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Jun 30, 2022
Standard Biotool Q2 2022 Earnings Report
Reported a decrease in revenue due to lower instrument and COVID-19 testing revenue, and initiated a restructuring program to improve growth and margins.
Key Takeaways
Standard BioTools reported a decrease in revenue to $18.8 million compared to $31.0 million in the second quarter of 2021. The company has initiated a restructuring plan to return to growth, improve gross margins, and reduce operating cash burn. They also completed a $250 million strategic cash infusion.
Second quarter revenue was $18.8 million.
Completed a $250 million strategic cash infusion.
Initiated a restructuring program to restore core business growth.
Cash runway expected to reach positive free cash flow by the end of 2024.
Forward Guidance
Standard BioTools expects its cash runway to be sufficient to fund current operations to cash flow breakeven by the end of 2024 while allowing for strategic M&A.
Positive Outlook
- Restructuring plan is underway to significantly lower operating cash burn beginning in the second half of 2022.
- Gross margin improvements expected to yield approximately 7-10% increase by year end 2023
- Committed to driving core business toward profitability.
- Capital available for portfolio expansion through strategic M&A.
- Deep funnel of opportunities to fuel longer-term growth.
Challenges Ahead
- Lower instrument and COVID-19 testing revenue.
- Product line exits negatively affected product and service gross profit and net loss by $4.7 million and $8.2 million, respectively.
- Year-over-year increase in GAAP net loss driven by increases in fair value of the forward sale contract related to the Series B Preferred Stock and bridge loans aggregating $25.4 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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