Burning Rock Reports Fourth Quarter and Full Year 2023 Financial Results
- Burning Rock Biotech reported a 14.9% decrease in Q4 2023 revenues compared to the same period in 2022.
- The company's central laboratory business revenue declined by 28.7% in Q4 2023.
- Revenue from in-hospital business decreased by 32.3% in Q4 2023, excluding one-off adjustments.
- Pharma research and development services revenue increased by 47.8% in Q4 2023.
- Gross profit decreased by 22.9% in Q4 2023, with a gross margin of 64.5%.
- Operating expenses decreased by 23.3% in Q4 2023 due to budget control measures.
- Net loss for Q4 2023 was RMB162.2 million, an improvement from the same period in 2022.
- Full year 2023 revenues decreased by 4.6% compared to 2022.
- Revenue from central laboratory business decreased by 26.0% in 2023.
- In-hospital business revenue increased by 7.6% in 2023.
- Pharma research and development services revenue increased by 58.4% in 2023.
- Gross profit decreased by 4.4% in 2023, with a gross margin of 67.6%.
- Operating expenses decreased by 24.1% in 2023, contributing to a reduced net loss compared to 2022.
- Burning Rock Biotech aims for breakeven in H1 2024 based on non-GAAP gross profit and SG&A expenses.
- The company will host a conference call on March 29, 2024, to discuss financial results and provide guidance for 2024.
- Revenues saw declines in both Q4 2023 and full year 2023, indicating a challenging business environment.
- Gross profit margins decreased in Q4 2023 compared to the same period in 2022.
- Operating expenses reduction may impact future growth and innovation initiatives.
- Net loss for Q4 2023, although improved from 2022, still indicates financial challenges.
Insights
The reported financial results of Burning Rock Biotech Limited demonstrate a complex fiscal landscape. While the company shows a decrease in quarterly revenue by 14.9% and a full-year revenue decrease of 4.6%, it's noteworthy that the pharma research and development services sector experienced a significant increase of 47.8% for the quarter and 58.4% for the year. These contrasting figures suggest that while the company's traditional central laboratory business faces challenges, possibly due to market saturation or strategic refocusing, there is substantial growth in the pharma services sector.
The reported net loss reduction from RMB216.2 million to RMB162.2 million for the quarter and from RMB971.2 million to RMB653.7 million for the year indicates effective cost management and operational efficiency improvements. This is further supported by the company's optimism in achieving breakeven in the first half of 2024. However, investors should remain cautious and consider the volatility of the biotech sector, potential regulatory hurdles and the competitive landscape before making investment decisions.
The Breakthrough Device Designation for the OverC™ Multi-Cancer Detection Blood Test by both the FDA and NMPA highlights Burning Rock's potential to revolutionize early cancer detection. This dual recognition could accelerate the test's adoption and reimbursement, opening significant market opportunities. However, the true impact on the company's financials will depend on the speed of market penetration, the competitive landscape and the ongoing cost of research and development.
The collaboration with AstraZeneca for companion diagnostics development in breast and prostatic cancer represents a strategic move to solidify Burning Rock's presence in precision oncology. The 24% increase in contract value during 2023 is a positive indicator of the company's growing influence and the industry's trust in its capabilities. Nonetheless, the long-term success of these partnerships hinges on the clinical outcomes and the regulatory environment, which can be unpredictable in the biotech field.
Burning Rock's strategic shift towards in-hospital business, despite a short-term revenue decrease, might be a calculated move to establish a stronger foothold within hospitals. This could potentially lead to more stable, long-term revenue streams. However, the decrease in gross margin for in-hospital business from 63.5% to 44.8% (excluding one-off adjustments) could be a concern if not managed carefully.
The company's focus on efficiency and cost reduction is commendable. The significant decrease in operating expenses, including R&D, selling and marketing, as well as general and administrative expenses, indicates a leaner operation. If sustained, this could lead to improved profitability. Investors should track the company's ability to maintain R&D innovation while managing costs, as this balance is critical in the biotech industry.
