SomaLogic (SLGCW) 14 Nov 222022 Q3 Earnings call transcript

Good morning, and welcome to SomaLogic's Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode.

We will be facilitating a question-and-answer session towards the end of today's call.

As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Marissa Bych with Gilmartin Group Investor Relations for introductory comments.

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

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

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

cash million. past on on number the on addition science of for Thank start management I'd vertical power all year. innovation who we understanding and safer discuss sales, successfully Officer reorganization large we sales of our revenue centralized thanking I'm as morning continued the fruit. align ways hired to life staff are of to put other in continue a are one efforts, for business our life for complete achieved commercial can. the for update $XX.X putting marketing previously all to Financial to royalties Chief will support our have Blakeman, effective important, better that like under the therapies, stabilize we structure discussed ongoing care Good you, sciences to moved efforts proteomics leader business we Most and effort new translate a $XX.X XXXX the and from emphasis million revenue licensing much comments, our of revenue components as more core and that of of a the no life well welcome XX platform Sean business, call. well product new million the biology, appointed this a by life structural unit initiatives. SomaLogic, quarter more that by back imperative aspects already his investors third into $XX.X Marissa. in over because commercial commercial proud as to We share to leveraging track human bearing science of quarter. as delivered The staff in including science our credit and more to patient growth top-line training a the of and years commercial

to thoughtfully business adjust of internal parts forward bulk on our plan of Our focus our expenditures go the accordingly. life is other commercial sciences our efforts, investment business and on

structure wellness executing do we plan are so. suite, and We business to to unit continue

core been revenue focused drive and achieving in business out our at continue growth. diversity. greater is and Regarding successful the scale quarterly has variability team customer smooth event Important to acutely to sequential

customers into attracting new services the products and smaller customers ones. customers months. added retaining XX are We we larger turning four over existing past new and have using Pursuant customers, our

a another assure past customers growth Our XXX% and the ability than several due our fundamental recurring development past large long-term of revenue diversification a of to with customer next substantially human long great confidence revenue XXXX more to of years excluding both building through has increased customers Comparing the the I'm compound is important block the quarterly since and new addition biopharma during number over well year-to-date This term growth. fiscal sorry as as to us contracts with project over the contracts, two years. trend progressive and year, of deal biopharma over customer from of more the -- continued average financial two quarters continue gives value current them.

of to business remind royalty Regarding strategy. developing revenue associated a robust has and that quarter, our always licensing to our part one-time been would revenue of our everyone for payment component I this a like

our are pay As our new market is now and his we many science this time. past Intellectual as Licensing of are President that from Vice we Ken an of hired shared working application, of these reagents where The proteomics Qualcomm, life potential of and a wide We March off objectively growing. are Senior position. he and new cases. Kaskoun similar proprietary Property Strategy over XXXXs will previously know confident held on we licensing use opportunities He variety team

for ours like to discovery being facilitate customers solutions used trials improve research biopharma by frequently to academic care. And and are patient clinical more biologics

and as protein footprint commercial to by in with focus, in XX% number are customers and companies measurement the geographies. launching product we opportunities the interest our world developing, outside important builder key impactful specific these largely and United APAC especially self-service solutions. XX identification States, a of the and more expand is deploying, look for in advantage substantial of the us on and current the order in actively well international academic making a located biopharma capitalize to work our growing to top are Commercial area team We untapped in proteomics. with our expanding it EMEA centers easier as of as revenue team,

