MENLO
PARK, Calif., May 9, 2024
/PRNewswire/ -- PacBio (NASDAQ: PACB) today announced
financial results for the quarter ended March 31, 2024.
First quarter results:
- Revenue of $38.8 million compared
with $38.9 million in the prior-year
period.
- Instrument revenue of $19.0
million compared with $20.7
million in the prior-year period. Instrument revenue in the
first quarter of 2024 included 28 RevioTM sequencing
systems.
- Consumables revenue of $16.0
million compared with $14.0
million in the prior-year period.
- Service and other revenue of $3.8
million compared with $4.2
million in the prior-year period.
Gross profit for the first quarter of 2024 was $11.3 million, representing a 16% increase
compared with $9.8 million for the
first quarter of 2023 and a gross margin of 29% in the first
quarter of 2024 compared to 25% for the first quarter of 2023.
Operating expenses totaled $92.6
million for the first quarter of 2024, compared to
$101.0 million for the first quarter
of 2023. Operating expenses for the first quarter of 2024 and the
first quarter of 2023 included non-cash share-based compensation of
$17.4 million and $16.0 million, respectively.
Net loss for the first quarter of 2024 was $78.2 million,
compared to a net loss of $88.0
million for the first quarter of 2023.
Net loss per share for the first quarter of 2024 was
$0.29, compared to net loss per share
of $0.36 for the first quarter of
2023.
Cash, cash equivalents, and investments, excluding short- and
long-term restricted cash, at March 31, 2024, totaled
$561.9 million, compared to
$631.4 million at December 31,
2023.
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
$12.6 million, representing a 27%
increase compared with $9.9 million
for the first quarter of 2023 and a non-GAAP gross margin of 33% in
the first quarter of 2024 compared to 26% for the first quarter of
2023.
Non-GAAP operating expenses totaled $87.2
million for the first quarter of 2024, compared to
$88.7 million for the first quarter
of 2023.
Non-GAAP net loss for the first quarter of 2024 was $71.4 million, compared to a non-GAAP net
loss of $75.5 million for the
first quarter of 2023.
Non-GAAP net loss per share for the first quarter of 2024 was
$0.26 compared to a non-GAAP net loss
per share of $0.31 for the first
quarter of 2023.
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 $50 million to $75
million by the end of 2024 compared to our prior guidance of
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
15% year over year, shipments were below our expectations," said
Christian Henry, President and Chief
Executive Officer. "We are focused on improving commercial
execution, developing new products that will drive our revenue,
including our benchtop long-read platform, high-throughput
short-read platform, and the core technology for our
high-throughput long-read platform, improving gross margin, and
reducing operating expenses. We've already made significant
progress on our plan to reduce our operating expenses, as we made
the difficult decision to reduce our headcount by approximately
195. The headcount reductions, along with the reduction in other
non-headcount-related expenses, are expected to reduce our non-GAAP
annualized expense run rate by more than $75
million by the end of 2024 as compared to our initial
guidance of 5% growth in 2024 operating expenses. This swift and
decisive action is a demonstration of our plan to achieve positive
cash flows by the end of 2026, as originally outlined in our
long-term guidance. We remain highly encouraged by PacBio's
long-term growth potential as we provide our customers with some of
the most advanced sequencing technologies, enabling scientists and
researchers to uncover even greater insights into the genome and
better understand biology and health."
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 U.S.,
by dialing 1-412-317-0459, requesting to join the "PacBio Q1
Earnings Call". The call will be webcast live and available for
replay at PacBio's website at
https://investor.pacificbiosciences.com.
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 U.S. Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact
are forward-looking statements, including statements relating to
PacBio's cost-saving plans and initiatives as well as the expected
financial impact and timing of these plans and initiatives;
PacBio's financial guidance and expectations for future periods;
developments affecting our industry and the markets in which we
compete, including the impact of new products and technologies; and
the availability, uses, accuracy, coverage, advantages, quality or
performance of, or benefits or expected benefits of using, PacBio
products or technologies; and, the impact of new products and
technologies. Reported results and orders for any instrument system
should not be considered an indication of future performance. You
should not place undue reliance on forward-looking statements
because they are subject to assumptions, risks, and uncertainties
and could cause actual outcomes and results to differ materially
from currently anticipated results, including, challenges inherent
in developing, manufacturing, launching, marketing and selling new
products, and achieving anticipated new sales; potential
cancellation of existing instrument orders; assumptions, risks and
uncertainties related to the ability to attract new customers and
retain and grow sales from existing customers; risks related to
PacBio's ability to successfully execute and realize the benefits
of acquisitions; the impact of U.S. export restrictions on the
shipment of PacBio products to certain countries; rapidly changing
technologies and extensive competition in genomic sequencing;
unanticipated increases in costs or expenses; interruptions or
delays in the supply of components or materials for, or
manufacturing of, PacBio products and products under development;
potential product performance and quality issues and potential
delays in development timelines; the possible loss of key
employees, customers, or suppliers; customers and prospective
customers curtailing or suspending activities using PacBio's
products; third-party claims alleging infringement of patents and
proprietary rights or seeking to invalidate PacBio's patents or
proprietary rights; risks associated with international operations;
and other risks associated with general macroeconomic conditions
and geopolitical instability. 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 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.
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,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
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,
2024
|
|
December 31,
2023
|
|
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,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/pacbio-announces-first-quarter-2024-financial-results-302141604.html
SOURCE Pacific Biosciences of California, Inc.
