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Standard BioTools Reports Fourth Quarter and Full Year 2023 Financial Results
Источник: Nasdaq GlobeNewswire / 28 фев 2024 15:01:00 America/Chicago
- Achieved FY2023 core financial objectives, delivering substantial ongoing reductions in expenses and cash burn while expanding revenue and gross margins
- Completed merger with SomaLogic, activating strategy to build scaled leader in life sciences tools and services
- Combined pro forma revenue for FY2023 totaled $192 million and fortified balance sheet with $565 million in combined pro forma cash, cash equivalents, restricted cash and short-term investments at December 31, 20231
SOUTH SAN FRANCISCO, Calif., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Standard BioTools Inc. (“Standard BioTools” or the “Company”) (Nasdaq: LAB) today announced financial results for the fourth quarter and fiscal year ended December 31, 2023.
Standard BioTools Stand-Alone 2023 Fourth Quarter and Full Year Selected Financial Results2
Quarter Ended Year Ended (Unaudited, in millions, except percentages) December 31, 2023 December 31, 2023 Revenue $ 28.2 $ 106.3 GAAP gross margin 47.4 % 47.4 % Non-GAAP gross margin 59.6 % 60.1 % Operating expenses $ 34.7 $ 127.1 Non-GAAP operating expenses $ 24.3 $ 98.6 Operating loss $ (21.4 ) $ (76.6 ) Net loss $ (19.8 ) $ (74.7 ) Non-GAAP adjusted EBITDA $ (7.5 ) $ (34.7 ) Cash, cash equivalents, restricted cash and short-term investments $ 115.7 Combined pro forma cash, cash equivalents, restricted cash and short-term investments3 $ 565.3 "In our first full year of operational execution, the Standard BioTools team hit our major target of standardizing the core business units and instilling SBS business systems throughout the organization. We also did so in one of the more challenging economic environments I’ve seen in life sciences over the last 20 years,” said Michael Egholm, PhD, President and Chief Executive Officer of Standard BioTools. "We have now assembled a team of seasoned operators, executing with a laser-focus on operational discipline, behind a clear strategy to bring together unique technologies under one roof. We believe this team is well positioned to achieve scale and profitability. The team has confirmed its capabilities through the ongoing reduction of expenses and cash consumption, while at the same time returning a declining business back to growth.”
Standard BioTools Financial Highlights Compared to 2022
- Total revenue increased 9% in fiscal year 2023 and 4% in the fourth quarter;
- Instrument sales grew 46% in fiscal year 2023 and 44% in the fourth quarter;
- Non-GAAP gross margin expanded 900 basis points to 60.1% in fiscal year 2023 and 630 basis points to 59.6% in the fourth quarter;
- Non-GAAP operating expenses declined $20 million, or 17%, in fiscal year 2023 and $1 million, or 5% in the fourth quarter;
- Non-GAAP adjusted EBITDA loss improved $34 million in fiscal year 2023 and over $3 million in the fourth quarter; and
- Operating cash use declined $47 million, or 53%, in fiscal 2023 and $6 million, or 32%, in the fourth quarter.
On a combined pro forma basis, after giving effect to the merger with SomaLogic, Inc. (“SomaLogic”), total revenue for the year ended December 31, 2023 was approximately $192 million, and cash, cash equivalents, restricted cash and short-term investments at December 31, 2023 were approximately $565 million.
Egholm added, “With the recent closing of the merger with SomaLogic, we have moved into the next phase of the growth strategy. I am delighted to report that the merger integration process is well underway. We are building significant momentum and are excited to capitalize on technological and commercial potential while accelerating the collective path to profitability. We are also continuing to identify new partners with emerging technologies and businesses where together we can scale their operations, diversify our collective revenue, and empower our customers to do amazing research. We believe the best is yet to come for Standard BioTools and SomaLogic – we are better together.”
A reconciliation of non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP adjusted EBITDA is provided in the financial schedules that are part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading “Use of Non-GAAP Financial Information.”
