Pacific Biosciences of California (PACB) came out with a quarterly loss of $0.26 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.31 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this maker of genetic analysis technology would post a loss of $0.31 per share when it actually produced a loss of $0.27, delivering a surprise of 12.90%.Over the last four quarters, the company has surpassed consensus EPS estimates three ...

Revenue Performance - Revenue for the three months ended March 31, 2024, decreased slightly to $38.8 million, compared to $38.9 million for the same period in 2023[119]. - Instrument revenue decreased by $1.7 million, or 8%, to $19.0 million, primarily due to the sale of 28 Revio systems compared to 32 in the prior year[126]. - Consumables revenue increased by $2.0 million, or 15%, to $16.0 million, driven by higher Revio consumables sales[127]. Profitability and Loss - Gross profit increased by $1.5 million, or 16%, to $11.3 million, with a gross margin of 29% for the three months ended March 31, 2024, compared to 25% in the prior year[130]. - Operating loss decreased by $9.9 million, or 11%, to $81.4 million for the three months ended March 31, 2024[124]. - The company reported a net loss of $78.2 million for the three months ended March 31, 2024, compared to a net loss of $88.0 million for the same period in 2023[146][147]. Expenses - Research and development expenses decreased by $5.5 million, or 11%, to $43.5 million, primarily due to restructuring activities[131]. - Sales, general, and administrative expenses increased by $3.9 million, or 10%, to $43.8 million, driven by an increase in personnel expenses[132]. Cash Flow and Investments - Cash used in operating activities was $75.7 million for Q1 2024, a decrease from $94.7 million in Q1 2023, indicating improved cash flow management[144][146][147]. - Cash used in investing activities for Q1 2024 was $34.1 million, significantly lower than $72.6 million in Q1 2023, reflecting a strategic shift in investment[144][149]. - The company provided $6.6 million in cash from financing activities in Q1 2024, compared to $195.9 million in Q1 2023, indicating a decrease in capital raised[144][150][151]. Cash Position - Cash, cash equivalents, and short-term investments were $561.9 million at March 31, 2024, representing an 11% decrease compared to December 31, 2023[119]. - As of March 31, 2024, the company had cash, cash equivalents, and investments totaling $561.9 million, down from $631.4 million as of December 31, 2023[139]. Future Outlook and Initiatives - The company plans to reduce certain annualized run-rate operating expenses by the end of 2024, including workforce reductions and facilities downsizing[117]. - The company implemented efficiency and expense reduction initiatives expected to lower annualized operating expenses by the end of 2024[141]. - The median sales cycle for Revio instrument purchases increased more than expected, attributed to funding uncertainties and procurement delays[121]. - The company expects to achieve a milestone payment of $25.0 million upon reaching $50 million in revenue from Apton's technology within five years of the acquisition[135][143]. Investment Portfolio and Interest Expenses - The fair value of the company's investment portfolio could be affected by a hypothetical 100 basis-point change in interest rates, impacting it by approximately $3.1 million[161]. - The company incurred interest expenses of $3.6 million for both Q1 2024 and Q1 2023, primarily related to convertible senior notes[137]. - The company achieved a milestone payment of approximately $100.9 million in cash and 9.0 million shares to former Omniome securityholders following a milestone achievement in September 2023[134].

