Key Points
- The company's revenue was $71.0 million, up from $67.9 million in Q2 2023.
- Its non-GAAP income improved to $4.7 million, while its GAAP loss stood at $8.7 million.
- Management boosted its full-year guidance for both GAAP and non-GAAP earnings per share.
Fulgent Genetics (FLGT -1.66%), known for its comprehensive testing services, reported its second-quarter results on Aug. 2. Its revenues grew 4.6% year over year to $71 million, but it posted a GAAP loss of $8.7 million or $0.29 per share. However, on a non-GAAP basis, it posted income of $4.7 million or $0.15 per share. Its adjusted EBITDA loss was $727,000.
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total revenue | $71.0 million | $67.9 million | 4.6% |
| GAAP net earnings | ($8.7 million) | ($11.2 million) | N/A |
| Non-GAAP net income | $4.7 million | ($2.4 million) | N/A |
| Adjusted EBITDA | ($727,000) | ($2.7 million) | N/A |
Understanding Fulgent Genetics
Fulgent Genetics provides an extensive range of genetic testing services through its proprietary technology platform. It serves various markets, including research institutions, healthcare professionals, and biotechnology companies. Recently, it has focused on expanding its offerings in precision diagnostics and therapeutic development.
The company has diversified into developing therapeutics for oncology, with promising progress reported in several drug candidates.
Key Developments in Q2 2024
Fulgent Genetics reported significant growth in precision diagnostics, especially within reproductive health and oncology. Core revenue grew by 5% year over year to $70.2 million. This was in line with the company's full-year guidance for $280 million in core revenue, suggesting consistency in their primary business operations.
The company also made strides in therapeutic development. Enrollments for its phase 2 clinical trial of FID-007 in head and neck cancer began. Progress on this front could diversify its revenue base, mitigating the risks associated with reliance on diagnostic services.
However, Fulgent continues to face profitability challenges. Increased operating expenses were a contributing factor, rising to $45.4 million from $40.4 million in the previous year. These costs were driven by higher research and development spending, as well as administrative expenses.
On the positive side, the company maintained a strong cash position, with $837.9 million in cash, cash equivalents, and marketable securities. This financial cushion allows Fulgent to support its ongoing research and expansion without immediate liquidity concerns.
Looking Ahead
Management's previous full-year guidance anticipated a GAAP loss per share of $2.25 and a non-GAAP loss per share of $1.05, but both were revised, to losses of $1.95 and $0.30, respectively. Revenue expectations for core operations remain at $280 million.
Investors should watch for continued progress in therapeutic development and any shifts in core business performance.
