Q4 2023 Seer Inc Earnings Call

Okay.

Operator: Thank you for standing by, and welcome to this year's fourth quarter 2023 earnings conference call at this time. All participants are in listen only mode after the speaker's presentation.

Thank you for standing by and welcome to this year fourth quarter 2023 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press star one on your telephone. If your question has been answered and you'd like to them.

Operator: There will be a question and answer session. To ask a question during this session, you'll need to press star 1, 1 on your telephone. If your question has been answered, and you'd like to remove yourself from the queue, simply press star 1, 1 again as a reminder.

For yourself from the queue simply press Star one again as a reminder, today's program is being recorded and now I'd like to introduce your host for today's program Carrie Mendivil Investor Relations.

Carrie Mendivil: Today's program is being recorded, and now I'd like to introduce your host for today's program, Carrie Mendivil, Director of Investor Relations. Thank you. Earlier today, Seer released financial results for the quarter and year ended December 31st, 2023. If you've not received this news release, or if you'd like to be added to the company's distribution list, please send an email to investor@seer.bio. Joining me today from Seer are Omid Farokhzad, Chief Executive Officer and Chair, and David Horn, Chief Financial Officer and President. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to be materially different from those anticipated.

Thank you.

Earlier today <unk> released financial results for the quarter and year ended December 31, 2023. If you have not received this news release or if you'd like to be added to the Companys distribution list. Please send an email to investor at <unk> Dot bio joining me today from CR is Amit <unk>, Chief Executive Officer, and chair and David Horn, Chief Financial Officer and President.

Before we begin I'd like to remind you that management will make statements. During this call that are forward looking statements within the meaning of federal Securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ.

From those anticipated.

Carrie Mendivil: Additional information regarding these risks and uncertainties appears in the section entitled Forward-Looking Statements in the press release here issued today. For a more complete list and description, please see the Risk Factors section of the company's quarterly report on Form 10-K for the year ended December 31, 2023, and its other filings, disputes, and exchanges. Except as required by law, Seer disclaims any intention or obligation to update or revise any financial projections or forward-looking statements.

For information regarding these risks and uncertainties appears in the section entitled forward looking statements in the press release issued today for a more complete list and description. Please see the risk factors section of the company's quarterly report on Form 10-K for the year ended December 31 2023.

Its other filings with the Securities and Exchange Commission.

Except as required by law <unk> disclaims any intention or obligation to update or revise any financial projections or forward looking statements because of new information future events or otherwise.

Carrie Mendivil: They're because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast, February 29, 2024. With that, I'd like to turn the call over to Omid.

This conference call contains time sensitive information and is accurate only as of the live broadcast February 29, 2024 with that I'd like to turn the call over to Amit.

Omid C. Farokhzad: Thanks, Carrie, and thank you, everyone, for joining us this afternoon. I will begin our call today by providing updates on our recent progress, including some exciting customer data. Looking ahead, we're laser-focused on converting these incredible biological insights into accelerated commercial adoption, and I will share the actions we're taking to make this happen. I will then turn the call over to David to provide more detail on our financial results for 2023 and the revenue outlook for 2024. In 2023, we grew revenue 8% to $16.7 million and ended the year with over $373 million in cash, cash equivalents, and investments.

Thanks, Carrie and thank you everyone for joining us. This afternoon I will begin our call today by providing updates on our recent progress.

Including some exciting customer data.

Looking ahead, we are laser focused on converting these incredible biological insights into accelerated commercial adoption and I will share the actions, we're taking to make this happen.

I will then turn the call over to David.

To provide more detail on our financial results for 2023, and the revenue outlook puts likely 'twenty four.

In 2023, we grew revenue, 8% to $16 $7 million and ended the year with over $373 million in cash cash equivalents and investments.

Omid C. Farokhzad: As the body of biological insights and data grows, I expect adoption and revenue will become more aligned with our expectations. Our mission at Seer is to bring the power of unbiased proteomics to researchers around the globe. To achieve this, we need to open up a new gateway to the proteome to enable the next frontier in biology to be explored.

As the body of biological insights and data growth I expect adoption and revenue will become more aligned with our expectations.

Our mission at tier is to bring the power of unbiased proteomics researchers around the globe.

To achieve this we need to open up a new gateway to the proteome to enable the next frontier in biology to be explored.

Changing the status quo in this way is an enormous undertaking when we first introduced the protium <unk> product suite for unbiased deep proteomics at scale.

Omid C. Farokhzad: When we first introduced the Proteograph product suite for unbiased, deep proteomics at scale, there was a huge mountain to climb in terms of market development and education. Over the course of this past year, we made important progress in climbing this mountain. I'm deeply proud of our team's work, and yet there is still much work to be done to translate the incredible performance we're seeing from the proteograph into widespread commercial adoption. Our customers have started to demonstrate the powerful biological insights from the proteograph, and this data is nothing short of incredible. Most recently, we saw our first customer study published in Nature Communications.

There was a huge mountain to climb in terms of market development and education.

Over the course of this past year, we made important progress in.

And climbing this mountain.

I am deeply proud of our team's work and yet there is still much work to be done to translate the incredible performance, we're seeing from the project graph into widespread commercial adoption.

Our customers have started to demonstrate the powerful biological insights from the project graph and this data is nothing short of incredible. Most recently, we saw our first customer study published in nature Communications.

Omid C. Farokhzad: Given the unique insights that Proteograph is enabling relative to other proteomics platforms, we expect several more publications in high-impact journals throughout the year. This will be critical for us to reach an inflection point for widespread adoption and revenue growth. We remain laser-focused on developing and enhancing our technology, removing barriers to adoption, and expanding our commercial reach. Over the past year, we made a number of important advancements to our technology. In June, we launched our Proteograph XT assay kit, and the feedback has been fantastic. Since its launch, we have upgraded over half of our customer base to run the new AXA kit. XT improves the throughput of our initial assay and reduces the mass spec time for a sample by 2.5-fold without sacrificing depth.

Given the unique insights that project graph is enabling relative to other proteomics platform. We expect several more publications in high impact journals throughout the year.

This will be critical for us to reach an inflection point for widespread adoption and revenue growth.

We remain laser focused on developing and enhancing our technology, removing barriers to adoption and expanding our commercial reach.

Over the past year, we made a number of important advancements to our technology.

In June we launched a photograph X gene assay kit and the feedback has been fantastic.

Since its launch we have upgraded over half of our customer base to run the new assay kit.

<unk> improved the throughput our initial assay and reduces the mass spec time for example by two five fold without sacrificing depth.

Omid C. Farokhzad: The efficiency allows a single technician to handle hundreds of samples per week and approximately 10,000 samples annually with just one proteograph XC and a leading mass spectrometer. We also made important improvements to our proteograph analysis suite, or PAS, to provide biologists access to an understanding of deep, unbiased proteomics readily and easily for any application they choose, including proteogenomics analysis. We made significant updates to the quality and quantity of protein and peptide identifications you can get from PAS and re-engineered our mass spec analysis workflow to leverage cutting-edge analysis advancements at scale. And finally, last month, we made our Protein Discovery Catalog available to our customers, prospective customers, and interested parties, with over 10,000 proteins in plasma across 1,900 pathways that can be detected and interrogated using the proteograph. This provides our first published index of the unprecedented depth of empirically observed proteins captured by our nanoparticle technology to date.

The efficiency allows a single technician to handle hundreds of samples per week and approximately 10000 samples annually with just one geographic SP and our leading mass spec instrument.

We also made important improvement to our project graph analysis suite or Pos.

To provide biologists access to an understanding of deep.

Bias towards the oil mix readily and easily for any application they choose including Proteus genomics analysis.

We made significant updates on the quality and quantity of protein and peptide identification you can get from past and Reengineered, our mass spec analysis workflow to leverage cutting edge analysis advancements at scale.

And finally last month, we made our protein discovery catalog available to our customers prospective customers and interested parties.

With over 10000 proteins in plasma across 1900 pathways that can be detected and interrogated using the polio graph.

This provides our first published index of the unprecedented depth of empirically observed proteins captured by a nanoparticle technology to date.

The catalog includes proteins into over 115000 peptides that can serve as data points for potential biomarkers, including proteins, not yet associated with diseases, making it a rich source of biological insights.

We look forward to expanding this library overtime as more samples are interrogated by the Protium draft platform, a more mass spec based proteomics data becomes available.

Omid C. Farokhzad: The catalog includes proteins linked to over 150,000 peptides that can serve as data points for potential biomarkers, including proteins not yet associated with diseases, making it a rich source of biological insight. We look forward to expanding this library over time as more samples are interrogated by the Proteograph platform and more mass spectrometric data becomes available. We also made important strides removing barriers to improve access.

We also made important strides removing barriers to improve access.

We launched this year technology access center or stack, which allows the portio graph user to run samples in their own lab and have you run the math back or Alternatively provide end to end study of services from study two sample.

We are seeing strong demand for stock with 48 organizations using this service as of year end, including large pharmaceutical companies.

Omid C. Farokhzad: We launched the Seer Technology Access Center, or STAC, which allows a proteograph user to run samples in their own lab and have Seer run the mass spec, or alternatively, provide end-to-end study services from study to sample. We have seen strong demand for SAC, with 48 organizations using the service as of year end, including large pharmaceutical companies. Revenue from STAC grew significantly quarter over quarter. In the fourth quarter, STAC revenue was the vast majority of services revenue.

Revenue from stack grew significantly quarter over quarter in the fourth quarter stock revenue was the vast majority of services revenue.

We also introduced the strategic instrument placement program or Sip to allow researchers to begin using the product graph right away, while utilizing available operating budgets.

This not only removes another barrier to access but also facilitates data generation that will help secure the necessary funding in samples for more extensive and impactful studies in the future.

And finally last November we expanded our centers of Excellence program with the addition of panel Bio Award class Metabo low mix of service provider with expertise in mass spec.

Omid C. Farokhzad: We also introduced the Strategic Instrument Placement Program, or SIPP, to allow researchers to begin using the protograph right away by utilizing available operating budget. This not only removes another barrier to access but also facilitates data generation that will help secure the necessary funding and samples for more extensive and impactful studies in the future. And finally, last November, we expanded our Centers of Excellence programs with the addition of PanoBio, a world-class metabolomics service provider with expertise in mass spectrometry. By combining deep proteomic insights at the peptide level with the proprietary metabolomics workflow, Pano-On-Bio will enable unique studies with robust pathways analysis to significantly advance research in biomarker discovery and drug development.

By combining deep proteomic insights at the peptide level with their proprietary metabolomics workflow panel buyer will enable unique studies with robust pathways analysis to significantly advance research in biomarker discovery and drug development.

As we have said the combination of our novel technology. The paucity of peer reviewed publication as well as conservative budgeting continues to drive.

Elongated sales cycles for the paragraph.

That said, we're seeing great interest in stack with a robust pipeline of opportunities, indicating this was an important step in enabling access to the photograph technology.

Stock has helped us secure foothold with several large pharma companies were starting to see momentum and usage of these large pharma customers with strong ordering and some outsourcing additional work due to internal demand.

Omid C. Farokhzad: As we have said, the combination of our novel technology, the paucity of peer-reviewed publications, as well as conservative budgeting continues to drive an elongated sales cycle for the proteograph. That said, we're seeing great interest in the stack with a robust pipeline of opportunities, indicating this was an important step in enabling access to the Portugraph technology. Stack has helped us secure a foothold with several large pharma companies. We're starting to see momentum in usage of these large pharma customers with strong ordering and some outsourcing additional work due to internal demand. These customers have the funding, samples, and motivation to adopt our technology and advance their biological discovery. We expect this program to continue to be an important driver for adoption from these types of customers.

These customers have the funding samples and motivation to adopt our technology and advanced biological discovery. We expect this program to continue to be an important driver for adoption from these types of customers.

As we continue to educate the market on the value of the Proto graph, we have started to see potential customers previously on the sidelines turning to strong advocate once they have seen the data and the insights that the project graph can provide I remain convinced.

Convinced that once our technology becomes increasingly accessible to a broader research community our market development efforts will pay off and we will see an inflection point in adoption the size of studies and ultimately revenue.

Throughout the year, we made great progress validating our technology and expanding our commercial reach.

We on boarded four new distributors and partners in Australia, Eastern Europe, Israel and Japan.

Omid C. Farokhzad: As we continue to educate the market on the value of the protograph, we have started to see potential customers previously on the sidelines turning into strong advocates once they have seen the data and the insights that the protograph can provide. I remain convinced that once our technology becomes increasingly accessible to the broader research community, our market development efforts will pay off, and we will see an inflection point in adoption, the size of studies, and ultimately revenue. Throughout the year, we made great progress in validating our technology and expanding our commercial reach. We onboarded four new distributors and partners in Australia, Eastern Europe, Israel, and Japan.

We obtained ISO 27001 certification, increasing our information security and cyber security standards, making us more effective with stack in our labs and collaborations and forming a bridge for general data protection regulation or GDP or comply.

For our European customers.

We also received ISO 13485 certification, establishing the processes people and systems for quality management.

The ground work for the creation of the highest quality reliable solutions and enabling the utilization of our products and FDA submissions.

We have also seen a growing validation of our technology, both from <unk> and customer publication.

Omid C. Farokhzad: We obtained ISO 27001 certification, increasing our information security and cybersecurity standards, making us more effective with stack in our labs and collaborations, and forming a bridge for General Data Protection Regulation, or GDPR, compliance for our European customers. We also received ISO 13485 certification, establishing the processes, people, and systems for quality management, and laying the groundwork for the creation of the highest quality, reliable solutions and enabling the utilization of our products in FDA submissions. We have also seen growing validation of our technology, both from Seer and customer publications. Since the beginning of 2022, we have published several high-impact peer-reviewed papers on our differentiated proprietary engineered nanoparticle technology.

Since the beginning of 2022, we have published several high impact peer reviewed papers on our differentiated proprietary engineered nanoparticle technology <unk>.

These publications demonstrate how our project to our product suite workflow has superior performance in terms of precision depth and throughput compared to conventional workflows and can identify undiscovered links between health and disease App peptide level resolution that Kevin.

Emanate the rollout protein variance.

We've consistently said that one of the most important drivers of adoption will be the validation of our technology with third party data.

In addition to our publications, we're aware of 180 public presentations to date, and 48 posters and presentations by customers.

To date, we have eight pre prints for peer reviewed publications and one peer reviewed customer publications showcasing the value of sphere technology.

Omid C. Farokhzad: These publications demonstrate how our ProteoGraft product suite workflow has superior performance in terms of precision, depth, and throughput compared to conventional workflows and can identify undiscovered links between health and disease at peptide-level resolution that can illuminate the role of protein variants. We've consistently said that one of the most important drivers of adoption would be the validation of our technology with third-party data. In addition to our publications, we're aware of 180 public presentations to date and 48 posters and presentations by customers. To date, we have eight preprints, four peer-reviewed Seer publications, and one peer-reviewed customer publication showcasing the value of Seer technology. We expect to see the number of peer-reviewed publications grow throughout the year. In January, Prognomic demonstrated the largest deep multiomic study completed to date in its preprint article in MedArchive. This study involved 2,513 individuals, including patients with all stages of lung cancer, comorbid controls, and healthy subjects.

We expect to see the number of peer reviewed publications growth throughout the year.

