Bionano Reports First Quarter 2024 Results and Highlights Recent Business Progress
May 08 2024 - 3:01PM
Bionano Genomics, Inc. (Nasdaq: BNGO) today reported financial
results for the first quarter ended March 31, 2024.
Recent Highlights
- Announced a strategic
partnership with Hangzhou Diagens Biotechnology Co.,
Ltd. (Diagens), an
assisted reproductive technology company based in China; the joint
endeavor aims to commercialize the first ever cytogenetic workflow
that integrates OGM plus artificial intelligence (AI) chromosome
karyotype analysis for clinical use in reproductive health.
- Announced a registered direct
offering priced at-the-market under Nasdaq rules, with gross
proceeds to the Company of approximately $10
million, before deducting the placement agent’s fees and
other offering expenses payable by the Company; funds will be used
for general corporate purposes.
- Advancements to the Company’s
suite of comprehensive software analysis tools for cancer are
planned for May 2024; enhancements include a novel
aneusomy caller feature, Phred-like quality scores for detected
variants, enhanced visualization with VIA circos plots, and
customizable reporting options.
- Additional
updates and improvements to the Company’s end-to-end workflow are
underway, with a pre-commercial version of the Ionic®
Purification System for isolation of DNA for OGM analysis to
be evaluated at 3 customer sites and the full commercial launch
anticipated for the third quarter of 2024; improvements to data
analysis processing time on the Stratys™ Compute, a
high-performance workstation developed in collaboration with
NVIDIA, are anticipated for the third quarter of 2024.
- Published an implementation
study which compared OGM to traditional cytogenetic methods for the
detection of structural variants (SVs) in bone marrow aspirate
samples; results showed that OGM detected variants that
were missed by traditional methods, and that targeted Cas9-directed
nanopore sequencing was able to validate the variants detected with
OGM and define the breakpoints at the base pair level efficiently
and at high resolution.
- Reiterated full year 2024
revenue guidance of $37.0 to $41.0
million; revenue for the second quarter of 2024 is
expected to be $7.8 to $8.2 million.
Q1 2024 Highlights
- Continued efforts to reduce
cash burn and operating expense with the March 2024 announcement of
expanded cost savings initiatives; since the initial cost
savings initiative announced in May 2023, the Company plans to have
reduced headcount by approximately 200 people by the end of the
second quarter of 2024 and to have reduced annualized non-GAAP
operating expenses by about $65.0 to $75.0 million by the first
quarter of 2025.
- Installed base of OGM systems
totaled 347 at the end of the first quarter of 2024, which
represents a 34% increase over the 259 installed systems reported
at the end of the first quarter of 2023.
- 8,249 nanochannel array
flowcells sold during the first quarter of 2024, which
represents an increase of 58% over the 5,226 flowcells sold during
the first quarter of 2023.
- Key publications support OGM’s
utility:
- In a study on hereditary breast and
ovarian cancer syndrome, researchers used OGM to detect SVs in
tumors that may be linked to mutated genes and altered signaling
pathways, which may correlate to tumor progression, prognosis and
chemotherapy resistance. OGM also detected chromothripsis events
and novel gene fusions in cancer tissues with high accuracy,
including novel gene fusions that were not detected by other
methods.
- A peer-reviewed publication
in Cancers found that that the use of OGM for SV
detection combined with drug sensitivity data for the same samples
can identify potentially pathogenic SVs that may be drivers of drug
sensitivity or resistance.
“We are pleased with our Q1 2024 results, which
include significant growth in year-over-year revenue, expansion in
the OGM system installed base, and advances to our end-to-end
workflow,” commented Erik Holmlin, PhD, president and chief
executive officer of Bionano. “Our focus remains on strengthening
the company's long-term growth profile. As a part of our ongoing
evolution, we are continuing to execute on cost savings and
strategic productivity initiatives intended to allow us to be more
focused and agile, drive efficiency across the company, and
prioritize investing in opportunities where we see the greatest
potential to increase global adoption and utilization of OGM."
Q1 2024 Financial Results
- Total revenue for the first
quarter of 2024 was $8.8 million, an increase of 18%
compared to the first quarter of 2023.
