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Pacific Biosciences Q3 Revenues Jump 83 Percent

NEW YORK – Pacific Biosciences said after the close of the market on Tuesday that its third quarter revenues rose 83 percent, driven by growth in sequencing instruments and consumables.

For the three months ended Sept. 30, PacBio reported revenues of $34.9 million, up from $19.1 million during the same quarter last year and beating the average Wall Street estimate of $33.2 million.

Of those sales, product revenues were $30.5 million, nearly double the $15.7 million from a year ago, and service and other revenues were $4.4 million, up 33 percent from $3.3 million a year ago.

Product revenue consisted of $15.9 million in instrument revenue, more than double the $7.7 million from a year ago, and $14.6 million in consumables revenue, up 82 percent from $8.0 million in Q3 2020.

PacBio placed 44 Sequel II or IIe systems during Q3, growing the installed base to 326 instruments as of Sept. 30, nearly double what it was a year ago.

"Our focus on execution enabled us to achieve another record quarter, highlighted by Sequel II/IIe installations at an all-time high," PacBio CEO Christian Henry said in a statement. "With approximately 700 global employees, an expanding commercial presence, and groundbreaking short- and long-read products in development, PacBio is in prime position to deliver on its mission to enable the promise of genomics to better human health."

On a conference call with investors following the release of the results, Henry said that its Chinese partner Berry Genomics has obtained approval from China's National Medical Products Administration for a version of the Sequel II instrument, the first regulatory approval for the platform in the world. Henry called it "an important step for [Berry]," which will sell the instrument directly to hospitals in China.

PacBio CFO Susan Kim said the firm broke its record for revenues in a quarter, in which the Sequel II and IIe instruments accounted for 85 percent of consumables revenues.

Revenues from the Americas were $19.4 million, more than double the revenues in the prior-year period. PacBio placed its first Sequel II in South America during the quarter. Revenues in Asia-Pacific were $9.2 million, up 58 percent year over year; and revenues in Europe, the Middle East, and Africa were $6.3 million, up 46 percent year over year. Kim added that PacBio signed additional distribution agreements for Spain, the Middle East, and North Africa during the quarter.

PacBio's R&D expenses for the quarter totaled $27.5 million, up 67 percent from $16.5 million a year ago. SG&A costs were $31.6 million, more than double the costs of $14.8 million in Q3 2020. In the last year, the firm has doubled the number of salespeople on staff and now has a total of 687 employees. The increase in headcount included hiring in R&D as well as employees that came along with the firm's Omniome and Circulomics acquisitions announced in the quarter.

The company's net income in Q3 was $16.5 million, or $.08 per share, compared to a loss of $23.7 million, or $.14 per share, during the year-ago quarter. Excluding merger-related expenses, an income tax benefit resulting from the acquisitions of Omniome and Circulomics, fair value inventory adjustments, and amortization of intangible assets, non-GAAP net loss was $47.2 million. On an adjusted basis, loss per share was $.23, missing the Wall Street estimate of a $.22 loss per share.

PacBio finished the quarter with $1.08 billion in cash and investments.

Kim said PacBio is maintaining its guidance for full-year 2021 revenues of between $128 million and $132 million, representing growth of 62 to 67 percent.

In Wednesday morning trading on the Nasdaq, shares of PacBio were flat at $27.59.