Pacific Biosciences (PACB, Financial) has wrapped up an independent investigation conducted by a Special Committee of its Board of Directors into allegations concerning employment and cybersecurity practices. These allegations were previously brought forward by an attorney on behalf of an employee affected by recent workforce reductions. Notably, the investigation found no issues related to the company’s current or past financial statements. It also concluded that there were no improper employment practices or significant inaccuracies in the cybersecurity information disclosed in the company’s 2024 Form 10-K. John Milligan, Chairman of the Board, expressed satisfaction with the conclusion of this probe and emphasized the company’s ongoing commitment to advancing genomic innovations for improving human health.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Pacific Biosciences of California Inc (PACB, Financial) is $2.00 with a high estimate of $3.00 and a low estimate of $1.00. The average target implies an
upside of 77.39%
from the current price of $1.13. More detailed estimate data can be found on the Pacific Biosciences of California Inc (PACB) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Pacific Biosciences of California Inc’s (PACB, Financial) average brokerage recommendation is currently 2.4, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Pacific Biosciences of California Inc (PACB, Financial) in one year is $5.13, suggesting a
upside
of 353.98% from the current price of $1.13. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the Pacific Biosciences of California Inc (PACB) Summary page.
PACB Key Business Developments
Release Date: February 13, 2025
- Q4 2024 Revenue: $39.2 million, driven by the shipment of 23 Revvio systems.
- Full Year 2024 Revenue: $154 million, reflecting 97 Rev shipments.
- Consumable Revenue 2024: $70.4 million, an 11% year-over-year increase.
- Q4 2024 Instrument Revenue: $15.3 million, a 56% decrease from Q4 2023.
- Q4 2024 Consumables Revenue: $18.8 million, roughly flat compared to Q4 2023.
- Q4 2024 Service and Other Revenue: $5.1 million, up from $4.4 million in Q4 2023.
- Non-GAAP Gross Margin Q4 2024: 31%, up from 19% in Q4 2023.
- Non-GAAP Operating Expenses Q4 2024: $68.6 million, down from $88.4 million in Q4 2023.
- Non-GAAP Net Loss Q4 2024: $55.3 million, or $0.20 per share.
- Cash and Investments End of Q4 2024: $389.9 million.
- 2025 Revenue Guidance: $155 million to $170 million, representing approximately 6% growth at the midpoint.
- 2025 Non-GAAP Gross Margin Guidance: 35% to 40%.
- 2025 Non-GAAP Operating Expenses Guidance: $270 million to $280 million.
- 2025 Cash Burn Guidance: $130 million, an improvement of $57 million compared to 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Pacific Biosciences of California Inc (PACB, Financial) reported $39.2 million in revenue for Q4 2024, driven by the shipment of 23 Revvio systems and the successful early shipment of 7 Vega benchtop platforms.
- The company saw a significant expansion in its customer base, with nearly 200 customers using the Revo platform by the end of 2024.
- Consumable revenue grew 11% year-over-year in 2024 to $70.4 million, representing a 23% compound annual growth rate since 2020.
- The company anticipates sustained double-digit revenue growth in the medium term as long-read sequencing expands into new genomic applications.
- PACB successfully reduced annualized non-GAAP operating expenses by more than $75 million in 2024, aligning spending with strategic priorities.
Negative Points
- Instrument revenue in Q4 2024 was $15.3 million, a 56% decrease from the same quarter in 2023, primarily due to lower Revvio system shipments.
- The company faces an uncertain funding environment, particularly in the United States, due to macroeconomic pressures and recent NIH funding announcements.
- PACB recorded non-cash impairment charges totaling $90 million in Q4 2024, driven by macroeconomic headwinds and a revised outlook on future cash flows.
- The company expects 2025 revenue growth to be modest, with a forecasted range of $155 million to $170 million, reflecting only a 6% year-over-year growth at the midpoint.
- PACB has pushed out its timeline to become cash flow positive to exiting 2027, citing continued macroeconomic uncertainty and recent NIH announcements.