XX good team experienced at will are still we third growth six with While talented progress additions of the whom working and mode, and we APAC. quarter, have our seen sales EMEA be new definitely in in to

much reagents, faster unique than identification work Our of ability systems them in content to to rather measurement synthesize of than create protein approaches. new to development having other our biologic enables

product over Our will this TIN-K launch the in And months. content. next be When substantial current product development platform widen are of distributed new of completed already our even Shifting our for few we in proprietary [ph] will new that more globally aptamer reagents anticipate solutions. XXXX. late to

for kit kits full make the SomaScan We access widely there's certified year. array available, based of more products sites into end formats we SomaScan upside We a existing and more believe our revenue, customer for service this reduce and potential site-of-service substantial by our XK as top-line and needs, by develop and customer business products. and but business meet provide distributed by also more limiting us. solutions sample delivery completion, deploy in additional limited reliance These variability batching, to project only lot augment not on expect

to change we landscape change and partners well. and Illumina our an a work launch array kits, Consistent as as Illumina our addition product of further coming anticipate co-branded to proteomics for assays value We relationship these forward kit limitless details identification with we well and develop sell updating will go of close co-branded commercial commitment with that the in with SomaScan application In very But XXXX. quarters. to with distributed our at to you landscape reporting, to in and the NGS unwavering our and in market protein measurement, to look NGS based general. create aptamer Illumina continues products

products, targeted these the timeframe. prep modular have that now for and to both distributed array solutions of addition in In in NGS XXXX development is formats sales new sample we SomaScan

and chip-based NGS to to Palamedrix. evidenced development addition San Diego The the array based as novel nanotechnology. and in acquisition In are and approaches, committed development we leader of global solution commercialization, product DNA based by of new our recent

and We work, are incredibly and it. for excited team a about the now intermediate it the has longer-term developing accelerate to group talent opportunities this such

the as Despite growth and Notably hands, We've impact international the working customer budgets with in our by unpredictable pressures stress matters offering core on Like as supplies occur, and well supply continuous customer of issues this or trade, this fluid nature chain pronounced sample issues others, provision products behavior. on needed. diversification also spending been executing solutions, of our the and less summer. dealing many at and experienced market. over we've the on are alleviate tirelessly to where time. new own biopharma the to of we before shipping see proactively anticipating environment dynamics, this -- supply they assistance chain businesses other execute taking been continue Beyond into

remaining our others can about see very customer and therefore budgets, usually more it's to in are conservative when less cadence well growth a we by year. assessment, spend quarter growth, for seem we and to is or generally typical quarter we fourth While the down that due performance, work might a optimistic modest continued as sequential typical customers, fourth shared

spending discussed, will As we we have adjust needed. eventualities our

is LDTs platform. soon The have positive Pure a diagnostics, products, Regarding stroke created an our superior virtual have factors. predicting proteomics we individuals secondary leveraged shared very in coverage efforts which products. facilitate developed risk for diabetes, healthcare clinical other trial be our by or previously been the risk was by cardiovascular new way on platform example, test, This heart others our performed these that laboratory risk in this of results conjunction death XX third-party of Healthcare, affected we'll tests cardiovascular for with has to we attack, and trial in study or announcing

assets. variability. reports authors are characteristics SomaScan low consistent dynamic Scientific pursue of and extensive biosimilar method. demonstrates sensitivity, in approaches. the on for largest proteomics investigators, The for in sensitive scientific in remarkable NIH of and drugs. two represents coverage teams SomaScan unbiased FDA, Reports We publishing record. XK its proteome, continue the Nature Clinical NIH by at today, point the human technical a to other FDA unique manuscript our the these out manuscripts these to comparison were recent platform licensing partnership to quote The expected reproducible represents opportunities novel two note and according characterize evaluation SomaScan the highly to published manuscripts ability FDA organizations demonstrating Quick And of published integrity Pharmacology

execution an of made in We are confident and the our improvements have a and short progress, over period encouraged recent we time.

