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Sep 30, 2022
Standard Biotool Q3 2022 Earnings Report
Reported third quarter results with core product and services revenue increasing sequentially and restructuring program improving operating margin.
Key Takeaways
Standard BioTools announced its third quarter 2022 financial results, highlighting a sequential increase in core product and services revenue and improvements in operating margin due to restructuring efforts. The company is focused on commercial execution, operational efficiency, and expense reduction.
Core product and service revenue increased 30% sequentially to $24.8 million.
First phase of restructuring program improved operating margin by 600 to 800 basis points on an annualized basis.
Reiterated goal of 700 to 1000 basis point non-GAAP product and service gross margin improvement to 65-68% by year end 2023.
On track to achieve positive free cash flow by year-end 2024.
Standard Biotool
Standard Biotool
Forward Guidance
Standard BioTools is focused on achieving its financial and operational goals through commercial execution, operational efficiency, and expense reduction. The company is targeting improved margins and positive free cash flow.
Positive Outlook
- Achieving stated goal of 700 to 1000 basis point non-GAAP product and service gross margin improvement to 65-68% by year end 2023
- Focused on returning core business to growth
- Driving toward profitability
- Improving operating discipline leveraging our Standard BioTools™ Business Systems approach
- Well positioned to capitalize on current market conditions
Challenges Ahead
- GAAP net loss for the quarter ended September 30, 2022, was $29.4 million
- The year-over-year increase in GAAP net loss was primarily due to $6.2 million of lower non-operating income and $6.1 million of business improvement charges
- Non-GAAP net loss was $20.8 million for the quarter
- Total revenue was lower instrument and COVID-19 testing revenue
- Cash, cash equivalents, and short-term investments decreased from $211.2 million as of June 30, 2022 to $185.2 million