PacBio Announces Preliminary Fourth Quarter and Full Year Revenue

Rhea-AI Summary

PacBio (NASDAQ: PACB) reported preliminary Q4 2024 revenue of $39.2 million and full-year 2024 revenue of $154.0 million, representing year-over-year declines of 33% and 23% respectively. The company shipped 23 Revio and 7 Vega sequencing systems in Q4, with instrument revenue at $15.3 million, down from $35.1 million in Q4 2023.

Notable developments include the early launch of the Vega benchtop system and SPRQ chemistry introduction, enabling sub-$500 HiFi genome sequencing on the Revio system. Consumables revenue remained stable at $18.8 million, with Revio achieving approximately $240,000 in annualized pull-through. The company strengthened its balance sheet by restructuring $459 million in convertible notes and ended 2024 with approximately $390 million in cash and investments.

Positive

• Early launch of Vega benchtop system expanding market reach
• Introduction of SPRQ chemistry enabling sub-$500 HiFi genome sequencing
• Strategic partnership with Berry Genomics for clinical market expansion
• Debt restructuring improving balance sheet position
• Strong cash position of $390 million at year-end

Negative

• Q4 2024 revenue declined 33% YoY to $39.2 million
• Full-year 2024 revenue dropped 23% YoY to $154.0 million
• Instrument revenue decreased 56% YoY to $15.3 million in Q4
• Flat consumables revenue at $18.8 million YoY

Insights

Financial Analyst

The preliminary Q4 results reveal concerning trends for PacBio, with revenue declining 33% year-over-year to $39.2 million. Most notably, instrument revenue dropped significantly from $35.1 million to $15.3 million, suggesting challenges in market penetration despite new product launches. The flat consumables revenue of $18.8 million and modest $240,000 Revio annualized pull-through indicate installed base growth.

The debt restructuring, exchanging $459 million of convertible notes for $200 million new notes plus equity and cash, while dilutive, improves the balance sheet flexibility. With $390 million in cash reserves, the company has runway to execute its growth strategy, though cash burn remains a key metric to monitor.

Medical Research Analyst

The launch of the Vega benchtop system and SPRQ chemistry represents strategic positioning in the competitive sequencing market. The sub-$500 HiFi genome capability on Revio and 4-fold lower DNA input requirements are technically significant advances that could accelerate adoption in both research and clinical settings. The early access agreement with Berry Genomics for prenatal and newborn screening applications in China demonstrates potential clinical market penetration, though the modest 23 Revio and 7 Vega system placements suggest cautious market reception.

Market Research Analyst

The 23% full-year revenue decline to $154.0 million reflects broader market challenges, including budget constraints in academic/research sectors and competitive pressures. The strategic focus on clinical markets through partnerships like Berry Genomics attempts to diversify revenue streams, but the slow initial Vega adoption (7 units) suggests a lengthy market development phase ahead. The combination of declining instrument sales and flat consumables revenue indicates PacBio is struggling to expand its market presence despite technological improvements. The market will likely require demonstrated clinical validation and expanded application base to drive meaningful growth.

Commenced shipment of the Vega™ benchtop system ahead of schedule, bringing HiFi sequencing to more customers

Launched SPRQ chemistry, enabling the sub-$500 HiFi genome on the Revio® system

MENLO PARK, Calif., Jan. 14, 2025 (GLOBE NEWSWIRE) -- PacBio (NASDAQ: PACB), a leading developer of high-quality, highly accurate sequencing solutions, announced preliminary unaudited revenue for the fourth quarter of 2024 and full year 2024 of $39.2 million and $154.0 million representing a year-over-year decline of 33% and 23%, respectively.

"Though challenging, 2024 was a productive year for PacBio as we launched groundbreaking products, strengthened our balance sheet, and made significant progress in reducing cash burn,” said Christian Henry, President and CEO of PacBio. “I believe PacBio is on track to gain market share in 2025 and further enhance our financial position. The early feedback on the Vega System and SPRQ chemistry has been encouraging, and our expansion into the clinical market is beginning to take shape."

Business updates:

• Expanded long-read sequencing portfolio: Launched the Vega system, an innovative benchtop sequencing platform designed to make HiFi long-reads accessible to a broader customer base.
• Enhanced the Revio platform: Launched SPRQ chemistry, unlocking the sub-$500 HiFi long-read human genome and enabling Revio customers to sequence more samples with 4-fold lower DNA input requirements.
• Advanced clinical market strategy: Delivered our first Vega systems to Berry Genomics as part of an early access agreement, supporting their efforts to develop targeted assays for prenatal health and carrier and newborn screening programs in China and other global markets.
• Strengthened financial position: Enhanced our balance sheet by exchanging $459 million in aggregate principal of the 1.5% convertible senior notes due 2028 for $200 million in newly issued 1.5% convertible senior notes due August 2029, along with approximately 20.5 million shares of common stock and $50 million in cash.

