Loading...
01/11 03:09
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals a mixed financial performance with declining instrument revenue and flat guidance. The Q&A highlights concerns about funding uncertainties and declining CapEx, particularly in academia and government sectors. While gross margins improved, the lack of a share repurchase program and weak guidance with possible headcount reductions point to ongoing challenges. The market cap suggests a moderate reaction, resulting in a negative sentiment prediction of -2% to -8% over the next two weeks.
Total Revenue $155 million, down 2% year-over-year, primarily driven by a significant decrease in instrument revenue offset by continued strength in consumables.
Excluding License and Royalty Revenue $138 million, down 2% year-over-year, primarily driven by a significant decrease in instrument revenue.
Total Consumables Revenue $115.4 million, up 5% year-over-year.
Chromium Consumables Revenue $84.1 million, approximately flat year-over-year.
Spatial Consumables Revenue $31.2 million, up 18% year-over-year, driven by Xenium consumables revenue.
Total Instrument Revenue $14.8 million, down 42% year-over-year.
Chromium Instrument Revenue $5.9 million, down 25% year-over-year, driven primarily by lower average selling prices.
Spatial Instrument Revenue $8.9 million, down 49% year-over-year, driven primarily by fewer instruments sold.
Gross Profit $105.4 million, up from $92.9 million year-over-year.
Gross Margin 68%, up from 66% year-over-year, primarily driven by higher license and royalty revenue and lower manufacturing costs.
Total Operating Expenses $144.8 million, down from $154.4 million year-over-year, primarily driven by a gain on settlement.
R&D Expenses $64.2 million, down from $68.6 million year-over-year, primarily driven by lower personnel expenses.
SG&A Expenses $89.7 million, up from $85.8 million year-over-year, primarily driven by an increase in outside legal and personnel expenses.
Operating Loss $39.3 million, improved from a loss of $61.5 million year-over-year.
Net Loss $34.4 million, improved from a net loss of $59.9 million year-over-year.
Cash Position $427 million in cash, cash equivalents, and marketable securities.
New Product Launches: Recent and upcoming product launches are resonating with customers, including the new plate-based Chromium Flex product, Visium HD, and Xenium 5K assays.
Product Adoption: Strong adoption of Flex and universal on-chip multiplexing products, with robust year-over-year growth in Chromium reaction volumes.
Xenium Platform Growth: Increased usage of Xenium demonstrated by strong growth in consumable revenue and volume.
Market Expansion: Continued strength in consumables revenue, with spatial consumables revenue up 18% driven by Xenium.
Geographic Revenue Trends: APAC revenue increased by 22%, while Americas and EMEA saw declines of 7% and 8%, respectively.
Workforce Reduction: Reduction of global workforce by approximately 8% to improve operational efficiency.
Cost Saving Measures: Anticipated reduction in operating expenses for 2025 by more than $50 million compared to 2024.
Revenue Guidance Change: Withdrawing full year revenue guidance due to uncertainty in U.S. academic and government research funding.
Sales Reorganization: Completed sales reorganization to enhance structure and focus in response to market challenges.
Research Funding Risks: Significant changes in the macro environment have led to a deterioration in the research funding landscape, particularly affecting U.S. academic and government labs. This includes delays, reductions, and cancellations of grants, creating a climate of uncertainty for customers.
Revenue Guidance Withdrawal: Due to the unpredictable purchasing behavior of customers stemming from funding uncertainties, the company has withdrawn its full-year revenue guidance and will implement quarterly guidance instead.
Economic Pressures: Approximately 40% to 50% of the company's revenue is dependent on U.S. academic and government research funding, making it highly exposed to ongoing economic uncertainties.
Supply Chain Challenges: The evolving tariff landscape poses potential risks, particularly regarding sales to China, which accounted for about 10% of revenue in 2024. However, the company believes the impact from proposed tariffs will be minimal due to its global manufacturing footprint.
Operational Adjustments: In response to the challenging environment, the company has reduced its workforce by approximately 8% and implemented cost-saving measures to protect its balance sheet.
Settlement with Vizgen: Settled worldwide patent litigation with Vizgen on favorable terms, receiving $26 million.
Sales Reorganization: Completed sales reorganization to enhance structure, coverage, and focus.
Cost Reduction Measures: Implemented a reduction in workforce by approximately 8% and reduced non-headcount related expenses.
Product Launches: Recent product launches include Chromium Flex, Visium HD, and Xenium 5K assays, aimed at expanding market reach.
AI Collaborations: Partnerships with Chan Zuckerberg Initiative and Arc Institute to leverage AI in biological research.
Revenue Guidance: Withdrew full year revenue guidance due to uncertainty in U.S. academic and government research funding.
Q2 Revenue Expectations: Expect Q2 revenue between $138 million to $142 million, reflecting a 1% growth sequentially at the midpoint.
Operating Expense Reduction: Anticipate reducing operating expenses by more than $50 million in 2025 compared to 2024.
Cash Position: Ended Q1 with $427 million in cash, cash equivalents, and marketable securities.
Long-term Growth Confidence: Despite current challenges, confident in long-term growth potential and ability to navigate through turbulence.
Share Repurchase Program: None
The company shows strong product development with new launches and acquisitions, optimistic guidance in spatial biology, and positive market trends. Despite cautious spending and macroeconomic uncertainties, management is confident in their leadership and growth potential, especially in China and Europe. The Q&A session highlighted enthusiasm for new products and strategic positioning against competitors. The market cap suggests moderate sensitivity, leading to a positive stock price prediction.
The earnings call presented mixed signals. Strong financial metrics, such as improved gross margins and a shift from loss to net income, were overshadowed by the withdrawal of revenue guidance and ongoing macroeconomic challenges impacting customer spending. The Q&A revealed cautious optimism but highlighted uncertainties in funding and spending, particularly in the academic sector. The Scale acquisition and product roadmap offer potential, but immediate impact is limited. The market cap suggests moderate stock movement, leading to a neutral prediction.
The earnings call reveals a mixed financial performance with declining instrument revenue and flat guidance. The Q&A highlights concerns about funding uncertainties and declining CapEx, particularly in academia and government sectors. While gross margins improved, the lack of a share repurchase program and weak guidance with possible headcount reductions point to ongoing challenges. The market cap suggests a moderate reaction, resulting in a negative sentiment prediction of -2% to -8% over the next two weeks.
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.
