Bionano Genomics, Inc. Q3 FY2024 earnings call

• Headcount reduced from ~426 in May 2023 to 125 in Sep 2024, expected to be less than 100 by 2025.
• Shifted go-to-market strategy in Sep 2024 to conserve cash and focus on routine cytogenomics customers.
• Annualized non-GAAP operating expenses reduced by ~$100 million, substantially lowering cash needed to reach profitability.
• Consumable sales grew, especially OGM consumables for hematological malignancies, constitutional genetic diseases, etc.
• 83 publications in Q3, up 12% y-o-y; clinical studies program advancing trials in hematological malignancies.
• CPT code 81195 established for cytogenomic genome-wide analysis, pricing expected to be finalized by end of Nov/early Dec 2024.
• Continued shipping Stratys systems with good demand in Europe, US, Canada, and Israel.
• Completed two registered direct offerings in July and October 2024, raising capital.

Revenue for the third quarter of 2024 was $6.1 million. This comprised $6.6 million in sales of core products and software, but was offset by a $500,000 write-down of aged receivables tied to the discontinued clinical services product. Year-over-year, revenue decreased by 35%, with a 29% reduction from discontinued clinical services and a 6% decrease from instrument sales delays. Consumable sales returned to growth, particularly OGM consumables for customers using it routinely. The OGM installed base grew to 368 systems during the quarter, a net increase of 67 systems from the prior year and a 22% growth from the end of Q3 2023. 7,835 flow cells were sold in Q3 2024, a 27% increase from the same period in 2023.

• Q4 revenues expected in the range of $6 million to $7 million.
• OGM installed base expected to reach 370 to 380 systems in Q4.
• Full year revenues projected to be in the range of $28 million to $30 million based on Q4 guidance.
• Focus on VIA software adoption, reimbursement initiatives, reducing cost of goods sold, and increasing sample pull-through.

• Transition in operating and go-to-market strategies has challenges, including one-time charges affecting P&L and balance sheet.
• Delays in capital equipment sales due to timing issues with customer approvals for purchases.
• Uncertainty around receivables from discontinued clinical services products, with potential for additional write-downs.

Q: Did you update on the status of the Ionic sample prep system?

A: We didn’t update on full commercial rollout yet, but it's progressing with high demand, anticipated to roll out into next year.

Q: Talk about growth potential for the 150 target customers and growth from instrument placements vs utilization.

A: The 150 customers include those in routine use and those working towards routine use. Consumables revenues are driven by existing installed systems switching to routine use, menu expansion, and VIA software adoption.

Q: Thoughts on COGS levers for margin improvement?

A: Cost reductions from transitioning foundries for chip consumables, overhead cost reductions, and variable cost spread over more units will improve COGS.

Q: Delays in top line impact Q4 guidance?

A: Delays are timing issues related to capital equipment sales approval processes, factored into guidance with conservatism.

Q: Plans for partnerships?

A: In partnership with institutions, but no definitive plans for new partnerships currently; trials and publications will continue.