Standard BioTools (LAB, Financial) reported its first-quarter revenue at $40.8 million, surpassing market expectations of $40.1 million. The company's performance aligns well with its projections, demonstrating successful strategies in a challenging Life Sciences market.
The company's leadership highlighted a significant 29% year-over-year increase in adjusted EBITDA, attributed to the effectiveness of the Standard BioTools Business System (SBS). With a robust operational framework and stable financial resources, LAB is positioned to capitalize on current market opportunities and enhance shareholder value in the long term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Standard BioTools Inc (LAB, Financial) is $2.38 with a high estimate of $2.50 and a low estimate of $2.25. The average target implies an upside of 124.06% from the current price of $1.06. More detailed estimate data can be found on the Standard BioTools Inc (LAB) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Standard BioTools Inc's (LAB, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Standard BioTools Inc (LAB, Financial) in one year is $0.82, suggesting a downside of 22.64% from the current price of $1.06. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Standard BioTools Inc (LAB) Summary page.
LAB Key Business Developments
Release Date: February 26, 2025
- Revenue: $46.7 million in Q4 2024; $175.1 million for full year 2024, both down 9% year-over-year.
- Consumables Revenue: Grew 10% in Q4 and 18% for the full year 2024.
- Instrument Sales: Declined 25% in Q4 and 27% for the full year 2024.
- Lab Services Revenue: Down 18% in Q4 and 21% for the full year 2024.
- Field Services Revenue: Down 10% in Q4 2024 and 2% for the full year 2024.
- Non-GAAP Gross Margin: 52.5% in Q4 2024; 53.0% for full year 2024.
- Non-GAAP Operating Expenses: $42.9 million in Q4 2024, a 24% reduction year-over-year; $180.1 million for full year 2024, a 22% reduction.
- Adjusted EBITDA: $18.4 million loss in Q4 2024, a 34% improvement year-over-year; $87.3 million loss for full year 2024, a 33% improvement.
- Cash Position: Approximately $295 million at year-end 2024.
- 2025 Revenue Guidance: Expected to be between $165 million and $175 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Standard BioTools Inc (LAB, Financial) successfully merged two businesses, exceeding cost synergy targets and improving processes.
- The company achieved a 22% year-over-year reduction in non-GAAP operating expenses and a 33% improvement in adjusted EBITDA for the full year 2024.
- Consumables delivered double-digit growth in the fourth quarter and for the full year, driven by expansion of SomaScan-authorized sites and elevated demand.
- The company has nearly $300 million in cash, providing a strong balance sheet to execute strategic plans and fund future acquisitions.
- The partnership with Illumina is expected to unlock a significant market opportunity in proteomics, with a potential market size of $1 billion.
Negative Points
- Revenue for the fourth quarter and full year 2024 declined by 9% year-over-year, impacted by softness in instrument and services sales.
- The company anticipates a 3% decline in organic revenue for 2025, reflecting a cautious market outlook.
- There is potential impact from a reduction in NIH funding, which could affect overall academia spending and delay capital equipment purchases.
- Instrument sales were down 25% in the fourth quarter and 27% for the full year 2024 due to constrained capital spending in end markets.
- Service revenue declined mid-teens year-over-year, driven by variability in demand from a few large pharma accounts.
