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PacBio Raises Full-Year 2023 Revenue Guidance on Strong Q3 Instrument Sales

NEW YORK – Pacific Biosciences said on Monday that it is raising its full-year 2023 revenue guidance after reporting a 72 percent year-over-year increase in third quarter revenues. The firm now expects total revenue in the range of $195 million to $200 million, representing 52 percent to 56 percent growth over 2022.

For the three months ended Sept. 30, PacBio reported revenues of $55.7 million, up from $32.3 million Q3 2022 and beating the average Wall Street estimate of $48.8 million.

Of those sales, product revenues were $51.6 million, up 87 percent from $27.5 million a year ago, and service and other revenues were $4.1 million, down 14 percent from $4.8 million a year ago.

Product revenue consisted of $34.7 million in instrument revenue, up more than threefold from $11.4 million a year ago, and $16.9 million in consumables revenue, up 5 percent from $16.1 million in Q3 2022.

PacBio reported revenue from 52 Revio sequencing systems in the quarter, bringing the installed base up to 129 as of Sept. 30. On a conference call with investors following the release of results, PacBio CEO Christian Henry added that the firm also shipped its first Onso instruments in the quarter, but did not say how many. Already, Revio is responsible for the majority of consumables revenues, he said, with $9.3 million in the quarter.

Revenues from the Americas were $29.0 million, up 73 percent from $19.4 million in the year-ago period. Revenues in Asia-Pacific were $15.7 million, up 64 percent year over year from $9.6 million. In Europe, the Middle East, and Africa, revenues were $11 million, up 83 percent from $6.0 million, a year ago, driven by both instrument and consumables sales.

PacBio's net loss for the quarter was $66.9 million, or $.26 per share, compared to a net loss of $77.0 million, or $.34 per share, in the year-ago quarter. On an adjusted basis, loss per share was $.27, beating the consensus Wall Street estimate of a $.32 loss per share. Merger-related expenses were $9.0 million.

PacBio's R&D expenses for the quarter were essentially flat year over year at $47.5 million, while SG&A costs were $43.4 million, up 18 percent from $36.8 million a year ago. The firm ended the quarter with 844 employees, compared to 771 at the end of Q3 2022.

PacBio finished the quarter with $767.8 million in cash and investments and $2.7 million in restricted cash. Those figures did not account for $96.2 million in cash paid to former Omniome shareholders in October after PacBio reached a commercial milestone.

Despite predictions that the fourth quarter would also see significant year-over-year growth, Henry tempered expectations for 2024. He said the firm would provide more specific guidance after it delivers its fourth quarter and full-year 2023 results, but that he foresaw "an economic backdrop that is substantially more challenging than a year ago … due to broader global macroeconomic issues, customers have lengthened their capital purchasing timelines, which will likely have some impact on our growth trajectory in 2024."

"So while we still expect to achieve significant revenue growth in 2024, the current challenges in the global macroeconomic environment are likely to have an impact on our growth rate," he said.

In Tuesday morning trading on the Nasdaq, shares of PacBio were down 8 percent at $6.51.