PacBio (PACB) Q4 FY2024 Results: Missed Revenue Expectations

Key Financial Highlights:

* Revenue: $39.22 million (vs analyst estimate: $39.96 million; 32.8% YoY decline, 1.8% miss)
* Adjusted EPS: -$0.20 (vs analyst estimate: -$0.17; 15.5% miss)
* Operating Margin: -387%, down from -150% in Q4 FY2023
* Market Cap: $400.3 million

Company Overview:

Pacific Biosciences of California (PACB) specializes in developing and commercializing advanced sequencing technologies for genetic analysis. Its HiFi sequencing platform enables high-throughput and accurate sequencing of DNA and RNA, driving advancements in precision medicine, drug discovery, and disease research.

Industry Landscape:

The genomics and sequencing industry is characterized by:

* High barriers to entry due to proprietary technology and IP
* Significant R&D costs and continued innovation reliance
* Sensitivity to shifts in academic, biotech, and clinical research funding
* Tailwinds from increasing adoption of precision medicine, expanded sequencing applications, and growing use of genomic data in drug development

Sales Performance:

* 5-year CAGR of 11.1%, exceeding industry average
* 2-year annualized revenue growth of 9.6%, decelerating from the 5-year trend
* Q4 FY2024: 32.8% YoY revenue decline to $39.22 million
* Analyst estimates project 20.5% revenue growth over the next 12 months

Profitability:

* Significant decline in operating margin over the past 5 years
* Q4 FY2024: Negative 387% operating margin

Earnings per Share (EPS):

* Earnings losses deepened by 5.8% annually over the past 5 years
* Q4 FY2024: EPS of -$0.20, exceeding the prior year's loss, but missing analyst estimates
* Analyst forecast: EPS loss to narrow to -$0.63 in FY2025

Analyst Outlook:

* Mixed outlook based on missed revenue and EPS estimates
* Analysts expect improved revenue growth and reduced earnings losses over the next 12 months
* Full research report available for in-depth analysis and actionable insights