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Fulgent Genetics, Inc. (FLGT) Q3 2024 Earnings Call Transcript Summary

Futu News ·  Nov 11 15:40  · Conference Call

The following is a summary of the Fulgent Genetics, Inc. (FLGT) Q3 2024 Earnings Call Transcript:

Financial Performance:

  • Total Q3 revenue was $71.7 million, a decrease from $84.7 million in the third quarter of 2023.

  • GAAP gross margin was 37.3%, with a non-GAAP gross margin of 40%.

  • Non-GAAP operating margin increased approximately 2 percentage points sequentially to minus 6%.

  • Adjusted EBITDA income for Q3 was approximately $400,000, compared to an income of $18.1 million in Q3 2023.

  • Projected improvement in GAAP EPS loss from $1.95 to approximately $1.70 per share for the full year.

Business Progress:

  • Expanded carrier screening and hereditary cancer screening tests are in high demand.

  • Established a new $99 million contract over five years with VA hospitals for hereditary cancer and other germline tests.

  • Introduced KNOVA, a novel NIPT test, and received MoIDX approval for multiple hereditary cancer panels in the third quarter.

Opportunities:

  • Continued growth in core business areas: precision diagnostics, anatomic pathology, and pharma services.

  • The ability to further compete for biopharma service projects due to a larger test portfolio, including new platforms like 10x Genomics and Akoya.

  • Expanded presence in digital pathology, with 80% of slides digitized, enhancing operational efficiency and potential for integrating AI technologies in the future.

Risks:

  • Revenue from COVID-19 testing is now negligible, implying a pivot to more sustainable core business offerings.

  • A projected operating margin of approximately minus 12% for the year highlights operational risks tied to investments for growth.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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