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Pacific Biosciences of California(PACB) - 2023 Q3 - Quarterly Report
PACBPacific Biosciences of California(PACB)2023-11-02 16:00
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Revenue Performance - Revenue increased by 41.2million,or4141.2 million, or 41%, to 142.2 million for the nine months ended September 30, 2023, compared to 101.0millionforthesameperiodin2022[126].−InstrumentrevenueforthethreemonthsendedSeptember30,2023,increasedby101.0 million for the same period in 2022[126]. - Instrument revenue for the three months ended September 30, 2023, increased by 23.3 million, or 203%, to 34.7million,drivenbythesaleof52Reviosystems[135].−Productrevenueincreasedby34.7 million, driven by the sale of 52 Revio systems[135]. - Product revenue increased by 43.9 million, or 51%, to 129.9millionfortheninemonthsendedSeptember30,2023,comparedto129.9 million for the nine months ended September 30, 2023, compared to 85.9 million for the same period in 2022[148]. - Instrument revenue increased by 42.7million,or10042.7 million, or 100%, to 85.3 million for the nine months ended September 30, 2023, driven by the sale of 129 Revio systems[150]. - Consumables revenue increased by 0.8million,or50.8 million, or 5%, to 16.9 million for the three months ended September 30, 2023, compared to 16.1millionforthesameperiodin2022[136].−Consumablesrevenueincreasedby16.1 million for the same period in 2022[136]. - Consumables revenue increased by 1.3 million, or 3%, to 44.6millionfortheninemonthsendedSeptember30,2023,attributedtohigherRevioconsumablessales[151].ProfitabilityandExpenses−Grossprofitmargindecreasedto3044.6 million for the nine months ended September 30, 2023, attributed to higher Revio consumables sales[151]. Profitability and Expenses - Gross profit margin decreased to 30% for the nine months ended September 30, 2023, down from 43% for the same period in 2022, primarily due to lower margins on Revio instruments[126]. - Gross profit decreased by 0.7 million, or 2%, to 43.2millionfortheninemonthsendedSeptember30,2023,withagrossmarginof3043.2 million for the nine months ended September 30, 2023, with a gross margin of 30%, down from 43% in the prior year[154]. - Loss from operations increased by 26.8 million, or 12%, to 246.9millionfortheninemonthsendedSeptember30,2023,comparedto246.9 million for the nine months ended September 30, 2023, compared to 220.1 million for the same period in 2022[132]. - Research and development expense decreased by 7.8million,or57.8 million, or 5%, to 142.6 million for the nine months ended September 30, 2023, compared to 150.4millionforthesameperiodin2022[155].−Sales,generalandadministrativeexpenseincreasedby150.4 million for the same period in 2022[155]. - Sales, general and administrative expense increased by 8.0 million, or 7%, to 123.8millionfortheninemonthsendedSeptember30,2023,drivenbyincreasedmarketingexpenses[156].−Merger−relatedexpensestotaled123.8 million for the nine months ended September 30, 2023, driven by increased marketing expenses[156]. - Merger-related expenses totaled 9.0 million for the nine months ended September 30, 2023, primarily due to the acquisition of Apton[157]. Cash and Investments - Cash, cash equivalents, and short-term investments were 767.8millionatSeptember30,2023,representinga1767.8 million at September 30, 2023, representing a 1% decrease compared to the balance at December 31, 2022[132]. - As of September 30, 2023, cash, cash equivalents, and investments totaled 767.8 million, slightly down from 772.3millionasofDecember31,2022[164].−CashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2023,was772.3 million as of December 31, 2022[164]. - Cash used in operating activities for the nine months ended September 30, 2023, was 201.6 million, compared to 202.6millionforthesameperiodin2022[171][172].−CashprovidedbyinvestingactivitiesfortheninemonthsendedSeptember30,2023,was202.6 million for the same period in 2022[171][172]. - Cash provided by investing activities for the nine months ended September 30, 2023, was 71.2 million, up from 35.7millionin2022[169][174].−CashprovidedbyfinancingactivitiesduringtheninemonthsendedSeptember30,2023,was35.7 million in 2022[169][174]. - Cash provided by financing activities during the nine months ended September 30, 2023, was 190.5 million, significantly higher than 8.8millionin2022[169][175].AcquisitionsandMergers−ThecompanyenteredintoamergeragreementwithAptonBiosystemsonAugust2,2023,issuingapproximately6.3millionsharesofcommonstockuponclosing[131].−Adeferredincometaxbenefitof8.8 million in 2022[169][175]. Acquisitions and Mergers - The company entered into a merger agreement with Apton Biosystems on August 2, 2023, issuing approximately 6.3 million shares of common stock upon closing[131]. - A deferred income tax benefit of 10.7 million was recognized for the nine months ended September 30, 2023, related to the Apton acquisition[163]. - The company paid approximately 100.9millionincashand9.0millionsharesofcommonstockasmilestoneconsiderationrelatedtotheOmniomeacquisitioninOctober2023[167].−Thecompanyisobligatedtopay100.9 million in cash and 9.0 million shares of common stock as milestone consideration related to the Omniome acquisition in October 2023[167]. - The company is obligated to pay 25.0 million to former Apton equity holders upon achieving 50millioninrevenuefromahighthroughputsequencerusingApton′stechnology[168].−Thechangeinfairvalueofcontingentconsiderationwas50 million in revenue from a high throughput sequencer using Apton's technology[168]. - The change in fair value of contingent consideration was 14.0 million during the nine months ended September 30, 2023, related to the Omniome acquisition milestone[159]. Other Income - Other income, net increased by 23.0million,or178423.0 million, or 1784%, to 24.3 million for the nine months ended September 30, 2023, compared to 1.3millionforthesameperiodin2022[146].−OtherincomefortheninemonthsendedSeptember30,2023,was1.3 million for the same period in 2022[146]. - Other income for the nine months ended September 30, 2023, was 24.3 million, a significant increase from 1.3millioninthesameperiodof2022,primarilyduetoinvestmentincome[162].ProductLaunches−ThecompanycommencedcommercialshipmentsoftheOnsoshort−readsequencinginstrumentinAugust2023,followingthelaunchofReviointhefirstquarterof2023[123].−TheinstalledbaseofReviosystemsreached129bytheendofthequarter,reflectingstrongcustomerdemandforthenewproduct[126].FinancialSensitivity−Ahypothetical100basis−pointchangeininterestrateswouldaffectthefairvalueoftheinvestmentportfoliobyapproximately1.3 million in the same period of 2022, primarily due to investment income[162]. Product Launches - The company commenced commercial shipments of the Onso short-read sequencing instrument in August 2023, following the launch of Revio in the first quarter of 2023[123]. - The installed base of Revio systems reached 129 by the end of the quarter, reflecting strong customer demand for the new product[126]. Financial Sensitivity - A hypothetical 100 basis-point change in interest rates would affect the fair value of the investment portfolio by approximately 2.4 million[185]. - The company has maintained a full valuation allowance on net deferred tax assets of its U.S. entities, indicating uncertainty in realizing these assets[163].