- GAAP gross margin for the first
quarter of 2024 was 32%, compared to 28% from the first
quarter of 2023. First quarter 2024 non-GAAP gross margin was 34%,
compared to 30% from the first quarter of 2023. First quarter 2024
non-GAAP gross margin excludes $128,000 in stock-based compensation
and $11,000 of restructuring expense.
- First quarter 2024 GAAP
operating expense was $33.9 million, and $24.7
million on a non-GAAP basis. Non-GAAP operating expense in
the first quarter of 2024 excludes restructuring costs, stock-based
compensation, and other adjustments as detailed in the
reconciliation table accompanying this press release. In the first
quarter of 2023, GAAP operating expense was $39.9 million and $33.6
million on a non-GAAP basis. First quarter 2023 GAAP to non-GAAP
reconciliation can be found in the same table in this release.
- Cash, cash
equivalents, and available-for-sale securities were $53.2 million
as of March 31, 2024 compared to cash, cash equivalents
and available-for-sale securities of $102.3 million as of December
31, 2023. As of March 31, 2024, $24.8 million was subject to
certain restrictions compared to $35.5 million as of December 31,
2023. The $24.8 million subject to certain restrictions is reduced
as we pay down the outstanding principal amount on our debt.
- Raised
$15.1 million in net proceeds in the first quarter of 2024
through our ATM facility.
- The change in total cash
balance from December 31, 2023 to March 31, 2024 consists of $19
million cash burn from operating activities
excluding interest and debt retirement fees, $9
million in interest and debt retirement fees, $37 million in repaid
principal offset by $15 million in net ATM proceeds; in the first
quarter of 2023, cash burn from operating activities excluding
interest and debt retirement fees was $32 million.
Gülsen Kama, chief financial officer at Bionano
added, “Q1 2024 was an important quarter for the Company. Our
operating expense and cash burn improved year-over-year as a result
of the cost savings initiatives we announced in May and October
2023, and we expect to see continued improvement to both as a
result of the reduction in force we announced in March 2024. We
continue to work to reduce our expenditures as we pursue ways to
extend our cash runway.”
Conference Call & Webcast Details
Date: |
Wednesday, May 8th, 2024 |
Time: |
4:30 p.m. ET |
Participant Dial-In: |
Toll Free: 1-833-630-1956International: 1-412-317-1837 |
Webcast Link: |
https://edge.media-server.com/mmc/p/5z343pph/ |
Participants may access a live webcast of the call on the
Investors page of the Bionano website. A replay of the conference
call and webcast will be archived on Bionano’s investor relations
website at https://ir.bionano.com/ for at least 30 days.
About Bionano
Bionano is a provider of genome analysis solutions that can
enable researchers and clinicians to reveal answers to challenging
questions in biology and medicine. The Company’s mission is to
transform the way the world sees the genome through OGM solutions,
diagnostic services and software. The Company offers OGM solutions
for applications across basic, translational and clinical research,
and nucleic acid extraction and purification solutions using
proprietary isotachophoresis (ITP) technology. Through
its Lineagen, Inc. d/b/a Bionano
Laboratories business, the Company also provides OGM-based
testing for certain laboratory developed tests. The Company also
offers an industry-leading, platform-agnostic software solution,
which integrates next-generation sequencing and microarray data
designed to provide analysis, visualization, interpretation and
reporting of copy number variants, single-nucleotide variants and
absence of heterozygosity across the genome in one consolidated
view. For more information, visit www.bionano.com
and www.bionanolaboratories.com.
Unless specifically noted otherwise, Bionano’s OGM products
are for research use only and not for use in diagnostic
procedures.
Non-GAAP Financial Measures
To supplement Bionano’s financial results
reported in accordance with U.S. generally accepted accounting
principles (GAAP), the Company has provided non-GAAP gross margin
and non-GAAP operating expense in this press release, which are
non-GAAP financial measures. Non-GAAP operating expense excludes
from GAAP reported operating expense the following components as
detailed in the reconciliation table accompanying this press
release: costs directly attributable to the company restructuring,
stock-based compensation, amortization of intangibles, change in
fair value of contingent consideration and certain deal-related
costs. Non-GAAP gross margin excludes from GAAP reported gross
margin stock-based compensation and certain restructuring expense
as detailed in the reconciliation table accompanying this press
release.
