Fulgent Announces Q1 2024 Financial Results

Fulgent Genetics, Inc., a technology-oriented firm with established laboratory services and a therapeutic development business, has released its financial results for the first quarter ending March 31, 2024.

In the first quarter of 2024, Fulgent Genetics reported total revenue of $64.5 million. The company's core revenue, which excludes COVID-19 related services, saw a slight year-over-year increase of 1%, totaling $63.2 million. Despite the revenue generated, the company faced a GAAP loss of $13.5 million, translating to a loss of $0.45 per share. On a non-GAAP basis, the loss was significantly smaller at $269,000, or $0.01 per share. Adjusted EBITDA showed a loss of $3.2 million.

The company's operational cash flow was positive, generating $7.3 million during the quarter. By the end of March 31, 2024, Fulgent held cash, cash equivalents, and investments in marketable securities amounting to $846.2 million.

Chairperson and CEO Ming Hsieh expressed optimism about the company's start to 2024, highlighting the growth in Precision Diagnostics as a significant driver in their laboratory services. The company is also making strides in its therapeutic development business, with its leading oncology drug candidate, FID-007, moving into Phase 2 clinical trials. Another candidate, FID-022, is advancing in preclinical studies with plans to file an Investigational New Drug (IND) application by the end of the year. Hsieh believes the company is well-positioned to execute its strategy effectively.

Chief Financial Officer Paul Kim reiterated this confidence, noting the strong financial position sustained by ample cash reserves. He affirmed the company's guidance for the year, reflecting confidence in their operational objectives.

For the full year 2024, Fulgent Genetics expects core revenue to be around $280 million. However, the company anticipates a GAAP loss of approximately $2.25 per share and a non-GAAP loss of about $1.05 per share. By the end of the year, the company projects its cash, cash equivalents, and investments in marketable securities to be around $800 million, although this figure may fluctuate due to various factors, including stock repurchase programs or other extraordinary expenditures.

Fulgent's condensed consolidated balance sheet for March 31, 2024, recorded total assets of $1,229,885,000, compared to $1,235,328,000 at the end of 2023. Cash and cash equivalents stood at $54.7 million, and investments in marketable securities at $791.5 million. The company's liabilities, including accounts payable and accrued liabilities, amounted to $103.2 million, with total stockholders’ equity of $1,126,646,000.

The condensed consolidated statement of operations for the three months ending March 31, 2024, showed revenue slightly down from $66.2 million in the same period in 2023. Total operating expenses were stable at approximately $43.9 million, resulting in a higher gross profit but also a significant operating loss of $21.8 million. After accounting for interest and other income, the loss before income taxes was $14.2 million. The net loss from consolidated operations was $13.8 million, slightly improved from a net loss of $15.8 million in the first quarter of 2023.

Regarding non-GAAP measures, the company reported an adjusted EBITDA loss of $3.2 million for the first quarter of 2024, compared to a loss of $7.2 million in the same period the previous year. The non-GAAP gross margin improved to 37.4% from 32.0%, and non-GAAP operating loss decreased to $8.3 million from $12.6 million.

Fulgent Genetics remains focused on its long-term goals, balancing its established laboratory services with ongoing therapeutic development initiatives aimed at transforming into a fully integrated precision medicine company.