Seer Reports Fourth Quarter and Full Year 2023 Financial Results and Provides Full Year 2024 Outlook

Rhea-AI Summary

Seer, Inc. reported financial results for Q4 and full year 2023, achieving $4.4 million revenue in Q4, a 4% decrease from 2022, and $16.7 million for the full year, an 8% increase. They shipped 23 instruments in 2023, expanded internationally, and had their first customer publication in Nature Communications. The company ended the year with $373 million in cash and investments. Despite a decrease in revenue for Q4, Seer expects 2024 revenue to be in the range of $18-20 million, a growth of 14% over 2023.

Positive

• Achieved $4.4 million revenue in Q4 2023, a 4% decrease from 2022
• Reported $16.7 million revenue for full year 2023, an 8% increase over 2022
• Shipped 23 instruments in 2023, totaling 62 by December 31, 2023
• Expanded internationally with four new distributors and partners
• Published first customer study in Nature Communications showcasing Proteograph
• Launched Protein Discovery Catalog with over 10,000 proteins
• Ended 2023 with approximately $373 million in cash, cash equivalents, and investments
• Expects 2024 revenue to be in the range of $18-20 million, a 14% growth over 2023

Negative

• Revenue decrease of 4% in Q4 2023 compared to Q4 2022
• Net loss of $17.8 million for Q4 2023
• Operating expenses of $24.2 million for Q4 2023
• Net loss of $86.3 million for full year 2023
• Operating expenses of $112.0 million for full year 2023

Insights

Financial Analyst

The reported financials by Seer, Inc. show a mixed performance with a year-over-year decrease in quarterly revenue by 3.6%, yet an annual increase of 8%. This suggests a potentially concerning short-term trend but an overall positive trajectory. The decrease in lease revenue implies a shift in customer preference or market dynamics that may require strategic adjustments. The increase in service revenue, on the other hand, indicates a growing demand for Seer's services, which could be a sustainable revenue stream moving forward.

Notably, the gross margin of 51.1% for the full year is robust, reflecting efficient cost management. However, the substantial net losses reported both quarterly and annually, despite a reduction in operating expenses, highlight ongoing challenges in achieving profitability. The cash reserves of approximately $373 million provide a substantial buffer for continued operation and investment in growth. The provided guidance for 2024 suggests optimism, projecting a 14% revenue growth at the midpoint, which could be a positive signal to investors about the company's future performance.

Market Research Analyst

Seer, Inc.'s international expansion and the addition of new distributors are strategic moves that could enhance market penetration and diversification. This geographical expansion might help mitigate risks associated with market-specific headwinds and could be a driver of future growth. The peer-reviewed publication in Nature Communications serves as a validation of the Proteograph Product Suite's capabilities, potentially enhancing the company's reputation and credibility in the scientific community, which could translate to increased adoption and sales.

The launch of the Protein Discovery Catalog, featuring over 10,000 proteins, represents a significant enrichment of Seer's offerings and could be a key differentiator in the competitive landscape of proteomics. This could attract a broader customer base, including researchers and pharmaceutical companies, seeking comprehensive proteomic analysis tools.

Medical Research Analyst

The Proteograph Product Suite by Seer, Inc. is a platform designed for proteomics, the study of proteins on a large scale. Proteins are vital to understanding biological processes and disease mechanisms, making proteomics a critical field in biomedical research and drug development. The mention of a customer study published in a prestigious journal like Nature Communications indicates the scientific robustness of the technology, which could have implications for its adoption in clinical research and potentially in diagnostic applications.

Furthermore, the Protein Discovery Catalog could significantly streamline the research workflow, offering researchers a vast array of proteins and pathways to study. This could accelerate the pace of scientific discovery and therapeutic development, making Seer's technology an integral part of the research toolkit in life sciences. The long-term impact of such technological advancements could be profound, potentially leading to breakthroughs in understanding and treating diseases.

Enhanced access to the Proteograph Product Suite and demonstrated its power with new customer data

REDWOOD CITY, Calif., Feb. 29, 2024 (GLOBE NEWSWIRE) -- Seer, Inc. (Nasdaq: SEER), a leading life sciences company commercializing a disruptive new platform for proteomics, today reported financial results for the fourth quarter and full year ended December 31, 2023.

