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Bionano Genomics, Inc. (BNGO)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $8.16M, up 34% q/q but down 24% y/y; GAAP gross margin expanded to 42% vs 23% y/y, reflecting cost reductions and mix shift away from discontinued services .
  • Revenue beat Wall Street consensus ($6.20M) by ~32%, driven by core OGM and VIA software momentum across priority customers and geographies; EPS actual was not disclosed in the press release .
  • Management reiterated a streamlined focus on routine-use customers (118 customers accounting for >80% of consumables revenue) and highlighted VIA-driven utilization as a key lever; 2025 revenue guidance set at $29–$32M and Q1 2025 at $6.2–$6.3M .
  • Liquidity actions (debenture amendment deferring payments, lowering conversion price; equity raises) extended cash runway into Q1 2026; catalysts include CPT Category I code effective 1/1/2025 for hematologic malignancies use of OGM .

What Went Well and What Went Wrong

What Went Well

  • Strong beat versus consensus: Q4 revenue $8.16M vs consensus $6.20M; non-GAAP and GAAP gross margin at 42% in Q4, up sharply y/y (24% and 23% respectively in Q4 2023) .
  • Strategic refocus delivering operating leverage: GAAP OpEx fell to $15.4M from $27.4M y/y; non-GAAP OpEx down to $10.6M from $26.6M y/y, reflecting headcount reduction and lower contingent consideration .
  • Management quote underscoring cost discipline: “Altogether we have reduced the annualized cost of operating the business by approximately $100 million” and “we believe we have cash runway into 2026” .

What Went Wrong

  • Revenue still down y/y (-24%), reflecting the cessation of clinical services ($2.0M in Q4’23 to $0 in Q4’24) and prior instrument softness; FY24 revenue ($30.8M) below prior FY24 guidance ($36–$40M) .
  • Ongoing dilution/financing risks: Amendment lowered debenture conversion price to $0.27 and included issuance of 5.0M shares; additional registered direct offering closed in Oct 2024 .
  • Margin volatility persists: Q3 2024 GAAP gross margin was -139% due to impairment/disposal charges; management is not guiding margin given expected variability .

Financial Results

Headline Financials and Margins (USD)

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD)$10.721M $6.073M $8.163M
GAAP Gross Margin %23% -139% 42%
Non-GAAP Gross Margin %24% 26% 42%
GAAP Operating Expense ($USD)$27.391M $35.455M $15.358M
Net Loss ($USD)$(43.891)M $(44.246)M $(20.125)M

Segment/Type Breakdown (USD)

MetricQ4 2023Q3 2024Q4 2024
Product Revenue$8.215M $6.021M $7.649M
Service & Other Revenue$2.506M $0.052M $0.514M

KPIs

KPIQ2 2024Q3 2024Q4 2024
Installed Base (OGM Systems)363 368 371 (year-end)
Flowcells Sold (Quarter)6,165 7,835 8,058
VIA Software Installed at OGM Customersn/an/a>160 vs 40 at end 2023
OGM Publications (Quarter)n/a83 82

Performance vs Estimates (Q4 2024)

MetricConsensusActualSurprise
Revenue ($USD)$6.20M*$8.16M +$1.96M (~+31.7%)*
Primary EPS-$6.00*n/an/a

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD)FY 2024$36–$40M (Aug 2024) Actual: $30.8M Lower than prior guidance
Revenue ($USD)Q3 2024$7.9–$8.9M (Aug 2024) Actual: $6.07M Missed guidance
Revenue ($USD)Q1 2025n/a$6.2–$6.3M New
Revenue ($USD)FY 2025n/a$29–$32M New
OGM Systems InstallationsFY 2025n/a15–20 New
Gross MarginFY 2025n/aNo guidance (volatility expected) Maintained “no guidance”
Cash RunwayCorporaten/aInto Q1 2026 New disclosure

