Revenue Performance - Revenue increased by $17.8 million, or 26%, to $86.5 million for the six months ended June 30, 2023, compared to $68.6 million for the same period in 2022[115]. - Instrument revenue for the three months ended June 30, 2023, increased by $14.3 million, or 92%, to $29.9 million, primarily due to the sale of 45 Revio systems[125]. - Product revenue increased by $19.9 million, or 34%, to $78.3 million for the six months ended June 30, 2023, compared to $58.4 million for the same period in 2022[136]. - Instrument revenue increased by $19.5 million, or 62%, to $50.6 million for the six months ended June 30, 2023, primarily due to the sale of 77 Revio systems[138]. - Consumables revenue increased by $0.4 million, or 2%, to $27.7 million for the six months ended June 30, 2023, driven by higher Revio consumables sales[139]. - Consumables revenue decreased by $0.8 million, or 6%, to $13.7 million for the three months ended June 30, 2023, due to lower Sequel consumable sales[126]. - Service and other revenue decreased by $1.4 million, or 26%, to $3.9 million for the three months ended June 30, 2023, primarily due to changes in warranty terms[127]. Profitability and Expenses - Gross profit margin decreased to 29% for the six months ended June 30, 2023, down from 44% for the same period in 2022, attributed to instrument mix and higher initial manufacturing costs[115]. - Gross profit decreased by $5.0 million, or 17%, to $25.3 million for the six months ended June 30, 2023, with a gross margin of 29%, down from 44% in the same period in 2022[142]. - Loss from operations increased by $18.9 million, or 13%, to $164.4 million for the six months ended June 30, 2023, compared to $145.5 million for the same period in 2022[122]. - Research and development expense decreased by $8.2 million, or 8%, to $95.1 million for the six months ended June 30, 2023, compared to $103.3 million for the same period in 2022[143]. - Sales, general and administrative expense increased by $1.3 million, or 2%, to $80.4 million for the six months ended June 30, 2023, compared to $79.1 million for the same period in 2022[144]. - Change in fair value of contingent consideration increased by $14.2 million during the six months ended June 30, 2023, related to a $200 million liability contingent on achieving a milestone[145]. Cash Flow and Investments - Cash, cash equivalents, and short-term investments were $829.9 million at June 30, 2023, representing a 7% increase compared to December 31, 2022[122]. - As of June 30, 2023, the company had cash, cash equivalents, and investments totaling $829.9 million, an increase from $772.3 million as of December 31, 2022[154]. - Cash used in operating activities for the six months ended June 30, 2023, was $136.4 million, compared to $139.6 million for the same period in 2022[156][159]. - Cash used in investing activities for the six months ended June 30, 2023, was $171.1 million, significantly higher than $18.2 million in 2022[156][161]. - Cash provided by financing activities during the six months ended June 30, 2023, was $191.3 million, primarily from the issuance of common stock[162]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $116.3 million for the six months ended June 30, 2023[156]. - The company invested in cash equivalents and marketable securities, with a total of $830 million as of June 30, 2023[171]. - A hypothetical 100 basis-point increase or decrease in interest rates would have affected the fair value of the company's investment portfolio by approximately $2.9 million[172]. - The company’s investing activities included $476.9 million in purchases of investments during the six months ended June 30, 2023[160]. - The company did not have any off-balance sheet arrangements as of June 30, 2023[167]. Mergers and Acquisitions - The company entered into a merger agreement to acquire Apton Biosystems, closing the transaction on August 2, 2023[120]. - The company anticipates operating expenses to increase slightly for the remainder of the year, primarily due to changes in the fair value of contingent consideration related to the Omniome acquisition[122]. Net Loss - The net loss for the six months ended June 30, 2023, was $157.8 million, which included non-cash items such as share-based compensation of $35.8 million[158]. - Loss on extinguishment of debt was $2.0 million during the six months ended June 30, 2023, due to the difference in fair value of the 2030 Notes and the principal[146]. - Other income (expense), net for the six months ended June 30, 2023, was $15.8 million compared to $23,000 for the same period in 2022, primarily due to investment income[148].

Pacific Biosciences of California, Inc. (NASDAQ:PACB) Q2 2023 Earnings Conference Call August 2, 2023 5:00 PM ET Company Participants Todd Friedman - Director, Investor Relations Christian Henry - President and Chief Executive Officer Susan Kim - Chief Financial Officer Conference Call Participants Matt Sykes - Goldman Sachs Kyle Mikson - Canaccord Jack Meehan - Nephron Research Daniel Brennan - TD Cowen Sung Ji Nam - Scotiabank Luke Sergott - Barclays Rachel Vatnsdal - JP Morgan Tejas Savant - Morgan Stanl ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________________________ Form 10-Q _____________________________________________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCH ...

