Menlo Park, California, USA
August 3, 2022
PacBio (NASDAQ: PACB) today announced financial results for the quarter ended June 30, 2022.
Second quarter results
- Revenue of $35.5 million, a 16% increase compared with $30.6 million in the prior year period.
- Delivered 36 Sequel II/IIe systems, compared with 38 Sequel II/IIe systems in the prior year period.
- Installed base of 460 Sequel II/IIe systems as of June 30, 2022, compared with 282 as of June 30, 2021.
- Instrument revenue of $15.6 million, compared with $14.3 million in the prior year period.
- Consumables revenue of $14.6 million compared with $12.2 million in the prior year period.
- Service and other revenue of $5.3 million, compared with $4.1 million in the prior year period.
Gross profit for the second quarter of 2022 was $16.2 million, representing an 18% increase compared with $13.8 million for the second quarter of 2021, and gross margin was 46% in the second quarter of 2022 compared to 45% for the second quarter of 2021. Excluding amortization of intangible assets, non-GAAP gross profit for the second quarter of 2022 was $16.4 million and represented a non-GAAP gross margin of 46% in the second quarter of 2022, compared to 45% for the second quarter of 2021 (see accompanying tables for reconciliations of GAAP and non-GAAP measures).
Operating expenses totaled $84.2 million for the second quarter of 2022, compared to $51.3 million for the second quarter of 2021. Excluding contingent consideration remeasurement and amortization of intangible assets, non-GAAP operating expenses totaled $89.6 million for the second quarter of 2022, compared to $51.3 million for the second quarter of 2021. Operating expenses for the second quarter of 2022 and the second quarter of 2021 included non-cash stock-based compensation of $18.0 million and $13.9 million, respectively.
Net loss for the second quarter of 2022 was $71.4 million, compared to a net loss of $41.0 million for the second quarter of 2021. Excluding contingent consideration remeasurement and amortization of intangible assets in the second quarter of 2022, non-GAAP net loss was $76.6 million, compared to $41.0 million for the second quarter of 2021.
GAAP net loss per share for the second quarter of 2022 was $0.32 compared to GAAP net loss per share of $0.21 for the second quarter of 2021. Non-GAAP net loss per share for the second quarter of 2022 was $0.34 compared to $0.21 for the second quarter of 2021.
Cash, cash equivalents, and investments, excluding short and long-term restricted cash, at June 30, 2022, totaled $899.2 million, compared to $1,044.4 million at December 31, 2021.
Recent company updates
- Shared information and data highlighting the accuracy and variant calling performance of our Sequencing by BindingTM short read chemistry in development at the Advances in Genome Biology and Technology (AGBT) annual meeting.
- Launched custom HiFi target enrichment panels in collaboration with Twist Bioscience for comprehensive variant calling of medically relevant genes that are challenging to sequence with short read technology.
- In April, we successfully released the latest Sequel II/IIe platform updates, which include our new direct methylation calling feature, which enables 5mC epigenetic profiling with no additional cost. Additionally, we released new gene-therapy workflows to support the expanding AAV sequencing markets.
- Published our inaugural ESG Highlights Report showcasing our approach to environmental sustainability, social justice, and responsible governance and our progress in these areas.
- Partnered with iLAC and Robotic Biology Institute, Inc. to develop fully automated end-to-end workflows for PacBio’s Sequel II and Sequel IIe HiFi long-read sequencing systems by employing advanced robotics.
- Appointed Jeff Eidel as Chief Commercial Officer, effective August 16, 2022, bringing diverse, multidisciplinary leadership expertise across the genomics industry.
- Amended our development and commercialization agreement with Invitae Corporation to incentivize the acceleration of Invitae’s adoption of HiFi technology and allow for continued collaboration between PacBio and Invitae toward developing next generation sequencers, including an ultra-high throughput sequencer.
"We continued to make progress expanding our Sequel IIe installed base in the quarter. However, it’s clear that macroeconomic factors such as COVID lockdowns, increased inflation, strengthening U.S. dollar, supply chain issues, and volatile capital markets are affecting our customers and particularly delaying instrument purchases," said Christian Henry, President and Chief Executive Officer. "We believe the impact from these factors is transitory, and PacBio remains in a solid position to progress our product pipeline, serve our customers, and drive growth in 2022 and beyond. Our products address a vast and expanding sequencing market, and we look forward to sharing more about our strategies and business opportunities at an Analyst Day this November."
2022 Financial Guidance
As a result of macroeconomic factors discussed above, PacBio now expects 2022 revenue to be in the range of $138 million to $145 million. Management will provide more detail on financial guidance on the quarterly conference call today.
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its second quarter ended June 30, 2022, results today at 5:00 p.m. Eastern Time. Investors may listen to the call by dialing 866-652-5200, or if outside the U.S., by dialing 412-317-6060, and request to join the "PacBio Q2 Earnings Call." The call will be webcast live and will be available for replay at PacBio’s website at https://investor.pacificbiosciences.com.
About PacBio
Pacific Biosciences of California, Inc. (NASDAQ: PACB) is a premier life science technology company that is designing, developing and manufacturing advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. Our products and technology under development stem from two highly differentiated core technologies focused on accuracy, quality and completeness which include our existing HiFi long read sequencing and our emerging SBBTM short read sequencing technologies. Our products address solutions across a broad set of research applications including human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. For more information, please visit www.pacb.com and follow @PacBio.
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