Q1 2025 Standard BioTools Inc Earnings Call

Operator: Conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. And to withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to John Graziano, Vice President of Investor Relations. Please go ahead.

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After todays presentation, there will be an opportunity to ask questions.

To ask a question you May press Star then one on your telephone keypad and to withdraw your question. Please press Star then two.

Please note this event is being recorded.

Speaker Change: I would now like to turn the conference over to John Graziano, Vice President of Investor Relations. Please go ahead.

Alex Kim: and lower on-demand service and parts revenue on improved quality and uptime of our This is further evidence of the positive impact that we are having on our customers experience.

Speaker Change: Thank you operator, and good afternoon, everyone welcome to the standard bio tools first quarter of 2025 earnings conference call, leading the call today is Michael Legg home, President and Chief Executive Officer, and Alex <unk> Chief Financial Officer.

John Graziano: Thank you, operator. Good afternoon, everyone. Welcome to the Standard BioTools Q1 2025 Earnings Conference Call. Leading the call today is Michael Egholm, President and Chief Executive Officer, and Alex Kim, Chief Financial Officer. At the close of market today, Standard BioTools released its financial results for the quarter ended 31 March 2025. During this call, we will review our results and provide an update on our financial and operational performance, 2025 outlook, market trends, and strategic initiatives. During the call, we will make forward-looking statements about events and circumstances that have not yet occurred, including plans and projections for our business, our outlook for 2025, and future financial results, market trends and opportunities, the impacts of tariffs and funding pressures, and our expectations related to the combined operations with SomaLogic, including potential synergies and our business outlook for the combined company.

Alex Kim: Moving on to gross margins on slide 13. Our non-GAAP gross margins, which exclude depreciation, amortization and stock-based compensation was 53.2% in the first quarter of 2025 versus 56.2% in the first quarter of 2024. Our first quarter margins were particularly impacted by lower volume. Lower price realization on services and product mix.

Speaker Change: At the close of market today as standard <unk> released its financial results for the quarter ended March 31 2025. During this call. We will review our results and provide an update on our financial and operational performance 2000, 22025 outlook market trends and strategic initiatives.

Speaker Change: During the call we will make forward looking statements about events and circumstances that have not yet occurred including plans and projections for our business our outlook for 2025 and future financial results market trends and opportunities the impacts of tariffs and funding pressures and our expectations related to the combined.

Alex Kim: These masks strong improvement that we saw in operating efficiency. Our SPS driven activities to reduce waste and improve quality are evident across the organization. and we anticipate this to benefit gross margin expansion over the near and long term as volume returns.

Speaker Change: <unk> with Soma logic, including potential synergies and our business outlook for the combined company.

Alex Kim: Moving on to operating expenses on slide 14. Our non-GAAP operating expenses, which exclude merger-related costs, stock-based compensation and restructuring charges, were $38.6 million in the first quarter of 2025, a decrease of $10.7 million, or down 22% compared to the same period in 2024.

Speaker Change: These statements are subject to substantial risks and uncertainties that may cause actual events or results to differ materially from current expectations.

John Graziano: These statements are subject to substantial risks and uncertainties that may cause actual events or results to differ materially from current expectations. For information regarding other related risks, see the Risk Factors section of the company's annual report on Form 10-K filed with the SEC on 11 March 2025, and in the company's other filings with the SEC. The forward-looking statements on this call are based on information currently available to us. We disclaim any obligation to update these statements except as may be required by law. During the call, we will also present some financial information on a non-GAAP basis. We believe these non-GAAP financial measures are useful in evaluating our core performance and as a baseline for assessing the future earnings potential of the company. We use these non-GAAP measures in our own evaluation of continuing operating performance.

Speaker Change: For information regarding other related risks see the risk factors section of the company's annual report on Form 10-K filed with the SEC on March 11, 2025, and in the Companys other filings with the SEC.

Alex Kim: sequentially from the fourth quarter of 2024, we delivered a 10% reduction. In the first quarter, we operationalized an additional $10 million in annual run rate cost reductions, as we mentioned on our last call, as we delayed investments in a long-term R&D project. We are now totaling $90 million in annualized cost reductions since the merger with Somalogic, which is important to reiterate as we navigate through the current macroeconomic uncertainty.

Speaker Change: The forward looking statements on this call are based on information currently available to us and we disclaim any obligation to update these statements except as may be required by law. During the call. We will also present some financial information on a non-GAAP basis. We believe these non-GAAP financial measures are useful in evaluating our core fine art.

Speaker Change: Core performance and.

Speaker Change: And as a baseline for assessing the future earnings potential of the company. We use these non-GAAP measures in our own evaluation of continuing operation operating performance. We encourage you to carefully consider our results on a GAAP and non-GAAP basis.

Alex Kim: On slide 15, our net loss in the quarter was $26 million compared to a net loss of $32.2 million in the first quarter of 2024. representing an improvement of $6.2 million or 19%. While adjusted EBITDA for the first quarter of 2025 was a loss of $16.9 million versus an adjusted EBITDA loss of $23.7 million in the first quarter of 2024, an improvement of $6.8 million or 29%.

John Graziano: We encourage you to carefully consider our results on a GAAP and non-GAAP basis. The reconciliation between non-GAAP measures and their GAAP equivalents are provided in the tables accompanying today's press release and as an appendix to today's presentation slides. Please note that management will be referring to a slide presentation including updated supplemental financial information within the webcast today. Following prepared remarks, we will host a Q&A session. Today's slide presentation, along with a replay of the webcast, will be available on the Investors section of our website. I would like to now turn the call over to Michael Egholm, President and CEO of Standard BioTools.

Speaker Change: The reconciliation between non-GAAP measures and their GAAP equivalents are provided in the tables accompanying today's press release and as an appendix to today's presentation slides.

Speaker Change: Please note that management will be referring to a slide presentation, including updated supplemental financial information within the webcast today. Following prepared remarks, we will host a Q&A session today's slides.

Speaker Change: A slide presentation, along with a replay of the webcast will be available on the investors section of our website.

Alex Kim: That brings me to cash on slide 16. We ended the first quarter with approximately $261 million in cash, cash equivalents, restricted cash, and short-term investments with no material debt. Our total cash burn was $34 million in the first quarter of 2025 versus $101 million in the first quarter of 2024. Our adjusted cash burn to support ongoing operations was $31 million in the first quarter of 2025, representing a 33% reduction versus $47 million in the first quarter of 2025. We are continuing to see material reductions in our cash burn coming through as a result of our restructuring efforts, the ongoing realization of merger cost synergies, as well as operational improvement.

Michael Legg: I would like to now turn the call over to Michael <unk>, President and CEO of standard biodiesel. Thank.

Michael Legg: Thank you John.

Speaker Change: Good afternoon, everyone and welcome to <unk> first quarter 2025 earnings call. Joining me today is Alex Kim our Chief Financial Officer.

Michael Egholm: Thank you, John. Good afternoon, everyone, and welcome to Standard BioTools' Q1 2025 earnings call. Joining me today is Alex Kim, our Chief Financial Officer. Before we begin, I want to thank our customers, employees, and investors. Your support is what fuels our work and drives our mission to set a new standard in life sciences, empower researchers, accelerate in discovery, all while delivering long-term value to our shareholders. Standard BioTools delivered a solid Q1 with results on plan and in line, despite a choppy operating backdrop. Execution continues to improve as we build rigor across the organization, guided by lean principles through our Standard BioTools business system, or just SBS. As operators, we're staying grounded in fundamentals, focusing on what we can control, managing with precision, and driving toward profitability. Before diving into the details, it's worth stepping back for a moment.

Speaker Change: Before we begin I want to thank our customers employees and investors.

Speaker Change: <unk> support is what fuels, our work and drive some mission to set a new standard in life Sciences and power researches.

Speaker Change: Accelerating discovery, all while delivering long term value to our shareholders.

Speaker Change: Standby tools delivered a solid first quarter with results unplanned and in line. Despite a choppy operating backdrop.

Speaker Change: Executing execution continues to improve as the rig.

Speaker Change: Across the organization.

Speaker Change: By lean principles to lowest and upon the tools business system adjust SBS as.

Alex Kim: We believe we are well positioned with our strategic plan and our balance sheet to support the growth of our business towards our profitability target.

Speaker Change: As operators, we're staying grounded in fundamentals.

Speaker Change: Focusing on what we can control managing with precision and driving towards profitability.

Alex Kim: As Michael said, we are not changing our full year revenue guidance of $165 to $175 million. We continue to expect the year to be back half weighted based on our internal funnel metrics and not on any assumed recovery in the macro dynamic. We continue to expect a mid teens percentage decline in our America's academia revenue, a high single digit millions revenue impact versus 2024. And with respect to our tariffs, a gross annualized impact is estimated to be in the low single digit millions of dollars to bound our exposure. We plan to pass these tariffs to our customers where possible.

Speaker Change: Before diving into the details.

Speaker Change: Stepping back from a moment, while the broader environment remains dynamic we are navigating it from a position of strength with a diversified portfolio and disciplined operating model.

Michael Egholm: While the broader environment remains dynamic, we are navigating it from a position of strength with a diversified portfolio, a disciplined operating model, healthy balance sheet, and a team that's getting sharper quarter after quarter as forecast accuracy improves and consistency in how we run the business grows. We are particularly pleased with our strategic foothold in proteomics and a series of recent high-impact product launches. Last week at the American Association for Cancer Research annual meeting, or AACR, we announced a new SomaScan offering that will pair well with the highly anticipated distributed NGS-based Illumina partner solution. Together, these advancements expand our reach and push the boundaries of what's possible in translational and clinical research. From the outside, the macro backdrop may still cloud the picture, but inside we're strong.

Speaker Change: Healthy balance sheet and the teams and the team that's getting sharper quarter after quarter as forecast accuracy improves and consistency in how we run the business grows.

Speaker Change: We are particularly pleased with our strategic foothold in putting all mix and a series of recent high impact product launches last week at the American Association of cancer Research annual meeting or ACR, we announced a new soma skin offering.

Alex Kim: Be mindful of market conditions and driving volume growth.

Speaker Change: Well with the highly anticipated distributed MTS based illumina partner solution.

Alex Kim: Clearly, the geopolitical backdrop is currently highly volatile and stiff macro headwinds persist. However, as we stand here today, looking at the year ahead, we are well positioned, controlling what we can, with multiple cost levels to pull on and deploy if needed, and a robust balance sheet. We remain committed to delivering long term profitable revenue growth and increasing shareholder value.

Speaker Change: Together these advancements expand our reach and push the boundary boundaries of what's possible in translational and clinical research from the outside the macro but may still clouds, the picture, but inside were strong our diversified business in life Sciences allows us to operate multiple.

Michael Egholm: Our diversified business in life sciences allows us to operate multiple levers to navigate the waters, including a patient and disciplined M&A strategy, which is benefiting from a growing number of compelling assets and opportunities. With that, let's turn to the numbers. In Q1, while not growth, we executed to plan and delivered $40.8 million in revenue. This was down 10% year-over-year as the market got worse against last year's Q1, and we had elevated backlog to start 2025. Despite this, and not enough to wave the all clear flag, we have seen encouraging traction in capital expenditures, which strengthen our instrument business, which is also helped by a favorable year-over-year comp. Consumables and service revenue, which represents larger portions of the mix, particularly in the Americas, was softer than usual and still exhibits variability quarter-to-quarter.

