Pacific Biosciences of California Inc (PACB)

Pacific Biosciences of California Inc (PACB) stock dropped by 18.51% due to the release of preliminary unaudited revenue figures for Q4 2023. The company reported impressive YoY growth of 113%, with Q4 revenue at *$58.4 million and full-year 2023 revenue at $200.5 million. However, this substantial drop was likely due to investor expectations not aligning with the reported results. CEO Christian Henry credited this success to the launch of new sequencing solutions.

• Key Business Updates: PacBio partnered with the GREGoR consortium and the University of California Irvine to sequence thousands of genomes, focusing on rare diseases. The release of SMRT Link 13.0 software on the Revio system introduced features like adaptive loading and expanded application support. PacBio shipped Kinnex RNA kits for scalable, cost-effective full-length RNA sequencing and received orders from over 70 customers.
• Consumable Revenue and System Shipments: Pacific Bio expected Q4 2023 consumable revenue of about **$18.9 million and annual consumable revenue of $63.4 million, with a significant portion coming from the Revio system. The company shipped 44 Revio sequencing systems during Q4, totaling 173 systems by December 31, 2023. Additionally, 20 Sequel IIe systems were shipped in 2023, bringing the cumulative total to 532 systems.
• Cash and Investments Balance: PacBio anticipated a total cash, cash equivalents, and investments balance of approximately $631 million as of December 31, 2023, reflecting the company's financial stability.
• Guidance and Future Outlook: PacBio aims for compound annual revenue growth of 40% to 50% through 2026, based on a 2022 revenue base of $128.3 million, targeting revenue exceeding $500 million by 2026. Detailed 2024 guidance will be provided during the Q4 earnings conference call in February 2024.