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STANDARD BIOTOOLS INC. (LAB)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 pro forma revenue was $46.7M (-9% YoY); GAAP gross margin 46.9%, non-GAAP gross margin 52.5%; adjusted EBITDA loss improved to $(18.4)M (34% YoY improvement) .
  • Mix with clear divergence: Consumables grew to $14.7M (+10% YoY), Instruments fell to $8.5M (-25% YoY), Services declined to $21.6M (-16% YoY) as capital spending stayed constrained and large projects in Lab Services were lumpy .
  • FY 2025 revenue guidance introduced at $165–$175M, assuming high single-digit millions decline in Americas academic revenue (NIH pressure), no expected impact from export controls, and limited tariff impact; management reaffirmed path to adjusted EBITDA breakeven in 2026 and ended 2024 with ~$295M in cash and no material debt .
  • Near-term stock catalysts: co-branded NGS SomaScan solution with Illumina launching in H1 2025 (framed by management as a ≥$1B opportunity) with 2025 as a transition year; broader consolidation/M&A pipeline (4–6 targeted deals over 2025–2026) .

What Went Well and What Went Wrong

What Went Well

  • Non-GAAP OpEx cut 24% YoY in Q4 to $42.9M; adjusted EBITDA improved 34% YoY; cost synergies operationalized to $90M over 12 months, exceeding the original target by $10M .
  • Consumables strength: Q4 consumables revenue $14.7M (+10% YoY) driven by SomaScan authorized sites and Illumina early access; management emphasized consumables as the most attractive recurring revenue lever .
  • Operational KPIs improved: “on-time delivery reached an industry-leading 98%, up from 78% in Q4 of 2022,” and customer complaints on main instrument platform declined >4x, reflecting SBS execution focus .

What Went Wrong

  • Instruments revenue fell 25% YoY in Q4 (mass cytometry the biggest drag) amid global capital constraints and extended sales cycles; field services also fell on lower installations .
  • Services revenue declined (-16% YoY in Q4), with Lab Services down 18% on timing of large projects and continued high concentration among top accounts (management cited a $15–$20M YoY headwind from top 5 customers in 2024) .
  • Gross margin headwinds persisted from lower volumes and instrument replacement costs, partially offset by SBS efficiency gains; non-GAAP GM fell to 52.5% in Q4 from 55.4% in Q4 2023 .

Financial Results

Note: “As Reported” figures below; “Pro Forma Combined” used in segment table for comparability across periods.

Summary metrics (As Reported)

MetricQ4 2023Q2 2024Q3 2024Q4 2024Vs Estimates
Revenue ($USD Millions)$51.4 $37.2 $45.0 $46.7 N/A (S&P Global consensus unavailable)
Gross Margin (%)46.7% 40.1% 51.7% 46.9% N/A
Non-GAAP Gross Margin (%)55.4% 45.0% 56.9% 52.5% N/A
Non-GAAP Operating Expenses ($M)$56.5 $47.8 $39.8 $42.9 N/A
Adjusted EBITDA ($M)$(28.0) $(31.0) $(14.2) $(18.4) N/A
Net Loss per Share ($)$(0.25) $(0.12) $(0.07) $(0.09) N/A

Segment revenue (Pro Forma Combined, $USD Millions)

SegmentQ4 2023Q2 2024Q3 2024Q4 2024
Instruments$11.46 $11.59 $9.71 $8.55
Consumables$13.31 $10.08 $12.42 $14.68
Lab/Assay Services$19.21 $16.60 $17.98 $15.70
Field/Instrument Support Services$6.57 $5.82 $6.45 $5.91
Total Revenue$51.42 $48.13 $47.42 $46.72

Footnote: Q2 2024 service categories are labeled “Assay services” and “Instrument support services,” mapped above to Lab/Field services for consistency .

KPIs

KPIQ2 2024Q3 2024Q4 2024
Cash, Cash Equivalents, Restricted Cash & Short-term Investments ($M)$396.0 $367.6 $295.0
Adjusted Cash Burn + CapEx ($M)$23.5 (reference point) $23.5 $13.0
On-time Delivery (%)——98% (vs 78% in Q4’22)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)FY 2024$170–$175 (revised at Q2) $170–$175 (reiterated at Q3) Maintained
Revenue ($M)FY 2025—$165–$175 (assumes high single-digit $mm decline in Americas academic; no export control impact; limited tariffs impact) Introduced
Adjusted EBITDAFY 2026Breakeven target reaffirmed Breakeven target reaffirmed Maintained
Tariffs/Export Controls AssumptionsFY 2025—No expected effect from U.S. export controls; limited tariff impact Introduced framework

