Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $40.8 million, a decrease of 10% year-over-year, attributed to a challenging market environment and elevated backlog from the previous year [10][29] - Non-GAAP gross margins were 53.2%, down from 56.2% in Q1 2024, impacted by lower volume and price realization [33] - The net loss for the quarter was $26 million, an improvement from a net loss of $32.2 million in Q1 2024, representing a 19% improvement [35] - Adjusted EBITDA loss improved to $16.9 million from $23.7 million year-over-year, a 29% improvement [35] Business Line Data and Key Metrics Changes - Consumables revenue was $14.5 million, down 16% year-over-year, primarily due to lower volumes in the Americas Academia segment [29] - Instruments revenue increased by 24% year-over-year to $7.8 million, driven by strong sales in spatial proteomics, particularly the Hyperion XTI [30] - Services revenue, including lab and field services, was $17.6 million, down 16% year-over-year, with lab services declining by 19% due to backlog gaps [31] Market Data and Key Metrics Changes - The Americas market is expected to see a mid-teens percentage decline in academic revenue, reflecting ongoing funding uncertainties [11][37] - International markets and biopharma engagement remain resilient, with continued traction noted in these segments [11] Company Strategy and Development Direction - The company is focused on high precision proteomics and expanding its distributed offerings through partnerships, particularly with Illumina, to enhance market leadership [25][66] - A disciplined M&A strategy is in place, with a focus on consolidating technologies and optimizing operations to drive growth [26][49] - The company aims to reach adjusted EBITDA positive by 2026 while maintaining a healthy cash position of $261 million with no material debt [14][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a dynamic operating environment but emphasizes a strong internal position with a diversified portfolio and disciplined operating model [8][12] - The company remains committed to long-term profitable revenue growth and increasing shareholder value despite macroeconomic challenges [38] Other Important Information - The company has operationalized $90 million in annualized cost reductions since the merger with SomaLogic, which is crucial for navigating current uncertainties [34] - New product launches at the AACR conference included three new offerings aimed at enhancing the company's service portfolio [20] Q&A Session Summary Question: Guidance on revenue weighting for the year - Management indicated that the revenue is expected to be back half weighted, driven by larger projects in the internal funnel [42][44] Question: Instrument demand and sales funnel outlook - The company is encouraged by growth in the sales funnel, particularly for the Hyperion XTI, but remains cautious about declaring victory [45][46] Question: Update on M&A pipeline and timing - The company remains committed to a disciplined M&A strategy, with a healthy cash position allowing for strategic acquisitions [49] Question: Trends in U.S. Academic and government demand - Management confirmed ongoing challenges in U.S. Academia, maintaining guidance for a mid-teens decline in revenue [52][56] Question: Feedback on new product launches - Initial feedback on new single soma reagents is positive, with expectations for long-term growth potential in this area [58][62] Question: Revenue expectations from the Illumina partnership - While cautious for 2025, management sees long-term potential for significant revenue growth from the Illumina partnership [65][67]

Financial Data and Key Metrics Changes - Total operating expenses for Q4 2024 were $20.0 million, roughly equal to Q4 2023 and $0.9 million above the previous quarter [35] - Net loss for Q4 2024 was $17.6 million compared to $17.0 million in the prior-year period [36] - For fiscal year 2024, net loss was $70.8 million, an increase of 11% year-over-year from $63.7 million in fiscal year 2023 [37] Business Line Data and Key Metrics Changes - Research and development expenses in Q4 2024 were $12.8 million compared to $12.5 million in the prior-year period, while general and administrative expenses were $7.2 million in Q4 2024 compared to $7.5 million in the prior-year period [36] - Operating expenses for fiscal year 2024 were $81.5 million, an increase of 7% from $76.2 million in fiscal year 2023 [37] Market Data and Key Metrics Changes - The company ended the year with approximately $206 million in cash, cash equivalents, and investments compared to $264 million at the end of the previous year [39] Company Strategy and Development Direction - The company now expects the launch of its proteome analysis platform to occur in late 2026, focusing on reducing technical risk and maximizing performance [29][33] - The company plans to engage in significant partnerships to explore tau proteoform landscapes and aims to provide leading researchers access to its platform for tau proteoform-related studies in 2025 [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver a game-changing product to the market, emphasizing the importance of rigorous financial discipline and operational adjustments to extend the cash runway through 2027 [33][41] - The company anticipates that 2025 will be a pivotal year for applying the platform's capabilities to important questions about tau proteoforms in Alzheimer's disease [30] Other Important Information - The company reduced its headcount by approximately 16% to align resources with development goals and extend its cash runway [33][38] - The company is focused on optimizing assay configurations and surface chemistry to enhance the performance of its platform [29][55] Q&A Session Summary Question: Could you elaborate on your plan to modify the assay configuration and surface chemistry? - Management explained that the modifications aim to enhance specific binding of affinity reagents to proteins and differentiate non-specific binding, addressing issues related to probe labeling and surface chemistry [48][49][52] Question: Does the planned change impact the cost structure of the platform? - Management indicated that the changes may have a positive impact on the consumable side and that the previously mentioned pricing of approximately $1 million for the instrument remains valid [54][55] Question: What are the key milestones and timing over 2025 and into 2026? - Management outlined milestones including providing access to the platform for tau proteoform studies, signing partnerships, and decoding a significant number of proteins from complex samples [82][84] Question: How does your platform's performance compare to other tau protein platforms? - Management highlighted that their platform uniquely measures proteoforms in high throughput and sensitivity, allowing for detailed insights into Alzheimer's disease [89][92] Question: Is the late 2026 launch for both broadscale discovery and targeted platforms? - Management clarified that both modalities are heading to market with different strategies, with broadscale discovery launching commercially in late 2026 while proteoform capabilities will be introduced through partnerships [95][100]