Outlook for 2024
For fiscal year 2024, the combined Company expects revenue in the range of $200 million to $205 million.
Conference Call Information
Standard BioTools will host a conference call and webcast today at 1:30 p.m. PT, 4:30 p.m. ET, to discuss fourth quarter and full year 2023 financial results and operational progress as well as to provide additional color on its strategic actions.
The Company today is providing an Investor Relations presentation with additional information on its business and operations, including an appendix with Supplemental Financial Information which is available, concurrent with this news release, on the Investor Relations page of the Company's website at Events & Presentations.
Live audio of the webcast will be available online along with an archived version of the webcast under the Events & Presentations page of the Company’s website.
To participate in the conference call by phone, may do so using one of the following dial-in numbers below:
- US domestic callers: 1-888-346-3970
- Outside US callers: 1-412-902-4297
Use of Non-GAAP Financial Information
Standard BioTools has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis. The non-GAAP financial measures included in this press release are non-GAAP gross margin, non-GAAP operating expenses, and adjusted EBITDA. Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as a measure of operating performance because the non-GAAP financial measures do not include the impact of items that management does not consider indicative of the Company’s core operating performance. Management believes that non-GAAP financial measures, taken in conjunction with GAAP financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the Company’s core operating results. Management uses non-GAAP measures to compare the Company’s performance relative to forecasts and strategic plans and to benchmark the company’s performance externally against competitors. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the company’s operating results as reported under U.S. GAAP. Standard BioTools encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliations between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP operating results are presented in the accompanying tables of this release.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding future financial and business performance; expectations, operational and strategic plans; deployment of capital; market and growth opportunity and potential; the potential to realize the expected benefits following the merger of the Company and SomaLogic; and the Company’s revenue outlook for the full year 2024. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from currently anticipated results, including, but not limited to, the outcome of any legal proceedings related to the merger; risks that the anticipated benefits of the merger or other commercial opportunities may otherwise not be fully realized or may take longer to realize than expected; risks that the Company may not realize expected cost savings from our restructuring, including the anticipated decrease in operational expenses, at the levels it expects; possible restructuring and transition-related disruption, including through the loss of customers, suppliers, and employees and adverse impacts on the Company’s development activities and results of operation; restructuring activities, including the Company’s subleasing plans, customer and employee relations, management distraction, and reduced operating performance; risks that internal and external costs required for ongoing and planned activities may be higher than expected, which may cause the Company to use cash more quickly than it expects or change or curtail some of the Company’s plans, or both; risks that the Company’s expectations as to expenses, cash usage, and cash needs may prove not to be correct for other reasons such as changes in plans or actual events being different than our assumptions; changes in the Company’s business or external market conditions; challenges inherent in developing, manufacturing, launching, marketing, and selling new products; interruptions or delays in the supply of components or materials for, or manufacturing of, the Company’s products; reliance on sales of capital equipment for a significant proportion of revenues in each quarter; seasonal variations in customer operations; unanticipated increases in costs or expenses; continued or sustained budgetary, inflationary, or recessionary pressures; uncertainties in contractual relationships; reductions in research and development spending or changes in budget priorities by customers; uncertainties relating to the Company’s research and development activities, and distribution plans and capabilities; potential product performance and quality issues; risks associated with international operations; intellectual property risks; and competition. For information regarding other related risks, see the “Risk Factors” section of the Company’s annual report on Form 10-K filed with the SEC today, and in the Company’s other filings with the SEC. These forward-looking statements speak only as of the date hereof. The Company disclaims any obligation to update these forward-looking statements except as may be required by law.
About Standard BioTools Inc.
