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Singular Genomics Systems, Inc. (OMIC)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 2024 revenue was $0.41M, driven primarily by consumables, with net loss of $16.8M and diluted EPS of $6.72; operating expenses fell sharply YoY, aided by a $1.6M non-cash lease modification gain .
  • Gross profit remained negative (–$0.30M) as reagent rental and non-capital instrument placements pressured margins, partially offset by higher consumables margins .
  • Management shipped the first G4X Early Access instrument and two G4 systems; interest in G4X spatial sequencing is building via the Spatial Technology Access Services funnel and new datasets presented at SITC .
  • The company did not host a Q3 earnings call due to ongoing strategic transaction discussions, a notable communication change that may act as a stock narrative catalyst pending transaction outcomes .

What Went Well and What Went Wrong

What Went Well

  • G4X development milestones: “We made significant progress in the development of the G4X spatial sequencer,” with expanded Spatial Technology Access Services interest validating the platform’s potential value in high-throughput spatial sequencing .
  • Commercial traction: Shipped the first G4X Early Access instrument and two G4 systems in Q3, indicating ongoing customer engagement across instrument portfolio .
  • Operating expense reduction: Total OpEx declined to $17.8M from $24.5M YoY, aided by disciplined spend and a non-cash gain from lease partial termination ($1.6M) .

What Went Wrong

  • Negative gross profit and margin: Gross profit of –$0.30M vs –$0.06M YoY as reagent rental/non-capital placements and support costs outweighed consumables margins .
  • Low revenue base and loss magnitude: Revenue of $0.41M with net loss of $16.8M reflects continued early-stage commercialization and cost structure burden .
  • Communication opacity: No Q3 call due to strategic transaction discussions reduces near-term visibility for investors on pipeline, demand trends, and guidance .

Financial Results

Quarterly Trend – Income Statement

MetricQ1 2024Q2 2024Q3 2024
Revenue ($USD Millions)$0.44 $0.74 $0.41
Gross Profit ($USD Millions)–$0.42 –$0.18 –$0.30
Total Operating Expenses ($USD Millions)$26.43 $22.63 $17.77
Net Loss ($USD Millions)$25.02 $21.25 $16.80
Diluted EPS ($USD)$0.34 loss $8.57 loss $6.72 loss
Weighted-Average Shares (Millions)73.93 2.48 2.50

Notes: Gross margin pressure attributed to discounts on capital purchases, reagent rental/non-capital models, and higher system support costs; partial offset from improved consumables margins .

Year-over-Year Snapshot (Q3)

MetricQ3 2023Q3 2024
Revenue ($USD Millions)$0.46 $0.41
Gross Profit ($USD Millions)–$0.06 –$0.30
Total Operating Expenses ($USD Millions)$24.47 $17.77
Net Loss ($USD Millions)$22.36 $16.80
Diluted EPS ($USD)$9.25 loss $6.72 loss

KPIs

KPIQ1 2024Q2 2024Q3 2024
G4 Systems Shipped (#)6 2 2
G4X Early Access Instrument Shipped (#)0 0 1
Cash + Short-Term Investments ($USD Millions)$150.7 $133.2 $113.8

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2024 / FY 2024None provided None provided; no call due to strategic transaction discussions N/A
Gross MarginQ4 2024 / FY 2024None provided None provided N/A
Operating ExpensesQ4 2024 / FY 2024None provided None provided N/A
Other items (OI&E, tax, dividends)Q4 2024 / FY 2024None provided None provided N/A

Earnings Call Themes & Trends

Note: The company did not host a Q3 2024 call due to strategic transaction discussions . Themes summarized from management press releases.

TopicPrevious Mentions (Q1 & Q2 2024)Current Period (Q3 2024)Trend
G4X DevelopmentProgressing development; spatial services program initiated; preparing for early access late 2024 Significant progress; shipped first G4X Early Access; presented new datasets; expanding access services funnel Positive acceleration
Spatial Technology Access ServicesProgram commenced focusing on V1 immuno-oncology panel; >50 grant applications Pipeline expansion; validation via funnel growth; new datasets in multiple tissues Strengthening demand signals
Instrument Placements (G4)Shipped 6 in Q1 Shipped 2 in Q2 Shipped 2 in Q3; revenue recognized mainly via consumables for reagent rental placements
Lease/Cost StructureNo notable mention in Q1; baseline OpEx Amended long-term lease, reducing obligations by ~$50M OpEx down; $1.6M non-cash lease modification gain in Q3
Margin DriversNegative GM due to discounts and support costs Negative GM persists; reagent rental/non-capital placements and support costs remain headwinds Headwinds persist

Management Commentary

  • “We made significant progress in the development of the G4X spatial sequencer… expansion of our Spatial Technology Access Services project funnel… reinforces our confidence in the potential for the G4X to deliver high-throughput spatial sequencing and multiomics at a superior value” — Drew Spaventa, CEO .
  • “It was another busy and productive quarter… early interest in our Spatial Technology Access Services is an encouraging sign that the unique capabilities and higher sample throughput of the G4X will serve an unmet need” — Drew Spaventa (Q2) .
  • “We are focused on supporting our existing customers and getting the G4X spatial sequencer to market as quickly as possible… expand spatial services and lay the foundation for a successful G4X launch in 2025” — Drew Spaventa (Q1) .

Q&A Highlights

  • No Q3 2024 Q&A: The company did not host a conference call due to ongoing strategic transaction discussions .
  • Q2/Q1: Calls were scheduled, but transcripts are not available via our sources, limiting visibility into detailed Q&A themes .

Estimates Context

  • Consensus estimates from S&P Global for OMIC’s Q3 2024 Revenue Consensus Mean and Primary EPS Consensus Mean were unavailable due to missing CIQ mapping. As a result, we cannot assess beat/miss versus Wall Street consensus for Q3 2024. Values retrieved from S&P Global.*

Estimates Table (Q3 2024)

MetricQ3 2024 Consensus
Revenue Consensus Mean ($USD Millions)Unavailable*
Primary EPS Consensus Mean ($USD)Unavailable*
Revenue - # of EstimatesUnavailable*
Primary EPS - # of EstimatesUnavailable*

Key Takeaways for Investors

  • Commercial progress is increasingly anchored to G4X: early access shipment and growing services funnel signal tangible customer interest and potential 2025 launch catalysts .
  • Revenue remains modest and consumables-driven; instrument revenue likely recognized over time with reagent rental models, keeping gross margins negative near term .
  • Cost discipline and structural actions (lease modification) are reducing OpEx and improving loss trajectory sequentially and YoY .
  • The absence of a Q3 call tied to strategic transaction discussions is a key narrative driver; watch for transaction updates that could materially alter the risk/reward .
  • Near-term trading: headline sensitivity to any strategic deal news and to further G4X validation datasets; limited estimate context may amplify volatility on future disclosures .
  • Medium-term thesis: success of G4X spatial sequencing commercialization and scaling of consumables revenues are critical to margin normalization; continued cost actions support runway, but revenue growth inflection is essential .
  • Monitor KPIs: instrument shipments, consumables uptake, and cash levels ($113.8M at Q3-end) to gauge commercialization pace and runway adequacy .