SomaLogic Reports First Half of 2021 Financial Results

Rhea-AI Summary

SomaLogic reported strong financial results for the first half of 2021, with revenue hitting $38.6 million, a 188% increase from the prior year. This growth is attributed to a return to fee-for-service offerings and an expanding commercial team. The company's gross margin improved to 63%, up from 44% in 2020. However, operating expenses rose to $58.6 million, reflecting a 39% growth due to sales expansion and R&D efforts. The net loss was $22.8 million, an improvement from $36.6 million in 2020, with cash reserves at $158.2 million.

Positive

• Revenue increased to $38.6 million, up 188% year-over-year.
• Gross margin improved to 63% compared to 44% in the previous year.
• Successful growth strategy with a doubled sales force in 2021.
• Cash reserves of $158.2 million as of June 30, 2021.

Negative

• Operating expenses surged to $58.6 million, a 39% increase from the previous period.
• Net loss of $22.8 million, despite improvement from $36.6 million in 2020.

NEW YORK and BOULDER, Colo., Sept. 08, 2021 (GLOBE NEWSWIRE) -- SomaLogic, Inc., a leader in AI-data driven proteomics technology, today reported financial results for the six months ended June 30, 2021.

“Our strong first half performance reflects our team’s dedication and execution across key drivers of the business as well as the rapidly growing global interest in proteomics products and services,” said Roy Smythe, M.D., SomaLogic’s Chief Executive Officer. “We announced multiple developments in the first half of 2021 to enhance our positioning for the future, including customizable and targeted content protein panels from our industry-leading 7,000-plex assay, a collaboration agreement with Novo Nordisk to support drug development, and formal partnerships with several world-class clinical care and medical research centers. We have doubled our sales force since the beginning of the year and are targeting a substantial ramp into the second half of 2021. The future is bright for SomaLogic.”

First Half 2021 Financial Results

Revenue for the first half of 2021 was $38.6 million, an increase of $25.2 million or 188% compared to the first half of 2020. The increase in revenue was primarily driven by a return to fee-for-service offerings and an expanding commercial development team.

Total cost of revenue for the first half of 2021 was $14.2 million, an increase of $6.8 million, or 91% compared to the first half of 2020. Gross margin for the first half of 2021 increased to 63% compared to 44% in the first half of 2020. The increase in total cost of revenue relative to the corresponding prior year period was primarily driven by an increased manufacturing cost due to higher volumes, net of production efficiencies. The increase in gross margin was primarily driven by an increase in royalty revenue and higher pricing per sample as a result of the reintroduction of the fee-for-service model in 2020.

Operating expenses were $58.6 million for the first half of 2021, compared to $42.2 million in the corresponding prior year period, which represents an increase of 39%. The increase was driven by ongoing sales force expansion and marketing efforts, expanding research and development efforts, investments in processes, tools and infrastructure to support the growth of the business, attracting, hiring and retaining qualified personnel, and protecting and defending intellectual property.

Net loss was $22.8 million in the first half of 2021, or a loss of $0.31 per share, as compared to a loss of $36.6 million, or $0.50 per share, in the corresponding period of the prior year.

Cash, cash equivalents, and short-term investments were $158.2 million as of June 30, 2021.

SomaLogic, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(unaudited, dollars in thousands, except for share and per share amounts)

		Six Months Ended June 30,
		2021				2020
Revenue:
Assay services revenue		$	30,809			$	10,788
Product revenue			655				689
Collaboration revenue			1,525				957
Other revenue			5,651				999
Total revenue			38,640				13,433
Operating expenses:
Cost of assay services revenue			13,811				7,133
Cost of product revenue			419				334
Research and development			16,708				16,296
Selling, general and administrative			27,642				18,418
Total operating expenses			58,580				42,181
Loss from operations			(19,940	)			(28,748	)
Other (expense) income:
Interest income and other, net			71				125
Interest expense			(1,322	)			(7,995	)
Loss on extinguishment of debt, net			(1,630	)			-
Total other expense			(2,881	)			(7,870	)
Net loss			(22,821	)			(36,618	)
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities			8				(20	)
Foreign currency translation gain (loss)			1				(4	)
Total other comprehensive income (loss)			9				(24	)
Comprehensive loss		$	(22,812	)		$	(36,642	)
Net loss per share, basic and diluted		$	(0.31	)		$	(0.50	)
Weighted-average shares used to compute net loss per share, basic and diluted			73,874,501				72,605,744

SomaLogic, Inc.
Condensed Consolidated Balance Sheets
(unaudited, dollars in thousands, except for share and per share amounts)

