PacBio Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Core Insights - PacBio reported financial results for the fourth quarter and fiscal year ended December 31, 2024, highlighting a challenging year with significant changes in revenue and expenses [1][11]. Financial Performance - The company achieved a GAAP gross margin of 26% in Q4 2024, up from 16% in Q4 2023, while the non-GAAP gross margin increased to 31% from 19% [3]. - GAAP operating expenses for Q4 2024 totaled $161.9 million, compared to $97.1 million in Q4 2023. Non-GAAP operating expenses were $68.6 million, down from $88.4 million in the same period [4]. - GAAP net income for Q4 2024 was $3.6 million, a significant improvement from a net loss of $82.0 million in Q4 2023. Basic net income per share was $0.01 compared to a loss of $0.31 per share in the prior year [6]. - Total revenue for Q4 2024 was $39.2 million, representing a 33% decrease from $58.4 million in Q4 2023. Instrument revenue fell to $15.3 million from $35.1 million, while consumables revenue remained relatively stable at $18.8 million [9]. Strategic Developments - The company accelerated the launch of its Vega benchtop sequencing platform, which aims to broaden access to HiFi long-read sequencing [10]. - A clinical collaboration with Berry Genomics was established, delivering Vega systems to support prenatal health and screening programs in China [10]. - The introduction of SPRQ chemistry allows for sub-$500 HiFi long-read human genome sequencing, significantly reducing DNA input requirements and increasing sample throughput [10]. Financial Position - As of December 31, 2024, cash, cash equivalents, and investments totaled $389.9 million, down from $631.4 million a year earlier [7]. - The company executed a convertible note exchange, reducing the outstanding principal balance by $259 million, which included replacing $459 million in convertible notes due 2028 with $200 million in new notes due August 2029 [16]. Impairment Charges - The financial results included estimated preliminary non-cash impairment charges of approximately $90.1 million related to goodwill and in-process research and development, driven by macroeconomic headwinds [5][32].