Standard BioTools 2025 Q1 Earnings Misses Targets as Net Loss Improves 19%
Wednesday, May 7, 2025 9:26 am ET
54min read Standard BioTools (LAB) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Despite a 10% decline in revenue year-over-year to $40.8 million, results surpassed analyst expectations of $40.10 million. The earnings per share of -$0.07 also exceeded estimates of -$0.08. The company reaffirmed its full-year revenue guidance, maintaining expectations between $165 million and $175 million, despite anticipated NIH funding pressures affecting academic revenue in the Americas.
Revenue
Standard BioTools experienced a 10.4% drop in total revenue for the first quarter of 2025, totaling $40.80 million compared to $45.54 million in the same period of 2024. Product revenue amounted to $22.23 million, while services contributed $17.61 million. The collaboration and other revenue segment provided $956,000, rounding out the quarter's earnings.
Earnings/Net Income
The company reduced its net loss to $26.03 million from $32.16 million year-over-year, marking a 19% improvement. Earnings per share improved significantly, with a loss of $0.07 per share compared to $0.27 the previous year. Despite narrowing losses, the EPS performance remains weak.
Price Action
Post Earnings Price Action Review
The strategy of purchasing Standard BioTools shares following a quarter-over-quarter revenue increase has consistently underperformed over the past five years. This approach yielded a return of -8.43%, notably lagging behind the benchmark return of 83.12%. Investors faced an excess return deficit of -91.55%, compounded by a negative CAGR of -1.76%. The strategy demonstrated high volatility, embodied in a maximum drawdown of -33.21%, and a Sharpe ratio of -0.10, highlighting substantial risk and negative returns. These figures suggest that the strategy has been ineffective and fraught with challenges, as evidenced by the unfavorable metrics and high risk attached to the investment approach.
CEO Commentary
“Standard BioTools delivered a solid first quarter in line with our expectations, reflecting focused execution in a challenging Life Sciences macro backdrop,” said Michael Egholm, PhD, President and Chief Executive Officer of Standard BioTools. The company achieved a 29% year-over-year improvement in adjusted EBITDA through the Standard BioTools Business System (SBS). Dr. Egholm emphasized excitement about the strategic foothold in proteomics, noting the advantages of SomaScan and SOMAmers over traditional antibody-based approaches. He expressed optimism that the upcoming launch of an NGS-based product in partnership with Illumina will further enhance growth and access, fostering an era of proteomic discovery.
Guidance
For fiscal year 2025, the Company continues to expect revenue in the range of $165 million to $175 million. This outlook incorporates expectations of a high single-digit million dollar decline in Americas academic revenue due to anticipated NIH funding pressures, while the impact from U.S. export controls and tariffs is not expected to be significant.
Additional News
Standard BioTools has recently scheduled its first quarter earnings conference call, set for May 6, 2025, immediately following the market close. This call will provide an opportunity for stakeholders to gain insights into the company's financial results and operational progress. Investors can access the call via dial-in options for both domestic and international callers. In addition, the company has reaffirmed its earnings guidance for the full year of 2025, maintaining its projected revenue range. Standard BioTools continues to leverage its portfolio of technologies to assist biomedical researchers globally, focusing on translational and clinical research needs. The company is also gearing up for the launch of a new NGS-based product in collaboration with Illumina.
Revenue
Standard BioTools experienced a 10.4% drop in total revenue for the first quarter of 2025, totaling $40.80 million compared to $45.54 million in the same period of 2024. Product revenue amounted to $22.23 million, while services contributed $17.61 million. The collaboration and other revenue segment provided $956,000, rounding out the quarter's earnings.
Earnings/Net Income
The company reduced its net loss to $26.03 million from $32.16 million year-over-year, marking a 19% improvement. Earnings per share improved significantly, with a loss of $0.07 per share compared to $0.27 the previous year. Despite narrowing losses, the EPS performance remains weak.
Price Action
Post Earnings Price Action Review
The strategy of purchasing Standard BioTools shares following a quarter-over-quarter revenue increase has consistently underperformed over the past five years. This approach yielded a return of -8.43%, notably lagging behind the benchmark return of 83.12%. Investors faced an excess return deficit of -91.55%, compounded by a negative CAGR of -1.76%. The strategy demonstrated high volatility, embodied in a maximum drawdown of -33.21%, and a Sharpe ratio of -0.10, highlighting substantial risk and negative returns. These figures suggest that the strategy has been ineffective and fraught with challenges, as evidenced by the unfavorable metrics and high risk attached to the investment approach.
CEO Commentary
“Standard BioTools delivered a solid first quarter in line with our expectations, reflecting focused execution in a challenging Life Sciences macro backdrop,” said Michael Egholm, PhD, President and Chief Executive Officer of Standard BioTools. The company achieved a 29% year-over-year improvement in adjusted EBITDA through the Standard BioTools Business System (SBS). Dr. Egholm emphasized excitement about the strategic foothold in proteomics, noting the advantages of SomaScan and SOMAmers over traditional antibody-based approaches. He expressed optimism that the upcoming launch of an NGS-based product in partnership with Illumina will further enhance growth and access, fostering an era of proteomic discovery.
Guidance
For fiscal year 2025, the Company continues to expect revenue in the range of $165 million to $175 million. This outlook incorporates expectations of a high single-digit million dollar decline in Americas academic revenue due to anticipated NIH funding pressures, while the impact from U.S. export controls and tariffs is not expected to be significant.
Additional News
Standard BioTools has recently scheduled its first quarter earnings conference call, set for May 6, 2025, immediately following the market close. This call will provide an opportunity for stakeholders to gain insights into the company's financial results and operational progress. Investors can access the call via dial-in options for both domestic and international callers. In addition, the company has reaffirmed its earnings guidance for the full year of 2025, maintaining its projected revenue range. Standard BioTools continues to leverage its portfolio of technologies to assist biomedical researchers globally, focusing on translational and clinical research needs. The company is also gearing up for the launch of a new NGS-based product in collaboration with Illumina.
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