		As of June 30, 2021				As of December 31, 2020
Assets
Current assets:
Cash and cash equivalents		$	47,138			$	164,944
Investments			111,041				39,954
Accounts receivable, net			13,566				17,449
Inventory			7,662				7,020
Deferred costs of services			1,721				1,450
Prepaid expenses and other current assets			1,728				1,158
Total current assets			182,856				231,975
Non-current inventory			4,888				6,024
Property and equipment, net			4,400				3,913
Other long-term assets			6,279				378
Total assets		$	198,423			$	242,290
Liabilities, redeemable convertible preferred stock and stockholders’ deficit
Current liabilities:
Accounts payable			8,831				7,064
Accrued liabilities			5,604				6,310
Deferred revenue			4,789				1,762
Deferred rent			54				238
Current portion of convertible debt			1,937				-
Current portion of long-term debt			-				2,423
Total current liabilities			21,215				17,797
Convertible debt			-				1,926
Long-term debt			-				32,326
Deferred revenue, net of current portion			2,890				3,415
Other long-term liabilities			459				909
Total liabilities			24,564				56,373
Commitments and contingencies (Note 8)
Redeemable convertible preferred stock, $0.01 par value; 50,000,000 authorized at June 30, 2021 and December 31, 2020; 31,485,973 shares issued and outstanding at June 30, 2021 and December 31, 2020 (aggregate liquidation preference of $213,475 as of June 30, 2021 and December 31, 2020)			202,116				202,116
Stockholders' deficit:
Class A common stock, $0.01 par value; 218,000,000 shares authorized at June 30, 2021 and December 31, 2020; no shares issued and outstanding at June 30, 2021 and December 31, 2020			-				-
Class B common stock, $0.01 par value; 218,000,000 shares authorized at June 30, 2021 and December 31, 2020; 74,817,828 and 73,481,228 shares issued at June 30, 2021 and December 31, 2020, respectively; 74,686,484 and 73,368,008 shares outstanding at June 30, 2021 and December 31, 2020, respectively			748				735
Treasury stock, at cost, 131,344 and 113,220 shares at June 30, 2021 and December 31, 2020, respectively			(408	)			(352	)
Additional paid-in capital			405,583				394,786
Accumulated other comprehensive income (loss)			7				(2	)
Accumulated deficit			(434,187	)			(411,366	)
Total stockholders' deficit			(28,257	)			(16,199	)
Total liabilities, redeemable convertible preferred stock and stockholders' deficit		$	198,423			$	242,290

About SomaLogic

SomaLogic seeks to deliver precise, meaningful, and actionable health-management information that empowers individuals worldwide to continuously optimize their personal health and wellness throughout their lives. This essential information, to be provided through a global network of partners and users, is derived from SomaLogic’s personalized measurement of important changes in an individual’s proteins over time. For more information, visit www.somalogic.com and follow @somalogic on Twitter.

SomaSignal™ tests are developed and their performance characteristics determined by SomaLogic, Inc. SomaLogic is a Clinical Laboratory Improvement Amendments (CLIA) certified, and College of American Pathologists (CAP) accredited laboratory. 

The SomaScan Platform is for Research Use Only (RUO) and has not been cleared or approved by the US Food and Drug Administration for diagnostic or patient management purposes. SomaLogic’s proprietary SomaScan Platform was designed to be a universal platform that can be applied across research and discovery, translational research and biopharmaceutical development, and clinical applications. SomaLogic can run approximately 7,000 protein measurements on a single 55 microliter plasma or serum sample. The Company has run more than 450,000 samples to date.

Forward Looking Statements Disclaimer
This press release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors.  Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including factors which are beyond SomaLogic’s control. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the company’s registration statement. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SomaLogic assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. SomaLogic does not give any assurance that the company will achieve its expectations.

SomaLogic Contact       
Emilia Costales
720-798-5054
ecostales@somalogic.com

Investor Contact
Marissa Bych or Lynn Lewis
Gilmartin Group LLC
investors@somalogic.com

 

FAQ

What were SomaLogic's revenue results for the first half of 2021?

SomaLogic reported revenue of $38.6 million for the first half of 2021, a 188% increase compared to the same period in 2020.

How did SomaLogic's gross margin change in 2021?

SomaLogic's gross margin increased to 63% in the first half of 2021, up from 44% in the first half of 2020.

What is SomaLogic's net loss for the first half of 2021?

The net loss for SomaLogic in the first half of 2021 was $22.8 million, an improvement from a loss of $36.6 million in the same period of the prior year.

How much cash reserves does SomaLogic have as of June 30, 2021?

SomaLogic had cash, cash equivalents, and short-term investments totaling $158.2 million as of June 30, 2021.

What were the key drivers for SomaLogic's revenue growth?

The main drivers for revenue growth included the return to fee-for-service offerings and the expansion of the commercial development team.