Standard BioTools Inc. Q1 FY2025 earnings call

• Thanked customers, employees, and investors, emphasizing support fuels their work.
• Q1 results were on plan despite a choppy operating backdrop, with $40.8 million in revenue. Execution improved via Standard BioTools Business System (SBS).
• Diversified portfolio, disciplined operating model, healthy balance sheet, and team improvement. Strong strategic foothold in proteomics and recent high-impact product launches, including at AACR.
• In Q1, revenue mix balanced; instruments grew globally while consumables and lab were soft. Non-GAAP OpEx improved 22% YOY, operating loss improved 45%, and adjusted EBITDA improved 29%.
• Integrated SomaLogic over a year, applied SBS, took out over $80M in cost, repositioned technology, launched new products, and re-engaged Illumina. Introduced three new offerings at AACR.

In Q1 2025, Standard BioTools reported $40.8 million in revenue, a 10% year-over-year decrease. The revenue mix for the quarter was balanced across the portfolio: consumables at 35%, instruments at 19%, lab services at 30%, and field services at 13%. Instruments saw global growth, while consumables and lab services were soft due to project timing and funding uncertainty in the Americas. Consumables were down mid-teens year-over-year and low single digits sequentially, with the largest impact in flow. Instruments had double-digit year-over-year growth led by demand for the Hyperion XTi spatial imaging systems. Services were down mid-teens year-over-year, driven by lab services decline.

• Full-year 2025 revenue guidance remains in the range of $165 million to $175 million, back half-weighted based on internal funnel metrics.
• Anticipates a mid-teens percentage decline in Americas academic revenue, roughly high single-digit million dollars at the midpoint.
• Tariffs impact is manageable, estimated to be low single-digit millions of dollars, with plans to pass tariffs to customers where possible.
• Eyes on reaching adjusted EBITDA positive in 2026.

• Macro environment remains dynamic with uncertainties.
• NIH budgets and tariffs concerns intensified, adding complexity to global trade.
• International markets and biopharma engagement have variability, impacting quarterly performance.

Q: Kyle Boucher asked about the reiterated guide, weighting of revenue, and instrument demand funnel.

A: Alex Kim said they're not overly specific on the percentage split but see larger projects in the back half driven by funnel metrics. Michael Egholm mentioned encouragement by funnel growth in instruments, no material pull forward due to tariffs.

Q: Kyle Boucher inquired about M&A pipeline and timing.

A: Michael Egholm stated strategic M&A remains core, they have a good funnel, highly disciplined, and intend to pursue 4-6 deals between 2025 and 2026 with high bar.

Q: Matt Stanton asked about U.S. academic and government, new products.

A: Michael Egholm said 15% decline guidance holds due to less funding in U.S. academia, delay in consumables orders and instrument purchases. On new products, early access with minimal viable products initially, seeing it as a significant opportunity long-term.

Q: Paul Knight asked about Illumina partnership, biopharmaceutical customers, and $10 million cost action.

A: Alex Kim said moderate growth in Illumina partnership in 2025, baked into guidance, strong traction expected 2026 and beyond. Michael Egholm noted good traction in pharma in Q1, $10 million cost action in January will flow through to improved adjusted EBITDA.