In January <unk> demonstrated the largest deep multi omics study completed to date and the preprint article and met archive.

This study involved 2513 individuals including patients with all stages of lung cancer co morbid controls and the healthy subjects.

Utilizing the protium graph for the Proteomic portion of this study they were able to measure over 8300 proteins, which were then combined with over 200000, R&D transcripts and 1000 metabolized measurements to drive multi omics classifier.

This classifier represents a potentially best in class performance.

By achieving a sensitivity of 80% for stage, one and 89% for all stages of lung cancer at 89% specificity.

Also in January a second manuscript was made available on bio archive and will be submitted for peer reviewed publication.

This study was a collaboration between Alzheimer's disease luminaries from MGH and mass Gen Institute for newer degenerative diseases and investigators at sphere.

This study looked at 1800 plasma samples comprising both controls and individuals diagnosed with cognitive decline, including Alzheimer's disease.

Omid C. Farokhzad: Utilizing the proteograph for the proteomic portion of this study, they were able to measure over 8,300 proteins, which were then combined with over 200,000 RNA transcripts and 1,000 metabolite measurements to drive a multiomics classifier. This classifier achieved a sensitivity of 80% for stage 1 and 89% for all stages of lung cancer at 89% specificity. Also in January, a second manuscript was made available on bioRxiv and will be submitted for peer-reviewed publication. This study was a collaboration between Alzheimer's disease luminaries from MGH and Mass Gen Institute for Neurodegenerative Diseases and investigators at Seer. This study looked at 1,800 plasma samples comprising both controls and individuals diagnosed with cognitive decline, including Alzheimer's disease.

The researchers identified 130 proteins that were up or down regulated in individuals and of these 138 proteins. Only 44 has been previously associated with IV.

The remaining 94 represent putative biomarkers of.

Potentially unlocking new biological insights.

Interestingly, 55% of these 138 proteins are not present on a commercially available high plex affinity based panel, meaning researchers would not be able to see these protein using that panel.

The MGH investigators used this clinical information to identify at the point of significant cognitive decline and determine which of the 138 proteins separated the population into fast and slow cognitive decliners.

We identified eight such significant proteins and are now investigating how these results may be advanced to develop a clinical score, indicating the likelihood of cognitive decline in a particular timeframe.

Omid C. Farokhzad: The researchers identified 138 proteins that were up or down-regulated in AD individuals, and of these 138 proteins, only 44 have been previously associated with AD. The remaining 94 represent putative biomarkers of AD, potentially unlocking new biological insights. Interestingly, 55% of these 138 proteins are not present on a commercially-available, high-flex affinity-based panel, meaning researchers would not be able to see these proteins using that panel. The MGH investigators used this clinical information to identify the point of significant cognitive decline and determine which of the 138 proteins separated the population into fast and slow cognitive decliners.

While this study could not have been done using high plex affinity based approaches. It also could not have been done without the portio graph. Since there is no other practical way to do a deep unbiased per deal mix steady of 1800 plasma samples other.

Leveraging the project got product suite.

This represents the largest deep unbiased AAD proteomics study completed to date with a highly differentiated and novel biological insight.

With regards to the major communication paper that I mentioned earlier I'm very excited to share that this study was led by professor Carsten Suri at Wild Cornell Medicine, and demonstrated the identification of protein altering variance for population scale peak.

Omid C. Farokhzad: We identified eight such significant proteins and are now investigating how these results may be advanced to develop a clinical score indicating the likelihood of cognitive decline within a particular time frame. While this study could not have been done using high-flex affinity-based approaches, it also could not have been done without the proteograph since there is no other practical way to do a deep, unbiased proteomics study of 1,800 plasma samples other than leveraging the ProDUGA product. This represents the largest, deep, unbiased, AD proteomic study completed to date with highly differentiated and novel biological insight. With regard to the Nature Communication paper that I mentioned earlier, I'm very excited to share that this study was led by Professor Karsten Suri at Weill Cornell Medicine and demonstrated the identification of protein-altering variants for population-scale PQTL studies.

QTL studies.

The protium <unk> workflow was used upstream to a mass spec to analyze over 18000 peptides.

From 3000 proteins in more than 320 blood samples to detect and quantify blood circulating proteins in the presence of protein altering variance.

When the affinity based approaches are used for PQ TL analysis.

<unk> ligand bind to a specific epitope of the protein.

And various of these proteins can alter the ligand binding.

This altered binding is often false be interpreted as a PQ TL, which can result in incorrect biological insight however, with.

With the Proteus graph proteins abundant is quantified at the peptide level resolution accurately identify a PQ tls and allowing a better understanding of disease mechanism and more successful drug discovery efforts.

This study illustrates the effectiveness of Sears approach in unraveling intricate connections between genetic variations in proteins, which are vital for developing innovative therapeutic approaches for various diseases and we believe we will have an enormous impact on human health.

Omid C. Farokhzad: The proteograph workflow was used upstream to a mass spec to analyze over 18,000 peptides from 3,000 proteins in more than 320 blood samples to detect and quantify blood-circulating proteins in the presence of protein-altering variants. When affinity-based approaches are used for PQTL analysis, these ligands bind to a specific epitope of the protein, and variants of these proteins can alter the ligand binding.

In addition, and other paper from Professor Chris Mason's lab as Wild Cornell medical demonstrating the value of the Protium graph has been accepted in nature communications and I look forward to sharing more information. Once this paper has been published.

We have seen incredible interest in the field of proteomics and the value. It provides over the last five years and the velocity has significantly picked up in the last 12 months.

Omid C. Farokhzad: This altered binding is often falsely interpreted as a PQTL, which can result in incorrect biological insight. However, with the proteograph, protein abundance is quantified at the peptide level resolution, accurately identifying PQTLs and allowing a better understanding of the disease mechanism and more successful drug discovery efforts. This study illustrates the effectiveness of Seer's approach in unraveling intricate connections between genetic variations and proteins, which are vital for developing innovative therapeutic approaches for various diseases and, we believe, will have an enormous impact on human health.

This is exemplified by several high impact publications and an increase in both private and public funding for proteomics research, including a recent grant from the NIH of $50 million.

Over five years to establish a new consortium for multi Omics research on human health.

With the ability to analyze larger and more complex data sets using emerging technologies. The goal of the consortium is to develop a scalable and generalizable multi almac research strategies to advance our understanding of disease onset and progression.

Omid C. Farokhzad: In addition, another paper from Professor Chris Mason's lab at Royal Cornell Medical demonstrating the value of the protograph has been accepted in Nature Communications, and I look forward to sharing more information once this paper has been published. We have seen incredible interest in the field of proteomics and the value it provides over the last five years.

We look forward to seeing more funding for these types of projects as researchers continue to advance their studies and enable novel biological insights.

Genomic researchers are increasingly finding that proteomics data and subsequently multi omics data has greater power than genomic data alone.

As I alluded earlier the value of this is now shown by the largest deepest multi omics study completed to date byproduct gnomic, resulting in the best publicly available data for early detection of lung cancer.

Omid C. Farokhzad: And the pace has significantly picked up in the last 12 months. This is exemplified by several high-impact publications and an increase in both private and public funding for poliomic research, including a recent grant from the NIH of $50 million for over five years to establish a new consortium for multi-omics research on human health. With the ability to analyze larger and more complex data sets using emerging technologies, the goal of the consortium is to develop scalable and generalizable maltheomic research strategies to advance our understanding of disease onset and progression.

Beyond the value of proteomics in the research setting. We're also seeing the groundwork being laid to incorporate more protein markers for clinical use.

Recently, Palmetto <unk> proposed billing and coding guidelines to write coverage decisions for clinical Proteomic diagnostic assays, where policy was previously only written for tests, where DNA or RNA, where the primary analytics.

This unlocks a substantial clinical opportunity by increasing the chances the proteomics diagnostic assays has utility when launched into the market and is an important pathway to reimbursement for proteomics assays.

Looking ahead in 2024, we will continue to execute against our core strategies of powering evidence and publications with a particular product suite continuing to enhance access.

Omid C. Farokhzad: We look forward to seeing more funding for these types of projects as researchers continue to advance their studies and enable novel biological insights. Genomic researchers are increasingly finding that proteomics data, and subsequently, multiomics data, have greater power than genomic data alone. As I alluded earlier, the value of this is now shown by the largest, deepest multiomic study completed today by Pragnomics, resulting in the best publicly available data for early detection of lung cancer. Beyond the value of proteomics in the research setting, we're also seeing the groundwork being laid to incorporate more protein markers for clinical use. Recently, Palmetto's Maldex proposed billing and coding guidelines to write coverage decisions for clinical proteomic diagnostic assays, where policy was previously only written for tests where DNA or RNA were the primary analyte.

With our products and expand our applications.

While much work remains we are excited and inspired by the opportunity that lays in front of us with that I will now turn the call over to David.

Thanks, Amit total revenue for the fourth quarter of 2023 was $4 4 million representing.

Representing a decrease of 4% compared to $4 $6 million in the fourth quarter of 2022. The decrease was primarily due to a decrease in lease revenue related to SP 100 instruments, and partially offset by an increase in service revenue.

Product revenue for the fourth quarter of 2023 was $3 million, including $366000 of related party revenue consisted of sales of SP 100 instruments and consumable kits.

Service revenue was $1 1 million in the fourth quarter of 2023, including $201000 of related party revenue and primarily consisted of revenue related to stack as Hamid mentioned, we are seeing good customer interest in our stack program, where we will run mass spec for our customers and in some cases provide a full workflow solution for customers, who would like to ask.

Since our technology.

Grant and other revenue was $258000 in the fourth quarter of 2023 largely related to our SPRI grant from the NIH and the fourth quarter, we utilized the remaining funds available under the <unk> Grant and do not anticipate booking any more revenue under this grant in 2024.

David R. Horn: This unlocks a substantial clinical opportunity by increasing the chances that proteomics diagnostic assays have utility when launched into the market and is an important pathway to reimbursement for proteomics assays. Looking ahead in 2024, we will continue to execute against our core strategies of powering evidence and publications with the Protograph products, continue to enhance access, innovate with our products, and expand our applications. While much work remains, we're excited and inspired by the opportunity that lies in front of us. With that, I will now turn the call over to David.

Total gross profit was $2 million for the fourth quarter of 2023, representing a gross margin of 45, 1% compared to $2 3 million in the fourth quarter of 2022, representing a gross margin of 49, 8%. We continue to expect variability in our overall gross margin on a quarter by quarter basis as the proportion of.

<unk> consumable and service revenue will fluctuate for any given quarter.

Looking ahead to the full year 2024, we expect gross margins to be in the range of the mid <unk> to 50%.

Total operating expenses for the fourth quarter of 2023, or $24 2 million, including $7 6 million.

David R. Horn: Thanks, Omid. Total revenue for the fourth quarter of 2023 was $4.4 million, representing a decrease of 4% compared to $4.6 million in the fourth quarter of 2022. The decrease is primarily due to a decrease in lease revenue related to SP-100 instruments and partially offset by an increase in... Product revenue for the fourth quarter of 2023 was $3 million, including $366,000 of related party revenue, and consisted of sales of SP-100 instruments and consumables. Service revenue was $1.1 million in the fourth quarter of 2023, including $201,000 of related party revenue and primarily consisted of revenue related to staff. As Omid mentioned, we are seeing good customer interest in our stack program, where we will run mass spec for our customers and, in some cases, provide a full workflow solution for customers who would like to access our technology.

Stock based compensation, a decrease of 11% compared to $27 2 million, including $8 $2 million of stock based compensation.

In the fourth quarter of 2022.

Research and development expenses for the fourth quarter of 2023 were $11 2 million a.

The decrease of 12% compared to $12 6 million in.

In the fourth quarter of 2022, the decrease in R&D expenses was primarily due to a decrease in employee and stock based compensation as well as laboratory expenses.

Selling general and administrative expenses for the fourth quarter of 2023 were $13 1 million a decrease of 11% compared to $14 6 million in the fourth quarter of 2022.

The decrease in SG&A expenses was primarily driven by a decrease in professional services costs as well as employee and stock based compensation.

Net loss for the fourth quarter of 2023 was $17 $8 million.

Compared to $22 5 million in.

In the fourth quarter of 2022.

Turning to the full year total revenue for the full year 2023 was $16 7 million compared to $15 5 million in 2022, representing an increase of 8% year over year. The increase was primarily driven by service revenue related to stack.

David R. Horn: Grant and other revenue was $258,000 in the fourth quarter of 2020, largely related to our SBIR grant from the NIH. In the fourth quarter, we utilized the remaining funds available under the SBIR grant and do not anticipate booking any more revenue under this grant in 2020. Total gross profit was $2 million for the fourth quarter of 2023, representing a gross margin of 45.1%, compared to $2.3 million in the fourth quarter of 2020, representing a gross margin of 49.8%. We continue to expect variability in our overall gross margin on a quarter-by-quarter basis. The proportion of instrument, consumable, and service revenue will fluctuate for any given course.

Product revenue was $12 9 million, including $4 $4 million of related party revenue compared to $13 8 million.

In 2022, including $5 $2 million of related party revenue.

Service revenue was $2 3 million for the full year 2023, including $241000 of related party revenue compared to $913000 for the full year 2022, which did not include any related party revenue.

Grant and other revenue was $1 $5 million for the full year 2023 compared to $800000 for the full year 2022, we shipped 23 SP 100 instruments in 2023, bringing our cumulative instrument shipments to 62 instruments as of December 31 2023.

We continue to see a mix of orders from commercial and academic customers with a slight majority of placements continue to be with commercial customers at this stage.

David R. Horn: Looking ahead to the full year 2024, we expect gross margins to be in the range of the mid 40s to 50%. Total operating expenses for the fourth quarter of 2023 were $24.2 million, including $7.6 million of stock-based compensation. A decrease of 11% compared to $27.2 million, including $8.2 million of stock-based competition, in the fourth quarter of 2020. Research and development expenses for the fourth quarter of 2023 were $11.2 million, a decrease of 12% compared to $12.6 million in the fourth quarter of 2023. The decrease in R&D expenses was primarily due to a decrease in employee and stock-based compensation as well as laboratory expenses. Selling general and administrative expenses for the fourth quarter of 2023 were $13.1 million, a decrease of 11% compared to $14.6 million in the fourth quarter of 2022. The decrease in SG&A expenses was primarily driven by a decrease in professional services costs as well as employee and stock-based compensation.

Total gross profit was $8 5 million for the full year 2023, representing a gross margin of 51, 1% compared to $7 1 million for.

For the full year 2022, representing a gross margin of 45, 8%.

Total operating expenses for 2023 were $112 million inclusive of $34 4 million in stock based compensation compared to $104 $3 million inclusive of $33 7 million in stock based compensation in 2022.

Research and development expenses for 2023 were $53 million compared to $45 8 million in.

In 2020 to selling general and administrative expenses for 2023 were $59 million compared.

Compared to $58 $5 million in 2022 net loss for 2023 was $86 3 million compared to $93 million in 2022.

We ended the year with approximately $373 $1 million in cash cash equivalents and investments with our extremely strong balance sheet and disciplined deployment of capital. We believe we are well funded to execute our strategic plan for many years to come.

Turning to our outlook for the year, we expect revenue to be in the range of $18 million to $20 million for 2024, representing growth of 14% year over year at the midpoint.