GUANGZHOU, China, March 28, 2024 (GLOBE NEWSWIRE) -- Burning Rock Biotech Limited (NASDAQ: BNR and LSE: BNR, the “Company” or “Burning Rock”), a company focused on the application of next generation sequencing (NGS) technology in the field of precision oncology, today reported financial results for the three months and the year ended December 31, 2023.
2023 Business Overview and Recent Updates
- Corporate Updates
- Completed profitability-driven organizational optimization, execution towards profitability well underway
- Early Detection
- Following the Breakthrough Device Designation granted by the US Food and Drug Administration (FDA) for our OverC™ Multi-Cancer Detection Blood Test (MCDBT) in January 2023, our OverC™ MCDBT also received the Breakthrough Device Designation by China’s National Medical Products Administration (NMPA) in October 2023, making it the only test globally that has received Breakthrough Device Designation from both the FDA and the NMPA.
- Therapy Selection and Minimal Residual Disease (MRD)
- Precision oncology diagnostics product supports advancement in late-stage breast cancer treatment, with results published in the New England Journal of Medicine in June 2023. The study, CAPItello-291, sponsored by our pharma client AstraZeneca, is a phase 3 trial that assessed the efficacy and safety of Capivasertib–fulvestrant therapy in advanced breast cancer patients with hormone receptor positive (HR+), human epidermal growth factor receptor 2 negative (HER2-) cancer whose disease has progressed during or after aromatase inhibitor therapy. The study demonstrates that Capivasertib–fulvestrant combination therapy results in significantly longer progression-free survival than treatment with fulvestrant alone.
- Pharma Services
- New companion diagnostics (CDx) development for breast and prostatic cancer announced with AstraZeneca in China.
- Entered into a Master Service Agreement in Oncology Companion Diagnostics (CDx) with Boehringer Ingelheim, focusing on advancing the clinical trials related to Boehringer Ingelheim's MDM2-p53 antagonist, brigimadlin (BI 907828), and the development of CDx products in China.
- Total value of new contracts entered into during 2023 amounted to RMB310 million, representing a
24% increase from 2022.
Fourth Quarter 2023 Financial Results
Revenues were RMB121.1 million (US
- Revenue generated from central laboratory business was RMB51.3 million (US
$7.2 million ) for the three months ended December 31, 2023, representing a28.7% decrease from RMB72.0 million for the same period in 2022, primarily attributable to a decrease in the number of tests, as we continued to focus on our in-hospital business. - Revenue generated from in-hospital business was RMB28.8 million (US
$4.1 million ) for the three months ended December 31, 2023, representing a32.3% decrease from RMB42.5 million for the same period in 2022, primarily attributable to one-off adjustment with two hospitals. Exclude such two, revenue generated from in-hospital business for the three months ended December 31, 2023 would have remained relatively stable (decreasing by1% ) year-over-year. - Revenue generated from pharma research and development services was RMB41.0 million (US
$5.8 million ) for the three months ended December 31, 2023, representing a47.8% increase from RMB27.7 million for the same period in 2022, primarily attributable to increased development and testing services performed for our pharma customers.
Cost of revenues remained relatively stable at RMB43.0 million (US
Gross profit was RMB78.1 million (US
Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB87.1 million (US
Operating expenses were RMB244.4 million (US
- Research and development expenses were RMB73.1 million (US
$10.3 million ) for the three months ended December 31, 2023, representing an27.5% decrease from RMB100.8 million for the same period in 2022, primarily due to (i) a decrease in the expenditure for detection research, and (ii) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency. - Selling and marketing expenses were RMB49.8 million (US
$7.0 million ) for the three months ended December 31, 2023, representing a41.5% decrease from RMB85.2 million for the same period in 2022, primarily due to (i) a decrease in staff cost resulted from the reorganization of our sales department to improve operating efficiency, and (ii) a decrease in marketing and conference fee. - General and administrative expenses were RMB121.5 million (US
$17.1 million ) for the three months ended December 31, 2023, representing a8.4% decrease from RMB132.7 million for the same period in 2022, primarily due to a decrease in professional service fee.
