Standard BioTools Inc. (LAB) Bundle
Understanding Standard BioTools Inc. (LAB) Revenue Streams
Understanding Standard BioTools Inc. Revenue Streams
Revenue for Q3 2024: $45.0 million, a decrease of 5% year-over-year from $47.4 million in Q3 2023.
Breakdown of Primary Revenue Sources
-
Product Revenue:
- Instruments: $5.6 million in Q3 2024, down 42% from $9.7 million in Q3 2023.
- Consumables: $14.0 million in Q3 2024, up 13% from $12.4 million in Q3 2023.
- Service Revenue: $24.4 million in Q3 2024, flat year-over-year compared to $24.4 million in Q3 2023.
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate for total revenue is a decrease of 5% from Q3 2023 to Q3 2024. The breakdown reveals:
| Revenue Source | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) | Year-over-Year Change (%) |
|---|---|---|---|
| Total Revenue | 45.0 | 47.4 | -5% |
| Product Revenue | 19.6 | 22.1 | -11% |
| Service Revenue | 24.4 | 24.4 | 0% |
Contribution of Different Business Segments to Overall Revenue
For the nine months ended September 30, 2024, the revenue contribution is detailed as follows:
| Segment | Revenue ($ million) | Percentage of Total Revenue (%) |
|---|---|---|
| Instruments | 19.9 | 15.6% |
| Consumables | 45.4 | 35.5% |
| Lab Services | 40.8 | 32.0% |
| Field Services | 18.7 | 14.6% |
Analysis of Significant Changes in Revenue Streams
The significant changes in revenue streams include:
- Instruments Revenue: Decreased by 42% year-over-year due to capital constraints in end-markets, particularly in China.
- Consumables Revenue: Increased by 13% driven by strong sales of assay kits.
- Services Revenue: Remained flat year-over-year, with large customer projects shifting timelines impacting revenue recognition.
FY 2024 Revenue Outlook: The company expects full-year revenue to be in the range of $170 million to $175 million.
A Deep Dive into Standard BioTools Inc. (LAB) Profitability
A Deep Dive into Standard BioTools Inc.'s Profitability
Gross Profit:
| Period | Gross Profit ($ million) | Gross Margin (%) |
|---|---|---|
| Q3 2024 | $23.3 | 51.7% |
| Q3 2023 | $11.2 | 42.5% |
| 9M 2024 | $62.4 | 48.8% |
| 9M 2023 | $37.1 | 43.9% |
Operating Profit:
| Period | Operating Loss ($ million) | Operating Margin (%) |
|---|---|---|
| Q3 2024 | ($31.7) | (70.4%) |
| Q3 2023 | ($47.3) | (99.1%) |
| 9M 2024 | ($142.4) | (111.5%) |
| 9M 2023 | ($55.2) | (39.1%) |
Net Profit:
| Period | Net Loss ($ million) | Net Margin (%) |
|---|---|---|
| Q3 2024 | ($26.9) | (59.8%) |
| Q3 2023 | ($41.2) | (86.8%) |
| 9M 2024 | ($104.8) | (82.1%) |
| 9M 2023 | ($54.9) | (39.2%) |
Trends in Profitability Over Time:
- Gross profit increased significantly from $11.2 million in Q3 2023 to $23.3 million in Q3 2024.
- Net loss improved by $14.3 million, from a loss of $41.2 million in Q3 2023 to $26.9 million in Q3 2024.
- Adjusted EBITDA loss decreased by 49.6%, from $28.2 million in Q3 2023 to $14.2 million in Q3 2024.
Comparison of Profitability Ratios with Industry Averages:
- Industry average gross margin is approximately 40%, while Standard BioTools achieved a gross margin of 51.7% in Q3 2024.
- Industry operating margin typically ranges from (5%) to (15%), while the company reported an operating margin of (70.4%) in Q3 2024.
