SomaLogic Reports Second Quarter 2023 Financial Results
- Revenue of $20.5 million, an increase of 45% year-over-year
- Cash and investments of approximately $474 million, a strong capital position to fund current and future business initiatives
- Reiterating full year 2023 revenue guidance and operating expense target
- Management to host conference call today at 4:30pm ET
BOULDER, Colo., Aug. 14, 2023 (GLOBE NEWSWIRE) -- SomaLogic, Inc., a leader in proteomics technology, today reported financial results for the quarter ended June 30, 2023.
“Our second quarter results are in line with our expectations despite navigating operational changes and a dynamic macroeconomic backdrop. While our progress this quarter in both core assay services and distributed kits is encouraging, there is still more work to be done,” said Adam Taich, SomaLogic’s Interim Chief Executive Officer. “We have the benefit of a strong cash position, yet remain fully committed to spending discipline and continued operational rationalization to maximize SomaLogic’s long-term position in a growing proteomics market.”
- Expanded distributed kits offering with additional Authorized Sites, including Citogen and Dante Genomics in Europe
- Advanced development and manufacturing work to support 10k SomaScan assay launch by year-end 2023
- Continued collaboration with Illumina ahead of co-branded next-generation sequencing (NGS)-based proteomics kit early access launch in 2024
- Appointed Eliot Lurier, CPA, to Interim Chief Financial Officer
Second Quarter 2023 Financial Results
Revenue for the three months ended June 30, 2023 was $20.5 million, a 45% increase from $14.1 million in the corresponding period of 2022. Excluding Q2 2022 royalty revenue from NEB, revenue grew 55%.
Gross margin for the three months ended June 30, 2023 was 45.4% compared to 50.0% for the corresponding period of 2022. The decrease was driven by lower royalty revenue.
Research and development expenses decreased by $6.8 million, and selling, general and administrative expenses decreased by $7.2 million in the three months ended June 30, 2023, compared to the corresponding period of 2022. The decrease aligns with the Company’s previously announced expense reduction initiatives with an operating expense target of approximately $170 million for full-year 2023.
Net loss was $24.8 million for the three months ended June 30, 2023, or a loss of $0.13 per share, as compared to a loss of $23.0 million, or $0.13 per share, in the corresponding period of 2022.
Adjusted EBITDA was a loss of $28.9 million for the three months ended June 30, 2023, compared with an adjusted EBITDA loss of $46.4 million in the corresponding period of 2022.
Cash, cash equivalents, and short-term investments were $474.2 million as of June 30, 2023.
2023 Financial Guidance
SomaLogic expects revenue for the full year 2023 to range from $80 to $84 million.
Webcast and Conference Call Details
SomaLogic will host a conference call at 4:30 p.m. ET on Monday, August 14, 2023 to discuss its second quarter 2023 financial results. Those interested in listening to the conference call should register online here. Participants are encouraged to register more than 15 minutes before the start of the call. A live and archived version of the webcast will be available at https://investors.somalogic.com/
SomaLogic is catalyzing drug research and development and biomarker identification as a global leader in proteomics technology. With a single 55 microliter plasma or serum sample, SomaLogic can run 7,000 protein measurements, covering more than a third of the approximately 20,000 proteins in the human body and twice as many as other proteomic platforms. For more than 20 years we’ve supported pharmaceutical companies, and academic and contract research organizations who rely on our protein detection and analysis technologies to fuel drug, disease, and treatment discoveries in such areas as oncology, diabetes, and cardiovascular, liver and metabolic diseases. Find out more at www.somalogic.com and follow @somalogic on LinkedIn.
Non-GAAP Financial Measures
We present non-GAAP financial measures in order to assist readers of our condensed consolidated financial statements in understanding the core operating results used by management to evaluate and run the business, as well as, for financial planning purposes. Our non-GAAP financial measure, Adjusted EBITDA, provides an additional tool for investors to use in comparing our financial performance over multiple periods.
Adjusted EBITDA is a key performance measure that our management uses to assess its operating performance. Adjusted EBITDA facilitates internal comparisons of our operating performance on a more consistent basis, and we use this measure for business planning, forecasting, and decision-making. We believe that Adjusted EBITDA enhances an investor’s understanding of our financial performance as it is useful in assessing our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business.
Our Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate this measure in the same manner. Adjusted EBITDA is not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating our performance, you should consider Adjusted EBITDA alongside other financial performance measures prepared in accordance with GAAP, including net loss.