Pacific Biosciences of California, Inc. (NASDAQ:PACB) Q1 2023 Earnings Conference Call May 2, 2023 4:30 PM ET Company Participants Todd Friedman - Director, Investor Relations Christian Henry - President and Chief Executive Officer Susan Kim - Chief Financial Officer Conference Call Participants Dan Brennan - TD Cowen David Westenberg - Piper Sandler Kyle Mikson - Canaccord Genuity Tejas Savant - Morgan Stanley Sung Ji Nam - Scotiabank Julia Qin - JPMorgan John Sourbeer - UBS Ross Osborn - Cantor Fitzgerald ...

Sequencing Technology - The company announced two new sequencing platforms, Revio and Onso, with commercial shipments expected to commence in March 2023 and the second quarter of 2023, respectively[16][17]. - Revio is designed for large studies in human genetics, cancer research, and agricultural genomics, while Onso aims to deliver industry-leading sensitivity and specificity for oncology and disease research[16][17]. - The HiFi long-read sequencing technology has been recognized for its high accuracy, typically exceeding 99.9% accuracy, and is capable of producing reads of 15-20 kilobases in size[34]. - The company’s sequencing solutions are utilized across various applications, including human genomics, oncology, and infectious disease, addressing the needs of academic, governmental, and commercial entities[15][23]. - The SBB short-read sequencing technology is expected to offer higher accuracy than current market competitors, addressing the detection of rare variants in complex samples[42]. - The company’s HiFi long-read sequencing technology enables comprehensive genome assemblies, revealing variants of all known types, which is crucial for understanding infections and public health[30]. - The anticipated launch of the Onso system will include consumable products such as flow cells and sequencing reagent kits, enhancing the company's product offerings in the short-read market[44]. Market and Financial Performance - Approximately 400 million people globally are affected by rare diseases, with 80% believed to be genetic, highlighting the potential impact of the company’s sequencing technology in diagnostics[24]. - As of December 31, 2022, the company's instrument backlog was approximately $45.4 million, a significant increase from $2.0 million as of December 31, 2021[51]. - For the years ended December 31, 2022, 2021, and 2020, one customer accounted for approximately 12%, 13%, and 14% of total revenue, respectively[49]. - The company anticipates that broader adoption of sequencing technology by mainstream customers may take several years[50]. - The company has incurred net losses each quarter since inception and expects to continue incurring significant losses and negative cash flow for the foreseeable future[96]. - The company issued $900.0 million in aggregate principal amount of 1.50% Convertible Senior Notes due 2028, raising concerns about cash flow sufficiency to meet debt obligations[99]. - Significant revenue is derived from a limited number of customers, with one primary distributor in China accounting for approximately 12% of total revenue in 2022[143]. - The market for sequencing systems and consumables is evolving, making it difficult to predict market size and growth opportunities[135]. Regulatory and Compliance Challenges - The company is subject to regulatory requirements by the FDA for any products intended for clinical diagnostics, which could impact future product development and marketing[63]. - International sales of medical devices are subject to varying foreign government regulations, which can affect timelines for product introduction[74]. - The company faces uncertainty regarding coverage and reimbursement for clinical diagnostic assays, which can be time-consuming and expensive to obtain[72]. - The life sciences industry, a primary market for the company's technology, is heavily regulated, and any changes in regulations could materially impact market opportunities[182]. - The FDA may classify the company's products as medical devices, which would require regulatory clearance and could significantly increase costs and delay commercialization efforts[183]. - The company faces uncertainty regarding the regulatory landscape for laboratory developed tests (LDTs), which could impact product sales and necessitate changes to the business model[185]. - The FDA's enforcement discretion regarding LDTs may change, potentially leading to increased regulation and oversight that could affect the company's operations[184]. Operational and Strategic Initiatives - The company plans to continue investing in marketing, sales, service, and support resources to drive product adoption and expand its customer base[47]. - The company aims to convert existing Sequel II/IIe customers to the Revio platform and attract new customers to drive adoption[53]. - The company is focused on demonstrating superior performance and value of its products to maintain and increase sales[60]. - The company is committed to developing innovative genomic solutions that provide insights into biological processes, with a focus on accuracy and completeness in its product development strategy[14]. - The company is developing higher throughput platforms, including the HiFi long-read sequencing and the mid-throughput short-read Sequencing by Binding platform, Onso[54]. Workforce and Talent Management - The company had 769 full-time employees as of December 31, 2022, with 352 in research and development and 204 in marketing, sales, and customer support[78]. - The company recognizes the importance of a diverse workforce and offers training programs on diversity awareness[84]. - The company is focused on attracting and retaining top talent through competitive compensation and benefits packages[80]. - The company faces high competition for talent in the San Francisco Bay Area, impacting its ability to retain and recruit qualified personnel[121]. Risks and Challenges - The company faces uncertainty regarding the regulatory landscape for laboratory developed tests (LDTs), which could impact product sales and necessitate changes to the business model[185]. - The company may need to raise additional funds through public or private financing to support commercialization efforts and product development[100]. - The company has faced manufacturing delays and quality defects, impacting the production of SMRT Cells and other consumables essential for product performance[107]. - Inflationary pressures and supply shortages have adversely affected financial results and operating costs, potentially impacting margins[97]. - The ongoing COVID-19 pandemic has disrupted supply chains and manufacturing, potentially harming the company's ability to meet customer demand[115]. - Leadership transitions have occurred, including the appointment of a new CEO and CFO, which may disrupt operations and affect business performance[118]. - The company may struggle to maintain ISO certifications if product quality issues persist, potentially impacting customer purchasing decisions[132]. - The company faces risks associated with political and economic tensions between the U.S. and China, which could adversely affect its business operations and financial results[156]. Intellectual Property and Legal Matters - The current patent portfolio includes 406 issued U.S. patents and 100 pending U.S. patent applications, with expiration dates ranging from 2023 to 2041[57]. - The company faces potential challenges to its patents from ONT Ltd., ONT Inc., and Metrichor, which could lead to costly legal proceedings and distract management[171]. - The company has incurred significant legal expenses in past patent litigation, which may continue to be a material expense affecting financial performance[174]. - The U.S. government holds "march-in" rights for some patented technologies developed with federal funding, which could adversely affect the company's business if exercised[173]. - The company may face claims of patent infringement from third parties, which could result in substantial damages and hinder product development[175]. - The company’s enforcement of intellectual property rights may be inadequate, leading to potential loss of value and legal challenges[170]. Financial and Stock Market Considerations - The market price of the company's common stock is highly volatile, influenced by various risk factors including financial performance and market conditions[205]. - In September 2021, the company completed a private placement of 11,214,953 shares at $26.75 per share, raising approximately $300 million[209]. - On January 27, 2023, the company sold 20,125,000 shares at $10.00 per share, resulting in gross proceeds of approximately $201.3 million[210]. - Concentration of ownership by principal stockholders may lead to significant control over board composition and company decisions[211]. - Anti-takeover provisions in the company's charter may hinder beneficial acquisitions and management changes[212].

