PacBio, a leading life science technology company, has announced its preliminary unaudited revenue for the first quarter of 2024. The company reported preliminary revenue of $38.8 million, which is roughly flat compared to the prior-year period. This included instrument revenue of $19.0 million and consumables revenue of $16.0 million. However, consumable revenue in the first quarter of 2024 was below expectations, primarily due to slower-than-expected ramp-up in sequencing by small* to mid-sized customers and sample delays impacting sequencing volume at certain large customers.
The company's total preliminary cash, cash equivalents, and investments balance as of March 31, 2024, was approximately $562 million.
PacBio's President and CEO, Christian Henry, commented on the company's performance, stating that the first quarter came in below their original expectations due to an increasing number of customers delaying instrument purchases and unexpected softness in consumable shipments. As a result, the company has revised its 2024 revenue guidance to be in the range of $170 million to $200 million, significantly lower than its prior expectations. The company also anticipates reducing annualized operating expenses on a non-GAAP basis by $50 million to $75 million by the end of 2024.
Despite the near-term headwinds, Henry remains confident in the company's long-term growth potential. He highlighted the successful adoption of the Revio system by new customers and significant traction with large-scale projects, such as the Estonia national biobank project and pediatric genome initiatives at hospitals in Canada and Korea.
The company expects to provide further details on its full-year outlook on its earnings call scheduled for May 9, 2024. Additionally, PacBio will hold its quarterly conference call on May 9, 2024, at 5:00 p.m. Eastern Time to discuss its first quarter 2024 financial results.
With the reduced revenue forecast and the planned cost reduction initiatives, PacBio currently expects to end 2024 with a cash, cash equivalents, and investments balance in the range of $435 million to $450 million.
In light of the preliminary unaudited financial information, investors are encouraged to await the finalization of the results in May 2024 and to refer to the company's upcoming earnings call for a comprehensive understanding of PacBio's financial performance and outlook. As a result of these announcements, the company's shares have moved -40.9% on the market, and are now trading at a price of $1.68. If you want to know more, read the company's complete 8-K report here.