Forward Looking Statements Disclaimer
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenues, projections, prospects, plans and objectives of management are forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “forecast,” “guidance,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “continue,” “will likely result,” “possible,” “potential,” “predict,” “pursue,” “target” and similar expressions, although not all forward-looking statements contain such identifying words. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including factors which are beyond SomaLogic’s control. You should carefully consider these risks and uncertainties, including, but not limited to, those factors described under Part I, Item 1A – “Risk Factors” in our Annual Report on Form 10-K and other filings we make with the Securities and Exchange Commission. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SomaLogic assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. The Company will not and does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Gilmartin Group LLC
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share data)
|Three Months Ended June 30,||Six Months Ended June 30,|
|Assay services revenue||$||16,597||$||10,931||$||35,016||$||29,731|
|Cost of assay services revenue||9,677||6,571||21,359||17,951|
|Cost of product revenue||1,498||506||2,132||778|
|Research and development||10,815||17,636||24,882||31,436|
|Selling, general and administrative||29,573||36,812||63,762||67,627|
|Total operating expenses||51,563||61,525||112,135||117,792|
|Loss from operations||(31,095||)||(47,381||)||(71,288||)||(80,668||)|
|Interest income and other, net||5,798||838||10,723||1,047|
|Change in fair value of warrant liabilities||527||14,536||1,580||27,176|
|Change in fair value of earn-out liability||—||9,027||15||25,489|
|Total other income||6,325||24,401||12,318||53,712|
|Net loss before income tax benefit (provision)||$||(24,770||)||$||(22,980||)||$||(58,970||)||$||(26,956||)|
|Income tax benefit (provision)||(2||)||(5||)||(4||)||(8||)|
|Other comprehensive income (loss)|
|Net unrealized gain (loss) on available-for-sale securities||177||(209||)||528||(861||)|
|Foreign currency translation loss||4||(11||)||2||(14||)|
|Total other comprehensive income (loss)||$||181||$||(220||)||$||530||$||(875||)|
|Net loss per share, basic and diluted||$||(0.13||)||$||(0.13||)||$||(0.32||)||$||(0.15||)|
|Weighted-average shares used to compute net loss per share, basic and diluted||186,741,112||183,143,391||186,633,391||182,599,949|
Condensed Consolidated Balance Sheets
(in thousands, except share data)
|Cash and cash equivalents||$||354,544||$||421,830|
|Accounts receivable, net||21,750||17,006|
|Deferred costs of services||440||1,337|
|Prepaid expenses and other current assets||4,760||9,873|
|Total current assets||516,263||581,701|
|Accounts receivable, net of current portion||9,041||9,284|
|Property and equipment, net||18,668||19,564|
|Other long-term assets||4,379||5,083|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Other current liabilities||2,413||2,477|
|Total current liabilities||31,501||43,332|
|Deferred revenue, net of current portion||31,207||31,732|
|Other long-term liabilities||5,253||5,539|
|Commitments and contingencies|
|Preferred stock, $0.0001 par value; 1,000,000 shares authorized; no shares issued and outstanding at June 30, 2023 and December 31, 2022||—||—|
|Common stock, $0.0001 par value; 600,000,000 shares authorized; 188,071,445 and 187,647,973 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively||19||19|
|Additional paid-in capital||1,182,645||1,171,122|
|Accumulated other comprehensive income (loss)||17||(513||)|
|Total stockholders’ equity||515,152||562,558|
|Total liabilities and stockholders’ equity||$||585,746||$||647,374|
Reconciliation of net loss in accordance with GAAP to non-GAAP adjusted EBITDA
|Three Months Ended June 30,||Six Months Ended June 30,|
|Adjustments to reconcile to EBITDA:|
|Interest income and other, net||(5,798||)||(838||)||(10,723||)||(1,047||)|
|Income tax provision||2||5||4||8|
|Depreciation and amortization||1,890||963||3,644||1,718|
|Adjustments to reconcile to Adjusted EBITDA:|
|Change in fair value of warrant liabilities (1)||(527||)||(14,536||)||(1,580||)||(27,176||)|
|Change in fair value of earn-out liability (2)||—||(9,027||)||(15||)||(25,489||)|
|Stock compensation expense related to equity modifications (3)||272||—||1,224||—|
|Restructuring charges (4)||59||—||1,100||—|
|(1)||Represents change in fair value of warrant liabilities.|
|(2)||Represents change in fair value of earn-out liability.|
|(3)||Represents stock-based compensation expense related to equity award modifications that occurred separately from our Strategic Reorganization.|
|(4)||Represents restructuring charges related to the Strategic Reorganization consisting of severance costs, other termination benefit costs, and non-cash stock-based compensation expense.|