Seer, Inc. Q3 FY2024 earnings call

• The Proteograph Product Suite saw growing enthusiasm despite macro environment pressures, with $4 million in revenue and $312 million in cash, cash equivalents, and investments at quarter end.
• Partnered with Thermo Fisher Scientific to co-market and sell the Proteograph Product Suite starting early 2025, leveraging Thermo's global sales force and Orbitrap Astral mass spectrometers.
• Continues to serve customers via the Seer Technology Access Center (STAC), with a second STAC lab launched in Germany, seeing strong demand and expected publications from studies.
• Saw traction with the Strategic Instrument Placement program, and numerous preprints/publications showcasing Proteograph's value, including a study with Stanford's Dr. Mike Snyder on nonhuman primates.

In the third quarter of 2024, Seer had $4 million in revenue. Product revenue was $3.1 million, including $180,000 of related party revenue, consisting of sales of SP100 instruments and consumable kits. Service revenue was $847,000, including $186,000 of related party revenue, primarily from STAC service projects. Grant and other revenue was $90,000. Total gross profit was $1.9 million, with a gross margin of 48% compared to $2.2 million and 52% in the third quarter of 2023.

• Seer expects 2024 revenue to be in the range of $13 million to $15 million. The range is dependent on the timing of deals; if deals roll in favor, it could be at the high end, if pushed out, lower. There's no budget flush expected for the fourth quarter.

Q: Given the midpoint of 2024 guide implying a break with past 4Q seasonality trends, what are the assumptions surrounding this?

A: It's a timing issue with pipeline opportunities; if deals roll in favor, it could be at the high end of the range, but if pushed out, lower. Pressure on budgets means no budget flush expected for 4Q.

Q: How will the expanded sales and marketing team initiative impact the P&L?

A: New team members are ramping up, making good progress, and benefits should be seen later this year and into 2025.

Q: Thoughts on the proteomics space competition and growth?

A: Proteomic market is in infancy, untargeted approaches like Seer's will coexist with targeted approaches, driving a flywheel effect where untargeted drives demand for targeted.

Q: Impact of Thermo partnership on market reach and customers?

A: Partnership with Thermo is expected to shorten Proteograph sales cycle by piggybacking on Astral instruments, benefiting customers using Astral in biofluids/plasma. Expect more clarity on revenue impact on next call.

Q: STAC program in Germany progression?

A: Good traction in US and EU STAC, with steady growth expected in 4Q and 2025, and strategic investments to get data out quickly for publications.