LanzaTech Global, Inc. Q3 FY2023 earnings call

• Commercially, Q3 revenue was $19.6M, up 52% QOQ and 143% YOY, driven by all business lines. - Cash burn was reduced to $24.2M in Q3 from $33.8M in Q2. - Started up 3 new commercial plants in 2023, including Shougang steel's 60,000-tonne facility, IndianOil's 33,500-tonne facility, and ArcelorMittal's 64,000-tonne facility. - Partnered with Brookfield Renewable and Olayan Financing Company to develop projects in key regions. - Progressed on Project Dragon in the U.K., delivering basic engineering package and expecting FEED completion. - CarbonSmart business saw partnerships with Craghoppers, Dow, and Mibelle, and progress on fuel certification in Europe. - Advanced in process competitiveness with production of IPA and MEG, and improved synthetic biology strain development. - Achieved 0 lost to injuries and 0 recordable injuries in Q3.

In the third quarter of 2023, LanzaTech's total revenue reached $19.6 million, representing a 52% sequential increase and 143% year-on-year improvement. The core Biorefining business contributed to revenue growth, with revenue from biorefining carbon capture and utilization growing 256% year-on-year to $12.4 million. Research and development revenue, including joint development and contract research work, grew 70% year-on-year and 122% quarter-on-quarter to $5 million. CarbonSmart revenue grew 34% year-on-year and 124% quarter-on-quarter to $2.3 million. These segments collectively fueled the company's commercial growth across all business lines.

• Full-year 2023 revenue expected to be at the low end of $80M to $100M guidance. - Anticipate robust Q4 revenue from engineering services, CarbonSmart campaigns, and joint development projects. - Expect margin improvement in Q4 similar to Q3. - Plan to be on the high end of EBITDA guidance range for 2023, with focus on growing gross profit above operating costs.

• Forward-looking statements may not materialize due to various factors beyond control. - Accounting restatement for prior quarters due to FPA accounting change, but not impacting ongoing operations.

Q: Follow-up on 2023 guidance, asking if to double Q3 revenue is secure.

A: Mostly under contract, on a glide path to achieve.

Q: EBITDA guidance, asking about range.

A: Expect to be in the high end of negative 65% to negative 75% range.

Q: Margin trends, asking about Q4.

A: Geoff mentions margin improvement to continue in Q4.

Q: Joint venture in Saudi Arabia, asking about origin and opportunity.

A: Olayan JV to source and develop projects, impacting pipeline soon.

Q: Joint development and contract business, asking about drivers.

A: Driven by projects with partners like L'Oreal and SHV.

Q: EBITDA breakeven, asking about timeline.

A: Focus on growing gross profit above operating costs, detailed guidance in February.