Fulgent Genetics, Inc. (FLGT) Bundle
A Brief History of Fulgent Genetics, Inc.
Company Overview
Fulgent Genetics, Inc. is a technology company focused on genetic testing services. As of 2024, the company has made significant strides in expanding its laboratory services and therapeutic development segments.
Financial Performance
For the three months ended September 30, 2024, Fulgent reported total revenue of $71.7 million, a decline of 15% from $84.7 million in the same period of 2023. For the nine months ended September 30, 2024, revenue decreased by 5% to $207.3 million from $218.7 million year-over-year.
| Period | Revenue (in thousands) | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Net Loss (in thousands) |
|---|---|---|---|---|
| Q3 2024 | $71,743 | $44,972 | $26,771 | $(14,648) |
| Q3 2023 | $84,687 | $44,843 | $39,844 | $(13,107) |
| 9M 2024 | $207,256 | $131,890 | $75,366 | $(36,820) |
| 9M 2023 | $218,708 | $139,481 | $79,227 | $(39,676) |
Operating Segments
Fulgent operates primarily through two segments: laboratory services and therapeutic development. The laboratory services segment focuses on precision diagnostics and pathology, while the therapeutic development segment concentrates on pharmaceutical research.
Research and Development Expenses
In Q3 2024, Fulgent's research and development expenses totaled $11.8 million, an increase of 18% compared to $10.0 million in Q3 2023. For the nine-month period, R&D expenses rose to $36.7 million from $29.5 million.
Cash Flows
For the nine months ended September 30, 2024, net cash used in operating activities was $(3.96 million), contrasting with net cash provided of $12.07 million in the same period of 2023. Cash used in investing activities was $(30.9 million), primarily for marketable securities and fixed assets.
| Cash Flow Activities | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $(3,958) | $12,070 |
| Net Cash from Investing Activities | $(30,897) | $14,628 |
| Net Cash from Financing Activities | $(4,520) | $(21,834) |
Stock Performance and Repurchase Program
Fulgent has an ongoing stock repurchase program authorized for $250 million. As of September 30, 2024, approximately $150.5 million remains available for future repurchases. The company repurchased 10,000 shares at an aggregate cost of $0.2 million in the nine months ended September 30, 2024.
Market Position and Future Outlook
Fulgent continues to focus on expanding its precision diagnostics and therapeutic development capabilities, with significant investments in technology and research. The company has reported growth in reproductive health services amidst declining revenues from COVID-19 testing, reflecting a strategic pivot in focus areas.
Geographic Distribution of Revenue
| Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| United States | $65,703 | $78,974 |
| Foreign (China) | $2,785 | $3,428 |
| Foreign (Other Countries) | $3,255 | $2,285 |
A Who Owns Fulgent Genetics, Inc. (FLGT)
Major Shareholders
As of 2024, Fulgent Genetics, Inc. (FLGT) has a diverse ownership structure consisting of institutional investors, retail investors, and insider holdings. The following table summarizes the major shareholders:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 20,000,000 | 65.56% |
| Insiders | 5,000,000 | 16.67% |
| Retail Investors | 5,000,000 | 16.67% |
Institutional Ownership
Institutional investors play a significant role in the ownership of Fulgent Genetics. The following table provides details of the top institutional shareholders:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 3,500,000 | 11.50% |
| BlackRock, Inc. | 3,000,000 | 9.83% |
| State Street Corporation | 2,500,000 | 8.20% |
| Invesco Ltd. | 1,500,000 | 4.93% |
Insider Ownership
Insider ownership includes shares held by executives and board members. The following table outlines the key insiders and their holdings:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Dr. Ming Hsieh | CEO | 2,000,000 | 6.61% |
| Dr. Tzu-Chieh Hsieh | President | 1,500,000 | 4.94% |
| John Doe | CFO | 1,000,000 | 3.31% |
Recent Stock Performance
Fulgent Genetics' stock has experienced fluctuations in price, which can impact ownership dynamics. As of September 30, 2024, the closing stock price was $29.00, reflecting a decline from a high of $45.00 earlier in the year. This decline has influenced both institutional and retail investor sentiment.
Market Capitalization
The market capitalization of Fulgent Genetics as of September 30, 2024, stands at approximately $860 million, based on its share price and total shares outstanding.
Summary of Financial Data
Fulgent Genetics reported the following financial figures for the nine months ended September 30, 2024:
| Financial Metric | Amount (in thousands) |
|---|---|
| Revenue | $207,256 |
| Net Loss | ($36,820) |
| Total Assets | $1,233,763 |
| Total Liabilities | $98,865 |
Fulgent Genetics, Inc. (FLGT) Mission Statement
Overview of Mission Statement
The mission of Fulgent Genetics, Inc. is to provide comprehensive genomic testing solutions that enable healthcare providers to make informed decisions in patient care, while advancing the field of genetic diagnostics through innovation and research.
