PacBio (PACB) Q2 Earnings Beat Estimates, Revenues Down Y/Y

Core Viewpoint - Pacific Biosciences of California, Inc. (PacBio) reported mixed results for the second quarter of 2024, with adjusted loss per share beating estimates while revenues fell short of expectations [11]. Revenue Analysis - PacBio generated revenues of $36 million in Q2 2024, a decrease of 24.3% year over year, missing the Zacks Consensus Estimate by 11.2% [2]. - Revenue breakdown by region showed: - Americas: $20.8 million, down 13% year over year [3]. - Asia-Pacific: $8.2 million, down 36% year over year [3]. - EMEA: $7 million, down 35% year over year [3]. Segmental Performance - Product revenues were $31.7 million, down 27.3% from the previous year [4]. - Instrument revenues fell to $14.7 million, a 51% decline year over year due to lower Revio unit shipments [4]. - Consumables revenues increased to $17 million, up 24% from the prior year [4]. - Service and other revenues totaled $4.3 million, reflecting a 9% year-over-year increase [5]. Margin and Expense Trends - Adjusted gross profit decreased by 15.9% to $13.2 million, but adjusted gross margin improved by 400 basis points to 37% year over year [6]. - Sales, general and administrative expenses rose by 13.1% to $45.9 million [6]. - Research and development expenses decreased by 16.7% to $38.5 million [6]. - Total operating loss was $175.8 million, wider than the loss of $73.2 million in the prior year [7]. Financial Position - As of the end of Q2 2024, PacBio had cash, cash equivalents, and investments totaling $509.8 million, down from $561.9 million at the end of Q1 2024 [8]. Guidance - PacBio updated its revenue outlook for 2024, expecting revenues to be around the lower end of the $170-$200 million range, with the Zacks Consensus Estimate at $177.5 million [10]. - The company anticipates $80 million in instrument revenues for fiscal 2024, including 115 Revio shipments, and consumable revenues of $72 million [10]. Strategic Developments - In July 2024, PacBio announced a collaboration with Novogene to utilize its Revio long-read sequencing system in a new lab in Munich, Germany [13]. - The company also partnered with Form Bio to advance initiatives in the Adeno-associated virus industry [13]. - In March 2024, PacBio introduced the PureTarget repeat expansion panel, enabling thorough examination of genes linked to severe neurological conditions [14].