Net loss was RMB162.2 million (US
Cash, cash equivalents, restricted cash were RMB615.2 million (US
Full Year 2023 Financial Results
Revenues were RMB537.4 million (US
- Revenue generated from central laboratory business was RMB232.8 million (US
$32.8 million ) for 2023, representing a26.0% decrease from RMB314.8 million for 2022, primarily attributable to a decrease in the number of tests, as we continued to focus on our in-hospital business. - Revenue generated from in-hospital business was RMB188.7 million (US
$26.6 million ) for 2023, representing a7.6% increase from RMB175.3 million for 2022, primarily due to demand from ten new contracted partner hospitals added to the Company’s in-hospital channel in 2023. - Revenue generated from pharma research and development services was RMB115.9 million (US
$16.3 million ) for 2023, representing a58.4% increase from RMB73.2 million for 2022, primarily attributable to increased development and testing services performed for our pharma customers.
Cost of revenues was RMB174.2 million (US
Gross profit was RMB363.2 million (US
Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB399.4 million (US
Operating expenses were RMB1,032.5 million (US
- Research and development expenses were RMB347.0 million (US
$48.9 million ) for 2023, representing a17.7% decrease from RMB421.9 million for 2022, primarily due to (i) a decrease in the expenditure for detection research, (ii) a decrease in royalty and license fee, and (iii) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency. - Selling and marketing expenses were RMB247.7 million (US
$34.9 million ) for 2023, representing a33.1% decrease from RMB370.3 million for 2022, primarily due to (i) a decrease in staff cost resulted from the reorganization of our sales department to improve operating efficiency, (ii) a decrease in marketing and conference fee; and (iii) a decrease in entertainment fee. - General and administrative expenses were RMB437.8 million (US
$61.7 million ) for 2023, representing a23.0% decrease from RMB568.3 million for 2022, primarily due to (i) a decrease in professional service fee; (ii) a decrease in allowance for doubtful accounts resulting from accelerated settlement with customers with long aging accounts receivable; and (iii) a decrease in staff cost resulted from the reorganization of our general and administrative department to improve operating efficiency.
Net loss was RMB653.7 million (US
2024 Financial Guidance
We currently expect to achieve breakeven (measured by non-GAAP gross profit minus non-GAAP SG&A) in the first half of 2024.
Non-GAAP gross profit refers to gross profit excluding depreciation and amortization. Non-GAAP SG&A refers to selling and marketing expenses and general and administrative expenses, both excluding their respective share-based compensation and depreciation and amortization.
Conference Call Information
Burning Rock will host a conference call to discuss the fourth quarter and full year 2023 financial results at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Hong Kong time) on March 29, 2024.
Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers and unique registrant ID which would be provided upon registering.
PRE-REGISTER LINK: https://register.vevent.com/register/BIa8b469b65e8e428e942decdf0c4c6687.
Additionally, a live and archived webcast of the conference call will also be available on the company’s investor relations website at http://ir.brbiotech.com or through link https://edge.media-server.com/mmc/p/hrphgr99.
A replay of the webcast will be available for 12 months via the same link above.
About Burning Rock
Burning Rock Biotech Limited (NASDAQ: BNR and LSE: BNR), whose mission is to guard life via science, focuses on the application of next generation sequencing (NGS) technology in the field of precision oncology. Its business consists of i) NGS-based therapy selection testing for late-stage cancer patients, and ii) cancer early detection, which has moved beyond proof-of-concept R&D into the clinical validation stage.
For more information about Burning Rock, please visit: ir.brbiotech.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Burning Rock may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Burning Rock’s beliefs and expectations, are forward-looking statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Burning Rock’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. All information provided in this press release is as of the date of this press release, and Burning Rock does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Non-GAAP Measures
In evaluating the business, the company considers and uses non-GAAP measures, such as non-GAAP gross profit and non-GAAP gross margin, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The company defines non-GAAP gross profit as gross profit excluding depreciation and amortization. The company defines non-GAAP gross margin as gross margin excluding depreciation and amortization.