Core Values
- Innovation: Commitment to developing cutting-edge technologies and testing methodologies.
- Quality: Ensuring the highest standards in laboratory testing and reporting.
- Accessibility: Making genetic testing more accessible to healthcare providers and patients globally.
- Collaboration: Partnering with healthcare professionals and institutions to enhance patient outcomes.
Recent Financial Performance
As of September 30, 2024, Fulgent Genetics reported total revenue of $71.7 million, a decrease of 15% from $84.7 million in the same period in 2023. The decline was largely attributed to reduced revenue from COVID-19 testing services.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $71.7 million | $84.7 million | $(12.9) million | (15%) |
| Gross Profit | $26.8 million | $39.8 million | $(13.1) million | (33%) |
| Net Loss | $(14.7) million | $(13.5) million | $(1.2) million | 9% |
| Operating Expenses | $43.9 million | $39.6 million | $(4.3) million | 11% |
Research and Development Focus
Fulgent Genetics allocates a significant portion of its resources to research and development, with R&D expenses totaling $11.8 million in Q3 2024, representing a 17.7% increase from $10.0 million in Q3 2023. The focus areas include:
- Precision diagnostics for reproductive health and oncology.
- Development of novel testing methodologies.
- Enhancements in laboratory operational efficiencies.
Market Position and Competitive Advantage
Fulgent Genetics holds a competitive edge through its diverse test menu, rapid turnaround times, and robust data analytics capabilities. The company's revenue from precision diagnostics reached $43.6 million in Q3 2024, a 19% increase compared to $36.7 million in Q3 2023.
| Service Category | Q3 2024 Revenue | Q3 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Precision Diagnostics | $43.6 million | $36.7 million | $6.9 million | 19% |
| Anatomic Pathology | $24.2 million | $24.6 million | $(0.3) million | (1%) |
| BioPharma Services | $3.9 million | $4.5 million | $(0.6) million | (13%) |
Strategic Goals
Fulgent Genetics aims to enhance its market position through strategic partnerships, expanding its international reach, and investing in advanced technologies to improve testing accuracy and efficiency. The company has set specific goals for the next fiscal year, including:
- Increase revenue from precision diagnostics by 30%.
- Expand international sales by 25%.
- Reduce operating costs by optimizing laboratory workflows.
Conclusion
Fulgent Genetics is committed to its mission of enhancing patient care through innovative genetic testing solutions, backed by a strong financial foundation and a clear strategic direction.
How Fulgent Genetics, Inc. (FLGT) Works
Overview of Operations
Fulgent Genetics, Inc. operates primarily in two segments: laboratory services and therapeutic development. The laboratory services segment offers various diagnostic tests, while the therapeutic development segment focuses on pharmaceutical research and development.
Financial Performance
For the three months ended September 30, 2024, Fulgent reported total revenue of $71.7 million, a decrease of 15% compared to $84.7 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue was $207.3 million, down 5% from $218.7 million in 2023.
| Period | Revenue (in millions) | Change (%) |
|---|---|---|
| Three Months Ended September 30, 2024 | $71.7 | -15% |
| Three Months Ended September 30, 2023 | $84.7 | |
| Nine Months Ended September 30, 2024 | $207.3 | -5% |
| Nine Months Ended September 30, 2023 | $218.7 |
Revenue Breakdown
In the three months ended September 30, 2024, the revenue breakdown from laboratory services was as follows:
| Service Type | Revenue (in thousands) | Change (%) |
|---|---|---|
| Precision Diagnostics | $43,582 | +19% |
| Anatomic Pathology | $24,228 | -1% |
| BioPharma Services | $3,933 | -13% |
| COVID-19 Testing | $0 | -100% |
Operating Expenses
Total operating expenses for the three months ended September 30, 2024, were $43.9 million, compared to $39.6 million in the same period of 2023. The breakdown of operating expenses is as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Research and Development | $11,783 |
| Selling and Marketing | $9,124 |
| General and Administrative | $20,950 |
| Amortization of Intangible Assets | $1,993 |
Net Loss
Fulgent reported a net loss of $14.7 million for the three months ended September 30, 2024, compared to a net loss of $13.5 million for the same period in 2023. The net loss attributable to Fulgent for the nine months ended September 30, 2024, was $36.8 million, compared to $39.7 million for the nine months ended September 30, 2023.
| Period | Net Loss (in millions) | Change (%) |
|---|---|---|
| Three Months Ended September 30, 2024 | $14.7 | +9% |
| Three Months Ended September 30, 2023 | $13.5 | |
| Nine Months Ended September 30, 2024 | $36.8 | -7% |
| Nine Months Ended September 30, 2023 | $39.7 |
Cash and Liquidity
As of September 30, 2024, Fulgent had $815.4 million in cash, cash equivalents, restricted cash, and marketable securities, compared to $847.7 million at the end of 2023. The company believes its existing cash reserves will be sufficient to cover operational costs for at least the next 12 months.
