Yahoo Finance Bionano Genomics Inc (BNGO) Q1 2024 Earnings Call Transcript Highlights: Strong Revenue Growth ...
Revenue: $8.8 million in Q1 2024, up 18% year-over-year.
Core Revenue: $7.3 million in Q1 2024, up 21% from $6.1 million in Q1 2023.
ODM Installed Base: Grew to 347 systems, a 34% increase year-over-year.
Flow Cells Sold: 8,249 in Q1 2024, a 58% increase from Q1 2023.
GAAP Gross Margin: 32% in Q1 2024, improved from 28% in Q1 2023.
Non-GAAP Gross Margin: 34% in Q1 2024, up from 30% in Q1 2023.
GAAP Operating Expense: $33.9 million in Q1 2024, down from $39.9 million in Q1 2023.
Non-GAAP Operating Expense: $24.7 million in Q1 2024, reduced from $33.6 million in Q1 2023.
Cash and Equivalents: $53.2 million as of March 31, 2024, down from $102.3 million as of December 31, 2023.
Q2 Revenue Guidance: Expected to be between $7.8 million and $8.2 million.
Full Year 2024 Revenue Guidance: Maintained at $37 million to $41 million.
Release Date: May 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Revenue increased by 18% year-over-year, with core revenues growing 21% compared to the same period in 2023.
The ODM installed base grew to 347 systems, representing a 34% increase over the previous year.
GAAP gross margin improved from 28% in Q1 2023 to 32% in Q1 2024, with non-GAAP gross margin also increasing from 30% to 34%.
Significant growth in the number of optical genome mapping publications, with a 83% increase compared to Q1 2023.
Successful introduction and positive early feedback for the Stratus system, enhancing the company's product portfolio.
Negative Points
A decrease in total cash balance from $102.3 million at the end of 2023 to $53.2 million by March 31, 2024.
Continued need for capital raising to extend cash runway and achieve profitability amid challenging capital market conditions.
Restructuring expenses and operational adjustments, including a workforce reduction of over 200 people since May 2023.
The company discontinued certain clinical services, impacting revenue streams.
Dependence on future product launches and market adoption for sustained growth, as indicated by the planned full commercial release of new products in Q3 2024.
Q & A Highlights
Q: Thanks for taking the question. I was curious if there were any Stratus placements in the first quarter or upgrades from Sapphire to Stratus in the first quarter? A: R. Erik Holmlin - Bionano Genomics Inc - President, Chief Executive Officer, Director: In the first quarter, we saw several successful programs that involved Stratus. We're not currently breaking out Stratus from the overall total number of OGM systems, but the progress continues to be solid. Anecdotally, we haven't seen a conversion yet, but several discussions are ongoing which might influence the dynamics of the installed base growth going forward.
Q: And then, Eric, you talked about the capital spending constraints. Are you seeing a split between instrument sales versus reagent rentals, and is that ticking up towards the reagent rentals side in the current environment? A: R. Erik Holmlin - Bionano Genomics Inc - President, Chief Executive Officer, Director: In our quarter, reagent rentals edged out capital sales, which is slightly elevated but within normal ranges. This is a very attractive vehicle to bring a system in, and we're paying attention to it going forward. We recognize that our peers are definitely seeing this pressure, but optical genome mapping is unique, and the deals getting done have been in the works for a while.
Q: Great to see nice traction there for the early access sites of the Ionic purification system. How should we think about the potential ramp of that platform? Do you expect the early adopters to be Stratus customers purchasing Stratus systems as well? Where do you anticipate a significant portion of your existing Sapphire customers to also adopt? And could this gear be used outside of OGM applications? A: R. Erik Holmlin - Bionano Genomics Inc - President, Chief Executive Officer, Director: The Eyak system has been available for a couple of years now, mainly used for nucleic acid isolation from various sample types, especially FFPE samples. We see it as a very interesting product and a source of revenues going forward. Regarding adoption around optical genome mapping, we expect higher volume routine users, including existing Sapphire sites, to integrate the Ionic system into their workflows. Stratus users are likely to be the more obvious adopters of ICE attacker freezes.
Q: Could you provide more details on the financial performance this quarter? A: Gulsen Kama - Bionano Genomics Inc - Chief Financial Officer: In Q1 2024, revenue was $8.8 million, an 18% year-over-year increase. Core revenues were $7.3 million, up 21% year-over-year. GAAP gross margin was 32%, improved from 28% in Q1 2023. Non-GAAP gross margin was 34%, up from 30% last year. Our cash, cash equivalents, and available-for-sale securities as of March 31, 2024, were $53.2 million. We raised $15.1 million in net proceeds through our ATM facility this quarter.
Q: What are the key updates to your product portfolio that you believe will drive growth? A: R. Erik Holmlin - Bionano Genomics Inc - President, Chief Executive Officer, Director: Key updates include the fully commercially available Stratus system, with positive early feedback. We're shipping commercial production units now and have the capacity to meet expected demand. We also plan to release improvements to the data analysis processing time on the Stratus compute and are addressing the DNA isolation bottleneck with ICO tackle for Rhesus technology on the bionic system.
Q: Can you comment on the application submitted for a category one CPT code covering optical genome mapping? A: R. Erik Holmlin - Bionano Genomics Inc - President, Chief Executive Officer, Director: The application for a category one CPT code is the third one submitted for optical genome mapping. The previous two were withdrawn before the editorial panel meeting. This time, it will go in front of the panel, which we view as a sign of progress. We are eagerly awaiting the outcome, which will be published publicly on or before June 6.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