The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The company believe non-GAAP gross profit and non-GAAP gross margin excluding non-cash impact of depreciation and amortization reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons.
Contact: IR@brbiotech.com
| Selected Operating Data | ||||||||||||||||
| As of | ||||||||||||||||
| March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||||||
| In-hospital Channel: | ||||||||||||||||
| Pipeline partner hospitals(1) | 24 | 25 | 22 | 28 | 29 | 30 | 29 | 28 | ||||||||
| Contracted partner hospitals(2) | 41 | 43 | 47 | 49 | 49 | 50 | 55 | 59 | ||||||||
| Total number of partner hospitals | 65 | 68 | 69 | 77 | 78 | 80 | 84 | 87 | ||||||||
| (1) Refers to hospitals that are in the process of establishing in-hospital laboratories, laboratory equipment procurement or installation, staff training or pilot testing using the Company’s products. | ||||||||||||||||
| (2) Refers to hospitals that have entered into contracts to purchase the Company’s products for use on a recurring basis in their respective in-hospital laboratories the Company helped them establish. Kit revenue is generated from contracted hospitals. | ||||||||||||||||
| Selected Financial Data | ||||||||||||||||
| For the three months ended | ||||||||||||||||
| Revenues | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||
| (RMB in thousands) | ||||||||||||||||
| Central laboratory channel | 74,211 | 78,597 | 89,992 | 71,970 | 61,804 | 66,239 | 53,481 | 51,288 | ||||||||
| In-hospital channel | 48,957 | 34,177 | 49,636 | 42,526 | 51,561 | 53,835 | 54,496 | 28,809 | ||||||||
| Pharma research and development channel | 12,356 | 18,072 | 15,003 | 27,741 | 29,151 | 26,194 | 19,589 | 40,988 | ||||||||
| Total revenues | 135,524 | 130,846 | 154,631 | 142,237 | 142,516 | 146,268 | 127,566 | 121,085 | ||||||||
| For the three months ended | ||||||||||||||||
| Gross profit | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||
| (RMB in thousands) | ||||||||||||||||
| Central laboratory channel | 50,574 | 57,575 | 69,991 | 54,507 | 48,090 | 51,876 | 41,487 | 41,886 | ||||||||
| In-hospital channel | 33,396 | 20,012 | 31,593 | 26,999 | 34,409 | 33,353 | 35,459 | 12,910 | ||||||||
| Pharma research and development channel | 3,610 | 5,015 | 7,010 | 19,757 | 16,273 | 15,193 | 8,974 | 23,317 | ||||||||
| Total gross profit | 87,580 | 82,602 | 108,594 | 101,263 | 98,772 | 100,422 | 85,920 | 78,113 | ||||||||
| For the three months ended | ||||||||||||||||
| Share-based compensation expenses | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||
| (RMB in thousands) | ||||||||||||||||
| Cost of revenues | 365 | 441 | 481 | 496 | 353 | 627 | 680 | 654 | ||||||||
| Research and development expenses | 12,299 | 11,923 | 13,978 | 14,673 | 13,612 | 15,301 | 12,161 | 12,401 | ||||||||
| Selling and marketing expenses | 1,774 | 2,158 | 2,346 | 2,247 | 1,606 | 3,389 | 2,848 | 1,816 | ||||||||
| General and administrative expenses | 65,715 | 62,615 | 61,041 | 74,232 | 62,595 | 18,502 | 57,704 | 56,472 | ||||||||
| Total share-based compensation expenses | 80,153 | 77,137 | 77,846 | 91,648 | 78,166 | 37,819 | 73,393 | 71,343 | ||||||||
| Burning Rock Biotech Limited Unaudited Condensed Statements of Comprehensive Loss (in thousands, except for number of shares and per share data) | ||||||||||||||||||
| For the three months ended | ||||||||||||||||||