Preliminary fourth quarter results:

• Preliminary, unaudited revenue for the fourth quarter of 2024 is expected to be approximately $39.2 million compared with $58.4 million in the prior-year period.
• Preliminary instrument revenue for the fourth quarter of 2024 is expected to be approximately $15.3 million, compared with $35.1 million for the fourth quarter of 2023. Preliminary instrument revenue in the fourth quarter of 2024 included 23 Revio sequencing systems and 7 Vega sequencing systems.
• Preliminary consumables revenue for the fourth quarter of 2024 is expected to be approximately $18.8 million, compared with $18.9 million for the fourth quarter of 2023. Revio annualized pull through in the fourth quarter is expected to be approximately $240,000.
• Preliminary service and other revenue for the fourth quarter of 2024 is expected to be approximately $5.1 million, compared with $4.4 million for the fourth quarter of 2023.
• Total preliminary unrestricted cash, cash equivalents, and investments balance as of December 31, 2024, is expected to be approximately $390 million.
  

PacBio is scheduled to present at the 43^rd Annual J.P. Morgan Healthcare Conference on January 14, 2025, at 4:30 p.m. Pacific Time. PacBio plans to make the presentation available on the Events & Presentations Section of PacBio's website at investor.pacificbiosciences.com. The information posted on or that can be accessed through PacBio's website, including PacBio's updated corporate presentation, is not incorporated by reference into this press release, and the inclusion of PacBio's website address is an inactive textual reference only.

The preliminary unaudited financial information set forth above is subject to revision and is anticipated to be finalized when the Company files its 2024 Annual Report on Form 10-K. PacBio's final, audited financial results could differ materially from the preliminary estimates above, which are not a comprehensive statement of PacBio's financial results and are not necessarily indicative of the results to be expected as of or for the fiscal period ended December 31, 2024, or any future period. Accordingly, you should not place undue reliance on these preliminary estimates. PacBio expects to report its fourth quarter 2024 results during a conference call in February, at which point it will discuss its 2024 financial results in more detail.

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.

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 U.S. Private Securities Litigation Reform Act of 1995, including statements relating to PacBio's preliminary unaudited financial information as of and for the periods ended December 31, 2024 as well as our expectations for future operating results, revenue and guidance; the availability or timing of PacBio's final financial results as of and for the periods ended December 31, 2024; the future availability, uses, accuracy, coverage, advantages, quality or performance of, or benefits or expected benefits of using, PacBio products or technologies, including Revio, Vega and Onso; and other future events. Reported results and orders for Revio and Vega should not be considered an indication of future performance or results. You should not place undue reliance on forward-looking statements because they are subject to assumptions, risks, and uncertainties that could cause actual outcomes and results to differ materially from currently anticipated results. These risks include, but are not limited to, challenges inherent in developing, manufacturing, launching, marketing and selling new products, and achieving anticipated new sales; potential cancellation of existing instrument orders; potential product performance and quality issues and potential delays in development and commercialization timelines; assumptions, risks and uncertainties related to the ability to attract new customers and retain and grow sales from existing customers; rapidly changing technologies and extensive competition in genomic sequencing that could make the products PacBio is developing obsolete or non-competitive; supply chain risks; customers and prospective customers curtailing or suspending activities utilizing PacBio's products; the impact of U.S. export restrictions on the shipment of PacBio products to certain countries; the possible loss of key employees, customers, or suppliers; regulatory uncertainty; third-party claims alleging infringement of patents and proprietary rights or seeking to invalidate PacBio's patents or proprietary rights; and other risks associated with macroeconomic conditions such as uncertain capital markets, fluctuating inflation rates, and geopolitical conflicts. Additional factors that could materially affect actual results can be found in PacBio's most recent filings with the Securities and Exchange Commission, including PacBio's most recent reports on Forms 8-K, 10-K, and 10-Q, and include those listed under the caption "Risk Factors." These forward-looking statements, including PacBio's preliminary unaudited financial information, are based on current expectations and speak only as of the date hereof; except as required by law, PacBio disclaims any obligation to revise or update these forward-looking statements to reflect events or circumstances in the future, even if new information becomes available.

Contacts

Investors:
Todd Friedman
650.521.8450
ir@pacb.com

Media:
pr@pacb.com

FAQ

What was PacBio's (PACB) Q4 2024 revenue and how did it compare to last year?

PacBio's Q4 2024 revenue was $39.2 million, representing a 33% decline compared to $58.4 million in Q4 2023.

How many Revio and Vega systems did PACB ship in Q4 2024?

PacBio shipped 23 Revio sequencing systems and 7 Vega sequencing systems in Q4 2024.

What is the significance of PACB's new SPRQ chemistry for Revio systems?

SPRQ chemistry enables sub-$500 HiFi long-read human genome sequencing and allows Revio customers to sequence more samples with 4-fold lower DNA input requirements.

How much cash and investments did PACB have at the end of 2024?

PacBio had approximately $390 million in total unrestricted cash, cash equivalents, and investments as of December 31, 2024.

What was PACB's debt restructuring deal in 2024?

PacBio exchanged $459 million in 1.5% convertible notes due 2028 for $200 million in new notes due 2029, plus 20.5 million shares of common stock and $50 million in cash.