• Full Year Core Revenue: $281.2 million, a growth of 7% compared to 2023.
• Fourth Quarter Revenue: $76.2 million, up from $70.5 million in Q4 2023.
• GAAP Loss for 2024: $42.7 million or $1.41 per share.
• Non-GAAP Income for 2024: $15 million or $0.49 per share.
• Fourth Quarter GAAP Gross Margin: 41.8%.
• Fourth Quarter Non-GAAP Gross Margin: 44.2%.
• Fourth Quarter Adjusted EBITDA: $774,000.
• Fourth Quarter Non-GAAP Income: $1.2 million or $0.04 per share.
• Cash and Equivalents: $828.6 million at year-end.
• 2025 Core Revenue Guidance: Approximately $310 million, representing 10% growth year-over-year.
• 2025 Expected Non-GAAP Gross Margin: Slightly exceed 40%.
• 2025 Expected Non-GAAP Operating Margin: Approximately minus 15%.
• 2025 Expected GAAP EPS: Loss of approximately $1.95 per share.
• 2025 Expected Non-GAAP Loss: $0.65 per share.
• 2025 Expected Cash Position: Approximately $780 million.

• Warning! GuruFocus has detected 3 Warning Signs with FLGT.

Release Date: February 28, 2025

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

Positive Points

• Fulgent Genetics Inc (NASDAQ:FLGT) reported a 14% year-over-year growth in the fourth quarter and slightly exceeded their annual core revenue guidance of $280 million.
• The company has shown growth in its laboratory service business and has good momentum going into 2025.
• Fulgent Genetics Inc (NASDAQ:FLGT) has made significant advancements in therapeutic development, including the initiation of Phase 2 clinical trials for FID-007 and the clearance of an investigational new drug application for FID-022.
• The company has launched new products, such as the exome and genome RISE, which could potentially increase diagnostic yield by as much as 30%.
• Fulgent Genetics Inc (NASDAQ:FLGT) has formed a new partnership with Foundation Medicine, which is expected to enhance their precision diagnostics offerings.

Negative Points

• The company reported a GAAP loss of $42.7 million for 2024, translating to a loss of $1.41 per share.
• Fulgent Genetics Inc (NASDAQ:FLGT) expects a non-GAAP operating margin of approximately minus 15% for 2025 as they continue to invest in business growth.
• The company's biopharma services, while showing growth, still experience large swings quarter-to-quarter, indicating variability and potential instability.
• Fulgent Genetics Inc (NASDAQ:FLGT) anticipates a cash burn of approximately $25 million for their therapeutics development business in 2025.
• The company has not included potential revenue from new partnerships, such as with Foundation Medicine, in their 2025 guidance, indicating uncertainty in realizing these opportunities.

Q & A Highlights

Q: What are the key milestones for FID-007, and do you see head and neck cancer as the biggest opportunity? A: Ming Hsieh, CEO, explained that the clinical trial for FID-007 is expected to enroll 46 patients, with costs around $10 million. Preliminary results are promising, and further data will be presented at the ASCO meeting. While head and neck cancer is a significant opportunity, they are also exploring other indications.

Q: Was there any one-time event contributing to the 14% year-over-year growth in Q4, and why is there a slowdown expected in 2025? A: Brandon Perthuis, CCO, clarified that the growth was due to market share gains rather than one-time events. The expected slowdown in Q1 2025 is due to seasonality, such as healthcare benefits resetting and adverse weather events, not macro issues.

Q: Can you elaborate on the revised plan that led to 9% sequential growth in anatomic pathology? A: Brandon Perthuis, CCO, stated that the revised plan focused on targeting the dermatopathology market due to national issues with turnaround times. Their team delivered faster results, capturing significant market share. They plan to continue scaling the sales team to maintain momentum.

Q: With the strong Q4 performance, is there potential upside to the 2025 guidance, especially with new wins like VA and Foundation Medicine? A: Brandon Perthuis, CCO, mentioned that while the guidance is based on clear visibility, new partnerships like Foundation Medicine are not yet fully baked into the numbers. There is potential upside as these partnerships develop and contribute to revenue.

Q: How should we think about the cash utilization for clinical trials and pharma efforts in 2025? A: Ming Hsieh, CEO, indicated that the expected cash burn for the therapeutics development business is around $25 million for 2025. They are efficiently using funds to develop critical drugs, with promising results expected to be published at ASCO.

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