SLGC - Earnings call 3 2023

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Operator

Good afternoon, and welcome to SomaLogic's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes. I would now like to call over to Noah Corin with Gilmartin Group Investor Relations for introductory comments.

Noah Corin

Thank you. Today, SomaLogic released financial results for the quarter ended September 30, 2023. press available the website. the of copy release on is company's A

meaning laws, we remind the Litigation during Act forward-looking the to I'd safe this of federal that within Before the like Reform make harbor you provisions begin, Private pursuant are which made management of will call XXXX. of to securities Securities statements

gross those are Any growth, margin relating including, future assumptions. events, our current of expectations or expectations and statements predictions future statements, opportunity, market contained in our forward-looking and and or our to financial performance, various in customer for content protein this forward-looking growth organization, database performance upon call and pipeline, are based without All base, diagnostic that limitation, relate estimates to hiring statements. results

could not material results statements. reliance anticipated or involve risks actual to differ statements. that forward-looking place should these uncertainties and Accordingly, from cause materially statements you undue implied those events or these These on by

description and XX-Q and list the Securities of Form latest a please uncertainties our Risk filed Factors the with to Commission. business, our and and XX-K the refer For with section associated of Exchange risks

discussion to measures, adjusted presented for and non-GAAP This include addition, including the should loss is will purposes presented for non-GAAP in considered financial measure only informational net a of substitute as In SEC this with EBITDA. adjusted press supplemental our and today's be between references not afternoon file GAAP information financial a on accordance with see EBITDA. GAAP. release for reconciliation Please non-GAAP

X, November accurate time-sensitive the contains broadcast of XXXX. today, call and is as This information live

projections new forward-looking or as events or otherwise. information, revise statements, required whether SomaLogic any by law, obligation, of intention to except disclaims or future because update or financial any

Officer. now with turn over Executive Adam I that, will Taich, Interim Chief the to And call

Adam Taich

increased and our I'm marked operational Conference you and another for progress commercial Thanks, by consistent on XXXX to afternoon, Noah. pleased organization. the SomaLogic's quarter Third Call. Quarter initiatives Good joining rigor report throughout thank Earnings solid

Despite growth of third we macroeconomic the that quarter XX% reflecting year-over-year excluding a year. when licensing of in environment, revenue revenue challenging last quarter received achieved nonrecurring third $XX million, we

we range from full million million. are $XX million revenue to XXXX million prior the to $XX raising progress, our $XX of Given $XX year expectations our to

broad turning in detail, technologies. establishes our insights recent a Standard announcement. BioTools, like leading combine Before review to leading research provider microfluidic scale strategic of market following to I'd while and options, expediting to path merger early all-stock platform SomaLogic's power results and across cytometry and intention in a we a our a The our more October, announced merger flow highlight multi-omic growing of merger technologies mass In of an breakeven. comprehensive to cash with to

be path expands the combined close merger believe will XXXX. of our cross-selling complementary probability, first It opportunities We business quarter offerings. to reach and accelerate to the in continue we to meaningfully our and commercial with positioned to expect the

We the expect which background file be will regarding additional proxy details and shortly, provide transaction. our on to

remain the new Now are with results, commercial validate of retention customers. services we acquisition the of focus pipelines SomaScan Customer starting shifting core to finding offering. quarter and our to our therapeutic and efforts, our our third ways

early GLP-X use have in to clinical increased recent SomaScan candidates. of efficacy agonists in the example, interest identify across For rise the of trial indications

changes of meaningful the fat result a Care, cardiopulmonary fitness fat, tolerance, by SomaScan Diabetes paper In and a investigators promises This SomaScan loss of investigators resources in on efficacy, intervention read of time-consuming liver the represents able glucose one cardiovascular studies platform. early published promising the body longitudinal to risk, the and platform. were pharma by recent an many to attaining can candidates before By undertaken. therapeutic most allocate weight identify utilizing expensive are as just

our authorized and on In this to the SomaScan. expansion been Pacific, which samples lab utilize is third can is those The in expand We've site quarter, services in Asia in primary ways our customers goal strategy Boulder, especially adopt world-class the of strategy. execute to continued into focused in Colorado. Europe to as difficult and on regions it send for often customers more we

establish and we for delivery we higher while generate sample sites authorized As volumes, more globally. to revenue reducing predictable and sample expect offer more sites times our higher-margin researchers

we committed In and base to that distinct March, shared established sites, we by year-end. doubling X we that authorized had

remain up sites we track As of our running, and today, meet to on we have XX and commitment.