have backdrop tremendous provide guidance and pharma And that will ahead. licensing service shortly. We trends and that royalties, a core proven note supported for stabilized one-time business, full-year important list more platform we're business by we balance our we and as closing, in resource. runway Shaun maintain research our detail Against have with this optionality customers. that XXXX. growing it's enviable reset well academic technology to on the above on an in that as the continue comes raising with based revenue In the sheet current and to all a guidance

moving scale of to success this for needs intent significant of reductions our how growing expense we sciences in of preserve as will are that prudent the structures Shaun and plan. public on some support commercial place information still top line However, executing our has and structure the are make initial absolutely still while life science invest commercial recent on place, to to in growth, we aggressively market announced opportunities, while will as well operating focusing in and business. in discuss it's previously to effectively continuing company opportunities. forward. them, operational environment, to executing revenue as life possible, technology uptick on capital as that been have By Well, we and track necessary do put in much spending stages capitalizing and this

and customers turn I what of for like in building we're SomaLogic. important re-emphasize over patient Before insights and discovery, expanding one longer capture a Shaun, to to trials from is the platform is landscape market, clinical of right technology no in increasing share unique its significant and rapidly a The work it their already our and garnered improved It's proteomics to that use the debatable value. that care. I'd the

with customers huge still building and with growth, significant our returns create in opportunity While new confident front we commercial financial benefits. that capabilities, we're us of will objectively are and deepen existing tremendous relationships unlock

As I've turn for shared, results, financial over to to to now our near-term a review Shaun? there's I'd and a it great come in of Shaun the more like deal beyond.

Roy. year. compared the quarter million third of in Thanks, period was $XX $XX.X Revenue of same million the for to XXXX the prior

are in business services we We improvement the about is pleased assay the and doing. our commercial our work are with excited team

grow ingredients licensing was pursue And to this and in QX, Roy's the improved of of one quarter unexpected. the commercial To revenue, opportunities platform our results future. in All this recognized point, are licensing we we of amount below hope the example of we execution. is just saw the to in fact,

million of quarter quarter, $XX.X assay to a would from million breakdowns assay of understand our Breaking increase $XX.X we help you from $XX.X services our revenue last I increase provide $XX.X XX.X% core underlying we like down million, Given revenue the quarter. for additional this our recognized amount of clarity performance. the X.X% services services licensing recognized business our and assay third million to revenue business, XXXX revenue on

revenue million. minimums $X.X $X Roy $XX.X million also recognized other million agreement. our comprised a our arrangement to between over of interest to recognized million one-time recognized next to income that million upfront in $X and under guaranteed SomaLogic for licensing type that from And revenue an for financing licensing to three mentioned, XXXX NEB in from that the $X.X We we this of the core over part we million $XX.X we revising next that, payment, GAAP, years And the as future we $X.X arrangement including recognized account a three which paid terms be of for years. with will of as then collaboration was received a $XX XXXX revenue. total million of allocated businesses million Due the kits,

just recognized we those the Gross third year quarter of of that years large the margins. each be compared future that by margins the in in than interest of XX.X% I means described. $X to XXXX of were this be quarter third the was margin driven receiving small XXX% revenue for Gross the will other prior million year. XX% royalty So will not primarily amount licensing component

which out, margin is lower our to royalties lower sorry that back you If biobank XX.X%, due margin margin tax samples. would be --

second I range. the remained without be to are four reiterate earnings in process discussed, mid-XX% we XXXX. our of those first compared of last We that will be to we the those current mix running customer I half samples think with As flat in will quarter QX. samples, the overall of impact large our in QX call and margins would QX, volumes continue that low our to fairly margin margins half biobank would to due SomaScan

for quarter the were of equivalents $XX.X the the for of Sales, this million was Adjusted the of of compensation the the compared loss third million million, operating improve Given to approximately XXXX short-term we this reconciliation and of XXXX. of expenses XXXX royalty to XXXX. third the XXXX. anticipate revenue loss for We SEC the third adding below expenses million range. compared additional in loss gross adjusted of Total our for and release the $XX.X million third with quarter cash, stock G&A $XX.X and this the GAAP margin between the in compared compared quarter of one-time afternoon XX% cash see third based half year $XX.X second a R&D XXXX. quarter XXXX million, the million, with quarter, ended third as to Please $XX.X the and EBITDA termination a EBITDA. investments. quarter lease $XXX.X $XX to for the XXXX of non-GAAP file quarter charges $XX for were $XX.X in administrative third $XX.X million general were of third million. quarter million for quarter quarter in included to press of quarter of of on expenses net

