• Revenue: $46.7 million in Q4 2024; $175.1 million for full year 2024, both down 9% year-over-year.
• Consumables Revenue: Grew 10% in Q4 and 18% for the full year 2024.
• Instrument Sales: Declined 25% in Q4 and 27% for the full year 2024.
• Lab Services Revenue: Down 18% in Q4 and 21% for the full year 2024.
• Field Services Revenue: Down 10% in Q4 2024 and 2% for the full year 2024.
• Non-GAAP Gross Margin: 52.5% in Q4 2024; 53.0% for full year 2024.
• Non-GAAP Operating Expenses: $42.9 million in Q4 2024, a 24% reduction year-over-year; $180.1 million for full year 2024, a 22% reduction.
• Adjusted EBITDA: $18.4 million loss in Q4 2024, a 34% improvement year-over-year; $87.3 million loss for full year 2024, a 33% improvement.
• Cash Position: Approximately $295 million at year-end 2024.
• 2025 Revenue Guidance: Expected to be between $165 million and $175 million.

• Warning! GuruFocus has detected 5 Warning Signs with LAB.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Standard BioTools Inc (NASDAQ:LAB) successfully merged two businesses, exceeding cost synergy targets and improving processes.
• The company achieved a 22% year-over-year reduction in non-GAAP operating expenses and a 33% improvement in adjusted EBITDA for the full year 2024.
• Consumables delivered double-digit growth in the fourth quarter and for the full year, driven by expansion of SomaScan-authorized sites and elevated demand.
• The company has nearly $300 million in cash, providing a strong balance sheet to execute strategic plans and fund future acquisitions.
• The partnership with Illumina is expected to unlock a significant market opportunity in proteomics, with a potential market size of $1 billion.

Negative Points

• Revenue for the fourth quarter and full year 2024 declined by 9% year-over-year, impacted by softness in instrument and services sales.
• The company anticipates a 3% decline in organic revenue for 2025, reflecting a cautious market outlook.
• There is potential impact from a reduction in NIH funding, which could affect overall academia spending and delay capital equipment purchases.
• Instrument sales were down 25% in the fourth quarter and 27% for the full year 2024 due to constrained capital spending in end markets.
• Service revenue declined mid-teens year-over-year, driven by variability in demand from a few large pharma accounts.

Q & A Highlights

Q: Can you provide more details on the anticipated impact of NIH funding reductions on your business? A: Michael Egholm, President and CEO, explained that while they haven't seen significant impacts yet, they anticipate reduced spending in the Americas academia, particularly affecting instrument sales due to budget constraints. Alex Kim, CFO, added that the majority of the impact is expected on the instrument side, with some effect on consumables and services.

Q: Could you elaborate on the potential of the Illumina partnership in the proteomics market? A: Michael Egholm highlighted the significant opportunity in plasma proteomics, estimating it as a billion-dollar market. He emphasized that their SomaScan platform is uniquely positioned to capture this market due to its ability to analyze a substantial part of the proteome. Alex Kim noted that while 2025 will be a transition year, they expect stronger growth in 2026 and beyond as new sites ramp up.

Q: Are there any opportunities in China for your proteomic instruments, considering the current trade environment? A: Michael Egholm stated that they have a strong team in China and are seeing good traction, suggesting that the current year looks better than the last. They remain focused on pushing their products in the Chinese market despite the complex trade environment.

Q: What is the strategy for M&A, and how should we think about the size and timing of potential deals? A: Michael Egholm mentioned that they have a rich funnel of M&A opportunities and are actively working on multiple deals. They focus on proven technologies with strong gross margin profiles, avoiding science projects. The goal is to integrate high-value assets that align with their strategic and financial goals.

Q: What is the target cash burn for 2025, and when do you expect to reach cash flow breakeven? A: Alex Kim stated that they are not providing short-term guidance on cash burn but expect to continue improving from the second half exit rate. They aim for adjusted EBITDA breakeven by 2026 and feel confident in their strong balance sheet to support this goal.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.