Singular Genomics Reports Recent Highlights and Fourth Quarter and Full Year 2023 Financial Results
- Generated revenue of $1.1 million in Q4 2023, a 41% growth compared to the prior year.
- Shipped eight G4 systems in Q4, totaling 24 commercial systems.
- Unveiled G4X Spatial Sequencer for high-throughput in situ spatial sequencing.
- Expected benefits include increased sample throughput, reduced turnaround time, and lower costs.
- Announced updates to G4 benchtop sequencing system and showcased Singular Connect.
- Operating expenses for Q4 2023 were $24.8 million.
- Net loss for Q4 2023 was $23.2 million, or a loss of $0.32 per common share.
- Full year 2023 revenue was $2.9 million, with operating expenses of $102.2 million.
- Net loss for 2023 was $94.8 million, or a loss of $1.30 per common share.
- Cash, cash equivalents, and short-term investments totaled $173.9 million as of December 31, 2023.
- None.
Insights
The reported financials by Singular Genomics Systems, Inc. indicate a noteworthy year-over-year revenue growth of 41% in the fourth quarter and a significant sequential growth of 134% from the third quarter of 2023. This growth is primarily attributed to the shipment of eight G4 systems, which also marks a milestone in the company's commercial progress. However, the operating expenses have also seen an increase, which could be a reflection of the company's investment in scaling its operations and R&D efforts, particularly with the commercial launch of the G4 and advancements in the product pipeline.
From an investor's perspective, the launch of the G4X Spatial Sequencer could represent a potential upside due to its unique positioning in the market as a high-throughput in situ spatial sequencing platform. The cost-effectiveness and rapid turnaround time could make it a competitive product, potentially increasing market share and future revenue streams. However, the workforce reduction raises questions about the company's current financial sustainability and the need to extend its cash runway. Investors should monitor the balance between cost-cutting measures and the ability to maintain growth momentum.
The net loss figures for both the quarter and the full year, despite the revenue increase, suggest that the company is still in a growth phase with significant investment in technology development. The cash reserves reported provide a cushion, but the burn rate will be a critical factor to watch in the coming quarters. The financials suggest a company in transition, with potential for growth but also with inherent risks associated with scaling operations and technology commercialization.
The next-generation sequencing (NGS) and spatial multiomics fields are rapidly growing areas of interest within the biotechnology sector. Singular Genomics' unveiling of the G4X Spatial Sequencer positions the company at the forefront of innovation in this space. The instrument's capabilities, such as direct RNA sequencing and targeted transcriptomics, cater to a burgeoning demand for comprehensive tissue analysis.
The emphasis on cost-effectiveness and high throughput addresses a significant barrier for many researchers and clinicians, potentially opening up the market to a wider customer base. The upgrades and early access program planned for the end of 2024 could further solidify the company's market position if executed successfully. The ability to offer a platform that reduces the cost per sample while maintaining quality could disrupt the current market dynamics and attract new customers.
However, the market for NGS and spatial multiomics is competitive, with several established players. The success of the G4X will depend not only on its technological capabilities but also on effective marketing, customer support and post-launch service. The company's financial health and ability to continue investing in innovation and market penetration will be critical. The cost-cutting measures, including workforce reduction, could impact the company's operational efficiency and market expansion efforts. Therefore, the long-term market impact of the G4X launch will require careful monitoring.
The biotechnology industry is highly sensitive to technological advancements and the introduction of the G4X Spatial Sequencer by Singular Genomics could be a game-changer in the field of spatial genomics. The technology's ability to perform simultaneous multiomics analysis on FFPE tissues is particularly significant, as it could streamline workflows in clinical research and diagnostics, which often rely on these tissue types.
The improved sequencing quality reported for the G4 system and the new features of the G4X, such as the specialized tissue transfer process, are aligned with industry trends towards higher accuracy and efficiency in sequencing. The web-based application Singular Connect™ for remote monitoring further enhances the user experience and could improve customer loyalty and retention.
Despite these advancements, the biotechnology industry is also characterized by high R&D costs and long development cycles. Singular Genomics' increased operating expenses and net loss reflect this reality. The strategic decision to reduce the workforce to extend the cash runway is a common one in the industry, especially for companies still in the growth stage. The challenge will be to balance cost management with the need to invest in R&D and commercialization to stay competitive. The company's financial health and strategic decisions in the coming quarters will be critical in determining its ability to capitalize on its technological advancements and secure a stable position in the market.
SAN DIEGO, March 18, 2024 (GLOBE NEWSWIRE) -- Singular Genomics Systems, Inc. (Nasdaq: OMIC), a company leveraging novel next-generation sequencing (NGS) and spatial multiomics technologies to empower researchers and clinicians, today highlighted recent corporate achievements and reported financial results for the fourth quarter and full year ended December 31, 2023.
“We ended 2023 on a strong note, shipping our largest number of quarterly instruments to-date,” said Drew Spaventa, Chairman and Chief Executive Officer of Singular Genomics. “We continue to build momentum in early 2024 with the recent unveiling of the G4X, the first in situ spatial sequencer. The G4X brings sequencing into tissue sections, offering new capabilities and novel data streams with industry-leading throughput and cost.”
