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2024-01-08
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UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13
or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
January 8, 2024
Standard BioTools Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware |
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001-34180 |
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77-0513190 |
(State or Other Jurisdiction
of Incorporation) |
|
(Commission
File Number) |
|
(I.R.S. Employer
Identification
No.) |
2 Tower Place, Suite 2000 |
South San Francisco, California 94080 |
(Address of Principal Executive Offices) (Zip Code) |
(650) 266-6000
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of
the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Common stock, par value $0.001 per share |
LAB |
Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR
§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ¨
Item 2.02 | Results of Operations and Financial Condition. |
On January 8, 2024, Standard
BioTools Inc. (the “Company”) issued a press release which included information with respect to certain preliminary financial
results of the Company and SomaLogic, Inc. for the three months and fiscal year ended December 31, 2023. The press release is attached
hereto as Exhibits 99.1 and incorporated herein by reference.
Item 7.01 |
Regulation FD Disclosure. |
On January 8, 2024, the
Company updated its investor presentation, which the Company expects to use in connection with general corporate presentations and will
be made available on the Company’s website or distributed by the Company in hardcopy or electronic form. The investor presentation
is attached hereto as Exhibits 99.2 and incorporated herein by reference. The investor presentation is current as of January 8, 2024,
and the Company disclaims any obligation to update the investor presentation after such date.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
The information in this
Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed “filed”
for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to
the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document pursuant
to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: January 8, 2024 |
STANDARD BIOTOOLS INC. |
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|
|
|
By: |
/s/ Jeffrey Black |
|
Name: |
Jeffrey Black |
|
Title: |
Chief Financial Officer |
Exhibit 99.1
Standard BioTools Announces Preliminary Fourth
Quarter and Full Year 2023 Revenue
Achieving scale with pro forma full year 2023
revenue of approximately $192 million
SOUTH SAN FRANCISCO, Calif., January 8, 2024 -- Standard BioTools
Inc. (Nasdaq: LAB) (Standard BioTools or the Company), driven by a bold purpose
– Unleashing tools to accelerate breakthroughs in human health, today announced Standard BioTools and SomaLogic, Inc.
preliminary and unaudited revenue results for the fourth quarter and full year 2023.
Standard BioTools expects fourth quarter 2023 revenue of approximately
$28 million and full year 2023 revenue of approximately $106 million. The Company’s preliminary full year 2023 revenue results represent
growth of over 10% in core revenue1 driven by over 40% growth in instrument revenue, in each case as compared with 2022.
SomaLogic expects fourth quarter 2023 revenue of approximately $23
million and full year 2023 revenue of approximately $86 million.
As previously announced, Standard BioTools completed its merger with
SomaLogic on January 5, 2024. Standard BioTools expects cash, cash equivalents and short-term investments of the combined company
to be over $550 million as of December 31, 2023, on a pro forma condensed combined basis.
Michael Egholm, PhD, President and Chief Executive Officer of Standard
BioTools, said, “With steadfast operating discipline, we continue to make important progress executing against our long-term strategic
transformation plan, and we are excited to move forward as a combined company with SomaLogic. We are pleased that both companies delivered
annual revenues above our stated targets, which we achieved in a challenging macroenvironment, and remain committed to building a scalable,
profitable suite of differentiated life science tools and accelerating breakthroughs in health care.”
Standard BioTools expects to report its fourth quarter and full year
2023 results in early March, at which time the Company will discuss its 2023 financial results in more detail and provide its outlook
for 2024.
The
Company’s and SomaLogic’s unaudited, preliminary 2023 revenue results and unaudited pro forma condensed combined cash, cash
equivalents and short-term investments are based on current expectations and may be adjusted as a result of, among other things, completion
of annual audit procedures. This
financial information does not represent a comprehensive statement of the Company’s or SomaLogic’s financial results for the
fourth quarter or full year 2023 and remains subject to the completion of financial closing procedures and internal reviews.
About Standard BioTools Inc.
Standard BioTools Inc. (Nasdaq:LAB), previously
known as Fluidigm Corporation, is driven by a bold purpose – Unleashing tools to accelerate breakthroughs in human health. Standard
BioTools has an established portfolio of essential, standardized next-generation technologies that help biomedical researchers develop
medicines faster and better. As a leading solutions provider, the Company provides reliable and repeatable insights in health and disease
using its proprietary mass cytometry and microfluidics technologies, which help transform scientific discoveries into better patient outcomes.
