SLGC - Earnings call transcript Q1 2022

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Operator

Good day ladies and gentlemen, and thank you for standing by. Welcome to the SomaLogic's First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] At this time, I would now like to turn the conference over to Ms. Bych. Marissa begin. please Ma'am

Marissa Bych

SomaLogic XXXX. results press A the available Today, ended release the March on website. XX, copy company's released you. for financial quarter is Thank of the

to predictions broadcast XXXX. you call Act we assumptions. of These events March future to Provision Private based information and of the excuse hiring, that this Form during reliance Before statements contained statements. in as XX-K me, call database XX, and of of market financial without or growth business, and uncertainties our list relates today, call meaning and implied relating are anticipated the our or place of from those laws, Securities should Securities -- Commission Exchange is performance future May Accordingly, upon could XXXX. differ the events, with Form of by Securities and expectations statements description are conference the federal organization Commission and estimates within section like refer in not for the for current Risk results Factors made content, only I'd contains the statements with or to our please Exchange XX-Q live that pursuant filed this All limitation, these management you risks growth, actuate make in results, to our forward-looking and with various customer This and and XXXX. time-sensitive to the undue opportunity, forward-looking or actual and materially forward-looking the statements. cause involve to begin, risks on material these associated a protein uncertainties including our gross Any base, will that statements margin, securities which Reform of forward-looking diagnostic are Litigation remind statements, Safe performance, Harbor expectations those pipeline,

information, required as Roy with or I Executive or projections Officer. otherwise. Chief disclaims statements, any obligation, financial forward-looking SomaLogic by events, to except or will call revise new update And law, intention over Smythe, any future of or to the because turn that, whether

Roy Smythe

a research to we position at to our to of basic and truly both moment. across biopharma. million, to financial to be building and quarter serve growing year we customers drive growth This continue all reflecting This across and year-over-year of a great nd as have our focused is SomaLogic aspects growth business execution a first XX.X% list of as by generate Good afternoon meaningful all like we harnessing drove quarter as to in We're and sincere we've the call. and our are scientific SomaLogic and relieve the with of contributing several earnings quarter start day $XX first made I'd my extremely life to XXXX expressing success first applying the revenue to have customer-facing proteome. the gratitude advanced here and quarter suffering initiatives. off by every everyone kicks place transformational substantially ability leverage our human who put we off capital our welcome human company as our the for for human prolonged year meaningful year this of value. to continue progress work systematically will power we first for ourselves another We the pleased grow of in blocks record to what company, differentiate at

platform, model absolutely returns. SomaLogic our growing result clear continue and we as are approach, should business our stay team over balance million and and $XXX operations and to business higher a equivalents, To cash, we in environment, important investing allowing current in core a areas scaling cash is that investments. This have our sheet As of focused the market be with in reminder, in healthy short-term different. especially

our SomaScan, our bespoke and includes platform our as database, we market bioinformatics proteomics Our unique proprietary capabilities. technology

any Our measure can and is flexible, approximately times SomaScan X,XXX proteins, proprietary what measure acid foundational which at identify two synthetic nucleic currently to platform other technology, reagents scale. leverages commercial

and measurement as years. measurements These more world's distinct protein near opportunities us commercial several bioinformatics XX in the the includes sophisticated over of to proprietary And to Our grow significantly X.X protein products our and platform database and largest our In points. ability powers and proteomics capabilities Sciences capabilities, growing tools expect and most which bespoke and Tools the other our the over our And million advantage expand a tests impactful and use contribute Life any share faster first-mover including of rapidly billion of from diagnostics than platform decade. number path largest all substantial of proteomics evolutionary data traveled advantages, can diversifying clinical term high identification XX data applications respects, offering, of to longer we a proteomics platform contains the and a built pipelines. over produce tools total than develop and enterprise, our This we Plex times large business a spectrum cases. first-in-class and much revenue. sources growing next substantially across diagnostic addressable our market, to topline large have as estimated only SomaSignal further offer proteomics down

co-exclusive generation of product. The combines infrastructure scale install co-branded platform commercial empower multiomics proteomics and we quarter our of to the start first realize and future based and Our the partnership power proteomics several base next of platform effectively kit develop To with to Illumina, a the sequencing partnership technology led full XXXX. proteomics potential our exciting research. combining of the and to here, Illumina's with diploid announced developments and global genomics co-exclusive enable team's to in a has efforts

