Seer Reports Second Quarter 2021 Financial Results

Rhea-AI Summary

Seer, Inc. (Nasdaq: SEER) reported significant growth in Q2 2021, with revenues surging to $1.3 million from $71,000 in Q2 2020, driven by sales of the Proteograph Product Suite. The company booked initial revenue and expanded its customer base, including its first international client, while entering the Chinese market through a partnership with Enlight Medical. However, operating expenses increased to $17.4 million, resulting in a net loss of $16.6 million. As of June 30, 2021, Seer held approximately $518 million in cash and investments.

Positive

• Revenue increased to $1.3 million in Q2 2021 from $71,000 in Q2 2020.
• Proteograph Product Suite installed at multiple sites, including first international customer.
• Achieved initial revenue bookings for the Proteograph Product Suite.
• On track for a high single-digit number of Limited Release customers in 2021.
• Entering the Chinese market through a partnership with Enlight Medical.

Negative

• Operating expenses rose to $17.4 million in Q2 2021, up from $6.4 million year-over-year.
• Net loss increased to $16.6 million in Q2 2021 compared to $6.1 million in the prior year.

Expanded installed base and booked initial revenue for Proteograph Product Suite

REDWOOD CITY, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Seer, Inc. (Nasdaq: SEER), a life sciences company commercializing a disruptive new platform for proteomics, today reported financial results for the second quarter ended June 30, 2021.

“I am incredibly proud of our team and the strides we are making to transform proteomics and empower the scientific community,” said Omid Farokhzad, Chair and Chief Executive Officer. “The performance of the Proteograph Product Suite in customers’ hands has exceeded our expectations, and I am excited about the early data they are generating. This strong progress further substantiates our belief that Seer’s technology will open up a new gateway to the proteome and advance our understanding of biology.”

Recent Highlights

• Shipped and installed the Proteograph Product Suite to additional sites, including the first international customer
• Booked initial revenue for the Proteograph Product Suite
• Made strong progress in the Limited Release phase of commercialization; on track to achieve a high single digit number of Limited Release customers in 2021
• Continued to see momentum in the market with early customers excited by their data, submitting abstracts, preparing for peer-reviewed publications, and securing funding for larger studies
• Accelerated entry into the Chinese market through a new distribution partnership with Enlight Medical
  

Second Quarter 2021 Financial Results

Revenue was $1.3 million for the three months ended June 30, 2021, as compared to $71,000 for the three months ended June 30, 2020. The increase was the result of commencement of sales of our Proteograph Product Suite and services performed for PrognomIQ. Product revenue was $837,000, related party revenue was $380,000, and grant revenue was $117,000.

Gross profit, inclusive of grant revenue, was $748,000 and gross margin was 56% for the second quarter of 2021.

Operating expenses were $17.4 million for the second quarter of 2021, as compared to $6.4 million for the corresponding prior year period. The increase in expenses was driven by increased compensation, benefit and stock-based compensation expense associated with an increase in personnel, and an increase in costs associated with becoming a publicly traded company.

Net loss was $16.6 million for the second quarter of 2021, as compared to $6.1 million for the corresponding prior year period.

Cash, cash equivalents and investments were approximately $518 million as of June 30, 2021.

Webcast Information

Seer will host a conference call to discuss the second quarter 2021 financial results on Thursday, August 12, 2021 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 up a new gateway to the proteome. Seer is commercializing its Proteograph Product Suite, 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 adopted 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 the Company’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 the Company’s actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements, including but not limited to statements regarding our timing and ability to enable unbiased, deep and rapid proteomics available at scale, the number of Limited Release customers achieved in 2021, and plans to enter the China market. These and other risks are described more fully in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s Quarterly Report on Form 10-Q, to be filed with the SEC on August 12, 2021, and other documents the Company subsequently files with the SEC from time to time. Except to the extent required by law, the Company 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:
Karen Possemato
pr@seer.bio

Seer, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
	2021				2020				2021				2020
Revenue:
Product	$	837			$	—			$	837			$	—
Related party	380				—				380				—
Grant	117				71				179				248
Total revenue	1,334				71				1,396				248
Cost of revenue:
Product	504				—				504				—
Related party	82				—				82				—
Total cost of revenue	586				—				586				—
Gross profit	748				71				810				248
Operating expenses:
Research and development	6,935				4,536				13,162				8,758
Selling, general and administrative	10,484				1,902				20,816				3,682
Total operating expenses	17,419				6,438				33,978				12,440
Loss from operations	(16,671		)		(6,367		)		(33,168		)		(12,192		)
Other income (expense):
Interest income	55				250				123				582
Total other income (expense)	55				250				123				582
Net loss	$	(16,616	)		$	(6,117	)		$	(33,045	)		$	(11,610	)
Other comprehensive loss:
Unrealized gain (loss) on available-for-sale securities	(62		)		(255		)		(88		)		278
Comprehensive loss	$	(16,678	)		$	(6,372	)		$	(33,133	)		$	(11,332	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.27	)		$	(0.63	)		$	(0.55	)		$	(1.25	)
Weighted-average common shares outstanding, basic and diluted	60,841,657				9,718,393				60,367,433				9,320,520

Seer, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

	June 30,					December 31,
	2021					2020
ASSETS
Current assets:
Cash and cash equivalents	$	370,675				$	333,585
Investments	147,098					98,278
Accounts receivable, net	896					—
Related party receivables	439					99
Other receivables	340					163
Inventory	2,670					551
Prepaid expenses and other current assets	3,208					452
Total current assets	525,326					433,128
Property and equipment, net	10,776					8,441
Restricted cash	524					343
Other assets	423					407
Total assets	$	537,049				$	442,319
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,602				$	2,115
Accrued expenses	5,590					5,147
Accrued research and development	490					396
Deferred revenue	445					250
Deferred rent, current	228					186
Total current liabilities	8,355					8,094
Deferred rent, net of current portion	2,248					1,899
Other noncurrent liabilities	402					717
Total liabilities	11,005					10,710
Commitments
Stockholders’ equity:
Preferred stock, $0.00001 par value; 5,000,000 shares authorized as of June 30, 2021 and December 31, 2020; zero shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively;	—					—
Class A common stock, $0.00001 par value; 94,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 56,722,925 and 53,395,319 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively;	1					1
Class B common stock, $0.00001 par value; 6,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 4,700,338 and 5,865,732 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively;	—					—
Additional paid-in capital	614,483					486,915
Accumulated other comprehensive income (loss)	(34		)			54
Accumulated deficit	(88,406		)			(55,361		)
Total stockholders’ equity	526,044					431,609
Total liabilities and stockholders’ equity	$	537,049				$	442,319

FAQ

What were Seer's Q2 2021 revenue figures?

Seer reported revenue of $1.3 million for Q2 2021.

How much did Seer's net loss increase in Q2 2021?

Seer's net loss increased to $16.6 million in Q2 2021.

What is the Proteograph Product Suite?

The Proteograph Product Suite is Seer's new platform aimed at transforming proteomics.

Who is Seer's first international customer?

Seer has not disclosed the name of its first international customer.

What are Seer's plans for the Chinese market?

Seer has entered the Chinese market through a new distribution partnership with Enlight Medical.