Standard BioTools Inc. (Nasdaq: LAB), previously known as Fluidigm Corporation, is driven by a bold purpose – Unleashing tools to accelerate breakthroughs in human health. Standard BioTools has an established portfolio of essential, standardized next-generation technologies that help biomedical researchers develop medicines faster and better. As a leading solutions provider, the company provides reliable and repeatable insights in health and disease using its proprietary mass cytometry and microfluidics technologies, which help transform scientific discoveries into better patient outcomes. Standard BioTools works with leading academic, government, pharmaceutical, biotechnology, plant and animal research, and clinical laboratories worldwide, focusing on the most pressing needs in translational and clinical research, including oncology, immunology, and immunotherapy. Learn more at www.standardbio.com or connect with us on Twitter®, Facebook®, LinkedIn, and YouTube™. Standard BioTools, the Standard BioTools logo, Fluidigm, the Fluidigm logo, “Unleashing tools to accelerate breakthroughs in human health,” Hyperion, Hyperion XTi, XTi, and X9 are trademarks and/or registered trademarks of Standard BioTools Inc. or its affiliates in the United States and/or other countries. All other trademarks are the sole property of their respective owners. Standard BioTools products are provided for Research Use Only. Not for use in diagnostic procedures.
Available Information
Standard BioTools uses its website (standardbio.com), investor site (investors.standardbio.com), corporate Twitter account (@Standard_BioT), Facebook page (facebook.com/StandardBioT), and LinkedIn page (linkedin.com/company/standard-biotools) as channels of distribution of information about its products, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and Standard BioTools may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor Standard BioTools’ website and its social media accounts in addition to following its press releases, SEC filings, public conference calls, and webcasts.
Investor Contacts
David Holmes
Gilmartin Group LLC
(332) 330-1031
ir@standardbio.com__________________
1 Reflects (i) pro forma combined revenue of the Company and SomaLogic, including SomaLogic’s unaudited 2023 revenue of $86.1 million and (ii) pro forma combined cash, cash equivalents, restricted cash and short-term investments as of December 31, 2023, including SomaLogic’s unaudited cash, cash equivalents and short-term investments of $449.8 million as of December 31, 2023, in each case after giving effect to the merger with SomaLogic, which closed on January 5, 2024.
2 Unless otherwise noted financial results include only the Standard BioTools legacy business in 2023, and exclude the results of SomaLogic, which became part of Standard BioTools on January 5, 2024 and will be included in the Company’s consolidated financial statements beginning with the quarter ended March 31, 2024.
3 Reflects pro forma combined cash, cash equivalents, restricted cash and short-term investments as of December 31, 2023, including SomaLogic’s unaudited cash, cash equivalents and short-term investments of $449.8 million as of December 31, 2023, after giving effect to the merger with SomaLogic, which closed on January 5, 2024.STANDARD BIOTOOLS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 (Unaudited) Revenue: Product revenue $ 21,384 $ 20,919 $ 79,198 $ 72,454 Service and other revenue 6,804 6,102 27,142 25,494 Total revenue 28,188 27,021 106,340 97,948 Cost of revenue: Cost of product revenue 11,666 13,387 44,942 52,555 Cost of service and other revenue 3,165 2,467 10,948 8,342 Total cost of revenue 14,831 15,854 55,890 60,897 Gross profit 13,357 11,167 50,450 37,051 Operating expenses: Research and development 6,909 7,425 25,948 37,382 Selling, general and administrative 21,354 20,224 87,541 102,285 Restructuring and related charges 1,661 4,630 7,076 9,732 