Shares of Burning Rock Biotech Limited (NASDAQ: BNR) plummeted 8.73% in Tuesday's pre-market trading session following the release of the company's unaudited fourth quarter and full year 2024 financial results. The significant drop reflects investors' concerns about the company's financial performance and ongoing challenges.
The precision oncology company reported a 4% year-over-year decrease in total revenues for 2024, falling to RMB515.8 million (US$70.7 million) from RMB537.4 million in 2023. This decline was primarily attributed to a 24.6% decrease in revenue from the central laboratory business, which was only partially offset by a 19% increase in the in-hospital business segment.
While Burning Rock managed to narrow its net loss to RMB346.6 million (US$47.5 million) in 2024 from RMB653.7 million in 2023, the company still faces profitability challenges. Additionally, the report revealed an impairment loss on long-lived assets of RMB35.1 million (US$4.8 million) for the year, further impacting investor sentiment. The continued cash burn, with net cash used in operating activities amounting to RMB92.3 million for the year, also raises concerns about the company's financial sustainability in the competitive precision oncology market.
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