PacBio Announces Record Revenue in First Quarter 2023
First quarter results
- Revenue of
$38.9 million 17% increase compared with$33.2 million - Shipped 38 sequencing systems in the first quarter, including 32 Revio systems and 6 Sequel IIe systems.
- Instrument revenue of
$20.7 million $15.6 million - Consumables revenue of
$14.0 million $12.7 million - Service and other revenue of
$4.2 million $4.9 million
Gross profit for the first quarter of 2023 was
Operating expenses totaled
Net loss for the first quarter of 2023 was
Net loss per share for the first quarter of 2023 was
GAAP and non-GAAP gross profit, net loss, and net loss per share in the first quarter of 2023 reflect adjustments of approximately
Cash, cash equivalents, and investments, excluding short- and long-term restricted cash, at March 31, 2023, totaled
Updates since our last earnings release
- Commenced commercial shipment of the Revio sequencing system and shipped 32 systems in the first quarter.
- Received our first orders for the Onso short-read sequencing system.
- Released new workflows in collaboration with Corteva Agriscience that enable the sequencing of thousands of plant and microbial genome samples annually.
- Introduced new Nanobind DNA Extraction kits, compatible with leading automation platforms, that facilitate high-quality DNA extraction from diverse samples in a high throughput setting.
- Launched 'Paraphase,' an informatics method that accurately genotypes gene paralogs and pseudogenes, allowing for improved variant calling, copy number analysis, and phasing.
"PacBio is off to a strong start this year with record quarterly revenue. The Revio launch is exceeding our expectations with our customers achieving performance above our specifications for the system," said Christian Henry, President and Chief Executive Officer. "We've shipped to dozens of customers worldwide who've shared their excitement for deploying Revio's paradigm-changing throughput and economics. Strong customer demand continued in the first quarter and we ended Q1 with our second consecutive quarter of record backlog."
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its first quarter ended March 31, 2023, results today at 4:30 p.m. Eastern Time. Investors may listen to the call by dialing 1-888-349-0136, if outside the
About PacBio
Pacific Biosciences of California, Inc. (NASDAQ: PACB) is a premier life science technology company that is designing, developing, and manufacturing advanced sequencing solutions that enable scientists and clinical researchers to improve their understanding of the genome and ultimately, resolve genetically complex problems. Our products and technology under development stem from two highly differentiated core technologies focused on accuracy, quality, and completeness, which include our existing HiFi long-read sequencing technology and our emerging short-read Sequencing by Binding (SBB™) technology. Our products address solutions across a broad set of applications, including human genomics, 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
The Company 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. The Company 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 the Company's non-GAAP financial measures as tools for comparison.
The Company'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. Such intangible assets contribute to revenue generation and its amortization will recur 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 the Company's performance relative to forecasts and strategic plans and to benchmark its performance externally against competitors.
The Company 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 the Company'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.
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
650.521.8450
ir@pacb.com
Media:
Lizelda Lopez
pr@pacb.com
Pacific Biosciences of California, Inc. Unaudited Condensed Consolidated Statement of Operations (in thousands, except per share amounts) | |||||
Three Months Ended | |||||
March 31, 2023 | December 31, 2022 | March 31, 2022 | |||
Revenue: | |||||
Product revenue | $ 34,654 | $ 22,771 | $ 28,244 | ||
Service and other revenue | 4,246 | 4,582 | 4,929 | ||
Total revenue | 38,900 | 27,353 | 33,173 | ||
Cost of Revenue: | |||||