Speaker Change: Levers to navigate the waters, including a patient and disciplined M&A strategy, which is benefiting from a growing number of compelling assets and opportunities.

Michael Egholm: Back to you, Michael. Thanks, Alex. We thank you all for your continuous support as we navigate these dynamic end markets. We look forward to seeing many of you at upcoming conferences.

Speaker Change: With that let's turn to the numbers in Q1 and Q1, while not growth, we executed to plan and delivered $48 million in revenue.

Michael Egholm: And stay tuned for details on our upcoming Podiomics Roundtable series, where we'll dive deeper into the science, strategy, and exciting opportunities ahead.

This was down 10% year over year.

Operator: And now, I hand the call back to the operator for Q&A.

Speaker Change: As the market got worse against last year last year's Q1, and we had elevated backlog to start 2024. Despite this.

Operator: And we will now begin the question and answer session. To ask a question, you may press star and then one on your touch 10 phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Speaker Change: And not enough to waive the all clear flag, we have seen encouraging traction in capital expenditures, which strengthen our instrument business, which also helped.

Speaker Change: By a favorable year over year comp consumables and service revenue, which represents larger portions of the mix.

Daniel Brennan: And our first question today will come from Dan Brennan of P.D. Cowan. Please go ahead. Hey, good afternoon, guys. This is Kyle.

Speaker Change: Particularly in the Americas was softer than usual.

Speaker Change: And still exhibits variability quarter to quarter that said when you assume out at multi quarter trend you see a pattern of improving precision shopping commercial execution and more consistency.

Michael Egholm: That said, when you zoom out at multi-quarter trend, you see a pattern of improving precision, sharpened commercial execution, and more consistency, which gives us confidence in the direction we are heading. While headwinds remain, and in some cases with NIH budgets and tariffs concerns intensified, our diversification continues to serve us well. International markets and biopharm engagement remain more resilient, and we're seeing continued traction across those segments. The impact is reflected in our previously announced guidance, which assume a mid-teens percentage decline in Americas' academic revenue of roughly high single-digit million dollars at the midpoint. On the impact of new tariff measures, while they have added a layer of complexity and disruption to global trade, are from our perspective, manageable. While not material to near-term financials, including the top line, we are actively assessing the operational impact and working across teams to mitigate risk and maintain flexibility.

Kyle Boucher: I wanted to start on the reiterated guide, you said nothing's really changed in your Unknown Attendee, Kyle Boucher, Michael Egholm, Hanjoon Kim, Std Biotools the year next quarter. You know, that being said, I guess, how should we think about the percentage split between, you know, first half second?

Speaker Change: <unk> gives us confidence in the direction we are heading.

Speaker Change: While headwinds remain and in some cases with NIH budgets and test concerns intensified our diversification continues to serve us well international markets and Biopharm engagement remained more resilient and we're seeing continued traction across those segments.

Alex Kim: I'll let Alex answer that one. And good to hear Kyle. Yeah, thanks, Kyle. We're not being overly specific on that. But as we look at our internal funnel, we do see some larger projects that'll hit in the back half of the year. So it's less the seasonality that you might have seen in the past, but more driven by our funnel metrics. Got it.

Speaker Change: The impact.

Speaker Change: As reflected in our previously announced guidance, which assume a mid teens percentage decline in Americas.

Speaker Change: <unk> revenue of roughly high single digit million dollars at the midpoint.

Speaker Change: On the impact of new tariff measures, while they have added a layer of complexity and disruption to global trade.

Speaker Change: Our perspective manageable, while not material to near term financials, including the top line. We are actively accessing the operational impact and working across teams to mitigate risk and maintain flexibility.

Michael Egholm: And maybe on the instrument demand this year, you know, first quarter instrument number looks pretty good, you know, relative to our model, it Anything you can share I guess on the funnel. Did you see any pull forward in the first quarter? Maybe I guess how are you? How are you seeing your overall sales funnel? who really We're encouraged by the growth in our funnel, primarily in the Hyperion XTI, but also some traction on our other instruments. And it's really all the good work we did last year in a difficult capex environment. So we saw Some opening up at the markets at the end of the year.

Speaker Change: In some cases, we are passing cost through to customers and others.

Michael Egholm: In some cases, we are passing costs through to customers. In others, we are absorbing it, but selectively. If fully absorbed, we estimate the impact on gross margin and adjusted EBITDA would be in the $ low single-digit millions, within the bounds of our current outlook and consistent with what we communicated during our last quarterly update. Specifically, products manufactured in Canada and shipped to the US fall under the USMCA and are currently excluded from tariffs. Products made in Singapore and shipped to the US, primarily our Biomark instruments and IFC consumables, are now subject to a 10% tariff. SomaScan kits made in the US and shipped to authorized sites in China, an area of growth, though a smaller portion of the revenue today, are subject to significant tariffs. For the full year, there is no change to our prior guidance.

Speaker Change: Absorbing it but selectively if fully absorbed.

Speaker Change: Estimate the impact on gross margin and adjusted EBITDA would be in the low single digit millions within the bounds of our current outlook and consistent with what we communicated during our last quarterly update.

Speaker Change: Specifically.

Speaker Change: Products manufactured in Canada, and shipped to the USA falls under the U S. MCA and are currently excluded from tariffs.

Michael Egholm: And so we carried that momentum into. to Q1. We haven't On the instrument side, it's always a little bit hard to say whether it's a pull forward or not, but I can't think of any that was pulled forward here due to tariffs or other things. It may impact consumables a little bit, but again, not materially. And again, just in this choppy environment, we continue just to focus on what we controlled last year when CapEx was tough. We kept focusing on just building the funnel, and we're now seeing some good traction, but not declaring victory yet.

Speaker Change: Our products made in Singapore and shipped to the U S. Primarily our biomarker instruments and IFC consumables are now subject to a 10% tariff.

Speaker Change: So almost getting kits made in the U S and shipped to authorized sites in China, an area of growth do smaller portion of the revenue today is <unk>.

Speaker Change: Two significant taz.

Speaker Change: For the full year, there is no change to our prior guidance. We continue we continue to expect full year 2020 revenue in the range of $165 million to $175 million.

Michael Egholm: We continue to expect full year 2025 revenue in the range of $165 million to 175 million. We're taking a measured approach, modeling persistent headwinds, though anticipating H2 seasonality. With $261 million in cash and equivalents on the balance sheet and no material debt, we remain well capitalized and disciplined in our resource allocation. Our healthy cash position is a key asset and differentiator in this environment, and we intend to protect it accordingly. Our eyes remain fixed on reaching adjusted EBITDA positive in 2026, all while closely monitoring the backdrop in which we operate today. Being well capitalized is only part of the story, and we're taking decisive steps to streamline operations, reduce costs, and reinforce our operating leverage. Non-GAAP OpEx improved 22% year over year, operating loss improved 45%, and adjusted EBITDA improved 29%. Those results are the output of hard choices made early and implemented swiftly.

We're taking a measured approach muddling persistent headwinds.

Speaker Change: So anticipating backhouse seasonality.

Michael Egholm: Don, I mean, maybe I can just sneak in one more here on the M&A side. You know, earlier this year, you targeted the four six deals between this year and 2026. Clearly, there's been many changes in the market since you initially laid out that goal. And, you know, on the call, it sounds like you guys have a pretty good funnel. Has anything changed in regards to your pipeline and the potential timing of any deals? Chitting M&A is part of our founding thesis, it remains... core part of the strategy in here. Alex and I are now four years into this adventure here, remain ever more convinced that there's a need for consolidator in this space.

Speaker Change: With $261 million in cash and equivalents.

Speaker Change: On the balance sheet no material debt, we remain well capitalized and discipline in our resource allocation, our healthy cash position is a key asset and differentiator in this environment and we intend to protect it accordingly, our eyes remain fixed on reaching adjusted EBITDA positive in 2026.

Speaker Change: Like closely monitoring the backdrop in which we operate today.

Speaker Change: Being well capitalized is one.

Speaker Change: Part of the story and we've taken decisive steps to streamline operations reduce costs and reinforce our operating leverage.

Michael Egholm: And I think we have positioned ourselves and we've proven ourselves here. The market needs integration. Weeeeeeeee We've built the funnel here over the last few years, and what we're seeing now, of course, with the macro and the funding environment and VC investment, it definitely offers up an increased number of opportunities that are actionable now at improved valuation in our point of view. Having said that, I want to remind everybody that we are highly disciplined.

Speaker Change: non-GAAP opex improved 2% year over year.

Speaker Change: Operating loss improved 45% and adjusted EBITDA improved 29% dose results at the output of hard choices made early.

Speaker Change: <unk> implemented swiftly in January as previously announced we executed an additional $10 million in cost reduction on top of the 80 million operationalized in 2024, primarily focused on long horizon R&D projects moves that enable us today to stay nimble without compromising near term.

Michael Egholm: In January, as previously announced, we executed an additional $10 million in cost reduction on top of the $80 million operationalized in 2024, primarily focused on long horizon R&D projects, moves that enable us today to stay nimble without compromising near-term priorities. We're leaner, more agile, and structurally advantaged as we move through 2025. What's making this level of discipline possible and sustainable is SBS. It's how we run the business. It brings a mindset of continuous improvement to everything we do and accountability to every part of the organization. Nowhere is that more evident than in our integration of SomaLogic. A year ago, it was an obscure diamond, complex, underleveraged, and overlooked, but we saw what others could not. In just over 12 months, we applied SBS, took out over $80 million in costs, and got the fundamentals right.

Speaker Change: Priorities, we're leaner more agile and structurally advantaged as we move through 2025.

Michael Egholm: We recognize that our healthy cash position is a key asset, differentiated in this environment, and so we intend to go after that set number of acquisitions here over the next 18 months, but the bar is high. Got it.

Speaker Change: What's making this level of disciplined possible and sustainable its Sps, it's how we run the business at Brinks, a mindset of continuous improvement to everything we do.

Speaker Change: And accountability to every part of the organization.

Speaker Change: Nowhere is that more evident than in our integration of similar logic a year ago. It was an obscure diamond complex under leveraged and overlooked.

Matthew Stanton: Our next question today will come from Matt Stanton of Jeffreys. Please go ahead. Thanks, maybe one just on US academic and government, you know, you you kind of baked a 15% or mid team decline in on the fourth you call, you know, I think when we caught up, then you had said, you know, you hadn't seen any kind of a noticeable change in demand patterns at that time, now that we've had a bit more time pass, and obviously, the news flow, there's remained dynamic, but just any more color kind of on how us academic progress through through one queue in any color on how it's trying to adhere into to to queue.

Speaker Change: But we saw what others cannot.

Speaker Change: In just over 12 months, we applied Sps chugai.

Speaker Change: <unk> or $80 million in costs and got the fundamentals wide.

Speaker Change: We leveraged several high.

Speaker Change: Impact head to head studies to reposition that technology and drive interest.

