Seer(US:SEER)2022-08-13 17:24Financial Data and Key Metrics Changes - Total revenue for Q2 2022 was $3.6 million, representing a 171% increase compared to $1.3 million in Q2 2021, primarily due to increased sales of the Proteograph Product Suite [42][48] - Total gross profit was $1.6 million for Q2 2022, with a gross margin of 44%, and long-term gross margins are targeted between 70% and 75% [44][48] - Net loss for Q2 2022 was $22.8 million, compared to $16.6 million in Q2 2021, with cash and equivalents at approximately $456.1 million [48] Business Line Data and Key Metrics Changes - Product-related revenue for Q2 2022 was $3.5 million, including $1.1 million from related-party revenue, which represents sales to PrognomIQ [43] - Research and development expenses increased by 57% to $10.9 million in Q2 2022, driven by product development efforts related to the Proteograph Product Suite [46] - Selling, general and administrative expenses rose by 35% to $14.2 million in Q2 2022, primarily due to increased employee compensation and professional services [47] Market Data and Key Metrics Changes - The company is seeing strong interest across geographies, with a balanced pipeline of qualified leads between academic and commercial customers [29] - Despite COVID-related risks and supply chain uncertainties, the installed base of the Proteograph Product Suite increased across North America, Europe, and Asia [30] Company Strategy and Development Direction - The company aims to support customers with an industry-leading experience, expand its global customer network, and drive product development for the Proteograph Product Suite [12] - The Proteogenomics Consortium partnership aims to enhance proteogenomic capabilities and expand customer access to deep unbiased proteomics [33] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about navigating complexities related to COVID and macroeconomic conditions but is encouraged by customer feedback and pipeline quality [49] - The company expects revenue for 2022 to be in the range of $14 million to $16 million, focusing on long-term business building and strategic objectives [50] Other Important Information - The Proteograph Product Suite is enabling new approaches to proteomics, allowing researchers to access low-abundance proteins and identify novel biomarkers [15][22] - The recent launch of the Proteograph Analysis Suite 2.0 (PAS 2.0) is expected to simplify workflows and enhance customer experience [37] Q&A Session Summary Question: What is the reorder time for customers after experiments? - The turnaround time varies by customer type, with initial small studies leading to larger sample studies, typically taking a quarter for completion [56][60] Question: Is the $1.1 million run rate from PrognomIQ sustainable? - PrognomIQ's related-party revenue has been consistent, and while it is expected to continue in the short term, it may trend down as the non-PrognomIQ customer base grows [64][66] Question: What were the number of units sold in the quarter? - The company does not disclose quarterly unit sales but will provide year-end figures [68] Question: Any early feedback on PAS 2.0 and its impact on sales cycles? - Early feedback on PAS 2.0 has been positive, but it is not expected to materially impact revenue for the current year [75] Question: Have there been any delays in customer purchases due to the economy? - There have been no material pushbacks in purchasing decisions, and the company has managed to execute well despite external challenges [80] Question: What key publications should be expected? - The company anticipates an increase in presentations and publications in the second half of 2022, which are expected to drive adoption [86][87]