NEW YORK – Pacific Biosciences said Thursday after the close of the market that it expects 2025 revenues to grow approximately 6 percent year over year.
For 2025, PacBio expects between $155.0 million and $170.0 million in revenues, well below the Wall Street consensus estimate of $186 million. "We have, to the best of our ability, kind of baked in what could be a real challenging time into our guidance," CEO Christian Henry said on a conference call with investors following the release of the firm's fourth quarter and full-year 2024 financial results. Fourth quarter revenues fell 33 percent year over year, and full-year revenues fell 23 percent year over year.
PacBio expects instrument revenues to grow "modestly" with growth in shipments of the new Vega benchtop long-read sequencer offsetting a year-over-year decline in Revio shipments. PacBio has been producing Vega instruments on its pilot production line and will do so over the first half of the year. "In the second half of the year, we will be on the full production line," Henry said, which should improve the firm's ability to meet demand.
Expected cash burn for 2025 is $130 million, $57 million lower than it was in 2024, Henry said. He noted that customers will be navigating "an uncertain funding landscape, much like in 2024."
Last week, the National Institutes of Health said it planned to cap indirect costs related to research grants, which could reduce overall funding by as much as $4 billion a year. States and universities have challenged the plan in federal court.
Approximately 20 percent of PacBio's revenues are tied to NIH-funded projects, Henry noted during the Q&A portion of the call. He added that growth in the Asia-Pacific region could also suffer from an uncertain research funding situation.
"On a more positive note, accelerating activity in the clinical market is anticipated to offset some of those potential headwinds," Henry said. Europe, the Middle East, and Africa should be the fastest-growing region in 2025, driven by population sequencing programs and clinical sequencing.
PacBio expects first quarter 2025 revenues to be lower than for the three months ended Dec. 31, for which the firm reported $39.2 million in revenues, down 33 percent from $58.4 million in Q4 2023, and below the consensus Wall Street estimate of $40.6 million. The result was in line with the company's preliminary estimates announced in January.
Its Q4 product revenues totaled $34.1 million, down 37 percent from $54.0 million in Q4 2023, while service and other revenues grew 16 percent year over year to $5.1 million from $4.4 million.
Instrument revenues totaled $15.3 million, down 56 percent from $35.1 million a year ago. Consumables revenues were $18.8 million, down less than 1 percent from $18.9 million a year ago.
During Q4, the company shipped 23 Revio instruments, bringing the total installed base to 270, and seven new Vega benchtop sequencers.
Revenues from the Americas were $20.2 million, down 41 percent from $33.9 million a year ago. Asia-Pacific revenues fell 33 percent to $8.9 million compared to $13.4 million a year ago, while Europe, the Middle East, and Africa revenues were $10.1 million, down 9 percent from $11.1 million.
"2024 was a challenging yet transformative year for PacBio, marked by the successful launch of new products, disciplined cost management, and strategic progress in our clinical strategy. Despite macroeconomic pressures, we have continued to innovate and expand accessibility to HiFi sequencing," Henry said in a statement accompanying the financial results.
The firm's net income for the quarter was $3.6 million, or $.01 per share, compared to a loss of $82.0 million, or $.31 per share, in Q4 of 2023. The adjusted loss per share was $.20, missing the consensus estimate for a loss of $.17 per share.
The firm's R&D expenses for Q4 were $27.5 million, up 7 percent year over year from $25.5 million, while SG&A expenses were $41.6 million, down 5 percent year over year from $43.7 million.
PacBio took a $90.1 million impairment charge during the quarter.
For full-year 2024, PacBio revenues were $154.0 million, a 23 percent decrease year over year from $200.5 million in 2023 and in line with preliminary results. Revenues were short of the consensus Wall Street estimate of $155.4 million.
Full-year product revenues fell 26 percent to $136.1 million from $183.9 million a year ago, while service and other revenues grew 7 percent to $17.9 million from $16.6 million.
Instrument revenues were $65.7 million, down 45 percent from $120.5 million in 2023, and consumables revenues were $70.4 million, up 11 percent from $63.4 million. PacBio sold 97 Revio instruments in the year, and Revio accounted for $70.4 million in consumables revenue.
The company's net loss for 2024 totaled $308.7 million, or $1.58 per share, compared to a loss of $306.7 million, or $1.21 per share, in 2023. Adjusted loss per share was $.83, missing analysts' consensus estimate for a loss of $.81 per share.
As of Dec. 31, PacBio had $389.9 million in cash and investments and $2.2 million in restricted cash.
The firm had 575 employees compared to 796 at the end of 2023.
In Friday morning trading on the Nasdaq, PacBio shares were up 16 percent to $1.72.