Michael Egholm: We leveraged several high-impact head-to-head studies to reposition the technology and drive interest, ramped activity with leading biobanks, improved manufacturing, launched new products, and importantly, re-engaged our key partner, Illumina. This is a platform now positioned to win in large-scale population studies and drive translational clinical research. That turnaround didn't happen by chance. It happened because we applied the SBS flywheel and moved with precision. The momentum is building around this uniquely powerful platform, high plex, high precision, and now backed by a more focused organization and data. The science speaks for itself. SomaScan is unlocking entirely new possibilities in disease research and drug development like never before. With unmet scale and precision that legacy antibody-based technologies simply cannot match, we're seeing growing traction across pharma, biobanks, and large-scale population studies.

Speaker Change: Ramped activity with leading by banks and <unk>.

Speaker Change: Prude manufacturing launch new products and importantly, we engaged that will keep partner Illumina.

Speaker Change: This is a platform now positioned to win in large scale population studies and drive translational and clinical research.

Michael Egholm: And then, you know, within that mid team's decline for the year you'd baked in prior any more color, just a finer point in terms of what that bakes in, you know, consumables and service first the the instrument piece there. Yeah, hey, Matt. Good. Good to hear you. We We were like surgical and how we called it out at our last earnings call. And that's the sort of high level guidance that we made. And just want to remind everybody that we were coming into the year expecting healthy growth in the Americas. So The 15% is still what are mid-teens, is still what we're seeing.

Speaker Change: That turnaround didn't happen by chance it happens because we applied the Sps flywheel and moved with precision.

Speaker Change: The momentum is building around this uniquely powerful platform high Plex high precision and now backed by a more focused organization and data.

Speaker Change: The science speaks for itself Soma scanners, unlocking entirely new possibilities and disease research and drug development like never before with unmatched scale and precision that legacy antibody based technologies simply cannot match, we're seeing growing traction across pharma biobanks and landscape.

Speaker Change: Population studies and importantly, the data's keep reinforcing the value and differentiation of the platform.

Michael Egholm: We've seen Because we have been advised by by some institutions that have committed to buying instruments this year that they don't know if they'll be able to do it. We have seen some delay in consumables orders, whether those are permanent, we don't know. And we've seen at the recent AACR conference, a number of customers from academia could not travel because they were basically curbing all non-essential expenditures. So the sort of broad impact. of of less fun than US academia definitely holds. I think we sort of picked it about right from where we're sitting now. And therefore we're maintaining the guide.

Michael Egholm: Importantly, the data keep reinforcing the value and differentiation of the platform. Our deep partnership with Illumina is a critical part of this strategy, extending SomaScan's reach to thousands of sequencing labs worldwide, and will bring high throughput proteomics to more researchers than ever before. This momentum was on full display at AACR, where roughly 90 posters and presentations featured our solutions, underscoring the breadth and utility of the entire proteomics portfolio and its growing role in translational and clinical research. A couple of examples stood out. In a prostate cancer analysis conducted by the multi-center EPIC study, SomaScan 7K identified over 50 protein markers, including PSA and many previously unknown markers.

Speaker Change: Our deep partnership with Illumina is a critical part of this strategy extending <unk> reach to thousands of sequences plants worldwide and will bring high throughput proteomics to more resources than ever before.

Speaker Change: This momentum was on full display at ACR.

Speaker Change: Roughly 90 posters and presentations featured our <unk>.

Speaker Change: Solutions, underscoring the breadth and utility of entire pretty on which portfolio and its growing role in translational and clinical research at.

Speaker Change: A couple of examples stood out.

Speaker Change: In our prostate cancer analysis conducted by the multi center epic study, so almost CAD seven K identified or 50 protein markers.

Speaker Change: Including Psa and.

Michael Egholm: Sorry, I forgot the little piece on instruments, so we've seen... Some of the instruments we shipped here were in U.S. academia, typically with private funding. We obviously hope NIH budget will be released and funding will come through for the various grants for all the good stuff we have in the pipeline. I'll find them, I should say.

Speaker Change: And many previously unknown market, while in a comparable analysis the nearest competitor.

Michael Egholm: While in a comparable analysis, the nearest competitor found just one known biomarker, demonstrating SomaScan's best-in-class coverage and ability to uncover both known and novel biomarkers that have the potential to assess prostate cancer risk up to decades in advance of cancer diagnosis. More is really more in proteomics. In another study by Daiichi Sankyo and AstraZeneca that stemmed from multiple phase II and phase III clinical trials, SomaScan showed the potential to predict and monitor serious lung complications from cancer treatment. In this case, most commonly antibody-drug conjugates or ADCs, detecting early warning signs up to 60 days before symptoms appeared, and helping assess patient risk before treatment begins. At AACR, we also introduced three new offerings spanning consumables, instruments, and services. Single SOMAmer reagents, the CyTOF XT PRO, a higher throughput flow system with Part 11 compliance software for clinical trial researchers, and the SomaScan Select 3.7K assay.

Speaker Change: Just one known biomarker.

Speaker Change: Demonstrating soma <unk> best in class coverage and ability to uncover both known and novel Biomarkers that have the potential to assess prostate cancer risk up two decades in advance of cancer diagnosis.

Michael Egholm: Unknown Speaker And then moves on the new product side, a handful of new launches last week, just to focus on the single SOMAmer reagents, you know, any kind of early feedback or demand now that you get those out the door? And like you should remind us on the commercial model there, you know, how much of the existing SOMA menu will be available for the single SOMAmers and then, you know, any workflows or customers you expect this to resonate. Yeah, so we were in a, what we call like an early access and minimal viable products up until now.

Speaker Change: More is really more in proteomics.

Speaker Change: In another study biodata, Shankle and Astrazeneca that stemmed from multiple phase II and phase III clinical trials <unk> showed the.

Speaker Change: Potential to predict and monitor serious lung complication from cancer treatment. In this case, most commonly antibody drug conjugates or adcs detecting early warning signs up to 60 days before symptoms appear and helping assess patient risk before treatment begins.

Michael Egholm: Now we've made it fully, fully available. We are initially addressing a couple of applications. One is as more and more users, resources will use Somascan, they will find a number of I identify a number of proteins, a very large number, as I just referenced in my script. And one of the first things you will want to do is to do a pulldown with those and then analyze by mass spec. confirming post-translation modification setups. We see that as one avenue. And then we believe there is a broader reagent market where antibodies are really limited, where we have 11,000 fully synthetic monoclonal reagents binding to human proteins.

Speaker Change: At ACR, we also introduced three new offerings spanning consumables instruments and services single sumo reagents the site of the XT Pro.

Speaker Change: Higher throughput flow system with part 11 compliant software for clinical trial, researchers and the Soma scan tree seven K.

Speaker Change: Select asset collectively they complement our category, leading 11 KSA.

Michael Egholm: Collectively, they complement our category-leading 11K Assay, and the Select 3.7K Assay offers more usable content at higher precision than the nearest affinity proteomics competitor's highest throughput offering at improved economics, purpose-built for translational clinical research and aligned with our mission to help pharma make better drugs faster. Turning to our products, our revenue mix for the quarter remained balanced across the portfolio, with consumables at 35%, instruments 19%, and lab and field services at 30% and 13%, respectively. We saw growth globally from our instrument business, while consumables and lab were soft, in part due to project timing and funding uncertainty in the Americas. Consumables, positioned at the top of our product pyramid, were down mid-teens year-over-year and down low single digits sequentially, with the largest impact in flow. To help close that gap, we recently launched the CyTOF XT PRO, a faster automated system purpose-built to drive pull-through.

Speaker Change: And select three seven KSA.

Speaker Change: More usable content at higher precision than the nearest affinity put it almost competitors highest throughput offering.

Speaker Change: <unk> improved economics.

Speaker Change: Purpose built for translational and clinical research and align with our mission to help pharma and make better trucks fast.

Michael Egholm: We believe that's a valuable tool set. And we believe it's a very nice complement to the antibody market. As for how we're going about it, it's a new capability. We have not sold individual reagents before. So I would not have high expectations in the short term. But in the long term, as we're figuring out how to sell this, we see this as a fairly significant opportunity. Thank you.

Speaker Change: Turning to our products our revenue mix for the quarter remained balanced across the portfolio with.

Speaker Change: With consumables at 35% instrument, 19% and lab and field services at 30, and 13% respectively.

Speaker Change: So growth globally from our instrument business, while consumables and that was soft.

Speaker Change: In part due to project timing and funding uncertainty in the Americas.

Speaker Change: Consumables.

Speaker Change: <unk> at the top of our product pyramid, but down mid teens year over year and down low single digits sequentially with the largest impact on flow to help close that gap.

Operator: Again, if you would like to ask a question, please press star and then one.

Speaker Change: Recently launched the <unk>.

Paul Knight: Our next question will come from Paul Knight of KeyBank. Please go ahead.

Speaker Change: Types of XD probe at foster automated system purpose built to drive pull through.

Michael Egholm: Michael, are you expecting the Illumina partnership to generate significant revenue in 2025? Hey, Paul. We're very excited about the upcoming launch here, as we talked about at JPM at our last earnest call with the with the mounting evidence that we are uniquely positioned, the clinical research and insights most recently at ACR, that you can see and now Illumina making this available to thousands of labs with sequences. We cautious for 25, but long term see this as a very strong value driver. Illumina is responsible for the sales marketing and support and we have all the faith in the world that they will do a brilliant job.

Speaker Change: Early signals from the field have been encouraging.

Michael Egholm: Early signals from the field have been encouraging. SomaScan authorized sites, which have become a steady contributor to the consumables line, were down modestly year-over-year due to order timing in the US, though experiencing increased activity internationally, particularly in APAC. Looking ahead, we expect additional lists as our distributed solution with Illumina comes online. Consumables remain a strategic priority, high margin, recurring, and essential to our model long term. Instruments were a bright spot, with double-digit year-over-year growth led by continued demand for our Hyperion XTi spatial imaging systems. These are high throughput, high performance systems, and importantly, each placement builds installed base leverage for future consumable pull-through. Spatial proteomics, where the Hyperion XTi plays, was named 2024 Nature Method of the Year, a strong endorsement from the scientific community, and we're beginning to see that recognition translate into market adoption.

Speaker Change: <unk> authorized sites, which have become a steady contributor to the consumables line were down modestly year on year due to order timing in the U S. Doe experiencing increased activity internationally, particularly in APAC looking ahead, we expect additional lift as our distributors.

Purpose built for translational and clinical research and aligned with our mission to help pharma and make better trucks fast.

Speaker Change: Lucian with Illumina comes online.

Speaker Change: <unk> maintenance strategic priority high margin recurring and essential to our model long term.

Turning to our products our revenue mix for the quarter remained balanced across the portfolio with.

With consumables at 35% instrument, 19% and lab and field services at 30, and 13% respectively.

Instruments were a bright spot with double digit year over year growth led by continued demand for our Hyperion SDI spatial imaging systems visa.

Speaker Change: These are high throughput high performance system, and importantly, each placement bills installed base leverage for future consumable pull through spatial proteomics, where the Hyperion <unk> plays was named 2024 nature method of the year, a strong endorsement from the scientific community and we're beginning to see that.

So growth globally from our instrument business, while consumables and lap itself.