Cost of product revenue | 25,164 | 15,045 | 14,820 | ||
Cost of service and other revenue | 3,792 | 3,280 | 4,015 | ||
Amortization of intangible assets | 183 | 183 | 183 | ||
Loss on purchase commitment | — | 3,705 | — | ||
Total cost of revenue | 29,139 | 22,213 | 19,018 | ||
Gross profit | 9,761 | 5,140 | 14,155 | ||
Operating Expense: | |||||
Research and development | 48,939 | 42,623 | 52,937 | ||
Sales, general and administrative | 39,818 | 45,003 | 39,804 | ||
Change in fair value of contingent consideration (1) | 12,256 | 4,598 | (1,063) | ||
Total operating expense | 101,013 | 92,224 | 91,678 | ||
Operating loss | (91,252) | (87,084) | (77,523) | ||
Interest expense | (3,630) | (3,648) | (3,697) | ||
Other income (expense), net | 6,867 | 6,348 | (279) | ||
Loss before expense (benefit) from income taxes | (88,015) | (84,384) | (81,499) | ||
Expense (benefit) from income taxes | — | — | — | ||
Net loss | $ (88,015) | $ (84,384) | $ (81,499) | ||
Net loss per share: | |||||
Basic | $ (0.36) | $ (0.37) | $ (0.37) | ||
Diluted | $ (0.36) | $ (0.37) | $ (0.37) | ||
Shares used in computing net loss per share: | |||||
Basic | 242,032 | 226,241 | 222,289 | ||
Diluted | 242,032 | 226,241 | 222,289 | ||
__________________ | |
(1) | Change in fair value of contingent consideration during the three months ended March 31, 2023, December 31, 2022, and March 31, 2022 was due to fair value adjustments of milestone payments payable upon the commercialization of acquired IPR&D. |
Pacific Biosciences of California, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands) | ||||
March 31, | December 31, | |||
Assets | ||||
Cash and investments | $ 874,892 | $ 772,318 | ||
Accounts receivable, net | 29,589 | 18,786 | ||
Inventory, net | 61,955 | 50,381 | ||
Prepaid and other current assets | 14,375 | 10,289 | ||
Property and equipment, net | 40,833 | 41,580 | ||
Operating lease right-of-use assets, net | 38,247 | 39,763 | ||
Restricted cash | 3,222 | 3,222 | ||
Intangible assets, net | 410,011 | 410,245 | ||
Goodwill | 409,974 | 409,974 | ||
Other long-term assets | 13,319 | 10,528 | ||
Total Assets | $ 1,896,417 | $ 1,767,086 | ||
Liabilities and Stockholders' Equity | ||||
Accounts payable | $ 17,390 | $ 12,028 | ||
Accrued expenses | 19,380 | 32,596 | ||
Deferred revenue | 32,715 | 32,292 | ||
Operating lease liabilities | 47,987 | 49,956 | ||
Contingent consideration liability | 184,350 | 172,094 | ||
Convertible senior notes, net | 896,839 | 896,683 | ||
Other liabilities | 5,639 | 8,533 | ||
Stockholders' equity | 692,117 | 562,904 | ||
Total Liabilities and Stockholders' Equity | $ 1,896,417 | $ 1,767,086 | ||
Pacific Biosciences of California, Inc. Reconciliation of Non-GAAP Financial Measures (in thousands, except per share amounts) | ||||||
Three Months Ended | ||||||
March 31, | December 31, | March 31, | ||||
GAAP net loss | $ (88,015) | $ (84,384) | $ (81,499) | |||
Change in fair value of contingent consideration (1) | 12,256 | 4,598 | (1,063) | |||
Amortization of acquired intangible assets | 228 | 228 | 228 | |||
Non-GAAP net loss | $ (75,531) | $ (79,558) | $ (82,334) | |||
GAAP net loss per share | $ (0.36) | $ (0.37) | $ (0.37) | |||
Change in fair value of contingent consideration (1) | 0.05 | 0.02 | — | |||
Amortization of acquired intangible assets | — | — | — | |||
Other adjustments and rounding differences | — | — | — | |||
Non-GAAP net loss per share | $ (0.31) | $ (0.35) | $ (0.37) | |||
GAAP gross profit | $ 9,761 | $ 5,140 | $ 14,155 | |||
Amortization of acquired intangible assets | 183 | 183 | 183 | |||
Non-GAAP gross profit | $ 9,944 | $ 5,323 | $ 14,338 | |||
GAAP gross profit % | 25 % | 19 % | 43 % | |||
Non-GAAP gross profit % | 26 % | 19 % | 43 % | |||
GAAP total operating expense | $ 101,013 | $ 92,224 | $ 91,678 | |||
Change in fair value of contingent consideration (1) | (12,256) | (4,598) | 1,063 | |||
Amortization of acquired intangible assets | (45) | (45) | (45) | |||
Non-GAAP total operating expense | $ 88,712 | $ 87,581 | $ 92,696 | |||
__________________ | |
(1) | Change in fair value of contingent consideration was related to fair value adjustments of milestone payments payable upon the commercialization of acquired IPR&D. |
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SOURCE Pacific Biosciences of California, Inc.
