Standard BioTools(LAB) - 2024 Q4 - Annual Results

Financial Performance - Standard BioTools reported a revenue of $174 million from two acquisitions, with a path to profitability by 2026[43]. - Q3 2024 total revenue was$ 45 million, a decrease of 5% year-over-year, with consumables revenue growing by 13% to $14 million[68]. - The company reported a net loss of$ 27 million for Q3 2024, an improvement of $14 million compared to the previous year[76]. - Instrument revenue declined by 42% year-over-year to$ 6 million, attributed to continued capital spending constraints[70]. - Collaboration and other revenue increased by 10% year-over-year to $1 million[68]. Operational Efficiency - The company achieved a 32% improvement in adjusted EBITDA year-to-date Q3 2024, with a 98% on-time delivery rate in Q4 2024 compared to 78% in Q4 2022[27]. - Non-GAAP operating expenses were reduced by 17% year-over-year from 2022 to 2023, contributing to a 53% decrease in cash use[33]. - Operating expenses for Q3 2024 were reduced by 24% year-over-year to$ 40 million, representing 89% of revenue[74]. - Standard BioTools has reduced customer complaints by fourfold and improved delivery reliability through lean transformation initiatives[43]. - The company is focused on increasing ROI and diversifying risk while maintaining operational efficiency[64]. Market Strategy - Standard BioTools is focusing on expanding its service offerings to increase technology adoption in the biopharma market, which is estimated at $13 billion[13]. - The company aims to transition to an 80% consumable and services mix, enhancing its revenue stability[43]. - The product mix is shifting towards higher-margin consumables, targeting an increase from 53% to 65% gross margin by Q3[13]. - The proteomics market is projected to grow at a CAGR of 14.9%, with a total addressable market of$ 110 billion by 2032[50]. Mergers and Acquisitions - The merger with SomaLogic is expected to generate $250 million in EBITDA synergies by FY 2026[35]. - The company has a net cash position of$ 311 million as of Q3 2024, enabling future M&A activities[39]. Research and Development Expenses - GAAP R&D expenses for Q3 YTD 2024 were $48.4 million, compared to$ 19.0 million in Q3 YTD 2023, reflecting a significant increase[88]. - Non-GAAP R&D expenses for Q3 YTD 2024 were $41.3 million, up from$ 17.4 million in Q3 YTD 2023, indicating a growth of approximately 137%[88]. - Stock-based compensation in R&D for Q3 YTD 2024 was $4.5 million, consistent with the previous year[88]. - Depreciation and amortization in R&D for Q3 YTD 2024 was$ 2.6 million, consistent with the previous year[88]. Selling, General and Administrative Expenses - GAAP SG&A expenses for Q3 YTD 2024 reached $119.0 million, compared to$ 66.2 million in Q3 YTD 2023, representing an increase of about 80%[88]. - Non-GAAP SG&A expenses for Q3 YTD 2024 were $95.9 million, up from$ 56.9 million in Q3 YTD 2023, showing an increase of approximately 68%[88]. - Stock-based compensation in SG&A for Q3 YTD 2024 was $18.9 million, compared to$ 7.8 million in Q3 YTD 2023, reflecting a growth of about 142%[88]. - Depreciation and amortization in SG&A for Q3 YTD 2024 was $3.3 million, unchanged from the previous year[88]. - Loss on disposal of PP&E in SG&A for Q3 YTD 2024 was$ 0.4 million, compared to $0.1 million in Q3 YTD 2023[88]. Cash Position - Cash and equivalents at September 30, 2024, totaled$ 368 million, supporting ongoing growth initiatives[83]. - Market capitalization as of September 30, 2024, was $718 million, with an enterprise value of$ 350 million[83].