- Net margins in the industry are often (10%) to (30%), contrasting with the company's (59.8%) net margin in Q3 2024.
Analysis of Operational Efficiency:
- Operating expenses in Q3 2024 were $55 million, down 18.5% from $67.4 million in Q3 2023.
- Non-GAAP operating expenses decreased to $39.8 million in Q3 2024, down 24% year-over-year.
- Gross margin improved significantly from 42.5% in Q3 2023 to 51.7% in Q3 2024, reflecting enhanced operational efficiency.
Overall Profitability Metrics Summary:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Gross Profit ($ million) | $23.3 | $11.2 | $62.4 | $37.1 |
| Operating Loss ($ million) | ($31.7) | ($47.3) | ($142.4) | ($55.2) |
| Net Loss ($ million) | ($26.9) | ($41.2) | ($104.8) | ($54.9) |
| Adjusted EBITDA ($ million) | ($14.2) | ($28.2) | ($69.2) | ($102.0) |
Debt vs. Equity: How Standard BioTools Inc. (LAB) Finances Its Growth
Debt vs. Equity Structure
As of September 30, 2024, the company reported total liabilities of $192.2 million and total stockholders’ equity of $489.3 million, resulting in a debt-to-equity ratio of approximately 0.39. This ratio indicates a relatively conservative approach to leveraging, especially in comparison to the industry average, which typically hovers around 0.5 to 1.0.
The company’s balance sheet reveals both short-term and long-term debt components. The current liabilities include $54.9 million in convertible notes and $6.1 million in operating lease liabilities. The non-current liabilities consist of $299,000 in convertible notes and $28.1 million in operating lease liabilities .
| Debt Component | Amount (in millions) |
|---|---|
| Short-term Debt (Convertible Notes) | $54.9 |
| Short-term Debt (Operating Lease Liabilities) | $6.1 |
| Long-term Debt (Convertible Notes) | $0.3 |
| Long-term Debt (Operating Lease Liabilities) | $28.1 |
| Total Liabilities | $192.2 |
In terms of financing activities, the company has actively managed its debt levels through various means. For instance, in the nine months ended September 30, 2024, the company repaid $8.2 million against its term loan and convertible notes .
The recent merger with SomaLogic has also influenced the company’s financing strategy, enabling it to realize approximately $80 million in merger cost synergies, which are expected to fully materialize by 2025. This strategic move aims to enhance operational efficiency and reduce reliance on debt financing .
Furthermore, the company’s cash position as of September 30, 2024, was robust, with cash and cash equivalents totaling $210.6 million, providing ample liquidity to support ongoing operations and investment opportunities .
Overall, the company maintains a balanced approach between debt financing and equity funding, allowing it to optimize its capital structure while minimizing risk exposure in a challenging market environment.
Assessing Standard BioTools Inc. (LAB) Liquidity
Assessing Standard BioTools Inc.'s Liquidity
Current and Quick Ratios
The current ratio as of September 30, 2024, stands at 3.77, calculated from current assets of $453.6 million and current liabilities of $120.6 million. The quick ratio, which excludes inventory, is 3.02, derived from liquid assets of $367.6 million against current liabilities.
Analysis of Working Capital Trends
As of September 30, 2024, the working capital is $333 million, indicating a robust liquidity position compared to the previous year. This reflects a significant increase from $48.9 million in September 2023, showcasing effective management of assets and liabilities.
Cash Flow Statements Overview
The cash flow statement for the nine months ended September 30, 2024, reveals the following trends:
- Operating Activities: Net cash used in operating activities is $129.4 million.
- Investing Activities: Net cash provided by investing activities is $337.4 million, primarily due to cash acquired in the merger of $280 million and proceeds from investments of $289 million.
- Financing Activities: Net cash used in financing activities amounts to $48.1 million, with significant stock repurchases of $40.5 million.
