SomaLogic, Inc.

Revenue for the third quarter of 2023 was $22 million versus $41.7 million in Q3 2022, a 47% decline on a GAAP basis. Excluding $22.3 million of NEB royalty revenue in Q3 2022, revenue increased 14% year over year. Gross margin was 47.2% versus 72% a year ago; excluding the NEB royalty revenue, gross margin increased 7.4% year over year. Total operating expenses were $38.5 million, down 46% from $70.7 million a year ago, and adjusted EBITDA was a loss of $20.1 million versus a loss of $30.2 million in Q3 2022. The company ended the quarter with $454 million of cash, cash equivalents and short-term investments, had $20 million of cash burn in the quarter, and expects to end 2023 with about $430 million in cash. Full-year 2023 revenue guidance was raised to $82 million-$85 million from $80 million-$84 million, while full-year gross margins are still expected in the mid-40% range.

Adam Taich framed the quarter as another step forward commercially, emphasizing stronger adoption of SomaScan, progress in Europe and Asia Pacific through authorized sites, and early momentum in the Illumina partnership. He also highlighted the launch of the 11K SomaScan assay as the largest proteomics offering on the market and said the broader platform should improve discovery in translational medicine. His tone was constructive and upbeat, with repeated emphasis on the company’s path to scale and cash flow breakeven through the pending Standard BioTools merger.

Eliot Lurier focused on the mechanics of the quarter: revenue of $22 million, gross margin of 47.2%, and operating expenses of $38.5 million, down materially year over year. He said authorized-site product revenue rose by about $2.5 million versus Q3 2022 and by $0.5 million sequentially, and noted adjusted EBITDA loss improved to $20.1 million. He also highlighted $454 million in ending cash, $20 million of quarterly cash burn, and an expected year-end cash balance of roughly $430 million, implying lower burn than originally guided.

Analysts asked about demand by customer segment, the pace and activity level at authorized sites, and what drove the raised revenue outlook. Management said growth is strong in both customer segments but is accelerating more deeply in biopharma, while also seeing clinical discussions tied to therapeutic areas like GLP-1s. On authorized sites, management said activity is strong and that more sites should support broader and more predictable revenue; on guidance, they said the raise was fairly broad-based and that Q4 should look more like Q3.