Bionano Genomics, Inc. Q1 FY2025 earnings call

Strategic Shift

• Implemented in September 2024, shifting from heavy customer acquisition to focusing on routine users of OGM products and via software.

Financial Results

• Total revenue in Q1 2025 was $6.5M, down 26% y-o-y; flowcell sales had a 15% decrease y-o-y but up 1% when excluding sales to new customers. GAAP and non-GAAP gross margins were 46% in Q1 2025 vs. 32% and 34% respectively in Q1 2024. Operating expenses decreased significantly.

Installed Base

• Installed base of OGM systems grew to 379, a 9% y-o-y increase with net eight new installations in Q1 2025.

Publications and Research

• Q1 2025 had 95 publications, second only to Q1 2024's 99. 978 clinical research genomes were published in Q1 2025, bringing total to over 9,100 since 2020. MD Anderson study was highlighted, showing OGM's clinical utility.

Strategic Pillars

• Focus on supporting routine users through training, menu expansion, and reimbursement support; publications from customers drive these activities.

In the first quarter of 2025, total revenue was $6.5 million, a 26% decrease compared to the first quarter of 2024. The decrease was due to no revenue from discontinued clinical services in 2025 unlike $1.4 million in 2024. 6,994 flowcells were sold in Q1 2025, a 15% decrease year-over-year, but excluding flowcells sold to new customers, Q1 2025 flowcells sold were up 1% compared to the prior year. GAAP gross margin for Q1 2025 was 46%, significantly higher than the 32% in Q1 2024. Non-GAAP gross margin was also 46% in Q1 2025 vs. 34% in Q1 2024. Operating expense in Q1 2025 was $11.4 million (GAAP) and $8.5 million (non-GAAP), both significantly lower than the prior year. The installed base of OGM systems grew to 379, a 9% year-over-year increase with a net increase of eight systems.

• Full year revenues expected in the range of $26 million to $30 million, an update from prior views due to global trade turbulence. - Q2 revenues expected in the range of $6.3 million to $6.8 million. - Expect to install 15 to 20 new OGM systems over 2025, primarily at routine use sites.

• Global trade uncertainty may impact customer purchasing decisions. - Some input materials come from outside the U.S., and tariffs and supply chain issues could have negative impacts down the road.

Q: Hi. Thanks for taking the questions. Maybe starting out with the MD Anderson study that was published, that is really exciting to see that. I was wondering, is MD Anderson a big customer currently? If not, would this -- could this be an impetus for that institution to broadly adopt OGM going forward?

A: Well, so they are an existing user, and I think it's a really good story of how these sites progress over time. And we've been working with them for quite some time, but they started out using the product in some basic research studies and began to see the value in OGM, published a really groundbreaking paper in August of 2022...

Q: Vivian Alhorn: Hey, guys. This is Vivian on for Mark. Thanks for taking the question. So I believe you've had the Category 1 CPT code in hand for about five months now. I think this was intended to incentivize customers to get reimbursed for running applications. Just wondering how you've seen this play out as a tailwind thus far. Thanks.

A: Yeah. Thank you, Vivian. So, couple of things just to make sure that we vocalize the situation around the Category 1 CPT code accurately, that was something that a OGM customer, petitioned the AMA for -- and through that process, the AMA established the code...

Q: Joanne Lee: Hi. This is Joanne Lee on the call for Jason McCarthy. Thanks for taking our question. Just one from us. Could you just talk a little bit about what steps you're taking to increase Saphyr utilization among existing routine users? Thank you.

A: Yeah. It's a handful of interactions, but I would really say, three things. Number one is working with those customers, especially, the ones doing hematologic malignancy research to become to adopt our VIA software and become proficient in it...