opportunities capital as evaluate both of our expenses operational current in us successfully reducing our position upon to current and we quarter. And announced business increased our accretive focus is last the reduce XXXX we quarter's and to million cash from our and which burn, differentiator market environment allows inorganic growth part Our important act organic plan for strong flexibility to prospects. implementing expense consensus operating last on $XX are through by an

implemented have plans XX% our we are year, We over and items net to optimization. operating expense business over QX with in the of $XX of now this savings related And of million identified. through one-time XXXX finalizing improvements QX

highest generating supporting appropriately point of revenue only that towards the life We growth and are commercial focused sciences activities, on our resources business.

his mentioned we nevertheless larger going commercial seeing year anticipate flux XXXX. our look and do year Roy biopharma not we from execution the end in As continue build and volume forward end to comments, to our and expect while to customers, into

So turning including range expect to at this quarters and $XX the guidance, revenue At current like in our we the our to point, now the year-to-date of I'd revenue, to progress, XXXX end our to based business, trends this on in the third Roy. million turn current trends licensing million. back call $XX in

Again, Thank us quarter thanks third joining this everyone to XXXX report. you, for for Shaun.

turn our Operator? goals meaningful life. Q&A. for the in of to back it forward want look that of partners, new deliver coming result diversification and business with sharing come both of within more the building is There the in and core of the as collaborators infrastructure is continuing launch as for I'll unique well blocks gaining prevention And customers to momentum. you the our We leveraging more to development on and ongoing with place, growth As and a our shared commercial products, of prolongation the put and fundamental and to differentiation technology operator need suffering, that, months. over human

Please Q&A we question first rom our [Operator come line Couillard standby, open. from Jeffries, will Instructions]. Thank compile while roster. you. your Brandon the And is

Brandon. you quick various biolabs that for New England guide. the of on number? the XX prior XX Was pieces any into there to Nadan is Thanks. baked million This the one of royalty [ph] Shaun, for million

We did anticipate negotiations. we knew were that we in

we the So at of time. some certainly unknown did elements that was anticipate exact amount that getting

was the around into the some quarter. And recognition the minimums of going unexpected

out half. answer is the as I performing also anticipated the yes. our But So also business into point core would we had is going that second

out put all to So right we're based things on reasonable guide as now. trying a received that,

quarter, to spend then noted And customers. you catered at the more thanks. Okay, for modest guys fourth

halfway sit approach now, that actually we a As here, more trends, it up flush? what kind of in order quarter is so the conservative through a maybe into kind year-end taking anecdotal? more a seeing traditional is you're of or And show more budget

is Yes, this Roy.

well, compared on rush to where be just good less hope the their -- hearing others think down quarter especially and quarter. I as We're this would on the the about this hearing spend market, anticipating, feel fourth budgets to in for upcoming are pronounced. we're to fourth customers based that quarter. we for But that in do and biopharma again, maybe target we're signals for we

to in I in I point out just would going of what NEB way. revenue, the same regarding also about this that's as the not you quarters you think be recall recognized matter licensing now -- future If guide? said a

I that So We're to million reasons see the next not for as typically historically or you explained. might see million going come $X $X quarter in.

Super. Thank you.

from our Mikson for Kyle Canaccord next please. moment will question from And question, Genuity. next One you. come Thank our

Your open. line is

thanks. Hey,

kind and one dive more. Just it to the important. of to talked bit puts the quarter? some into this It's a of you fourth to know, go want to about pretty Roy, the back takes I

like figure And to trends. just quarter as can if I'm catch XX%, of apply applicable maybe in specifically the prior the kind is there? wondering to guidance assumes So just and pharma. services then Thanks. about quarters on out think for up decline. well. both this any factor specifically, I macro fourth maybe that like guidance, of baked that's small large to biotech's in the from what million in I trying elaborate talk kind $XX biopharma conservatism like quarter-to-quarter headwinds, there Maybe and revenue updated these

