Release Date: March 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bionano Genomics Inc (NASDAQ:BNGO) reported a significant improvement in GAAP gross margin for Q4 2024, rising to 42% from 23% in Q4 2023.
• The company successfully reduced its GAAP operating expenses to $15.4 million in Q4 2024 from $27.4 million in Q4 2023, primarily due to cost-saving initiatives.
• Consumable sales increased by 14% in 2024, indicating strong demand for Bionano Genomics Inc (NASDAQ:BNGO)'s products.
• Sales in the Americas and EMEA regions grew by 9% and 10% respectively in 2024, showcasing geographic expansion.
• The company extended its cash runway into Q1 2026, providing financial stability and flexibility for future operations.

Negative Points

• Total revenue for Q4 2024 decreased by 24% compared to Q4 2023, reflecting challenges in maintaining sales momentum.
• Full-year 2024 GAAP gross margin was only 1%, down from 26% in 2023, due to one-time non-cash adjustments.
• The company experienced a reduction in instrument sales by nearly $2 million, impacting overall revenue growth.
• Bionano Genomics Inc (NASDAQ:BNGO) is not providing guidance on future gross margins due to expected ongoing volatility.
• The company is focusing on a smaller group of routine users, which may limit immediate customer base expansion.

Q & A Highlights

• Warning! GuruFocus has detected 6 Warning Signs with BNGO.

Q: Eric, in terms of guidance, based on what you guys are providing, it kind of implies flattish growth every year. Would you have a sense of what the core revenue growth is contemplated in terms of your guidance for 2025? A: It's all core now, so $29.1 million core going to $29 to $32 million.

Q: Are there sapphire trade-ins taking place, or should we expect continued placements of Stratus? What might the net install base look like? A: We are focusing on routine use customers, which are 118 exiting 2024. We will continue to report the install base of optical genome mapping systems but won't guide to it due to potential trade-ins and other factors. The focus will be on revenue per customer rather than the number of systems installed.

Q: What has been the early feedback on the Stratus compute launched in collaboration with Nvidia, and how do you expect it to drive utilization for core customers? A: The feedback is positive. Stratus compute is compatible with the Stratus system, and we have software updates planned to improve its speed. We aim to continuously update and advance our software to meet customer demands for speed and efficiency.

Q: With the focus on customer acquisition, are there areas where you plan to acquire new customers that may have a lower cost of acquisition or higher utilization? A: Yes, we expect growth in the routine user group, particularly in Europe and the US. The effectiveness of the CPT code as of January 1st could be a catalyst for new sites. We will focus on leveraging published data and success stories from routine use sites.

Q: Regarding the Category One CPT code, is it application-specific, or could it be applied across any use of OGM? A: It is specific to the use of optical genome mapping in hematologic malignancies. It does not apply to other applications like constitutional genetic disorders, which may use PLA codes or bill as a reflex to standard tests.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.