• Fourth Quarter Revenue: $4 million, a decrease of 10% from $4.4 million in Q4 2023.
• Full Year Revenue: $14.2 million, a decrease of 15% from $16.7 million in 2023.
• Gross Margin (Q4 2024): 51%, up from 45% in Q4 2023.
• Net Loss (Q4 2024): $21.7 million, compared to $17.8 million in Q4 2023.
• Net Loss (Full Year 2024): $86.6 million, compared to $86.3 million in 2023.
• Cash, Cash Equivalents, and Investments: Approximately $300 million as of December 31, 2024.
• Share Repurchase: Approximately 6.5 million shares repurchased, reducing shares outstanding by 10% to 59 million.
• Free Cash Flow Loss (Full Year 2024): $49.4 million, down from $66.4 million in 2023.
• 2025 Revenue Guidance: Expected to be in the range of $17 million to $18 million.

• Warning! GuruFocus has detected 3 Warning Sign with SEER.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Seer Inc (NASDAQ:SEER) reported a total revenue of $14.2 million for 2024, with a strong cash position of approximately $300 million.
• The company successfully repurchased approximately 6.5 million shares, reducing the total shares outstanding by about 10%.
• Seer Inc (NASDAQ:SEER) expanded its global reach, serving over 135 customers across 20 countries, and doubled its commercial team in North America.
• The Proteograph Product Suite has been validated through 33 customer publications, with 23 new peer-reviewed publications in 2024.
• Seer Inc (NASDAQ:SEER) has formed a strategic partnership with Thermo Fisher Scientific to co-market and sell the Proteograph Product Suite, enhancing commercial reach.

Negative Points

• Total revenue for 2024 decreased by 15% compared to 2023, primarily due to lower product sales and no grant revenue.
• The company reported a net loss of $86.6 million for the full year 2024, slightly higher than the $86.3 million loss in 2023.
• Seer Inc (NASDAQ:SEER) experienced a 10% decrease in fourth-quarter revenue compared to the same period in 2023, due to lower instrument sales.
• There is ongoing uncertainty regarding NIH and government funding, which could impact a portion of Seer Inc (NASDAQ:SEER)'s revenue in 2025.
• The company faces challenges with elongated sales cycles and pressure on CapEx budgets, affecting the outright purchase of new instruments.

Q & A Highlights

Q: How should we think about the split between instruments and consumables in 2025, and what is the expected pacing for the first and second half of the year? A: Omid Farokhzad, CEO, noted that 2024 was challenging for CapEx, with instrument placements skewed towards the latter half of the year. For 2025, they anticipate a different pace, with a stronger start due to a robust pipeline. David Horn, CFO, added that the product revenue breakdown will likely mirror 2024, with product revenue comprising about 72% and service revenue 27%. They expect more instrument placements and increased interest in larger projects.

Q: Can you discuss the trajectory of the STAC program and its revenue outlook for 2025? A: Omid Farokhzad explained that the STAC program is not intended to expand into a service company, so capacity will remain consistent. Revenue growth is expected as early collaborations were priced lower, but now projects are priced closer to standard service rates. David Horn added that demand from large pharma and academic customers is strong, with repeat customers and increased ASPs contributing to positive trends.

Q: What impact do NIH funding uncertainties have on your business, and what trends are you seeing with academic customers? A: Omid Farokhzad stated that about 30% of their revenue comes from government and academic entities. While indirect funding cuts could affect broader organizational investments, direct research funding remains intact. They have factored in a cautious outlook for these accounts in their guidance. David Horn noted that uncertainty is causing some delays, but some customers have confirmed their funding and are proceeding.

Q: What does the publication pipeline look like for 2025, and are there any significant projects on the horizon? A: Omid Farokhzad highlighted that customer publications have been a bright spot, with over 30 publications to date. The STAC program facilitates quick data access, aiding in grant writing and presentations. He expects the pace of publications to continue in 2025, with recent conferences showcasing significant research enabled by their technology.

Q: What is the expected impact of the Thermo Fisher collaboration on 2025 guidance, and are there plans for similar partnerships? A: David Horn mentioned that the Thermo Fisher collaboration is being operationalized in Q2 2025, with modest expectations built into the guidance. Omid Farokhzad added that while the Thermo partnership is non-exclusive, they are open to other collaborations to enhance access to their Proteograph technology, with ongoing discussions with other mass spec providers.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.