or tests, accelerates cost to as announced Organization. study time, a throughput of technology our to part the in to we National million inequity. build largest While quarter, ethnically or proteome important all clinical our risk the problem customers classes large surrogate longitudinal power samples, predicts created global cardiovascular than began we changes biobank. likelihood we and a Imperial leveraging by cancer Prospective risk from Later disease, including spanning XX,XXX samples develop the will to project and a clinical of clinical regardless in an Health, our Multi-Ethnic a This to planned to investments sensitive the work will human for emblematic This in support the population, cancer and measurement be different scientific emerging it commitment European This applications. biobank, solve predict actually and cardiovascular in an accurately Research lifestyle at protein to We'll April, what well but power February, this XX,XXX In Cancer protein as current chip-based EPIC created announced sequencing, both interactions harness SomaLogic's from we test development will drug. engagement of next-generation and the will or with various as also the followed based total with to-date. such over on that. events to needs patients meets next-generation XX two that contribution meet as XXX for for The attack published to impactful proteomics clinical and endpoint new the the our approaches and significant the oncologic the of of Institutes multiple share use. back remained suite world's measurements we World capabilities, in between a of something develop We collaborators, Atherosclerosis including platforms, our developing In our XX health of these sequencing protein variety four-year as committed of tests representing develop of heart Heart, with annotated Lung, validation from needs Agency -- the clinical partnership largest samples. and for More best of as of a it we proteomic data protein help mechanisms Journal platform, several Investigation preferences. have for record study are changes this diverse International of Nutrition extended trials reliably at the landmark sensitivity database This prediction and your products, Cancer, to measurements a from the study and of solutions, solutions our cooperative and of the efforts identify in College our infarction Health clinical and unprecedented such MESA, be biologic SomaScan occurs, analyze a XXX study this diagnostic before consortia arrays the test. These or their team for London, a and the partnerships accurately derived million biobanks. information, outperforms risks product years firmly actually is Institute from recently, myocardial Study track of Using services and investment, Blood on National clearly create of the sponsored development the diagnostics, impactful protein validate of clinical as of ongoing a change was the Medicine, Science XX,XXX we ability describing more requirements repeated risk Translational events is innovative use. successful validates residual approaches customers, paradigm changing. by key for to use

preliminary this our or the this cardiovascular Medicine no tuned currently accompany under As biomarker the available for is known later suggested, in heart predict from LDT, test of partners year. in clinical findings test Translational precision Science manner. This proteomics laboratory a hands developed the SomaSignal editorial this use comments from initiative country. and around the Stay medicine now is for designation paper disease can single for

many in by SomaScan Sciences Looking our We Tools and end our with measurement XXXX. reach reagents Life ahead, Aptamer we the protein of product continue intention to business. our further over invest core to to X,XXX XX,XXX currently of technology expand available offer identification to the proteins

these of reminder, we are world's a developers technology sophisticated inventors the of most the Aptamer and this tools. As

at We XXX modified new Aptamer of constructs reagents of have these are quarter pace the go SomaScan to created menu. more thousands creating them current on constantly and of to each approximately proprietary

identify the we growing can measure and of SomaScan. with are We number proteins

Our our other to Sciences customers team Life continues serve to ways collaborators. better find innovative and

to our results known prior customer or leveraging other and commitment any machine measuring way will and variation storage capabilities, assay, ongoing customer part collection, samples reliability to can a of affect of product samples long therefore in to of identifies that differences new of SomaScan SomaScan launch accompany proteins identifying have and the soon will improve results accuracy our We that and in as we handling, insights. preanalytical proteomics innovation learning

in deployed service with access addition may early to to products select to As we've which open kitted continues extensive expand discussed move customers to our access later side the as with we've We currently deal a modalities customers. were menu. services, core to effectively in our Illumina our by also are assay this complement of developed access which year, intend which our

world of of for end to a to have diagnostic tests are our in the approximately growing create -- pattern their come. the tests. many development year clinicians result We're expect past to this use invested million these and and our hands as capabilities Many and development Over XX program. to test protein and allowed $XX there as tests develop XX are country within additional years, of end us more our this the we many as validate of and impactful has year evaluation around with internal pipeline recognition SomaSignal internally currently the XX and

to the has over moat and accelerate sooner, potential licensing to XX build test these both the substantial market we clinical clinical XXX reach by database business current new our for products, however, In to effort time. a of intend development produce approximately to diagnostics an agreements. and Our tests our

samples developed existing we For provide we customers, leverage products they leverage that to interests. to the have licensing to development and we either agreements, database develop will our or new work and us already for many data diagnostic assets

CLIA-approved, For our for these current tests or dissemination. bring of tester will through we broader LDT processes some regulatory

scientific in well leaders doing in and most as space. the identifying the proteins from extensive proteomics we data measuring as acquired are analyzing so, background interpreting For the and world's

as we because research rather this the and accelerating such today than own contributions, I the medicine in be in We human contributions will successfully customers. than proud And publication grow could well to are new these finally, last studies support existing science have more just team with our commercial are beyond that citations. of extend reach translation powered published these method adoption not our of of to more customers XXX publication efforts. continue these and manuscripts in proteomics, our proteomics recent alone. the quarter landmark more Many than and is XX of