In part due to project timing and funding uncertainty in the Americas.

Consumables precision at the top of our product pyramid, but down mid teens year over year and down low single digits sequentially with the largest impact in flow to help close that gap.

Michael Egholm: And this is new for them, and this always takes longer than one want. But the outlook is really bright for the technology.

Speaker Change: Recognition translate into market adoption.

Speaker Change: Services were down mid teens year over year, driven primarily by a decline in lab services.

Alex Kim: And maybe, Alex, you can just comment on what's baked into our 25 assumptions there. Yeah, maybe just to remind you, in 24, we had some good revenue from Illumina that came through for development, to support their development, as well as their early access customers. So year over year, it'll be moderate growth on top of that, but not for many of the reasons Michael mentioned, not a significant growth overall. And that is baked into our current guidance.

We recently launched the X C sites of XD probe.

Michael Egholm: Services were down mid-teens year-over-year, driven primarily by a decline in lab services. Beyond the elevated backlog referenced earlier, SomaScan remains concentrated in a handful of large accounts. While less so today, timing and variability is still expected and impacts quarterly performance. US academia also weighed on volume this quarter, though partially offset by increased pharma project activity and modest growth ex-US. Big picture, we're focused on making high-precision proteomics more accessible. As we expand distributed offerings through authorized sites and the Illumina partnership, we expect broader adoption and more consistent utilization of our service offering. This is a long-term growth market with solid fundamentals, and we believe we are well-positioned to scale with it. At Standard BioTools, we are building a durable, diversified life science tools platform grounded in operations and strategic consolidation.

Mr. Automated system purpose built to drive pull through.

Speaker Change: Beyond the elevated backlog referenced earlier Soma scant remains concentrated in a handful of large accounts, while less so today timing and variability still expected and impacts quarterly performance.

Sickness from the field have been encouraging.

Soma scan authorized sites, which have become a steady contributor to the consumables line were down modestly year over year due to order timing in the U U S. DAU experiencing increased activity internationally, particularly in APAC looking ahead, we expect additional lift as our distributors.

Speaker Change: U S academia.

Speaker Change: Also weighed on volume this quarter, though partially offset by increased pharma project activity and modest growth ex U S. Victor picture, we are focused on making high precision proteomics more assessable.

Alex Kim: And as Michael mentioned, 26 and beyond, we expect to begin to see strong traction and strong growth there.

Illusions with Illumina comes online.

Speaker Change: As we expand distributed offerings true authorized side and the Illumina partnership, we expect broader adoption and more consistent utilization of our service offering this.

Consumables were maintenance strategic priority high margin recurring and is central to our model long term.

Michael Egholm: Okay, and then, you know, of course, we can, you know, I know academics challenging, but can you talk about what you're seeing within the biopharmaceutical customer set? It does seem like we started the year with a more visible spending trend there. Are you seeing a better market condition for the major biopharma part? Good traction in pharma here in Q1 and have not seen a change from that as I'm sitting here today.

Instruments were a bright spot with double digit year over year growth led by continued demand for our Hyperion SDI spatial imaging systems visa.

Speaker Change: This is a long term growth market with solid fundamentals and believe we are well positioned to scale with it.

These are high school good high performance system, and importantly, each placement bills installed base leverage for future consumable to spatial proteomics, where the Hyperion XT I place was named 2024 nature method of the year, a strong endorsement from the scientific community and we're beginning to see that.

Speaker Change: At <unk>, we are building a durable diversified life science tools platform grounded in operations and strategic consolidation.

Speaker Change: Our mission is to overcome the scale and profitability bottlenecks that have long long held this sector back to be the partner of choice for <unk>.

Michael Egholm: Our mission is to overcome the scale and profitability bottlenecks that have long held this sector back, to be the partner of choice for customers and innovators alike. We're doing it with intention. A portfolio increasingly weighted toward high-margin consumables, disciplined capital deployment, and a flywheel that compounds value over time. With valuations under pressure and innovation accelerating, we are seeing real opportunities to continue to expand strategically. We are pursuing a highly disciplined approach focused on de-risked technologies with line of sight to commercialization and value creation, a strong margin profile, and clear integration synergies. Every deal runs through the SBS playbook where we strip out inefficiencies, optimize operations, and scale with speed. The bar remains high, but the pipeline is full and the opportunity set is compelling.

Speaker Change: Customers and innovate as alike, and we're doing it with intention.

Recognition translate into market adoption.

Services were down mid teens year over year, driven primarily by a decline in lab services.

Michael Egholm: It's our numbers get a little bit obscured by Unknown Attendee, Kyle Boucher, Michael Egholm, Hanjoon Kim, Std Biotools, Unknown Attendee, a healthy growth and funnel beyond those accounts and in our authorized site.

Speaker Change: Portfolio increasingly weighted toward high margin consumables does.

Beyond the elevated backlog referenced earlier Soma scant remains concentrated in a handful of large accounts by less so today timing and variability still expected and impacts quarterly performance.

Speaker Change: <unk> capital deployment, and a flywheel that compound value over time.

Speaker Change: With valuations under pressure and innovation accelerating we're seeing real opportunities to continue to expand strategically we are pursuing highly disciplined approach focus on de risk technologies with line of sight to commercialization and value creation creation a strong margin.

U S academia.

Also weighed on volume this quarter, though partially offset by increased pharma project activity and modest growth ex U S. Big picture, we are focused on making high precision proteomics more assessable.

Alex Kim: Okay, and then last is the $10 million cost action in early January. Should we think about an improved outlook for EBITDA loss this year? I'll let Alex handle that. Yes, slightly. So the action was late January, 10 million annualized. And so yes, you will see that flow through. Our approach, as Michael has said many times, is continuous improvement. And so you'll see us continue to improve our adjusted EBITDA. Thank you.

Speaker Change: Profile and clear integration synergies.

As we expand distributed offerings true authorized side and the Illumina partnership, we expect broader adoption and more consistent utilization of our service offering.

Speaker Change: Every deal once truly Sps playbook, where we strip out inefficiencies optimize operations and scale with speed the power remains high but the pipeline is full and to your opportunity set is compelling.

This is a long term growth market, but solid fundamentals and believe we are well positioned to scalability.

Speaker Change: We're playing the long game and we're doing it with a team of proven operators, a clear strategy and the resources to execute.

Michael Egholm: We're playing the long game, and we're doing it with a team of proven operators, a clear strategy, and the resources to execute. With that, I'll turn the call over to Alex. Alex?

At stand about tools, we are building a durable diversified life science tools platform grounded in operations and strategic consolidation.

Alex Kim: With that I'll turn the call over to Alex Alex.

Alex Kim: Thank you Michael and thank you all for joining our call today.

Our mission is to overcome the scale and profitability bottlenecks that have long long held this sector back to beat a partner of choice for customers and innovate as alike, and we're doing it with intention.

Alex Kim: Thank you, Michael, and thank you all for joining our call today. I will walk us through our financial results in more detail and provide some additional context for the quarter. Please refer to today's press release and the appendix to our earnings deck for more information, including a reconciliation of GAAP to non-GAAP measures that I will be discussing here. Also note, we are no longer breaking out our financial results into proteomics and genomics. This reflects our evolving nature of our business, where what we have previously labeled genomics, principally our microfluidic-based Integrated Fluidic Circuits or IFC chips, is increasingly being applied across proteomics, sample preparation, and liquid handling applications. We now view our overall business as offering a portfolio of multi-omic tools designed to provide customers with the best solution based on the problem they are trying to solve.

Alex Kim: He will walk us through our financial results in more detail and provide some additional context for the quarter.

Alex Kim: Please refer to today's press release, and the appendix to our earnings deck for more information, including a reconciliation of GAAP to non-GAAP measures that I will be discussing here.

Operator: Ladies and gentlemen, at this time, we will conclude our question and answer session and also conclude the Std Biotools conference call. Thank you for attending today's presentation and you may now disconnect your line.

Portfolio increasingly weighted toward high margin consumables.

The planned capital deployment, and a flywheel that compound value over time.

Alex Kim: Also note we are no longer breaking out our financial results and to proteomics and genomics. This reflects our evolving nature of our business, where we had previously labeled genomics principally our microfluidics based integrated fluidics circuits or IFC chips is increasingly being applied.

With valuations on the pressure and innovation accelerating we're seeing real opportunities to continue to expand strategically we are pursuing highly disciplined approach focus and de risk technologies with line of sight to commercialization and value creation creation a strong margin.

Alex Kim: <unk> cross proteomics sample preparation and liquid handling applications.

Profile and clear integration synergies.

Alex Kim: We now view, our overall business is offering a portfolio of multi ohmic tools.

Every deal once to the Sps playbook, where we strip out inefficiencies optimize operations and scaled with speed.

Alex Kim: And to provide customers with the best solution based on the problem. They are trying to solve.

<unk> remains high but the pipeline is fall into your opportunity set is compelling.

Alex Kim: We do not operate our day to day business has two segments.

Alex Kim: We do not operate our day-to-day business as two segments. With our integration activities and operational synergies being realized, we are seeing more and more leverage of our resources across our product lines, including manufacturing, research and development, and sales and marketing. As a result, we believe it's more meaningful to look at our financials as one operating segment. We will, however, continue to break out sales into consumables, instruments, lab services, and field services. Let's start with revenue on slide 12. Our Q1 revenue came in at $40.8 million. That's down 10% year-over-year and in line with our expectations. As Michael noted, we had a strong Q1 last year as we entered 2024 with an elevated backlog, the majority of which related to our SomaScan lab services business.

Alex Kim: And with our integration activities and operational synergies being realized we are seeing more and more leverage of our resources across our product lines, including manufacturing research and development and sales and marketing.

We're playing the long game and we're doing it with a team of proven operators, a clear strategy and the resources to execute.

Alex: With that I'll turn the call over to Alex Alex.

Alex: Michael and thank you all for joining our call today I will walk us through our financial results in more detail and provide some additional context for the quarter.

Alex Kim: As a result, we believe it's more meaningful to look at our financials as one operating segment.

Alex Kim: We will however continue to break out sales into consumables instruments lab services and field services.

Alex: Please refer to today's press release, and the appendix to our earnings deck for more information, including a reconciliation of GAAP to non-GAAP measures that I will be discussing here.

Alex Kim: So let's start with revenue on slide 12.

Alex Kim: First quarter revenue came in at $40 8 million, that's down 10% year over year and in line with our expectations as.

Alex: Also note we are no longer breaking out our financial results and to proteomics and genomics. This reflects our evolving nature of our business, where what we have previously labeled genomics, principally our microfluidics based integrated circuits or IFC chips is increasingly being applied.

Alex Kim: As Michael noted, we had a strong first quarter last year as we enter 2024 with an elevated backlog.

Alex Kim: The majority of which related to our Soma scan lab services business.

Alex Kim: Breaking revenue down further consumables revenue was $14 5 million in the first quarter down 16% compared to 2024.

Alex: <unk> cross proteomics sample preparation and liquid handling applications.

