On August 2, 2024, Fulgent Genetics Inc (FLGT, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Fulgent Genetics Inc is a technology company that focuses on genetic testing to provide physicians with clinically actionable diagnostic information. The company is engaged in laboratory services and therapeutic development, with the majority of its revenue generated in the United States.
Q2 2024 Financial Highlights
Fulgent Genetics Inc reported total revenue of $71.0 million for Q2 2024, surpassing the analyst estimate of $69.07 million. Core Revenue, which excludes COVID-19 testing products and services, grew 5% year-over-year to $70.2 million. Despite the revenue growth, the company reported a GAAP loss of $8.7 million, or ($0.29) per share, which is better than the estimated loss of ($0.53) per share. Non-GAAP income stood at $4.7 million, or $0.15 per share.
Performance and Challenges
The company's laboratory services continue to be a strong revenue driver, particularly in Precision Diagnostics. However, the therapeutic development segment is still in its early stages, with ongoing trials and preclinical studies. The GAAP loss reflects the high operating expenses associated with research and development, selling and marketing, and general administrative costs.
Financial Achievements
Fulgent Genetics Inc's financial achievements include a significant cash position, with $837.9 million in cash, cash equivalents, and investments in marketable securities as of June 30, 2024. This strong liquidity provides the company with the flexibility to execute its strategic initiatives.
Income Statement and Key Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $71.0 million | $67.9 million |
| GAAP Net Loss | ($8.7 million) | ($11.2 million) |
| Non-GAAP Income | $4.7 million | ($2.4 million) |
| Adjusted EBITDA | ($727,000) | ($2.7 million) |
Balance Sheet and Cash Flow
As of June 30, 2024, Fulgent Genetics Inc reported total assets of $1.23 billion, with cash and cash equivalents of $65.1 million and investments in marketable securities of $772.8 million. The company generated $4.3 million in cash from operations during the quarter.
Outlook and Future Guidance
For the full year 2024, Fulgent Genetics Inc reiterated its core revenue guidance of approximately $280 million. The company also improved its GAAP loss guidance from approximately ($2.25) per share to approximately ($1.95) per share and its non-GAAP loss guidance from approximately ($1.05) per share to approximately ($0.30) per share.
Ming Hsieh, Chairperson of the Board of Directors and Chief Executive Officer, stated, “Laboratory Services continue to be a source of strength for Fulgent, fueling our initiatives and business model, with momentum in Precision Diagnostics. In Therapeutics Development, we are off to a good start with initial enrollment of our Phase 2 trial of FID-007 in Head and Neck Cancer, and we continue to move our next candidate, FID-022, through preclinical studies toward an Investigational New Drug (IND) application by the end of 2024.”
Paul Kim, Chief Financial Officer, added, “We continue to be on track with the operational objectives we set at the beginning of 2024, remaining in an enviable cash position with flexibility to execute.”
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Fulgent Genetics Inc for further details.