As our doubling a we year reminder, our to to number XXX over platform group differentiate XX growth size with of clearly against we supported and than financial end and XXXX. diversify on and In drivers customers ended XXXX the our base. Shaun effectively the the of this revenue Shaun? year to longer recent team our now commercial We've by members continue intention continue making with opportunities roughly grow balancing our progress with to are performance that and goals to conclusion, on term outlook. measurable organizational I'd a levels. near-term significant our over like call more review business turn

Shaun Blakeman

Thanks Roy.

are million prior the revenue of quarter for that pleased report million, period increase to the year. XXXX from of $XX.X first We XX.X% $XX the was in same

partners applications executing share. The bottom-line result and that our of Gross expand as customer and to proteins our quarter we as XXXX from No as to innovative margin and us the and diversify see that continues also new and in measure as quarter to which continue academia, on many customer are and first fourth the XXXX. any team to one compared as base scale. continue very XX.X% to growing can across first in prior they as diversification for customer pharma, poised SomaLogic, our create decrease of expected, the one the year XX.X% win was of core. or grow We quarter many measurement growth XX.X% also we our biotech, to is is our commercial with positioning and reliance driving strong

reminder, core time. service plus business this business a is mid-XXs a at gross percent As our margin

quarter is quarter market. of a the most the million quarter $XX.X was the first comprehensive million our first XXXX Adjusted build SomaLogic compared to become of in XXXX. to technology the R&D margin in I in primarily to modest and compared we company this as impacts capacity million endeavor the Total This with million XXXX. an Our $XX.X strong sample the support the and EBITDA EPIC support adjustments XXXX decline was XXXX. up out proteomics compared $XX.X for $XX.X first our XXXX quarter line much ASPs recover increase first year-over-year the in million, expectations EBITDA accounting of of quarters. quarter, from to loss of of continue the ramp XXX% loss margin timing the leverage the remain expenses million were and our cost of gross the in in our in the due valuation and of and to first to QX. a to of cash future this of adjusted of adjustments XXXX, the year, million year related quarter on million warrant which partnerships our potential ended will which sheet. reconciliation the studies, spin with again, out gross investments can the expect as of the as on between opportunity loss the population-based MESA start and COGS, indicated. coming this Outside the $XX.X we see reconciliation non-cash samples afternoon in SEC $X.X investments. to normalize XXXX Please of release increase guidance larger EBITDA. over of margins quarter file balance such affect short-term first as net aligned being were and for expenses and for bulk non-GAAP quarter for adjusted The first with for quarter cash, previously a expenses in expenses liabilities we with earn with to the We $XX.X volumes were the and a equivalents, our our of investment press Sales, first of and of of administrative in general, million quarter operating GAAP $XXX.X and the course $X.X

position mentioned, unique to our capacity our Roy and substantial As a us cash flexibility and gives execute strategy.

we Some you fulfilling company want with that the comprehensive executing thesis the to cash I would give to regarding comments are the in on become world. flow are SomaLogic most proteomics

responsibly strategy positive have aim this runway continue We achieving and accompany flow. investments and free to cash to execute with our thoughtfully, enough will to

in assessing strategic apps of M&A financial our consider any bar that terms contribution. both activity, and high potential Regarding we of the is in quality

Turning to Roy to XXXX turn back I million representing XX% to $XX.X of this would to revenue $XXX we our XXXX growth our XXXX for revenue, of At closing the reaffirming over million. guidance formal to XX% point, million in are outlook, $XXX like call comments. of

Roy Smythe

Thanks Shaun.

model the that power that's of of know proteins, this the future from prevent doing measurement before better In Over of ongoing base, our the predict, using our things diagnostics derived course sharing supporting and only to of expansion, our year biology experience the doing This the to licensing industry. a Plex in the not to powerful proteomics the new and continual better SomaLogic, applications leading of diversification so diagnostics, the product, evolving completion but field of regarding therapeutics of in to genomics. We of additions variety information animal our XX,XXX rapidly needed ahead, ways. our applications record or lives deals ourselves the on technical manage, of pride team, of from a commercial our revenue and insights on From clinical continue content innovation measurement the human of and of from specifications. identification identification the tests, use SomaSignal edge including we intend impact to in has initiatives human happened protein gained reagents co-development places create leading is development and for development progress of of evolution customer the and track of that increasingly disease. the understanding new growth and development so, We to decades

applications it time, in will value insights, depth derived greatly from human provides the of the exceed that real-time of the proteome, those produce genome. on based However, the and breadth

acid any building capabilities, to database, Life at for diagnostics proteomics we're the operator these We're Sciences do so. offer informatics I us far I'll SomaLogic, clinical and nucleic reagents over to thank exceeding approach, and for want development it more now beginning and us providing time. today than we're measurements solutions for all synthetic joining traditional growing to our you just really including to do antibodies. our just Q&A Tools Operator? turn trajectory our and things, Our

