Standard BioTools (LAB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $45M, up 21% sequentially but down 5% year-over-year; YTD revenue at $128M, down 9% from 2023; full-year 2024 revenue guidance reiterated at $170–$175M.

• Achieved $80M in operational synergies from the SomaLogic integration, a year ahead of plan, supporting break-even adjusted EBITDA target in 2026.

• Adjusted EBITDA loss improved by 50% in Q3; net loss for Q3 2024 was $26.9M, a 35% improvement year-over-year.

• Well-capitalized with $368M in cash and investments as of September 30, 2024.

• Strategic reorganization underway, including workforce reduction and cost controls to realize merger synergies.

Financial highlights

• Q3 2024 revenue: $45M (down 5% YoY, up 21% sequentially); YTD: $128M (down 9% YoY).

• Non-GAAP gross margin improved to 57% in Q3 2024 (up 520 bps YoY); reported gross margin was 51.7%.

• Non-GAAP operating expenses: $40M in Q3 (down 24% YoY); operating expenses: $55M in Q3 (down 18.5% YoY).

• Adjusted EBITDA loss: $14M in Q3 (improved 50% YoY); net loss: $26.9M in Q3 (improved 35% YoY).

• Cash and equivalents: $368M at Q3 end; adjusted cash burn $21M in Q3.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at $170M–$175M.

• Targeting adjusted EBITDA break-even for full year 2026, with full realization of $80M merger synergies expected in 2025.

• Cash runway sufficient to fund operations until reaching positive cash flow.