Burning Rock Biotech (BNR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were RMB135.5 million ($18.7M), down 7.3% year-over-year, reflecting a shift from central-lab to in-hospital testing.

• In-hospital segment revenue grew 11.2% year-over-year, while central lab revenue declined 26.4%.

• Net loss narrowed to RMB108.0 million ($14.9M) from RMB131.2 million a year ago.

• Announced new companion diagnostics collaboration with Bayer in China.

• Presented key oncology study results at ASCO 2024.

Financial highlights

• Gross profit was RMB95.4 million ($13.1M), down 5.0% year-over-year; gross margin improved to 70.4% from 68.7%.

• Non-GAAP gross profit was RMB101.9 million ($14.0M), down 6.8% year-over-year; non-GAAP gross margin rose to 75.2%.

• Operating expenses fell 12.5% year-over-year to RMB206.7 million ($28.4M), driven by cost controls and headcount reduction.

• R&D expenses dropped 32.2% year-over-year to RMB65.0 million ($8.9M); selling and marketing expenses fell 31.0% to RMB48.9 million ($6.7M).

• General and administrative expenses increased 33.5% year-over-year to RMB92.8 million ($12.8M), mainly due to higher share-based compensation.

Segment performance

• In-hospital business revenue rose 11.2% year-over-year to RMB59.9 million ($8.2M), with gross margin up to 73.6% from 62.0%.

• Central laboratory revenue declined 26.4% year-over-year to RMB48.8 million ($6.7M), gross margin slightly up to 78.8%.

• Pharma R&D services revenue increased 2.6% year-over-year to RMB26.9 million ($3.7M), but gross margin fell to 48.2% from 58.0%.