit, adjusted gross profit, and adjusted EBITDA, marking the third consecutive quarter of net income.
- Q1 2024 adjusted EBITDA surpassed the total for the entire year of 2023, demonstrating strong financial performance and operational efficiency.
- External chemistry sales in Q1 2024 were the highest for a first quarter since the turnaround began, showing a 27% increase year-over-year.
- The data analytics segment saw an 18% quarter-over-quarter revenue growth, highlighting progress in data service revenues and the upcoming midyear release of the new Calix spectrometer.
- Flotek Industries Inc maintained a strong safety record with zero recordable and lost time incidents, extending over 843 days of safe operations.
- Revenue was slightly down sequentially from Q4 2023, primarily due to lower external chemistry sales, reflecting seasonal trends that have persisted over the past three years.
- Despite the increase in external chemistry sales, the overall revenue for Q1 2024 was $40 million, down from the previous year, partly due to lower related party activity.
- The company faces ongoing challenges with natural gas directed completions, which impacted the full service demand and contributed to the revenue decline.
- Flotek Industries Inc did not provide specific revenue guidance for 2024, citing uncertainty around the timing of improved natural gas pricing and its impact on completion activity.
- While the company is transitioning to a data as a service model, there is still a need to balance between capital sales and subscription models, which could affect revenue consistency and customer acquisition.
Good morning, ladies and gentlemen, and welcome to the Flotek Industries First Quarter 2024 earnings conference call. At this time, all lines are in a listen only mode following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, May eighth, 2024.
I would now like to turn the conference over to Michael Christelis, Director Finance. Please go ahead.
Thank you, and good morning, everyone. We appreciate your participation in Flotek's First Quarter 2024 earnings conference call. Joining me on the call today are Ryan as our Chief Executive Officer and Bond Clement, Chief Financial Officer. First we will provide prepared remarks concerning our business operations and financial results for the first quarter of 2024 as well as guidance for the full year 2024 following that we will open up the call for any questions you have.
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