Fourth Quarter and Recent Financial Highlights
- Generated revenue of
$1.1 million in the fourth quarter of 2023, representing growth of41% compared to prior year period and134% compared to the third quarter of 2023. - Shipped eight G4 systems in the fourth quarter of 2023, increasing the total number of commercial systems shipped to 24 as of the end of the fourth quarter of 2023.
- Implemented additional cost-cutting measures in March 2024 to support the Company’s launch into spatial sequencing, including a workforce reduction of approximately
20% , to reduce operating expenses and extend cash runway.
Product Roadmap Highlights
- Unveiled the G4X™ Spatial Sequencer, a high-throughput in situ spatial sequencing platform capable of simultaneous direct RNA sequencing, targeted transcriptomics, proteomics and fluorescent H&E from formalin-fixed, paraffin-embedded (FFPE) tissues. The G4X is expected to be the only instrument to offer the capabilities for both NGS and tissue-based in situ spatial multiomics including:
- Industry-leading Throughput – An imaging area of 40 cm2 per run across four spatial flow cells is expected to dramatically increase sample throughput while retaining flexibility for smaller runs.
- Rapid Turn-around-time – With a specialized tissue transfer process, streamlined sample preparation workflow, and high-speed single-day sequencing, users will have the ability to go from sample-to-discovery in just three days.
- Cost-Effectiveness – With its unprecedented throughput, the G4X will significantly reduce the cost per sample to less than half that of alternative approaches, making spatial multiomics more accessible.
- Upgrades expected to be available to G4 customers by the end of 2024, and to launch an early access program at the same time.
- Announced updates to the G4 benchtop sequencing system including:
- Increased sequencing quality with G4 runs now averaging above
90% bases ≥ Q30; raised specifications to85% bases ≥ Q30. - Showcased Singular Connect™, a web-based application for remote real-time monitoring of runs, results viewing, and instrument and team management.
- Increased sequencing quality with G4 runs now averaging above
Fourth Quarter 2023 Financial Results
Revenue for the fourth quarter of 2023 was
Operating expenses for the fourth quarter of 2023 totaled
Net loss for the fourth quarter of 2023 was
Full Year 2023 Financial Results
Revenue for the full year of 2023 was
Operating expenses for 2023 totaled
Net loss for 2023 was
Cash, cash equivalents and short-term investments, excluding restricted cash, as of December 31, 2023 totaled
Webcast and Conference Call Details
Singular Genomics’ management team will host a conference call today, March 18, 2024, beginning at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. Investors interested in listening to the conference call may do so by dialing 1-877-545-0523 for domestic callers or 1-973-528-0016 for international callers and using conference ID 476908 approximately five minutes prior to the start time. A live and archived webcast of the event will be available at investor.singulargenomics.com, in the Presentations & Events section.
About Singular Genomics Systems, Inc.
Singular Genomics is a life science technology company that develops next-generation sequencing and multiomics technologies. The commercially available G4® Sequencing Platform is a powerful, highly versatile benchtop genomic sequencer designed to produce fast and accurate results. In addition, the company is currently developing the G4X™ Spatial Sequencer, which will leverage Singular’s proprietary sequencing technology, applying it as an in situ readout for transcriptomics, proteomics and fluorescent H&E in tissue, with spatial context and on the same platform as the G4. Singular Genomics’ mission is to empower researchers and clinicians to advance science and medicine. Visit www.singulargenomics.com for more information.