Kyle, and I further is Roy, just Hey, I'll detail. this Shaun. something, let good. clarify the Okay, of trends actually then in I'll some talk think about

to and in think $X.X guy, Brandon, you if that going revenue. about EP not again you a As million the tell see that we're million just maybe to typical, as $X

the the you're And which services also with our previous biopharma to you've of that any that assay the or somewhat typical and flat, we going really, described samples, are or deterioration to for, quarters. don't is, out things but be subdued again, fourth like compared see reflection again around that as trying if holidays calling So out, seeing, remaining getting anticipate happen risks account a to might new backed in our of business just and that actually we that, quarter-to-quarter. midpoint, kind to volumes relatively anticipation

you to Now add, needed Roy.

drop add the that often so good and our in No, budgets, hearing large quarter, I just feel down to year. don't of the we it in going about previous just as this customers can to we in that says. felt be biopharma their not really the again, this we've philosophy in a really huge again, that the But fourth guy that's we're spin quarters, need anticipating market, seen down last projects, spin not we're month

But big and to the be just Okay, the in that Thanks. like guys. going small is biopharmaceutical companies. companies

that wondering, like, quarter up the the of of dynamic the maybe? there. also Could there then kind fourth we've past? kind in And in as be about talked any Just upside well? Is of that catch the this

with larger the be doing Sure. are that, our usually they got customers, second sequentially. projects pushed There's There in to able on the of is biopharma that a out in we'll close knock that a possibility business will to fourth quarter, in effects quarter. the some

is biopharma or mainly that biopharma. to on It then market context. are our because regards in over idiosyncratic. should quarter up the they and next coming but massive wasn't takes there the project that into finished quarter docket, fourth So how second so up that of have a having two in and a some look some layoff. companies and this finish project be the at small that the to data, maybe doing quarter third longer market catch of in a the and so only that to then quarters, We've all fairly difference to are well heard the those are not some between but and It's on in some context, large well, really faring depends quarter,

that So pattern mentioned do be talking no for really but real decrease modest about a to rush only based we're on again, of predicting We're It year, And customer-to-customer. the we end there's this this there. budgets just And fourth dramatic the from or here. seeing something quarter. not there'll in in. the not varies we spend we're at one just saying, that as believe the

hearing what companies. common been It's currently, from we're Right.

just XXs? products like for just the looks you XX% think the that? So I it I'm curious got on in low you break mid or and I to gross just been appreciate kind XXs, that, have past it's normalized kind the margin do when looks XX% high could what of of Thanks. product three that what down Shaun, and curious wondering kind appreciate I declined margins then of quarters. product the helpful, normalize about Services you margins, think mix mean, to have to was been commentary like if it's kits, you to XXs. And talked that. been. that gets just compared like services to been like high break for gross now, XXs, service services up to what like

equipment in that bulk and outs a category cetera, not Well, there's of margin, a would I frankly, that's that, the quite wouldn't certainly mean, what of it I we're not ins yardstick just in because this product although seeing lot kits that it's quarter. of early I -- kids, et -- as and in on the terms placement, also use doesn't

progressed as over really So, we'll I anticipate that would business. that would franchise, again, that XX% and we kit expand our margin to be

of back mid being we baseline out little we really started low continue XXs services go again assay keeps I on our -- to doesn't some margins it core it's you at XXs. volumes, services, it if just a the with that's to we samples core -- kind cost XXs this but what with normalize leverage, Right again, out that again, business. XXs if a mid the in structure high volume really we to assay dragging as to noise really Looking the of the sorry, type expect the high continue current now the take XX volume to quarter. that below the mid that expand down But there, expand biobank just would are said,