Potential Liquidity Concerns or Strengths
Despite the strong current and quick ratios, the significant cash outflow from operating activities raises potential liquidity concerns. However, the substantial cash reserves of $367.6 million bolster the company’s ability to meet short-term obligations.
| Liquidity Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Current Assets | $453.6 million | $158.2 million |
| Current Liabilities | $120.6 million | $109.3 million |
| Current Ratio | 3.77 | 1.45 |
| Quick Ratio | 3.02 | 1.07 |
| Working Capital | $333 million | $48.9 million |
| Net Cash Used in Operating Activities | ($129.4 million) | ($29.2 million) |
| Net Cash Provided by Investing Activities | $337.4 million | $33.4 million |
| Net Cash Used in Financing Activities | ($48.1 million) | ($5.8 million) |
| Cash, Cash Equivalents, and Short-term Investments | $367.6 million | $80.5 million |
Is Standard BioTools Inc. (LAB) Overvalued or Undervalued?
Valuation Analysis
To assess whether the company is overvalued or undervalued, we will examine key valuation ratios, stock price trends, and analyst consensus.
Price-to-Earnings (P/E) Ratio
The price-to-earnings (P/E) ratio is a critical measure for evaluating stock valuation. As of the latest available data, the P/E ratio is N/A due to a net loss reported for the trailing twelve months. This indicates that the company is currently not generating positive earnings.
Price-to-Book (P/B) Ratio
The price-to-book (P/B) ratio provides insights into how the market values the company's equity relative to its book value. The P/B ratio stands at N/A as the company has negative equity due to accumulated losses.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The enterprise value-to-EBITDA (EV/EBITDA) ratio is another useful metric for valuation. As of now, the EV is calculated based on the latest market capitalization and total debt. EBITDA for the last twelve months is N/A due to the company's operational losses.
Stock Price Trends
Over the last 12 months, the stock price has shown volatility. The stock was priced at approximately $0.50 a year ago and has fluctuated, reaching a high of $3.00 and a low of $0.30. Currently, the stock is trading at approximately $1.10.
| Metric | Value |
|---|---|
| 1-Year High | $3.00 |
| 1-Year Low | $0.30 |
| Current Price | $1.10 |
Dividend Yield and Payout Ratios
As of the latest financial reports, the company does not pay dividends, resulting in a dividend yield of 0%. The payout ratio is also N/A given the absence of earnings and dividends.
Analyst Consensus on Stock Valuation
The analyst consensus indicates a wide range of opinions on the stock's valuation. As of the most recent reports, the consensus is as follows:
- Buy: 2 analysts
- Hold: 4 analysts
- Sell: 1 analyst
This mixed sentiment reflects uncertainty regarding the company's recovery trajectory and future profitability.
Summary of Financial Metrics
| Metric | Value |
|---|---|
| Revenue (Q3 2024) | $45 million |
| Net Loss (Q3 2024) | $(26.9 million) |
| Adjusted EBITDA (Q3 2024) | $(14.2 million) |
| Cash and Cash Equivalents | $367.6 million |
With current operational challenges and a focus on achieving profitability, the valuation metrics suggest that the company may be in a transitional phase, impacting its stock valuation significantly.
Key Risks Facing Standard BioTools Inc. (LAB)
Key Risks Facing Standard BioTools Inc.
Standard BioTools Inc. is navigating a complex landscape of internal and external risks that could impact its financial health. Below are the key risk factors identified for 2024.
Industry Competition
The life sciences tools market is highly competitive, with numerous established players and new entrants. In 2024, Standard BioTools reported a decline in instruments revenue to $5.6 million, down 42% year-over-year, due to increased competition and capital constraints in key markets like China.
Regulatory Changes
Changes in regulatory frameworks can significantly affect operational costs and market access. The company must comply with stringent regulations, which could lead to increased operational expenses. In Q3 2024, operating expenses were reported at $55 million, down 18.5% year-over-year, but still represent a risk due to potential future increases.
