Oxford Nanopore Technologies Plc · LSE:ONT
Oxford Nanopore Technologies — FY2024 Earnings Presentation
41 slides from Oxford Nanopore Technologies's earnings presentation, Mar 4, 2025
Slide 1: 2024 Annual results presentation
2024 Annual results presentation 4 March 2025
Slide 2: Disclaimer
2 Disclaimer This presentation has been prepared by Oxford Nanopore Technologies plc (“Oxford Nanopore”) for Oxford Nanopore products are not intended for use for health assessment or to diagnose, treat, information purposes only and does not constitute an offer of, or solicitation to purchase or mi
Slide 3: Our vision is to enable the analysis of anything, by anyone, anywhere
Our vision is to enable the analysis of anything, by anyone, anywhere 3 We empower people to explore and answer biological questions with our transformative technology platform Any community Any environment And, Space
Slide 4: A new generation of single molecule sensing
4 A new generation of single molecule sensing Highly differentiated technology; delivered at a global scale Multi-Omics platform: • Genomics • Epigenetics • Transcriptomics Proteomics, metabolomics in development Validated technology: Customer >14,000 Publications Sustainable growth company: Establi
Slide 5: Strong FY24 performance in-line with guidance
5 Strong FY24 performance in-line with guidance 31.5% H2 24 results Underlying revenue £183m 3YR CAGR £170m £147m £99.1m 34.3% H2 24 revenue H2 24 underlying growth at CC £127m FY24 results £183.2m 23.3% FY24 revenue FY24 underlying growth at CC 2021 2022 Underlying revenue 2023 COVID EGP 2024 74% r
Slide 6: FY24 revenue by customer type
6 FY24 revenue by customer type Growth underpinned by expansion into applied markets Applied Industrial £23.5m (+41.8%) Customers utilising sequencing for application in industrial or service setting, e.g. manufacturing or 13% outsourced Synthetic biology. Applied 9% Research1 markets Clinical £127.
Slide 7: FY24 innovation highlights
7 FY24 innovation highlights New product launches driving adoption in research and applied markets Driving adoption and utilisation Driving adoption and utilisation by Growing our applied markets in research markets with new increasing platform capabilities and product offering as we prepare instrum
Slide 8: Guidance for 2025 and beyond
8 Guidance for 2025 and beyond FY24 actual FY25 guidance Medium term Revenue 23.3% >30% CAGR growth In-line with guidance 20-23% FY24-FY27 Expect to reach adj. EBITDA Gross 57.5% >62% breakeven in margin In-line with guidance ~59% FY27 FY27 and cashflow breakeven in FY28 Adjusted OpEx 3-4% 3-8% CAGR
Slide 9: FY24 Financial performance
FY24 Financial performance Nick Keher, CFO
Slide 10: FY24 performance in-line with guidance
10 FY24 performance in-line with guidance £183.2m 57.5% £(116.1)m £403.8m FY23: £169.7m FY23: 53.3% FY23: £(104.9)m FY23: £472.1m Revenue Gross margin Adjusted EBITDA Strong Balance Sheet • +11.1% CC growth including • +420 bps YoY with • Loss up 11% on prior • Enhanced in H2 24 with known headwinds
Slide 11: Snapshot of FY24 revenue performance and mix
11 Snapshot of FY24 revenue performance and mix Devices and services1: £48.4m £183.2m +26% underlying COVID £2.2m growth £169.7m EGP £1.8m COVID £8m 26% EGP: £12m Revenue 23.3% Underlying £183.2m underlying CC £179.2m Underlying £149.7m 74% Consumables2: £134.8m +18% underlying growth FY 23 FY 24 Un
Slide 12: FY24 performance by region and product range
12 FY24 performance by region and product range FY24 regional performance FY24 underlying performance by product range Underlying growth driven by EMEAI and APAC 52% underlying growth in utilisation across larger PromethION devices APAC AMR +55.8% (9.6)% +18.8% £40.4m £63.1m underlying underlying un
Slide 13: FY24 revenue split by customer type
13 FY24 revenue split by customer type Applied Industrial £23.5m (+41.8%) Customers utilising sequencing for application in industrial or service setting, e.g. manufacturing or 13% outsourced Synthetic biology. Applied 9% Research1 markets Clinical £127.5m (+1.9%) 30% £17.3m (+12.2%) Customers funde
Slide 14: Gross margin bridge
14 Gross margin bridge +420bps Solid improvement on +410bps gross margin to 57.5%: +550bps 57.5% Positive underlying movements 53.3% (420)bps PromethION Flow Cells yield improvements (120)bps Devices margins improved due to increased recycling Improvements partially offset by currency and mix (lower