Operator

Brandon [Operator from line first of or Jefferies. from the comes Our question Instructions] comment Couillard

open. is line Your

Brandon Couillard

expected. afternoon. end build kind expanded Hey, progressing as thanks. how the headcount the you you're and Can there an the team the us out at getting mentioned ramp you quarter the Roy, that of the first give of is productivity update Good of on about team? commercial

Roy Smythe

Yes, news well, the of managed Logic. resignation. growth great to the to to team, the is end And contingent work team in commercial that have the achieve more to of team we're Soma the right our on grow XXXX. really people words, size pace we the this general, the great in we've of at We've than period in described, double we in of those that as the during the XXXX, doubled and the company at on actually company other want

achieve first that and of on size results quarter commercial regards right and retention. in to team track we're with that So, hiring the doubling of to are that commensurate

of is that from great may team, similar we training time or these on most fortunate the in or and for from. as for over year jobs time in to last individuals come not don't recruitment of these are success weeks, productivity the the proteomics may hire individuals, you as get many to and and varies we genomics. we course But it depending been those of that jobs individuals, it the and months eventually. far we've ramp and, order individuals, grow And be attract where on may of change a few as at very during from because And year. training depleted we certainly number in deal experiencing to to to directly expect a a the know, people pool the the able the As up the the

Brandon Couillard

Okay. Thanks.

samples. or work the mentioned confidence will How standardized, you work? should variations test a in think revenue think we product identify just Should samples? service customer and I standardized about as improve a product of kind or that we help that to launching way exactly preanalytical about and think -- And the new to driver? quality,

Roy Smythe

your to on Williams, our comments the in to to make for us, of future generate or the general sample talk of deal this this on revenue, or the the accoutrements customers a importance revenue genomics and about to products general, our products Well, and will perhaps types don't little encourage be the they conjunction Steve product the a stickiness couple tend talk your time. with your Dr. and ask to stay to with of you In tool about collaborators. In and us collaborators? of with data proteomics other I'll our in you be bit related of to words, utility customers drivers comment who's on about platform. of these -- customers Officer on tools drug Steve both that bit a either create call insights Chief this insights most people tend the used a tend come Certainly give I'll would to over targets to are Steve, primary that samples on Medical platform. great for that or pathways

Stephen Williams

Yes, this really is important. fundamentally

and XX and turned lung we'd arises out that intracellular done products on samples ever I when it leave And leak their gets is Pittsburgh. or and the the activated. the you when blood of the University effect ago, cancer bench, their tissue, difference out was proteins, years get start SomaLogic a cells really between fact, when activated, New all platelets experiment because complement in living it joined to In was York the that had University we biggest first the the it in

ways develop you And have proteins, impact then, issues, a of tool what to the issues. measurement abused. those done pre-analytic those the of blood we've precise for been the if that each have measuring is see So, you'll models individual might since for

is, effectively as each course, really are the know for you your samples. a variability says But well of matter analyze know sample the think when record comes, what what tell, you detailed. And to -- because like record if then the I sample. criminal you manage it of models, not these criminal a effect doesn't pre-analytic often when collection can you if you record your So,

use you You or are immune choose to which to those could can eliminate effects. the proteins worst samples,

can look can you you're different centers trial, And You and the for the those can you at the are at which how a running if multicenter adjust factors which in centers look clinical are worst. best, results.

So, I your think these are a statistical power to really important, lot results. they of add and interpretability

Roy Smythe

in to Thank Brandon Stephen. add alongside of give SomaScan to customers would activated, and first I mentioned their planned about what give development biologic that earlier, data terms many what drug present as our this information -- I like, that quality, sample, targets you, of may we both things sample in also so be but again the are to forth. is pathways collaborators more have and place a number products in

these our to to measurement So data we're and support alongside products capabilities. customers creating superior collaborators dedicated our

Brandon Couillard

that's And the the of elaborate on population the we're adjustments. helpful. quarter, on as running you little in Shaun The the quantify to just quarter a effect accounting the well Okay, as able more gross are cost margin samples then that one for

Roy Smythe

go Shaun, please ahead.

