Pacific Biosciences of California (PACB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $36.0 million, down from $47.6 million year-over-year, due to fewer instrument placements and macroeconomic headwinds, but consumables revenue grew 24% year-over-year and 7% sequentially.

• Net loss for Q2 2024 was $173.3 million, driven by a $93.2 million goodwill impairment and $18.0 million in restructuring charges, while non-GAAP net loss improved to $55.2 million.

• Significant restructuring was initiated, expected to reduce annualized non-GAAP operating expenses by over $75 million and lower quarterly cash burn.

• Cash, cash equivalents, and investments totaled $509.8 million at June 30, 2024, down from $631.4 million at year-end 2023.

• Product development and customer support continued, with notable adoption of Revio in clinical and research settings, and management expects revenue acceleration in H2 2024 and 2025.

Financial highlights

• Q2 2024 total revenue was $36.0 million, down 24% from Q2 2023, with instrument revenue at $14.7 million (-51% y/y), consumables at $17.0 million (+24% y/y), and service/other at $4.3 million (+9% y/y).

• Gross profit for Q2 2024 was $5.9 million (16% margin), down from $15.5 million (33% margin) in Q2 2023.

• Non-GAAP gross margin improved to 37% from 33% a year ago, and non-GAAP operating expenses dropped to $71.0 million from $86.7 million year-over-year.

• Net loss per share was $0.64 (GAAP), compared to $0.28 year-over-year; non-GAAP net loss per share improved to $0.20 from $0.26.

• Ended Q2 with $509.8 million in unrestricted cash and investments.

Outlook and guidance

• Full-year 2024 revenue expected at the low end of the $170 million–$200 million range, with non-GAAP gross margin and operating expenses also at the low end of guidance.

• Quarterly cash burn projected to decline, with year-end cash/investments guidance of $435 million–$450 million.

• Management targets positive cash flow by end of 2026 through revenue growth, margin expansion, and expense control.

• Additional $8.3 million in restructuring costs expected by year-end 2024.

• Existing cash and investments expected to fund operations beyond the next 12 months.