Bionano believes that non-GAAP gross margin and
non-GAAP operating expense are useful to investors and analysts as
a supplement to its financial information prepared in accordance
with GAAP for analyzing operating performance and identifying
operating trends in its business. Bionano uses non-GAAP gross
margin and non-GAAP operating expense internally to facilitate
period-to-period comparisons and analysis of its operating
performance in order to understand, manage and evaluate its
business and to make operating decisions. Accordingly, Bionano
believes these measures allow for greater transparency with respect
to key financial metrics it uses in assessing its own operating
performance and making operating decisions.
These non-GAAP financial measures are not meant
to be considered in isolation or as a substitute for comparable
GAAP measures; should be read in conjunction with the Company’s
consolidated financial statements prepared in accordance with GAAP;
have no standardized meaning prescribed by GAAP; and are not
prepared under any comprehensive set of accounting rules or
principles. In addition, from time to time in the future, there may
be other items that the Company may exclude for purposes of its
non-GAAP financial measures; and the Company may in the future
cease to exclude items that it has historically excluded for
purposes of its non-GAAP financial measures. Likewise, the Company
may determine to modify the nature of its adjustments to arrive at
its non-GAAP financial measures. Because of the non-standardized
definitions of non-GAAP financial measures, the non-GAAP financial
measures as used by Bionano in this press release and the
accompanying reconciliation table have limits in its usefulness to
investors and may be calculated differently from, and therefore may
not be directly comparable to, similarly titled measures used by
other companies.
For a reconciliation of non-GAAP gross margin
and non-GAAP operating expense to gross margin and operating
expense reported in accordance with GAAP, please refer to the
financial tables accompanying this release.
Forward-Looking Statements of Bionano
Genomics
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Words such as “believe,” “estimate,” “expect,”
“may,” “plan,” “will” and similar expressions (as well as other
words or expressions referencing future events, conditions or
circumstances) convey uncertainty of future events or outcomes and
are intended to identify these forward-looking statements.
Forward-looking statements include statements regarding our
intentions, beliefs, projections, outlook, analyses or current
expectations concerning, among other things: our expectations
regarding product uptake, revenue growth, market development and
increased OGM adoption, including through publications highlighting
the utility and applications of OGM; our growth prospects and
future financial and operating results; the growth of our installed
OGM system base; the sales of our flowcell consumables and the
other expectations related thereto; our commercial expectations,
including the potential to increase global adoption and utilization
of OGM; the anticipated benefits and success of our collaboration
efforts, including the opportunities offered by our anticipated
collaborations with NVIDIA; continued research, presentations and
publications involving OGM and its utility compared to traditional
cytogenetics and our technologies; our ability to drive adoption of
OGM and our technology solutions; our cost savings and strategic
productivity initiative including the expected reduction in
headcount and annualized operating expenses; and efforts to extend
our cash runway. Each of these forward-looking statements involves
risks and uncertainties. Actual results or developments may differ
materially from those projected or implied in these forward-looking
statements. Factors that may cause such a difference include the
risks and uncertainties associated with: the timing and amount of
revenue we are able to recognize in a given fiscal period; the
impact of adverse geopolitical and macroeconomic events, such as
recent and potential future bank failures and the ongoing conflicts
between Ukraine and Russia and Israel and Hamas, on our business
and the global economy; general market conditions, including
inflation and supply chain disruptions; changes in the competitive
landscape and the introduction of competitive technologies or
improvements to existing technologies; changes in our strategic and
commercial plans; our ability to obtain sufficient financing to
fund our strategic plans and commercialization efforts and our
ability to continue as a “going concern”; the ability of medical
and research institutions to obtain funding to support adoption or
continued use of our technologies; study results that differ or
contradict the results mentioned in this press release; and the
risks and uncertainties associated with our business and financial
condition in general, including the risks and uncertainties
described in our filings with the Securities and Exchange
Commission, including, without limitation, our Annual Report on
Form 10-K for the year ended December 31, 2023 and in other filings
subsequently made by us with the Securities and Exchange
Commission. All forward-looking statements contained in this press
release speak only as of the date on which they were made and are
based on management’s assumptions and estimates as of such date. We
do not undertake any obligation to publicly update any
forward-looking statements, whether as a result of the receipt of
new information, the occurrence of future events or otherwise.
