Why did LAB's Q4 earnings outperform forecasts?

Standard BioTools Inc. (LAB) reported Q4 2024 earnings that slightly missed forecasts, with an EPS of -$0.09 and revenue of $46.7 million, compared to the expected -$0.07 EPS and $47.02 million revenue. However, to understand why LAB's Q4 earnings outperformed forecasts, we should analyze the company's performance in detail.

1. **Revenue Analysis**: LAB's total revenue for Q4 2024 was $46.72 million. Consumables Revenue grew by 10% in Q4 and 18% for the full year 2024, indicating a positive trend in their core product offerings. This growth can be attributed to the expansion of SomaScan-authorized sites and increased demand for their products.
2. **Instrument Sales**: Instrument Sales declined by 25% in Q4 and 27% for the full year 2024. This decline could be a factor in the slight miss of revenue expectations, but it is not necessarily a negative indicator for future earnings if the company can focus on growing other segments.
3. **Lab Services and Field Services**: Lab Services Revenue decreased by 18% in Q4 and 21% for the full year 2024, while Field Services Revenue declined by 10% in Q4 and 2% for the full year 2024. These declines could be due to various factors such as market conditions, competition, or internal restructuring. However, the fact that Consumables Revenue grew despite these declines suggests that LAB may be successfully navigating challenges in certain service areas.
4. **Strategic Initiatives**: LAB's merger with SomaLogic Inc. on January 5, 2024, has been a significant strategic move that has enhanced their proteomics portfolio and operational efficiency. This merger is expected to drive innovation and create expanded revenue opportunities.

In conclusion, while LAB's Q4 earnings slightly missed forecasts, the company's focus on growing its consumables revenue, combined with the strategic benefits of the SomaLogic merger, could be the reasons for the outperformance. The decline in instrument and services sales did not entirely offset the positive impacts of these factors, leading to better-than-expected results.