Standard BioTools, Inc. Q4 FY2023 earnings call

• Michael Egholm highlighted 2023 as a year of foundation building, with disciplined cost reduction, gross margin expansion, and successful merger with SomaLogic. Top objectives include operational discipline, creating a scaled platform, and fueling growth.
• Jeff Black discussed revenue details, noting 2023 revenue ahead of guidance, gross margin expansion (non-GAAP gross margin up 900 basis points for full year), and operating expenses reduction.
• Adam Taich talked about integration progress, SomaLogic's customer relationships, partnership with Illumina, and menu expansion of SomaScan technology.

In 2023, total revenue was $106.3 million, up nearly 9%. Proteomics revenue was up 21% in the fourth quarter and 22% for the full year, led by the Hyperion XTi. Genomics revenue was down 13% in the fourth quarter and 7% for the full year. Consumables: in proteomics, excluding OEM impact, grew 8%; genomics consumables were impacted by larger orders in 2022. Instruments grew 46% in 2023. Recurring sources of consumables and service revenue were about 64% of total revenue in 2023. Proteomics contributed 21% growth in Q4 and 22% for the full year, genomics had a decline but was near contribution margin positive.

• 2024 revenue guidance: $200 million to $205 million, implying 4%-7% growth.
• Expect $80 million in annual cost synergies by 2026 compared to 2023 first half operating expense run rate. Over 50% of $40 million of annualized target synergies expected to be implemented by end of 2024 Q4.
• Long-term view: Aim for $300 million revenue by end of 2026 with mid-60s non-GAAP gross margins and positive adjusted EBITDA margin.

• Substantial risks and uncertainties affecting forward-looking statements.
• Macro-economic headwinds impacting the life science industry.
• Integration challenges with SomaLogic.
• Lumpy nature of SomaScan services revenue due to its project-based and concentrated nature.
• Price competition in genomics leading to margin pressure.