Seer(US:SEER)2022-05-07 03:01Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $3.3 million, a significant increase from $62,000 in Q1 2021, primarily due to increased sales of the Proteograph Product Suite [41] - Gross profit for Q1 2022 was $1.2 million, resulting in a gross margin of 38% [42] - Net loss for Q1 2022 was $23.6 million, compared to a net loss of $16.4 million in Q1 2021 [45] - The company ended the quarter with approximately $472 million in cash, cash equivalents, and investments [45] Business Line Data and Key Metrics Changes - Product-related revenue for Q1 2022 was $3.2 million, including $1.1 million from related party revenue, which consisted of sales of SP100 instruments, consumable kits, and platform evaluations [41] - Research and development expenses increased by 73% to $10.7 million in Q1 2022, driven by product development efforts related to the Proteograph Product Suite [44] - Selling, general, and administrative expenses rose by 39% to $14.3 million in Q1 2022, primarily due to increased employee compensation and costs related to being a publicly traded company [44] Market Data and Key Metrics Changes - The company has customers across North America, Europe, and Asia, including China, where COVID constraints are being navigated [25] - The demand funnel remains approximately 50-50 between academic and biopharma customers, with a heavier weighting toward commercial sales [52][54] Company Strategy and Development Direction - The company is focused on five key objectives for growth in 2022: enhancing customer onboarding, expanding the installed base, building commercial capabilities, driving product roadmap advancements, and expanding partnership efforts [12] - The company aims to achieve long-term gross margins between 70% and 75% despite anticipated short-term dampening due to a higher percentage of instrument sales [42] - The Proteograph Product Suite is positioned as a definitive tool leader in proteomics, with ongoing advancements expected to enhance its capabilities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity for the Proteograph Product Suite, expecting revenue in the range of $14 million to $16 million for 2022, with a heavier weighting towards the back half of the year [46] - The company is focused on building market awareness and educating potential customers about the technology's capabilities [47] - Management emphasized the importance of third-party data in the sales process and expects the adoption curve to grow as more data becomes available [29] Other Important Information - The company has made significant progress in attracting top talent, expanding its team across key functions to support a diverse customer base [32] - A seminal paper published in the Proceedings of the National Academy of Sciences highlights the technology's ability to enhance protein sampling and coverage [35][37] Q&A Session Summary Question: Trends in commercial sales and biopharma customer cycles - Management confirmed that sales are more heavily weighted toward commercial customers and that this trend is expected to continue [52][53] Question: Demand funnel between academic and biopharma customers - Management indicated that the demand funnel remains approximately 50-50 between academic and biopharma customers [54] Question: Progress on product roadmap initiatives - Management stated that updates on increasing throughput and content will be provided in the second half of the year, with at least one new product expected [56] Question: Cash balance expectations for 2022 - The company ended Q1 2022 with $472 million in cash and feels confident about its cash position for the rest of the year [61][63] Question: Operating expenses pacing for the year - Management reiterated that operating expenses will increase alongside revenue, with a focus on prudent spending [66] Question: Go-to-market strategy and customer engagement - Management outlined a phased commercialization strategy and noted that customer acceptance of the technology has been positive [82]