progress is with the distributed partnership business quarter, third on also our solution. The effort grow a with co-branded In NGS-based to Illumina. delivering Turning distributed partnership focused Illumina. to our through we advanced co-exclusive, our

of on Our QX with early assay customer of and product XXXX. base combine customers access the we and and work force in to to Illumina's deliver proteomics joint expect market-leading for wide remains depth commercial a This range installed track, of researchers insights segments. will SomaScan across continue to the breadth differentiated

in about instrumentation level Society customers meeting D.C. had to in insights their proteomic is leverage While of number the energy deeper Genetics to to able to who customers gain being Illumina high. Washington, this I really effort and interest American the are week, their Human excited attending is prospective from opportunity palpable, of research. a the speak The around last of NGS

measurements of now offering commercial high-plex Finally, total We provides launch more SomaScan The ability assay. measure of market. half incredibly than single the on is platform human to in proteome have available new the the excited the largest to the we are and the assay. protein XX,XXX a announce XXK proteomics

researchers broader expected biomarkers this to our novel XXK for translational the of XX% drug more biological targets. discovery having discoveries. SomaScan make human targets SomaScan the provided of view is to technology, medicine. up opportunities drug and in gives XK known of all Proteins make Following offering, and And core our a edge unique prior than platform give by a considerable the customers more the proteome expanded platform

XX% coefficient This platforms. with which often critical improves studies with low is variation, the reproducibility of previous is in the version's XX% antibody-based of measure accuracy samples, retains the which fewer, limited volumes. The aptamer-based population sample standard platform smaller in to versus

discovery this complete know we to platform of and of of in substantially the our benefit of therapeutics that benefit space, a innovators for driving disruptive forward the look view adoption across researchers early As We customer the this more proteome. from development base.

shareholder the unlock with of part together. as of Now objectives. that our before business we I the Officer, turn look to call to future we Interim that We like merger Financial Eliot towards of remain strong reiterate Chief progress our are over the our company Standard to Lurier, making our I'd excited BioTools. realization forward combined And and value can the close for we

With to Chief Lurier, our I'll over review turn call our the financials. that, Interim to Eliot Financial Officer,

Eliot Lurier

million Revenue Thank quarter GAAP basis. as September to for in months the XXXX, third was compared XX, ended you, XXXX, Adam. $XX $XX.X on of a XX% million the year-over-year a X decline

million NEB, the XXXX year-on-year. of from third revenue royalty in $XX.X in by quarter increased revenue our XX% Excluding

underlying XX% year. was was million platform Our driven sites. sequentially $X.X $X.X an SomaScan as of from our Product of as in up up quarter third versus 'XX through authorized revenue performance revenue authorized adoption close associated well or by this increase site strategy increasing million and to QX QX our the with

prior from Gross XX% the margin decrease XXXX quarter for XX.X%, the third period. a year in of was

X.X% royalty Excluding third revenue year-on-year. the XXXX, increased quarter the NEB by in margin of gross

year and earlier we the the to expect year, and term range in our long margins mid-XX% XXXX improve combined margin full we continue expect royalty revenues. profile from distributed gross in noted our solution As to future

the were million a of Total in compared decrease XXXX. $XX.X XXXX for to were third the quarter for third quarter expenses million quarter R&D $XX.X million, the operating from $XX.X XX% the expenses in quarter third $XX.X XXXX million of XXXX. of of third

of of administrative Selling, in XXXX. $XX.X the compared million million to to related Transaction third QX quarter were Transaction and the quarter to for $X.X third of third the XXXX million 'XX $XX.X in third to upcoming compared general expenses quarter our [Technical 'XX costs [indiscernible] expenses the the in related [indiscernible]. XXXX. were are third Difficulty] were for quarter quarter of

to I note Lastly, prior include Difficulty]. [Technical would expenses like operating year's the

ongoing reduction across We results full substantial quarter approximately expenses. in remain initiatives. million third on expense $XXX year operating to track Our reflect recognize progress

third EBITDA loss a of XXXX. to for in quarter in compared of EBITDA Accounting QX of was been XXXX million loss adjusted quarter $XX.X the 'XX, of $XX.X third royalty the NEB million of have Adjusted the $XX.X an loss would for the million. a EBITDA adjusted

ended $XXX the quarter investments. million and We with third of cash short-term cash, equivalents

burn in a spending decrease quarter cash significantly reflecting million, as Our implement the we sequential control. was greater $XX

$XX we year million the with than year. approximately in as guided Adam equivalents investments, implying our XXXX ending with cash, are million. had We burn rate our guidance significantly lower and Ending outlook, for revenue to the mentioned, cash originally million a raising $XXX to year we $XX full anticipate short-term

to point, this call turn At to the like back I'd Adam.

Adam Taich

up I moment, queue for turn Thanks, a to Eliot. to our the over operator, open will the line In questions. Shannon,

do, yet ask Before focus BioTools as filed. I would and that proxy I like results on than our business third our with been on our Standard has rather quarter announced questions audience our progress to merger the statement to not

Shannon, we're now ready for questions.