Yes, this would is I that. Roy, add to

in As one. we've discussed based business standards if market. one in two on two, And studies those or our not are obviously the the important or creation to based one for past quarters, of measurement these large potential we population the or of want be one

resources to our just these where standard. we bank measurement one their power own Technopole that revenue whereas we're running development of the margins referred in as out governments Human from and some are of most we important. that studies the coming based And power from to partnerships, institute projects Italy. apply the banks. participate running run these, private power Shaun based public for exchange it's lower of in have population bank apply are accept top-line, usually to of these these well, the studies large population So, And have to some resources to And large ability

ensure viewing just for kind of kits the an just of of that market update that to sort launch kind you interacting hit the for the seeing key the you at like Roy things prepared to we like Okay, attending guys ground going ABB SHG today ingest How or wanted me, Thanks. partner cobranded that with 'XX? for are more running you that like, or and you you Saw on great. that? in rollout, was be as to are get your that. One market, how

Kyle, Illumina has well. exceedingly gone on with the partnership

out discussed already convert From is to far, a have with And genomic large well. kit as the throughput great relationships the have talking of perspective, they familiar of timeline as opportunity the there's inter very on So they're product the past, is potentially proteomics track. Illumina big and that in to with a customers. development putative centers the customers

also kits next effect increase sort of the business well. We the and the over as cobranded as we for year felt like on kits from knock Illumina our

was Okay. great. That

Looking forward Thanks, guys. to.

Thank you. [Operator Instructions].

come from Our from next will question Stampler Stifel. Evan

Your line is open.

how's guys, Evan on for going? here Dan. it Hey It's

-- down If question in and back of, expectations you like to X.X go as of quarter, X know royalty million guess I this of to fourth to by you kind came the I that kind about doing And not want million $X million. are to just quick quarter. going revenue referenced about it the see looks you math,

another we number? of down of kind guys way or that think maybe it. is you of to previously? be X Or million And things that kind you are should about about that all And to contemplating that budget lack because so. So it is that the leaves cause bring there other of flush thinking that,

fourth out This Relative Hi, Shaun. to quarter via last consensus coming is call. Evan. quarter's

year. today, several you're has game. And type have some full-year we been And -- models we've that's, said, we historically, just would always at I I of this subdued budgets right. all around seasonality seen the more really that I we a this we that now we really consensus that's times ramp mean, really So say this seeing more a assumes, exhibits, there. as they typically, looked it's that yes, talked up. And that logically reflection QX think of that about biopharma

in sorry, midpoint can continue If build expect out degradation you of we're put as simple we there account. our we as all you as really and out and that this continuing a with it the previously, said into not really on fairly future. again, doing in I guide, the seen business, know, look taking we're And in guide, to degradation our improve to that as the call it's be show in what look that any that then implied the trying core And a able factors services that's quarter. consistent our we're like to to at forward just being we out pipeline there's to from we rely it at back really not upon we to, anticipated QX

a believe that certainly have Yes, Roy sequential about good second And reason I have -- progress from our we diversification going fourth quarter. current that the is XX% to core we're pretty in to is quarter's feel no business increase would. any compared quarter. to the fourth quarter, we this the execution This

you. Got

commercial kind grown relative have a your team. to speed, in it's commercial And year-on-year, expectations? Is there's in but about of team that you work sounds so maybe think guess the It's it's I mean, be guess since I degradation, just to a where big year. it getting lot last going investment process to And flat. up are no you I I like

on quarter the addition progress we're would people year people to of had see. I say Fourth new fourth an has that months first about get large in trained our a up with and territory. those good is, down, the in getting Well, to people drop productive. a unusual that group nine making fourth in deal thing XX% in it yes and in quarter, to more takes been hired quarter fully spend the last quarter, bringing sales And we staff year, normally was productive you last

last weight So performance. year's I compared fourth quarter wouldn't performance put year's to this fourth much on quarter

very but for products. a this strong stated of away with deal a last plan is at quarter-to-quarter fair year an that. large As from in drop and our and business and fourth of repeatedly, variability example moving mainly a fact distributed of we obviously bit we're unpredictability the There's we're quarter with that service business, a that stage still, rapidly

year fourth wouldn't last year, comparing certainly fourth that quarter anything of significance. implies quarter this I say So

question, And any Maybe the Thanks. that if things can. one deals these are pipeline? I the you down additional last just but are in that road? we maybe kinds should of talk Are there specifics, can licensing like anticipate Thanks.

