In This Article:
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Total Revenue: $37.4 million in Q4 2024.
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Core Revenue: $36.5 million, a 10% year-over-year increase.
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Diagnostics Revenue: $18.8 million, a 9% year-over-year increase.
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Sample Management Solutions Revenue: $14.8 million, a 14% year-over-year increase.
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COVID-19 Products Revenue: $1 million in Q4 2024.
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Risk Assessment Testing Revenue: $2.1 million in Q4 2024.
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GAAP Gross Margin: 36.2% in Q4 2024.
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Non-GAAP Gross Margin: 40.1% in Q4 2024.
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GAAP Operating Expenses: $26 million in Q4 2024.
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GAAP Operating Loss: $12.4 million in Q4 2024.
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Non-GAAP Operating Loss: $6.7 million in Q4 2024.
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Cash and Cash Equivalents: $268 million at the end of Q4 2024.
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Q1 2025 Revenue Guidance: $27.5 million to $31.5 million.
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Q1 2025 Core Revenue Guidance: $27 million to $31 million.
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Q1 2025 Gross Margin Expectation: Low-40s percentage, with expansion expected throughout 2025.
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2025 Adjusted Gross Margin Target: Increase towards 50% from 44.4% in 2024.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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OraSure Technologies Inc (NASDAQ:OSUR) delivered Q4 revenue in the top half of their guidance range, with core revenue growing 10% year over year.
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The acquisition of Sherlock Biosciences is expected to expand their innovation pipeline, particularly with a molecular diagnostics platform for rapid self-testing.
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FDA approval was secured for a labeling change to the OraQuick HIV self-test, increasing access for adolescents aged 14 and older.
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Positive cash flow from operations was generated in Q4, demonstrating progress in operating efficiency and cost savings initiatives.
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The international diagnostics business achieved record revenue in 2024, surpassing previous highs set in 2023.
Negative Points
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Uncertainty in international HIV testing programs due to administrative orders and funding freezes, particularly affecting PEPFAR-supported programs.
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Potential reductions in NIH research funding are creating uncertainty for academic and research organizations that utilize OraSure's sample management solutions.
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The risk assessment testing business is being exited, with related inventory reserves impacting gross margins.
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Gross margin was slightly below expectations due to a mix of lower than expected margins in the risk assessment business and higher scrap expenses.
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Elevated uncertainty in the market environment is affecting customer segments, with potential impacts on revenue from large consumer genomics customers.
Q & A Highlights
Q: Can you summarize the global uncertainty impact on OraSure, particularly regarding PEPFAR and academic funding? A: Carrie Eglinton Manner, President and CEO, explained that PEPFAR is the primary concern due to its funding uncertainty, despite a waiver being in place. The academic sector is more of a monitoring situation with no significant slowdown observed yet. PEPFAR's impact is included in Q1 guidance, with less than $1 million accounted for, while academic funding remains under observation.