Operator

first with from question Our line comes Instructions] Mikson Genuity. [Operator Canaccord the Kyle of

Kyle Mikson

new I indications library, And I I at early of seen very more so curious know was it's, So obviously, enhanced [indiscernible]. sort that the looking guess you've just [indiscernible] days. [indiscernible].

Adam Taich

able the to you -- question. are saw hear as just unable from the Eliot think I -- Shannon, and weren't I we to

Eliot Lurier

a We're of static. lot hearing background

Operator

question? your could please Kyle, repeat you

Kyle Mikson

Yes.

[indiscernible]. So

enhanced kind type it's for? regarding was know -- the kind indications use library, to you're what I that days, library protein I but new of early [indiscernible]? curious So researchers what curious where of just research the of seeing just

Adam Taich

you. wanted I in areas proteins were also interest we we menu. of And that's audible. hope to to that, scientific with ensure defer that [indiscernible] [indiscernible] Shannon, looking I'll But [indiscernible] Yes. gathering on the new

Kyle Mikson

this loud Got you guess it. then performance [indiscernible] on so research question like at would other this I I performance, is or some looking hear driven would could you Would definitely say clear. the [indiscernible]. biopharma? my be that of more you just say the And the and

Adam Taich

you'll in discussions Yes. different in along We're GLP-X the of penetrate discovery customer discussed growth more aspect the in earlier, most starting then -- our on also way I I've to to would highlighted both road, comments. but and customer the Those, deeply biopharma. well. and and really we're bases. see fantastic oftentimes as see [indiscernible] starting accelerate all ourselves seeing we're growth as we're And the areas clinical segments, those [indiscernible] finding can therapeutic in say those more [indiscernible] more

Operator

is line Brennan Cowen. Dan Our with of coming next TD the question from

Kyle Boucher

the for Dan. on on kits I Kyle the business one It's regards to in had sites. authorized

said up with activity you of the XX to have And level 'XX? is in to expand plans do those each you're this sites. How You sites?

Adam Taich

Yes.

And and tried last far. we've done new the over of one that of [indiscernible] but we've several those So partner. [indiscernible] the selecting some quarters things is sites do running, thus gotten so we've great up to

So activity [indiscernible]. level is and great

Kyle Boucher

The Got million the you in it. by of should about It are. fine where Street the carry how in sort the of and Q-over-Q think guide. look guys picked up QX? the raised sequentially. relative quarter numbers The I relatively about we think should $X.X the Should sort beat Street And about over of we that? growth business? midpoint kits just speed the to think And they we How

Adam Taich

question? repeat I the apologize. Can you

Kyle Boucher

might some difficulties be Yes, here. we having technical

is you Or takes beat XQ? are The the fourth the comfortable the million and sort of quarter? rate of the what So $X.X guess I about by million. for about of Are Street guide, quarter $X.X you midpoint puts at where the

Adam Taich

Yes.

to we're third is quarter part to that guidance think increased the I expecting the more the fourth of reason quarter. look we similar

feeling And about we're that. so good

Our business [indiscernible].

Operator

next from comes of the with Arias Daniel Stifel. question line Instructions] [Operator Our

Unknown Analyst

for on Paul think Dan. but I hearing, audio It's been this having I'm has asked. the Apologies [indiscernible]. if trouble

up is are customers you're to terms out of more quo about these kind sort more Or faster of you're more of Just training normalized that and authorized Is any something speed improvement becoming, the that wondering authorized or as just you in sites, there? new -- setting it seeing terms getting up up as [indiscernible]? sites are staying starting of customers status I in and that Can pull-through. to of a terms in to talk guess, you of now little XX see pace frequent. more

Adam Taich

think learn we I No, [indiscernible] [indiscernible]. as

We continue to in [indiscernible]. increase the site

Unknown Analyst

seeing that And strength geography quarter something the is Great. ago that? Or is raise, you're one -- is or you specific Okay. last in is so a there that a to relatively of expected then terms contributed broad-based? that more that's more than the guidance

Adam Taich

isn't as uptick It's really any be fairly I broad we're nice to It seeing based, what think so you. seeing particular, we're with [indiscernible] in [indiscernible]. honest is we more our in really In broad-based ERP. extend historically, Europe [indiscernible] growth

Operator

back call the now to remarks. to like would I closing over Adam turn Taich for

Adam Taich

for it's apologies want merger the forward to Q&A. and of hope the to Great. difficulty closing audible. quarter just Thanks, look join a at strong And time another bit right thank Thank I for you much. BioTools. call. this Shannon. And I little we efforts with really you Standard technical your and your so to

Operator

Thank conference call. concludes today's for you This participating.

You may now disconnect.

SomaLogic (SLGCW) 8 Nov 232023 Q3 Earnings call transcript