| March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2023 | ||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | US$ | ||||||||||
| Revenues | 135,524 | 130,846 | 154,631 | 142,237 | 142,516 | 146,268 | 127,566 | 121,085 | 17,054 | |||||||||
| Cost of revenues | (47,944) | (48,244) | (46,037) | (40,974) | (43,744) | (45,846) | (41,646) | (42,972) | (6,052) | |||||||||
| Gross profit | 87,580 | 82,602 | 108,594 | 101,263 | 98,772 | 100,422 | 85,920 | 78,113 | 11,002 | |||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development expenses | (119,496) | (92,112) | (109,433) | (100,827) | (94,417) | (95,779) | (83,701) | (73,119) | (10,299) | |||||||||
| Selling and marketing expenses | (89,211) | (105,634) | (90,275) | (85,174) | (64,774) | (70,842) | (62,310) | (49,785) | (7,012) | |||||||||
| General and administrative expenses | (141,733) | (150,316) | (143,530) | (132,705) | (128,039) | (69,525) | (118,724) | (121,533) | (17,118) | |||||||||
| Total operating expenses | (350,440) | (348,062) | (343,238) | (318,706) | (287,230) | (236,146 ) | (264,735) | (244,437) | (34,429) | |||||||||
| Loss from operations | (262,860) | (265,460) | (234,644) | (217,443) | (188,458) | (135,724) | (178,815) | (166,324) | (23,427) | |||||||||
| Interest income | 1,932 | 2,656 | 2,013 | 2,838 | 3,144 | 5,255 | 4,018 | 5,539 | 780 | |||||||||
| Other income (expense), net | 298 | 127 | (189) | (84) | 599 | (118) | (157) | 160 | 23 | |||||||||
| Foreign exchange (loss) gain, net | (777) | 624 | 1,337 | 365 | (116) | （210 | ） | 423 | (517) | (73) | ||||||||
| Loss before income tax | (261,388) | (262,053) | (231,483) | (214,324) | (184,831) | (130,797) | (174,531) | (161,142) | (22,697) | |||||||||
| Income tax expenses | - | (84) | - | (1,901) | (422) | (445) | (450) | (1,071) | (151) | |||||||||
| Net loss | (261,388) | (262,137) | (231,483) | (216,225) | (185,253) | (131,242 ) | (174,981) | (162,213) | (22,848) | |||||||||
| Net loss attributable to Burning Rock Biotech Limited’s shareholders | (261,388) | (262,137) | (231,483) | (216,225) | (185,253) | (131,242) | (174,981) | (162,213) | (22,848) | |||||||||
| Net loss attributable to ordinary shareholders | (261,388) | (262,137) | (231,483) | (216,225) | (185,253) | (131,242) | (174,981) | (162,213) | (22,848) | |||||||||
| Loss per share for class A and class B ordinary shares: | ||||||||||||||||||
| Class A ordinary shares - basic and diluted | (2.50) | (2.50) | (2.23) | （2.11 | ） | (1.81) | (1.28) | (1.71) | (1.58) | (0.22) | ||||||||
| Class B ordinary shares - basic and diluted | (2.50) | (2.50) | (2.23) | （2.11 | ） | (1.81) | (1.28) | (1.71) | (1.58) | (0.22) | ||||||||
| Weighted average shares outstanding used in loss per share computation: | ||||||||||||||||||
| Class A ordinary shares - basic and diluted | 87,179,752 | 87,532,539 | 86,585,322 | 85,051,882 | 85,065,585 | 85,151,052 | 85,000,869 | 85,071,360 | 85,071,360 | |||||||||
| Class B ordinary shares - basic and diluted | 17,324,848 | 17,324,848 | 17,324,848 | 17,324,848 | 17,324,848 | 17,324,848 | 17,324,848 | 17,324,848 | 17,324,848 | |||||||||
| Other comprehensive (loss) income, net of tax of nil: | ||||||||||||||||||
| Foreign currency translation adjustments | (3,065) | 29,715 | 20,646 | (5,950) | (5,659) | 14,829 | (1,955) | (3,026) | (426) | |||||||||
