PACB Stock Down Following In-Line Q4 Earnings, Revio Shipments Fall

Core Insights - PacBio reported an adjusted loss per share of 20 cents in Q4 2024, an improvement from a loss of 27 cents in the previous year, aligning with Zacks Consensus Estimate [1] - The company's full-year adjusted loss per share was 83 cents, better than the $1.11 loss in 2023 but wider than the expected loss of 81 cents [2] Revenue Performance - PacBio's Q4 revenues were $39.2 million, down 32.8% year over year, but slightly above the Zacks Consensus Estimate by 0.1% [3] - Full-year revenues totaled $154 million, reflecting a 23.2% decrease from 2023 [3] Geographical Analysis - Revenues from the Americas were $20.2 million, down 41% year over year, impacted by academic environment and NIH funding uncertainty [4] - Asia-Pacific revenues were $8.9 million, a 33% decline year over year, with government funding challenges affecting capital expenditures [5] - EMEA region revenues were $10.1 million, down 9% year over year, although record consumables revenues were noted [6] Segmental Analysis - Product revenues were $34.1 million, down 36.9% year over year, with instrument revenues at $15.3 million, down 56.4% due to lower Revio system shipments [7] - Consumables revenues were $18.8 million, down 0.5% year over year, while service and other revenues increased by 17.7% to $5.1 million [8] Margin and Expense Trends - Adjusted gross profit decreased 14.9% year over year to $12.3 million, but adjusted gross margin expanded by 656 basis points to 31.3% [9] - Total operating expenses decreased 23.7% year over year to $69.1 million, with a total adjusted operating loss of $56.8 million [10] Financial Position - PacBio ended 2024 with cash and investments of $389.9 million, down from $631.4 million at the end of 2023 [11] Guidance - For Q1 2025, PacBio expects revenues to be lower than Q4 2024 due to seasonality and reduced Revio system and consumables revenues, with a consensus estimate of $43.6 million [12] - The company anticipates full-year revenues between $155 million and $170 million, below the consensus estimate of $189.5 million [13] Overall Assessment - Despite a narrower loss per share and better-than-expected revenues, concerns remain regarding the year-over-year decline in overall revenues and product sales [14][15] - Management noted ongoing macroeconomic pressures and uncertainties in the academic environment, particularly related to NIH funding [15]