Alex Kim: Breaking revenue down further, consumables revenue was $14.5 million in Q1, down 16% compared to 2024. This was attributed to lower volumes impacted by lower Americas academia revenue, as well as fewer large-scale clinical research projects in the quarter. Our SomaScan authorized sites continue to purchase our assay kits. As we've discussed before, we believe distributed solutions, including our partnership with Illumina, will be a key step forward to establishing market leadership in proteomics. Expanding our ability to supply more sites globally is highly complementary to our existing lab services business and strengthens our overall market position. Instruments revenue came in at $7.8 million in Q1, up 24% year over year compared to Q1 2024. This was largely driven by continued sales traction in our spatial proteomics business, particularly the Hyperion XTi, building on the momentum seen exiting 2024.

Alex: We now view, our overall business is offering a portfolio of multi ohmic tools designed to provide customers with the best solution based on the problem. They are trying to solve.

Alex Kim: This was attributed to lower volumes impacted by lower Americas, academia revenue as well as fewer large scale clinical research projects in the quarter.

Alex: We do not operate our day to day business has two segments.

Alex Kim: Our summer scan authorized sites continue to purchase our assay kits.

Alex: And with our integration activities and operational synergies being realized we are seeing more and more leverage of our resources across our product lines, including manufacturing research and development and sales and marketing.

Alex Kim: And as we've discussed before we believe distributed solutions, including our partnership with Illumina will be a key step forward to establishing market leadership in proteomics.

Alex Kim: Expanding our ability to supply more sites globally as highly complementary to our existing lab services business and strengthens our overall market position.

Alex: As a result, we believe it's more meaningful to look at our financials as one operating segment.

Alex: We will however continue to break out sales into consumables instruments lab services and field services.

Alex Kim: Instrument revenue came in at $7 $8 million in the first quarter up 24% year over year compared to the first quarter of 2024. This.

Alex: So let's start with revenue on slide 12.

Alex: First quarter revenue came in at $48 million, that's down 10% year over year and in line with our expectations as.

Alex Kim: This was largely driven by continued sales traction and our special proteomics business, particularly the Hyperion ex Ti.

Alex: As Michael noted, we had a strong first quarter last year as we enter 2024 with an elevated backlog and.

Alex Kim: Building on the momentum seen exiting 2024.

Alex Kim: As our installed base continues to grow we expect this to drive consumables growth.

Alex Kim: As our installed base continues to grow, we expect this to drive consumables growth. Services revenue, which includes both lab services and field services, was $17.6 million in Q1, down 16% year-over-year compared to Q1 2024. Lab services was down 19%, largely due to the previously mentioned gap in backlog. We did see some impact due to project timing and America's academia funding delays. Field services was down 11%, as anticipated, on fewer active service contracts as aged legacy instruments go off contract and lower on-demand service and parts revenue on improved quality and uptime of our instruments. This is further evidence of the positive impact that we are having on our customers' experience. Moving on to gross margins on slide 13.

Alex: The majority of which related to our Soma scan lab services business.

Alex Kim: Services revenue, which includes both lab services and field services was $17 $6 million in the first quarter down 16% year over year compared to the first quarter of 2024.

Alex: Breaking revenue down further consumables revenue was $14 5 million in the first quarter down 16% compared to 2020 for.

Alex: This was attributed to lower volumes impacted by lower Americas Academia revenue.

Alex Kim: Lab services was down 19%.

Alex Kim: Largely due to the previously mentioned gap in backlog.

Alex: As well as fewer large scale clinical research projects in the quarter.

Alex Kim: We did see some impact due to project timing and Americas academia funding delays.

Alex: Our summer scan authorized sites continue to purchase our assay kits.

Alex Kim: Field services was down 11% as anticipated on fewer active service contracts is aged legacy instruments go off contract.

Alex: And as we've discussed before we believe distributed solutions, including our partnership with Illumina will be a key step forward to establishing market leadership in proteomics.

Alex Kim: And lower on demand service and parts revenue on improved quality and uptime of our instruments.

Alex: Spanning our ability to supply more sites globally as highly complementary to our existing lab services business and strengthens our overall market position.

Alex Kim: This is further evidence of the positive impact that we're having on our customers' experience.

Instruments revenue came in at seven $8 million in the first quarter up 24% year over year compared to the first quarter of 2024. This.

Alex Kim: Moving on to gross margins on slide 13.

Alex Kim: Our non-GAAP gross margins, which exclude depreciation amortization and stock based compensation was 53, 2% in the first quarter of 2025 versus <unk> 56, 2% in the first quarter of 2024.

This was largely driven by continued sales traction and our spatial proteomics business, particularly the Hyperion X T I D.

Alex Kim: Our non-GAAP gross margins, which exclude depreciation, amortization, and stock-based compensation, was 53.2% in Q1 2025 versus 56.2% in Q1 2024. Our Q1 margins were particularly impacted by lower volume, lower price realization on services, and product mix. These mask strong improvements that we saw in operating efficiencies. Our SBS-driven activities to reduce waste and improve quality are evident across the organization, and we anticipate this to benefit gross margin expansion over the near and long term as volume returns. Moving on to operating expenses on slide 14. Our non-GAAP operating expenses, which exclude merger-related costs, stock-based compensation, and restructuring charges, were $38.6 million in Q1 2025, a decrease of $10.7 million, or down 22% compared to the same period in 2024. Sequentially, from Q4 2024, we delivered a 10% reduction.

Alex: Building on the momentum seen exiting 2024.

Alex: As our installed base continues to grow we expect this to drive consumables growth.

Alex Kim: Our first quarter margins were particularly impacted by lower volume.

Services revenue, which includes both lab services and field services was $17 $6 million in the first quarter down 16% year over year compared to the first quarter of 2024.

Alex Kim: Price realization on services and product mix.

These masks strong improvement that we saw in operating efficiencies, our SBS driven activities to reduce waste and improve quality are evident across the organization.

Alex: Lab services was down 19%.

Alex: Largely due to the previously mentioned gap in backlog we.

Alex Kim: And we anticipate this to benefit gross margin expansion over the near and long term as volume returns.

Alex: We did see some impact due to project timing.

Alex: And America's Academia funding delays.

Alex Kim: Moving on to operating expenses on slide 14, our non-GAAP operating expenses, which exclude merger related costs stock based compensation and restructuring charges were $38 6 million in the first quarter of 2025, a decrease of $10 $7 million or down 22.

Alex: Field services was down 11% as anticipated on fewer active service contracts is aged legacy instruments go off contract.

Alex: And lower on demand service and parts revenue unimproved quality and uptime of our instruments.

Alex Kim: Compared to the same period in 2024.

Alex: This is further evidence of the positive impact that we are having on our customers' experience.

Alex Kim: Sequentially from the fourth quarter of 2024, we delivered a 10% reduction.

Alex: Moving on to gross margins on slide 13.

Alex Kim: In the first quarter, we operationalize and additional $10 million in annual run rate cost reductions as we mentioned on our last call as we've delayed investments and our long term R&D project.

Alex: Our non-GAAP gross margins, which exclude depreciation amortization stock based compensation was 53, 2% in the first quarter of 2025 versus 56, 2% in the first quarter of 2024.

Alex Kim: In Q1, we operationalized an additional $10 million in annual run rate cost reductions, as we mentioned on our last call, as we delayed investments in a long-term R&D project. We are now totaling $90 million in annualized cost reductions since the merger with SomaLogic, which is important to reiterate as we navigate through the current macroeconomic uncertainty. On slide 15, our net loss in the quarter was $26 million, compared to a net loss of $32.2 million in Q1 2024, representing an improvement of $6.2 million or 19%. While adjusted EBITDA for Q1 2025 was a loss of $16.9 million versus an adjusted EBITDA loss of $23.7 million in Q1 2024, an improvement of $6.8 million or 29%. That brings me to cash on slide 16.

Alex Kim: We are now totaling $90 million in annualized cost reductions since the merger with some logic, which is important to reiterate as we navigate through the current macroeconomic uncertainty.

Alex: Our first quarter margins were particularly impacted by lower volume.

Alex: Lower price realization on services and product mix.

Alex Kim: On slide 15, our net loss in the quarter was $26 million.

Alex: These masks strong improvement that we saw in operating efficiencies, our SBS driven activities to reduce waste and improve quality are evident across the organization.

Alex Kim: Compared to a net loss of $32 2 million in the first quarter of 2024.

Alex Kim: Representing an improvement of $6 $2 million or 19%.

Alex: And we anticipate this to benefit gross margin expansion over the near and long term as volume returns.

Alex Kim: While adjusted EBITDA for the first quarter of 2025 was a loss of $16 9 million versus an adjusted EBITDA loss of $23 7 million in the first quarter of 2024, an improvement of $6 8 million or 29%.

Alex: Moving on to operating expenses on slide 14, our non-GAAP operating expenses, which exclude merger related costs stock based compensation and restructuring charges were $38 $6 million in the first quarter of 2025, a decrease of $10 $7 million or down 22.

Alex Kim: That brings me to cash on slide 16, we ended the first quarter with approximately $261 million in cash cash equivalents restricted cash and short term investments with no material debt.

Alex Kim: We ended Q1 with approximately $261 million in cash equivalents, restricted cash, and short-term investments with no material debt. Our total cash burn was $34 million in Q1 2025 versus $101 million in Q1 2024. Our adjusted cash burn to support ongoing operations was $31 million in Q1 2025, representing a 33% reduction versus $47 million in Q1 2024. We are continuing to see material reductions in our cash burn coming through as a result of our restructuring efforts, the ongoing realization of merger cost synergies, as well as operational improvements. We believe we are well positioned with our strategic plan and our balance sheet to support the growth of our business towards our profitability targets. As Michael said, we are not changing our full-year revenue guidance of $165 to $175 million.

Alex: Compared to the same period in 2024.

Alex: Sequentially from the fourth quarter of 2024, we delivered a 10% reduction.

Alex Kim: Our total cash burn was $34 million in the first quarter of 2025 versus $101 million in the first quarter of 2024.

In the first quarter, we operationalize and additional $10 million in annual run rate cost reductions as we mentioned on our last call as we delayed investments and our long term R&D project.

Our adjusted cash burn to support ongoing operations was $31 million in the first quarter of 2025, representing a 33% reduction versus $47 million in the first quarter of 2024.

Alex: We are now totaling $90 million in annualized cost reductions since the merger with summer logic, which is important to reiterate as we navigate through the current macroeconomic uncertainty.

Alex Kim: We are continuing to see material reductions in our cash burn.

Alex: On slide 15, our net loss in the quarter was $26 million compared to a net loss of $32 $2 million in the first quarter of 2024.

Alex Kim: Going through as a result of our restructuring efforts the ongoing realization of merger cost synergies as well as operational improvements.

Alex: Representing an improvement of $6 $2 million or 19%.

Alex Kim: We believe we are well positioned with our strategic plan and our balance sheet to support the growth of our business towards our profitability targets.

Alex: While adjusted EBITDA for the first quarter of 2025 was a loss of $16 $9 million versus an adjusted EBITDA loss of $23 $7 million in the first quarter of 2024, an improvement of $6 $8 million or 29%.

Alex Kim: As Michael said, we are not changing our full year revenue guidance of $165 million to $175 million.

Alex Kim: We continue to expect the year to be back half weighted based on our internal funnel metrics and not on any assumed recovery in the macro dynamics.