| Total comprehensive loss | (264,453) | (232,422) | (210,837) | (222,175) | (190,912) | (116,413) | (176,936 ) | (165,239) | (23,274) | |||||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders | (264,453) | (232,422) | (210,837) | (222,175) | (190,912) | (116,413) | (176,936) | (165,239) | (23,274) | |||||||||
| Burning Rock Biotech Limited Unaudited Condensed Statements of Comprehensive Loss (in thousands, except for number of shares and per share data) | ||||||
| For the year ended | ||||||
| December 31, 2022 | December 31, 2023 | December 31, 2023 | ||||
| RMB | RMB | US$ | ||||
| Revenues | 563,238 | 537,435 | 75,696 | |||
| Cost of revenues | (183,199) | (174,208) | (24,536) | |||
| Gross profit | 380,039 | 363,227 | 51,160 | |||
| Operating expenses: | ||||||
| Research and development expenses | (421,868) | (347,016) | (48,876) | |||
| Selling and marketing expenses | (370,294) | (247,711) | (34,889) | |||
| General and administrative expenses | (568,284) | (437,821) | (61,666) | |||
| Total operating expenses | (1,360,446) | (1,032,548) | (145,431) | |||
| Loss from operations | (980,407) | (669,321) | (94,271) | |||
| Interest income | 9,356 | 17,956 | 2,529 | |||
| Interest expenses | 102 | - | - | |||
| Other income, net | 152 | 484 | 68 | |||
| Foreign exchange gain (loss), net | 1,549 | (420) | (59) | |||
| Loss before income tax | (969,248) | (651,301) | (91,733) | |||
| Income tax expenses | (1,985) | (2,388) | (336) | |||
| Net loss | (971,233) | (653,689) | (92,069) | |||
| Net loss attributable to Burning Rock Biotech Limited’s shareholders | (971,233) | (653,689) | (92,069) | |||
| Net loss attributable to ordinary shareholders | (971,233) | (653,689) | (92,069) | |||
| Loss per share for class A and class B ordinary shares: | ||||||
| Class A ordinary shares - basic and diluted | (9.35) | (6.38) | (0.90) | |||
| Class B ordinary shares - basic and diluted | (9.35) | (6.38) | (0.90) | |||
| Weighted average shares outstanding used in loss per share computation: | ||||||
| Class A ordinary shares - basic and diluted | 86,584,100 | 85,071,691 | 85,071,691 | |||
| Class B ordinary shares - basic and diluted | 17,324,848 | 17,324,848 | 17,324,848 | |||
| Other comprehensive income, net of tax of nil: | ||||||
| Foreign currency translation adjustments | 41,346 | 4,189 | 590 | |||
| Total comprehensive loss | (929,887) | (649,500) | (91,479) | |||
| Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders | (929,887) | (649,500) | (91,479) | |||
| Burning Rock Biotech Limited Unaudited Condensed Consolidated Balance Sheets (In thousands) | ||||||
| As of | ||||||
| December 31, 2022 | December 31, 2023 | December 31, 2023 | ||||
| RMB | RMB | US$ | ||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | 905,451 | 615,096 | 86,634 | |||
| Restricted cash | 19,817 | 120 | 17 | |||
| Accounts receivable, net | 109,954 | 126,858 | 17,868 | |||
| Contract assets, net | 41,757 | 22,748 | 3,204 | |||
| Inventories, net | 130,321 | 69,020 | 9,721 | |||
| Prepayments and other current assets | 51,462 | 50,254 | 7,078 | |||
| Total current assets | 1,258,762 | 884,096 | 124,522 | |||
| Non-current assets: | ||||||
| Equity method investment | 690 | 337 | 47 | |||
| Convertible note receivable | 5,105 | 5,320 | 749 | |||
| Property and equipment, net | 251,829 | 131,912 | 18,579 | |||
| Operating right-of-use assets | 48,205 | 12,284 | 1,730 | |||
| Intangible assets, net | 1,986 | 964 | 136 | |||
| Other non-current assets | 20,890 | 5,088 | 717 | |||
| Total non-current assets | 328,705 | 155,905 | 21,958 | |||
