PacBio Announces First Quarter 2024 Financial Results
PacBio announced its financial results for the first quarter of 2024, reporting a revenue of $38.8 million, a 16% increase in gross profit compared to the prior year, and a net loss of $78.2 million. The company highlighted new product launches and cost-cutting measures to improve revenue and reduce expenses. Cash, cash equivalents, and investments totaled $561.9 million at the end of March 2024.
16% increase in gross profit for the first quarter of 2024 compared to the prior year.
New product launches such as the PureTargetTM repeat expansion panel to enhance revenue opportunities.
Cost-cutting measures to reduce operating expenses and achieve positive cash flows by the end of 2026.
Cash, cash equivalents, and investments totaled $561.9 million at the end of March 2024, providing financial stability.
Net loss of $78.2 million for the first quarter of 2024.
Reduction in headcount by approximately 195 employees as part of cost-cutting measures.
First quarter revenue below expectations due to delayed instrument purchases by customers.
Insights
First quarter results:
- Revenue of
compared with$38.8 million in the prior-year period.$38.9 million - Instrument revenue of
compared with$19.0 million in the prior-year period. Instrument revenue in the first quarter of 2024 included 28 RevioTM sequencing systems.$20.7 million - Consumables revenue of
compared with$16.0 million in the prior-year period.$14.0 million - Service and other revenue of
compared with$3.8 million in the prior-year period.$4.2 million
Gross profit for the first quarter of 2024 was
Operating expenses totaled
Net loss for the first quarter of 2024 was
Net loss per share for the first quarter of 2024 was
Cash, cash equivalents, and investments, excluding short- and long-term restricted cash, at March 31, 2024, totaled
Non-GAAP first quarter results (see accompanying tables for reconciliations of GAAP and non-GAAP measures):
Non-GAAP gross profit for the first quarter of 2024 was
Non-GAAP operating expenses totaled
Non-GAAP net loss for the first quarter of 2024 was
Non-GAAP net loss per share for the first quarter of 2024 was
Updates since PacBio's last earnings release
- Announced that the University of Tartu, host of
Estonia's National Biobank, selected the Revio to sequence 10,000 whole human genomes in an effort to adopt personalized medicine at scale and understand the underlying genetics of health, disease, and treatment outcomes. - Launched the PureTargetTM repeat expansion panel, a new library prep solution designed to enable the comprehensive analysis of 20 genes, including challenging-to-sequence genes with tandem repeat expansions, that are associated with severe neurological disorders.
- Initiated activities to reduce annualized run-rate operating expenses and the Company expects to achieve above the high end of our previously provided range of non-GAAP reduction of
to$50 million by the end of 2024 compared to our prior guidance of$75 million 5% operating expense growth.
"As previously shared, first quarter revenue came in below our original expectations as we saw an increasing number of customers delay instrument purchases, and, although consumables revenue grew
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its first quarter ended March 31, 2024, results today at 5:00 p.m. Eastern Time. Investors may listen to the call by dialing 1-888-349-0136, if outside the
About PacBio
PacBio (NASDAQ: PACB) is a premier life science technology company that designs, develops, and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. Our products and technologies stem from two highly differentiated core technologies focused on accuracy, quality and completeness which include our HiFi long-read sequencing and our SBB® short-read sequencing technologies. Our products address solutions across a broad set of research applications including human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. For more information, please visit www.pacb.com and follow @PacBio.
PacBio products are provided for Research Use Only. Not for use in diagnostic procedures.
Statement regarding use of non‐GAAP financial measures
PacBio reports non‐GAAP results for basic and diluted net income and loss per share, net income, net loss, gross margins, gross profit and operating expenses in addition to, and not as a substitute for, or because it believes that such information is superior to, financial measures calculated in accordance with GAAP. PacBio believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of PacBio's non-GAAP financial measures as tools for comparison.
