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PacBio Stock Down Despite Q1 Earnings & Revenue Beat Estimates
PACBPacific Biosciences of California(PACB) ZACKS· ZACKS·2025-05-09 17:01

Core Insights - PacBio reported an adjusted loss per share of 15 cents for Q1 2025, an improvement from a loss of 26 cents in the same quarter last year, exceeding the Zacks Consensus Estimate by 21.1% [1] - Total revenues for the first quarter were 37.2million,down4.337.2 million, down 4.3% year over year, but above the Zacks Consensus Estimate by 6.2% [2] - The company experienced a decline in revenues across the Americas and Asia-Pacific regions, while the EMEA region saw an 11% increase in revenues [3][4][5] Revenue Breakdown - Revenues from the Americas were 16.3 million, an 8% decline year over year due to government funding challenges [3] - Asia-Pacific revenues totaled 11.6million,reflectinga911.6 million, reflecting a 9% decline, although consumables performed well due to increased utilization of the Revio system [4] - EMEA revenues reached 9.3 million, an 11% increase, driven by strong Revio placements in the hospital and clinic segment [5] Segment Analysis - Total product revenues were 31.1million,down11.131.1 million, down 11.1% year over year, with instrument revenues significantly impacted, falling 42.1% to 11 million [6] - Consumables revenues increased by 25.6% to 20.1million,withannualizedReviopull−throughpersystemat20.1 million, with annualized Revio pull-through per system at 236,000 [7] - Service and other revenues rose 57.9% to 6million,attributedtoincreasedservicecontractrevenuesrelatedtoRevio[7]MarginandExpenseTrends−Adjustedgrossprofitincreased18.86 million, attributed to increased service contract revenues related to Revio [7] Margin and Expense Trends - Adjusted gross profit increased 18.8% year over year to 15 million, with adjusted gross margin expanding by 700 basis points to 40% [8] - Sales, general, and administrative expenses decreased by 8.2% to 40.2million,whileresearchanddevelopmentexpensesfell33.240.2 million, while research and development expenses fell 33.2% to 29.1 million [8] - Total adjusted operating loss was 54.2million,animprovementfrom54.2 million, an improvement from 74.6 million in the prior year [9] Financial Position - At the end of Q1 2025, PacBio had cash and investments totaling 343.1million,downfrom343.1 million, down from 389.9 million at the end of 2024 [10] Guidance and Outlook - For Q2 2025, PacBio expects revenues to be flat compared to Q1 2025, with a Zacks Consensus Estimate of 36.9million[11]−Thecompanyrevisedits2025revenueoutlooktobetween36.9 million [11] - The company revised its 2025 revenue outlook to between 150 million and 170million,downfromthepreviousguidanceof170 million, down from the previous guidance of 155 million to 170million[12]StrategicInitiatives−PacBioinitiatedacompany−widerestructuringplanaimedatreducingoperatingexpensesbyapproximately170 million [12] Strategic Initiatives - PacBio initiated a company-wide restructuring plan aimed at reducing operating expenses by approximately 45 million to $50 million by the end of 2025 [14] - The company entered a licensing agreement to enhance methylation detection capabilities within its HiFi sequencing platform, which is expected to expand applications in cancer research and rare disease diagnostics [15] - Performance was impacted by macroeconomic challenges, including reduced academic funding and U.S.-China tariffs, leading to a decline in Revio system shipments [16]