Bionano Genomics Inc (BNGO) Reports Growth in Q3 2023 Amidst Strategic Cost-Saving Initiatives
Bionano Genomics Inc (NASDAQ:BNGO) sees a 29% increase in Q3 2023 revenue, reaching $9.3 million compared to Q3 2022.
The installed base of Saphyr systems grows by 39% year-over-year, with a 55% increase in nanochannel array flowcells sold.
Strategic initiatives to reduce costs are estimated to save approximately $33.0 million starting in 2024.
Bionano Genomics Inc (NASDAQ:BNGO) maintains full-year 2023 revenue guidance of $35.0 to $38.0 million.
Bionano Genomics Inc (NASDAQ:BNGO) has released its financial results for the third quarter ended September 30, 2023, on November 8, 2023. The company has reported a significant increase in revenue and growth in its product base, alongside strategic moves aimed at cost reduction and operational efficiency.
Financial Performance and Business Highlights
The third quarter of 2023 saw Bionano Genomics Inc (NASDAQ:BNGO) achieve a revenue of $9.3 million, marking a 29% increase over the same period in the previous year. This growth is attributed to the expanded installed base of Saphyr systems, which totaled 301 as of September 30, 2023, a 39% increase year-over-year. Additionally, the company sold 6,176 nanochannel array flowcells, a 55% increase from Q3 2022.
Bionano Genomics Inc (NASDAQ:BNGO) has also completed an $80.0 million registered offering and concurrent private placement, which is expected to extend the company's cash runway. The company has initiated cost-saving measures that are projected to save approximately $33.0 million starting in 2024, without compromising the development of critical products and market growth strategies.
Operational and Strategic Developments
During the quarter, Bionano Genomics Inc (NASDAQ:BNGO) launched an early access program for its Stratys system and began installations of its VIA software for hematological malignancy research. The company also appointed Gulsen Kama as CFO, who brings extensive experience in business planning and execution.
In terms of market expansion, Bionano's OEM partners in China have obtained reagent class I registrations, allowing them to market Bionano's DNA extraction kit and labeling products. The company also participated in the Cancer Genomics Consortium (CGC) 2023 Annual Meeting, highlighting the utility of OGM for cancer research.
Financial Statements Overview
The GAAP gross margin for Q3 2023 improved to 30% from 25% in Q3 2022. Non-GAAP gross margin, excluding stock-based compensation, was 32%. Operating expenses for Q3 2023 were $116.0 million, which included significant GAAP-only charges such as a $77.3 million one-time impairment charge related to the revaluation of goodwill. Non-GAAP operating expense was $31.8 million, compared to $26.3 million in Q3 2022.
As of September 30, 2023, Bionano Genomics Inc (NASDAQ:BNGO) had cash, cash equivalents, and available-for-sale securities totaling $63.6 million, a decrease from $77.1 million as of June 30, 2023.
Management Commentary
Dr. Erik Holmlin, president and CEO of Bionano, expressed satisfaction with the Q3 results, emphasizing the growth in the install base and flowcells sold. He believes that the company's strategy is proving effective and that the recent financing and cost-saving initiatives will contribute to Bionano's path to profitability.
We believe that the momentum we see building over the past year provides validation that our strategy is working. It was important to complete the recent convertible debt financing to extend the companys cash runway, which we believe will allow us to continue to advance critical products and develop our target markets to realize the full potential of OGM. We believe that the cost savings initiatives and operational efficiencies we recently implemented will play a role in leading the company to profitability."
CFO Gulsen Kama also commented on the financial planning and reporting that will be critical for Bionano's profitability, highlighting the importance of the convertible debt financing and cost reduction initiatives already in place.
I am happy to be onboard at Bionano and look forward to contributing to the strategic financial planning and reporting that will be critical for us to achieve profitability. I believe we have already taken some important steps in that direction with the convertible debt financing and the cost reduction initiatives we have put in place."
Bionano Genomics Inc (NASDAQ:BNGO) remains focused on its mission to transform the way the world sees the genome through optical genome mapping (OGM) and is committed to driving value for its stakeholders through strategic growth and operational efficiency.
Explore the complete 8-K earnings release (here) from Bionano Genomics Inc for further details.
This article first appeared on GuruFocus.