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Illumina partnership (NGS SomaScan)H1 2025 full commercial release planned; early access traction Reiterated distributed solution strategy; consumables pull-through Launch on track H1 2025; ≥$1B opportunity; 2025 transition year, stronger growth in 2026+ Improving momentum
NIH funding exposure——Modeling mid-teens % decline in Americas academic; limited direct NIH exposure (<10% of revenue), ~1/3 Americas academic Emerging headwind
China demand—Weakness cited, hoping for 2025 tailwind Team seeing good traction; 2025 looks better than 2024 Stabilizing to improving
Capital equipment marketLingering constrained CapEx; instruments down YoY Instruments down 42% YoY; funnels building Instruments down 25% YoY; selective pockets of funding release Challenged, cautiously improving
SBS operational executionEarly integration; accelerating synergies 98% delivery; complaints down >4x; cost reductions Continued margin offsets via quality/efficiency; OpEx down 24% YoY Improving
M&A pipelineStrategy central; robust pipeline Strategy update; single SOMAmer MVP 4–6 strategic transactions targeted over next 2 years; Sengenics tuck-in Active

Management Commentary

  • “Powered by SBS, we came in at the top end of our 2024 revenue guidance, exceeded our original cost synergy target by $10 million, now running at $90 million in just twelve months.” — Michael Egholm, CEO .
  • “We believe the imminent launch of our co-branded, NGS-based, distributed solution can transform the most exciting area of the market which is at least a billion-dollar opportunity.” — CEO .
  • “On-time delivery reached an industry-leading 98%, up from 78% in Q4 of 2022, while customer complaints on our main instrument platform declined more than fourfold.” — CEO .
  • “Our non-GAAP operating expenses…$42.9 million in Q4 2024 versus $56.5 million last year, a 24% YoY reduction…adjusted EBITDA loss…$18.4 million vs $28.0 million last year, a 34% improvement.” — CFO .

Q&A Highlights

  • NIH funding outlook: Management is modeling a high single-digit millions headwind concentrated in instruments; early signs show changed behaviors but limited real-time impact so far .
  • Illumina ramp and market size: ≥$1B opportunity; 2025 to be a transition year as sites ramp; stronger impact expected in 2026 .
  • China demand stimulus: Team sees traction; 2025 looks better than 2024; guide assumes no tariff/export control top-line impact .
  • M&A cadence: Rich funnel; 4–6 targeted transactions in 2025–2026; strict criteria (derisked tech, strong gross margin) .
  • Cash burn: Not providing short-term guidance; implied continued improvement off H2 exit rate; path to adjusted EBITDA breakeven in 2026 reaffirmed .

Estimates Context

  • Attempts to retrieve S&P Global Wall Street consensus for Q4 2024 (Revenue, EPS, EBITDA, counts) failed due to SPGI daily request limit being exceeded; therefore, consensus comparisons are unavailable for this report timeframe [functions.GetEstimates errors].
  • Investors should assume near-term estimate revisions to reflect: Q4 revenue mix (consumables strength vs instrument/services softness), lower non-GAAP GM vs Q4’23, and FY 2025 revenue guide midpoint below FY 2024 (NIH headwinds) .

Key Takeaways for Investors

  • Mix shift is durable: Consumables resilience and authorized-site expansion are offsetting instrument softness; monitor consumable pull-through as Illumina deployment scales in H2’25/H1’26 .
  • Margin levers intact: SBS execution (quality, yield, warranty) should support gross margin despite near-term volume headwinds; watch instrument replacement costs subsiding through 2025 .
  • Guidance conservative: FY25 revenue range bakes in NIH pressure and minimal export/tariff effects; upside if capital budgets ease or Illumina ramps faster .
  • Concentration risk improving: Lab Services broadening beyond top 5 accounts (double-digit growth outside top customers), but project timing remains lumpy—model variability quarter-to-quarter .
  • Balance sheet optionality: ~$295M cash and “no material debt” provide runway to 2026 adjusted EBITDA breakeven and capacity for bolt-on M&A; track disciplined integration .
  • Regional watchpoints: China appears to be troughing; Americas academic instruments most exposed to NIH shifts—monitor funding headlines and institutional procurement calendars .
  • Trading lens: Near-term narrative hinges on Illumina launch milestones, NIH funding clarity, and instrument demand signals; a clearer 2026 profitability path could re-rate multiples as EBITDA loss narrows .