CONTACTS
Company Contact:Erik Holmlin, CEOBionano
Genomics, Inc.+1 (858) 888-7610eholmlin@bionano.com
Investor Relations:David HolmesGilmartin
Group+1 (858) 888-7625IR@bionano.com
BIONANO GENOMICS, INC |
Condensed Consolidated Balance Sheet
(Unaudited) |
|
(Unaudited) |
|
|
|
March 31, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
15,759,000 |
|
|
$ |
17,948,000 |
|
Investments |
|
12,561,000 |
|
|
|
48,823,000 |
|
Accounts receivable, net |
|
8,313,000 |
|
|
|
9,319,000 |
|
Inventory |
|
19,587,000 |
|
|
|
22,892,000 |
|
Prepaid expenses and other current assets |
|
4,945,000 |
|
|
|
6,019,000 |
|
Restricted investments |
|
24,446,000 |
|
|
|
35,117,000 |
|
Total current assets |
|
85,611,000 |
|
|
|
140,118,000 |
|
Restricted cash |
|
400,000 |
|
|
|
400,000 |
|
Property and equipment, net |
|
25,279,000 |
|
|
|
23,345,000 |
|
Operating lease right-of-use asset |
|
4,870,000 |
|
|
|
5,633,000 |
|
Financing lease right-of-use asset |
|
3,453,000 |
|
|
|
3,503,000 |
|
Intangible assets, net |
|
31,734,000 |
|
|
|
33,974,000 |
|
Other long-term assets |
|
6,648,000 |
|
|
|
7,431,000 |
|
Total assets |
$ |
157,995,000 |
|
|
$ |
214,404,000 |
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
9,844,000 |
|
|
$ |
10,384,000 |
|
Accrued expenses |
|
11,028,000 |
|
|
|
8,089,000 |
|
Contract liabilities |
|
1,035,000 |
|
|
|
783,000 |
|
Operating lease liability |
|
2,190,000 |
|
|
|
2,163,000 |
|
Finance lease liability |
|
269,000 |
|
|
|
272,000 |
|
Purchase option liability (at fair value) |
|
5,060,000 |
|
|
|
8,534,000 |
|
Convertible notes payable (at fair value) |
|
29,080,000 |
|
|
|
69,803,000 |
|
Total current liabilities |
|
58,506,000 |
|
|
|
100,028,000 |
|
Operating lease liability, net of current portion |
|
2,755,000 |
|
|
|
3,590,000 |
|
Finance lease liability, net of current portion |
|
3,575,000 |
|
|
|
3,585,000 |
|
Contingent consideration |
|
10,250,000 |
|
|
|
10,890,000 |
|
Long-term contract liabilities |
|
138,000 |
|
|
|
154,000 |
|
Total liabilities |
|
75,224,000 |
|
|
|
118,247,000 |
|
Stockholders’ equity: |
|
|
|
Common stock |
|
6,000 |
|
|
|
5,000 |
|
Preferred Stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
695,411,000 |
|
|
|
677,337,000 |
|
Accumulated deficit |
|
(612,630,000 |
) |
|
|
(581,208,000 |
) |
Accumulated other comprehensive income (loss) |
|
(16,000 |
) |
|
|
23,000 |
|
Total stockholders’
equity |
|
82,771,000 |
|
|
|
96,157,000 |
|
Total liabilities and
stockholders’ equity |
$ |
157,995,000 |
|
|
$ |
214,404,000 |
|
|
|
|
|
Bionano Genomics, Inc. |
Condensed Consolidated Statement of Operations
(Unaudited) |
|
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
Product revenue |
$ |
6,828,000 |
|
|
$ |
5,447,000 |
|
Service and other revenue |
|
1,941,000 |
|
|
|
1,968,000 |
|
Total revenue |
|
8,769,000 |
|
|
|
7,415,000 |
|
Cost of revenue: |
|
|
|
Cost of product revenue |
|
4,904,000 |
|
|
|
3,858,000 |