Earnings Call Themes & Trends

TopicQ2 2024 (Prev. -2Q)Q3 2024 (Prev. -1Q)Q4 2024 (Current)Trend
AI/Tech initiatives (Stratys Compute, VIA)Announced Stratys Compute updates anticipated Q4; VIA enhancements; Ionic workflow improvements OGM publications and installed base progress; continued non-GAAP focus Stratys Compute launched; VIA at >160 OGM customers; compute speed and automation roadmap Improving adoption/utility
Supply chain/macro & cost actionsSignificant OpEx reductions planned; restructuring underway Continued restructuring and impairment charges; cash burn lower Annualized cost reduced by ~$100M; OpEx down materially; margin expansion Improving operating profile
Product performance (OGM, flowcells)Flowcells down y/y (Q2); installed base +29% y/y Flowcells +27% y/y; installed base +22% y/y Flowcells 8,058 (+1% y/y); core product revenue resilient; consumables +14% for FY Stabilizing-to-improving utilization
Regional trendsNot detailedNot detailedAmericas +9% and EMEA +10% in FY24 Improving
Regulatory/reimbursementAMA Category I CPT code established (heme malignancies) CPT code timing on track for CLFS CPT effective 1/1/2025; initial rate ~$1,300; potential reconsideration Positive catalyst
R&D execution/publicationsPrenatal study and AML data underlined utility Multi-site MM study; ongoing publications 336 publications in 2024 (+19% y/y); strong clinical research sample growth Sustained momentum

Management Commentary

  • “Altogether we have reduced the annualized cost of operating the business by approximately $100 million.”
  • “We entered 2025 with strong demand for our products and the newly established category I CPT code for OGM… and we believe we have cash runway into 2026.”
  • Strategic pillars: concentrate on routine-use customers (118 customers >80% of consumables revenue), drive VIA adoption to increase sample throughput and menu expansion, build reimbursement/guidelines support, and improve profitability .
  • “Over the past 8 quarters, we have seen non-GAAP gross margin increase from 22% in Q1 2023 to 42% in Q4 2024… we won’t be providing guidance on margin at this time.”

Q&A Highlights

  • Installed base disclosure shift toward routine-use cohort metrics; revenue per customer ~$85–$90K across the 118 routine users (consumables ~80% of ~$10M) .
  • VIA drives utilization via automated curation and reporting, enabling higher sample throughput and menu expansion across indications (e.g., AML, CML) .
  • CPT specifics: heme malignancies category; initial CLFS rate around ~$1,300, consistent with some PLA codes; reconsideration possible over time .
  • Geographic expansion targeted in Europe and the U.S.; willingness to add sites with acceptable acquisition cost and high likelihood of routine use .
  • Guidance clarifications: FY25 outlook reflects “all core” revenue; Q1 guide $6.2–$6.3M; installations 15–20 systems focused on routine-use placements .

Estimates Context

  • Q4 2024 revenue beat consensus by ~32% ($8.16M vs $6.20M); EPS actual not disclosed, Street EPS consensus was -$6.00 .
  • Given beat and focus on recurring consumables/software, near-term models may need to reflect stronger core utilization and VIA-driven productivity, offset by ongoing financing considerations and margin volatility disclosures .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Material revenue beat and margin expansion in Q4 point to traction in core OGM/VIA customers despite a difficult y/y comp from discontinued services .
  • Operating discipline is tangible: GAAP and non-GAAP OpEx dropped sharply; management cites ~$100M annualized cost reductions, improving path to sustainability .
  • Strategic focus on routine-use cohort and VIA automation should support recurring consumables growth and per-site revenue uplift over 2025 .
  • Liquidity extended via debt amendment and equity raises, but dilution risk elevated (conversion price cut to $0.27; share issuance)—a monitoring point for PMs .
  • Regulatory tailwind: CPT Category I code effective 1/1/2025 for heme malignancies is a key adoption catalyst; watch for reimbursement rate reconsiderations and broader indications over time .
  • FY25 revenue guide ($29–$32M) and Q1 guide ($6.2–$6.3M) frame expectations; margin remains unguided due to expected volatility—model conservatively .
  • Stock reaction catalysts: CPT uptake and routine-use expansion; VIA adoption/menus; further cost savings; any visibility on margin normalization, and capital structure developments .