Standard BioTools (LAB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $45 million, up 21% sequentially but down 5% year-over-year; year-to-date revenue reached $128 million, with full-year guidance reiterated at $170–$175 million.

• Achieved $80 million in cost synergies from the SomaLogic merger ahead of schedule, supporting a 50% improvement in adjusted EBITDA and a 35% net loss improvement year-over-year.

• Net loss for Q3 2024 was $26.9 million, with significant merger-related costs and a $25.2 million bargain purchase gain recognized.

• Well-capitalized with $368 million in cash and short-term investments as of September 30, 2024.

• Strategic reorganization underway, including a 10% workforce reduction and share repurchases to realize merger synergies.

Financial highlights

• Q3 2024 revenue: $45 million (down 5% year-over-year, up 21% sequentially); year-to-date: $128 million (down 9% year-over-year).

• Gross margin for Q3 2024: 51.7% GAAP, 56.9% non-GAAP, up from prior year; year-to-date non-GAAP gross margin: 53%.

• Non-GAAP operating expenses reduced by 24% year-over-year to $39.8 million in Q3; adjusted EBITDA loss improved by 50% to $14 million.

• Consumables revenue grew 13% year-over-year to $14 million; instrument revenue declined 42% to $5.6 million; services revenue was flat at $24.4 million.

• Cash burn improved, with adjusted cash burn at $21.3 million in Q3 and cash and equivalents at $368 million.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at $170–$175 million.

• Targeting adjusted EBITDA break-even for full year 2026, with full realization of $80 million merger synergies expected in 2025.

• Cash runway sufficient to fund operations until reaching positive cash flow.

• No expectation of significant year-end budget flush; Q4 guidance assumes stable environment with a slight uptick in instruments.

• General and administrative expenses expected to trend downward in the second half of 2024.