Menlo Park, California, USA
November 7, 2022
PacBio (NASDAQ: PACB) today announced financial results for the quarter ended September 30, 2022.
Third quarter results
- Revenue of $32.3 million, a 7% decrease compared with $34.9 million in the prior year period.
- Instrument revenue of $11.4 million, compared with $15.9 million in the prior year period.
- Consumables revenue of $16.1 million compared with $14.6 million in the prior year period.
- Service and other revenue of $4.8 million, compared with $4.4 million in the prior year period.
- Delivered 34 Sequel IIe systems, compared with 44 Sequel II/IIe systems in the prior year period.
- Installed base of 494 Sequel II/IIe systems as of September 30, 2022, compared with 326 as of September 30, 2021.
Gross profit for the third quarter of 2022 was $13.5 million, representing a 12% decrease compared with $15.4 million for the third quarter of 2021, and gross margin was 42% in the third quarter of 2022 compared to 44% for the third quarter of 2021. Excluding amortization of intangible assets, non-GAAP gross profit for the third quarter of 2022 was $13.7 million and represented a non-GAAP gross margin of 42% in the third quarter of 2022, compared to 45% for the third quarter of 2021, which also excluded a fair value inventory adjustment (see accompanying tables for reconciliations of GAAP and non-GAAP measures).
Operating expenses totaled $88.2 million for the third quarter of 2022, compared to $89.8 million for the third quarter of 2021. Excluding contingent consideration remeasurement and amortization of intangible assets, non-GAAP operating expenses totaled $83.8 million for the third quarter of 2022, compared to $59.1 million for the third quarter of 2021, which excluded merger-related expenses and amortization of intangible assets. Operating expenses for the third quarter of 2022 and the third quarter of 2021 included non-cash stock-based compensation of $18.0 million and $26.6 million, respectively. Excluding merger-related expenses, non-GAAP operating expenses in the third quarter of 2021 included $15.1 million of non-cash stock-based compensation.
Net loss for the third quarter of 2022 was $77.0 million, compared to net income of $16.5 million for the third quarter of 2021. Excluding contingent consideration remeasurement and amortization of intangible assets in the third quarter of 2022, non-GAAP net loss was $72.5 million, compared to a non-GAAP net loss of $47.2 million for the third quarter of 2021, which excluded an income tax benefit resulting from the acquisitions of Omniome and Circulomics, merger-related expenses and fair value inventory adjustments.
GAAP net loss per share for the third quarter of 2022 was $0.34 compared to basic and diluted GAAP net income per share of $0.08 for the third quarter of 2021. Non-GAAP net loss per share for the third quarter of 2022 was $0.32 compared to $0.23 for the third quarter of 2021.
Cash, cash equivalents, and investments, excluding short and long-term restricted cash, at September 30, 2022, totaled $834.3 million, compared to $1,044.4 million at December 31, 2021.
Recent company updates
- Announced the launch of Revio™, a revolutionary new long-read sequencing system capable of delivering up to 1,300 human genomes per year with 30x coverage at under $1,000 per genome. We expect to begin shipping Revio in the first quarter of 2023.
- Introduced the Onso™ short-read sequencing system based on SBB (Sequencing by Binding) chemistry, which is expected to provide a 10-fold improvement in accuracy compared with other commercially available systems. We expect to begin shipping Onso in the first half of 2023.
- Launched the MAS-Seq kit in partnership with the Broad Institute and 10x Genomics to enable cost-effective, long-read, single-cell RNA sequencing for a more complete interrogation of the transcriptome.
- Collaborated with Twist Bioscience to launch a portfolio of off-the-shelf long-read gene panels designed to capture target regions in a cost-effective and high throughput manner.
- Unveiled TGRT, a new computational analysis method for profiling more than a million tandem repeats across the human genome and enables scientists to better understand the role of tandem repeats in human disease.
- Created the Scientific Advisory Board, bringing together a group of renowned scientific experts to provide critical feedback, advice, and expertise on future technological and scientific direction.
- Partnered with leading researchers to create the Consortium for Long Read Sequencing (CoLoRS), an open coalition of international researchers focused on cataloging and providing frequency information for all classes of variation found within the human genome, using long-read whole genome sequencing.
- Shipped our 1,000th sequencer since the launch of the RS sequencing platform in 2011.
"It’s a historical moment at PacBio as we prepare the launch of two new, groundbreaking sequencing platforms in the first half of 2023," said Christian Henry, President and Chief Executive Officer. "RevioTM, our new long-read sequencing system, can enable scientists to sequence thousands of complete whole genomes economically. OnsoTM, our first short-read sequencing platform, has the potential to provide industry-leading accuracy allowing researchers to interrogate biology at unprecedented levels. We believe customer anticipation of a new long-read platform drove delays in instrument purchases; however, we were encouraged by their feedback and excitement for both platforms and how these systems can accelerate their research. I’m also looking forward to sharing more details regarding Revio and Onso at our first Investor Day in New York City next week."
2022 Financial Guidance
As previously announced, we are withdrawing all prior financial guidance in light of our recent product announcements.
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