Seer, Inc. Q3 FY2025 earnings call

• Product Innovation: Proteograph ONE Assay and SP200 Automation Instrument launched, doubling throughput, improving precision, and reducing run time. Shipped third consecutive quarter of strong instruments, with 3x more instruments in first 9 months of 2025 vs 2024.
• Publications: Record number of third-party publications in Q3, validating Proteograph's performance across applications. 66 customer publications, preprints, and reviews to date, with nearly half published in 2025.
• Partnerships: Expanded partnership with Thermo Fisher Scientific, with first joint sale in Q3. Working on numerous opportunities from individual accounts to large population scale studies.
• Insights Grant Program: 2025 program had 88 applications (twice last year's), launched additional program for translational researchers, with winners selected and plans to present findings at a conference in 2026.

In the third quarter of 2025, Seer had $4.1 million of revenue, representing 2% year-over-year growth. Product revenue was $2.8 million, consisting of sales of Proteograph instruments and consumable kits. Service revenue was $1.2 million, including $300,000 of related party revenue. Other revenue was $152,000. Total gross profit was $2.1 million, with a gross margin of 51%. The company ended the quarter with approximately $251 million in cash, cash equivalents, and investments. Over the first 9 months of 2025, Seer shipped just under 3x as many instruments as in all of 2024, and had repurchased approximately $22 million of Class A common shares under a $25 million share repurchase program.

• Revenue for 2025 expected to be in range of $17 million to $18 million, representing 24% midpoint growth over 2024. Anticipate full year revenue in lower half of range due to near-term macro pressures, including government funding uncertainty. No additional impact from government shutdown factored in, but shutdown could delay grant funding and impact shipments in Q4.

• Shifting government policies around tariffs and research funding causing uncertainty and capital spending constraints on customers.
• Government shutdown escalating uncertainty around budgets and availability of funding for customers.
• CapEx budget pressure and elongated sales cycles, especially due to government shutdown impacting NIH funding for instrument purchases.

Q: Could you provide more update on the partnership with Thermo and if it's expected to be a material revenue driver next year, and talk about barriers to larger sample size products?

A: The Thermo partnership is going well, with first joint opportunities closed during the quarter and a pipeline of opportunities. Larger sample size studies are possible due to Proteograph's scalability; before Seer, mass spec approaches didn't scale, but now with Proteograph ONE, SP200 Automation Instrument, and Analysis Suite, large-scale studies with tens of thousands of samples are feasible. Biobanks are increasingly interested in such large studies.

Q: Trends in academic customer spending post-new fiscal year and impact of government shutdown?

A: Academic interest is increasing, with 40% of year-to-date revenue from academic and government customers. However, the government shutdown has caused a pause in spending as NIH shutdown adds uncertainty. Even with interest, customers are pushing pause buttons while waiting for funding clarity, but long-term bullish on academic and government.