Recent Highlights

• Achieved revenue of $4.4 million for the fourth quarter of 2023, a decrease of 4% over the fourth quarter of 2022, and $16.7 million for the full year 2023, an increase of 8% over the full year 2022
• Shipped 23 instruments during 2023, bringing cumulative instruments shipped to 62 as of December 31, 2023
• Expanded internationally with the addition of four new distributors and partners
• First peer-reviewed customer publication in Nature Communications, demonstrating the power of the Proteograph in pQTL analysis
• Launched the Protein Discovery Catalog with over 10,000 proteins across 1,900 pathways to empower researchers
• Ended the year with approximately $373 million of cash, cash equivalents and investments

“In 2023, our customers continued to demonstrate the powerful biological insight that is uniquely possible by leveraging the Proteograph Product Suite. Recently, we saw our first customer study published in Nature Communications and we expect several more this year,” said Omid Farokhzad, Chair and CEO. “Looking ahead, we are laser focused on translating the incredible performance of our platform and the uniqueness of the data it generates into widespread commercial adoption. I continue to be confident in the substantial long-term opportunity ahead and look forward to updating on our progress throughout 2024.”

Fourth Quarter 2023 Financial Results

Revenue was $4.4 million for the three months ended December 31, 2023, a 3.6% decrease from $4.6 million for the three months ended December 31, 2022. This decrease was primarily due to a decrease in lease revenue related to SP100 instruments, partially offset by an increase in service revenue. Product revenue for the fourth quarter of 2023 was $3.0 million, including $366 thousand of related party revenue, and consisted of sales of SP100 instruments and consumable kits. Service revenue was $1.1 million, including $201 thousand of related party revenue, and primarily consisted of revenue related to the Seer Technology Access Center, and grant and other revenue was $258 thousand. 

Gross profit, inclusive of grant and other revenue, was $2.0 million and gross margin was 45.1% for the fourth quarter of 2023.

Operating expenses were $24.2 million for the fourth quarter of 2023, including $7.6 million of stock-based compensation, a decrease of 11% as compared to $27.2 million, including $8.2 million of stock-based compensation, for the corresponding prior year period. The decrease in expenses was primarily driven by a decrease in product development costs related to the Proteograph Product Suite, including employee compensation and other related expenses.

Net loss was $17.8 million for the fourth quarter of 2023, as compared to $22.5 million for the corresponding prior year period.

Full Year 2023 Financial Results

Revenue was $16.7 million for the year ended December 31, 2023, an 8% increase from $15.5 million for the year ended December 31, 2022. Product revenue for the full year 2023 was $12.9 million, including $4.4 million of related party revenue. Service revenue was $2.3 million, including $241 thousand of related party revenue, and grant and other revenue was $1.5 million.

Gross profit, inclusive of grant and other revenue, was $8.5 million and gross margin was 51.1% for the full year 2023.

Operating expenses were $112.0 million for the full year 2023, including $34.4 million of stock-based compensation, as compared to $104.3 million, including $33.7 million of stock-based compensation, for the corresponding prior year period.

Net loss was $86.3 million for the full year 2023, as compared to $93.0 million for the corresponding prior year period.

Cash, cash equivalents and investments were $373.1 million as of December 31, 2023.

2024 Guidance

Seer expects full year 2024 revenue to be in the range of $18 million to $20 million, representing growth of 14% at the midpoint over full year 2023.

Webcast Information

Seer will host a conference call to discuss the fourth quarter and full year 2023 financial results on Thursday, February 29, 2024 at 1:30 pm Pacific Time / 4:30 pm Eastern Time. A webcast of the conference call can be accessed at http://investor.seer.bio. The webcast will be archived and available for replay for at least 90 days after the event.

About Seer

Seer is a life sciences company developing transformative products that open a new gateway to the proteome. Seer’s Proteograph Product Suite is an integrated solution that includes proprietary engineered nanoparticles, consumables, automation instrumentation and software to perform deep, unbiased proteomic analysis at scale in a matter of hours. Seer designed the Proteograph workflow to be efficient and easy to use, leveraging widely adopted laboratory instrumentation to provide a decentralized solution that can be incorporated by nearly any lab. Seer’s Proteograph Product Suite is for research use only and is not intended for diagnostic procedures. For more information, please visit www.seer.bio.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on Seer’s beliefs and assumptions and on information currently available to it on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause Seer’s actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to statements regarding the Company’s expectations for future results of operations and its financial position, business strategy, customer publications and adoption and outlook for fiscal year 2024. ​These and other risks are described more fully in Seer’s filings with the Securities and Exchange Commission (“SEC”) and other documents that Seer subsequently files with the SEC from time to time. Except to the extent required by law, Seer undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Investor Contact:
Carrie Mendivil
investor@seer.bio

