Berkeley Lights (BLI) Prelim Results Are Strong Start to Regain Investor's Confidence - Analyst

October 12, 2021 10:13 AM EDT
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(Updated - October 12, 2021 10:13 AM EDT)

Earlier today, Berkeley Lights, Inc. (Nasdaq: BLI) reported preliminary, unaudited revenue for the quarter ended September 30, 2021.

The Company's total revenue and platform placements in the third quarter of 2021 was the largest in its history. Total revenue for the third quarter is expected to be in the range of $24.0 million to $24.3 million, representing an increase of approximately 33% compared to $18.2 million in revenue for the third quarter of 2020.

Following up on the report, Stifel analyst Daniel Arias views the results favorably and believes they’re a strong first step in the company’s battle to regain investor’s confidence.

He quotes: “This morning, BLI reported that 3Q21 revenues are expected to be in the range of $24.0-$24.3 mn, which represents 33% yoy growth, and is ahead of the $23.1 mn consensus and solidly above our $21.6 mn. Placements in the quarter came in at 13, inclusive of three TechAccess subscriptions that were booked and announced in 2Q21. Six of the placements were to existing customers. It is unclear whether the recent purchase by Genovac is included in this number (announced 10/5). This represents the strongest placement quarter for BLI with installs coming in well above our 7 instrument forecast.

Overall, we view this release favorably amidst the skepticism surrounding the BLI platform and questions on the shifting P&L dynamics as the business model transitions. The fact that six of the placements were to existing customers should provide investors at least some comfort that there are multiple accounts that have acquired and used Beacons in a way that has made capacity addition a good idea. We continue to view BLI as an early-stage company with a differentiated offering that is trying to find the optimal way to bring the technology to market. Recall that management backed the full-year revenue target of $90-100 mn in September (Stifel: $90 mn). While we envision it taking a few quarters for the BLI business model to take shape and for the company to regain investor confidence, we view this morning's release as a solid start.”

The company is expected to announce full Q3 results on November 4th, 2021, before market opens.

Stifel maintains a “BUY” rating on Berkeley Lights.

Shares of BLI are moving nearly 10% higher following the announcement.

Written by Vlad Schepkov |

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Stifel, Vlad Schepkov