Burning Rock Biotech Q4 revenue up 20% YoY to $92.4mln

• Burning Rock Biotech reports Q4 and FY2024 financial results • Completed profitability-driven organizational optimization • Early Detection THUNDER study included in cancer guidelines • ELSA-seq shows impressive performance in cancer detection • Presented study results on small-cell lung and colorectal cancer at ASCO in June 2024 • Focused on precision oncology and NGS technology applications.

Burning Rock Biotech (BNR), a leading NASDAQ-listed biotech company specializing in precision oncology and next-generation sequencing (NGS) technology applications, recently reported its Q4 and full-year 2024 financial results [1]. The company demonstrated mixed performance across different business segments, with notable progress toward profitability and significant scientific advancements.

Q4 revenues increased by 4.1% to RMB126.0 million (US$17.3 million), driven primarily by a 50.9% surge in in-hospital business to RMB43.5 million. Central laboratory revenue, however, declined by 23.4% to RMB39.3 million. Despite the mixed revenue performance, Burning Rock's gross margin improved significantly to 71.0% in Q4 2024 from 64.5% in the previous year.

Operating expenses decreased by 29.9% to RMB171.3 million, a result of profitability-driven organizational optimization and cost-control measures. As a result, the company's net loss narrowed to RMB81.3 million (US$11.1 million) from RMB162.2 million in the prior year.

For full-year 2024, total revenue decreased by 4.0% to RMB515.8 million, with in-hospital business growing by 19.0% and central laboratory revenue declining by 24.6%. The company's net loss improved significantly to RMB346.6 million from RMB653.7 million in 2023.

Burning Rock's Q4 results showcase substantial progress toward profitability. The company's strategic pivot toward in-hospital testing has transformed their revenue mix, with the in-hospital segment now contributing more revenue than their historical core laboratory business. This transition appears to be strategically sound, as the in-hospital segment experienced a notable 50.9% growth in revenue.

Most impressive is the substantial margin improvement across all business segments. Overall gross margin expanded by 650 basis points to 71.0%, with particularly notable improvement in the in-hospital segment (from 44.8% to 68.0%). The company has effectively reduced operating expenses by 29.9% through headcount reductions and operational streamlining.

While full-year revenue declined by 4.0% to RMB515.8 million, the Q4 uptick of 4.1% may indicate stabilization. The company's cash position of RMB522.2 million (US$71.5 million) provides approximately one year of runway at current burn rates, giving them time to continue their operational improvements.

Scientifically, Burning Rock's visibility remains strong, with studies presented at major oncology conferences, including the American Society of Clinical Oncology (ASCO) in June 2024. The THUNDER early detection study was included in cancer guidelines, and ELSA-seq showed impressive performance in cancer detection [1].

In conclusion, Burning Rock Biotech's Q4 and full-year 2024 financial results demonstrate progress toward profitability and significant scientific advancements. The company's strategic pivot toward in-hospital testing and margin improvement efforts position them for continued success in the precision oncology and NGS technology markets.

[1] StockTitan. (2024, June 21). Burning Rock Reports Unaudited Fourth Quarter and Full-Year 2024 PC6MIT769MR1. https://www.stocktitan.net/news/BNR/burning-rock-reports-unaudited-fourth-quarter-and-full-year-2024-pc6mit769mr1.html