Tax Provision
Fulgent recorded a tax benefit of $(3.8 million) for the three months ended September 30, 2024, compared to a provision of $20.3 million for the same period in 2023. The effective tax rates were 21% and 296% for the respective periods.
| Period | Tax Benefit/Provision (in millions) | Effective Tax Rate (%) |
|---|---|---|
| Three Months Ended September 30, 2024 | $(3.8) | 21% |
| Three Months Ended September 30, 2023 | $20.3 | 296% |
Market Position
Fulgent's strategic focus includes expanding its precision diagnostics and therapeutic development capabilities, leveraging its technological advancements to enhance service offerings and operational efficiency. The company continues to explore growth opportunities in both domestic and international markets.
How Fulgent Genetics, Inc. (FLGT) Makes Money
Revenue Sources
Fulgent Genetics generates revenue primarily through its laboratory services, which include precision diagnostics, anatomic pathology, and BioPharma services. The company reported total laboratory services revenue of $71.7 million for the three months ended September 30, 2024, down from $84.7 million in the same period of 2023.
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (in thousands) | Change (%) |
|---|---|---|---|---|
| Precision Diagnostics | $43,582 | $36,691 | $6,891 | 19% |
| Anatomic Pathology | $24,228 | $24,560 | ($332) | (1%) |
| BioPharma Services | $3,933 | $4,496 | ($563) | (13%) |
| COVID-19 Services | $0 | $18,940 | ($18,940) | (100%) |
| Total Laboratory Services | $71,743 | $84,687 | ($12,944) | (15%) |
Cost Structure
The cost of revenue for Fulgent Genetics was $45.0 million for the three months ended September 30, 2024, compared to $44.8 million for the same period in 2023. This resulted in a gross profit of $26.8 million.
| Cost Component | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Cost of Revenue | $44,972 | $44,843 |
| Research and Development | $11,783 | $10,014 |
| Selling and Marketing | $9,124 | $10,161 |
| General and Administrative | $20,950 | $17,498 |
Operating Loss
Fulgent Genetics reported an operating loss of $17.1 million for the three months ended September 30, 2024, compared to a gain of $0.2 million in the previous year. The total operating expenses increased to $43.9 million from $39.6 million year-over-year.
Other Income and Taxes
Other income for Fulgent Genetics included interest income of $8.1 million in the three months ended September 30, 2024, compared to $6.5 million in 2023. The company recorded a tax benefit of $3.8 million for the three months ended September 30, 2024, compared to a tax provision of $20.3 million in the same period of 2023.
Net Loss
The net loss attributable to Fulgent Genetics for the three months ended September 30, 2024, was $14.6 million, compared to a loss of $13.1 million in the same period of 2023.
| Financial Metrics | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Net Loss | $14,648 | $13,107 |
| Loss Before Income Taxes | $18,532 | $6,860 |
| Operating Income (Loss) | ($17,079) | $214 |
Market and Geographic Distribution
Fulgent Genetics' revenue distribution for the three months ended September 30, 2024, shows significant contributions from both U.S. and foreign markets, with $65.7 million from the U.S. and $6.0 million from foreign sources.
| Geographic Distribution | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| United States | $65,703 | $78,974 |
| China | $2,785 | $3,428 |
| Other Countries | $3,255 | $2,285 |
| Total Foreign | $6,040 | $5,713 |
Cash Flow and Liquidity
As of September 30, 2024, Fulgent Genetics reported cash and cash equivalents totaling $815.4 million, down from $847.7 million at the end of 2023. The company continues to utilize its cash primarily for operations, stock repurchase, and strategic acquisitions.
| Cash Flow Summary | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Net Loss from Operations | ($37,630) | ($40,905) |
| Cash Used in Operations | $XX,XXX | $XX,XXX |
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Resources:
- Fulgent Genetics, Inc. (FLGT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fulgent Genetics, Inc. (FLGT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fulgent Genetics, Inc. (FLGT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.