<unk> 2023, we expect revenue to be more weighted to the second half of the year.

As we work to develop this market we are focused on driving evidence and publication enhancing access and driving product innovation and applications. In 2024, we continue to see strong interest in the program and its value proposition for customers. We remain confident in our ability to capitalize on the massive opportunity ahead as Amit shared we are laser focused on connect.

David R. Horn: The net loss for the fourth quarter of 2023 was $17.8 million compared to $22.5 million in the fourth quarter of 2020. Turning to the full year, total revenue for the full year 2023 was $16.7 million compared to $15.5 million in 2022, representing an increase of 8% year over year. The increase is primarily driven by service revenue related to, Product revenue was $12.9 million, including $4.4 million of related party revenue compared to $13.8 million, including $5.2 million of related party revenue. Service revenue was $2.3 million for the full year 2023, including $241,000 of related party revenue compared to $913,000 for the full year 2022, which did not include any related party.

Meaning credible biological insights from our customers to accelerated commercial adoption, we're committed to maintaining a strong financial position and they're taking a very disciplined approach with our spend free cash flow was approximately negative $66 million for the full year 2023, and we estimate that our 2020 for free cash burn will be less than our free.

Cash burn in 2023.

At this point I would like to turn the call back to meet for closing comments.

Thanks, David.

Firmly believe that we have the technology that will transform our understanding of the proteome looking forward in 2024, we will continue to drive execution against our core strategies of driving evidence and publications.

Continuing to enhance access innovating our products and expanding applications.

I am confident in the substantial long term opportunity ahead, and I look forward to continuing to update you on our progress throughout the year with that we will now open it up to questions.

Certainly one moment for our first question.

And our first question comes from the line of Dan Brennan from TD Cowen Your question. Please.

Hey, guys, congrats and thanks for the questions maybe.

Maybe first one just on the revenue in the fourth quarter ex programmatic was actually.

Better than we expected, obviously, probably nobody is a critical customer, but it's nice to see some diversification I'm just wondering how we think about implicit in the 'twenty four outlook are you seeing more traction extract noma can you just give us any color on what we're thinking probably gnomic versus your other customers for 24.

David R. Horn: Grant and other revenue was $1.5 million for the full year 2020, compared to $800,000 for the full year. We shipped 23 SP-100 instruments in 2023, bringing our cumulative instrument shipments to 62 instruments, as of December 31st, 2020. We continue to see a mix of orders from commercial and academic customers, with a slight majority of placements continuing to be with commercial customers. Total gross profit was $8.5 million for the full year 2023, representing a gross margin of 51.1% compared to $7.1 million for the full year 2022, representing a gross margin of 45.1%. Total operating expenses for 2023 were $112 million, inclusive of $34.4 million in stock-based compensation, compared to $104.3 million. H handling world Thanks for attending. Real??

Thanks, Dan It's David.

<unk>. The question, yes, so prognostic just to update you on where they are.

They completed their 3000 samples study and so they're moving and very successfully I might add and they published their data or posted unmet archive.

They are moving to the development phase so they're still using the product.

But theyre doing less discovery work now so we do which is why you saw a little bit lower revenue in the fourth quarter and looking to the 2024, we also expect them to be a significantly lower percentage.

Of our overall revenue in 2024.

As a result of that and again we.

We continue to see good interest from other parties so.

Again, thats kind of how we're viewing 2024 from from a pregnant with perspective.

Got it and then obviously you talked a lot about some of the exciting publications and clinical evidence or kind of research evidence building.

Just wondering if you could could you spell out a little bit like as we sit here today and.

And the February if we're sitting here I don't know September how many of these I know you can't really.

David R. Horn: Thank you. Research and development expenses for 2023 were $53 million compared to $45.8 million in 2022; selling general and administrative expenses for 2023 were $59 million compared to $58.5 million. Net loss for 2023 was $86.3 million, compared to $93 million. We ended the year with approximately $373.1 million in cash and cash equivalents.

Gasich exact timing, but you kind of see the funnel of these third party publications, which have been viewed to be an important driver for uptake. So kind of where do you think we are in six months from now and.

How do you think about again the confidence level.

David you talked about this being a second half weighted year.

Could you actually see some real traction as two or three or four these hit.

And customers, who you believe have been waiting can kind of see what the evidence in customer hands looked like you've really seen uptake by the end of the year just any color on that would be would be helpful.

Great.

This is Amit and thank you for the question.

So we're aware of approximately 180 public presentations and that includes just around 50 poster presentation by customers.

David R. Horn: With our extremely strong balance sheet and disciplined deployment of capital, we believe we are well-funded to execute our strategic plan for many years to come. Turning to our Outlook, we expect revenue to be in the range of $18 to $20 million for 2024, representing growth of 14% year-over-year. Similar to 2023, we expect revenue to be more weighted to the second half.

Total.

Benign preprint.

Five peer reviewed publications four of it with ours. The first customer peer reviewed paper came out that was the.

The Carson sorry nature communication paper.

I know at least two more papers that are forthcoming this quarter that will be published.

I expect another nature communications paper.

Which has been accepted and that should be published.

And then one more coming in nature. So the quality of the papers that are coming are quite high.

David R. Horn: As we work to develop this market, we are focused on driving evidence and publication, enhancing access, and driving product innovation. We continue to see strong interest in the protograph and its value proposition. We remain confident in our ability to capitalize on the massive... As Omid shared, we are laser focused on connecting the incredible biological insights from our customers to Accelerated Commercial Adoption. We're committed to maintaining a strong financial and are taking a very disciplined approach with our spend. Free cash flow was approximately negative $66 million for the full year 2023, and we estimate that our 2024 free cash burn will be less than our free cash burn in... At this point, I would like to turn the call back to Omid. Thanks, David.

But on the back of that we also have visibility to.

Several more papers.

That are either being submitted on bio archive or some of the bio archive papers moving through the peer review process and coming as peer review publications again, the exciting part of it is that these initial if you will.

Good.

Cohort of publications that are coming.

We're all coming in Great Journal, and I think thats in part because.

They represent a data package that was previously not possible to achieve without using the prettier graph, meaning the kinds of body of data that is being seen the.

Proteins that are being identified that may be important in health or disease are either.

Not entirely present on the high Plex panels. So if you use those as an option you would not see them for.

Or alternatively, if you will down an unbiased approach without the photograph you could never get to the depth of the study to see some of those proteins and we certainly couldn't scale and to the degree where the study was powered enough to see some of those differences. Consequently, these initial cohort of paper.

They are all coming out in Great Journal that is really exciting to see I do expect that this is going to help with traction, but I really want a tempered enthusiasm in that I'm not expecting a hockey stick I mean, this is literally a brick by brick building, but what's coming is very exciting and the data.

Omid C. Farokhzad: I firmly believe that we have the technology that will transform our understanding of the proteome. Looking forward to 2024, we will continue to drive execution against our core strategies of driving evidence and publications, continuing to enhance access, innovating our products, and expanding applications. I'm confident in the substantial long-term opportunity ahead, and I look forward to continuing to update you on our progress throughout the year. With that, we will now open it up to questions. Certainly. One moment for our first question.

It's very compelling.

Great. Okay. Thanks from me Thanks, David.

Thanks, Dan.

Thank you one moment for our next question.

And our next question comes from the line of Tejas Savant from Morgan Stanley. Your question. Please.

Hey, guys good afternoon.

Maybe just to kick things off can you share a little bit of color on just the length of the sales cycle as you see it today for the Capex sales versus what it was last year and on a related note David could you help parse out those 'twenty three placements this year or I guess instrument shipments this year.

Operator: And our first question comes from the line of Dan Brennan from TD Cowan. Your question, please. Hey, guys, congrats. Thanks for the questions.

Between Sip versus outright purchases I think in the past you talked about a 50 50 split is that what we should be expecting for 'twenty four as well.

Daniel Gregory Brennan: Um, maybe the first one just on the you know, the revenue in the fourth quarter ex prognomic was actually better than we expected. Obviously, Prognomic is a critical customer, but it's nice to see some diversification. Just wondering how we think about implicit in the 24 outlook. Are you seeing more traction ex prognomic? Can you just give us any color?

Hey, Jack Hey, there Amit here.

Look I think there is.

There are a number of factors playing into the wholesale cycle I mean, I think the macro economic environment is certainly playing a role we have seen a slowdown in China and that is continuing.

And the Biopharma spending.

In terms of the Capex budget is constraining specifically for these new technology platforms like sphere, but what that uncertainty isn't.

David R. Horn: Like what we're thinking prognomic versus your other customers for 24? Thanks, Dan, and David. I appreciate the question. Yeah, so Prognomic, just to update you on where they are, they completed their 3,000 sample study. And so they're moving, and very successfully, I might add, and they have published their data or posted it on MedArchive. They are moving to the development phase. So they're still using the product, but they're doing less discovery work now. And so are we, which is why you saw a little bit lower revenue in the fourth quarter.

Because of.

A lack of desire to acquire just cautiousness that goes into getting over threshold.

Before you go before they bring it in now that's the case with the with bringing the platform in house at <unk>.

With an entirely different world pays us if you look at the stack.

Where we have seen a robust pipeline a lot of interest.

<unk> business.

And.

And quarter over quarter.

Very significant growth in terms of its stack demand in the stack pipeline.

We have a backlog in that now that said.

David R. Horn: And looking to 2024, we also expect them to be a significantly lower percentage of our overall revenue in 2024 as a result of that. And again, we continue to see good interest from other parties. So again, that's kind of how we're viewing 2024 from a prognomic perspective. And then, obviously, you talked a lot about some of the exciting publications and clinical evidence or kind of research evidence building. Just wondering, could you spell out a little bit, like, as we sit here today?

Don't expect for that quarter over quarter revenue doubling in the case of stack to continue.

Because for better for worse case is it's a business decision.

Im capping capacity for stack.

And I don't want to build capacity because I'm not interested in becoming a service business.

We want to keep capacity added, but theres a lot of demand in stack as customers come into the stock.

<unk> got data they generate some exciting data if they wanted to remain on our service model then I would rather if they work with our center of excellence or Coes with the Coes by consumable from Us and again, we're in the business of selling consumable. We've obviously sold the platform to the Coes already I rather start continues.

Versus Sears building, an infrastructure to progressively grow and expand our service model I don't want to do that and my expectation by the way suggested that with the data that come from this stack together with the growing body of evidence in terms of the publication that that.

Omid C. Farokhzad: End of February, if we're sitting here, I don't know, September, how many of these you can't really, you know, kind of guess the exact timing, but you kind of see the funnel of these third-party publications, which have been viewed to be an important driver for uptake. So, kind of where do you think we are in six months from now, and, you know, how do you think about, again, the confidence level? Like, David, you talked about this being a second half-weighted year.

Is going to help us in terms of in terms of decreasing the sell cycle time off with our platforms.

The consumable David do you want to tackle the second half yes on your question on the Sip program teach us so of the 23 about a third were.

We're loners, so it was actually a little bit less than the 50.

And Thats kind of I think where we may settle out I mean, the good news is we ship.

Omid C. Farokhzad: Could you actually see some real traction as two or three or four of these hit, and customers who you believe have been waiting can kind of, you know, see what the evidence in customer hands looks like? Do you really see an uptick by the end of the year? Just any comment on that would be helpful.

High single digit number of instruments in the fourth quarter. The majority of those were actually purchased which is great.

But we continue to see interest in that program. So.

Overall for the year, we landed at about a third and that's kind of what we're anticipating we will see in 2024 as well and also just add.

Let me just add.

To the to the stack comment I mean as you can imagine we have customers globally, we have customers in Europe, we have customers in the U S.

Omid C. Farokhzad: Great. This is Omid, and thank you for the question. So we're aware of approximately 180 public presentations, and that includes just around 50 posters presented by customers. In total, there have been nine preprints, five peer-reviewed publications, four of them were ours. The first customer peer-reviewed paper came out. That was the Carcensory Nature communication paper.

And because of GDP. All rules are the stack is largely servicing our U S customer base, you can imagine that while I'm not interested in the service business I do want to have a similar kind of business model outside of US So we are considering options to be able to offer <unk> services outside of U S.

And so I don't consider that really an expansion of our business model in terms of services.

How do we capitalize on a broader geography, and what is arguably a very very successful strategy in terms of providing access to the photograph and as I know more about that I will share that with you.

Omid C. Farokhzad: I know at least two more papers that are forthcoming. This quarter, they will be published. I expect another Nature Communication paper has been accepted and that should be published. And then one more coming in Nature.

Got it Super helpful.

So changing gears a little bit.

I think in the past you talked about upgrading your Proteus drafts to the XD by year end just wanted to confirm that after 62 instruments out that have most of them now essentially been upgraded and then on a related note.

Omid C. Farokhzad: So the quality of the papers that are coming is quite high. But on the back of that, we also have visibility to several more papers that are either being submitted on BioRxiv or some of the BioRxiv papers moving through the peer review process and coming out as peer-reviewed publications. Again, the exciting part of it is that these initial, if you would, cohort of publications that are coming out are all coming in great journals, and I think it's in part because they represent a data package that was previously not possible to achieve without using the protograph, meaning the kinds of body of data that is being seen, the proteins that are being identified that may be important in health or disease are either not entirely present on the HyPlex panels. So if you use those as an option, you would not see them.

There's been a lot of buzz around the all the trapped astral from thermal and how that launch has gone for them can you just remind us how many astral is out there on all paired with the protium graph or perhaps if it's too early to ask that question. What does the funnel look like for the combination and how do you see that sort of driving placements in 'twenty four.

So the.

On the first part is an easy one because I followed that almost daily which is approximately 75% of our installed base has now been upgraded to the pretty graphics the asset.

And your comments about the actual performance being.

Omid C. Farokhzad: Or alternatively, if you went down an unbiased approach without the protograph, you could never get to the depth of the study to see some of those proteins, and you certainly couldn't scale them to the degree where the study was powered enough on some of those differences. Consequently, these initial cohorts of papers are all coming out in great journals, and it's really exciting to see. I do expect that this is going to help with traction, but I really want to temper the enthusiasm by saying that I'm not expecting a hockey stick.

Being very well received by the market I'd share that with you.

And as exemplified by the combination of the XD Astral really demonstrating unprecedented performance and complex matrices like plasma for example, or other complex matrices, where the dynamic range is quite wide I don't have a sense.

Hey, Josh.

The number of hospitals out there and in terms of either equity upstream to them or in discussions with that I will have clarity that pays us more I would say over the next quarter or two and we can have those discussions but the combination of the two is quite powerful I would also say that we're seeing.

Omid C. Farokhzad: I mean, this is literally a brick-by-brick building, but what's coming is very exciting, and the data is very compelling. Okay.

Operator: Thanks, Omid. Thanks, David. Thank you. One moment for our next question. And our next question comes from the line of Tejas Savant from Morgan Stanley. Your question, please. Hey, guys. Good afternoon.

Extremely good results with.

With the brokerage fee and that too is an exceptional instrument.

And that.

You can get really really great data of course, the Astro provides a level of data that is that exceeds the other available options.

Tejas Rajeev Savant: Omid, David, maybe just to kick things off, can you share a little bit of color on just the length of the sale cycle as you see it today for the CapEx sales versus what it was last year? And on a related note, David, could you help parse out those 23 placements this year, or I guess instrument shipments this year between SIP versus outright purchases? I think in the past you talked about a 50-50 split. Is that what we should be expecting for 24 as well? Tejas, hey there, Omid here.