Alex Kim: We continue to expect the year to be back-half weighted based on our internal funnel metrics and not on any assumed recovery in the macro dynamics. We continue to expect a mid-teens percentage decline in our Americas academia revenue, a high single-digit millions revenue impact versus 2024. With respect to our tariffs, our gross annualized impact is estimated to be in the low single-digit millions of dollars to bound our exposure. We plan to pass these tariffs to our customers where possible, being mindful of market conditions and driving volume growth. Clearly, the geopolitical backdrop is currently highly volatile and stiff macro headwinds persist. However, as we stand here today, looking at the year ahead, we are well positioned, controlling what we can with multiple cost levers to pull on and deploy if needed, and a robust balance sheet.

Alex: That brings me to cash on slide 16, we ended the first quarter with approximately $261 million in cash cash equivalents restricted cash and short term investments with no material debt.

Alex Kim: We continue to expect a mid teens percentage decline in our Americas academia revenue.

Alex Kim: A high single digit millions revenue impact versus 2024.

Alex: Our total cash burn was $34 million in the first quarter of 2025 versus $101 million in the first quarter of 2024.

Alex Kim: And with respect to our tariffs our gross annualized impact is estimated to be in the low single digit millions of dollars to bound our exposure.

Alex: Our adjusted cash burn to support ongoing operations was $31 million in the first quarter of 2025, representing a 33% reduction versus $47 million in the first quarter of 2024.

Alex Kim: We plan to pass these tariffs to our customers where possible.

Alex Kim: Mindful of market conditions, and driving volume growth.

Alex Kim: Clearly the geopolitical backdrop is currently highly volatile and Steph macro headwinds persist however.

Alex: We are continuing to see material reductions in our cash burn.

Alex Kim: However, as we stand here today looking at the year ahead, we are well positioned.

Alex: Coming through as a result of our restructuring efforts the ongoing realization of merger cost synergies as well as operational improvements.

Alex Kim: Controlling what we can with multiple cost levers to pull on and deploy if needed and a robust balance sheet.

Alex: We believe we are well positioned with our strategic plan and our balance sheet to support the growth of our business towards our profitability targets.

Alex Kim: We remain committed to delivering long term profitable revenue growth and increasing shareholder value.

Alex Kim: We remain committed to delivering long-term profitable revenue growth and increasing shareholder value. Back to you, Michael.

Alex: As Michael said, we are not changing our full year revenue guidance of $165 million to $175 million.

Alex Kim: Back to you Michael Thanks, Alex we thank you all for your continued support as we navigate these dynamic end markets. We look forward to seeing many of you many.

Michael Egholm: Thanks, Alex. We thank you all for your continued support as we navigate these dynamic end markets. We look forward to seeing many of you at upcoming conferences. Stay tuned for details on our upcoming Proteomics Roundtable Series, where we'll dive deeper into the science, strategy, and exciting opportunities ahead. Now I hand the call back to the operator for Q&A.

Alex: We continue to expect the year to be back half weighted based on our internal funnel metrics and not on any assumed recovery in the macro dynamics.

Alex Kim: Many of you at upcoming conferences and stay tuned for details on our upcoming proteomics Roundtable series, where we will dive deeper into the science strategy and exciting opportunities ahead, and now I'll hand, the call back to the operator for Q&A.

Alex: We continue to expect a mid teens percentage decline in our Americas academia revenue.

Alex: A high single digit millions revenue impact versus 2024.

Alex Kim: And we will now begin the question and answer session to ask a question you May Press Star and then one on your Touchtone phone.

Alex: And with respect to our tariffs our gross annualized impact is estimated to be in the low single digit millions of dollars to bound our exposure.

Operator: We will now begin the question and answer session. To ask a question, you may press star and then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2. Our first question today will come from Daniel Brennan of TD Cowen. Please go ahead.

Alex Kim: If youre using a speakerphone please pick up your handset before pressing the keys.

Alex: We plan to pass these tariffs to our customers where possible.

Alex Kim: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Alex: Mindful of market conditions, and driving volume growth.

Dan Brennan: And our first question today will come from Dan Brennan of TD Cowen. Please go ahead.

Alex: Clearly the geopolitical backdrop is currently highly volatile and Steph macro headwinds persist. However, as we stand here today looking at the year ahead, we are well positioned.

Dan Brennan: Hey, Good afternoon, guys. This is Kyle on for Dan. Thanks for taking the questions I wanted to start on the reiterated guide you said nothing has really changed in your view in terms of the weighting of revenue. This year more back half weighted understanding you guys don't guide quarterly, but I think the streets looking for revenue down a bit here.

Kyle: Hey, good afternoon, guys. This is Kyle on for Dan. Thanks for taking the questions. I wanted to start on the reiterated guide. You said nothing's really changed in your view in terms of the weighting of revenue this year, more H2 weighted. Understanding you guys don't guide quarterly, but I think the Street's looking for revenue down a bit Q-over-Q on one of the easiest comps of the year next quarter. That being said, I guess how should we think about the percentage split between H1, H2?

Alex: Controlling what we can with multiple cost levers to pull on and deploy if needed.

Alex: Our robust balance sheet.

Alex: We remain committed to delivering long term profitable revenue growth and increasing shareholder value.

Dan Brennan: Over Q1 of the easiest comps of the year next quarter.

Michael: Back to you Michael Thanks, Alex we thank you all for your continued support as we navigate these dynamic end markets. We look forward to seeing many of you many.

Dan Brennan: I guess, how should we think about the percentage split between first half second half.

Dan Brennan: I'll, let Alex answer that one.

Michael: Many of you at upcoming conferences and stay tuned for details on our upcoming proteomics Roundtable series, where we'll dive deeper into the science strategy and exciting opportunities ahead, and now I hand, the call back to the operator for Q&A.

Michael Egholm: I'll let Alex answer that one. Good to hear, Kyle. Yeah.

Dan Brennan: Good to hear.

Alex Kim: Thanks, Kyle we're not being overly specific on that but as we look at our internal funnel, we do see some larger projects that will hit in the back half of the year.

Alex Kim: Yeah. Thanks, Kyle. We're not being overly specific on that, but as we look at our internal funnel, we do see some larger projects that'll hit in H2. It's less the seasonality that you might have seen in the past, but more driven by our funnel metrics.

So it's less the seasonality that you might've seen in the past, but more driven by our funnel metrics.

Speaker Change: And we will now begin the question and answer session to ask a question you May Press Star and then one on your touch 10, Fad if youre using a speakerphone. Please pick up your handset before pressing the keys.

Alex Kim: Got it and maybe on the instrument demand this year first quarter instrument number looks pretty good relative to our model at least anything you can share I guess.

Kyle: Got it. Maybe on the instrument demand this year, Q1 instrument number looks pretty good, relative to our model at least. Anything you can share, I guess, on the funnel? Did you see any pull forward in Q1, maybe? I guess, how are you seeing your overall sales funnel going forward?

Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Alex Kim: Did you see any pull forward in the first quarter maybe.

Alex Kim: I guess how are you how are you seeing your overall sales funnel going forward.

Dan Brennan: And our first question today will come from Dan Brennan of TD Cowen. Please go ahead.

Alex Kim: We're really.

Alex Kim: We're encouraged by.

Speaker Change: Yeah.

Michael Egholm: We're encouraged by the growth in our funnel, primarily in the Hyperion XTi, but also some traction on our other instruments. It's really all the good work we did last year in a difficult CapEx environment. We saw some opening up of the markets at the end of the year. We carried that momentum into Q1. On the instrument side, it's always a little bit hard to say whether it's a pull forward or not, but I can't think of any that was pulled forward here due to tariffs or other things. It may impact consumables a little bit, but again, not materially.

Speaker Change: Hey, Good afternoon, guys. This is Kyle on for Dan. Thanks for taking the questions I wanted to start on the reiterated guide you said nothing has really changed in your view in terms of the weighting of revenue. This year more back half weighted understanding you guys don't guide quarterly, but I think the street's IP for revenue down a bit Q over Q on one of the easiest.

Alex Kim: <unk>.

Alex Kim: And our final primarily in the Hyperion ex Ti, but also some traction on our instruments.

Alex Kim: And it's really all the good work, we did last year.

Alex Kim: Difficult Capex environment that we saw.

Alex Kim: We're opening up in the markets at the end of the year and so we carried that momentum into.

Speaker Change: Comps of the year next quarter does that mean.

Speaker Change: And I guess, how should we think about the percentage split between first half second half.

Alex Kim: Q1, we haven't.

Alex Kim: On the instrument side.

Speaker Change: I'll, let Alex answer that one.

Alex Kim: It's always a little bit hard to say, whether it's a pull forward or.

Alex: Good to hear thanks, Kyle we're not being overly specific on that but as we look at our internal funnel, we do see some larger projects that'll hit in the back half of the year.

Alex Kim: Or not but I can't think of any that was pulled forward two to tango. So.

Alex Kim: Our other things.

Alex Kim: May impact consumables, a little bit, but again not not materially.

Alex: So it's less the seasonality that you might've seen in the past, but more driven by our funnel metrics.

Alex Kim: And again just got it in this choppy environment, we continue just to.

Kyle: Got it.

Michael Egholm: in this job environment, we continue just to focus on what we controlled last year when CapEx was tough. We kept focusing on just building the funnel. We're now seeing some good traction. Not declaring victory yet. No.

Alex Kim: Focusing on our control last year when Capex was tough we kept focusing on just building the funnel and we are now.

Dan Brennan: Got it and maybe on the instrument demand this year.

Dan Brennan: First quarter instrument number looks pretty good relative to our model at least.

Alex Kim: Seeing some good traction, but not not declaring victory yet.

Dan Brennan: You can share I guess on the funnel did you see any pull forward in the first quarter maybe I.

Speaker Change: Got it and then maybe I can just sneak in one more here on the M&A side earlier. This year you targeted 406 deals between this year and 2026.

I guess how are you are you seeing your overall sales funnel going forward.

Kyle: Got it. Maybe if I can just sneak in one more here on the M&A side. Earlier this year, you targeted the 4 6 deals between this year and 2026. Clearly, there have been many changes in the market since you initially laid out that goal, and on the call it sounds like you guys have a pretty good funnel. Has anything changed in regards to your pipeline and the potential timing of any deals? Thank you.

Dan Brennan: Well really.

Dan Brennan: We're encouraged by.

Speaker Change: Many change in the market since you initially laid out that goal and on the call. It sounds like you guys have a pretty good funnel has anything changed in regards to your pipeline and the potential timing of any deals. Thank you.

Dan Brennan: The growth in our funnel primarily in the Hyperion ex Ti, but also some traction on our instruments.

And it's really all the good work, we did last year in a difficult capex environment, we saw.

Speaker Change: Strategic M&A as part of our founding thesis at the moment.

Michael Egholm: Yeah. Strategic M&A is part of our founding thesis. It remains a core part of the strategy in here. Alex and I are now 4 years into this adventure here, remain ever more convinced that there's a need for consolidator in this space. I think we have positioned ourselves and we've proven ourselves here. The market needs integration. We've built the funnel here over the last few years, and what we're seeing now, of course, with the macro and the funding environment and VC investment, it definitely offers up an increased number of opportunities that are actionable now at improved valuation in our point of view. Having said that, I want to remind everybody that we are highly disciplined.