| TOTAL ASSETS | 1,587,467 | 1,040,001 | 146,480 | |||
| Burning Rock Biotech Limited Unaudited Condensed Consolidated Balance Sheets (Continued) (in thousands) | ||||||
| As of | ||||||
| December 31, 2022 | December 31, 2023 | December 31, 2023 | ||||
| RMB | RMB | US$ | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | 50,947 | 18,061 | 2,544 | |||
| Deferred revenue | 147,633 | 130,537 | 18,386 | |||
| Accrued liabilities and other current liabilities | 173,832 | 104,935 | 14,780 | |||
| Customer deposits | 1,803 | 1,197 | 169 | |||
| Current portion of operating lease liabilities | 37,236 | 8,634 | 1,216 | |||
| Total current liabilities | 411,451 | 263,364 | 37,095 | |||
| Non-current liabilities: | ||||||
| Non-current portion of operating lease liabilities | 13,551 | 3,690 | 520 | |||
| Other non-current liabilities | 4,124 | 4,537 | 636 | |||
| Total non-current liabilities | 17,675 | 8,227 | 1,156 | |||
| TOTAL LIABILITIES | 429,126 | 271,591 | 38,251 | |||
Shareholders’ equity: | ||||||
| Class A ordinary shares | 117 | 116 | 16 | |||
| Class B ordinary shares | 21 | 21 | 3 | |||
| Additional paid-in capital | 4,582,790 | 4,849,337 | 683,015 | |||
| Treasury stock | (58,919) | (65,896) | (9,281) | |||
| Accumulated deficits | (3,199,946) | (3,853,635) | (542,773) | |||
| Accumulated other comprehensive loss | (165,722) | (161,533) | (22,751) | |||
| Total shareholders’ equity | 1,158,341 | 768,410 | 108,229 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,587,467 | 1,040,001 | 146,480 | |||
| Burning Rock Biotech Limited Unaudited Condensed Statements of Cash Flows (in thousands) | |||||||
| For the three months ended | |||||||
| December 31, 2022 | December 31, 2023 | December 31, 2023 | |||||
| RMB | RMB | US$ | |||||
| Net cash used in operating activities | (67,707) | (16,019) | (2,256) | ||||
| Net cash used in investing activities | (5,033) | (328) | (46) | ||||
| Net cash used in financing activities | (10,074) | (1,909) | (269) | ||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (5,924) | (3,277) | (462) | ||||
| Net decrease in cash, cash equivalents and restricted cash | (88,738) | (21,533) | (3,033) | ||||
| Cash, cash equivalents and restricted cash at the beginning of period | 1,014,006 | 636,749 | 89,684 | ||||
| Cash, cash equivalents and restricted cash at the end of period | 925,268 | 615,216 | 86,651 | ||||
| For the year ended | ||||||
| December 31, 2022 | December 31, 2023 | December 31, 2023 | ||||
| RMB | RMB | US$ | ||||
| Net cash used in operating activities | (456,808 | ) | (255,783 | ) | (36,026 | ) |
| Net cash used in investing activities | (7,463 | ) | (9,300 | ) | (1,310 | ) |
| Net cash used in financing activities | (86,238 | ) | (48,832 | ) | (6,878 | ) |
| Effect of exchange rate on cash, cash equivalents and restricted cash | 36,665 | 3,863 | 544 | |||
| Net decrease in cash, cash equivalents and restricted cash | (513,844 | ) | (310,052 | ) | (43,670 | ) |
| Cash, cash equivalents and restricted cash at the beginning of period | 1,439,112 | 925,268 | 130,321 | |||
| Cash, cash equivalents and restricted cash at the end of period | 925,268 | 615,216 | 86,651 | |||
| Burning Rock Biotech Limited Reconciliations of GAAP and Non-GAAP Results | ||||||||||||||||
| For the three months ended | ||||||||||||||||
| March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||||||
| (RMB in thousands) | ||||||||||||||||