Got it very helpful.

Last question for me.

You talked about I think 10000 samples per your on X D plus.

Some of these next gen mass specs.

Can you can you sort of translate those numbers in terms of what they mean on a price per sample basis and Easter is a combination now essentially in your mind starting to be viewed as competitive by some of these larger population scale projects, where any work that's happened at that scale. So far has been more on a targeted approach.

Omid C. Farokhzad: Look, I think there are a number of factors playing into the whole sell cycle. I mean, I think the macroeconomic environment is certainly playing a role. We have seen a slowdown in China, and that is continuing. And biopharma spending, in terms of the CapEx budget, is constrained specifically for these new technology platforms, like Seer. But that certainly isn't because of...

I think we are moving in the direction because remember the unique thing about the protocol graph is when you think about the costs.

It's not only the considerable costs that you need to pay sphere, but there is also the.

Depreciation and the instrument and the FTE costs that you need to pay to run that mass spec right. So what <unk> did was it materially decrease the use of the mass spec. Therefore decreasing both the portion that you would assign the depreciation for that assay and also the FTE cause.

Omid C. Farokhzad: It's not a lack of desire to acquire; it's just cautiousness that goes into getting over a threshold before they bring in the new technology. Now, that's the case with bringing the platform in-house. It's almost an entirely different world, Tejas, if you look at the stack, where we have seen a robust pipeline, a lot of interest, repeat business, and quarter-over-quarter, very significant growth in terms of the stack demand and the stack pipeline. In fact, we have a backlog in that. Now, that said... Don't expect that quarter-over-quarter revenue doubling, in the case of STAC, to continue I am capping capacity for SAC, and I don't want to build capacity because I'm not interested in becoming a service provider.

We are absolutely touch us approaching price points, where.

Population scale deep unbiased proteomics.

Are doable and and look I put myself I think.

The heartbeat when I said in my prediction is that sometime in 2024.

Such large studies will get initiated now we've been in discussion by number of parties to do that I was actually really really hoping that the UK. Phoebe project would have kicked up we wanted to participate in that project I would've expected that data to really have catalyzed.

A very very large scale studies at UK division level in terms of amount.

Of course, as you know they pull the plug on that but I do think tells US we're now in the in.

And the ZIP code, where deepened back toward.

Not only is feasible in terms of throughput, but it's also feasible in terms of cost and very comparable if you would to doing it in a targeted way.

Omid C. Farokhzad: We want to keep capacity as is, but there's a lot of demand in the stack. As customers come into the stack, they get data, they generate some exciting data. If they want to remain on the service model, then I'd rather they work with our center of excellence, our COEs, where the COEs buy consumables from us.

That's great color. Thanks, I appreciate it thanks.

Thanks, guys.

Thank you one moment for our next question.

And our next question comes from the line of Rachel Fox.

Omid C. Farokhzad: And again, we're in the business of selling consumables. We've obviously sold the platform to the COEs already. I'd rather stack continues versus Seer building an infrastructure to progressively grow and expand our service model. I don't want to do that.

From Jpmorgan Chase your question please.

Hello, and thank you for taking our question. This is Martin as early on to Rachel.

Just wanted to follow up on your prior question as for guidance. So what are your assumptions for China macro from 24 are you pretty much assuming no improvement.

Omid C. Farokhzad: And my expectation, by the way, Tejas, is that with the data that comes from this stack, together with the growing body of evidence in terms of the publication, that that is going to help us in terms of decreasing the self-cycle time for the platform and the consumable. David, do you want to tackle the second half? Yeah, on your question about the SIPP program, Tejas. So, of the 23, about a third were loaners. So it was actually a little bit less than the 50. And that's kind of, I think, where we may sit a lot. I mean, the good news is we shipped a high single-digit number of instruments in the fourth quarter, and the majority of those were actually purchased, which is great. But we continue to see interest in that program. So overall, for the year, we landed at about a third, and it's kind of what we're anticipating we'll see in 2020. And Tejas, let me also just add, Tejas, let me just add to this comment on the stack.

Then as you think about the guidance what do you think are the biggest potential swing factors.

Yeah.

Sorry, the last part of your question whether it was the biggest swing factors is that is that correct, yes, yes, Ian items like upside down right got it.

Sure so on the China macro.

And we aren't we still don't have a lot of visibility in terms of an improvement there and so as we look at 'twenty four we're essentially assuming.

Flat kind of as is we're not assuming any real improvement relative to what we're already doing there.

It's something where just given the lack of visibility given the continued challenges that we see in terms of adopting a new technology.

We certainly.

Just wanted to be mindful of that as we as we look forward to this year there have been some great developments.

Chinese government is obviously, putting a lot of money into proteomics into into building kind of a large proteomics database.

David R. Horn: I mean, as you can imagine, we have customers globally; we have customers in Europe, we have customers in the U.S. And because of GDPR rules, the SAC is largely servicing our U.S. customer base. You can imagine that while I'm not interested in the service business, I do want to have a similar kind of business model outside of the U.S., so we are considering options to be able to offer SAC-like services outside of the U.S. But I don't consider that really an expansion of the business model in terms of services. It's just how it can be capitalized on a broader geography in what is arguably a very, very successful strategy in terms of providing access to the photograph. And as I know more about that, I will share that with you. I got it. Super helpful.

We're certainly hopeful but it's really too early to have any visibility to that so I think that that's something that.

That we are being mindful of in terms of the in terms of the.

Swing factors.

For this year I think one is certainly the impact of the publications.

We certainly feel like there is a nice robust pipeline of publications coming and we hope that that will certainly help to drive things.

And so but again, we've tried to be mindful of the timing of those and as Hamid said.

Omid C. Farokhzad: So, changing gears a little bit, Omid, you know, I think in the past you talked about upgrading your proteographs to the XT on your end. Just wanted to confirm that, you know, out of the 62 instruments out there, have most of them now essentially been upgraded? And then on a related note, you know, there's been a lot of buzz around the Orbitrap Astral from Thermo and how that launch went for them. Can you just remind us, you know, how many astrals out there are now paired with the proteograph? Or perhaps if it's too early to ask that question, what does the funnel look like for this combination?

The ultimate impact of those I think it's the larger body of clinical evidence that needs to amount to.

To be more robust and to grow.

To really drive that that adoption, but again, we're hopeful that and again the other areas that we see good potential obviously stack.

<unk> got a backlog there, which is great, but as Amit also said we're going to have.

A finite capacity there so at some point, we will we will reach that and kind of stay there and but the good news is we do want to work with our centers of excellence and push any any recurrent service business to them and allow them to take that and that will certainly result in and some kit sales to us.

Tejas Rajeev Savant: And how do you see that sort of driving placements in 24? Tejas, the first part is an easy one because I follow that almost daily. Approximately 75% of our installed base has now been upgraded to the Protograph XT asset. And your comment about the actual performance being very well received by the market; I share that with you, and as exemplified by the combination of the XT Astral, really demonstrating unprecedented performance in complex matrices like plasma, for example, or other complex matrices where the dynamic range is quite wide. I don't have a sense, Tejas, of the number of Astrals out there and in terms of either XT upstream to them or in discussions about that.

And then finally prognostic again.

We'll be a smaller portion of revenue.

For this year, but the good news is is that they're moving into their discovery finished for the MDT test and they are using the program platform to do some of that default development work.

And they will also continue their discovery work on some of their other programs. So again, we're trying to be mindful, there, but again they've been a great partner and they are having great success with.

Omid C. Farokhzad: I will have more clarity on that, Tejas, more, I would say, over the next quarter or two, and we can have those discussions, but the combination of the two is quite powerful. I would also say that we're seeing extremely good results with the Bruker HT, and that too is an exceptional instrument, and that you can get really, really great data. Of course, the Astral provides a level of data that exceeds the other available options.

With the data, they're generating so I would I would highlight those as the areas.

Thank you that was helpful and actually a good segue to my next question. So can you discuss your overall visibility for that business as you move into 2020 four you already touched on China, I guess ex China.

And then can you also touch on pricing expectations.

Yeah, so in terms of visibility.

Omid C. Farokhzad: Very helpful, Omid. Last question for me: You know, you talked about I think 10,000 samples per year on XT plus some of these next-gen mass specs. Can you sort of translate those numbers in terms of what they mean on a price per sample basis? And is the combination now, essentially, in your mind, starting to be viewed as competitive by some of these larger population scale projects where, you know, any work that's happened at that scale so far has been more of a targeted approach? Tejas, I think we are moving in that direction because remember, the unique thing about the protograph is when you think about the cost. It's not only the consumable costs that you need to pay Seer, but there's also the depreciation and the instrument and the FTE cost that you need to pay to run that mass spec, right?

Again, I think we've got a healthy pipeline.

In North America is certainly an area, where we do have pretty good visibility on that I will say.

There is there is strong interest people are.

We are excited about the technology.

And so we feel good about it.

Really a function of having the budget dollars to go ahead, and acquire the technology or or to participate in the stack program.

Europe Europe also feels pretty good but again, it's I'd be a little bit more cautious on Europe.

Relatively speaking again, we have pretty good visibility, but again they are much more price than budget conscious there in terms of in terms of what they what they see.

What we see so again I think the visibility is a little bit less and then as I discuss China is it's probably we have the least visibility there, but again remain remain hopeful in terms of pricing again, I think we continue to to.

Omid C. Farokhzad: So what DXT did was it materially decreased the use of the mass spec, therefore decreasing both the portion that you would assign the depreciation for that assay and also the FTE cost. We are absolutely, Tejas, approaching price points where population-scale defunct biocardiomics, you know, is doable, and, look, I put myself, I think, on the hot seat when I said my prediction is that sometime in 2024. Such large studies will get initiated. Now, we've been in discussion with a number of parties to do that. I was actually really, really hoping that the UKBB project would have kicked off.

To see the solution as price competitive.

And something where people can certainly access to technology, whether that's buying an instrument or participating in our Sip program, where you get a loner and you you make some upfront kit purchases were consuming through stack.

In terms of just the price per sample for either the mass spec work or for the full workflow.

So again, we feel we feel pretty good about it.

Omid C. Farokhzad: We wanted to participate in that project. I would have expected the data to really have catalyzed a very, very large-scale study at UKBB level in terms of Omid Farokhzad. Of course, as you know, they pulled the plug on that. But I do think, Tejas, we're now in the zip code where defunding back for the omics is feasible in terms of throughput, but it's also feasible in terms of cost and very comparable, if you would, to doing it in a targeted way. That's great, Kyle and Omid. Thanks, I appreciate the time.

Obviously people always want to lower price there is no doubt about that but again I think we're as Hamid mentioned I think we're getting to the to the right ZIP code certainly comparable to where some of the targeted technologies are even though we offer a very different value proposition and youre answering fundamentally different biological questions.

Again, I think we're certainly cost competitive such that you can do a large scale study.

On a timeframe and with a price point.

That makes sense.

Great. Thank you Frank.

Tejas Rajeev Savant: Thanks, Tejas. Thank you. One moment for our next question. And our next question comes from the line of Rachel Watson-Zahl from JPMorgan Chase. Your question, please? Hello, and thank you for taking the question. This is Marta Nazarovets on behalf of Rachel.

Thank you.

Thank you.

And this does conclude the question and answer session as well as today's program. Thank you ladies and gentlemen for your participation you may now disconnect. Good day.

Yes.

Okay.

Okay.

[music].

Operator: I just wanted to follow up on your prior questions for guidance. So what are your assumptions for China and macro for 24? Are you pretty much assuming no improvement? And then, if you think about the guidance, what do you think are the biggest potential swing factors? Sorry, the last part of your question, Marta, was the biggest swing factors, is that correct? Yeah, yeah, to your guidance. Upside down.

Yes.

[music].

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Marta Nazarovets: Got it. Sure. So on the China macro, we still don't have a lot of visibility in terms of an improvement there, and so as we look at 24, we're essentially assuming flat, kind of as is. We're not assuming any real improvement relative to what we're already doing there. So it's something where, given the lack of visibility and given the continued challenges that we see in terms of adopting new technology, we certainly just wanted to be mindful of that as we look forward to this year. There've been some great developments. The Chinese government is obviously putting a lot of money into proteomics, into building kind of a large proteomics database. So we're certainly hopeful, but it's really too early to have any visibility on that.

Yes.

[music].

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[music].

Marta Nazarovets: So I think that's something that we are being mindful of. In terms of the swing factors for this year, I think one is certainly the impact of the publications. We certainly feel like there's a nice, robust pipeline of publications coming, and we hope that that will certainly help to drive things. But again, we've tried to be mindful of the timing of those.

Yes.

[music].

David R. Horn: And as Omid said, the ultimate impact of these, I think it's the larger body of clinical evidence that needs to be more robust and growing to really drive that adoption. But again, we're hopeful of that. And again, the other areas that we see good potential obviously stack up. We've got a backlog there, which is great. But as Omid also said, we're going to have a finite capacity there. So at some point, we'll reach that and kind of stay there.

David R. Horn: And the good news is we do want to work with our centers of excellence and push any recurrent service business to them and allow them to take that, and that will certainly result in some kit sales to us. And then finally, Prognomic, again, will be a smaller portion of revenue for this year. But the good news is that they're moving into their discovery phase for their LDT test, and they're using the Protograph platform to do some of that development work. And they'll also continue their discovery work on some of their other programs. So again, we're trying to be mindful there. But again, they've been a great partner, and they're having great success with the data they're generating. So I would highlight those as the, Thank you. That was helpful. Actually, a good segue to my next question. So can you discuss your overall visibility for the business as we move into 2024? You have already touched on China, so I guess ex-China.

Yes.

[music].

Marta Nazarovets: And then can you also touch on pricing? Yeah, so in terms of visibility, you know, again, I think we've got a healthy pipeline in North America. It's certainly an area where, you know, we do have pretty good visibility on that. I will say, you know, there is a strong interest. People are excited about the technology, and so we feel good about it. It's really a function of, you know, having the budget dollars to go ahead and acquire the technology or participate in the STAC program. Europe also feels pretty good, but again, I'd be a little bit more cautious on Europe, relatively speaking.

Okay.

[music].

Thank you.

[music].

David R. Horn: Again, we have pretty good visibility, but again, they are much more price and budget conscious there in terms of what they see or what we see. So again, I think the visibility is a little bit less, and then, you know, as I discussed, China is probably where we have the least visibility there, but again, I remain hopeful. In terms of pricing, again, I think we continue to see the solution as price competitive and something where people can certainly access the technology, whether that's, you know, buying an instrument or participating in our SIP program where you get a loaner and you make some upfront kit purchases or consuming through STAC in terms of just the price per sample for either the mass spec work or for the full workflow. So again, we feel pretty good about it. Obviously, people always want a lower price.

Alright.

Yes.

Okay.

[music].

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Sure.

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Yes.

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David R. Horn: There's no doubt about that, but again, I think we're, as Omid mentioned, I think we're getting to the right zip code, certainly comparable to where some of the targeted technologies are, even though we offer a very different value proposition and you're answering fundamentally different biological questions. Again, I think we're certainly cost competitive such that you can do a large-scale study on a timeframe and with a price point that makes Great, thank you. Thank you. Tej

Yes.