Slide 15: Investing for growth with improved cost control
15 Investing for growth with improved cost control Re-acceleration in reported revenue and improvement in gross margin delivered Adjusted SG&A spend increases reflect annualised hiring whilst broadly flat R&D spend reflects investment in later stage £m FY 24 H2 24 H1 24 FY 23 H2 23 H1 23 development
Slide 16: Cash, cash equivalents and other liquid assets
16 Cash, cash equivalents and other liquid assets Cash bridge FY23 to FY24 Strong cash position: £472.1m £(112.3)m Working capital benefit as efforts to optimize £55.5m £403.8m position continue. Further value to unlock over £18.7m £(20.6)m £(13.9)m coming years on inventory. £4.2m Assets at custome
Slide 17: Strategic evolution of business pricing model
17 Strategic evolution of business pricing model Improving customer experience whilst maintaining core USP of technology Improving simplicity and Maintaining accessibility transparency for customers and affordability • Technology maturing and adoption increasing • Significant customer and pricing an
Slide 18: Financial implications of pricing model changes
18 Financial implications of pricing model changes Potential tailwinds to financial profile likely H2 weighted Revenue Gross margin Cashflow Potential uplift in Margin benefit likely Cash flow revenue from H2 limited by mix benefit • Potential shift • Not all customer or contracts to • Increased cap
Slide 19: Increasing opportunities & commercial productivity
19 Increasing opportunities & commercial productivity Maturing of commercial organisation to help drive improving revenue trajectory Revenue per head declined due to doubling of commercial team over 2023/24 period but has started to improve as sales teams bed in Material increase in opportunities, d
Slide 20: Improving unit costs to drive margin target
20 Improving unit costs to drive margin target Short and medium term margin targets underpinned by focused activities PromethION Flow Cell Rebased Unit Cost Improvement in PromethION Flow Cell unit cost 110 through yield improvements, whilst also increasing threshold for product release 100 90 Furth
Slide 21: FY25 guidance summary
21 FY25 guidance summary • Reflects US Federal funding, including NIH, risk (~10-15% revenue Revenue exposure) alongside tightening of export control restrictions growth 20-23% • Pricing model changes a potential H2 benefit • Operational improvements, particularly on PromethION Flow Cells, Adjusted
Slide 22: Pathway to adjusted EBITDA breakeven in FY27
22 Pathway to adjusted EBITDA breakeven in FY27 >30% CAGR 3-8% CAGR Targets FY24-FY27 >62% FY24-FY27 Revenue Gross margin Adjusted Operating Expenses • Higher value customer • Product and Customer mix • Future investments to selectively wins and ramp up (Device and Consumable) add capabilities or su
Slide 23: Business highlights and outlook
Business highlights and outlook Gordon Sanghera, CEO
Slide 24: Three key benefits driving adoption
24 Three key benefits driving adoption Richer insights Faster time to result Accessible & affordable Highly accurate, Multi-omic data on a single tech Near-sample, real-time workflows Scalability that enables every application captures more types of genetic variation that don’t require batching by b
Slide 25: Richer biological data: full genomic insights in one analysis
25 Richer biological data: full genomic insights in one analysis Multiomic view of DNA Epigenetics Cancer, complex Small variants disease, plants Sickle cell disease, Cystic fibrosis Larger, more Dark genome complex variants Clinically and Alzheimer’s, Parkinson’s scientifically relevant regions Bas
Slide 26: We are on our translational journey
26 We are on our translational journey Human & Infectious Disease Discovery Translation Translation Translation Translation science to humans to patients into practice to community Breakthrough Forging new ground Move to specialist Deploy in Next generation research in clinical research centres most
Slide 27: FY24: Commercial highlights by customer type
27 FY24: Commercial highlights by customer type Research1 Applied Industrial £127.5m £23.5m 13% • New 10,000 genome programme for multi-ethnic Asia • Multi-million, multi-year contract expansion with population (PRECISE) and other large-scale APAC studies in Plasmidsaurus for rapid plasmid sequencin