business our this deal. moving will is Biolabs we New England an part forward, this as Yes, I believe said, be legacy one of important

we it put potential we've are XXXXs that, quarter cases for cases We distributing very use until use after created and need similar these the well which of that others. had very and are a some New use focus feel members of that antibodies. Bio, as number contracts depending but now as the not on go, sciences talent for cases discussions this, and capable with on we XXXXs for on and we some quarter exemplifies. next to not are The cases have ground licensees or be of here life use to England other how added the the but the or With may have to the that recently things in the we confident

licensees. So yes, we believe do next some in are over some deals. win the with we year that that additional will other I discussions

please Mr. mute. not your sure [indiscernible] line on make is

all was I had. you. Sorry, that Thank

And moment will Thank our next for from Brennan you question please. Cowen. Dan question, from next come our One

Your line is open.

so and XX.X Thanks implies Shaun quarter-to-quarter and go within you thanks. question. million the I guide on quarter, million give the the had to the take flatter, picture, just first. then circle you color saying at taking on mentioned a some arrays. that you wanted on maybe range we more that few the can to me fourth is below that I I just the implies comment mid guide as to the think like it just although just fourth you XX, guys the reflects on XX.X for square the the quarter just XX.X midpoints arrays, flat Great, XX.X if bigger just Maybe for the XX mean,

assay to I question, number just the exactly Yes, wasn't clear. was QX, But exact for put let is or trying put low me at flattish. it service core Well, be the hi because less clarify end really to if why I more giving range. that trying to the obviously, a at Dan. be we're out relatively that a of now businesses, It range. just that, the bit component trying you little the look that, could given clarify than

with more and right, meant I that specifically low end, I go trying to think all if but that to a point that, than that. just I'm other relatively not number you the comment, implying flattish mid-range, is You're toward being by to the

then occur, maybe full while did the the the knowing but -- of just been Got it. guidance when prepared full kit can launch going sense assume the give that? quarter, would some product the to have fourth I assuming mean the in you heard what's getting business clarify in quarter roughly us a you launches, for business yes, I remarks, And quarter in in expected fourth full the is in the I

but guide the product all not guide, the in out categories again is inclusive. specifically Well, we're breaking the

core due million that's exception with typical primarily historically the million have quarter would licensing to the $X last again, not each the is be the the of of all that's of recognized $X recognized So, arrangement. to each quarter, and components, that been that previously which revenue, new kind in going year, been to has

for in as number in And for had this that Roy. at sites we plan the pipeline is Dan, Hi, to We end to science we have the successful that do kits, certified kick a beta a of well. off quarter full add access year, full of for program. fourth some to beta program the more the right access really do

Got it. it. Got

Shaun and so Roy. that, thanks Okay, for had you basically,

the the in way the fair? So much, anticipated come? a million is guide the would was getting you about it's fourth the coming $X to $X a now basically, amount, quarter have Is from not wind gotten thought part this fourth going $X bigger and up fourth that of have to prior with much quarter, in million or the or million fourth deal. in But basically we quarter, royalty obviously, you prior $X and quarter, million the then that

we to and all as to quarterly analogous what the went seen proper the we've signed accounting certainly think I I Yes, last on through quarter anticipated be agreement would have previously. that Yes, the of before it. revenues from

is us, change expectations. that certainly for that our previous going from So forward a

