Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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.
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