
PacBio Defies Market Backdrop in 3Q23 With Revio and Onso Product Cycles Just Starting
10-31-23 (by: Scott Gleason) PacBio has reported financial results for the third quarter of 2023 with revenue coming in at $55.7 million representing a 72% increase compared to the prior-year period. Consensus forecasts called for total revenue of $48.8 million.
Total revenue of $34.7 million significantly contributed to the growth in the quarter with the company placing 52 Revio sequencing systems. Management noted that less than 30% of the 300 legacy Sequel customers had upgraded to Revio. Last quarter the company placed 47 total instruments. Management also noted that it shipped its first Onso instruments in the quarter, its benchtop short read technology. Consumables revenue was $16.9 million which grew only modestly from last year where it was $16.1 million. Management noted that Revio consumables exceeded Sequel consumables in only the second quarter post launch which could bode well for future consumable growth. Additionally, the company saw service and other revenue of $4.1 million.
PacBio also highlighted several key updates, including the launch of the PacBio WGS Variant Pipeline, upgrades to its informatics suite, collaborations with automation providers, studies in pediatric genetic conditions.
Non-GAAP gross profit, the third quarter of 2023 was $18.1 million, with a non-GAAP gross margin of 32%, compared to the non-GAAP gross profit of $13.7 million and a margin of 42% in the third quarter of 2022. Operating expenses totaled $100.4 million for the third quarter of 2023, compared to $88.2 million in the same period in 2022. Non-GAAP operating expenses amounted to $90.9 million, compared to $83.8 million in 2022. The company reported a non-GAAP net loss for the third quarter of 2023 was $67.9 million, compared to $72.5 million in the same period in 2022. Non-GAAP net loss per share was ($0.27). Street forecasts were calling for adjusted EPS of ($0.32). The company maintained a strong financial position with $767.8 million in cash, cash equivalents, and investments as of September 30, 2023.
The company now expects full-year revenue to be between $195 million and $200 million, representing 52% to 56% growth over 2022, higher than previous expectations.
Christian Henry, President and CEO of PacBio, expressed his satisfaction with the company’s successful quarter, with a focus on the remarkable adoption of the Revio platform, record consumable revenue, and the exciting reception of the Onso systems and Sequencing by Binding chemistry. PacBio’s financial results and strategic initiatives underscore the company’s promising trajectory and ongoing commitment to advancing genomics research and technology.