PacBio's financial measures under GAAP include substantial charges that are listed in the itemized reconciliations between GAAP and non‐GAAP financial measures included in this press release. The amortization of acquired intangible assets excluded from GAAP financial measures relates to acquired intangible assets that were recorded as part of the purchase accounting during the year ended December 31, 2021. The amortization related to these intangible assets will occur in future periods until they are fully amortized. Management has excluded the effects of these items in non‐GAAP measures to assist investors in analyzing and assessing past and future operating performance. In addition, management uses non-GAAP measures to compare PacBio's performance relative to forecasts and strategic plans and to benchmark its performance externally against competitors.
PacBio encourages investors to carefully consider its results under GAAP, as well as its supplemental non‐GAAP information and the reconciliation between these presentations, to more fully understand its business. A reconciliation of PacBio's non-GAAP financial measures to their most directly comparable financial measure stated in accordance with GAAP has been provided in the financial statement tables included in this press release. PacBio is unable to reconcile future-looking non-GAAP guidance included in this press release without unreasonable effort because certain items that impact this measure are out of PacBio's control and/or cannot be reasonably predicted at this time.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the
The unaudited condensed consolidated financial statements that follow should be read in conjunction with the notes set forth in PacBio's Quarterly Report on Form 10-Q when filed with the Securities and Exchange Commission.
Contacts
Investors:
Todd Friedman
ir@pacb.com
Media:
pr@pacb.com
Pacific Biosciences of California, Inc. Unaudited Condensed Consolidated Statement of Operations | |||||
Three Months Ended | |||||
(in thousands, except per share amounts) | March 31, | December 31, | March 31, | ||
Revenue: | |||||
Product revenue | $ 35,009 | $ 54,001 | $ 34,654 | ||
Service and other revenue | 3,801 | 4,356 | 4,246 | ||
Total revenue | 38,810 | 58,357 | 38,900 | ||
Cost of Revenue: | |||||
Cost of product revenue | 22,447 | 40,421 | 25,164 | ||
Cost of service and other revenue | 3,738 | 3,496 | 3,792 | ||
Amortization of acquired intangible assets | 1,343 | 1,433 | 183 | ||
Loss on purchase commitment | — | 3,436 | — | ||
Total cost of revenue | 27,528 | 48,786 | 29,139 | ||
Gross profit | 11,282 | 9,571 | 9,761 | ||
Operating Expense: | |||||
Research and development | 43,455 | 44,544 | 48,939 | ||
Sales, general and administrative | 43,753 | 45,996 | 39,818 | ||
Merger-related expenses | — | 63 | — | ||
Change in fair value of contingent consideration (1) | (70) | 1,100 | 12,256 | ||
Amortization of acquired intangible assets | 5,506 | 5,416 | — | ||
Total operating expense | 92,644 | 97,119 | 101,013 | ||
Operating loss | (81,362) | (87,548) | (91,252) | ||
Interest expense | (3,575) | (3,571) | (3,630) | ||
Other income, net | 6,759 | 8,383 | 6,867 | ||
Loss before benefit from income taxes | (78,178) | (82,736) | (88,015) | ||
Benefit from income taxes (2) | — | (718) | — | ||
Net loss | $ (78,178) | $ (82,018) | $ (88,015) | ||
Net loss per share: | |||||
Basic | $ (0.29) | $ (0.31) | $ (0.36) | ||
Diluted | $ (0.29) | $ (0.31) | $ (0.36) | ||
Weighted average shares outstanding used in calculating net loss per share: | |||||
Basic | 269,578 | 267,121 | 242,032 | ||
Diluted | 269,578 | 267,121 | 242,032 |
(1) | Change in fair value of contingent consideration during the three months ended March 31, 2024, December 31, 2023, and March 31, 2023 was due to fair value adjustments of milestone payments payable upon the achievement of the respective milestone event. |
