ONTTF - Oxford Nanopore Technologies plc (ONTTF) Full Year 2023 Earnings Call Transcript
2024-03-06 19:50:04 ET
Oxford Nanopore Technologies plc (ONTTF)
FY2023 Earnings Conference Call
March 6 2024 7:00 AM ET
Company Participants
Gordon Sanghera - Chief Executive Officer
Nick Keher - Chief Financial Officer
Conference Call Participants
Veronika Dubajova - Citigroup
Charles Weston - RBC Capital Markets
Paul Cuddon - Numis Securities
Odysseas Manesiotis - Berenberg Capital Markets
James Gordon - JP Morgan
James Orsborne - Stifel
Shubhangi Gupta - HSBC
Presentation
Gordon Sanghera
Good morning and welcome to our 2023 Full Year Results. I'm Gordon Sanghera, Chief Executive Officer of Oxford Nanopore. And today, I’m joined by new CFO, Nick Keher. Today, we will talk about some of our successes and challenges in ’23, what we learned this year, and how we will apply that to our business and guidance moving forward. We'll be reviewing our opportunities for ’24, and our expectations to meet our commitment to deliver substantial and sustainable growth going forward.
Moving straight into our full year 2023 results, we delivered strong resilient growth in ’23. Our revenues for the year were approximately £170 million. That is a 15.6% growth year-on-year and 39% underlying growth, excluding COVID and EGP revenues. We have delivered consistent growth over the last five years with our compound annual growth at 39%. Approximately 75% of our revenues are from our consumable sales of flow cells and kits.
We have more than 7,600 active customers, up 11% year-on-year. And in 2023, there were more than 2,800 new publications. These publications drive commercial uptake through demonstrable application of Nanopore sequencing, creating a direct pathway to commercial revenues. Our total Nanopore sequencing publications are now over 11,000 since the launch of MinION in 2015. From a cash perspective, we're well positioned with cash or cash equivalents and liquid investments of £472 million.
Moving to full year guidance for 2024. Our strong underlying growth does not mean we're not entirely immune to macroeconomic pressures reported by others in the life science tools markets.
We're mindful of current conditions, including lengthening sales cycles and a difficult funding environment. Therefore, we expect financial year ’24 revenue to be in the £180 million to £195 million, which is 20% to 30% growth on an underlying basis after excluding a £20 million headwind from COVID and EGP.
We expect gross margin of approximately 57% in ’24, and we will continue to invest strategically with financial discipline to achieve adjusted EBITDA breakeven by the end of ’27. This has moved back one year, reflecting end market conditions, as I've just discussed in our 2024 guidance....
Oxford Nanopore Technologies plc (ONTTF) Full Year 2023 Earnings Call Transcript