SomaLogic (SLGCW) 14 Aug 232023 Q2 Earnings call transcript

Good afternoon, and welcome to SomaLogic's Second Quarter 2023 Earnings Conference Call. [Operator Instructions].

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

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

of or begin, relate securities our Reform XXXX. in harbor laws, events, are future provisions our current statements. gross organization future remind Act to expectations are made and or forward-looking results forward-looking various of pipeline, call I'd the to hiring the and limitation, management call predictions which estimates and the diagnostic this we content safe to for All within performance federal our without make are including, and this database based those forward-looking statements contained Private base, in assumptions. you growth, of Any meaning financial of expectations statements pursuant margin market upon will that statements, during performance; protein Before relating customer that to like opportunity, growth Securities Litigation

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

broadcast and the our accurate with the listing risks Factors a the refer August is of Exchange Commission. and XXXX. today, Risk and live latest XX, contains Securities of to information uncertainties only business, call For section Form time-sensitive of XX-Q please with associated description our filed conference the This as

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

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

and revenue reducing Day and the XXXX full for Second my on Quarter execution driving my an From focus since organization role been spend. March. the in operating while thank joining assuming X, consistent discipline and bringing commercial with Conference you afternoon, emphasis CEO interim first has on Good late quarter SomaLogic's Call to

Our objectives. progress on both results these early this of quarter demonstrate

SomaLogic Although a the taking to remains a are capture ensure in is ahead, to of necessary substantial position work share proteomics we growing high-plex market. the steps greater

quarter $XX.X growth driven adoption of growing platform assay year-over-year the in services by authorized million, was reflecting a and both, for SomaScan the sites. number Revenue second of increasing XX%

Excluding with the second the flat revenue impacts XXXX royalty a basis, year-over-year of year, our reflects in our revenues our growth. of XX% versus quarter quarter expectations. prior in the sequential line roughly XXXX, were first performance On

to our our result trends of $XX and second million in As full year revenue. the XXXX guidance progress a $XX ongoing are in we quarter million reiterating of business,

Before Eliot we June. discuss operations Financial our experience detail, commercial results research we thrilled deep executive Eliot financial of accounting with joined is as Chief in organizations. a brings in I'd companies understanding Eliot like to industry in years welcome and on SomaLogic. the to him and sciences He across seasoned Interim in over SomaLogic, XX publicly more are to board. have of and traded Lurier life a Officer to

in progress to quarter. Turning the

in the contributor our term. stabilize we taken to services near have revenue growth. position for steps and Let offering, business our me recent with start In assay it largest core quarters, the

focused Our retention. well as customer driving intensely as new levels commercial acquisition customer of on teams are high

discovery SomaScan reach broadening our the We continue beyond of accounts well impact to platform call expand into points. biopharma and traditional are the new our

the consistent we our see our quarter there second beginning emerge are work the more line for execution top year. to and pipeline ahead, of While plenty is in in for

we to medicine untapped partnerships new and signed Spain on of precision partners technology, our track of this well XXXX, or as SomaLogic Citogen Dante in domestically expansion with the with both genomics site our the authorized the Since sites is international in we providing first several access enable into two a as very the distributed global of important solution is located agreements and markets. services have authorized is broader at in program Most recently, full of leader Citogen laboratory strong scale to program. beginning Equally clients. volume focused Italy. record in Dante and a Europe, their driving multiomic Genomics. Genomics shared a launch

build proteomics partnerships SomaLogic and the molecular in the market. upon These Japan in serving healthcare in as BioStar GXX Middle global sites Singapore in genomics authorized China, East, FonesLife

to in higher-margin reduce SomaLogic globally. we and more the researchers key distributed generate As lines will scale continue presence revenue markets, solutions predictable for to business, sample expand and allow our time delivery

the accessible, platform allowing is distributed more Importantly, our focused serve is of we distributed a grow and well to solution. the making on delivering NGS-based Illumina, our our which this on better with is co-exclusive, needs partnership effort to us specific are progressing SomaLogic co-branded Building customers. business

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

this of are is interest effort and customers the excited level about from We high.

future content expansion platform. Finally, within SomaScan is bolstering the our our continued current offerings and

track we a that launch. As are forward drive reiterate pleased is in we our fourth SomaScan Plex content, on XXK for solution to quarter

apply come for comprehensive as curve set customers diverse increasing importance view up beginning adoption cases. platform of SomaScan recognition the more to of are the to We the and of the a proteome use a see

in we differentiated from market. development this substantially discovery of SomaLogic in a therapeutics view As this proteome. disruptive early that of innovators benefits the growing believe more and complete the We a well know leader space, is

I an reduce like to the across provide update to expenses Before to I'd organization. initiatives over our Eliot, the on turn call

our base. we to also our must expand cost As we business, reduce continue

inputs and realigning our same a business. year. the resources early expenses our are quarter's focusing We operating by this to account reflect XX% We've spend reduction Life last core made Sciences progress, for this solely to quarter over on

position allow cash our to We for substantial operational future. the preserve into and are focusing flexibility our organization

full in the reduction for XXXX approximately We more remain significant versus are disciplined XXXX and $XXX beyond. year, expenses into to operating to committed spending and a even million on track spend

financial call Eliot? to to Eliot results the review quarter. our over With that, the will I for turn

