Fulgent Genetics(US:FLGT)2020-03-11 02:27Financial Data and Key Metrics Changes - The company achieved a revenue growth of 52% year-over-year for the full year 2019, totaling $32.5 million, with a net GAAP loss of $411,000 compared to a loss of $5.6 million in the previous year [32] - For Q4 2019, revenue grew 48% year-over-year to $8.4 million, with adjusted EBITDA of $1.1 million compared to $37,000 in Q4 2018 [30][32] - Non-GAAP gross margin in Q4 was 59%, up six percentage points year-over-year, while GAAP loss was $296,000 [9][30] Business Line Data and Key Metrics Changes - The traditional clinical business remains a significant contributor, representing approximately half of the revenue, with strong demand in pediatric rare disease and reproductive health [11] - The sequencing as a service business generated approximately $4 million in revenue in 2019, with expectations for continued high growth in 2020 [12] - The China joint venture posted revenue of $4.1 million, an increase of 223% from 2018, with losses decreasing to less than $200,000 [14] Market Data and Key Metrics Changes - Revenue from the US grew 79% year-over-year in Q4, representing 74% of total revenue, down from 82% in Q3 [25] - The company anticipates growth in international markets, particularly in Europe and the Middle East, as part of its expansion strategy [14][18] Company Strategy and Development Direction - The company is focused on expanding its commercial vision strategy, including international expansion and enhancing its sequencing as a service business [18] - There is a commitment to invest in research and development and sales and marketing to drive sustainable growth [34] - The company is exploring acquisition opportunities to expand its reach and capabilities in genetic testing [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $40 million in revenue for 2020, representing a growth rate of approximately 23% [33] - The company is not factoring any revenue from coronavirus testing into its guidance but is actively developing a more accurate test method [38][39] - Management noted that the overall approach to growth is based on leveraging its technology platform and differentiating its services in a competitive market [20] Other Important Information - The company completed a primary stock equity offering, adding approximately $20 million to its cash position, ending Q4 with $70.2 million in cash and no debt [31] - The company has made key international hires to support its growth strategy and penetrate new markets [23] Q&A Session Summary Question: Guidance related to coronavirus and supply chain exposure - The company has zero revenue built into its guidance related to coronavirus opportunities [37] Question: Impact of coronavirus on hospital volumes and testing - Management indicated that they do not expect disruption to patient flow or access to services [40] Question: Update on international and local sales team expansion - The company is halfway through its hiring process and expects to complete it by early summer [42] Question: Key drivers for volume in oncology and reproductive health - The company has diversified its offerings beyond pediatric and rare diseases, with strong performance in oncology and reproductive health [44] Question: Recent collaborations and their contributions - The company obtained approval to operate in New York State and continues partnerships with organizations like the Parkinson's Foundation [48]