NEW YORK – Pacific Biosciences on Thursday afternoon lowered its full-year 2025 revenue guidance after first quarter revenues fell 4 percent from the prior-year period.
The Menlo Park, California-based sequencing technology maker now expects revenues in the range of $150 million to $170 million, down from $155 million to $170 million. The firm expects second quarter revenues to be flat versus the year-ago quarter.
On a conference call with investors following the release of the results, PacBio CEO Christian Henry said the firm expects placements of its Revio instrument to be lower in 2025 than the year prior, driven by uncertainty in the US academic research market. PacBio has also paused development of a high-throughput short-read sequencer to focus on its long-read technology; however, it will continue to offer the Onso short-read benchtop instrument and serve those customers.
Despite the multiple pressures, consumables revenues reached record levels, Henry said, and the firm saw continued momentum with clinically focused customers, "especially with the hospital and clinic customer base."
For the three months ended March 31, PacBio reported a 4 percent year-over-year drop in first quarter revenues, narrowly beating Wall Street expectations.
"We are off to a solid start to the year, highlighted by a full quarter of shipments of the Vega platform, record consumables revenue, and [an] improved non-GAAP gross margin," Henry said in a statement. "At the same time, we remain cautious given the current macroeconomic environment, including uncertainty around academic funding and the potential impact of trade policy developments."
For the quarter ended March 31, PacBio reported $37.2 million in revenues, down from $38.8 million during Q1 2024 and slightly above the firm's preliminary revenues and the Wall Street consensus estimate of $36.9 million. Of the total, $31.1 million was product revenue, down from $35.0 million, and $6.0 million was service and other revenue, up from $3.8 million.
Instrument revenue came in at $11.0 million, down 42 percent from $19.0 million, while consumable revenue totaled $20.1 million, up 26 percent from $16.0 million.
The firm sold 12 Revio systems during the quarter, compared to 28 during the year-ago quarter, and 28 Vega systems, which were not yet available a year ago. The installed base of Revio systems is now at 282.
Revenues from the Americas were $16.3 million, down 8 percent year over year, impacted by US government funding uncertainty. Europe, the Middle East, and Africa revenues were $9.3 million, up 11 percent year over year, driven by strong Revio placements in hospitals and clinics. Asia-Pacific revenues were $11.6 million, down 9 percent year over year, partially offset by strong consumables sales.
R&D expenses for the quarter dropped 33 percent to $29.1 million from $43.5 million last year, and SG&A costs fell 8 percent to $40.2 million from $43.8 million in Q1 2024.
PacBio's Q1 net loss was $426.1 million, or $1.44 per share, compared to a net loss of $78.2 million, or $.29, a year ago. Adjusted net loss per share was $.15, better than the average Wall Street estimate of a $.19 loss per share.
The net loss was driven by $381.8 million in charges during the quarter related to the firm's restructuring efforts and refocus on its long-read technology, announced in April, that were partially offset by an $18.7 million decrease in the fair value of a milestone payment.
PacBio also said an employee who was affected by the recent layoffs has made allegations regarding the firm's employment practices and cybersecurity matters. In response, the company has formed a committee of independent directors to investigate the allegations, noting that it does not believe the outcome will impact its financial results, though it may delay the filing of its 10-Q form for the first quarter.
PacBio ended the quarter with $343.1 million in cash and investments and $2.2 million in restricted cash.
In Friday morning trading on the Nasdaq, shares of PacBio were down 6 percent at $1.13.