Menlo Park, California, USA
February 16, 2023
PacBio (NASDAQ: PACB) today announced financial results for the quarter and fiscal year ended December 31, 2022.
Fourth quarter results
- Received record orders in the fourth quarter, including orders for 96 instruments, which included orders for 76 Revio systems from 43 customers across 13 countries and representing a broad set of applications.
- Revenue of $27.4 million, a 24% decrease compared with $36.0 million in the prior year period.
- Instrument revenue of $6.1 million, compared with $16.2 million in the prior-year period.
- Consumables revenue of $16.7 million compared with $15.0 million in the prior year period. Sequel II and IIe consumables represented approximately 94% of our total consumable revenue in the fourth quarter of 2022, with the rest from older systems and other consumables.
- Service and other revenue of $4.6 million compared with $4.8 million in the prior year period.
- Delivered 18 Sequel IIe systems, compared with 48 Sequel II/IIe systems in the prior year period.
- Installed base of 512 Sequel II/IIe systems as of December 31, 2022, compared with 374 as of December 31, 2021.
Gross profit for the fourth quarter of 2022 was $5.1 million, representing a 69% decrease compared with $16.8 million for the fourth quarter of 2021 and a gross margin of 19% in the fourth quarter of 2022 compared to 47% for the fourth quarter of 2021. Non-GAAP gross profit for the fourth quarter of 2022 was $5.3 million and represented a non-GAAP gross margin of 19% in the fourth quarter of 2022, compared to 47% for the fourth quarter of 2021 (see accompanying tables for reconciliations of GAAP and non-GAAP measures).
Operating expenses totaled $92.2 million for the fourth quarter of 2022, compared to $81.4 million for the fourth quarter of 2021. Non-GAAP operating expenses totaled $87.6 million for the fourth quarter of 2022, compared to $79.9 million for the fourth quarter of 2021. Operating expenses for the fourth quarter of 2022 and the fourth quarter of 2021 included non-cash share-based compensation of $16.8 million and $17.5 million, respectively.
Net loss for the fourth quarter of 2022 was $84.4 million, compared to a net loss of $69.3 million for the fourth quarter of 2021. Non-GAAP net loss was $79.6 million for the fourth quarter of 2022, compared to $66.4 million for the prior-year period.
Net loss per share for the fourth quarter of 2022 was $0.37 compared to net loss per share of $0.31 for the fourth quarter of 2021. Non-GAAP net loss per share for the fourth quarter of 2022 was $0.35 compared to $0.30 for the fourth quarter of 2021.
GAAP and non-GAAP gross profit, net loss, and net loss per share in the fourth quarter reflect loss on purchase commitments and adjustments for excess inventory totaling approximately $7.1 million primarily related to a faster-than-expected ramp in Revio demand, which resulted in a faster-than-expected decline in Sequel II/IIe demand upon the launch of Revio.
Cash, cash equivalents, and investments, excluding short- and long-term restricted cash, at December 31, 2022, totaled $772.3 million, compared to $1,044.4 million at December 31, 2021.
Fiscal year 2022 results
- Revenue of $128.3 million, a 2% decrease compared with $130.5 million in 2021.
- Placed 138 Sequel II/IIe systems during the year compared to 171 Sequel II/IIe systems placed in 2021.
- Instrument revenue of $48.7 million compared with $61.3 million in 2021.
- Consumables revenue of $60.0 million compared with $52.2 million in 2021.
- Service and other revenue of $19.6 million compared with $17.0 million in 2021.
Gross profit for 2022 was $49.0 million, representing a 17% decrease compared with $58.9 million for 2021 and gross margin of 38% compared to 45% for 2021. Non-GAAP gross profit for 2022 was $49.8 million and represented a non-GAAP gross margin of 39%, compared to 45% for 2021.
Operating expenses totaled $356.2 million, compared to $269.3 million for 2021. Non-GAAP operating expenses totaled $353.7 million, compared to $236.9 million for 2021. Operating expenses for 2022 and 2021 included non-cash share-based compensation of $73.8 million and $67.2 million, respectively. Excluding merger-related expenses, non-GAAP operating expenses included non-cash share-based compensation of $73.8 million in 2022 compared to $55.7 million in 2021.
Net loss for 2022 was $314.2 million, compared to a net loss of $181.2 million for 2021. Non-GAAP net loss was $311.0 million, compared to $190.0 million for 2021.
Net loss per share for 2022 was $1.40, compared to net loss per share of $0.89 for 2021. Non-GAAP net loss per share for 2022 was $1.38 compared to $0.93 for 2021.
Updates since our last earnings release
- Celebrated long-read sequencing being named Nature Methods’ "Method of the Year 2022," recognizing the impact of long-read sequencing in various groundbreaking studies, including those leveraging PacBio.
- Shipped our first early access Revio system to the Broad Institute and expect to commence commercial Revio shipments in March 2023.
- Delivered Onso to three beta customers, including the Broad Institute, Corteva Agriscience, and Weill Cornell Medical College, and remain on track to begin commercialization of Onso in the second quarter of 2023.
- Announced plans to expand MAS-Seq technology to 16S rRNA and bulk RNA-Seq solutions, which can expand throughput in these applications by up to 16-fold through short fragment concatenation.
- Introduced the PacBio Compatible program designed to make PacBio sequencing more accessible, which includes partners across all ends of the sequencing workflow, from automation and sample and library prep to secondary and tertiary analysis tools.
- Announced a collaboration with the University of Tokyo Graduate School of Medicine to study the use of long-read sequencing and novel bioinformatics methods in the hopes of better understanding the genetic causes of certain rare diseases in individuals and cohorts within the Japanese population.
- Announced HiFi sequencing technology will be used in a pilot project for the Children’s Rare Disease Cohorts Initiative (CRDC) at Boston Children’s Hospital to investigate genetic and epigenetic variants associated with rare pediatric diseases.
- Raised approximately $201 million in gross proceeds in an upsized public offering of common stock in January 2023.
"The year is off to an excellent start with a strong Revio order book and continued customer enthusiasm for the new product," said Christian Henry, President, and Chief Executive Officer. "Momentum is clearly building for highly accurate, long-read solutions, with Nature Methods naming long-read sequencing its ‘Method of the Year’ and studies like the preprint from All of Us researchers concluding that we should continue developing population-scale cohorts sequenced with long-reads only."
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