Standard BioTools works with leading academic, government, pharmaceutical, biotechnology, plant and animal research, and clinical laboratories
worldwide, focusing on the most pressing needs in translational and clinical research, including oncology, immunology, and immunotherapy.
Learn more at www.standardbio.com or connect with us on Twitter®, Facebook®, LinkedIn, and YouTube™. Standard BioTools,
the Standard BioTools logo, Fluidigm, the Fluidigm logo, “Unleashing tools to accelerate breakthroughs in human health,” Hyperion,
Hyperion XTi, XTi, and X9 are trademarks and/or registered trademarks of Standard BioTools Inc. or its affiliates in the United States
and/or other countries. All other trademarks are the sole property of their respective owners. Standard BioTools products are provided
for Research Use Only. Not for use in diagnostic procedures.
1
Core revenue growth excludes 2022 revenue from discontinued products in the Genomics business. Including the impact of this
revenue, Standard BioTools expects total revenue growth of approximately 8% in 2023 as compared to 2022.
Forward-Looking Statements
This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding future financial
and business performance; expectations, operational and strategic plans; the merger of the Company and SomaLogic; deployment of capital;
market and growth opportunity and potential, and the potential to realize the expected benefits following the merger of the Company and
SomaLogic. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially
from currently anticipated results, including, but not limited to, the outcome of any legal proceedings related to the merger; risks that
the anticipated benefits of the merger or other commercial opportunities may otherwise not be fully realized or may take longer to realize
than expected; risks that we may not realize expected cost savings from our restructuring, including the anticipated decrease in operational
expenses, at the levels we expect; possible restructuring and transition-related disruption, including through the loss of customers,
suppliers, and employees and adverse impacts on our development activities and results of operation; restructuring activities, including
our subleasing plans, customer and employee relations, management distraction, and reduced operating performance; risks that internal
and external costs required for ongoing and planned activities may be higher than expected, which may cause us to use cash more quickly
than we expect or change or curtail some of our plans, or both; risks that our expectations as to expenses, cash usage, and cash needs
may prove not to be correct for other reasons such as changes in plans or actual events being different than our assumptions; changes
in Standard BioTools’ business or external market conditions; challenges inherent in developing, manufacturing, launching, marketing,
and selling new products; interruptions or delays in the supply of components or materials for, or manufacturing of, Standard BioTools products;
reliance on sales of capital equipment for a significant proportion of revenues in each quarter; seasonal variations in customer operations;
unanticipated increases in costs or expenses; uncertainties in contractual relationships; reductions in research and development spending
or changes in budget priorities by customers; uncertainties relating to Standard BioTools’ research and development activities,
and distribution plans and capabilities; potential product performance and quality issues; risks associated with international operations;
intellectual property risks; and competition. For information regarding other related risks, see the “Risk Factors” section
of Standard BioTools’ most recent quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission (the
“SEC”) on November 7, 2023, on its most recent annual report on Form 10-K filed with the SEC on March 14, 2023
and in Standard BioTools’ other filings with the SEC, as well as the “Risk Factors” section of SomaLogic’s most
recent quarterly report on Form 10-Q filed with the SEC on November 8, 2023, on its most recent annual report on Form 10-K
filed with the SEC on March 28, 2023 and in SomaLogic’s other filings with the SEC. These forward-looking statements speak
only as of the date hereof. Standard BioTools disclaims any obligation to update these forward-looking statements except as
may be required by law.
Contacts
Investors
Peter DeNardo
CapComm Partners
ir@standardbio.com
Media
Nick Lamplough / Dan Moore / Tali Epstein
Collected Strategies
LAB-CS@collectedstrategies.com
Exhibit 99.2 | Standard BioTools
Activating a Strategy
to Become a Diversified
Leader in Life Sciences Tools
J A N U A R Y 2 0 2 4 |
| Standard BioTools
Legal Information
2
Forward-looking statements
This presentation contains forward-looking statements that are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements, many of
which are beyond the control of Standard BioTools and SomaLogic. All statements other than statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar
expressions) are statements that could be deemed forward-looking statements, although not all forward-looking statements contain these identifying words. Readers should not place undue reliance on these forward-looking statements.