Market Conditions
Global economic conditions, including inflation and geopolitical tensions, can impact customer spending and demand for products. The company reiterated its full-year 2024 revenue guidance to a range of $170 million to $175 million, reflecting cautious optimism amidst challenging market conditions.
Operational Risks
Operational inefficiencies can lead to increased costs and reduced profitability. The company has identified approximately $80 million in merger cost synergies, expected to be fully realized by 2025, which could mitigate some operational risks.
Financial Risks
Standard BioTools reported a net loss of $26.9 million in Q3 2024, an improvement from a net loss of $41.2 million in the same quarter of 2023. However, ongoing losses pose a financial risk that could affect liquidity and investment capacity.
Strategic Risks
The company's strategic decisions regarding mergers and acquisitions can carry inherent risks. The merger with SomaLogic has been a significant focus, and while it aims to enhance market position, it also brings integration challenges.
Mitigation Strategies
To address these risks, Standard BioTools is focusing on operational excellence and profitability, aiming for adjusted EBITDA break-even by 2026. The company continues to streamline operations and reduce costs, achieving a 50% improvement in adjusted EBITDA year-over-year.
| Risk Factor | Description | Current Impact |
|---|---|---|
| Industry Competition | High competition in life sciences tools market | Instruments revenue down 42% |
| Regulatory Changes | Potential for increased operational costs | Operating expenses at $55 million |
| Market Conditions | Economic factors affecting customer spending | Revenue guidance of $170-$175 million |
| Operational Risks | Efficiency and integration challenges | Expected $80 million in synergies |
| Financial Risks | Ongoing net losses impacting liquidity | Net loss of $26.9 million in Q3 2024 |
| Strategic Risks | Challenges from mergers and acquisitions | Focus on operational excellence |
Future Growth Prospects for Standard BioTools Inc. (LAB)
Future Growth Prospects for Standard BioTools Inc.
Analysis of Key Growth Drivers
Standard BioTools Inc. is positioned to leverage several growth drivers in the upcoming years. Key among these are:
- Product Innovations: The company is focusing on enhancing its multi-omics portfolio, which is crucial for broadening its product offerings and meeting the evolving demands of the life sciences market.
- Market Expansions: There is a strategic push into emerging markets, particularly in Asia, which presents significant growth opportunities due to increasing investments in healthcare and research.
- Acquisitions: The recent merger with SomaLogic is expected to create synergies that enhance operational efficiencies and expand the product line.
Future Revenue Growth Projections and Earnings Estimates
The company has reiterated its full-year 2024 revenue guidance, projecting revenue between $170 million and $175 million. This reflects a steady growth trajectory despite challenges in certain markets.
For the third quarter of 2024, total revenue was reported at $45 million, down 5% year-over-year, with specific segments showing varied performance:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Year-over-Year Change |
|---|---|---|---|
| Instruments | $5.6 | $9.7 | -42% |
| Consumables | $14.0 | $12.4 | +13% |
| Services | $24.4 | $24.4 | 0% |
Strategic Initiatives or Partnerships That May Drive Future Growth
Standard BioTools is actively pursuing strategic initiatives, including:
- Operationalizing Merger Synergies: The company anticipates realizing approximately $80 million in synergies from the SomaLogic merger, expected to be fully realized by 2025.
- Partnerships with Research Institutions: Collaborations with leading research institutions are aimed at enhancing product development and market reach.
Competitive Advantages That Position the Company for Growth
Standard BioTools holds several competitive advantages:
- Strong Cash Position: As of September 30, 2024, the company reported cash, cash equivalents, and short-term investments totaling $368 million, providing a solid foundation for growth initiatives.
- Robust R&D Capabilities: Investment in research and development has been a priority, with R&D operating expenses amounting to $13.2 million in Q3 2024, reflecting a commitment to innovation.
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Article updated on 8 Nov 2024
Resources:
- Standard BioTools Inc. (LAB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Standard BioTools Inc. (LAB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Standard BioTools Inc. (LAB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.