Pacific Biosciences of California Inc. (NASDAQ:PACB) on Wednesday announced preliminary revenue of $36.9 million versus a consensus of $33.49 million.
The company said the first quarter met expectations, despite impacts from ongoing uncertainty in NIH funding in the United States and broader economic headwinds affecting the industry.
Vega system orders accelerated in the first quarter compared to the fourth quarter of 2024. The combination of system capability and its attractive price point enabled purchases from new and existing customers.
The sequencing solutions company said preliminary consumable revenue reached a company record. Annualized Revio pull-through per system was approximately $236,000. That’s in line with the company’s expectations in the low to mid $200,000s range.
Also Read: Enphase Rolls Out Scalable, Grid-Ready IQ Battery 5P in Poland With 15-Year Warranty
“…The Vega launch is progressing well, attracting more customers to HiFi sequencing and is expanding our addressable applications. While the funding and general macroeconomic environment is having an impact on our ability to place more instruments, particularly Revio systems at academic customers, we are encouraged by the consistent Revio utilization and annualized consumable pull-through, which remain in line with our expectations,” said Christian Henry, President and CEO of PacBio.
“We believe we are on pace to achieve the financial goals we set earlier this year. However, given the persistent uncertainty surrounding academic and NIH funding, along with the introduction of new tariffs, we are taking strategic steps to reduce spending and reinforce our plan to reach positive cash flow by the end of 2027.”
The company says it will focus on three key priorities:
PacBio is also restructuring commercial organization to streamline management and improve sales force efficiency.
Guidance: The company reiterates its previous 2025 revenue forecast of $155 million to $170 million versus the consensus of $161.51 million.
In response to ongoing market uncertainty, PacBio is executing a plan to reduce headcount across all functions and non-headcount-related expenses to lower its annualized non-GAAP operating expense run-rate by $45 million to $50 million by year-end, compared to its prior guidance of $270 million to $280 million. Its ending cash and investments balance will also be higher than the previous guidance of approximately $260 million.
Price Action: PACB stock is up 8.75% at $1.31 at the last check Wednesday.
Read Next:
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.