Adam, SomaScan for the And with $XX.X was joining June the you, the results the XXXX, ended in start the adoption $XX.X revenue by our Revenue million, period million increasing you, Thank X welcome. for months was Quarterly thank us XX% for from XX, driven everyone, of I'll today. of platform. quarter. for increase a the year. same prior warm

the of revenue was Gross in by impacts second margin year. the XX%. revenue the prior in compared to impacted the royalty royalty the same XXXX XX.X% prior lower of to margin the prior was in for in grew Excluding comparison of Gross second XX% quarter the revenues period year, quarter year.

in the to a we expect high year gross full As range. now mid- margin XX% result,

of million deliver With operating second were we XXXX spend, with second in expenses of royalty reduce $XX.X future expenses XXXX our second second to $XXX million expenses. XXXX. quarter expenses in to solution were to quarter our quarter $XX.X compared of XX% expect for on remain XXXX. $XX.X XXXX. distributed XXXX quarter million full million, long revenues, second decrease for the the our we Total year Sales, compared quarter the general of $XX.X were $XX.X track of operating Combined quarter to the the million from for the initiatives of margin approximately a and administrative profile term. $XX.X ongoing R&D improve million and to in second million in

afternoon XXXX. as quarter EBITDA investments, XXXX million of quarter an to reconciliation a this in between commercial second current offering of GAAP press million substantial of flexibility on to second $XX.X loss Adjusted million equivalents for $XXX.X drive R&D of of for And and the adjusted adjusted with the SEC our file release future short-term the net loss Please EBITDA. ended the and loss was quarter compared cash and initiatives. $XX.X with EBITDA and we cash, see of a non-GAAP

Our quarter the decrease of XXXX $XX $XX second million. was a million, from quarter's burn reflecting sequential cash prior in of cash the burn

full be for million to We or burn $XXX cash anticipate to less continue the year.

$XX XXXX revenue to million. guidance as of are our with Adam we mentioned, full year $XX reiterating Ending outlook, million our

We continue drivers building on many the as teams ahead. worked year while diligently a to for our see XXXX the organization growth

is revenue rigor like capital to At while and turn expressed, sustainably I'd predictably point, to the call preserving strong Adam operational to position. grow focus the drive to our this Adam. required our As back

questions. ready Operator, for we're now Eliot. Thanks,

[Operator Instructions].

comes question from Genuity. Kyle the first line Mikson Our of Canaccord of

top on eyes the [Indiscernible] the quarter. want talk line to about basically. I

XXs, wondering So you if any product or then service kind encouraging to revenue, see just of just this very very, strong, that that. mean, revenue is revenue could on And due was mean, kind Last I see going And of high was for soft year, double out. kind there, I of very on happen playing of something? not to was still product click macro margin guess? with I quickly. What's the interesting to kind on -- quarter-over-quarter, headwinds that so of low that XXs. gross note, it's this kind I

of you some line? Just walk could these dynamics top . with through the

the course, is with as it the on message. Sure, service for top we consistent Yes, that to line of expectations revenue Thanks relates Kyle. the have.

would to we service come that's $XXmillion our sites. steam more business expect As in we reiterated to effectively the the as within where up of pick authorized $XX we guide million,

site so relates the very product still it mentioned, early as it's days as you look, And revenue, us then on getting for to installations.

the to of last track we quarter. those couple on months, I of per business sites margins double number as think during over expectation. several to manufacturing, our are to within And a really course our gain we'll evolve that installs and move see successful the discussions up efficiencies continue for the We of the nice the continue

you high you some is then codeveloped mean, the commercialize Okay. the as June, I given I how to But of . interest And ability to well announced that on guess, be that just collaboration to affects of met from the market out like Illumina, kind there? what you agreement, good. sounds when Can early the you're XXXX, as interest, access at what then in there that in freezing your secondly, and Adam, that. That those level changed great. generate kits agreement? that you was going heading gives I guess clarify not And revenue confidence

Sure.

want has think, we've the to services authorized I been with have where right So perspective. goal our are all yes, to we not agreement met, has you're that at JPMorgan of wants And they back, NGS Illumina us XXXX. we that base sort along our a installed customers absolutely everyone announced opportunity an Illumina certainly participate I certain for meet And to from incredible sites. perspective, customers. a from be right? And So mean, launched in actually so there the great

on sit per at market that's who probably customers do So point, the point. sequencing the the at know factored And se. certainly this this freezing sidelines. and we guide don't in capacity are there We that see, have will

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

XXXX, Or just on also partnership commercialization broad-based think a in the feel XXXX that follow-up Adam, does more access Illumina like do event? Early in a lands you 'XX? there.

sticking We're XXXX. the back to there in Dan. we Sure, articulated early plan, actually

So slated is access XXXX, for release early commercial full XXXX. customer in

Okay.

