Seer, Inc. ((SEER)) has held its Q4 earnings call. Read on for the main highlights of the call.
Seer, Inc.’s recent earnings call presented a mixed sentiment, highlighting significant achievements in customer engagement, expansion, and innovation. However, these positive aspects were counterbalanced by challenges such as revenue decline, net loss, and macroeconomic pressures. Despite these hurdles, the outlook for 2025 remains optimistic, with expectations of revenue growth and strategic partnerships, although financial pressures and market uncertainties persist.
Strong Customer Engagement and Expansion
Seer, Inc. demonstrated robust customer engagement by serving over 135 customers, including 12 large biopharma companies, across 20 countries. The company also doubled its commercial team in North America, enhancing its market presence. A critical component of this expansion was the Seer Technology Access Center (STAC), which played a pivotal role in broadening access to Proteograph data.
Revenue and Financial Stability
The company concluded the year with $14.2 million in revenue and approximately $300 million in cash, cash equivalents, and investments. Notably, Seer repurchased about 6.5 million shares, reducing the shares outstanding by approximately 10%, indicating a strategic approach to financial stability.
Continued Innovation and Validation
Seer continued to innovate, releasing 23 new peer-reviewed publications in 2024 that highlighted the capabilities of its platform. The company also had multiple preprints in high-impact journals, underscoring its commitment to advancing its technological offerings.
Partnerships and Commercial Strategy
The company expanded its partnership with Thermo Fisher Scientific to co-market and sell the Proteograph product suite. This collaboration is expected to enhance Seer’s commercial reach and enable population-scale studies, further solidifying its market position.
Revenue Decline
Seer experienced a 15% decline in total revenue for the full-year 2024 compared to 2023, primarily due to lower product sales and the absence of grant revenue during the year. This decline highlights the financial challenges the company faces.
Net Loss and Operating Expenses
The net loss for the full-year 2024 was $86.6 million, nearly unchanged from 2023, indicating ongoing financial challenges despite efforts to cut costs. This underscores the need for strategic financial management moving forward.
Instrument Sales Pressure
The fourth quarter of 2024 saw a 10% decrease in total revenue compared to the same period in 2023, attributed to lower instrument sales and no recognized grant revenue. This pressure on sales reflects broader market challenges.
Macro Environment Challenges
Seer continues to face macroeconomic challenges, including pressure on CapEx budgets and elongated sales cycles. Uncertainty over NIH funding is also affecting customer budgets, adding to the company’s financial pressures.
Forward-Looking Guidance
Looking ahead to 2025, Seer forecasts revenue between $17 million and $18 million, a 24% increase over 2024. Despite ongoing macroeconomic uncertainties, including potential NIH funding issues, the company plans to maintain a gross margin range of 50% to 53%. Strategic investments in direct sales and global expansion are expected to enhance access to their Proteograph product suite. Additionally, Seer aims to manage costs effectively to achieve cash flow breakeven, leveraging its substantial cash reserves.
In summary, Seer, Inc.’s earnings call reflected a mixed sentiment, balancing significant achievements in customer engagement and innovation with financial challenges and market uncertainties. The company’s strategic partnerships and optimistic guidance for 2025 provide a hopeful outlook, despite the ongoing pressures it faces.