8-K: Seer Inc. Reports Third Quarter 2024 Financial Results, Announces Thermo Fisher Partnership

Seer Inc. announced its third quarter 2024 financial results, including a new co-marketing agreement with Thermo Fisher Scientific and a revenue of $4.0 million.

Summary

• Seer, Inc. reported a revenue of $4.0 million for the third quarter of 2024, a 3% decrease compared to the same period last year.
• Product revenue was $3.1 million, which included $180 thousand from related parties, and service revenue was $847 thousand, including $186 thousand from related parties.
• The company's gross profit was $1.9 million with a gross margin of 48%.
• Operating expenses decreased by 6% to $26.3 million, primarily due to lower employee and stock-based compensation expenses.
• Seer's net loss for the quarter was $21.3 million, slightly higher than the $21.1 million loss in the same quarter of the previous year.
• The company ended the quarter with approximately $312 million in cash, cash equivalents, and investments.
• Seer reaffirmed its full-year 2024 revenue guidance to be in the range of $13 to $15 million.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive due to the strategic partnership with Thermo Fisher Scientific and share repurchases, but tempered by the revenue decrease and continued net losses.

Positives

• Seer entered into a co-marketing and sales agreement with Thermo Fisher Scientific, which is expected to expand global reach.
• The company saw continued strong interest in its STAC program.
• Operating expenses decreased by 6% compared to the same period last year.
• Seer repurchased 3.7 million shares of its own stock, indicating confidence in the company's value.
• The company maintains a strong cash position with $312 million in cash, cash equivalents and investments.

Negatives

• Revenue decreased by 3% compared to the same quarter last year, primarily due to a decrease in related party and grant revenue.
• The company reported a net loss of $21.3 million for the quarter.
• Related party revenue decreased significantly compared to the prior year.

Risks

• The company's revenue is subject to fluctuations, as seen by the decrease in related party and grant revenue.
• Seer continues to operate at a loss, with a net loss of $21.3 million for the quarter.
• The company's future performance is subject to risks and uncertainties as detailed in their SEC filings.

Future Outlook

Seer continues to expect full year 2024 revenue to be in the range of $13 to $15 million.

Management Comments

• Omid Farokhzad, Chair and CEO of Seer, stated that they are continuing to drive adoption of the Proteograph Product Suite.
• Omid Farokhzad expressed excitement about the partnership with Thermo Fisher Scientific.
• Omid Farokhzad is incredibly bullish on the long-term value of Seer's technology.

Industry Context

The partnership with Thermo Fisher Scientific is a significant move for Seer, aligning its proteomics platform with a major player in the life sciences industry. This collaboration could enhance Seer's market reach and adoption of its technology.

Comparison to Industry Standards

• Seer's revenue of $4.0 million is relatively low compared to established life science companies, but it is typical for a company in its growth phase.
• The gross margin of 48% is within the expected range for a company selling both products and services in the life sciences sector.
• The net loss of $21.3 million is not unusual for a company investing heavily in research and development and commercialization.
• Companies like Pacific Biosciences and 10x Genomics, which are also in the genomics and proteomics space, have similar patterns of revenue growth and losses during their early stages.

Related Party Transactions

• Related party revenue was $180 thousand for product sales and $186 thousand for service revenue in the third quarter of 2024.

Stakeholder Impact

• Shareholders may be concerned about the decrease in revenue and continued net losses.
• The partnership with Thermo Fisher Scientific could be seen as a positive development for shareholders.
• Employees may be affected by the decrease in operating expenses, particularly in employee compensation.
• Customers may benefit from the expanded access to Seer's technology through the Thermo Fisher Scientific partnership.

Next Steps

• Seer will continue to drive adoption of the Proteograph Product Suite.
• The company will focus on the co-marketing and sales agreement with Thermo Fisher Scientific.
• Seer will host a conference call to discuss the third quarter 2024 financial results on November 6, 2024.

Key Dates

Keywords

Proteomics, Proteograph Product Suite, Thermo Fisher Scientific, Life Sciences, Financial Results, Revenue, STAC, Share Repurchase, Operating Expenses, Net Loss