Dan Brennan: Some opening up in the markets at the end of the year and so we carried that momentum into.

Speaker Change: Coal part of our strategy in here.

Speaker Change: <unk> and our full year into this adventure here remain ever more convinced that.

Dan Brennan: Q1, we haven't.

Speaker Change: Our need for consolidator in this space and I think we are.

Dan Brennan: On the instrument side.

Dan Brennan: It's always a little bit hard to say, whether it's a pull forward all on <unk>.

Speaker Change: Precision ourselves and we have proven our set the market needs integration.

Dan Brennan: But I can't think of any debt that was.

Speaker Change: We.

Dan Brennan: Forward two to tango so.

Speaker Change: C.

Dan Brennan: Other things it may impact consumables, a little bit, but again not not materially.

Speaker Change: The funnel here over the last few years and what we're seeing now of course with that.

Speaker Change: With the macro and the funding environment.

Dan Brennan: And again just in this choppy environment. We continue just to focus on with control last year. When Capex was tough we kept focusing on just building the funnel and we are now.

Speaker Change: VC investment it definitely offer.

Speaker Change: An increased number of opportunities that are <unk>.

Speaker Change: <unk> will now improve.

Speaker Change: Improved valuation in our point of view, having said that I want to remind everybody that we are highly disciplined.

Dan Brennan: Seeing some good traction, but not not declaring victory yet.

Dan Brennan: Got it maybe I could just sneak in one more here on the M&A side, you know earlier. This year you targeted four six deals between this year and 2026 current even may change in the market. Since you initially laid out that goal and on the call. It sounds like you guys have a pretty good funnel has anything changed in regards to your pipeline and the potential timing of any.

Speaker Change: We recognize that our healthy cash position the key asset different shade on this environment and so we intend to go after that set number.

Michael Egholm: We recognize that our healthy cash position, a key asset, differentiate on this environment. We intend to go after that set number of acquisitions here over the next 18 months. The bar is high.

Speaker Change: Of acquisitions here over the next 18 months, but the.

Speaker Change: Hi.

Dan Brennan: Thank you.

Speaker Change: Got it thanks guys.

Dan Brennan: Strategic M&A is part of founding thesis remains.

Kyle: Got it. Thanks, guys.

Speaker Change: And our next question today will come from Matt Stanton of Jefferies. Please go ahead.

Coal part of the strategy in here, Alex and I and our full year into this adventure here.

Operator: Our next question today will come from Matthew Stanton of Jefferies. Please go ahead.

Matt Stanton: Hey, Thanks, maybe one just on U S academic and government.

Dan Brennan: Evermore convinced that there's a need for a consolidator in this space and I think we are.

Matthew Stanton: Hey, thanks. Maybe one just on US academic and government. You kind of baked a 15% or mid-teens decline in on the Q4 call. I think when we caught up then, you had said you hadn't seen any kind of a noticeable change in demand patterns at that time. Now that we've had a bit more time pass, and obviously the news filters remain dynamic, but just any more color kind of on how US academic progressed through Q1, and any color on how it's trended here into Q2? Then, within that mid-teens decline for the year you had baked in prior, any more color just to a finer point in terms of what that bakes in consumables and service versus the instrument piece there? Thank you.

Matt Stanton: Baked into 15% or mid teens decline in on the <unk> call I think when we caught up then you had said you know you hadn't seen any kind of a noticeable change in demand patterns at that time now that we've got a bit more time pass and obviously the news flow remain dynamic, but just any more color kind of on how U S academic.

Dan Brennan: The station ourselves and we've proven ourselves the market needs integration.

Dan Brennan: We.

Dan Brennan: See we have built the funnel here over the last few years and what we're seeing now of course with that.

Matt Stanton: Progress through <unk> and any color on how it's trended here into <unk>.

Dan Brennan: With the macro and the funding environment.

Dan Brennan: VC investment.

Matt Stanton: And then within that mid teens decline for the year you'd baked in premier.

Dan Brennan: We offer.

Dan Brennan: An increased number of opportunities that are actionable now at the improved valuation.

Matt Stanton: More color just to refine your point in terms of what that bakes in consumables and service versus the instrument piece there. Thank you.

Dan Brennan: Our point of view, having said that I want to remind everybody that we are highly disciplined we recognize that our healthy cash position the key asset different shade on this environment and so we intend to go after that set number.

Matt Stanton: Yeah, Hey, Matt good to hear you.

We.

Michael Egholm: Yeah. Hey, Matt. Good to hear you. We were surgical in how we called it out at our last earnings call, and that is the sort of high-level guidance that we made. I just want to remind everybody that we were coming into here expecting healthy growth in the Americas. The 15% is still what our mid-teens is still what we are seeing. We have seen, because we have been advised by some institutions that have committed to buying instruments this year that they do not know if they will be able to do it. We have seen some delay in consumables orders. Whether those are permanent, we do not know. We have seen at the recent AACR conference, a number of customers from academia could not travel because they were basically curbing on non-essential expenditures. The sort of broad impact of less fund in US academia definitely holds.

Matt Stanton: We will.

Matt Stanton: Surgical in how we called it out at our last earnings call and that's.

Dan Brennan: Acquisitions here over the next 18 months, but.

Matt Stanton: The sort of high level guidance.

Dan Brennan: The bar is high.

Matt Stanton: This morning, I'll remind everybody that we were <unk>.

Coming into the year expecting healthy growth in the Americas. So.

Speaker Change: Got it thanks guys.

Speaker Change: Our next question today will come from Nat Stanton of Jefferies. Please go ahead.

Matt Stanton: The 15% is still.

Matt Stanton: What a mid teens is still what we're seeing we have seen.

Nat Stanton: Hey, Thanks, maybe one just on U S academic and government.

Matt Stanton: We have been advised by by some institutions that have committed to buying instruments. This year that that don't know if there will be able to do it we have seen some delay in consumables orders.

Nat Stanton: You kind of baked into 15% or mid teens decline in on the <unk> call. You know I think when we caught up then you had said you know you haven't seen any kind of a noticeable change in demand patterns at that time now that we've got a bit more time pass and obviously the news flow there remains dynamic, but just any more color kind of on how U S academic.

Matt Stanton: Whether those are permanent we don't know.

Matt Stanton: And we've seen at the.

Matt Stanton: The reason the ACR conference a number of customers from academic could not travel because that.

Nat Stanton: It progressed through <unk> and any color on how it's trended here into <unk>.

Matt Stanton: There were.

Matt Stanton: Basically curbing all nonessential expenditures.

Nat Stanton: And then you know within that mid teens decline for the year you had baked in premier.

Matt Stanton: Roche impact.

Nat Stanton: More color just a finer point in terms of what that bakes in consumables and service versus the the instrument piece there. Thank you.

Matt Stanton: Of less fund and U S. Academia definitely holds I think we've sort of pegged it about right from where we're sitting now.

Michael Egholm: I think we've sort of pegged it about right from where we're sitting now, and therefore, we are maintaining the guidance.

Matt: Yeah, Hey, Matt good to hear you.

Matt Stanton: And therefore, we are maintaining.

Nat Stanton: We.

Matt Stanton: The guidance.

Nat Stanton: We will.

Matt Stanton: Okay, Great. That's helpful and then just.

Nat Stanton: Surgical in how we called it out at our last earnings call and that's the sort of high level guidance.

Matt Stanton: Maybe sorry.

Matthew Stanton: Okay. Great. That's helpful. maybe-

<unk> talked a little piece of instruments. So we are seeing.

Michael Egholm: Just maybe, yeah, sorry, I forgot the little piece on instruments. We've seen some of the instruments we shipped here were in US academia, typically with private funding. We obviously hope NIH budget will be released and funding will come through for the various grants for all the good stuff we have in the pipeline. Our funnel, I should say.

Matt Stanton: Somebody instruments with ship here in.

Matt Stanton: In U S academia.

Nat Stanton: This morning, we remind everybody that we were.

Matt Stanton: Typically with private funding.

Nat Stanton: Coming into the year expecting healthy growth in the Americas. So.

Matt Stanton: Obviously hope NIH budget will be released and when they will contribute for the various grants for all the good stuff we have in the pipeline.

Nat Stanton: The 15% is still.

Nat Stanton: What a mid teens is still what we're seeing we have seen.

Matt Stanton: I should say.

Matt Stanton: Okay great.

Matt Stanton: Just on the new products.

Nat Stanton: Because we have been advised by by some institutions that have committed to buying instruments. This year that they don't know if there will be able to do it we have seen some delay in consumables orders.

Matthew Stanton: Yeah, great. Thanks. Maybe just on the new product side, the handful of new launches last week, just to focus on the Single SOMAmer reagents, any kind of early feedback or demand now that you get those out the door? Can you just remind us on the commercial model there, how much of the existing Soma menu will be available for the single SOMAmer? Any workflows or customers you expect this to resonate strongly with? Thanks.

Matt Stanton: Full of new launches last week, just to focus on the singles from our reagents.

Matt Stanton: Any kind of early feedback or demand now that you've got those.

Matt Stanton: Out the door in the Qs you remind us on the commercial model there how much of the existing.

Whether those are permanent we don't know.

Matt Stanton: Soma menu will be available for the single Soma mirrors and then.

Nat Stanton: And we've seen at the.

Nat Stanton: The reason the ACR conference a number of customers from academic could not travel costs.

Matt Stanton: Any work flows your customer.

Speaker Change: Customers do you expect this to resonate.

Matt Stanton: Strongly with thanks.

Nat Stanton: There were.

Matt Stanton: Yes, so we were in.

Nat Stanton: Basically curbing all nonessential expenditures.

Michael Egholm: Yeah. We were in what we call an early access, a minimal viable products up until now. Now we've made it fully available. We are initially addressing a couple of applications. One is as more and more researchers will use SomaScan, they will identify a number of proteins, a very large number, as I just referenced in my script. One of the first things you will want to do is to do a pull-down with those and then analyze by mass spec, confirming post-translational modifications. We see that as one avenue. We believe there is a broader reagent market where antibodies are really limited, where we have 11,000 fully synthetic monoclonal reagents binding to human proteins. We believe that's a valuable tool set, and we believe it's a very nice complement to the antibody market. As for how we're going about it's a new capability.

Matt Stanton: What we call like an early access a minimal viable products up until now and now we have made it fully fully available.

Nat Stanton: Roche impact.

Nat Stanton: Of less fund and U S. Academia definitely holds I think we sort of pegged it about right from where we are sitting now.

Matt Stanton: We.

Matt Stanton: Initially addressing a couple of applications, one is as more and more users.

Nat Stanton: And therefore, we are maintaining.

Nat Stanton: The guidance.

Matt Stanton: Joseph will use Soma scan that we'll find a number of.

Nat Stanton: Okay, Great. That's helpful and then just.

Nat Stanton: Maybe sorry, I forgot tucked a little piece of instruments, we saw we've seen.

Matt Stanton: Okay.

Matt Stanton: <unk> identified a number of proteins are very large numbers of just referenced in my.

Nat Stanton: Somebody instruments with ship here in <unk>.