| Gross profit: | ||||||||||||||||
| Central laboratory channel | 50,574 | 57,575 | 69,991 | 54,507 | 48,090 | 51,876 | 41,487 | 41,886 | ||||||||
| In-hospital channel | 33,396 | 20,012 | 31,593 | 26,999 | 34,409 | 33,353 | 35,459 | 12,910 | ||||||||
| Pharma research and development channel | 3,610 | 5,015 | 7,010 | 19,757 | 16,273 | 15,193 | 8,974 | 23,317 | ||||||||
| Total gross profit | 87,580 | 82,602 | 108,594 | 101,263 | 98,772 | 100,422 | 85,920 | 78,113 | ||||||||
| Add: depreciation and amortization: | ||||||||||||||||
| Central laboratory channel | 2,553 | 2,545 | 3,138 | 3,609 | 2,567 | 2,645 | 2,550 | 2,414 | ||||||||
| In-hospital channel | 93 | 1,428 | 2,479 | 2,449 | 2,582 | 2,637 | 2,751 | 2,728 | ||||||||
| Pharma research and development channel | 2,493 | 4,327 | 2,805 | 3,065 | 3,974 | 3,665 | 3,863 | 3,808 | ||||||||
| Total depreciation and amortization included in cost of revenues | 5,139 | 8,300 | 8,422 | 9,123 | 9,123 | 8,947 | 9,164 | 8,950 | ||||||||
| Non-GAAP gross profit： | ||||||||||||||||
| Central laboratory channel | 53,127 | 60,120 | 73,129 | 58,116 | 50,657 | 54,521 | 44,037 | 44,300 | ||||||||
| In-hospital channel | 33,489 | 21,440 | 34,072 | 29,448 | 36,991 | 35,990 | 38,210 | 15,638 | ||||||||
| Pharma research and development channel | 6,103 | 9,342 | 9,815 | 22,822 | 20,247 | 18,858 | 12,837 | 27,125 | ||||||||
| Total non-GAAP gross profit | 92,719 | 90,902 | 117,016 | 110,386 | 107,895 | 109,369 | 95,084 | 87,063 | ||||||||
| Non-GAAP gross margin： | ||||||||||||||||
| Central laboratory channel | ||||||||||||||||
| In-hospital channel | ||||||||||||||||
| Pharma research and development channel | ||||||||||||||||
| Total non-GAAP gross margin | 68.4% | 69.5% | 75.7% | 77.6% | 75.7% | 74.8% | 74.5% | 71.9% | ||||||||
| Burning Rock Biotech Limited Reconciliations of GAAP and Non-GAAP Results | |||||
| For the year ended | |||||
| December 31, 2022 | December 31, 2023 | ||||
| (RMB in thousands) RMB | |||||
| Gross profit: | |||||
| Central laboratory channel | 232,647 | 183,339 | |||
| In-hospital channel | 112,000 | 116,131 | |||
| Pharma research and development channel | 35,392 | 63,757 | |||
| Total gross profit | 380,039 | 363,227 | |||
| Add: depreciation and amortization: | |||||
| Central laboratory channel | 11,845 | 10,176 | |||
| In-hospital channel | 6,449 | 10,699 | |||
| Pharma research and development channel | 12,690 | 15,310 | |||
| Total depreciation and amortization included in cost of revenues | 30,984 | 36,185 | |||
| Non-GAAP gross profit： | |||||
| Central laboratory channel | 244,492 | 193,515 | |||
| In-hospital channel | 118,449 | 126,830 | |||
| Pharma research and development channel | 48,082 | 79,067 | |||
| Total non-GAAP gross profit | 411,023 | 399,412 | |||
| Non-GAAP gross margin： | |||||
| Central laboratory channel | 77.7 | % | 83.1 | % | |
| In-hospital channel | 67.6 | % | 67.2 | % | |
| Pharma research and development channel | 65.7 | % | 68.2 | % | |
| Total non-GAAP gross margin | 73.0 | % | 74.3 | % | |
FAQ
What was Burning Rock Biotech's (BNR) revenue for Q4 2023?
What caused the decline in revenue from the central laboratory business in Q4 2023?
How did Burning Rock Biotech's gross profit margin change in Q4 2023 compared to 2022?
What are the company's expectations for achieving breakeven in 2024?
When will Burning Rock Biotech host a conference call to discuss financial results?