Forward-looking statements may include statements regarding financial outlook, including related to revenues, margin, and operating expenses; statements regarding future financial performance and expectations, operational and
strategic plans, deployment of capital, cash runway and sufficiency of cash resources, potential M&A activity, potential restructuring plans; and expectations with respect to the merger of Standard BioTools and SomaLogic, including the
expected benefits of the merger, estimations of anticipated cost savings and cash runway, management’s ability to integrate the two companies, the competitive ability and position of the combined company, the success, cost and timing
of the combined company’s product development, sales and marketing, and research and development activities, the combined company’s ability to obtain and maintain regulatory approval for its products, the sufficiency of the
combined company’s cash, cash equivalents and short-term investments to fund operations, and any assumptions underlying any of the foregoing. Statements regarding future events are based on the parties’ current expectations and
are necessarily subject to associated risks and uncertainties related to, among other things, (i) that the merger and subsequent integration may involve unexpected costs, liabilities or delays; (ii) the effect of the completion of the
merger on the ability of Standard BioTools or SomaLogic to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom Standard BioTools or SomaLogic does business, or on Standard
BioTools’ or SomaLogic’s operating results and business generally; (iii) the outcome of any legal proceedings related to the merger or otherwise, or the impact of the merger thereupon; (iv) Standard BioTools or SomaLogic may be
adversely affected by other economic, business and/or competitive factors; (v) the impact of legislative, regulatory, economic, competitive and technological changes; (vi) the risk that the post-closing integration of the merger may not
occur as anticipated or the combined company may not be able to achieve the benefits expected from the merger, as well as the risk of potential delays, challenges and expenses associated with integrating the combined company’s
existing businesses; (vii) exposure to inflation, currency rate and interest rate fluctuations, as well as fluctuations in the market price of Standard BioTools’ traded securities; (viii) the lingering effects of the COVID-19 pandemic on
Standard BioTools’ and SomaLogic’s industry and individual companies, including on counterparties, the supply chain, the execution of research and development programs, access to financing and the allocation of government resources;
(ix) the ability of Standard BioTools or SomaLogic to protect and enforce intellectual property rights; and (x) the unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or
hostilities, as well as Standard BioTools’ and SomaLogic’s response to any of the aforementioned factors. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. For
information regarding other related risks, see the “Risk Factors” section of Standard BioTools’ most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on November 7, 2023, on its most
recent annual report on Form 10-K filed with the SEC on March 14, 2023 and in Standard BioTools’ other filings with the SEC, as well as the “Risk Factors” section of SomaLogic’s most recent quarterly report on Form 10-Q filed with the
SEC on November 8, 2023, on its most recent annual report on Form 10-K filed with the SEC on March 28, 2023 and in SomaLogic’s other filings with the SEC. The risks and uncertainties described above and in the SEC filings cited
above are not exclusive and further information concerning Standard BioTools and SomaLogic and their respective businesses, including factors that potentially could materially affect their respective businesses, financial conditions or
operating results, may emerge from time to time. Readers are urged to consider these factors carefully in evaluating these forward-looking statements, and not to place undue reliance on any forward-looking statements. The parties
undertake no obligation to revise or update any forward-looking statements for any reason.
Non-GAAP financial information
Standard BioTools has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis. The non-GAAP financial measures included in this presentation are non-GAAP gross margin, non-GAAP operating
expenses, adjusted EBITDA, non-GAAP SG&A and non-GAAP R&D . Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as a measure of operating performance because the non-GAAP financial
measures do not include the impact of items that management does not consider indicative of the Company’s core operating performance. Management believes that non-GAAP financial measures, taken in conjunction with GAAP
financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the Company’s core operating results. Management uses non-GAAP
measures to compare the Company’s performance relative to forecasts and strategic plans and to benchmark the company’s performance externally against competitors. Non-GAAP information is not prepared under a comprehensive set
of accounting rules and should only be used to supplement an understanding of the company’s operating results as reported under U.S. GAAP. Standard BioTools encourages investors to carefully consider its results under GAAP, as well
as its supplemental non-GAAP information and the reconciliations between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP operating results are presented in the accompanying
tables of this release.
