Menlo Park, California, USA
August 7, 2024
PacBio (NASDAQ: PACB) today announced financial results for the quarter ended June 30, 2024.
Second quarter results:
- Revenue of $36.0 million compared with $47.6 million in the prior-year period.
- Instrument revenue of $14.7 million compared with $29.9 million in the prior-year period. Instrument revenue in the second quarter of 2024 included 24 Revio™ sequencing systems.
- Consumables revenue of $17.0 million compared with $13.7 million in the prior-year period.
- Service and other revenue of $4.3 million compared with $3.9 million in the prior-year period.
Gross profit for the second quarter of 2024 was $5.9 million, which included $4.6 million in restructuring expenses and $2.6 million related to the amortization of acquired intangible assets, compared with $15.5 million for the second quarter of 2023.
Operating expenses totaled $181.8 million for the second quarter of 2024, compared to $88.7 million for the second quarter of 2023. Operating expenses for the second quarter of 2024 included a non-cash goodwill impairment charge of $93.2 million due to, among other factors, the decline in PacBio’s stock price during the quarter, $13.4 million of restructuring expenses, and $4.2 million related to the amortization of acquired intangible assets. Operating expenses for the second quarter of 2024 and the second quarter of 2023 included non-cash share-based compensation of $16.1 million and $16.7 million, respectively.
Net loss for the second quarter of 2024 was $173.3 million, compared to a net loss of $69.8 million for the second quarter of 2023.
Net loss per share for the second quarter of 2024 was $0.64, compared to net loss per share of $0.28 for the second quarter of 2023.
Net loss and net loss per share included $93.2 million of goodwill impairment charges, $18.0 million of restructuring expenses, and $6.9 million related to the amortization of acquired intangible assets.
Cash, cash equivalents, and investments, excluding short- and long-term restricted cash, at June 30, 2024, totaled $509.8 million, compared to $631.4 million at December 31, 2023.
Non-GAAP second quarter results (see accompanying tables for reconciliations of GAAP and non-GAAP measures):
Non-GAAP gross profit for the second quarter of 2024 was $13.2 million compared with $15.7 million for the second quarter of 2023 and a non-GAAP gross margin of 37% in the second quarter of 2024 compared to 33% for the second quarter of 2023.
Non-GAAP operating expenses totaled $71.0 million for the second quarter of 2024, compared to $86.7 million for the second quarter of 2023.
Non-GAAP net loss for the second quarter of 2024 was $55.2 million, compared to a non-GAAP net loss of $65.6 million for the second quarter of 2023.
Non-GAAP net loss per share for the second quarter of 2024 was $0.20 compared to a non-GAAP net loss per share of $0.26 for the second quarter of 2023.
Updates since PacBio’s last earnings release
- Announced that Precision Health Research Singapore (PRECISE) has chosen the Revio HiFi sequencing system for Singapore’s Long-Read Sequencing Flagship Project aiming to generate the largest long-read sequencing dataset in Southeast Asia and marking a significant advancement for precision medicine in Singapore.
- Delivered multiple Revios to Quest Diagnostics to support Quest’s development of its tests for neurological disorders based on the advantages of our recently launched PureTarget repeat expansion panel.
- Announced that Ambry Genetics has joined the collaboration with the GREGoR consortium and the University of California, Irvine to sequence up to 7,000 long-read HiFi genomes over three years, advancing rare disease research.
- Announced that Novogene is using Revio to expand the capabilities of its new lab in Munich, Germany to help enable customers to scale their research across a broad range of applications including rare diseases, cancer, microbes, and agriculture in a cost-effective way.
- Launched the first free, publicly available HiFi long-read variant frequency database with the Consortium for Long-Read Sequencing (CoLoRS), providing essential genetic variant data for rare disease researchers.
- Implemented PacBio Capital’s new Revio rental program with our leasing partner Mitsubishi HC Capital giving eligible U.S. based customers another option to bring Revio in-house with no upfront capital for just over $20,000 per month.
“In the second quarter, we continued to see headwinds in the capital equipment market, particularly in Europe and Asia. However, there were several positive developments that give us increasing confidence that revenue will accelerate in the second half of this year and into 2025,” said Christian Henry, President and Chief Executive Officer. “For example, population genomic programs across the globe utilizing Revio are just getting started and hospitals and diagnostic companies are increasingly leveraging the comprehensive power of HiFi sequencing and adopting Revio in their clinical research programs. Operationally, we remain on track to reduce annual run rate expenses by more than $75 million without delaying the key product development programs that will drive revenue growth in 2025 and beyond.”
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