Hi, trying revenues likelihood our some that customers all this next contracts the Dan mindful of Again into of stabilization into will NEB quarter. down sort are The budgets the fourth be of to in not continue biopharma we believe fourth going is quarter, quarter. quarter. of rush, paid to this of the business, obviously of we're Roy. be in But our the quarter the on that being want the reset SomaScan core I large instead fourth their the spend clear and to

when And at it. I Got have the very way XQ, you you providing low-end the was at and conservative. articulated guidance, were think back

this worse or was of degree much bigger thought things overland you the markets, that what you I from a basically on there were to So, pharma conservative it, a just seeing back there element gotten try guys I you're and have is guess then, persisting know obviously through conservatism just baking QX, pause, you and kind seen because in, trying just that to quarter? spending, the pause to would fourth of what incorporate that you think transpired pharma with into thought in guys had I

certainly Yes, now, quarter in things We're contracting along. second the slowdown in seeing was Dan, slowdown contracting fairly a idiosyncratic. moving not are

be, and the of and now. our quarter. like tough to are in sort it market behavior mostly really spending the we're to in large just be fourth it's impact We're better, along. so supply we just market more not, pragmatic would in year But trying year in pace we everybody the to the already this again not about the issues the customers the just think in this but be chain in and we're I saw activities contracts proactive hope this part abrogated have could to much that it's about beginning market on trying fourth the it's that. pragmatic That's again of else platform our at the that not and conservative, due prolongation nothing have than moving a usual quarter, the earlier of

is from there consistent is front, pretty happening spending What's or academic there, kind macro? any just on global of a choppiness the

been funding, side. grant the is And And grants. impact on not by a has pretty usually is spending of on consistent driven arrears. couple surprising, academic right in of economy the academic the Spending the most of years because

as so well. government customers in sites a And addition on academic for a significant outlays our adding support So has a over grant or federal change then more been half programs, there. haven't the our year seen the of what federal we to percentage last of growth really year much and based

Got it.

this Okay. know this that deal in 'XX could of here. you've drivers that over on royalty front the want of terms pipeline XX licensing there were like more certainly strategy, royalty exit so your And think next if got business? ongoing deals, terms there licensing the I before or to notable to months? multiple endurable, go Obviously, Trying one of Roy, I the additional view one, of big was the year-end say a course look deals what's obviously, with to in is you the

any year, year, this licensing certainly them, before one are fully those Again, the use would we cases down. next of some the number now anticipate span of lot deals this of Licensing turn end say, we spectrum want cases. deals Head the over are I the we really, of end Yes, just we finish to don't past small having March. our up of them just line of conversations end the large deals SomaLogic a sort has before He's the get large although, working a sciences we're use be for context going team opportunities. the licensing to to conversations quarter. the If have ongoing. with reagents signed before see any I There large. the has of And could hired in licensing speed, in this fiscal coming the now life we a of year,

pauses about year-on-year, I talk we're into have 'XX? a last it still, about you're indicators right today, the how not about exit trajectory environment know going mean, now, we you some giving obviously feel without but the having numbers, spending I consensus And business 'XX, revenues lead lifting. any one, the as XX% of in about that up the models 'XX to pharma going talking

projects, team, second we more under we if control. projects, projects each get market we can those that certainly what control we've could, We can we just their on large probably we those our things control. and there. ground larger we and control, to more full the regions experienced can't Fixing regions, third to at great customers control some business, bear about We XXXX. It'd for up EMEA obviously, and only umbrellas. folks we in of context individuals of move can commercial We over hopefully both as be our can the feel the effectively should feel to into and addition growth and looking we obviously, success what we expanding exactly ex-U.S. those over market important a the And well. put we beginning last growth putting are leaders significant begin about all the first into the data. things will quarter, the past that the capitalize of the happening to only notice year as more can the customer I anticipate on growth distributed contingent to on good geographic which into We're good new heavily market reach, our in fruit that the hired more expanding more solutions mentioned customer XXXX, control that complete accelerate XX six we've partnerships, those had in creating last of this months.

Got it, very okay. Roy, much. [Indiscernible]. thanks

Thanks.

back you. to Thank no phone any conference questions the I'd remarks. from lines. turn am further closing I now our to for And like Roy over Smythe showing

you thank operator. Great,

you for call. today's Thank Ladies your participation. and gentlemen, conference this conclude does

now have Everyone You a day. may disconnect. wonderful