[Q1 2024 Performance Summary](index=1&type=section&id=Q1%202024%20Performance%20Summary) PacBio's Q1 2024 revenue was nearly flat at $38.8 million due to delayed instrument purchases, though gross margin improved and net loss narrowed Q1 2024 Revenue Breakdown (vs. Q1 2023) | Revenue Category | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Instrument Revenue | $19.0M | $20.7M | -8.2% | | Consumables Revenue | $16.0M | $14.0M | +14.3% | | Service & Other Revenue | $3.8M | $4.2M | -9.5% | | **Total Revenue** | **$38.8M** | **$38.9M** | **-0.3%** | Q1 2024 Key GAAP Financials (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Gross Profit | $11.3M | $9.8M | | Gross Margin | 29% | 25% | | Operating Expenses | $92.6M | $101.0M | | Net Loss | $(78.2)M | $(88.0)M | | Net Loss Per Share | $(0.29) | $(0.36) | Q1 2024 Key Non-GAAP Financials (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Non-GAAP Gross Profit | $12.6M | $9.9M | | Non-GAAP Gross Margin | 33% | 26% | | Non-GAAP Operating Expenses | $87.2M | $88.7M | | Non-GAAP Net Loss | $(71.4)M | $(75.5)M | | Non-GAAP Net Loss Per Share | $(0.26) | $(0.31) | - Key operational updates include the selection of the Revio system by the University of Tartu for a 10,000-genome project, the launch of the PureTarget repeat expansion panel for neurological disorder research, and the initiation of a significant cost reduction program[10](index=10&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management attributed Q1 revenue miss to delayed instrument purchases, focusing on commercial execution, product pipeline, and a cost-reduction plan for positive cash flow by 2026 - Management cited delayed instrument purchases as the primary reason for missing revenue expectations, although consumables revenue grew **15%** year-over-year[11](index=11&type=chunk) - Strategic priorities include improving commercial execution and developing new products such as a benchtop long-read platform and high-throughput short-read and long-read platforms[11](index=11&type=chunk) - The company has taken swift action to reduce its cost structure, including a headcount reduction of **195** employees. This is expected to lower the non-GAAP annualized expense run rate by more than **$75 million** by the end of 2024[11](index=11&type=chunk) - These cost-saving measures are part of a broader plan to achieve positive cash flows by the end of **2026**, consistent with the company's long-term guidance[11](index=11&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Q1 2024, including the Statement of Operations, Balance Sheets, and GAAP to non-GAAP reconciliations [Unaudited Condensed Consolidated Statement of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Operations) Q1 2024 total revenue was $38.8 million, with gross profit improving to $11.3 million, and net loss narrowing to $78.2 million Q1 2024 Statement of Operations Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $38,810 | $38,900 | | Gross Profit | $11,282 | $9,761 | | Total Operating Expense | $92,644 | $101,013 | | Operating Loss | $(81,362) | $(91,252) | | Net Loss | $(78,178) | $(88,015) | | Net Loss Per Share (Basic) | $(0.29) | $(0.36) | [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, PacBio reported $561.9 million in cash and investments, with total assets at $1.67 billion and liabilities at $1.02 billion Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and investments | $561,914 | $631,416 | | Inventory, net | $67,343 | $56,676 | | Total Assets | $1,669,920 | $1,746,013 | | Convertible senior notes, net | $892,545 | $892,243 | | Total Stockholders' Equity | $649,017 | $701,304 | [Reconciliation of Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP figures, showing a Q1 2024 non-GAAP net loss of $71.4 million after adjustments Q1 2024 GAAP to Non-GAAP Net Loss Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP net loss** | **$(78,178)** | | Change in fair value of contingent consideration | $(70) | | Amortization of acquired intangible assets | $6,849 | | **Non-GAAP net loss** | **$(71,399)** | Q1 2024 GAAP to Non-GAAP Gross Profit Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP gross profit** | **$11,282** | | Amortization of acquired intangible assets | $1,343 | | **Non-GAAP gross profit** | **$12,625** | [Disclosures](index=2&type=section&id=Disclosures) This section explains PacBio's use of non-GAAP measures for comparability and internal planning, alongside forward-looking statements detailing risks and uncertainties - PacBio reports non-GAAP measures because it believes they provide consistency and comparability with past financial performance, and uses them for internal forecasting and strategic planning[14](index=14&type=chunk)[15](index=15&type=chunk) - The report contains forward-looking statements concerning cost-saving plans, financial guidance, and new product impacts. These are subject to risks such as competition, supply chain interruptions, and potential product performance issues[17](index=17&type=chunk)

Pacific Biosciences of California, Inc. (PACB) , popularly known as PacBio, is scheduled to release first-quarter 2024 results on May 9.In the last reported quarter, the company’s adjusted loss per share of 27 cents was narrower than the Zacks Consensus Estimate of a loss of 31 cents per share. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 13.1%, on average.Let’s see how things have shaped up prior to this announc ...

Pacific Biosciences of California (PACB) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this maker of genetic analysis technology have returned -49.7% over the past month versus the Zacks S&P 500 composite's -4.2% change. The Zacks Medical - Instruments industry, to which Pacific Biosciences belongs, has lost 4.3% over this period. Now the key question is: Where could the st ...

Pacific Biosciences of California (PACB) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by th ...

Pacific Biosciences of California, Inc. (PACB) , popularly known as PacBio, recently announced preliminary revenues for first-quarter 2024. Despite the soft preliminary results, the company’s shares gained 7.1% in the pre-market trading session.The company is scheduled to release first-quarter results on May 9.Per the preliminary report, first-quarter 2024 total revenues are estimated to be $38.8 million, down 0.3% year over year. The Zacks Consensus Estimate of $50 million lies above the preliminary figure ...

Announces Plan to Reduce Annualized Operating Expense Run Rate by $50 - $75 Million Q1 2024 Earnings Conference Call Scheduled for May 9, 2024 MENLO PARK, Calif., April 16, 2024 /PRNewswire/ – PacBio (NASDAQ: PACB) today announced preliminary, unaudited revenue for the quarter ended March 31, 2024. Preliminary First Quarter Results Preliminary revenue of $38.8 million, roughly flat compared with $38.9 million in the prior-year period. Instrument revenue of $19.0 million compared with $20.7 million in the pr ...

Pacific Biosciences of California, Inc. (PACB) , popularly known as PacBio, has been gaining from its slew of strategic deals over the past few months. The optimism, led by a solid fourth-quarter 2023 performance and its product development activities, is expected to contribute further. However, stiff competition and macroeconomic concerns persist.Over the past year, this currently Zacks Rank #3 (Hold) stock has lost 70.5% against the 10.1% growth of the industry. The S&P 500 rose 24.9% in the same time fra ...

MENLO PARK, Calif., March 22, 2024 /PRNewswire/ -- PacBio (NASDAQ: PACB), a leading provider of high-quality, highly accurate sequencing platforms, today announced that the Compensation Committee of the Company's Board of Directors granted a non-qualified stock option (the "Option") covering an aggregate of 79,600 shares of PacBio common stock and restricted stock units ("RSUs") covering 39,800 shares of PacBio common stock to a recently hired employee under the Pacific Biosciences 2020 Inducement Equity In ...