[music].

Operator: And this does conclude the question and answer session, as well as today's program. Thank you, ladies and gentlemen, for your participation. You may now disconnect.

Operator: Good day. ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Thank you for standing by and welcome to the Seer fourth quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode.

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[music].

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Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again.

Okay.

Yes.

Yes.

[music].

Carrie Mendivil: As a reminder, today's program is being recorded. And now, I'd like to introduce your host for today's program, Carrie Mendivil, Director of Investor Relations. Thank you.

Okay.

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Okay.

Carrie Mendivil: Earlier today, Seer released financial results for the quarter and year ended December 31, 2023. If you've not received this news release, or if you'd like to be added to the company's distribution list, please send an email to investor@seer.bio. Joining me today from Seer are Omid Farokhzad, Chief Executive Officer and Chair, and David Horn, Chief Financial Officer and President. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to be materially different from those anticipated.

Yes.

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Carrie Mendivil: Additional information regarding these risks and uncertainties appears in the section entitled Forward-Looking Statements in the press release for your issue today. For a more complete list and description, please see the risk factors section of the company's quarterly report on Form 10-K for the year ended December 31, 2023, and its other filings, documents, and exchanges. Except as required by law, Seer disclaims any intention or obligation to update or revise any financial projections or forward-looking statements.

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[music].

Carrie Mendivil: They're because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast, February 29th, 2024. With that, I'd like to turn the call over to Omid. Thanks, Carrie, and thank you, everyone, for joining us this afternoon.

Yes.

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[music].

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Omid C. Farokhzad: I will begin our call today by providing updates on our recent progress, including some exciting customer data. Looking ahead, we're laser-focused on converting these incredible biological insights into accelerated commercial adoption, and I will share the actions we're taking to make this happen. I will then turn the call over to David to provide more detail on our financial results for 2023 and revenue outlook for 2024. In 2023, we grew revenue 8% to $16.7 million and ended the year with over $373 million in cash, cash equivalents, and investments.

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Omid C. Farokhzad: As the body of biological insights and data grows, I expect adoption and revenue will become more aligned with our expectations. Our mission at Seer is to bring the power of unbiased proteomics to researchers around the globe. To achieve this, we need to open up a new gateway to the proteome to enable the next frontier in biology to be explored.

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Omid C. Farokhzad: When we first introduced the Proteograph product suite for unbiased, deep proteomics at scale, there was a huge mountain to climb in terms of market development and education. Over the course of this past year, we made important progress in climbing this mountain. I'm deeply proud of our team's work, and yet there is still much work to be done to translate the incredible performance we are seeing from the protographs into widespread commercial adoption. Our customers have started to demonstrate the powerful biological insights from the proteograph, and this data is nothing short of incredible. Most recently, we saw our first customer study published in Nature Communications.

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Omid C. Farokhzad: Given the unique insights that Proteograph is enabling relative to other proteomics platforms, we expect several more publications in high-impact journals throughout the year. This will be critical for us to reach an inflection point for widespread adoption and revenue growth. We remain laser-focused on developing and enhancing our technology, removing barriers to adoption, and expanding our commercial reach. Over the past year, we made a number of important advancements to our technology. In June, we launched our Proteograph XT assay kit, and the feedback has been fantastic. Since its launch, we have upgraded over half of our customer base to run the new AXA kit. XT improves the throughput of our initial assay and reduces the mass spec time, for example, by 2 and 12 times without sacrificing depth.

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Omid C. Farokhzad: The efficiency allows a single technician to handle hundreds of samples per week and approximately 10,000 samples annually with just one proteograph XT and a leading mass spectrometer. We have also made important improvements to our Proteograph Analysis Suite, or PAS, to provide biologists access to an understanding of deep unbiased proteomics readily and easily for any application they choose, including proteogenomics analysis. We made significant updates to the quality and quantity of protein and peptide identifications you can get from PASS and re-engineered our mass spec analysis workflow to leverage cutting-edge analysis advancements at scale. And finally, last month, we made our Protein Discovery Catalog available to our customers, prospective customers, and interested parties, with over 10,000 proteins in plasma across 1,900 pathways that can be detected and interrogated using the proteograph. This provides our first published index of the unprecedented depth of empirically observed proteins captured by our nanoparticle technology to date.

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Thank you for standing by and welcome to this year fourth quarter 2023 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press star one on your telephone.

Question has been answered and you'd like to remove yourself from the queue simply press Star One again as a reminder, today's program is being recorded and now I'd like to introduce your host for today's program Carrie Mendivil Investor Relations.

Thank you.

Earlier today <unk> released financial results for the quarter and year ended December 31 2023.

You have not received this news release or if you'd like to be added to the Companys distribution list. Please send an email to investor at <unk> Dot bio joining me today from Sierra is Amit <unk>, Chief Executive Officer, and chair and David Horn, Chief Financial Officer and President.

Omid C. Farokhzad: The catalog includes proteins linked to over 150,000 peptides that can serve as data points for potential biomarkers, including proteins not yet associated with diseases, making it a rich source of biological insight. We look forward to expanding this library over time as more samples are interrogated by the Proteograph platform and more mass spectrometric data becomes available. We also made important strides removing barriers to improve access.

Before we begin I would like to remind you that management will make statements. During this call that are forward looking statements within the meaning of federal securities laws.

Statements involve material risks and uncertainties that could cause actual results or events materially.

From those anticipated.

More information regarding these risks and uncertainties appears in the section entitled forward looking statements in the press release issued today for a more complete list and description. Please see the risk factors section of the company's quarterly report on Form 10-K for the year ended December 31 2023.

Omid C. Farokhzad: We launched the Seer Technology Access Center, or STAC, which allows a proteograph user to run samples in their own lab and have Seer run the mass spec, or alternatively, provide end-to-end study services from study to sample. We have seen strong demand for SAC, with 48 organizations using this service as of year end, including large pharmaceutical companies. Revenue from STAC grew significantly quarter over quarter. In the fourth quarter, STAC revenue was the vast majority of services revenue.

And in its other filings with the Securities and Exchange Commission.

Except as required by law.

Claims any intention or obligation to update or revise any financial projections or forward looking statements because of new information future events or otherwise.

Omid C. Farokhzad: We also introduced the Strategic Instrument Placement Program, or SIPP, to allow researchers to begin using the protograph right away by utilizing available operating budget. This not only removes another barrier to access but also facilitates data generation that will help secure the necessary funding and samples for more extensive and impactful studies in the future. And finally, last November, we expanded our Centers of Excellence programs with the addition of PanoBio, a world-class metabolomics service provider with expertise in mass spectrometry. By combining deep proteomic insights at the peptide level with their proprietary metabolomics workflow, Pano-On-Bio will enable unique studies with robust pathways analysis to significantly advance research in biomarker discovery and drug development.

This conference call contains time sensitive information and is accurate only as of the live broadcast February 29, 2024 with that I'd like to turn the call over to Amit.

Thanks, Carrie and thank you everyone for joining us. This afternoon I will begin our call today by providing updates on our recent progress, including some exciting customer data.

Looking ahead, we are laser focused on converting these incredible biological insights into accelerated commercial adoption and I will share the actions, we're taking to make this happen.

I will then turn the call over to David to provide more detail on our financial results for 2023, and the revenue outlook puts likely 'twenty four.

In 2023, we grew revenue, 8% to $16 $7 million and ended the year with over $373 million in cash cash equivalents and investments.

The body of biological insights and data growth I expect adoption and revenue will become more aligned with our expectations.

Omid C. Farokhzad: As we have said, the combination of our novel technology, the paucity of peer-reviewed publications, as well as conservative budgeting continues to drive an elongated sell cycle for the protograph. That said, we're seeing great interest in Stack with a robust pipeline of opportunities, indicating this was an important step in enabling access to the PortraGraph technology. Stack has helped us secure a foothold with several large pharma companies. We're starting to see momentum in usage of these large pharma customers with strong ordering and some outsourcing additional work due to internal demand. These customers have the funding, samples, and motivation to adopt our technology and advance their biological discovery. We expect this program to continue to be an important driver for adoption from these types of customers.

Our mission at tier is to bring the power of unbiased proteomics to researchers around the globe.

To achieve this we need to open up a new gateway to the proteome to enable the next frontier in biology to be explored.

Changing the status quo in this way is an enormous undertaking when we first introduced the protium <unk> product suite for unbiased deep proteomics at scale. There was a huge mountain to climb in terms of market development and education.

Over the course of this past year, we made important progress.

And climbing this mountain.

I am deeply proud of our team's work and yet there is still much work to be done to translate the incredible performance, we're seeing from the project graph into widespread commercial adoption.

Omid C. Farokhzad: As we continue to educate the market on the value of the protograph, we have started to see potential customers previously on the sidelines turning into strong advocates once they have seen the data and the insights that the protograph can provide. I remain convinced that once our technology becomes increasingly accessible to the broader research community, our market development efforts will pay off, and we will see an inflection point in adoption, the size of studies, and ultimately, revenue. Throughout the year, we made great progress in validating our technology and expanding our commercial reach. We onboarded four new distributors and partners in Australia, Eastern Europe, Israel, and Japan. We obtained ISO 27001 certification, increasing our information security and cybersecurity standards, making us more effective with stack in our labs and collaborations, and forming a bridge for General Data Protection Regulation, or GDPR, compliance for our European customers.

Our customers have started to demonstrate the powerful biological insights from the photograph on this day that is nothing short of incredible.

Most recently, we saw our first customer study published in nature Communications.

Given the unique insights that project graph is enabling relative to other proteomics platform. We expect several more publications in high impact journals throughout the year.

This will be critical for us to reach an inflection point for widespread adoption and revenue growth.

We remain laser focused on developing and enhancing our technology, removing barriers to adoption and expanding our commercial reach.

Over the past year, we made a number of important advancements to our technology.

In June we launched our protium <unk> XT assay kit and the feedback has been fantastic.

Since its launch we have upgraded over half of our customer base to run the new assay kit.

<unk> improved the throughput our initial assay and reduces the mass spec time for example by two five fold without sacrificing depth.

Omid C. Farokhzad: We also received ISO 13485 certification, establishing the processes, people, and systems for quality management, and laying the groundwork for the creation of the highest quality, reliable solutions and enabling the utilization of our products in FDA submissions. We have also seen a growing validation of our technology, both from Seer and customer publications. Since the beginning of 2022, we have published several high-impact peer-reviewed papers on our differentiated proprietary engineered nanoparticle

The efficiency allows the single technician to handle hundreds of samples per week and approximately 10000 samples annually with just one project graph XD and our leading mass spec instrument.

We also made important improvement to our Produc analysis suite or path to provide biologists access to an understanding of deep.

Im biased towards the oil mix readily and easily for any application they choose including peripheral genomics analysis.

We made significant updates on the quality and quantity of protein and peptide identification you can get from past and re engineered our mass spec analysis workflow to leverage cutting edge analysis advancements at scale.

Omid C. Farokhzad: These publications demonstrate how our ProteoGraft product suite workflow has superior performance in terms of precision, depth, and throughput compared to conventional workflows and can identify undiscovered links between health and disease at peptide-level resolution that can illuminate the role of protein variants. We've consistently said that one of the most important drivers of adoption would be the validation of our technology with third-party data. In addition to our publications, we're aware of 180 public presentations to date and 48 posters and presentations by customers. To date, we have eight preprints, four peer-reviewed Seer publications, and one peer-reviewed customer publication showcasing the value of Seer technology. We expect to see the number of peer-reviewed publications grow throughout the year. In January, Prognomic demonstrated the largest deep multiomic study completed to date in its preprint article in MedArchive. This study involved 2,513 individuals, including patients with all stages of lung cancer, comorbid controls, and healthy subjects.

And finally last month, we made our protein discovery catalog available to our customers prospective customers and interested parties.

With over 10000 proteins in plasma across 1900 pathways that can be detected and interrogated using the appropriate graph.

This provides our first published index of the unprecedented depth of empirically observed proteins captured by a nanoparticle technology to date.

The catalog includes proteins linked to over 115000 peptide that can serve as data points for potential biomarkers, including proteins, not yet associated with diseases, making it a rich source of biological insight.

We look forward to expanding this library over time as more samples are interrogated by the protium <unk> platform and more mass spec based proteomic data becomes available.

We also made important strides removing barriers to improve access.

We launched this year technology access center or stack, which allows the portio graph user to run samples in their own lab and have you run the math back or Alternatively provide end to end steady of services from study two sample.

Omid C. Farokhzad: Utilizing the proteograph for the proteomic portion of this study, they were able to measure over 8,300 proteins, which were then combined with over 200,000 RNA transcripts and 1,000 metabolite measurements to drive a multi-omics classifier. This classifier achieved a sensitivity of 80% for stage 1 and 89% for all stages of lung cancer at 89% specificity. Also in January, a second manuscript was made available on bioRxiv and will be submitted for peer-reviewed publication. This study was a collaboration between Alzheimer's disease luminaries from MGH and Mass Gen Institute for Neurodegenerative Diseases and investigators at Seer. This study looked at 1,800 plasma samples comprising both controls and individuals diagnosed with cognitive decline, including Alzheimer's disease.

We are seeing strong demand for stock with 48 organizations using this service as of year end, including large pharmaceutical companies.

Revenue from stack grew significantly quarter over quarter in the fourth quarter stock revenue was the vast majority of services revenue.

We also introduced the strategic instrument placement program or Sip to allow researchers to begin using the product graph right away, while utilizing available operating budgets.

This not only removes another barrier to access but also facilitates data generation that will help secure the necessary funding in samples for more extensive and impactful studies in the future.

And finally last November we expanded our centers of Excellence program with the addition of panel Bio award cost metal below mix service provider with expertise in mass spec.

By combining deep proteomic insights at the peptide level with their proprietary metabolomics workflow panel bio will enable unique studies with robust pathways analysis to significantly advance research in biomarker discovery and drug development.

Omid C. Farokhzad: The researchers identified 138 proteins that were up or down-regulated in AD individuals, and of these 138 proteins, only 44 have been previously associated with AD. The remaining 94 represent putative biomarkers of AD, potentially unlocking new biological insights. Interestingly, 55% of these 138 proteins are not present on a commercially available HyPlex affinity-based panel, meaning researchers would not be able to see these proteins using that panel. The MGH investigators used this clinical information to identify the point of significant cognitive decline and determine which of the 138 proteins separated the population into fast and slow cognitive decliners. We identified eight such significant proteins and are now investigating how these results may be advanced to develop a clinical score indicating the likelihood of cognitive decline within a particular time frame.

As we have said the combination of our novel technology. The paucity of peer reviewed publication as well as conservative budgeting continues to drive.

Elongated sales cycles for the part of the graph.

That said, we're seeing great interest in stack with a robust pipeline of opportunities, indicating this was an important step in enabling access to the photograph technology.

Stock has helped us secure foothold with several large pharma company, we're starting to see momentum and usage of these large pharma customers with strong ordering and some outsourcing additional work due to internal demand.

These customers have the funding samples and motivation to adopt our technology and advanced biological discovery. We expect this program to continue to be an important driver for adoption from these types of our customers.

As we continue to educate the market on the value of the project graph, we have started to see potential customers previously on the sidelines turning to strong advocate once they have seen the data and the insights that the protium <unk> can provide IRA.