Transaction-related expenses 4,819 — 6,485 3,857 Total operating expenses 34,743 32,279 127,050 153,256 Loss from operations (21,386 ) (21,112 ) (76,600 ) (116,205 ) Interest expense (1,098 ) (1,190 ) (4,567 ) (4,331 ) Loss on forward sale of Series B Preferred Stock — — — (60,081 ) Loss on Bridge Loans — — — (13,719 ) Other income (expense), net 2,546 1,527 6,963 1,408 Loss before income taxes (19,938 ) (20,775 ) (74,204 ) (192,928 ) Income tax benefit (expense) 162 (70 ) (452 ) 2,830 Net loss $ (19,776 ) $ (20,845 ) $ (74,656 ) $ (190,098 ) Net loss per share, basic and diluted $ (0.25 ) $ (0.26 ) $ (0.94 ) $ (2.43 ) Shares used in computing net loss per share, basic and diluted 79,729 79,434 79,160 78,305 STANDARD BIOTOOLS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)December 31,
2023December 31,
2022ASSETS Current assets: Cash and cash equivalents $ 51,704 $ 81,309 Short-term investments 63,191 84,475 Accounts receivable, net 19,660 17,280 Inventories, net 20,533 21,473 Prepaid expenses and other current assets 3,127 4,278 Total current assets 158,215 208,815 Property and equipment, net 24,187 25,652 Operating lease right-of-use asset, net 30,663 33,883 Other non-current assets 2,285 3,109 Developed technology, net 1,400 12,600 Goodwill 106,317 106,251 Total assets $ 323,067 $ 390,310 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable $ 9,236 $ 7,914 Accrued compensation and related benefits 11,867 9,153 Operating lease liabilities, current 4,323 3,682 Deferred revenue, current 11,607 10,792 Deferred grant income, current 3,612 3,644 Other accrued liabilities 9,152 6,175 Term loan, current 5,000 2,083 Convertible notes, current 54,530 — Total current liabilities 109,327 43,443 Convertible notes, non-current 569 54,615 Term loan, non-current 3,414 8,194 Deferred tax liability 841 1,055 Operating lease liabilities, non-current 30,374 34,081 Deferred revenue, non-current 3,520 3,816 Deferred grant income, non-current 10,755 14,359 Other non-current liabilities 1,065 961 Total liabilities 159,865 160,524 Mezzanine equity: Redeemable preferred stock 311,253 311,253 Total stockholders’ deficit (148,051 ) (81,467 ) Total liabilities, mezzanine equity and stockholders’ deficit $ 323,067 $ 390,310 STANDARD BIOTOOLS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)Twelve Months Ended December 31, 2023 2022 Operating activities Net loss $ (74,656 ) $ (190,098 ) Loss on forward sale of Series B Preferred Stock — 60,081 Loss on bridge loans — 13,719 Stock-based compensation expense 13,123 14,880 Amortization of developed technology 11,200 11,528 Depreciation and amortization 3,980 3,499 Provision for excess and obsolete inventory 1,496 7,874 Impairment of InstruNor developed technology intangible — 3,526 Amortization of debt discounts, premiums and issuance costs 770 830 Other non-cash items (987 ) 273 Changes in assets and liabilities, net 1,787 (15,482 ) Net cash used in operating activities (43,287 ) (89,370 ) Investing activities Purchases of short-term investments (94,896 ) (137,302 ) Proceeds from sales and maturities of investments 117,964 53,000 Purchases of property and equipment (2,831 ) (3,825 ) Net cash provided by (used in) investing activities 20,237 (88,127 ) Financing activities Proceeds from bridge loans — 25,000 Proceeds from issuance of Series B Preferred Stock — 225,000 Repayment of term loan and advances under revolving credit facility (2,083 ) (6,838 ) Payment of debt and equity issuance costs — (12,547 ) Repurchase of common stock (5,414 ) (563 ) Proceeds from ESPP stock issuance 827 917 Payments for taxes related to net share settlement of equity awards and other (139 ) (211 ) Net cash provided by (used in) financing activities (6,809 ) 230,758 Effect of foreign exchange rate fluctuations on cash and cash equivalents 34 (404 ) Net increase (decrease) in cash, cash equivalents and restricted cash (29,825 ) 52,857 Cash, cash equivalents and restricted cash at beginning of period 82,324 29,467 Cash, cash equivalents and restricted cash at end of period $ 52,499 $ 82,324 Cash, cash equivalents, and restricted cash consists of: Cash and cash equivalents $ 51,704 $ 81,309 Restricted cash 795 1,015 Total cash, cash equivalents and restricted cash $ 52,499 $ 82,324 STANDARD BIOTOOLS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)
