Fulgent Genetics $FLGT 3Q21 Earnings🚀
- Rev $228m +124%🚀 | Core $40m +292% 🚀⭐️
- GP $184m +144%🚀 margin 81% ⭐️ +674bps ✅
- Adj EBITDA $167m +148% 🚀 margin 73% ⭐️ +714bps ✅
- EBIT $159m +150% 🚀 margin 70% ⭐️ +745bps ✅
- Net Income $126m +144% 🚀 margin 55% ⭐️ +458bps✅
- Rev $228m +124%🚀 | Core $40m +292% 🚀⭐️
- GP $184m +144%🚀 margin 81% ⭐️ +674bps ✅
- Adj EBITDA $167m +148% 🚀 margin 73% ⭐️ +714bps ✅
- EBIT $159m +150% 🚀 margin 70% ⭐️ +745bps ✅
- Net Income $126m +144% 🚀 margin 55% ⭐️ +458bps✅
- OCF $152m margin 67% ⭐️
Business Metrics
- Billable Tests 2.2m >2X 🚀 +38% QoQ ↗️
- Average COGS / Test ~$20 ↘️ (vs $23 in 2Q21) 💪🏻
Business Metrics
- Billable Tests 2.2m >2X 🚀 +38% QoQ ↗️
- Average COGS / Test ~$20 ↘️ (vs $23 in 2Q21) 💪🏻
1 | Continues to benefit massively from COVID near-term
“While our COVID-19 testing solutions continue to drive strong cash generation…could have unpredictability…will turn passively as the therapeutic treatment may become available in the near future.”
“While our COVID-19 testing solutions continue to drive strong cash generation…could have unpredictability…will turn passively as the therapeutic treatment may become available in the near future.”
2 | Remained focused on the core business armed with capital and their superior technology platform
“we are optimistic about our post COVID strategy and opportunity we have built to try sustainable growth in the years ahead, armed with our capital and the technology platform.”
“we are optimistic about our post COVID strategy and opportunity we have built to try sustainable growth in the years ahead, armed with our capital and the technology platform.”
3 | Core still Early Stage
“…acknowledge…vast majority of this increase will be coming from COVID-related testing…remain confident…and believe we're at the very early stage of ramping on our numerous opportunities as we are focused on our core business.”
“…acknowledge…vast majority of this increase will be coming from COVID-related testing…remain confident…and believe we're at the very early stage of ramping on our numerous opportunities as we are focused on our core business.”
4| Operating Leverage ➡️ Profitability & Cash Flows
“From a profitability standpoint, we continue to expect to show ongoing leverage in our business, which drops to the bottom line and drives cash flow generation.”
“From a profitability standpoint, we continue to expect to show ongoing leverage in our business, which drops to the bottom line and drives cash flow generation.”
5| Acquisitions
“…for M&A, what we're doing is we're using the capital are being very conscious about which assets and which companies to evaluate and we're doing both.”
“…for M&A, what we're doing is we're using the capital are being very conscious about which assets and which companies to evaluate and we're doing both.”
6 | Supported by lots of capital
“…using the massive amount of capital that we continue to write, generate additional cash flow and we're deploying that from an M&A perspective.”
“…using the massive amount of capital that we continue to write, generate additional cash flow and we're deploying that from an M&A perspective.”
7 | Refer to earlier 2Q21 thread for more information as well 👇🏻
https://twitter.com/eugeneng_vcap/status/1424891163803226114
Final Takeaways on Fulgent Genetics $FLGT:
➡️ Invested prior to COVID. COVID demonstrated the strength of its business model and its ability to scale combined with profitability.
➡️ $FLGT is one of the rare extremely profitable genetic testing companies.
➡️ Invested prior to COVID. COVID demonstrated the strength of its business model and its ability to scale combined with profitability.
➡️ $FLGT is one of the rare extremely profitable genetic testing companies.
➡️ $FLGT will continue to benefit from COVID in the near-term, though eventually it could wear off. Allowing it to build capital to drive expansion in its core business even faster.
➡️ Core thesis of it’s superior edge differentiates it from other genetic screening platforms.
➡️ Core thesis of it’s superior edge differentiates it from other genetic screening platforms.
➡️ Combined with optionality to expand to other verticals (liquid biopsies), geographical expansion (into China), strong mgmt, it has a long runway of growth.
Thesis unchanged for a company whose market cap is $2.3b, cash $878m & core biz growing rapidly $120m annualised +292%.
Thesis unchanged for a company whose market cap is $2.3b, cash $878m & core biz growing rapidly $120m annualised +292%.
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