Omid C. Farokhzad: While this study could not have been done using high-flex affinity-based approaches, it also could not have been done without the proteograph since there is no other practical way to do a deep, unbiased proteomics study of 1,800 plasma samples other than leveraging the Protograph products. This represents the largest deep, unbiased, A-D proteomic study completed to date with highly differentiated and novel biological insight. With regard to the Nature Communication paper that I mentioned earlier, I'm very excited to share that this study was led by Professor Karsten Suri at Weill Cornell Medicine and demonstrated the identification of protein-altering variants for population-scale PQTL studies. The proteograph workflow was used upstream to a mass spec to analyze over 18,000 peptides from 3,000 proteins in more than 320 blood samples to detect and quantify blood-circulating proteins in the presence When affinity-based approaches are used for PQTL analysis, these ligands bind to a specific epitope of the protein, and variants of these proteins can alter ligand binding.

I remain convinced that once our technology becomes increasingly accessible to a broader research community our market development efforts will pay off and we will see an inflection point in adoption the size of studies and ultimately revenue.

Throughout the year, we made great progress validating our technology and expanding our commercial reach.

We on boarded four new distributors and partners in Australia, Eastern Europe, Israel and Japan.

We obtained ISO 27001 certification, increasing our information security and cyber security standards, making us more effective with stack in our labs and collaborations and forming a bridge for general data protection regulation or GDP or compliance.

For our European customers.

We also received ISO 13485 certification, establishing the processes people and systems for quality management and laying the ground work for the creation of the highest quality reliable solutions and enabling the utilization of our products and <unk>.

Submissions.

We have also seen a growing validation of our technology, both from <unk> and customer publication.

Since the beginning of 2022, we have published several high impact peer reviewed papers on our differentiated proprietary engineered nanoparticle technology.

Omid C. Farokhzad: This altered binding is often falsely interpreted as a PQTL, which can result in incorrect biological insight. However, with the proteograph, protein abundance is quantified at the peptide level resolution, accurately identifying PQTLs and allowing a better understanding of the disease mechanism and more successful drug discovery efforts. This study illustrates the effectiveness of Seer's approach in unraveling intricate connections between genetic variations and proteins, which are vital for developing innovative therapeutic approaches for various diseases and, we believe, will have an enormous impact on human health.

These publications demonstrate how our project to our product suite workflow has superior performance in terms of precision depth and throughput compared to conventional workflows and can identify undiscovered links between health and disease App peptide level resolution that Kevin.

Emanate the rollout protein variance.

We've consistently said that one of the most important drivers of adoption would be the validation of our technology with third party data.

In addition to our publications, we're aware of 180 public presentations to date, and 48 posters and presentations by customers.

To date, we have eight pre prints.

Omid C. Farokhzad: In addition, another paper from Professor Chris Mason's lab at Royal Cornell Medical, demonstrating the value of the protograph, has been accepted in Nature Communications. And I look forward to sharing more information once this paper has been published. We have seen incredible interest in the field of proteomics and the value it provides over the last five years.

Four peer reviewed publications and one peer reviewed customer of obligation showcasing the value of <unk> technology.

We expect to see the number of peer reviewed publications growth throughout the year in.

In January <unk> demonstrated the largest deep multi omics study completed to date and the preprint article in met archive.

This study involved 2513 individuals including patients with all stages of lung cancer co morbid controls and the healthy subjects.

Omid C. Farokhzad: And the pace has significantly picked up in the last 12 months. This is exemplified by several high-impact publications and an increase in both private and public funding for poliomic research, including a recent grant from the NIH of $50 million for over five years to establish a new consortium for multi-omics research on human health. With the ability to analyze larger and more complex data sets using emerging technologies, the goal of the consortium is to develop scalable and generalizable maltheomic research strategies to advance our understanding of disease onset and progression.

Utilizing the protium graph for the Proteomic portion of this study they were able to measure over 8300 proteins, which were then combined with over 200000, R&D transcripts and 1000 metabolized measurements to drive multi omics classifier.

This classifier represents a potentially best in class performance.

Achieving a sensitivity of 80% for stage, one and 89% for all stages of lung cancer at 89% specificity.

Also in January a second manuscript was made available on bio archive and will be submitted for peer reviewed publication.

Omid C. Farokhzad: We look forward to seeing more funding for these types of projects as researchers continue to advance their studies and enable novel biological insights. Genomic researchers are increasingly finding that proteomics data and, consequently, multiomics data have greater power than genomic data alone. As I alluded earlier, the value of this is now shown by the largest, deepest multiomic study completed to date by Pragnomics, resulting in the best publicly available data for early detection of lung cancer. Beyond the value of proteomics in the research setting, we're also seeing the groundwork being laid to incorporate more protein markers for clinical use. Recently, Palmetto's Maldex proposed billing and coding guidelines to write coverage decisions for clinical proteomic diagnostic assays, where policy was previously only written for tests where DNA or RNA were the primary analyzer.

This study was a collaboration between Alzheimer's disease luminaries from MGH and mass Gen Institute for newer degenerative diseases and investigators at sphere.

This study looked at 1800 plasma samples comprising both controls and individuals diagnosed with cognitive decline, including Alzheimer's disease.

The researchers identified 130, <unk> proteins that were up or down regulated in individuals and of these 138 proteins. Only 44 has been previously associated with IV.

The remaining 94 represent putative biomarkers of.

Potentially unlocking new biological insights.

Interestingly, 55% of these 138 proteins are not present on a commercially available high Plex F&B based panel, meaning researchers would not be able to see these protein using that panel.

The MGH investigators used this clinical information to identify at the point of significant cognitive decline and determine which of the 138 proteins separated the population into fast and slow cognitive decliners.

Omid C. Farokhzad: This unlocks a substantial clinical opportunity by increasing the chances that proteomics diagnostic assays have utility when launched into the market and is an important pathway to reimbursement for proteomics assays. Looking ahead in 2024, we will continue to execute against our core strategies of driving evidence and publications with our Portuguese products, continuing to enhance access, innovate with our products, and expand our application. While much work remains, we're excited and inspired by the opportunity that lies in front of us. With that, I will now turn the call over to David. Thanks, Omid. Total revenue for the fourth quarter of 2023 was $4.4 million, representing a decrease of 4% compared to $4.6 million in the fourth quarter of 2022. The decrease is primarily due to a decrease in lease revenue related to SP-100 instruments, which was partially offset by an increase.

We identified eight such significant proteins and <unk>.

Investigating how these results may be advanced to develop a clinical score, indicating the likelihood of cognitive decline in a particular timeframe.

While this study could not have been done using high plex affinity based approaches. It also could not have been done without the protium graph. Since there is no other practical way to do a deep unbiased per deal mix steady up 1800 plasma sample.

They're they're leveraging the prodrug our product suite.

This represents the largest deep unbiased AAD proteomics study completed to date with a highly differentiated and novel biological insight.

With regards to the major communication paper that I mentioned earlier I'm very excited to share that this study was led by professor Carsten sorry at Wild Cornell Medicine, and demonstrated the identification of protein altering variance for population scale.

David R. Horn: Product revenue for the fourth quarter of 2023 was $3 million, including $366,000 of related party revenue and consisted of sales of SP-100 instruments and consumables. Service revenue was $1.1 million in the fourth quarter of 2023, including $201,000 of related party revenue and primarily consisted of revenue related to stack. As Omid mentioned, we are seeing good customer interest in our stack program, where we will run mass spec for our customers and, in some cases, provide a full workflow solution for customers who would like to access our technology. Grant and other revenue was $258,000 in the fourth quarter of 2020, largely related to our SBIR grant from the NIH.

<unk> studies.

The protium <unk> workflow was used upstream to a mass spec to analyze over 18000 peptides.

From 3000 proteins in more than 320 blood samples to detect and quantify blood circulating proteins in the presence of protein altering variance.

When the affinity based approaches are used for PQ <unk> analysis.

These ligand bind to a specific epitope of the protein and.

And various of these proteins can alter the ligand binding.

This altered binding is often falls be interpreted as a PQ TL, which can result in incorrect biological insight. However.

With the Proteus graph proteins abundant is quantified at the peptide level resolution.

Accurately identify PQ, tls, and allowing a better understanding of disease mechanism and more successful drug discovery efforts.

David R. Horn: In the fourth quarter, we utilize the remaining funds available under the SBIR grant and do not anticipate booking any more revenue under this grant in 2025. Total gross profit was $2 million for the fourth quarter of 2023, representing a gross margin of 45.1%, compared to $2.3 million in the fourth quarter of 2020, representing a gross margin of 49.8%. We continue to expect variability in our overall gross margin on a quarter-by-quarter basis. The proportion of instrument, consumable, and service revenue will fluctuate for any given course.

This study illustrates the effectiveness of tiered approach in unraveling intricate connection between genetic variations in protein, which are vital for developing innovative therapeutic approaches for various diseases and we believe we will have an enormous impact on human health.

In addition, another paper from Professor Chris Mason's lab as Wild Cornell medical demonstrating the value of the Protium graph has been accepted in nature communications and I look forward to sharing more information. Once this paper has been published.

We have seen incredible interest in the field of proteomics and the value. It provides over the last five years and the velocity has significantly picked up in the last 12 months.

This is exemplified by several high impact publications and an increase in both private and public funding for proteomics research, including a recent grant from the NIH of $50 million.

David R. Horn: Looking ahead to the full year 2024, we expect gross margins to be in the range of the mid-40s to 50%. Total operating expenses for the fourth quarter of 2023 were $24.2 million, including $7.6 million of stock-based compensation. A decrease of 11% compared to $27.2 million, including $8.2 million of stock-based companies, in the fourth quarter of 2020. Research and development expenses for the fourth quarter of 2023 were $11.2 million, a decrease of 12%, compared to $12.6 million in the fourth quarter of 2022. The decrease in R&D expenses was primarily due to a decrease in employee and stock-based compensation as well as laboratory expenses.

For over five years to establish a new consortium for multi Omics research on human health.

With the ability to analyze larger and more complex data sets using emerging technologies.

Youll have the consortium is to develop a scalable and generalizable multi almac research strategies to advance our understanding of disease onset and progression.

We look forward to seeing more funding for these types of projects as researchers continue to advance their studies and enable novel biological insights.

Genomic researchers are increasingly finding that proteomics data.

And subsequently multi omics data has greater power than genomic data alone.

As I alluded earlier the value of this is now shown by the largest deepest multi omics study completed to date byproduct gnomic, resulting in the best publicly available data for early detection of lung cancer.

Beyond the value of procurements in the research setting. We're also seeing the groundwork being laid to incorporate more protein markers for clinical use.

Recently, Palmetto log decks proposed billing and coding guidelines to write coverage decisions for clinical proteomics diagnostic assays, where policy was previously only waiting for tests, where DNA or RNA, where the primary analytics.

David R. Horn: Selling general and administrative expenses for the fourth quarter of 2023 were $13.1 million, a decrease of 11% compared to $14.6 million in the fourth quarter of 2022. The decrease in SG&A expenses was primarily driven by a decrease in professional services costs as well as employee and stock-based competition. The net loss for the fourth quarter of 2023 was $17.8 million, compared to $22.5 million in the fourth quarter of 2020. Turning to the full year, total revenue for the full year 2023 was $16.7 million, compared to $15.5 million in 2022, representing an increase of 8% year-over-year. The increase was primarily driven by service revenue related to staff.

Lots of substantial clinical opportunity by increasing the chances the proteomics diagnostic assays has utility when launched into the market and is an important pathway to reimbursement for proteomics assays.

Looking ahead in 2024, we will continue to execute against our core strategies are powering evidence and publications with the paragraph products week continuing to enhance access.

With our product and expand our applications.

While much work remains we are excited and inspired by the opportunity that lays in front of us with that I will now turn the call over to David.

Thanks, Amit total revenue for the fourth quarter of 2023 was $4 4 million representing.

Representing a decrease of 4% compared to $4 $6 million in the fourth quarter of 2022. The decrease was primarily due to a decrease in lease revenue related to SP 100 instruments, and partially offset by an increase in service revenue.

David R. Horn: Product revenue was $12.9 million, including $4.4 million of related party revenue compared to $13.8 million, including $5.2 million of related party revenue. Service revenue was $2.3 million for the full year 2023, including $241,000 of related party revenue compared to $913,000 for the full year 2022, which did not include any related party. Grant and other revenue was $1.5 million for the full year 2020, compared to $800,000 for the full year. We shipped 23 SP-100 instruments in 2023, bringing our cumulative instrument shipments to 62 instruments, as of December 31st, 2020. We continue to see a mix of orders from commercial and academic customers, with a slight majority of placements continuing to be with commercial customers. Total gross profit was $8.5 million for the full year 2023, representing a gross margin of 51.1% compared to $7.1 million for the full year 2022, representing a gross margin of 45%. Total operating expenses for 2023 were $112 million, inclusive of $34.4 million in stock-based compensation, compared to $104.3 million for Mella, and so on.

Product revenue for the fourth quarter of 2023 was $3 million, including $366000 of related party revenue and consisted of sales of SP 100 instruments and consumable kits.

Service revenue was $1 1 million in the fourth quarter of 2023, including $201000 of related party revenue and primarily consisted of revenue related to stack as Hamid mentioned, we are seeing good customer interest in our stack program, where we will run mass spec for our customers and in some cases provide a full workflow solution for customers, who would like to ask.

Our technology.

Grant and other revenue was $258000 in the fourth quarter of 2023 largely related to our SPRI grant from the NIH in the fourth quarter, we utilized the remaining funds available under the <unk> Grant and do not anticipate booking any more revenue under this grant in 2024.

Total gross profit was $2 million for the fourth quarter of 2023, representing a gross margin of 45, 1% compared to $2 3 million in the fourth quarter of 2022, representing a gross margin of 49, 8%. We continue to expect variability in our overall gross margin on a quarter by quarter basis as the proportion of.

<unk> consumable and service revenue will fluctuate for any given quarter.

Looking ahead to the full year 2024, we expect gross margins to be in the range of the mid <unk> to 50%.

Total operating expenses for the fourth quarter of 2023 were $24 2 million, including $7 6 million.

Stock based compensation, a decrease of 11% compared to $27 2 million include.

Including $8 2 million of stock based compensation in the fourth quarter of 2022.

Research and development expenses for the fourth quarter of 2023 were $11 2 million.

David R. Horn: Research and development expenses for 2023 were $53 million compared to $45.8 million in 2020. Selling general and administrative expenses for 2023 were $59 million compared to $58.5 million. Net loss for 2023 was $86.3 million, compared to $93 million. We ended the year with approximately $373.1 million in cash, cash equivalents, and investments.

A decrease of 12% compared to $12 6 million in.

In the fourth quarter of 2022, the decrease in R&D expenses was primarily due to a decrease in employee and stock based compensation as well as laboratory expenses.

Selling general and administrative expenses for the fourth quarter of 2023 were $13 1 million a decrease of 11% compared to $14 6 million in the fourth quarter of 2022.

The decrease in SG&A expenses was primarily driven by a decrease in professional services costs as well as employee and stock based compensation.

David R. Horn: With our extremely strong balance sheet and disciplined deployment of capital, we believe we are well-funded to execute our strategic plan for many years to come. Turning to our Outlook. We expect revenue to be in the range of $18 to $20 million for 2024, representing growth of 14% year-over-year at this time. Similar to 2023, we expect revenue to be more weighted to the second half.