ITEMIZED RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND MARGIN PERCENTAGEThree Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 GAAP gross profit $ 13,357 $ 11,167 $ 50,450 $ 37,051 Amortization of developed technology 2,800 2,800 11,200 11,208 Depreciation and amortization 482 297 1,473 1,245 Stock-based compensation expense 163 133 811 592 Non-GAAP gross profit $ 16,802 $ 14,397 $ 63,934 $ 50,096 GAAP gross margin percentage 47.4 % 41.3 % 47.4 % 37.8 % Amortization of developed technology 9.9 % 10.4 % 10.5 % 11.4 % Depreciation and amortization 1.7 % 1.1 % 1.4 % 1.3 % Stock-based compensation expense 0.6 % 0.5 % 0.8 % 0.6 % Non-GAAP gross margin percentage 59.6 % 53.3 % 60.1 % 51.1 % STANDARD BIOTOOLS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)
ITEMIZED RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSESThree Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 GAAP operating expenses $ 34,743 $ 32,279 $ 127,050 $ 153,256 Restructuring and related charges (1,661 ) (4,630 ) (7,076 ) (9,732 ) Transaction-related expenses (4,819 ) — (6,485 ) (3,857 ) Stock-based compensation expense (3,312 ) (1,548 ) (12,312 ) (14,288 ) Depreciation and amortization (624 ) (523 ) (2,507 ) (2,575 ) Impairment of intangible assets — — — (3,526 ) Loss on disposal of property and equipment — (100 ) (73 ) (312 ) Non-GAAP operating expenses $ 24,327 $ 25,478 $ 98,597 $ 118,966 GAAP R&D operating expenses $ 6,909 $ 7,425 $ 25,948 $ 37,382 Stock-based compensation expense (430 ) (467 ) (1,671 ) (2,481 ) Depreciation and amortization (125 ) (150 ) (526 ) (954 ) Impairment of intangible assets — — — (3,526 ) Non-GAAP R&D operating expenses $ 6,354 $ 6,808 $ 23,751 $ 30,421 GAAP SG&A operating expenses $ 21,354 $ 20,224 $ 87,541 $ 102,285 Stock-based compensation expense (2,882 ) (1,081 ) (10,641 ) (11,807 ) Depreciation and amortization (499 ) (373 ) (1,981 ) (1,621 ) Loss on disposal of property and equipment — (100 ) (73 ) (312 ) Non-GAAP SG&A operating expenses $ 17,973 $ 18,670 $ 74,846 $ 88,545 STANDARD BIOTOOLS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)
ITEMIZED RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDAThree Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 GAAP net loss $ (19,776 ) $ (20,845 ) $ (74,656 ) $ (190,098 ) Income tax expense (benefit) (162 ) 70 452 (2,830 ) Interest expense 1,098 1,190 4,567 4,331 Amortization of developed technology 2,800 2,800 11,200 11,528 Depreciation and amortization 1,106 819 3,980 3,499 Restructuring and related charges 1,661 4,630 7,076 9,732 Transaction-related expenses 4,819 — 6,485 3,857 Stock-based compensation expense 3,475 1,681 13,123 14,880 Impairment of intangible assets — — — 3,526 Loss on forward sale of Series B Preferred Stock — — — 60,081 Loss on bridge loans — — — 13,719 Other non-operating expense (income) (2,546 ) (1,527 ) (6,963 ) (1,408 ) Loss on disposal of property and equipment — 100 73 312 Non-GAAP adjusted EBITDA $ (7,525 ) $ (11,082 ) $ (34,663 ) $ (68,871 ) CALCULATION OF OPERATING CASH USE Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 Net cash used in operating activities (1) $ (14,061 ) $ (19,181 ) $ (43,287 ) $ (89,370 ) Purchases of property and equipment (78 ) (755 ) (2,831 ) (3,825 ) Cash paid for interest 1,648 1,646 3,819 3,493 Operating cash use $ (12,491 ) $ (18,290 ) $ (42,299 ) $ (89,702 ) (1) Derived from the Condensed Consolidated Statements of Cash Flows. 
- Achieved FY2023 core financial objectives, delivering substantial ongoing reductions in expenses and cash burn while expanding revenue and gross margins