Forward Looking Statements
Certain statements contained in this press release, other than historical information, constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include, but are not limited to, statements regarding: (i) our timeline and successful development of the G4X; (ii) expected features, capabilities and specifications of the G4X and the ability to deliver associated services and grants; (iii) our ability to successfully manufacture, commercialize and support the G4, G4X and our flow cell kits, in accordance with our timelines, objectives and specifications; (iv) our expectations on cash runway, including whether our cost-cutting measures will have any material impact on our operating expenses or cash runway; and (v) quotes of management. Any such forward-looking statements are based on our management’s current expectations and are subject to risks and uncertainties that could cause our actual future results to differ materially from our management’s current expectations or those implied by our forward-looking statements. These risks and uncertainties include, but are not limited to, the following: (i) we are currently developing the G4X Spatial Sequencer and related services and may not be successful in completing its development on our projected timeline, with the features and capabilities we expect, or at the cost we anticipate; (ii) we have very little history manufacturing and commercializing our products or technology; (iii) the life sciences technology market is highly competitive, and if we fail to compete effectively, our business and operating results will suffer; (iv) if we are sued for infringing, misappropriating or otherwise violating intellectual property rights of third parties, such litigation could be costly and time consuming and could prevent or delay us from developing or commercializing our products; (v) if our products fail to achieve early customer and scientific acceptance, we may not be able to achieve broader market acceptance for our products, and our revenues and prospects may be harmed; (vi) we expect to be highly dependent on revenue generated from the sale of the G4 and future products (such as the G4X), and any delay or failure by us to successfully manufacture and commercialize the G4 and future products (such as the G4X) could have a substantial adverse effect on our business and results of operations; and (vii) recent macroeconomic challenges such as inflation and rising interest rates may materially and adversely impact our business, operations, product manufacturing and commercialization objectives. These and other risk factors that may affect our future results of operations are identified and described in more detail in our most recent filings on Forms 10-K and 10-Q and in other filings that we make with the SEC from time to time, including our Annual Report on Form 10-K for the period ended December 31, 2023, filed with the SEC on March 18, 2024. Accordingly, you should not rely on forward-looking statements as predictions of future events or our future performance. Except as required by law, we undertake no obligation to update publicly or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
Investor Contact
Matt Clawson
949-370-8500
ir@singulargenomics.com
Media Contact
Dan Budwick, 1AB
973-271-6085
dan@1abmedia.com
| Singular Genomics Systems, Inc. | |||||||||||||||
| Statements of Operations | |||||||||||||||
| (In thousands, except share and per share amounts) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Revenue | $ | 1,081 | $ | 765 | $ | 2,911 | $ | 765 | |||||||
| Cost of revenue | 1,538 | 789 | 3,469 | 789 | |||||||||||
| Gross margin | (457 | ) | (24 | ) | (558 | ) | (24 | ) | |||||||
| Operating expenses: | |||||||||||||||
| Research and development | 11,690 | 10,760 | 47,764 | 46,199 | |||||||||||
| Selling, general and administrative | 13,134 | 11,746 | 54,479 | 47,264 | |||||||||||
| Total operating expenses | 24,824 | 22,506 | 102,243 | 93,463 | |||||||||||
| Loss from operations | (25,281 | ) | (22,530 | ) | (102,801 | ) | (93,487 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (287 | ) | (243 | ) | (1,101 | ) | (763 | ) | |||||||
| Interest and other income | 2,319 | 1,672 | 9,082 | 3,371 | |||||||||||
| Total other income | 2,032 | 1,429 | 7,981 | 2,608 | |||||||||||
| Net loss | $ | (23,249 | ) | $ | (21,101 | ) | $ | (94,820 | ) | $ | (90,879 | ) | |||
| Net loss per share: | |||||||||||||||
| Basic and diluted net loss per share | $ | (0.32 | ) | $ | (0.29 | ) | $ | (1.30 | ) | $ | (1.28 | ) | |||
| Weighted-average shares used to compute basic and diluted net loss per share | 73,550,771 | 71,584,976 | 72,796,250 | 71,148,076 | |||||||||||
| Singular Genomics Systems, Inc. | |||||||
| Balance Sheets | |||||||
| (In thousands, except share and par value amounts) | |||||||
| December 31, | |||||||
| 2023 | 2022 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 16,233 | $ | 74,266 | |||
| Short-term investments | 157,708 | 170,310 | |||||
| Accounts receivable | 565 | 913 | |||||
| Inventory, net | 13,572 | 18,221 | |||||
| Prepaid expenses and other current assets | 4,150 | 4,722 | |||||
| Total current assets | 192,228 | 268,432 | |||||
| Right-of-use lease assets | 57,797 | 45,896 | |||||
| Property and equipment, net | 13,692 | 10,784 | |||||
| Restricted cash | 600 | 1,711 | |||||
| Other noncurrent assets | 1,150 | 1,152 | |||||
| Total assets | $ | 265,467 | $ | 327,975 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 2,587 | $ | 3,099 | |||
| Accrued expenses | 6,079 | 4,583 | |||||
| Lease liabilities, current | 7,764 | 6,323 | |||||
| Other current liabilities | 1,857 | 113 | |||||
| Total current liabilities | 18,287 | 14,118 | |||||
| Lease liabilities, noncurrent | 58,623 | 42,456 | |||||
| Long-term debt, net of issuance costs | 8,901 | 10,065 | |||||
| Other noncurrent liabilities | 650 | 1,015 | |||||
| Total liabilities | 86,461 | 67,654 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Series A common stock equivalent convertible preferred stock, | - | - | |||||
| Common stock, | 7 | 7 | |||||
| Additional paid-in capital | 516,439 | 503,926 | |||||
| Accumulated other comprehensive gain (loss) | 155 | (837 | ) | ||||
| Accumulated deficit | (337,595 | ) | (242,775 | ) | |||
| Total stockholders’ equity | 179,006 | 260,321 | |||||
| Total liabilities and stockholders’ equity | $ | 265,467 | $ | 327,975 | |||
FAQ
What was Singular Genomics' revenue in Q4 2023?
How many G4 systems were shipped in Q4 2023?
What is the G4X Spatial Sequencer?
What are the benefits of the G4X Spatial Sequencer?
What updates were announced for the G4 benchtop sequencing system?
What were the operating expenses for Q4 2023?
What was the net loss for Q4 2023?
What was the full year 2023 revenue for Singular Genomics?
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