Shaun Blakeman

customers. to like, going the are it's And predictable was quarter, samples more right come always really experience, just XXX% in. and process how not actually trying EPIC around some the didn't customer seamless we this we're it and a to our provide So, of for of samples both our listen partners MESA

again, So, in quarter. grand of on have just in revenue, are it's one in we those big not does a the modest through did our some margins scheme our COGS, but up, And it number, coming ramp the QX. affect

I said, that saw we in as anything see on isn't potentially It the QX. the that volumes absolutely those had we're our of seeing could affected quarters So, in core in I some ASPs in increased we what that or being our by base. leverage up customer structure would anticipate actually make

is but the turning too in in the is, inventory. requiring that's -- growing, studies reality and business faster expenses, faster Regarding get adjustments, the to but as is variance up recognize its to Brandon, we're had EPIC just ramp our And than for cost such that we right, not terms a periods. to some us previous accounting and MESA technical, over of

it in just a of we that hit in so And way didn't sort anticipate. us QX fully

are will normalize expect unique we a had little to this But Sometimes in that throughout little year a predict. to was bit the bit difficult the those again, adjustments quarter. take

Brandon Couillard

Got you. Thank you.

Operator

Thank you.

Our next of comes Brennan from question from comment line Dan Cowen. or the

open. Your line is

Daniel Brennan

revenue ramp kind in quarter light of wondering, Great, that global market you thank lot speak you. then on chain, There's out just and that through that's year? how the Thanks the if play that? there. of to first interest one, the assumed quarter will year first Any and a still the kind how out in of manage of you of guys dislocations Maybe a rates. you first for Like impact in and throughout guide? the could any you obviously, thoughts inflation, supply there's taking in questions. full the I'm worked COVID can saw lot undo pacing the noise in with

Roy Smythe

Sure.

is our make disruptions great would we're -- I year and that surprised of comment the by the around job not did over first this. planning operations, supply a half. a chain last for managers the certainly The leadership we And world and thankfully,

for us quarters inventory so that that are area the got supply it. last door chain our business. there few had are has potentially and the over concerns one into going service the just the would been impacted say of ahead so we some forth, has we when I where samples issue unpredictability And about The come of items to

that they quarter, next that supply issue. because not of towards that customers into quarter we're while that a some not to of disruption, experiencing in, into because are or are, that biopharma that that come quarter, right during of the one come come have company, blood of of beginning from samples can our chain large the did in operating end number this So, don't necessarily the the samples internally and supposed investigator challenges we any have

during that confident So, seen will sample revenue And quite and year. overall is impact year on course even that of our have by of out. have not continue will delivery. We it we quarters unpredictability feel the that topline some something that that may of an the between the the will end happen

Daniel Brennan

Just we and I think XXs the for point in call comments? it's you kind first great XX% out, versus know given quarter? of in guiding I related guide, light any anything the maybe you of as play is to the pace, full to low but the think which about year, out, XX% difficult, it comps like volatility, particularly the way And the

Roy Smythe

like would Shaun take one? to you that

Shaun Blakeman

I'm couldn't sure. the I I'd and hear -- of honest, I about Dan. look, guide talking comps? thought you're the question, end your the not very be

Roy Smythe

Yes.

Daniel Brennan

was chain whether that. about about you was sorry feel back about, anything out year, guys the anything, -- revenue it just the to full half, just issues, guys great the point just this? given -- QX it out really Yes, to on supply That point acceleration and be or you want

Shaun Blakeman

there it's to customer able of an that -- think not you certainly from unpredictability, samples our Roy a more to issues little overcome partner supply going again, when So, side. here that just sometimes reiterate situation right else has even are like really everyone that the said, and chain little see like those in it's we world in, issue, again, been Roy come about I constraints. And pockets bit and up by would there, mean, I we've I been now, the summed and while the

to end might it's thing a just the the of more going like that I I takeaway to like, is going had is the Roy, even people to I -- bit team. back here, in is what expounding well right, that add XX, little non-expectations forward, would XXXX, think the we -- around put only I want this commercial

Roy Smythe

That's right.