Media Contact:
Patrick Schmidt
pr@seer.bio

Seer, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts)
		Three Months Ended December 31,								Year Ended December 31,
		2023				2022				2023					2022
Revenue:
Product	$	2,669			$	1,431			$	8,506				$	8,557
Service		944				708				2,016					913
Related party		567				1,720				4,660					5,215
Grant and other		258				745				1,479					808
Total revenue		4,438				4,604				16,661					15,493
Cost of revenue:
Product		1,663				785				5,398					5,459
Service		390				446				685					495
Related party		204				624				1,430					1,989
Grant and other		180				457				642					457
Total cost of revenue		2,437				2,312				8,155					8,400
Gross profit		2,001				2,292				8,506					7,093
Operating expenses:
Research and development		11,165				12,631				53,019					45,797
Selling, general and administrative		13,068				14,612				58,950					58,531
Total operating expenses		24,233				27,243				111,969					104,328
Loss from operations		(22,232	)			(24,951	)			(103,463	)				(97,235				)
Other income (expense):
Interest income		4,720				2,498				17,764					4,602
Other expense		(287	)			(73	)			(578	)				(333				)
Total other income		4,433				2,425				17,186					4,269
Net loss	$	(17,799	)		$	(22,526	)		$	(86,277	)			$	(92,966				)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.28	)		$	(0.36	)		$	(1.35	)			$	(1.49				)
Weighted-average common shares outstanding, basic and diluted		64,157,125				62,805,423				63,850,490					62,433,613

        

Seer, Inc. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts)
	December 31,
	2023				2022
ASSETS
Current assets:
Cash and cash equivalents	$	32,499			$	53,208
Short-term investments		283,725				368,031
Accounts receivable, net		4,831				4,315
Related party receivables		559				1,804
Other receivables		1,326				899
Inventory		4,491				4,627
Prepaid expenses and other current assets		3,082				2,098
Total current assets		330,513				434,982
Long-term investments		56,858				5,157
Operating lease right-of-use assets		25,177				27,003
Property and equipment, net		22,193				19,408
Restricted cash		524				524
Other assets		1,004				855
Total assets	$	436,269			$	487,929
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,370			$	2,104
Accrued expenses		9,212				8,298
Deferred revenue		206				133
Operating lease liabilities, current		2,295				1,842
Other current liabilities		139				207
Total current liabilities		13,222				12,584
Operating lease liabilities, net of current portion		25,964				28,032
Other noncurrent liabilities		179				320
Total liabilities		39,365				40,936
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00001 par value; 5,000,000 shares authorized as of December 31, 2023 and 2022; zero shares issued and outstanding as of December 31, 2023 and 2022		—				—
Class A common stock, $0.00001 par value; 94,000,000 shares authorized as of December 31, 2023 and 2022; 60,253,707 and 59,366,077 shares issued and outstanding as of December 31, 2023 and 2022, respectively		1				1
Class B common stock, $0.00001 par value; 6,000,000 shares authorized as of December 31, 2023 and 2022; 4,044,969 shares issued and outstanding as of December 31, 2023 and 2022		—				—
Additional paid-in capital		702,868				667,739
Accumulated other comprehensive loss		(192	)			(1,251	)
Accumulated deficit		(305,773	)			(219,496	)
Total stockholders’ equity		396,904				446,993
Total liabilities and stockholders’ equity	$	436,269			$	487,929

FAQ

What was Seer's revenue for Q4 2023 and how does it compare to Q4 2022?

Seer reported $4.4 million revenue for Q4 2023, a 4% decrease from Q4 2022.

How many instruments did Seer ship in 2023?

Seer shipped 23 instruments in 2023, bringing the total to 62 by December 31, 2023.

What was Seer's net loss for Q4 2023?

Seer reported a net loss of $17.8 million for Q4 2023.

How much cash, cash equivalents, and investments did Seer have as of December 31, 2023?

Seer had approximately $373 million in cash, cash equivalents, and investments as of December 31, 2023.

What is Seer's revenue expectation for full year 2024?

Seer expects full year 2024 revenue to be in the range of $18-20 million, representing a 14% growth over full year 2023.