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 [9][29] - Non-GAAP gross margins were 53.2%, down from 56.2% in Q1 2024, impacted by lower volume and price realization [32] - 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 [34] - Adjusted EBITDA loss improved to $16.9 million from $23.7 million year-over-year, a 29% improvement [34] 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][30] - Instruments revenue increased by 24% year-over-year to $7.8 million, driven by strong demand for spatial proteomics products [30][32] - 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][32] Market Data and Key Metrics Changes - The Americas market is experiencing a mid-teens percentage decline in academic revenue, with a high single-digit million dollar impact expected [10][36] - International markets and biopharma engagement remain resilient, with continued traction noted in these segments [10][11] Company Strategy and Development Direction - The company is focused on high precision proteomics and expanding its distributed offerings through partnerships, particularly with Illumina [25][66] - A disciplined M&A strategy is in place, with a focus on consolidating the market and leveraging operational synergies [26][48] - The company aims to reach adjusted EBITDA positive by 2026 while maintaining a healthy cash position of $261 million with no material debt [13][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][14] - The company expects the second half of 2025 to be back-weighted in terms of revenue, driven by larger projects in the sales funnel [42][36] - Management remains cautious about the impact of tariffs and macroeconomic conditions but believes they can manage these challenges effectively [11][36] 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 [33] - New product launches at the AACR conference included three new offerings aimed at enhancing the company's market position in proteomics [19][20] Q&A Session Summary Question: Guidance on revenue weighting for 2025 - Management indicated that the revenue is expected to be back half weighted, driven by larger projects in the sales funnel [42] Question: Instrument demand and sales funnel outlook - Management expressed encouragement regarding growth in the sales funnel, particularly for the Hyperion XTI, but refrained from declaring victory due to market uncertainties [43][44] Question: Update on U.S. Academic and government demand - Management confirmed a mid-teens decline in U.S. Academic revenue, with some delays in consumables orders due to funding uncertainties [51][54] Question: Feedback on new product launches - Management noted that the new single soma reagents are now fully available, with expectations for significant long-term opportunities despite initial cautious sales expectations [60][62] Question: Illumina partnership revenue expectations - Management is optimistic about the long-term potential of the Illumina partnership but cautioned that significant revenue growth is not expected in 2025 [65][68] Question: Biopharmaceutical market conditions - Management reported good traction in the biopharma sector, with healthy growth in the sales funnel beyond large customers [69] Question: Impact of cost reduction actions on EBITDA outlook - Management indicated that the recent cost reduction actions would contribute to an improved outlook for adjusted EBITDA losses [70]