Shaun Blakeman

And we started team to we're -- $XXX this company put scaling going scaled we just be million million, $XX it and up and up that over put -- over to continue in we to year. XXXX scale

as were we is growth think, half start going members, for our see I latter again, well, be XXXX, because do in I that QX. suggesting the future right, impactfully in added think sales see efficiency, aren't to guide, guide to the considering, that team our not which are think and of that in of guide that hitting could lot potential you I our stride the So, most upside really way things a I'm effects, that quarters of -- there's QX you're our but these accelerants bodes a

I again, of So, really into where guidance as QX. but think latter into plays the out we going coming to that think I start impacts that it, you're that part QX, all seeing our get QX in,

Roy Smythe

that little an we comments on emphasis salesforce the generated bit quick Shaun the on was me, I of this revenue, And remember important a just that to generated had -- for comps something Dan, analysts consideration Two mentioned. of third year last think put closest to do it's our and that we point. about that Yes. for a extent. investors

regards have year, to second have competence could in there that is quarter again, samples year. the there. our business any delivery is last customers. the huge our always delayed anticipated we'll of for but the example, tweak months, on gets spread somewhat The issues of is that of couple So, if supply through the out evenly good delivery We anticipated the really across on unpredictability, team our don't impact anticipated have sample quarter-to-quarter And our chain grow the a guidance. of be is the is very information by in we a based it to a certainly, as deal, big in that distributed on pipeline this sort And we healthy. ability commercial our we ramp based some

Daniel Brennan

then on year in early terms know, the prepared And ability be to we how XX days of remarks very the efforts? some and find to on it. or side, maybe licensing diagnostics, importantly about, we think should time we're and looking expecting see on how know executive XX the bringing -- in the think now here this targets, it's continue on this licensing to spent protein what's more we your the a I action standing tests of but tests of just what from type in I kind with about of or early own the months on do licensing some Got do one more traction whether diagnostics, back,

Roy Smythe

come any business us opportunities co-development. over to news developments had a across the Well, is, of the number good licensing year, the and last both transom without we've for

right I this out us development those on business. building in our diagnostics, which of of business capabilities a So business side without a And sign. those again, now. development active serious of again, there good conversations actually segment certainly are number really is doing the take are is that We

that, our believe business growth turn course a we're conversations because our for the course investments us. we'll tools look of sciences of said during talking that's year. the significant But As year -- consummated now going of number the this those business, right and to a into and opportunity bulk we've forward some life are deals, I real into that the do repeatedly, of about contracts during those and will near-term

Operator

you. Thank

from Our Canaccord. the Kyle or from question comes next of line comment Mikson

line Your open. is

Kyle Mikson

driver that the out, quarter just sample guys Great. guess two supply guess, mainly it the as I to question. chain the questions. to Roy line. you said of referenced, for growth the Thanks. Thanks, new number? customer did second was I top quantify start last customers specific you the wanted kind a on the on And I push you question strong relates the you how the about of Could ask didn't to results new You this many in but mention add? just

Roy Smythe

quarter. new that moved the customers the We have of into number haven't quarter openly samples the discussed or or of of next tabulated out this number

going into that's that that's But occur has as in this next discussed -- that. our our that commensurate quarter haven't previous to And of Our new the have I of moved grown it's number number over year quarter we -- the just to going of likely certainly, the mentioned year. something, course samples again, amounts. earlier customers with variable

Kyle Mikson

your Okay. That's different -- this margin. been something revisit fair. soft It reasons, gross common I just want Thanks And obviously. for is quarter for for peers mean, I the that's among pretty that. to

deal, again. quarter characterize forward, app, I again, quarter and I you And difficult, kind of like the of when improvement want happen of But trying in margin ramp fourth expected the the March? in explanation there's be like, they And accounting cadence this proteomics of gradual the just the reported MESA if to my kind and levels, EPIC weren't would population if Your the timing late going Shaun? me. I'm quarter, understand, hate those you makes results to third another kind like likely to fourth but dynamics not why the of gross mid-tiers to be sense can return to

Roy Smythe

very our we invest is world, these Shaun, standard deals. about comments about is in the something comments, a that this enviable margin? the leads and communicated would important But overarching goals also Kyle that it us. But The future about own important, over only their to course They're of general turn these make is like studies any during year because until, reagents. to support. of then around we of We I'll that, to to the important is others market a this contract and I'll measurement couple we other biobanks a to to contract for there will continue They're the the think may have the comments comment using to to timing clearly the until sure, here in to and be know Shaun. for don't we've important that of business consummated, to not are proteomics. those of they world helps the the those oftentimes around a a biobanks that or our creating data. access discussion population-based

Shaun Blakeman

Yes.

significant I So to MESA us. it, predictability regarding and EPIC point mainly for pretty is sample go that, of the back I would the mean, volume

come predictability of would the uncertain. little in so a And was windows

the in indicative unique And structural cost issues again, that had. certainly it's seeing Again, effect that on of I in you'll QX not of it our so And think that permanent in what or I think come you're any it's again, terms at structure ASPs. see -- that back.

