Oxford Nanopore Technologies plc (ONTTF) Q4 2024 Earnings Call Transcript

2025-03-04 15:42:05 ET

Oxford Nanopore Technologies plc (ONTTF)

Q4 2024 Results Conference Call

March 04, 2025 04:30 AM ET

Company Participants

Gordon Sanghera - Chief Executive Officer

Nick Keher - Chief Financial Officer

Conference Call Participants

Charles Weston - RBC

James Gordon - JPMorgan

Paul Cuddon - Deutsche Bank

Sam England - Berenberg

Giang Nguyen - Citi

David Westenberg - Piper Sandler

Miles Dixon - Peel Hunt

Presentation

Gordon Sanghera

Good morning, and welcome to our 2024 full results. I'm Gordon Sanghera, Chief Executive of Oxford Nanopore, and I'm joined today by our CFO, Nick Keher.

This March marks 20th anniversary of Oxford Nanopore, which I co-founded in 2005 with a spinout from Oxford University. The Company's vision is to enable the analysis of anything by anyone, anywhere. At the core of the company is our electronic single molecule sensing platform that we launched just over 10 years ago. A decade of Nanopore sequencing has delivered over 14,000 customer publications with approximately 3,000 publications in '24 alone.

Today, we're established in more than 125 countries. We've seen sustainable compound annual growth over the last 3 years, but greater than 30%. We have manufacturing built from the bottom up that is scalable and will allow us to hit our medium-term growth and margin targets.

Getting straight into our results for 2024. In the second half of '24, our revenues were GBP 99 million. That is underlying year-on-year growth of 34% on a constant currency basis. Our full year revenues were GBP 183 million, which is 23% underlying constant currency growth. This is in line with our full year guidance of 20% to 30% that we set out last March. And I want to remind you that 74% of our revenues come from our consumable sales, that's our Flow Cells and Kits.

So how are we growing in what has been a very tough and challenging life science research tools market compared to our peer group? We have targeted end market applications, areas where only we can provide the biological insights. These are, of course, in the research markets, but also in biopharma, where customers are currently evaluating nanopore sequencing. This segment grew nearly 18%.

Clinical customers who are developing RUO Clearwave tests in the short-term with a medium to long-term view to provide fully regulated tests in this segment and this segment grew 12% and applied industrial customers, including plasmid sequencing service providers and synthetic biology service providers, and it was our fastest growth segment at over 40%.

Growth is also fueled through innovation driving platform adoption and increased consumable utilization. '24 saw strong continued demand for our P2 platform. At the end of '24, we had more than 1,900 P2 sequencers in the field. We continue to push the envelope on accuracy and output, which drives up quality and reduces the cost of sequencing, both key drivers of platform adoption and utilization....

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