Slide 28: FY24: Breakthrough studies moving into practice
28 FY24: Breakthrough studies moving into practice Respiratory metagenomics: rapid pathogen analysis in critical care drives clinical and biosecurity benefits NHS expansion to as many as 30 Clinical impact Biosecurity impact sites from 2024 - Global potential • In respiratory metagenomics pilot, 45%
Slide 29: FY25: Innovation priorities
29 FY25: Innovation priorities Robust innovation pipeline to drive adoption in research and applied markets Building on our strengths Upgrading and expanding our menu of Enriching the accuracy conversation PromethION output improvements end-to-end workflows from metrics to outcomes Price per Price p
Slide 30: Looking ahead: our platform can be deployed at any scale
30 Looking ahead: our platform can be deployed at any scale Point of sample Scalable Ultra-high output With sample to answer From MinION to PromethION Voltage sensing in development in development
Slide 31: Unlocking richer insights with our single multiomic platform
31 Unlocking richer insights with our single multiomic platform Removing constraints of legacy NGS technologies Genomics Transcriptomics Proteomics Epigenetics Epitranscriptomics Post translational modifications
Slide 32: Broad opportunities underpinned by our differentiated platform
32 Broad opportunities underpinned by our differentiated platform Current Opportunity: Biopharma Clinical Applied Long 10% Beyond term vision 10% Broader opportunities today’s market unlocked by: Towards anything, anyone, $7.5 51% • Richer multiomic data Richer molecular anywhere. billion insights t
Slide 33: Key takeaways
33 Key takeaways FY24 results in-line Unique features and Focus on core end Substantial market Financially well with expectations; benefits markets, products opportunity positioned to strong H2 momentum driving platform and applications beyond the current execute strategic underpins confidence adopt
Slide 34: Appendix
Appendix
Slide 35: Investing for growth with improved cost control
35 Investing for growth with improved cost control £m FY 24 H2 24 H1 24 FY 23 H2 23 H1 23 Adjusted R&D spend marginally declining vs 2023 as focus increases on later stage development and cost discipline Revenue 183.2 99.1 84.1 169.7 83.7 86.0 Adjusted SG&A spend up +24% YoY but only +5% since H1 24
Slide 36: Underlying revenue reconciliation
36 Underlying revenue reconciliation £m FY24 FY23 Change (%) Revenue 183.2 169.7 8.0% Less EGP (1.8) (12.0) - Less COVID sequencing (2.2) (8.0) - Underlying revenue 179.2 149.7 19.7% FX 5.3 - - Underlying revenue at constant currency 184.6 - 23.3%
Slide 37: Underlying regional revenue reconciliation
37 Underlying regional revenue reconciliation Region £m FY24 FY23 Change (%) AMR 63.1 61.5 2.6% Less COVID sequencing (0.7) (3.1) - Underlying Americas revenue 62.5 58.4 7.0% APAC 40.4 34.1 18.6% Less COVID sequencing (0.3) (1.2) - Underlying APAC revenue 40.2 32.9 22.1% EMEAI 79.6 74.0 7.5% Less EG
Slide 38: Underlying revenue reconciliation: product range
38 Underlying revenue reconciliation: product range Product range £m FY24 FY23 Change (%) PromethION product range 77.3 59.2 30.6% Less EGP (1.4) (10.4) - Underlying PromethION product range 75.9 48.8 55.8% MinION product range 55.0 63.4 (13.2)% Less COVID Sequencing (1.9) (4.6) - Underlying MinION
Slide 39: Adjusted expenses reconciliation
39 Adjusted expenses reconciliation £m FY24 FY23 Research and development expenses 98.9 103.8 Adjusting items: Employer’s social security taxes on pre-IPO share awards 0.5 0.6 Adjusted research and development expenses 99.4 104.4 Amortisation of capitalised development costs (23.7) (18.4) Capitalise
Slide 40: Unique features and benefits of the technology meet unmet customer needs
Unique features and benefits of the technology meet unmet customer needs 40 Oxford Nanopore features Sequence any length fragment from short to ultra-long Direct/native DNA/RNA sequencing Real-time, fast data analysis Scalable formats from small handheld to ultra-high output devices Cost effective.
Slide 41: Thank you
Thank you Oxford Nanopore Technologies, the Wheel icon, AmPORE-TB, ElysION, EPI2ME, Flongle, GridION, MinION, MinKNOW, PromethION, and TraxION are registered trademarks or the subject of trademark applications of Oxford Nanopore Technologies plc in various countries. Information contained herein may
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