Matt Stanton: My script and one of the first things you would want to do is to do a call down with those and then analyzed by mass spec.

Nat Stanton: Academia.

Nat Stanton: Typically with private funding.

Nat Stanton: We obviously hope NIH budget will be released in funding will contribute for the various grants for all the good stuff we have in the pipeline.

Matt Stanton: Confirming post translational modifications to those who see that as one Avenue and then we believe there is a broader reagent market, where antibodies are really limited, where we have 11000 polysynthetic monoclonal agents binding to human protein we believe that.

Nat Stanton: Oh, no I should say.

Nat Stanton: Okay, Great and then maybe just on.

Nat Stanton: The new products and a handful of new launches last week just to focus on the singles from our reagents, you know any kind of early feedback or demand now that you get those out the door and the huge remind us on the commercial model there how much of your existing.

Matt Stanton: Our valuable.

Matt Stanton: <unk> said and we believe it's a very nice complement to the antibody.

Nat Stanton: So my menu will be available for the single Soma mirrors and then.

Matt Stanton: Market.

As for how we're going about it it's a new capability, we have not sold into.

Nat Stanton: Workflow as your customers do you expect this to resonate.

Nat Stanton: Strongly with thanks.

Matt Stanton: Individual reagents before so I would not have high expectations in the short term, but in the long term as we're figuring out how to sell this.

Michael Egholm: We have not sold individual reagents before. I would not have high expectations in the short term. In the long term, as we're figuring out how to sell this, we see this as a fairly significant opportunity.

Nat Stanton: Yeah. So we were in a what we call like an early access a minimal viable products up until now and now we have made it fully fully available.

Matt Stanton: We see this as a fairly significant opportunity.

We are initially addressing a couple of applications one is as more and more users.

Matt Stanton: Thank you.

Matthew Stanton: Super. Thank you.

Speaker Change: Again, if you would like to ask a question. Please press star and then one.

Nat Stanton: Joseph will use so Michigan that will find a number of.

Operator: Our next question will come from Paul Knight of KeyBank. Please go ahead.

Speaker Change: Uh huh.

Paul Knight: Our next question will come from Paul Knight of Keybanc. Please go ahead.

Speaker Change: Identifying number proteins are very large numbers of just referenced in my in my script and one of the first things you would want to do is to do a call down with those and then analyzed by mass spec.

Paul Knight: Michael are you expecting the aluminum partnership to generate significant revenue in 2025.

Paul Knight: Michael, are you expecting the Illumina partnership to generate significant revenue in 2025?

Michael Legg: Hey, Paul.

Speaker Change: Confirming post translational modifications to those who see that as one Avenue and then we believe that as a broad a reagent market where antibodies are really limited where we have it.

Michael Egholm: Yeah. Hey, Paul. We're very excited about the upcoming launch here as we talked about at JPM, at our last earnings call, with the mounting evidence that we are uniquely positioned, the clinical research and insights, most recently at AACR, that you can see. Now Illumina making this available to thousands of labs with sequences. We're cautious for 2025, but long term, see this as a very strong value driver. Illumina is responsible for the sales, marketing, and support, and we have all the faith in the world that they will do a brilliant job. This is new for them, and this always takes longer than one want. The outlook is really bright for the technology, and maybe Alex, you can just comment on what's baked into our 2025 assumptions there.

Paul Knight: We're very excited about the upcoming launch here as well.

Speaker Change: Talked about GPM at our last earnings call with the mounting evidence that we are uniquely positioned to clinical research and insights most recently at <unk>.

Speaker Change: 11000, foolish synthetic monoclonal agents binding to human protein, we believe that are valuable.

Paul Knight: CR.

Paul Knight: But you can see in our alumina, making this available to thousands of.

Speaker Change: <unk> said and we believe it's a very nice complement to the antibody.

Paul Knight: Of.

Paul Knight: Laughs with sequences.

Speaker Change: Market.

Speaker Change: As for how we're going about it it's a new capability, we have not sold.

Paul Knight: We.

Speaker Change: Cautious with 25, but long term see this as a very strong value driver.

Speaker Change: The individual agents before so I would not have high expectations in the short term, but in the long term as we're figuring out how to sell this.

Illuminate is responsible for sales marketing and support.

Speaker Change: We see this as a fairly significant opportunity.

Speaker Change: All the faith in the world that they will do a brilliant job.

And this is new for them and this always takes longer than than one watt.

Speaker Change: Thank you.

Speaker Change: But the outlook is really bright for the technology.

Speaker Change: Again, if you would like to ask a question. Please press star and then one.

Speaker Change: Maybe Alex you can just comment on what's baked into our 25 assumptions data, yes, maybe just to remind you in 2004, we had some good revenue from Illumina that came through for development to support that development as well as the early access customers so year over year, it will be moderate growth.

Operator: Our next question will come from Paul Knight of Keybanc. Please go ahead.

Alex Kim: Yeah. Maybe just to remind you, in 2024, we had some good revenue from Illumina that came through for development to support their development as well as their early access customers. Year-over-year, it'll be moderate growth on top of that, but not for many of the reasons Michael mentioned, not a significant growth overall. That is baked into our current guidance. As Michael mentioned, 2026 and beyond, we expect to begin to see strong traction and strong growth there.

Speaker Change: Michael are you expecting the Illumina partnership to generate significant revenue in 2025.

Speaker Change: Yeah, Hey, Paul.

Speaker Change: Yeah.

Speaker Change: On top of that but not for many of the reasons Michael measure mentioned another significant growth overall.

Speaker Change: We are very excited about the upcoming launch here as we talked about at J P. M. At our last earnings call with the mounting evidence that we are uniquely positioned.

Speaker Change: That is baked into our current guidance and as Michael mentioned 26, and beyond we expect to begin to see strong traction and strong growth there okay.

Speaker Change: The clinical research and insights most recently.

Speaker Change: ACR.

Speaker Change: Okay and then.

Speaker Change: But you can see it now illumina, making this available to thousands of.

Speaker Change: Of course, we can.

Paul Knight: Okay. Of course, I know academic's challenging. Can you talk about what you're seeing within the biopharmaceutical customer set? It does seem like we've started the year with a more visible spending trend there. Are you seeing a better market condition for the major biopharma part of the market?

Speaker Change: I know academic challenging, but can you talk about what youre seeing within the biopharmaceutical customers. It does seem like we started the year with a more visible.

Speaker Change: Of the labs with sequences.

Speaker Change: We.

Speaker Change: Cautious with 25, but long term see this as a very strong value driver.

Speaker Change: Spending trend there are you seeing.

Speaker Change: A better market condition for.

Speaker Change: Illuminate is responsible for sales marketing and support.

Speaker Change: Major biopharma part of the market.

Speaker Change: All the faith in the world that they will do a brilliant job.

Speaker Change: With good traction in summer here in.

Speaker Change: And this is new for them and it is always takes longer than one watt.

Michael Egholm: Good traction in pharma here in Q1 and have not seen a change from that as I'm sitting here today. Our numbers get a little bit obscured by our historical dependence on a few large customers. As I said in the script, it's becoming ever less so, but it still leads to quarter-to-quarter variation. Underneath that, we're actually seeing a healthy growth and funnel beyond those accounts and in our authorized sites.

Speaker Change: In Q1 and have not seen.

Speaker Change: Seem to change some of that is <unk>.

Speaker Change: But the outlook is really bright for the technology.

Speaker Change: Sitting here today.

Speaker Change: Our numbers get a little bit.

Speaker Change: Maybe Alex you can just comment on what's baked into our 25 assumptions there yeah, maybe just to remind you in 'twenty four we had some good revenue from alumina that came through for development to support their development as well as the early access customers so year over year and it'll be moderate growth.

Speaker Change: Obscured by.

Speaker Change: Our historical dependency on a few large customers as I said in the script, it's becoming ever less so, but it's still lead to quarter to quarter variation, so underneath that we actually seeing.

Speaker Change: Yes.

Speaker Change: On top of that but not for many of the reasons Michael measure mentioned another significant growth overall.

Speaker Change: A healthy growth and funnel.

Speaker Change: Beyond dose.

Speaker Change: Accounts and in our authorized sites.

Speaker Change: That is baked into our current guidance and as Michael mentioned 26, and beyond we expect to begin to see strong traction and strong growth there.

Speaker Change: Okay, and then last is $10 million cost action in early January.

Paul Knight: Okay. Last is the $10 million cost action in early January. Should we think about an improved outlook for EBITDA loss this year?

Speaker Change: Okay, and then of course, we can.

Should we think about.

Speaker Change: Improved outlook for EBITDA loss this year.

Speaker Change: I know academic challenging, but can you talk about what youre seeing within the biopharmaceutical customers said it does seem like we started the year with a more visible.

Alex Kim: I'll, let Alex handle that yes, slightly so the action was late January 10 million annualized and so yes, you will see that flow through.

Michael Egholm: I'll let Alex handle that.

Alex Kim: Yeah, slightly. The action was late January, $10 million annualized. Yes, you will see that flow through. Our approach, as Michael has said many times, is continuous improvement, and so you'll see us continue to improve our adjusted EBITDA.

Speaker Change: Spending trend there are you seeing.

Speaker Change:

Speaker Change: A better market condition for.

Michael Legg: Our approach as Michael has said many times is continuous improvement and so youll see us continue to.

Speaker Change: May your Biopharma part of the market.

Speaker Change: We had good traction in summer here and.

Michael Legg: Prove our our adjusted EBITDA.

Speaker Change: Okay. Thank you.

Speaker Change: In Q1 and have not seen.

Paul Knight: Thank you.

Speaker Change: <unk> seen a change from that.

Speaker Change: Ladies and gentlemen at this time, we will conclude our question and answer session.

Speaker Change: Sitting here today.

Speaker Change: Our numbers get a little bit.

Operator: Ladies and gentlemen, at this time, we will conclude our question-and-answer session and also conclude the Standard BioTools conference call. Thank you for attending today's presentation, and you may now disconnect your lines.

Speaker Change: And also conclude the standard buyer to this conference call.

Speaker Change: Obscured by.

Speaker Change: Oh like historical depends on a few large customers as I said in the script, it's becoming ever less so but still lead to quarter to quarter variation so underneath that we actually seeing.

Speaker Change: Thank you for attending today's presentation and you may now disconnect your lines.

Speaker Change: Yes.

Speaker Change: A healthy growth and funnel.

Speaker Change: One dose accounts and in our authorized sites.

Speaker Change: Okay, and then last is the $10 million cost action in early January.

Speaker Change: Should we think about.

Speaker Change: <unk> proved outlook for EBITDA loss this year.

Speaker Change: I'll, let Alex handle that yes, slightly so the action was late January 10 million annualized and so yes, you will see that flow through.

Speaker Change: Our approach as Michael has said many times is continuous improvement and so youll see us continue to improve our adjusted EBITDA.

Speaker Change: Okay. Thank you.

Speaker Change: Ladies and gentlemen at this time, we will conclude our question and answer session.

Speaker Change: And also conclude the standard buyer to this conference call.

Speaker Change: Thank you for attending today's presentation and you may now disconnect your lines.

Speaker Change: Yeah.

Speaker Change: Okay.