Bionano Genomics(BNGO) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $8.2 million, a decrease of 24$2 million from discontinued clinical services [9] - GAAP gross margin for Q4 2024 was 42%, significantly higher than the 23% reported in Q4 2023 [9] - Non-GAAP gross margin for Q4 2024 was also 42%, compared to 24% in Q4 2023 [9] - GAAP operating expense for Q4 2024 was $15.4 million, down from$27.4 million in Q4 2023 [9][10] - Cash, cash equivalents, and available-for-sale securities as of December 31, 2024, were $20.9 million, with$11.4 million subject to restrictions [11] - Full year 2024 GAAP operating expense was $104.4 million, while non-GAAP operating expense was$68.9 million [13] Business Line Data and Key Metrics Changes - Product revenues for the full year were $27 million, a 1$26.7 million in 2023, despite a nearly $2 million reduction in instrument sales [12] - Consumables sales were$12.8 million, a 14% increase from $11.2 million in 2023 [12] - Software sales for the full year were$6.2 million, an 11% increase from $5.6 million in 2023 [12] Market Data and Key Metrics Changes - Sales in the Americas region were up 9$29 to $32 million, with Q1 2025 revenues expected to be between$6.2 million and $6.3 million [24] - The company anticipates ongoing volatility in margins but is encouraged by recent improvements [23] - The routine use customer group, which accounts for over 80$3.6 million from ATM sales during Q4 2024 and completed a 10 million registered direct offering in January 2025 [11] - The American Medical Association established a Category 1 CPT code for OGM use in hematologic malignancies, effective January 1, 2025 [22] Q&A Session Summary Question: Guidance on core revenue growth for 2025 - Management indicated that the guidance for 2025 implies core revenue growth, with expectations of 29 to $32 million [29] Question: Customer acquisition strategy - Management stated that while they are not aggressively seeking new customers, they will focus on acquiring new customers that fit into the routine use group [42][43] Question: Feedback on Stratus Compute - Early feedback on Stratus Compute has been positive, with plans for software updates to improve performance [34][36] Question: Reimbursement updates - The OGM appeared on the Medicare clinical lab fee schedule as planned, with a rate around$1,300 [66] Question: Areas of strength in routine user group - Hematologic malignancies are the primary application for OGM adoption, with constitutional genetic disorders also showing strong growth [70][72]