not So last we will issue was study signal QX is, I've QX margin. again little know always of a the of per of the said, a this But core guidance year And business said, Roy an se. at specifically an unusual them. in in bit population year is like we like about the those certainly end in as investment its

a is And mid-XXs right see we've hit a what's to the COGS, know might we to until so again, Our not predict I margins structured, not -- normalize. way right? or you'll Sometimes still a gotten It's see core XX% and business in signed business do negotiations type possible happen. but service and we R&D, any large it they they're anticipate, it's Kyle, do we contract and into hit is might If right business come now. they now. always going that plus deals sometimes

Roy Smythe

important as I add this that, is would an consideration well.

weeks. SomaLogic or there been we sectors to mentioned our large You that, other others, our discussions just is that The have about with time. over in levers number great margins only margins of have that a sector news actuate about companies over improve begun have to the few related last we

a that on progress over and which discussed, have more to deciding, from others. R&D the for we've cost project been year approaches working of likely than the As well we made on We've out work standpoint assay. on are

We the end of are working the box-up on our front engineering assay. project to

without online the royalties. the Illumina come deal from also those in on come we tests are margins as once be business stress in also And our diagnostic for well. considerably increasingly future, the We margins revenues -- the that with comes those obviously should better diagnostics

levers to So, we and a just beginning products all of of fair are there. runway our of across services and pull margins front improved in there's bit the for us

Kyle Mikson

guys. Thanks, Great.

off one -- I'll Before just more. ask head I

market context? characterize broader kind over I'm increasing what been drivers penetration year-over-year. of curious, execution you are as just you the curious So growth in specific Just market this growth deeper like expands? great, growth think though as XX% this the share has the or would

Roy Smythe

in with big opportunities growth It's us tool is One both. for front really really two We of side. sciences It's customers. life see existing revenue really sales same-store both. obviously, the in

run for longer-term We XX,XXX to online come or are pilot. deals really to In and have ink just XXXX. is online a new customers some business, you came about samples ask only larger to those of beginning it's sample rare in that a usually customer discussions from this

that years So customer significant a had. customer growth because of there's next new same-store sales new just the have over course, without that in is the There of growth. us, for can't significant. opportunity of And you couple we've

both opportunities are real these So for us.

at into have We customer's. and tapped continue opportunities be down on. suggested some a our bearing of even we we'll mentioned are remotely with we sales, significant would even are not this had at pace I which year last as that customer There earlier, experiencing longer-term larger growth then same-store new out And year.

Kyle Mikson

Perfect. the Thanks, guys. time. Appreciate

Roy Smythe

Thanks, Kyle.

Operator

Thank you.

comes Our Dan Stifel. the Arias from of comment from next question line or

Your line open. is

Dan Arias

towards and you that the surrogate question. got risk something then CBD highlighted Good thought are you recently, a need timing a then assay you'd like And the Thanks what's published and pharma how that do about path for Roy to within as with around thinking on usage the that afternoon, biomarker trial work? what the FDA? for guys. there

Roy Smythe

got a has this test And this diagnostic Obviously, docket similar really on exciting test Well, well this multiple about relatively soon. is as to use this that coming a other like really that and shocking it that publications had excited publication. us capability. cases. can our wasn't we're do out We've things, it number

more So physician quantifiable that tell spent that a and better, traditional working cardiovascular patient his a much, of a events no-no might individuals in that exciting. not as someone efficient, physician tools context this be career more risk the otherwise has as disease health able XX% and clinician encounter factors. and in know former or many with has patient effective, very as life acute risk a to like toward is in occur a identifiable be who as more that can professional to make tool obviously, care equitable, We

first will the great is this a have diagnostic that over time. at clinical level, benefit So

potentially that and there, way clinical trials the on management. has in a health of population number uses However, in

this earlier be potential this a Medicare in licensing not otherwise know we've the some cardiovascular CLIA it more event test population plan I So involved risk, happens management and their mentioned co-development until you're you and great might to conversations, are Advantage an a because but of again, would to and we to that population, of use at customers, need in from in identified at who in if year your identified a bring with risk look health have fashion. also those be LTD only actual not standpoint,

like XX% then lines severity as number disease for that of clinical of that could are We trial exclusion the should in and obviously trials to has those has events determine health have way tests important to they for places clinical trials inclusion so exact know of the clinical reducing in not trial discussions patients the whether And know been or can this enter happen. trial as currently, for wait not a question be you those this where a a population the a for used. effective, that drug way and that like if of question condition the tests if about stratification then cardiovascular many management. drug clinical is have outset. lastly, drug, or at don't evaluating the either to because risk you're the won't And trials, again, along entered their that Some be worked allow

to or to reduce as new strokes like it cardiovascular by therapeutic, use drugs your endpoints selling great way not a point antihypertensive, reducing drug have cases measurement, overall where a also actually a well, anti-lipid lipids and attacks even would occur an if so blood because obviously the if to that be your is pressure those test effective. You would those this. for know risk real primary an tons in they for drug of a for risk still wait the is And at reduce heart to goal look

as FDA As this varies clinical use it far test using you're depending it. the in requirements trials a how like on to

test test. like be as an used can RUO a So this

Dr. of test test runs But Williams additional our Steve, not regulatory. looking is are trial on working on with you're quality up Dr. at on a back depending regulatory and path and comments provide like questions. Steve looking requirements only there we currently program. the also on the are call, potentially these you're for our, heads If phase FDA data FDA the prospectively if some development you're but clinical about engaged at could Williams data, which this? you

