Bionano Genomics ((BNGO)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Bionano Genomics presented a mixed bag of sentiments, highlighting both positive strides and ongoing challenges. While the company celebrated significant improvements in gross margins and cost reductions, it also faced hurdles with decreased total revenue and a reduction in instrument sales. The outlook for 2025 suggests flattish growth, balancing the achievements with existing concerns.
Improved Gross Margin
Bionano Genomics reported a remarkable improvement in its gross margins for Q4 2024. The GAAP gross margin rose to 42%, a significant increase from the 23% reported in Q4 2023. Similarly, the non-GAAP gross margin also climbed to 42% from 24% in the previous year, showcasing the company’s efforts in enhancing profitability.
Cost Reduction Success
The company successfully implemented cost-saving initiatives, leading to a substantial reduction in operating expenses. For Q4 2024, GAAP operating expenses were reduced to $15.4 million from $27.4 million in Q4 2023. Non-GAAP operating expenses also saw a decrease to $10.6 million from $26.6 million, attributed to cost savings and a reduced headcount.
Increased Consumables and Software Sales
Bionano saw growth in its consumables and software sales for the full year 2024. Consumables sales increased by 14% to $12.8 million, while software sales grew by 11% to $6.2 million, reflecting the company’s strategic focus on these areas.
Growth in Key Regions
Sales in the Americas and the EMEA region showed positive growth, with increases of 9% and 10% respectively in 2024 compared to 2023. This regional growth underscores Bionano’s expanding footprint and market penetration.
Routine User Focus Strategy
Bionano shifted its focus towards supporting 118 routine use customers, who account for over 80% of consumables purchases. This strategic shift has led to increased efficiency and profitability, aligning with the company’s long-term goals.
CPT Code for Optical Genome Mapping
The American Medical Association’s establishment of a Category 1 CPT code for Optical Genome Mapping (OGM) in hematologic malignancies, effective January 1, 2025, marks a significant milestone for Bionano, potentially enhancing its market position.
Successful Fundraising
In January 2025, Bionano completed a $10 million registered direct offering and raised net proceeds of $3.2 million through ATM sales in Q1 2025, strengthening its financial position.
Decrease in Total Revenue
Total revenue for Q4 2024 was reported at $8.2 million, marking a 24% decline compared to Q4 2023. This decrease was largely due to the discontinuation of clinical services, posing a challenge for the company.
Reduction in Instrument Sales
Bionano experienced a reduction in instrument sales of nearly $2 million for the full year 2024, indicating a potential area for concern and improvement.
Overall Decrease in GAAP Gross Margin for Full Year
Despite quarterly improvements, the full year 2024 GAAP gross margin was only 1%, down from 26% in 2023, after a series of one-time non-cash adjustments.
Flattish Revenue Growth Outlook for 2025
Bionano projects its 2025 revenue to be between $29 million and $32 million, indicating flattish growth compared to 2024. The company plans to focus on existing routine use sites and strategic growth in the optical genome mapping sector.
Forward-Looking Guidance
Looking ahead, Bionano expects full-year revenues for 2025 to range between $29 million and $32 million, with first-quarter revenues projected between $6.2 million and $6.3 million. The company aims to focus on existing routine use sites and strategic growth in the optical genome mapping sector, despite the challenges of flattish growth.
In conclusion, Bionano Genomics’ earnings call highlighted a balanced mix of achievements and challenges. While the company made significant strides in improving gross margins and reducing costs, it faces hurdles with decreased revenue and instrument sales. The forward-looking guidance suggests a cautious yet strategic approach towards achieving growth in 2025.