Pacific Biosciences of California, Inc. (NASDAQ:PACB) Q4 2022 Earnings Conference Call February 16, 2023 4:30 PM ET Company Participants Todd Friedman - Director, Investor Relations Christian Henry - President & Chief Executive Officer Susan Kim - Chief Financial Officer Conference Call Participants Kyle Mikson - Canaccord Julia Qin - JPMorgan Tejas Savant - Morgan Stanley Dan Brennan - Cowen David Westenberg - Piper Sandler Sung Ji Nam - Scotiabank John Sourbeer - UBS Ross Osborn - Cantor Fitzgerald Operat ...

Pacific Biosciences of California, Inc. (NASDAQ:PACB) Q3 2022 Earnings Conference Call November 7, 2022 5:00 PM ET Company Participants Todd Friedman - Director of Investor Relations Christian Henry - President & Chief Executive Officer Susan Kim - Chief Financial Officer Conference Call Participants Tejas Savant - Morgan Stanley Julia Qin - JPMorgan Dan Brennan - Cowen Kyle Mikson - Canaccord Operator Hello, and welcome to the PacBio Third Quarter Fiscal Year 2022 Financial Results Conference Call. All par ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended September 30, 2022 Form 10-Q Or (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34899 Pacific Biosciences of California, Inc. (Exact name of registrant as specified in its charter) Delaware 16-1590339 (St ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q For the transition period from to Commission File Number 001-34899 Pacific Biosciences of California, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 1305 O'Brien Drive Menlo Park, CA 94025 (Address of principal executive offices) (Zip Code) (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quar ...

Pacific Biosciences of California, Inc. (NASDAQ:PACB) Q2 2022 Earnings Conference Call August 3, 2022 5:00 PM ET Company Participants Todd Friedman – Director of Investor Relations Christian Henry – President and Chief Executive Officer Susan Kim – Chief Financial Officer Conference Call Participants Kyle Mikson – Canaccord Tejas Savant – Morgan Stanley Dan Brennan – Cowen Operator Welcome to the PacBio’s Second Quarter Fiscal Year 2022 Earnings Call. All participants will be in a listen-only mode. [Operato ...