Net loss for the fourth quarter of 2023 was $17 $8 million.

Compared to $22 5 million.

In the fourth quarter of 2022.

Turning to the full year total revenue for the full year 2023 was $16 7 million compared to $15 5 million in 2022, representing an increase of 8% year over year. The increase was primarily driven by service revenue related to stack product revenue was $12 $9 million, including for.

$4 million of related party revenue compared to $13 8 million.

In 2022, including $5 $2 million of related party revenue.

David R. Horn: As we work to develop this market, we are focused on driving evidence and publication, enhancing access, and driving product innovation. We continue to see strong interest in the protograph and its value proposition. We remain confident in our ability to capitalize on the massive... As Omid shared, we are laser-focused on connecting the incredible biological insights from our customers to Accelerated Commercial Adoption. We're committed to maintaining a strong financial and are taking a very disciplined approach with our spend. Free cash flow was approximately $66 million for the full year 2023, and we estimate that our 2024 free cash burn will be less than our free cash burn in... At this point, I would like to turn the call back to Omid.

Service revenue was $2 3 million for the full year 2023, including $241000 a related party revenue compared to $913000 for the full year 2022, which did not include any related party revenue.

Grant and other revenue was $1 $5 million for the full year 2023 compared to $800000 for the full year 2022, we shipped 23 SP 100 instruments in 2023, bringing our cumulative instrument shipments to 62 instruments as of December 31 2023.

We continue to see a mix of orders from commercial and academic customers with a slight majority of placements continue to be with commercial customers at this stage.

Total gross profit was $8 5 million for the full year 2023, representing a gross margin of 51, 1% compared to $7 1 million.

For the full year 2022, representing a gross margin of 45, 8%.

Total operating expenses for 2023 or $112 million inclusive of $34 4 million in stock based compensation compared to $104 $3 million inclusive.

Inclusive of $33 7 million in stock based compensation in 2022.

Omid C. Farokhzad: Thanks, David. I firmly believe that we have the technology that will transform our understanding of the proteome. Looking forward to 2024, we will continue to drive execution against our core strategies of driving evidence and publications, continuing to enhance access, innovating our products, and expanding applications. I'm confident in the substantial long-term opportunity ahead, and I look forward to continuing to update you on our progress throughout the year. With that, we will now open it up to questions. Certainly, one moment for our first question.

Research and development expenses for 2023 were $53 million compared to $45 8 million in 2020 to selling general and administrative expenses for 2023 were $59 million compared to $58 5 million in 2022.

Net loss for 2023 was $86 3 million.

Compared to $93 million in 2022.

We ended the year with approximately $373 1 million in cash cash equivalents and investments with our extremely strong balance sheet and disciplined deployment of capital. We believe we are well funded to execute our strategic plan for many years to come.

Turning to our outlook for the year, we expect revenue to be in the range of $18 million to $20 million for.

For 2024, representing growth of 14% year over year at the midpoint similar to 2023, we expect revenue to be more weighted to the second half of the year.

Daniel Gregory Brennan: And our first question comes from the line of Dan Brennan from TD Cowen. Your question, please. Hey, guys, congrats. Thanks for the questions.

As we work to develop this market we are focused on driving evidence and publication enhancing access and driving product innovation and applications. In 2024, we continue to see strong interest in the program and its value proposition for customers. We remain confident in our ability to capitalize on the massive opportunity ahead as Amit shared we are laser focused on connecting.

David R. Horn: Maybe the first one, just on the revenue in the fourth quarter, ex-prognomic, was actually better than we expected. Obviously, Prognomic's a critical customer, but it's nice to see some diversification. Just wondering how we think about implicit in the 24 outlook. Are you seeing more traction ex-prognomic? Can you just give us any color, like what we're thinking prognomic versus your other customers for 24? Thanks, Dan, and David.

Any credible biological insights from our customers to accelerated commercial adoption, we're committed to maintaining a strong financial position and are taking a very disciplined approach with our spend free cash flow was approximately negative $66 million for the full year 2023, and we estimate that our 2020 for free cash burn will be less than our free.

Cash burn in 2023.

At this point I would like to turn the call back to meet for closing comments.

Thanks, David.

I firmly believe that we have the technology that will transform our understanding of the proteome looking forward in 2024, we will continue to drive execution against our core strategies of driving evidence and publications continuing to enhance access innovating our products and expanding applications I am <unk>.

David R. Horn: I appreciate the question. Yeah, so Prognomic, just to update you on where they are, they completed their 3,000 sample study. And so they're moving, and very successfully, I might add, and they have published their data or posted it on MedArchive. They are moving to the development phase. So they're still using the product, but they're doing less discovery work now. And so are we, which is why you saw a little bit lower revenue in the fourth quarter.

Confidence in the substantial long term opportunity ahead, and I look forward to continuing to update you on our progress throughout the year with that we will now open it up to questions.

Certainly one moment for our first question.

And our first question comes from the line of Dan Brennan from TD Cowen Your question. Please.

David R. Horn: And looking to 2024, we also expect them to be a significantly lower percentage of our overall revenue in 2024 as a result of that. And again, we continue to see good interest from other parties. So again, that's kind of how we're viewing 2024 from a prognomic perspective. And then, obviously, you talked a lot about some of the exciting publications and clinical evidence or kind of research evidence building. Just wondering, could you spell out a little bit, like, as we sit here today?

Hey, guys, congrats and thanks for the questions.

First one just on the revenue in the fourth quarter ex programmatic was actually better than we expected. Obviously, you probably know Mike is a critical customer, but it's nice to see some diversification I'm just wondering how we think about inputs in the 'twenty four outlook are you seeing more traction next product gnomic can you just give us any color on what we're thinking probably gnomic versus your other customers.

For 24.

Omid C. Farokhzad: end of February. If we're sitting here, I don't know, September, how many of these you can't really, you know, kind of guess at exact timing, but you kind of see the funnel of these third-party publications, which have been viewed to be an important driver for uptake. So, kind of, where do you think we are in six months from now? And, you know, what do you think about, again, the confidence level? Like, David, you talked about this being a second half-weighted year.

Thanks, Dan It's David I appreciate the question.

So <unk> just to update you on where they are.

They completed their 3000 samples study and so they're moving and very successfully I might add.

Published their data or posted unmet archive.

They are moving to that.

Development phase. So there you are still using the product.

But they are doing less discovery work now so we do it which is why you saw a little bit lower revenue and the.

<unk> fourth quarter and looking to the 2024, we also expect them to be.

Omid C. Farokhzad: Could you actually see some real traction as two or three or four of these hit, and customers who you believe have been waiting can kind of, you know, see what the evidence in customer hands looks like? Do you really see an uptick by the end of the year? Just any comment on that would be helpful. Great. This is Omid, and thank you for the question.

Significantly lower percentage.

Of our overall revenue in 2024 as.

As a result of that and again we.

We continue to see good interest from other parties so.

Again, thats kind of how we're viewing 2024 from from a pregnant with perspective.

Got it and then and then obviously you talked a lot about some of the exciting publications and clinical evidence or kind of research evidence building.

Omid C. Farokhzad: So we're aware of approximately 180 public presentations, and that includes just around 50 posters presented by customers. In total, there have been nine preprints, five peer-reviewed publications, four of them were ours. The first customer peer-reviewed paper came out.

Just wondering could you could you spell out a little bit like as we sit here today and.

And the February if we're sitting here I don't know September how many of these I know you can't really.

Gasich exact timing, but you kind of see the funnel of these third party publications, which have been viewed to be an important driver for uptake. So kind of where do you think we are in six months from now and.

Omid C. Farokhzad: That was the Carcensory Nature Communication paper. I know at least two more papers that are forthcoming this quarter that will be published. I expect another Nature Communication paper. It's been accepted, and that should be published. And then one more coming in Nature.

How do you think about again the confidence level.

David you talked about this being a second half weighted year.

Could you actually see some real traction as two or three or four these hit.

Omid C. Farokhzad: So the quality of the papers that are coming is quite high. But on the back of that, we also have the ability to... several more papers that are either being submitted on BioRxiv or some of the BioRxiv papers moving through the peer review process and coming out as peer-reviewed publications. Again, the exciting part of it is that these initial, if you would, cohort of publications that are coming out are all coming in great journals, and I think it's in part because... They represent a data package that was previously not possible to achieve without using the protograph, meaning the kinds of body of data that is being seen, the proteins that are being identified that may be important in health or disease are either not entirely present on the HyPlex panels.

And customers, who you believe have been waiting can kind of see what the evidence in customer hands. Thank you Barry.

And uptake by the end of the year, just any color on that would be would be helpful.

Great.

Amit and thank you for the question.

So we're aware of approximately 180 public presentations and that includes just around 50 poster presentation by customers.

In total there.

It's been nine preprint.

Five peer reviewed publications for.

Ours.

First customer peer reviewed paper came out that was the.

The Carson story nature communication paper I know at least two more papers that are forthcoming this quarter that will be published.

I expect another nature communication paper.

Which has been accepted and that should be published.

And then one more coming in nature. So the quality of the papers that are coming are quite high.

Omid C. Farokhzad: So if you used those as an option, you would not see them. Or alternatively, if you went down an unbiased approach without the protograph, you could never get to the depth of the study to see some of those proteins, and you certainly couldn't scale them to the degree where the study was powered enough on some of those differences. Consequently, these initial cohorts of papers are all coming out in great journals, and it's really exciting to see. I do expect that this is going to help with traction, but I really want to temper the enthusiasm by saying that I'm not expecting a hockey stick.

But on the back of that we also have visibility to several more papers.

That are either being submitted and bio archive or some of the buyer archived papers moving through the peer review process and coming as peer reviewed publications again, the exciting part of it is that these initial if you would.

Cohort of publications that are coming.

We're all coming in Great Journal, and I think thats in part because.

They represent a data package that was previously not possible to achieve without using the prettier graph, meaning the kinds of body of data that is being seen the proteins that are being identified that may be important in health or disease.

Omid C. Farokhzad: I mean, this is literally a brick-by-brick building. But what's coming is very exciting, and the data is very compelling. Great. Okay. Thanks, Omid.

Are either.

Not entirely present on the high Plex panels. So if you use those as an option you would not see them where.

We're alternatively, if you went down and unbiased approach without the photograph you could never get to the depth of the study to see some of those proteins and we certainly couldn't scale and to the degree where the study was powered enough to see some of those differences. Consequently, this initial cohort of paper.

Operator: Thanks, David. Thank you. One moment for our next question, and our next question comes from the line of Tejas Savant from Morgan Stanley. Your question, please. Hey guys, good afternoon.

They are all coming out in Great Journal that is really excited to see I do expect that this is going to help with traction, but I really wanted to temper the enthusiasm in that I'm not expecting a hockey stick I mean, this is literally a brick by brick building, but what's coming is very exciting and the data.

Tejas Rajeev Savant: Omid, David, maybe just to kick things off, can you share a little bit of color on just the length of the sale cycle as you see it today for the CapEx sales versus what it was last year? And on a related note, David, could you help parse out those 23 placements this year, or I guess instrument shipments this year between SIP versus outright purchases? I think in the past you talked about a 50-50 split. Is that what we should be expecting for 24 as well? Tejas, Hey there, Omid here.

It's very compelling.

Great. Okay. Thanks, Amit Thanks, David.

Thanks, Dan.

Thank you one moment for our next question.

And our next question comes from the line of Tejas Savant from Morgan Stanley. Your question. Please.

Hey, guys good afternoon.

David maybe just to kick things off can you share a little bit of color on just the length of the sales cycle as you see it today for the Capex sales versus what it was last year and on a related note David could you help parse out those 'twenty three placements this year or I guess instrument shipments this year.

Omid C. Farokhzad: Look, I think there are a number of factors playing into the whole sell cycle. I mean, I think the macroeconomic environment is certainly playing a role. We have seen a slowdown in China, and that is continuing. And the buy from us spending, in terms of the CapEx budget, is constrained specifically for these new technology platforms like Seer. But that uncertainty isn't because of a lack of desire to acquire; it's just cautiousness that goes into getting over a threshold before they bring it in. Now, that's the case with bringing the platform in-house. It's almost an entirely different world, Tejas, if you look at the stack, where we have seen a robust pipeline, a lot of interest, repeat business, and quarter over quarter, very significant growth in terms of the stack demand and the stack pipeline. In fact, we have a backlog for that. Now, that said,

Between Sip versus outright purchases I think in the past you talked about a 50 50 split is that what we should be expecting for 'twenty four as well.

Hey, Jack Hey, there Amit here.

Look I think there is.

There are a number of factors playing into the wholesale cycle.

And the macro economic environment is certainly playing a role we have seen a slowdown in China and that is continuing.

And the Biopharma spending.

In terms of the Capex budget is constrained specifically for these new technology platforms like sphere, but but that certainly isn't.

Because of.

A lack of desire to acquire its just cautiousness that goes into getting over threshold.

Omid C. Farokhzad: Don't expect that quarter-over-quarter revenue doubling in the KSAT stack to continue because, For better or for worse, Tejas, it's a business decision. I am capping capacity for KSAT, and I don't want to build capacity because I'm not interested in becoming a service. We want to keep capacity as is, but there's a lot of demand in stacks. As customers come into the stack, they get data, and they generate some exciting data. If they want to remain on a service model, then I'd rather they work with our center of excellence, our COEs, where the COEs buy consumables from us.

Before you go before they bring it in now that's the case with the with bringing the platform in house.

With an entirely different world pays us if you look at the stack.

Where we have seen a robust pipeline a lot of interest.

<unk> business.

And.

Quarter over quarter.

Significant growth in terms of the stack demand in the stack pipeline.

In fact, we have a backlog in that now that said.

Don't expect for that quarter over quarter revenue doubling in the case of stack to continue.

For better for worse.

It's a business decision I am capping capacity for stack.

Omid C. Farokhzad: And again, we're in the business of selling consumables. We've obviously sold the platform to the COEs already. I'd rather if that continues versus Seer building an infrastructure to progressively grow and expand our service model. I don't want to do that.

And I don't want to build capacity because I'm not interested in becoming a service business, we want to keep capacity added, but theres a lot of that in stack as customers come into the stack they've got data they generate some exciting data if they wanted to remain on the service model that I rather if they.

Omid C. Farokhzad: And my expectation, by the way, Tejas, is that with the data that comes from this stack, together with the growing body of evidence in terms of the publication, that that is going to help us in terms of decreasing the cell cycle time for the platform and the consumable. David, do you want to tackle the second half? Yeah, on your question about the SIFT program, Tejas, so of the 23, about a third were loaners. So it was actually a little bit less than 50. And that's kind of, I think, where we may settle out. I mean, the good news is we shipped a high single-digit number of instruments in the fourth quarter. The majority of those were actually purchased, which is great.

Work with our center of excellence or Coes, whereas the coes by consumable from Us and again, we're in the business of selling consumable. We've obviously sold the platform to the Coes already I'd, rather if that continues versus seer building an infrastructure to progressive.

Grow and expand our service model I don't want to do that.

My expectation by the way suggested that with the data that come from this stack together with the growing body of evidence in terms of the publication that that is going to help us in terms of in terms of decreasing the sell cycle time offer the platform.

