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SAN DIEGO - Bionano Genomics, Inc. (NASDAQ:BNGO), a genome analysis solutions provider, disclosed preliminary financial results for the third quarter ended September 30, 2024, revealing revenue figures that fell short of earlier projections. The company now anticipates third-quarter revenue to be in the range of $6.5 to $6.8 million, a decrease from the previously guided range of $7.9 to $8.9 million.
The company also reported that its cash, cash equivalents, available-for-sale securities, and restricted cash totaled approximately $23.3 million as of September 30, 2024. Out of this, $11.4 million was subject to certain restrictions. Bionano has noted that these figures are preliminary and could be adjusted after the standard quarterly accounting procedures are completed, which may include potential impairments, write-downs, and other charges that could materially affect the financial results for the quarter.
Erik Holmlin, Bionano's president and CEO, explained that the lower-than-expected revenue could be attributed to the company's strategic business shift aimed at becoming more capital-efficient and driving utilization and adoption of Optical Genome Mapping (OGM) from the existing installed base, rather than focusing on new system placements. He also acknowledged the broader industry headwinds affecting capital equipment sales in the tools and diagnostics sector.
Despite the setbacks, Holmlin expressed optimism about the company's core business growth, emphasizing efforts to increase utilization in key geographies such as the US, Canada, Europe, and Israel.
Bionano specializes in providing OGM solutions to support research across various scientific disciplines. It also offers genome analysis software, nucleic acid extraction, and purification solutions, as well as OGM-based diagnostic testing services through its Lineagen, Inc. business.
The company's forward-looking statements in the press release caution that actual results may differ due to various risks and uncertainties, including the completion of financial review processes and the impact of global economic conditions.
This news is based on a press release statement from Bionano Genomics, and the company has yet to finalize its financial results for the third quarter of 2024.
In other recent news, Bionano Genomics announced a 10% year-over-year decline in Q2 2024 revenue, falling to $7.8 million due to a significant drop in flowcell sales, particularly in China. The company also shared plans to reduce its workforce by 45% in an effort to decrease its annual cash outflow by $25-30 million. This reduction comes along with a revision of its revenue forecast for 2024, now expecting revenues to be between $32 million and $36 million, down from the previously projected $36 million to $40 million range.
Despite these challenges, Bionano Genomics reported growth in its Optical Genome Mapping (OGM) installed base and the acceptance of a Category 1 Current Procedural Terminology (CPT) code by the American Medical Association, a development expected to enhance the adoption of its OGM technology. BTIG has downgraded Bionano Genomics from Buy to Neutral, citing concerns over the current difficult environment for raising capital, especially for smaller companies.
Moreover, Bionano Genomics is implementing cost-saving measures, aiming to reduce annualized non-GAAP expenses by $65-75 million by Q1 2025. The company has also entered into a deal with Revvity for newborn sequencing research software, a move that could potentially lead to future revenue and margin growth. These developments are part of Bionano Genomics' recent strategy to conserve cash and shift its focus towards serving its existing user base.
InvestingPro Insights
Bionano Genomics' preliminary third-quarter results reflect the challenges faced by the company, as highlighted by several key metrics from InvestingPro. The company's market capitalization stands at a modest $36.16 million, underscoring the significant decline in investor valuation over the past year. This aligns with an InvestingPro Tip indicating that the stock price has fallen significantly over the last year, with a one-year price total return of -85.75%.
The company's financial health appears precarious, as evidenced by an InvestingPro Tip stating that Bionano is quickly burning through cash. This is particularly concerning given the reported cash position of $23.3 million as of September 30, 2024, with a significant portion subject to restrictions. The company's negative operating income margin of -286.05% for the last twelve months further illustrates the financial strain.
Despite these challenges, it's worth noting that Bionano's revenue for the last twelve months was $36.58 million, with a revenue growth of 16.08% over the same period. However, this growth seems to be slowing, as indicated by the quarterly revenue decline of -10.29% in Q2 2024.
InvestingPro Tips also reveal that analysts do not anticipate the company will be profitable this year, which is consistent with the negative earnings per share (EPS) of -$4.18 reported for the last twelve months. The stock's volatility, as mentioned in another tip, is evident in its significant price movements, with the stock currently trading at just 15.75% of its 52-week high.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of Bionano Genomics' financial position and market performance. There are 5 more InvestingPro Tips available for BNGO, which could offer valuable perspective on the company's outlook amidst its current challenges.
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