Seer (SEER) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $3.1 million, down 23% year-over-year, mainly due to lower related party and grant revenue, reflecting ongoing macroeconomic and funding challenges impacting capital equipment purchases.

• Net loss for Q2 2024 was $22.9 million, a slight improvement from $23.4 million in Q2 2023, as the company continues to invest in R&D and commercialization.

• Cash, cash equivalents, and investments totaled $344.6 million as of June 30, 2024, with management expecting sufficient liquidity for at least the next twelve months.

• Significant expansion of sales and marketing teams and operational launch of a new STAC lab in Germany to support European customers.

• Customer-driven publications and studies, including landmark research in oncology and proteogenomics, are driving increased interest and validation of the technology.

Financial highlights

• Product revenue was $2.2 million, service revenue $845,000, and grant/other revenue $46,000 in Q2 2024.

• Gross profit was $1.7 million (56% margin), compared to $2.3 million (57% margin) in Q2 2023.

• Operating expenses were $28.8 million, down 5% year-over-year, including $7.7 million in stock-based compensation.

• Net loss per share was $0.35 for Q2 2024, compared to $0.37 in Q2 2023.

• Free cash flow loss for the first half of 2024 was $22.5 million; cash used in operations improved year-over-year.

Outlook and guidance

• 2024 revenue guidance lowered to $13–$15 million from previous $16–$18 million, reflecting slower recovery and elongated sales cycles.

• Management expects a slower second-half recovery due to continued funding and macroeconomic headwinds.

• Free cash flow loss for 2024 is expected to be less than in 2023.

• Management expects to continue incurring significant expenses and operating losses in the near term as investments in commercialization and R&D continue.

• Current liquidity is expected to be sufficient for at least twelve months; additional capital may be raised for strategic opportunities.