This story has been updated to include comments from the company's Q4 earnings call.
NEW YORK – Fulgent Genetics reported before the market opened Friday that its fourth quarter 2024 revenues grew approximately 8 percent year over year.
For the three months ended Dec. 31, 2024, Fulgent reported revenues of $76.2 million, up from $70.5 million in Q4 2023 and beating the average Wall Street estimate of $75.4 million.
Fulgent's core revenues — which exclude COVID-19 testing products and COVID-19 next-generation sequencing services — grew 14 percent year over year to $76.0 million, the firm said.
Within the firm's laboratory services business, anatomic pathology grew 9 percent, Fulgent Chief Commercial Officer Brandon Perthuis said on a conference call, adding that the company is continuing to scale its sales team for anatomic pathology and has consolidated and relocated its labs to the Dallas area.
Also within the lab services business, Fulgent saw 23 percent growth in precision diagnostics year over year in Q4, Perthuis said. Reproductive health, in particular, outpaced other tests due to market adoption of the firm's Beacon expanded carrier screening products, he said, adding that the firm also recently launched products dubbed Exome RISE and Genome RISE, or RNA-integrated sequencing evaluation.
"With this service we are co-analyzing the DNA and RNA, which could potentially increase diagnostic yield by as much as 30 percent," Perthius said, stating that this potential paradigm shift in rare disease diagnosis has seen significant interest among clients.
Also in lab services, Fulgent is seeing good performance from its newly launched non-invasive prenatal testing test, KNOVA, Perthius said. The test combines aneuploidies, microdeletions, and de novo point mutations, he said, leading to higher detection rates for severe genetic conditions.
"The focus in 2025 will be to build out the sales team to create additional awareness and demand" for this product, he added.
And, within precision diagnostics Fulgent recently announced a new partnership with Foundation Medicine. The partnership supports Foundation's launch of two tests – Foundation One Germline and Foundation One Germline More – both of which are powered by Fulgent's platform and analyze single nucleotide and copy number variants. Foundation Medicine plans to begin accepting orders for these tests in March, Perthius said, adding that this is the second oncology partnership following one with the US Department of Veterans Affairs.
Fulgent's biopharma services business, meanwhile, has recently expanded to provide proteomics, transcriptomics, and spatial biology services. Revenues in that business improved to $6.1 million in Q4 from $3.9 million in sales in Q3, Perthius said.
Fulgent reported a Q4 net loss attributable to the company of $5.9 million, or $.19 per share, compared to a net loss of $128.1 million, or $4.30 per share, in Q4 2023. Adjusted EPS for the recently completed quarter was $.04, well above Wall Street analysts' estimate of a loss per share of $.37.
The firm's R&D expenses for Q4 2024 increased approximately 1 percent year over year to $12.1 million from $12.0 million, while its SG&A expenses declined 20 percent to $33.9 million from $42.2 million.
For full-year 2024, Fulgent reported $283.5 million in revenues, down 2 percent from $289.2 million in 2023 but above the consensus Wall Street estimate of $282.2 million.
"The growth we witnessed this year was organic, leveraging our expanded laboratory capabilities, sales team performance, and strategic partnerships," Perthius said on the call.
Excluding revenues from COVID-19 testing products and services, core revenues grew 7 percent to $281.2 million.
Paul Kim, Fulgent's chief financial officer, noted on the call that the firm's 2024 revenues included $168 million from precision diagnostics, $97 million from anatomic pathology, and $16 million from biopharma services.
Fulgent reported a net loss attributable to the company for 2024 of $42.7 million, or $1.41 per share, compared to a net loss of $167.8 million, or $5.63 per share, in 2023. Adjusted EPS for 2024 was $.50, beating the average Wall Street analyst estimate of a loss of $.16 per share.
The company's 2024 R&D expenses increased 18 percent to $48.8 million from $41.4 million a year ago. SG&A expenses for the year decreased 5 percent to $124.4 million from $130.5 million in 2022.
Fulgent ended the year with $55.1 million in cash and cash equivalents and $773.3 million in marketable securities.
For full-year 2025, the firm expects approximately $310 million in core revenues, net loss of about $1.95 per share, and non-GAAP loss of approximately $.65 per share.
In Friday morning trading on the Nasdaq, Fulgent's shares were up approximately 2 percent at $16.08.