Bionano Genomics: Navigating the Storm in Q4 2024

Bionano Genomics, Inc. (Nasdaq: BNGO) recently reported its financial results for the fourth quarter and full year ended December 31, 2024, providing a glimpse into how the company is navigating a challenging external environment. The earnings call, held on March 31, 2025, revealed a company in transition, focusing on cost reduction and strategic realignment to weather the storm of shrinking capital budgets and financial uncertainty.



The company's CEO, Erik Holmlin, PhD, highlighted the significant cost reduction efforts that have been underway since May 2023. "Altogether we have reduced the annualized cost of operating the business by approximately $100 million," Holmlin stated. This cost-cutting initiative has been crucial in a year marked by financial uncertainty and difficult equity capital markets. The fourth quarter of 2024 saw a GAAP operating expense of $15.4 million, down from $27.4 million in the same period the previous year, demonstrating the effectiveness of these measures.

Despite the challenging environment, Bionano has made strides in its core business. The company's total revenue for the fourth quarter of 2024 was $8.2 million, a 24% decrease from the previous year. However, this decrease is largely attributable to the discontinuation of clinical services, which accounted for $2.0 million in revenue in Q4 2023. Excluding these discontinued services, the core business showed modest growth, with a 14% increase in the installed base of OGM systems to 371 at year-end 2024.

One of the key highlights of the earnings call was the establishment of a category I CPT code for OGM on the clinical lab fee schedule managed by the Centers for Medicaid and Medicare Services (CMS). This regulatory recognition is a significant milestone for Bionano, as it provides a standardized billing mechanism for OGM services, potentially driving increased adoption and revenue. Holmlin noted, "We entered 2025 with strong demand for our products and the newly established category I CPT code for OGM on the clinical lab fee schedule managed by the Centers for Medicaid and Medicare Services (CMS) and we believe we have cash runway into 2026."

The company's focus on core revenue streams has also led to improvements in gross margins. The GAAP gross margin for the fourth quarter of 2024 was 42%, a significant increase from 23% in the same period the previous year. This improvement is a testament to Bionano's strategy of focusing on customers who use their products for routine applications, driving consistent and recurring revenues.



In addition to cost reduction and strategic realignment, Bionano has continued to innovate. The company announced the full commercial release of the high-throughput Stratys™ system, which is expected to enable a four-fold increase in raw data generation rate compared to the Saphyr® system. This innovation positions Bionano at the forefront of genomic analysis technology, attracting more customers and driving revenue growth.

Looking ahead, Bionano Genomics anticipates a revenue range of $29.0 to $32.0 million for 2025, with plans to install 15 to 20 new OGM systems. The company remains focused on cost savings and capital efficiency to sustain its operations into early 2026, positioning itself for continued growth and innovation in the genomic analysis sector.

In conclusion, Bionano Genomics' Q4 2024 earnings call provided a nuanced view of a company navigating a challenging external environment through strategic cost reduction and a focus on core revenue streams. While the company faces significant headwinds, its innovative products, regulatory recognition, and financial stability position it for long-term growth and profitability in the biotech sector.