then think about of the And cetera? consistently. for Okay. pretty of divide so pacing that that the comes feels equally? customer that on left tracking account or and call ups simple of you just kind formation Is back under when the lines, you're or half million et differences and those million sources them year to terms $XX new to the maybe there And it the the out $XX the types, like roughly the quarterly guide of along any revenue, downs are to in way would

Sure, Dan.

way can But specific to line. provide guidance I don't I the I on quarterly top you thinking -- about mean, great. is think you're we're through. halfway I want mean that the

is so do that the authorized see point sites. uptake fairly the to And we'll math simple We out. from continue on expect

through that a the progress the that would on side of And be number really So still said, it's expect year. of pipeline we've That of the start fairly more see sites. a got nice We to a business. you to small as services lumpy. we little

going expect it the certainly mix business would won't as sort the relates would flows to so overnight. what kit half. But complexion revenue. the product and revenue, we've to There's we seeing services expect first I of in here change and the the be of more And between been I ebbs of think

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

Maybe just business. the on kit

lab they're the some are number of of through you your the doubling of total run you kits, are that's the on to for many getting to to So the of today? experience the Colorado? they about customers kind these end training where versus namely for per results the talked out. then Kind output And customer initial they in then the sites. can having required any flavor if same? spending that? send do the You were of And to how with How just what's in Are that expect year? kind the walk working kit what's

Thanks, Sure. Yes. Dan.

So year. XX X do We end when to to we're fantastic on -- have that we We're sites these your sites partners, But successful. ended well important authorized sites been. year. sites to that we're not only to made at by a extremely did have our point commitment pace running. least had year-end the are of the X up it's that. we output, the and It's we around by time important really which selecting the double track on we that release,

in. one and investing, been invested we've so we've of the areas And it's

China but a our ago, and heavily particularly, been far. a data consistent and geographies with haven't what support. We what to getting equivalent output invested they in services the offering, a application they'd that's still the relatively on field customer getting thus they're small broad of we great samples and sending where need It's that really a we've experience us if able seeing of in the critical be with to were It's example that. boulder, we scale, compared were reach sort that and we're to being in year those and the is that customers,

bit cited walk revenues, why lowering. this through but Just were little more royalty gross the you they margins, into on could of XQ. know about I kind color you a

the that, So think I for guide side the of were a kind versus aware margins. of service there we your Is Just year. was big any impact that don't the of more gross driver business? color the from some on kit

Dan. Sure,

just sort What turn start kits between up more additional the as would up production and needed. add? with were out some ramp then as XXK. significant saw me really to QX I in Eliot our anything QX. relates We manufacturing we're can Eliot, of to and a ramping and over we color, Let was product we variances around mix for manufacturing as campaign that, in coming had it and it if less ramping service you associated

you're No, of goods. it's got comparing a had no I the prior in that. period, you've really then mixture the revenue variances We royalty of think And with cost QX. if

Brandon Our next question Couillard Jefferies. comes from the line of of

of from XXK will to the the that to expect can on quarter, XXK assay you maybe expanded and just power might the current of launched you Plex about be services still premium capture fourth the order that on level assay? in some pricing customers that interest assay the Or just that convert content? you talk Adam, old customer in the rollout. there How business much the

Thanks, Sure. Brandon.

As through we're it working pricing, relates the process to in of that now.

haven't XXK. we for commercially pricing So announced

that on tuned stay So one.

about similar of experienced believe lead to in time, the over various other remarkable by the substantial which in And of market-leading. there time XXK, out is we our disease around mechanisms going to As right? So a and mean, mapping underutilized undermeasured, relates the we've proteome it half firmly we technology action what proteome full to get vastly sample, truly XXK, genome, discoveries is to measure is going is look, insights I it's and to the human every the and all proteome with state.

seeing around incredible we're enthusiasm it. So

sort those can a we'll they've our with it of that of studies folks cohort, XXK the available in some that. out are as halfway As But on immediately on period make XXXX through it only maybe sticking to transition time there a where who are into sunset XK. move customers relates of will been see of of stick are for there that expect running for some we most the are going and to would I And see until that I content. we XK. certainly, XK, folks we to customers kind

of guess, on, coming terms to it? in any just just with and case why board kind then search then update interim And maybe seems just and that's I what titles. of Can finalize title you still hadn't process, maybe ongoing interim still you. be Got the Okay. on your Eliot unpack

roles. yes, Sure. can we two Well, Sure. parse the

maintaining On company has Board not conducting been a interim is side, last the months. the being. for say me of couple And search. am the The CEO I title to the I've of time extremely supportive CEO the over got

time up As it and effort to relates to we've -- side, on Eliot investing been the our speed. really just getting CFO

saying in without forward. we've speed that resources to do move absolutely him really he's on need to to get the job as and a financial we excellent us, since posted stepped just the we'll Eliot goes leadership. it for door, up got front that that So been you time And the and keep we tremendous ensuring working really

Q&A to back Adam Thank Taich for call That does you. today. for conclude remarks. like I'd our turn the any over closing to

I'd like speaking your in for next so look Well, first you everyone of to you joining today us forward to interest We to all, ongoing thank SomaLogic. much. quarter. Thank just and

and today's participating. for all Ladies conclude this conference. does you Thank gentlemen,

You a great may now day. Have disconnect.