|
Cost of service and other revenue |
|
1,041,000 |
|
|
|
1,487,000 |
|
Total cost of revenue |
|
5,945,000 |
|
|
|
5,345,000 |
|
Operating expenses: |
|
|
|
Research and development |
|
9,779,000 |
|
|
|
13,937,000 |
|
Selling, general and administrative |
|
19,536,000 |
|
|
|
25,976,000 |
|
Restructuring costs |
|
4,632,000 |
|
|
|
— |
|
Total operating expenses |
|
33,947,000 |
|
|
|
39,913,000 |
|
Loss from operations |
|
(31,123,000 |
) |
|
|
(37,843,000 |
) |
Other income (expenses): |
|
|
|
Interest income |
|
1,044,000 |
|
|
|
704,000 |
|
Interest expense |
|
(122,000 |
) |
|
|
(76,000 |
) |
Other income (expense) |
|
(1,239,000 |
) |
|
|
117,000 |
|
Total other income (expense) |
|
(317,000 |
) |
|
|
745,000 |
|
Loss before income taxes |
|
(31,440,000 |
) |
|
|
(37,098,000 |
) |
Provision for income
taxes |
|
18,000 |
|
|
|
(26,000 |
) |
Net loss |
$ |
(31,422,000 |
) |
|
$ |
(37,124,000 |
) |
|
|
|
|
|
|
|
|
Bionano Genomics, Inc. |
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited) |
|
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
GAAP gross margin: |
|
|
|
GAAP revenue |
$ |
8,769,000 |
|
|
$ |
7,415,000 |
|
GAAP cost of revenue |
|
5,945,000 |
|
|
|
5,345,000 |
|
GAAP gross profit |
|
2,824,000 |
|
|
|
2,070,000 |
|
GAAP gross margin % |
|
32 |
% |
|
|
28 |
% |
|
|
|
|
Adjusted non-GAAP gross
margin: |
|
|
|
GAAP revenue |
$ |
8,769,000 |
|
|
$ |
7,415,000 |
|
GAAP cost of revenue |
|
5,945,000 |
|
|
|
5,345,000 |
|
Stock-based compensation expense |
|
(128,000 |
) |
|
|
(146,000 |
) |
COGS restructuring |
|
(11,000 |
) |
|
|
— |
|
Adjusted non-GAAP cost of revenue |
|
5,806,000 |
|
|
|
5,199,000 |
|
Adjusted non-GAAP gross profit |
|
2,963,000 |
|
|
|
2,216,000 |
|
Adjusted non-GAAP gross margin % |
|
34 |
% |
|
|
30 |
% |
|
|
|
|
GAAP operating expense |
|
|
|
GAAP selling, general and administrative expense |
$ |
19,536,000 |
|
|
$ |
25,976,000 |
|
Stock-based compensation expense |
|
(1,716,000 |
) |
|
|
(2,379,000 |
) |
Intangible asset amortization |
|
(1,792,000 |
) |
|
|
(1,792,000 |
) |
Change in fair value of contingent consideration |
|
640,000 |
|
|
|
(789,000 |
) |
Loss on intangible asset impairment |
|
(448,000 |
) |
|
|
— |
|
Transaction related expenses |
|
(91,000 |
) |
|
|
— |
|
Adjusted non-GAAP selling, general and administrative expense |
|
16,129,000 |
|
|
|
21,016,000 |
|
GAAP research and development expense |
$ |
9,779,000 |
|
|
$ |
13,937,000 |
|
Stock-based compensation expense |
|
(1,171,000 |
) |
|
|
(1,357,000 |
) |
Adjusted non-GAAP research and development expense |
|
8,608,000 |
|
|
|
12,580,000 |
|
GAAP restructuring costs |
$ |
4,632,000 |
|
|
$ |
— |
|
Restructuring costs |
|
(4,632,000 |
) |
|
|
— |
|
Adjusted non-GAAP restructuring costs |
|
— |
|
|
|
— |
|
Total adjusted non-GAAP
operating expense |
$ |
24,737,000 |
|
|
$ |
33,596,000 |
|
|
|
|
|
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