Stephen Williams

Yes.

buy about ran think change before within and a And want public where specifically then we We session the qualification. match presented for actually prognostic program biomarker the a universality We FNIH. Forum workshop this to to at publication. exactly that the again the you to attended later the designed presenting it performance, also way a I framework month. we uses of discussed evaluates Cardiovascular drug workshop test the the we're this by Clinical to asked and this development FDA program. designed results it at sponsored FDA, them those Trialist the in FNIH the sensitivity in at We've and by that FDA

interacting assessment test a would you their breakthrough as said been haven't enable successful, all of accelerated and officially development we've as non-cardiovascular formally safety. for FDA the like approval Roy in surrogate -- we've And this it we aligned with that's the point of tell so yet, ultimately, of the for do what use drugs drug drugs with safety we cardiovascular announced cardiovascular and the end the for a along, if in we'll -- FDA. can But clearly, I been very with requirements

Dan Arias

the expansion think had ability the you to the historically. -- of comments, had team that those how Asia just subscale given where on regions Appreciate just been Okay. follow-up, difference Roy, as guys. you a spend I a was like can maybe it a minute one how seemed make just commercial

love that just expectations would of I thought updated hear this sort on for year? geography to So an

Roy Smythe

Sure.

of we -- no in previously beginning At as in one APAC. year, last individual we've stated. had we EMEA and the So one

APAC We individuals have have of in with street regions a us to we regional working hired the hired couple additional leaders both Asia. in recruit now regional a feet in number of Asia, those are and leaders on and

good made. has So, been progress

was Our both lead the and could we've now successful in APAC, goal hiring their those EMEA those out and in to efforts are that senior they folks been and regions in building find some senior and teams. individuals,

the confident continue quite of will year during that year. this build-outs the we're So, course

Dan Arias

talked you being the on when I comment. Last $XX treat recognized Shaun, of that had on million just Illumina, by or anything new last was most thinking payment I from you. had products XXXX as were commercialized how mentioned of that think could, around if Thank just that one, thought your to Okay. Roy

past of latter purpose said just anything of was think year, I looking for which than you modeling, more for the half have current nominal? should sorry the XXXX the but So XXXX

Shaun Blakeman

Yes.

will but to be it's and way reagents. of we complex, recognized, the the now based be So, hit to of there's answer although the because going will lot still it's on have provision be that, management a will it and how then it in could that adjusted, judgment this progress actual

words, recognized which the will of bulk will be but commercial kit. So be they to will we developing in other now product, providing actual fact, as obviously course provide of in over point again, right we be as an reagents that it the Illumina, reagents the are

thinking of a right it now, have year lot actually but about you're of exact product. expect less would in, are reagents kind rough very that be a but to when don't commercialize we So, will would I amount you're post definitely answer we come bulk commercialization, nominal talking year, the as selling this nominal think of the amounts way I XXXX. it into to and few We'll have commercial the XXXX million -- be each until yes, in than probably a

Dan Arias

Yes.

you. Very Thank Okay. good.

Shaun Blakeman

explicit report And again, in in always number will nothing to QX. about revenue be our there's any I Illumina and

Dan Arias

explicit little talking Illumina in guide for an you're Is year bit? amount a there since this the about

Shaun Blakeman

XXX No. to excludes The XXX any Illumina.

Dan Arias

Okay.

Operator

queue in back comments. any to time. at Thank questions you. I'd conference for Mr. CEO Smythe, over I'm Roy like the closing turn showing the no this additional to

Roy Smythe

forward at seeing Jefferies care. conference I venues you, well all forward. your as Steve at also in in Dr. seeing other like us I Take mean assistance person thank for the today. and for and hopefully some moving Marissa to again, you SomaLogic, look thank and June, say you, when Well, Williams We upcoming for increasingly Shaun certainly you, Blakeman, of today. thank of well, to And as operator, you I'd Gilmartin as joining from

Operator

the thank for participating today's Ladies program. concludes you in This and gentlemen, conference.

You wonderful may day. now a have Everyone, disconnect.

SomaLogic (SLGCW) 13 May 222022 Q1 Earnings call transcript