(2) | A deferred income tax benefit during the three months ended December 31, 2023 is related to the release of the valuation allowance for deferred tax assets due to the recognition of deferred tax liabilities in connection with the Apton acquisition. |
Pacific Biosciences of California, Inc. Unaudited Condensed Consolidated Balance Sheets | ||||
(in thousands) | March 31, | December 31, | ||
Assets | ||||
Cash and investments | $ 561,914 | $ 631,416 | ||
Accounts receivable, net | 30,323 | 36,615 | ||
Inventory, net | 67,343 | 56,676 | ||
Prepaid and other current assets | 17,144 | 17,040 | ||
Property and equipment, net | 37,291 | 36,432 | ||
Operating lease right-of-use assets, net | 30,672 | 32,593 | ||
Restricted cash | 2,722 | 2,722 | ||
Intangible assets, net | 450,131 | 456,984 | ||
Goodwill | 462,261 | 462,261 | ||
Other long-term assets | 10,119 | 13,274 | ||
Total Assets | $ 1,669,920 | $ 1,746,013 | ||
Liabilities and Stockholders' Equity | ||||
Accounts payable | $ 21,006 | $ 15,062 | ||
Accrued expenses | 21,991 | 45,708 | ||
Deferred revenue | 23,473 | 21,872 | ||
Operating lease liabilities | 38,821 | 41,197 | ||
Contingent consideration liability | 19,480 | 19,550 | ||
Convertible senior notes, net | 892,545 | 892,243 | ||
Other liabilities | 3,587 | 9,077 | ||
Stockholders' equity | 649,017 | 701,304 | ||
Total Liabilities and Stockholders' Equity | $ 1,669,920 | $ 1,746,013 |
Pacific Biosciences of California, Inc. Reconciliation of Non-GAAP Financial Measures | ||||||
Three Months Ended | ||||||
(in thousands, except per share amounts) | March 31, | December 31, | March 31, | |||
GAAP net loss | $ (78,178) | $ (82,018) | $ (88,015) | |||
Change in fair value of contingent consideration (1) | (70) | 1,100 | 12,256 | |||
Amortization of acquired intangible assets | 6,849 | 6,849 | 228 | |||
Merger-related expenses | — | 63 | — | |||
Benefit from income taxes (2) | — | (718) | — | |||
Restructuring (3) | 2,224 | |||||
Non-GAAP net loss | $ (71,399) | $ (72,500) | $ (75,531) | |||
GAAP net loss per share | $ (0.29) | $ (0.31) | $ (0.36) | |||
Change in fair value of contingent consideration (1) | — | — | 0.05 | |||
Amortization of acquired intangible assets | 0.03 | 0.03 | — | |||
Merger-related expenses | — | — | — | |||
Benefit from income taxes (2) | — | — | — | |||
Restructuring (3) | — | 0.01 | — | |||
Non-GAAP net loss per share | $ (0.26) | $ (0.27) | $ (0.31) | |||
GAAP gross profit | $ 11,282 | $ 9,571 | $ 9,761 | |||
Amortization of acquired intangible assets | 1,343 | 1,433 | 183 | |||
Restructuring (3) | — | 112 | — | |||
Non-GAAP gross profit | $ 12,625 | $ 11,116 | $ 9,944 | |||
GAAP gross profit % | 29 % | 16 % | 25 % | |||
Non-GAAP gross profit % | 33 % | 19 % | 26 % | |||
GAAP total operating expense | $ 92,644 | $ 97,119 | $ 101,013 | |||
Change in fair value of contingent consideration (1) | 70 | (1,100) | (12,256) | |||
Amortization of acquired intangible assets | (5,506) | (5,416) | (45) | |||
Merger-related expenses | — | (63) | — | |||
Restructuring (3) | — | (2,112) | — | |||
Non-GAAP total operating expense | $ 87,208 | $ 88,428 | $ 88,712 |
__________________ | |
(1) | Change in fair value of contingent consideration was due to fair value adjustments of milestone payments payable upon the achievement of the respective milestone event. |
(2) | A deferred income tax benefit during the three months ended December 31, 2023 is related to the release of the valuation allowance for deferred tax assets due to the recognition of deferred tax liabilities in connection with the Apton acquisition. |
(3) | Restructuring costs during the three months ended December 31, 2023 consist primarily of employee severance costs related to restructuring activities. |
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SOURCE Pacific Biosciences of California, Inc.
FAQ
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