Loading...
01/11 04:56
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals several challenges: declining instrument revenue due to academic funding uncertainty, regulatory and supply chain risks, and macroeconomic pressures. Despite cost reductions and improved margins, the lack of share buyback or dividends, coupled with unclear guidance on product placements and monetization, adds to investor concerns. The Q&A further highlights management's avoidance of specifics, which could lead to negative sentiment. The absence of strong catalysts, like partnerships or high revenue growth, alongside the challenges, suggests a likely negative stock price movement.
Revenue $37.2 million, a decrease of 4% from $38.8 million in Q1 2024 due to lower instrument revenue.
Instrument Revenue $11 million, a decrease of 42% from $19 million in Q1 2024, largely reflecting increased uncertainty in academic funding.
Consumable Revenue $20.1 million, an increase of 26% from $16 million in Q1 2024, driven by strong demand and fiscal year-end purchasing in Japan.
Service and Other Revenue $6 million, an increase from $3.8 million in Q1 2024, driven by an increase in service contract revenue related to Revio.
Non-GAAP Gross Profit $15 million, representing a non-GAAP gross margin of 40%, up from $12.6 million and 33% in Q1 2024, due to improved product mix and cost savings.
Non-GAAP Operating Expenses $61.7 million, a decrease of 29% from $87.2 million in Q1 2024, primarily due to restructuring initiatives.
Non-GAAP Net Loss $44.4 million, or $0.15 per share, compared to a net loss of $71.4 million, or $0.26 per share in Q1 2024.
Cash and Investments $343.1 million at the end of Q1 2025, down from $389.9 million at the end of Q4 2024.
Annualized Revenue Pull-Through per System Approximately $236,000.
Headcount 570 employees at the end of Q1 2025, down from 787 at the end of Q1 2024, due to restructuring.
New Product Launch: Continued rollout of new Spark chemistry, enhancing Revio’s data output and performance while reducing DNA input requirements. Nearly 90% of Revio reagent kit shipments in Q1 were Spark chemistry.
Product Performance: Early adopters of Spark chemistry reported yield increases of 46% compared to previous versions. Vega platform users achieved strong yields, exceeding specifications.
Future Product Development: Development of multi-use SMRT Cells to reduce sequencing costs and improve consumable gross margins. Accelerating development of ultra-high throughput long-read sequencing system.
Market Expansion: Growth among hospital and clinic customers, with significant placements in leading institutions. Approximately 50% of Vega shipments were to new customers.
Geographic Expansion: Collaboration with Chula Longhorn University in Thailand for a national newborn screening research program, marking a significant initiative in Southeast Asia.
Operational Efficiency: Restructuring plan executed in April to reduce operating costs by $45 million to $50 million annually. Non-GAAP operating expenses decreased by 29% year-over-year.
Cash Management: Expecting to end 2025 with approximately $270 million in cash and investments, improving cash burn by $72 million compared to 2024.
Strategic Shift: Focus on HiFi technology and long-read sequencing market, pausing development of high-throughput short-read sequencing platform.
Customer Engagement: Strong engagement through global PRISM 2025 event series, showcasing innovations and customer satisfaction with a Net Promoter Score over 50.
Competitive Pressures: Increased uncertainty in academic funding, particularly in the United States, has led to a decrease in instrument revenue, reflecting competitive pressures in the market.
Regulatory Issues: The impact of newly implemented tariffs between the U.S. and China, along with proposed NIH budget reductions for fiscal year 2026, introduces incremental risks that could affect revenue.
Supply Chain Challenges: Potential tariffs may increase costs of goods sold, impacting financial performance, although the company does not directly import materials from China.
Economic Factors: The macroeconomic environment remains challenging, with significant uncertainty in the academic research community affecting capital purchasing timelines.
Operational Risks: The company has implemented a restructuring plan to reduce operating costs, which includes headcount reductions and a focus on high-impact initiatives.
Restructuring Plan: Implemented a restructuring plan in April to narrow strategic focus and reduce operating costs, aiming to lower annualized non-GAAP operating expenses by approximately $45 million to $50 million by year-end.
Product Development: Advancing development programs for existing platforms (Revio and Vega) and launching multi-use SMRT Cells to reduce sequencing costs and improve consumable gross margins.
Ultra-High Throughput Sequencing: Accelerating development of a next-generation ultra-high throughput long-read sequencing system to enable human genome sequencing at or near price parity with short-read technology.
HiFi Technology Focus: Prioritizing HiFi technology and long-read sequencing market while pausing development of high-throughput short-read sequencing platform.
Customer Engagement: Engaging with customers through global PRISM 2025 event series to showcase innovations and gather insights.
Revenue Guidance: Expecting full-year 2025 revenue between $150 million and $170 million, adjusting the lower end by $5 million due to macroeconomic uncertainties.
Gross Margin Expectations: Expecting 2025 non-GAAP gross margin between 35% and 40%, with an improvement of over 400 basis points compared to 2024.
Operating Expenses Guidance: Expecting non-GAAP operating expenses to decline 14% to 17% compared to 2024, in the range of $240 million to $250 million.
Cash Flow Outlook: Aiming to achieve cash flow positive by the end of 2027, with an expected ending cash balance of approximately $270 million.
Cash Burn Improvement: Anticipating a $115 million cash burn in 2025, an improvement of $72 million compared to 2024.
Shareholder Return Plan: The company has not announced any share buyback or dividend program. However, they are focused on turning cash flow positive by the end of 2027 and have implemented a restructuring plan to reduce operating costs by approximately $45 million to $50 million annually.
The earnings call presents a mixed picture: improvements in gross margins and reduced operating expenses are positives, but declines in Americas and Asia Pacific revenues are concerning. The Q&A highlights temporary challenges in Vega placements and strategic moves towards clinical applications. While there is optimism about future growth, particularly in EMEA and China, the lack of specific guidance and ongoing challenges in academic funding temper expectations. This balance of positive and negative factors suggests a neutral short-term stock price movement.
The earnings call reveals mixed insights: strong international growth and product adoption are positive, but concerns over revenue guidance reduction and flat Revio placements offset these gains. The Q&A highlighted uncertainties, particularly around NIH funding and demand conversion, influencing a neutral outlook. Positive factors like reusable SMRT Cells improving margins are balanced by cautious revenue guidance and unresolved demand issues, leading to a neutral sentiment.
The earnings call reveals several challenges: declining instrument revenue due to academic funding uncertainty, regulatory and supply chain risks, and macroeconomic pressures. Despite cost reductions and improved margins, the lack of share buyback or dividends, coupled with unclear guidance on product placements and monetization, adds to investor concerns. The Q&A further highlights management's avoidance of specifics, which could lead to negative sentiment. The absence of strong catalysts, like partnerships or high revenue growth, alongside the challenges, suggests a likely negative stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
