Berkeley Lights Reports Financial Results for Second Quarter of Fiscal Year 2020

Rhea-AI Summary

Berkeley Lights, Inc. (BLI) reported a total revenue of $10.6 million for Q2 2020, a 10% decline year-over-year. Product revenue increased by 17% to $9.1 million, while service revenue fell by 63% to $1.5 million. The company's gross profit decreased to $7.0 million, with a gross margin drop to 66% from 81%. Operating expenses rose 26% to $19.1 million, resulting in a net loss of $12.4 million, compared to $6.2 million in Q2 2019. Berkeley Lights recently completed an IPO, raising approximately $188 million.

Positive

• Product revenue increased 17% to $9.1 million.
• Recurring revenue rose to $2.9 million from $1.7 million.

Negative

• Total revenue decreased by 10% year-over-year.
• Service revenue fell 63% to $1.5 million.
• Gross profit declined by $2.6 million to $7.0 million.
• Gross margin decreased from 81% to 66%.
• Operating expenses increased by 26% to $19.1 million.
• Net loss widened to $12.4 million from $6.2 million.

EMERYVILLE, Calif., Aug. 25, 2020 (GLOBE NEWSWIRE) -- Berkeley Lights, Inc. (Nasdaq: BLI), a leader in Digital Cell Biology, today reported financial results for the quarter ended June 30, 2020.

Recent Highlights

• Total revenue of $10.6 million including four platform placements
• Completed initial public offering, raising approximately $188 million of net proceeds

Second Quarter 2020 Financial Results

Revenue was $10.6 million for the quarter ended June 30, 2020, representing a 10% decrease from the second quarter in the prior year. Product revenue was $9.1 million for the quarter, representing a 17% increase from the second quarter in the prior year. Service revenue was $1.5 million for the quarter, representing a 63% decrease from the second quarter in the prior year.

Direct platform revenue was $7.5 million for the quarter, compared to $6.9 million for the second quarter in the prior year. Recurring revenue was $2.9 million for the quarter, compared to $1.7 million for the second quarter in the prior year. Milestone and related revenue was $128,000 for the quarter, compared to $3.2 million for the second quarter in the prior year.

Gross profit was $7.0 million for the second quarter of 2020, down $2.6 million from $9.6 million for the corresponding prior year period. Gross margin was 66% for the second quarter of 2020, compared to 81% for the corresponding prior year period.

Operating expenses were $19.1 million for the second quarter of 2020, compared to $15.2 million in the second quarter of the prior year, representing an increase of approximately 26%.

Net loss was $12.4 million in the second quarter of 2020, compared to $6.2 million in the same period in 2019.

Cash and cash equivalents were $59.2 million as of June 30, 2020. Subsequent to the end of the quarter, on July 21, 2020, Berkeley Lights completed its initial public offering, raising approximately $188 million of net proceeds, after deducting underwriting discounts, commissions, and fees.

About Berkeley Lights

Berkeley Lights is a leading Digital Cell Biology company focused on enabling and accelerating the rapid development and commercialization of biotherapeutics and other cell-based products for our customers. The Berkeley Lights Platform captures deep phenotypic, functional, and genotypic information for thousands of single cells in parallel and can also deliver the live biology customers desire in the form of the best cells. Our platform is a fully integrated, end-to-end solution, comprising proprietary consumables, including our OptoSelect chips and reagent kits, advanced automation systems, and application software. We developed the Berkeley Lights Platform to provide the most advanced environment for rapid functional characterization of single cells at scale, the goal of which is to establish an industry standard for our customers throughout their cell-based product value chain.  

Berkeley Lights’ Beacon and Lightning systems and Culture Station instrument are for research use only. Not for use in diagnostic procedures.

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 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 "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" 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 of 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.

Press Contact
berkeleylights@bulleitgroup.com

Investor Contact
ir@berkeleylights.com

Berkeley Lights
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)

		Three Months Ended June 30,
			2020				2019
Revenue
Product revenue		$	9,107			$	7,795
Service revenue			1,462				3,968
Total revenue			10,569				11,763
Cost of sales
Product cost of sales			2,384				1,949
Service cost of sales			1,223				242
Total cost of sales			3,607				2,191
Gross profit			6,962				9,572
Operating expenses:
Research and development			11,843				9,642
General and administrative			4,193				3,080
Sales and administrative			3,076				2,452
Total operating expenses			19,112				15,174
Loss from operations			(12,150	)			(5,602		)
Other income (expense):
Interest expense			(356	)			(350		)
Interest income			47				270
Other income (expense), net			37				(488		)
Loss before income taxes			(12,422	)			(6,170		)
Provision for income taxes			8				15
Net loss and net comprehensive loss			(12,430	)			(6,185		)
Net loss attributable to common stockholders per share, basic and diluted		$	(4.25	)		$	(2.43		)
Weighted-average shares used in calculating net loss per share, basic and diluted			3,109,545				2,872,183

Berkeley Lights
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)

	June 30,					December 31,
		2020					2019
Assets
Current assets
Cash and cash equivalents	$	59,170				$	81,033
Trade accounts receivable		10,236					9,334
Inventory		11,908					7,181
Prepaid expenses and other current assets		9,061					7,799
Total current assets		90,375					105,347
Restricted cash		270					270
Property and equipment, net		14,757					16,472
Operating lease right-of-use assets		13,000					7,785
Other assets		1,016					1,135
Total assets	$	119,418				$	131,009
Liabilities and shareholders’ equity
Current liabilities
Trade accounts payable	$	4,270				$	3,239
Accrued expenses and other current liabilities		8,099					6,229
Current portion of notes payable		1,596					5,765
Deferred revenue		8,607					9,686
Total current liabilities		22,572					24,919
Notes payable, net of current portion		18,264					14,062
Deferred revenue, net of current portion		1,098					1,461
Lease liability, long term		11,439					6,784
Total liabilities		53,373					47,226
Commitments and contingencies Stockholders' equity
Convertible preferred stock		224,769					224,769
Common stock		—					—
Additional paid-in capital		12,431					9,314
Accumulated deficit		(171,155	)				(150,300		)
Total shareholders’ equity		66,045					83,783
Total liabilities and shareholders’ equity	$	119,418				$	131,009

FAQ

What were Berkeley Lights' Q2 2020 revenue results?

Berkeley Lights reported total revenue of $10.6 million for Q2 2020.

How did product and service revenues perform in Q2 2020 for BLI?

Product revenue increased by 17% to $9.1 million, while service revenue decreased by 63% to $1.5 million.

What was Berkeley Lights' net loss for the second quarter of 2020?

The net loss for Q2 2020 was $12.4 million, compared to $6.2 million in Q2 2019.

What financial highlights were reported for BLI in the latest earnings call?

BLI's gross profit was $7.0 million, with a gross margin of 66%.

How much did Berkeley Lights raise in its initial public offering?

The company raised approximately $188 million in its IPO completed on July 21, 2020.