And the consumable David do you want to tackle the second half yes on your question on the Sip program teach us so of the 23 about a third were where loners. So it was actually a little bit less than the 50.

And Thats kind of I think where we may settle out I mean, the good news is we ship.

David R. Horn: But we continue to see interest in that program. So overall, for the year, we landed at about a third. And it's kind of what we're anticipating we'll see in 2020. And Tejas, let me also just add. Tejas, let me just add to the stack comment.

High single digit number of instruments in the fourth quarter. The majority of those were actually purchased which is great.

But we continue to see interest in that program. So.

Overall for the year, we landed at about a third.

That's kind of what we're anticipating we will see in 2024 as well.

Got it and also just add.

Omid C. Farokhzad: I mean, as you can imagine, we have customers worldwide, we have customers in Europe, we have customers in the US. And because of GDPR rules, the SAC is largely servicing our U.S. customer base. You can imagine that while I'm not interested in the service business, I do want to have a similar kind of business model outside of the U.S., so we are considering options to be able to offer SAC-like services outside of the U.S., and so I don't consider that really an expansion of a business model in terms of services; it's just how do we capitalize on a broader geography in what is arguably Super helpful.

Hey, Jeff Let me just add.

To that to the stack comment I mean as you can imagine we have customers globally, we have customers in Europe, we have customers in the U S.

And because of GDP or rules.

The stock is largely servicing our U S customer base, you can imagine that while I'm not interested in the service business I do want to have a similar kind of business model outside of US So we are considering options to be able to offer <unk> services outside of U S and so on.

I don't consider that really an expansion of the business model in terms of services. It's just how do we capitalize on a broader geography in what is arguably a very very successful strategy in terms of providing access to the photograph and as I know more about that I will share that with you.

Got it Super helpful.

Tejas Rajeev Savant: So changing gears a little bit, Omid, I think in the past you talked about upgrading your proteographs to the XT on your end. Just wanted to confirm that, of the 62 instruments out there, have most of them now essentially been upgraded? And then on a related note, there's been a lot of buzz around the Orbitrap Astral from Thermo and how that launch has gone for them. Can you just remind us how many astrals out there are now paired with the proteograph? Or perhaps if it's too early to ask that question, what does the funnel look like for the combination, and how do you see that sort of driving placements in 24?

So changing gears a little bit.

I think in the past you talked about upgrading your protein graphs to the XD by year end just wanted to confirm that after 62 instruments out that have most of them now essentially been upgraded and then on a related note.

Theres been a lot of buzz around the Alba trap Astral from thermal and how that launch has gone for them can you just remind us how many astral it's out there on our paired with the protein graph or perhaps if it's too early to ask that question. What does the funnel look like for the combination and how do you see that sort of driving placements in 'twenty four.

Omid C. Farokhzad: Tejas, the first part is an easy one because I follow that almost daily. Approximately 75% of our installed base has now been upgraded to the Protograph XT asset. And your comment about the actual performance being very well received by the market, I can share that with you, and as exemplified by the combination of the XT astral really demonstrating unprecedented performance in complex matrices like plasma, for example, or other complex matrices where the dynamic range is quite wide. I don't have a sense, Tejas, of the number of astrals out there, and in terms of either XT upstream to them or in discussions with that, I will have clarity on that, Tejas, more, I would say, over the next quarter or two, and we can have those discussions. But the combination of the two is quite powerful.

So.

On the first part is an easy one because I followed that almost daily which is approximately 75% of our installed base has now been upgraded to the pretty graphics the asset.

And your comments about the actual performance being.

Being very well received by the market I'd share that with you.

And as exemplified by the combination of the X. The Astral really demonstrating unprecedented performance and complex matrices light plasma for example, or other complex matrices, where the dynamic range is quite wide I don't have a sense.

Hey, Josh.

The number of hospitals out there in terms of either equity upstream to them or in discussions with that I will have clarity that pays us more I would say over the next quarter or two and we can have those discussions but the combination of the two is quite powerful I would also say that we're seeing.

Omid C. Farokhzad: I would also say that we're seeing extremely good results with the Bruker HT, and that too is an exceptional instrument, and that you can get really, really great data. Of course, the Astral provides a level of data that exceeds the other available options. Got it. Very helpful, Omid. Last question for me.

Extremely good results with the brokerage fee and that too is an exceptional instrument.

And.

You can get really really great data of course, the Astral provides a level of data that is that exceeds the other available options.

Got it very helpful.

Omid C. Farokhzad: You know, you talked about I think 10,000 samples per year on XT plus some of these next-gen mass specs. Can you sort of translate those numbers in terms of what they mean on a price per sample basis? And is the combination now, essentially, in your mind starting to be viewed as competitive by some of these larger population scale projects where, you know, any work that's happened at that scale so far has been more of a targeted approach? Tejas, I think we are moving in that direction because remember, the unique thing about the protograph is when you think about the cost. It's not only the consumable costs that you need to pay Seer, but there's also the depreciation and the instrument and the FDE cost that you need to pay to run that mass spec, right? So what DXT did was it materially decreased the use of the mass spec, therefore decreasing both the portion that you would assign the depreciation for that assay and also the FDE cost.

Last question for me.

You talked about I think 10000 samples per year on XD plus.

Some of these next gen mass specs.

Can you can you sort of translate those numbers in terms of what they mean on a price per sample basis and Easter is a combination now essentially in your mind starting to be viewed as competitive by some of these larger population scale projects, where any work that's happened at that scale. So far has been more on the targeted approach.

I think we are moving in the direction because remember the unique thing about the project graph is when you think about the cost yes.

It's not only the considerable costs that you need to pay sphere, but there is also the.

Depreciation and the instrument is the FTE costs that you need to pay us to run that mass spec right. So what <unk> did was it materially decrease the use of the mass spec. Therefore, decreasing both the portion that you would assign to depreciation for that assay and also the FTE cost.

Omid C. Farokhzad: We are absolutely, Tejas, approaching price points where population-scale deep unbiased proteomics is doable, and look, I put myself, I think, on the hot seat when I said my prediction is that sometime in 2024, such large studies will get initiated. Now, we've been in discussion by a number of parties to do that. I was actually really, really hoping that the UKBB project would have kicked off.

We are absolutely hedge us approaching price points, where <unk>.

Population skills deepen bias proteomics.

Are doable and look I put myself I think.

The heartbeat when I said in my prediction is that some time in.

In 2024.

Such large studies will get initiated now we've been in discussion by number of parties to do that I was actually really really hoping that the UK. Phoebe project would have kicked up we wanted to participate in that project I would've expected that data to really have catalyzed.

Omid C. Farokhzad: We wanted to participate in that project, and I would have expected the data to really have catalyzed a very, very large-scale study at UKBB level in terms of Amaya's proteomics. Of course, as you know, they pulled the plug on that. But I do think, Tejas, we're now in the zip code where defunding proteomics is feasible in terms of throughput, but it's also feasible in terms of cost and very comparable, if you would, to doing it in a targeted way. That's great, Kyle and Omid.

A very very large scale study advocate division level in terms of amount.

Of course, as you know they pull the plug on that but I do think tells US we're now in the in.

And the ZIP code, we're deepened back proteomics not only its feasible in terms of throughput, but it's also feasible in terms of cost and very comparable if you would to doing it in a targeted way.

That's great color. Thanks, I appreciate that thanks.

Tejas Rajeev Savant: Thanks. Thanks, David. Thank you. One moment for our next question. And our next question comes from the line of Rachel Watson-Zell from JPMorgan Chase. Your question, please? Hello, and thank you for taking the question. This is Marta Nazarovets on behalf of Rachel.

Thanks, Dave.

Thank you one moment for our next question.

And our next question comes from the line of Rachel Fox.

From Jpmorgan Chase your question please.

Hello, and thank you for taking the question. This is Martin has gone to Rachel.

Operator: I just wanted to follow up on your prior questions for guidance. So, what are your assumptions for China and macro for 24? Are you pretty much assuming no improvement? And then, if you think about the guidance, what do you think are the biggest potential swing factors? Thank you. Sorry, the last part of your question, Marta, it was the biggest swing factors, is that correct? Yeah, yeah, so you've got it. Upside down.

Just wanted to follow up on your prior question as for guidance. So what are your assumptions for China macro and 24 are you pretty much assuming no improvement.

Then as you think about the guidance what do you think are the biggest potential swing factors.

Okay.

Sorry, the last part of your question whether it was the biggest swing factors is that is that correct.

Yes, Ian items like upside down right, Okay got it.

Marta Nazarovets: Got it. Sure. So on the China macro, we still don't have a lot of visibility in terms of an improvement there, and so as we look at 24, we're essentially assuming flat, kind of as is. We're not assuming any real improvement relative to what we're already doing there. So it's something where, given the lack of visibility and given the continued challenges that we see in terms of adopting new technology, we certainly just wanted to be mindful of that as we look forward to this year. There have been some great developments. The Chinese government is obviously putting a lot of money into proteomics, into building kind of a large proteomics database.

Sure so on the China macro.

And we aren't.

We still don't have a lot of visibility in terms of an improvement there and so as we look at 'twenty four we're essentially assuming.

Flat kind of as is we're not assuming any real improvement relative to what we're already doing there.

So it's something where.

Just given the lack of visibility given the continued challenges that we see in terms of adopting a new technology.

We certainly.

Just wanted to be mindful of that as we as we look forward to this year there've been some great developments.

Chinese governments, obviously, putting a lot of money into proteomics enter into building kind of a large proteomics database. So we're certainly hopeful but it's really too early to have any visibility to that so I think that that's something that.

David R. Horn: So we're certainly hopeful, but it's really too early to have any visibility on that. So I think that's something that we are being mindful of. In terms of the swing factors for this year, I think one is certainly the impact of the publications.

That we are being mindful of in terms of the in terms of the.

Swing factors.

For this year I think one is certainly the impact of the publications.

David R. Horn: We certainly feel like there's a nice, robust pipeline of publications coming, and we hope that that will certainly help to drive things. But again, we've tried to be mindful of the timing of those. And as Omid said, the ultimate impact of those, I think it's the larger body of clinical evidence that needs to be more robust and growing to really drive that adoption.

We certainly feel like there is a nice robust pipeline of publications coming and we hope that that will certainly help to drive things.

And so but again, we've tried to be mindful of the timing of those and as Hamid said.

The ultimate impact of those I think it's the larger body of clinical evidence that needs to amount to be more robust and to grow to really drive that.

David R. Horn: But again, we're hopeful of that. And again, the other areas that we see good potential obviously stack. We've got a backlog there, which is great. But as Omid also said, we're going to have a finite capacity there. So at some point, we'll reach that and kind of stay there.

Adoption, but again, we're hopeful that and again the other areas that we see good potential obviously stack, we've got a backlog there which is great but as <unk> also said were going to have.

A finite capacity there so at some point, we will we will reach that and kind of stay there and but the good news is we do want to work with our centers of excellence and push any any recurrent service business to them and allow them to take that and that will certainly result in <unk>.

David R. Horn: And the good news is we do want to work with our centers of excellence and push any recurrent service business to them and allow them to take that. And that will certainly result in some kit sales for us. And then finally, Prognomic, again, they will be a smaller portion of revenue for this year. But the good news is that they're moving into their discovery phase for their LDT test, and they're using the Protograph platform to do some of that development work. And they'll also continue their discovery work on some of their other programs. So again, we're trying to be mindful there. But again, they've been a great partner, and they're having great success with the data they're generating. So I would highlight those as they are.

Some kit sales to us.

And then finally prognostic again, they will be a smaller portion of revenue.

For this year, but the good news is is that they're moving into the discovery phase for the <unk> test and they are using the program platform to do some of that default development work.

They will also continue their discovery work on some of their other programs. So again, we're trying to be mindful, there, but again they've been a great partner and they are having great success.

With the data they are generating.

I would highlight those as the areas.

David R. Horn: Thank you. That was helpful. Actually, a good segue to my next question. So can you discuss your overall visibility for the business as we move into 2024? You already touched on China, so I guess ex-China. And then can you also touch on pricing?

Thank you that was helpful and actually a good segue to my next question. So can you discuss your overall visibility for that business as you move into 2024, you already touched on China.

Ex China.

And then can you also touch on pricing expectations.

Marta Nazarovets: Yeah, so in terms of visibility, you know, again, I think we've got a healthy pipeline in North America. It's certainly an area where, you know, we do have pretty good visibility on that. I will say, you know, there is a strong interest. People are excited about the technology, and so we feel good about it. It's really a function of, you know, having the budget dollars to go ahead and acquire the technology or participate in the STAC program. Europe also feels pretty good, but again, I'd be a little bit more cautious on Europe, relatively speaking.

Yes.

In terms of visibility.

Again, I think we've got a healthy pipeline.

In North America is certainly an area, where we do have pretty good visibility on that I will say.

There is there is strong interest people are.

We are excited about the technology.

And so we feel good about it.

It's really a function of having the budget dollars to go ahead and acquire the technology or or to participate in the stack program.

Europe Europe also feels pretty good but again, it's I'd be a little bit more cautious on Europe.

David R. Horn: Again, we have pretty good visibility, but again, they are much more price and budget conscious there in terms of what they see or what we see. So again, I think the visibility is a little bit less, and then, you know, as I discussed, China is probably where we have the least visibility there, but again, I remain hopeful. In terms of pricing, again, I think we continue to see the solution as price competitive and something where people can certainly access the technology, whether that's, you know, buying an instrument or participating in our SIP program where you get a loaner and you make some upfront kit purchases or consuming through STAC in terms of just the price per sample for either the mass spec work or for the full workflow.

Relatively speaking again, we have pretty good visibility, but again they are much more price than budget conscious there in terms of in terms of what they what they see.

What we see so again I think the visibility is a little bit less and then as I discuss China is is probably we have the least visibility there, but again remain remain hopeful in terms of pricing again, I think we we continue to to.

To see the solution as price competitive.

And something where people can certainly access to technology, whether that's buying an instrument or participating in our Sip program, where you get a loner and you you make some upfront kit purchases, we're consuming through stack.

In terms of just the price per sample for either the mass spec work or for the full workflow.

David R. Horn: So again, we feel pretty good about it. Obviously, people always want a lower price. There's no doubt about that, but again, I think we're, as Omid mentioned, I think we're getting to the right zip code, certainly comparable to where some of the targeted technologies are, even though we offer a very different value proposition and you're answering fundamentally different biological questions. Again, I think we're certainly cost competitive such that you can do a large-scale study on a timeframe and with a price point that makes

So again, we feel we feel pretty good about it.

Obviously people always want to lower price there is no doubt about that but again I think we're as I mentioned I think we're getting to the to the right ZIP code certainly comparable to where some of the targeted technologies are even though we offer a very different value proposition and youre answering fundamentally different biological questions.

<unk>.

I think we're certainly cost competitive such that you can do a large scale study.

On a timeframe and with a price point.

David R. Horn: Great, thank you. Thank you. Hey. And this does conclude the question and answer session, as well as today's program. Thank you, ladies and gentlemen, for your participation. You may now disconnect. Good day.

That makes sense.

Great. Thank you Frank.

Thank you.

Thank you.

This does conclude the question and answer session as well as today's program. Thank you, ladies and gentlemen for your participation you may now disconnect. Good day.