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PacBio (PACB) Q2 Earnings Beat Estimates, Revenues Down Y/Y
PACBPacific Biosciences of California(PACB) ZACKS·2024-08-08 17:11

Core Viewpoint - Pacific Biosciences of California, Inc. (PacBio) reported mixed results for the second quarter of 2024, with adjusted loss per share beating estimates while revenues fell short of expectations [11]. Revenue Analysis - PacBio generated revenues of 36millioninQ22024,adecreaseof24.336 million in Q2 2024, a decrease of 24.3% year over year, missing the Zacks Consensus Estimate by 11.2% [2]. - Revenue breakdown by region showed: - Americas: 20.8 million, down 13% year over year [3]. - Asia-Pacific: 8.2million,down368.2 million, down 36% year over year [3]. - EMEA: 7 million, down 35% year over year [3]. Segmental Performance - Product revenues were 31.7million,down27.331.7 million, down 27.3% from the previous year [4]. - Instrument revenues fell to 14.7 million, a 51% decline year over year due to lower Revio unit shipments [4]. - Consumables revenues increased to 17million,up2417 million, up 24% from the prior year [4]. - Service and other revenues totaled 4.3 million, reflecting a 9% year-over-year increase [5]. Margin and Expense Trends - Adjusted gross profit decreased by 15.9% to 13.2million,butadjustedgrossmarginimprovedby400basispointsto3713.2 million, but adjusted gross margin improved by 400 basis points to 37% year over year [6]. - Sales, general and administrative expenses rose by 13.1% to 45.9 million [6]. - Research and development expenses decreased by 16.7% to 38.5million[6].−Totaloperatinglosswas38.5 million [6]. - Total operating loss was 175.8 million, wider than the loss of 73.2millionintheprioryear[7].FinancialPosition−AsoftheendofQ22024,PacBiohadcash,cashequivalents,andinvestmentstotaling73.2 million in the prior year [7]. Financial Position - As of the end of Q2 2024, PacBio had cash, cash equivalents, and investments totaling 509.8 million, down from 561.9millionattheendofQ12024[8].Guidance−PacBioupdateditsrevenueoutlookfor2024,expectingrevenuestobearoundthelowerendofthe561.9 million at the end of Q1 2024 [8]. Guidance - PacBio updated its revenue outlook for 2024, expecting revenues to be around the lower end of the 170-200millionrange,withtheZacksConsensusEstimateat200 million range, with the Zacks Consensus Estimate at 177.5 million [10]. - The company anticipates 80millionininstrumentrevenuesforfiscal2024,including115Revioshipments,andconsumablerevenuesof80 million in instrument revenues for fiscal 2024, including 115 Revio shipments, and consumable revenues of 72 million [10]. Strategic Developments - In July 2024, PacBio announced a collaboration with Novogene to utilize its Revio long-read sequencing system in a new lab in Munich, Germany [13]. - The company also partnered with Form Bio to advance initiatives in the Adeno-associated virus industry [13]. - In March 2024, PacBio introduced the PureTarget repeat expansion panel, enabling thorough examination of genes linked to severe neurological conditions [14].