Fulgent Genetics (FLGT) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenue was $71 million, with core revenue up 5% year-over-year to $70.2 million, driven by strong growth in precision diagnostics and progress in therapeutics development, including FID-007 phase 2 trial enrollment.

• Net loss attributable to shareholders was $8.7 million ($0.29 per share), while non-GAAP income was $4.7 million ($0.15 per share); adjusted EBITDA loss narrowed to $727,000.

• All laboratory service segments posted quarter-over-quarter growth for the first time since 2022, with precision diagnostics revenue up 35% year-over-year.

• Major operational milestone achieved with consolidation of labs into a new 96,000 sq ft facility in Coppell, Texas, enabling potential tripling of capacity.

• Recent acquisitions and integration efforts have expanded capabilities across diagnostics and therapeutics, supporting a vertically integrated precision medicine strategy.

Financial highlights

• Q2 2024 revenue was $71 million, up from $67.9 million in Q2 2023; core revenue was $70.2 million, with $841,000 from COVID-19 testing.

• GAAP gross margin was 37%; non-GAAP gross margin improved to 40.1% from 33.8% year-over-year.

• Adjusted EBITDA loss was $727,000; non-GAAP income was $4.7 million.

• Ended Q2 with $837.9 million in cash, cash equivalents, and marketable securities.

• LTM operating cash flow as of Q2 2024 was $37 million.

Outlook and guidance

• 2024 core revenue guidance reiterated at $280 million, representing 7% year-over-year growth.

• Full-year GAAP EPS loss guidance improved to approximately $1.95 per share; non-GAAP net loss guidance improved to $0.30 per share.

• Anticipated year-end cash balance of $800 million.

• Non-GAAP gross margins expected to remain in the high 30% range, targeting 40% by year-end.

• No revenue expected from therapeutics development in 2024.