Pacific Biosciences of California, Inc. (PacBio) reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue decreasing by 23% to $154 million, down from $200.5 million in 2023. The revenue breakdown included $65.8 million from instrument sales, $70.3 million from consumables, and $17.9 million from services. The decrease in revenue was primarily attributed to lower sales of the Revio systems, which saw unit sales drop from 173 in 2023 to 97 in 2024, alongside reduced average selling prices. Despite these challenges, consumable sales increased, reflecting a growing installed base of Revio instruments.
The company's gross profit also fell, decreasing by 29% to $37.3 million, resulting in a gross margin of 24%, down from 26% the previous year. This decline was influenced by restructuring charges and increased amortization of acquired intangible assets. Operating losses increased by 42% to $474.3 million, driven by $184.5 million in impairment charges and restructuring costs. The company ended the year with cash, cash equivalents, and investments totaling $389.9 million, a 38% decrease from $631.4 million in 2023, largely due to cash used in operations and payments related to convertible notes.
In terms of strategic developments, PacBio launched the Vega benchtop sequencer in 2024, aimed at making long-read sequencing more accessible. Additionally, the company introduced SPRQ chemistry for the Revio system, which is expected to enhance sequencing efficiency and reduce costs. The company also commenced commercial shipments of the PureTarget repeat expansion panel and released new kits for DNA extraction and library preparation. These product launches are part of PacBio's strategy to broaden its market reach and improve clinical outcomes.
Operationally, PacBio's workforce consisted of 575 full-time employees as of December 31, 2024, with a focus on research and development, operations, and sales. The company reported a backlog of approximately $31.2 million, up from $18.7 million in the previous year, indicating potential future revenue. However, the company acknowledged that the sales cycle for its instruments has lengthened, influenced by uncertainties in funding for new capital equipment, particularly from government sources.
Looking ahead, PacBio aims to grow revenue and expand gross margins through the full-scale release of the Vega platform, increased adoption of the Revio system, and continued investment in product launches. The company remains cautious about macroeconomic factors, including inflation and geopolitical tensions, which could impact its operations and financial results. Despite the challenges, PacBio is focused on leveraging its advanced sequencing technologies to capture a larger share of the growing genomics market.
About PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
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