Oxford Nanopore Technologies PLC

Latest Results (20.08.2024):

Revenue Growth

Oxford Nanopore Technologies PLC reported a strong underlying revenue growth of 39% for the year ended 31 December 2023. This growth was driven by the strength of their differentiated technology, commercial model, and strategic investments in infrastructure. The total revenue for the year was £169.7 million, a decline of 14.6% from the previous year, primarily due to the conclusion of the legacy Covid testing contract.

Gross Profit

The gross profit for Oxford Nanopore Technologies PLC in FY23 was £90.5 million, down from £123.8 million in FY22, reflecting a 26.9% decrease. The gross margin for Life Science Research Tools (LSRT) also saw a decline of 300 basis points to 53.3%, influenced by one-off impacts such as the write-off of excess COVID sequencing kits and legacy devices.

Adjusted EBITDA

Oxford Nanopore Technologies PLC reported an adjusted EBITDA loss of £104.9 million for FY23, compared to a loss of £78.6 million in FY22. The higher LSRT gross profit was offset by increased operating expenses, which included investments in commercial and marketing teams, innovation for new product development, and manufacturing and logistics infrastructure.

Net Loss

The net loss for Oxford Nanopore Technologies PLC increased to £154.5 million in FY23 from £91.0 million in FY22. This increase was primarily due to higher operating expenditures, despite a reduction in share-based payment and associated costs, and an increase in finance income. The previous year's results had also benefited from the conclusion of the Covid testing contract and a gain on the disposal of property.

Financial Outlook

Looking ahead, Oxford Nanopore Technologies PLC expects full-year 2024 LSRT revenue growth of between 6-15% on a constant currency basis, equating to £180 million to £195 million at current exchange rates. This represents a 20-30% growth on an underlying basis, excluding known headwinds. The company remains focused on key strategic initiatives to drive long-term, sustainable growth.