Trademarks
Standard BioTools, the Standard BioTools logo, Biomark, CyTOF, CyTOF XT, EP1, Helios, Hyperion and Hyperion+ are trademarks and/or registered trademarks of Standard BioTools Inc. (f.k.a. Fluidigm Corporation) or its affiliates in the
United States and/or other countries. SomaLogic, the SomaLogic logo, SomaSignal, SOMAmer, SomaScan, SomaScan by SomaLogic, DataDelve, LabThread LX, CardioDM and Powered by SomaLogic are trademarks and/or registered
trademarks of SomaLogic, Inc. or its affiliates in the United States and/or other countries. All other trademarks are the sole property of their respective owners. |
| 3
Advancing Life
Sciences Research
Diverse portfolio of multi-omic
solutions with highest
throughput and data quality
Applying world-class
leadership’s operating discipline
to create meaningful value
Targeting large, high-growth markets with
differentiated technologies
Tech Leadership Lucrative Markets Proven Model
Capitalizing on significant cross-selling
opportunities and accelerated path to
profitability following SomaLogic merger
Scale Step Change Ahead
Combined company targeting ~$300M revenue and
$80M run-rate synergies(1) by 2026; preliminary
pro forma combined cash, cash equivalents and
short term securities of over $550M as of
12/31/23(2)
Attractive Financial Profile
(1) Compared to annualized non-GAAP opex run-rate based on first half 2023 results. Total cost synergies exclude non-cash, restructuring-related and other non-recurring costs for each of Standard
BioTools and SomaLogic.
(2) Estimated unaudited pro forma condensed combined cash, cash equivalents and short term securities of Standard BioTools and SomaLogic as of December 31, 2023. |
| 4
SBI: Forging the Next Generation of
Leadership in Life Science Tools & Solutions
Capital
Entrenched operating
discipline drives execution
and profitability
Deep industry,
operational &
integration expertise
Backed by leading Life
Sciences investors with
deep capital reserves
Applying necessary building blocks to
build a diversified tools powerhouse
Instruments,
consumables, software
and services
Completed SomaLogic
merger to increase scale
and leverage
Broad ‘omic reach Disciplined M&A
World-class team SBS(1) principles
Differentiated tech
Highest plex, highest data
quality in flow cytometry
& spatial biology
✓
Completed ~$28M SomaLogic Merger
Preliminary Unaudited
Q4’23 Revenue ~$106M Preliminary Unaudited
FY’23 Revenue
>10% core revenue growth(3)
>40% instruments revenue
growth
~20% proteomics revenue
growth
Strong 2023
Progress(2)
(1) SBS = Standard BioTools Business Systems, a culture of continuous improvement to achieve world class operational excellence and exceptional customer value based on LEAN
principles. (2) Revenue and related growth percentages are based on unaudited, preliminary 2023 financial results. (3) Core revenue growth excludes 2022 revenue from discontinued
products in the Genomics business, and each revenue growth figure is as compared to 2022. |
| 5
SomaLogic Powers
Comprehensive Proteomic Insights
~$23M Preliminary Unaudited
Q4’23 Revenue ~$86MPreliminary Unaudited
FY’23 Revenue
191 SomaScan Services customers,
relationships with top biopharma
companies
Blue-Chip Customer Base
Highest plex, highest data quality,
most reliable serum proteome tool
757 clinical publications and
protected by >600 patents
11K SOMAmers measuring 10K
unique proteins from 55-µL sample
(over 2x more than alternatives)
Validated & Patented Proteomics Expertise
Differentiated technology
Scientific brilliance focused on
innovation, partnership, and power
of proteomics
Strong 2023
Progress(1)
~20% core revenue growth(2)
17 authorized sites
Early Customer Access in 2024
(1) Reflects midpoint of preliminary unaudited SomaLogic FY2023 revenue range. (2) Core revenue growth as compared to 2022; Excludes royalty revenue received in 2022. |
| 6
… FEW Built to
Scale Profitably
• Developing, manufacturing,
supporting customers, and
commercializing technology is costly
• Leveraging infrastructure costs
requires deep operating expertise
• Need for sufficient capital
Growth
Profitability
F U T U R E
T O D A Y
L A S T
Y E A R
Scale is crucial to accelerate path to profitability and activate leadership position
Unlocking Value in Fragmented Space
MANY Great Emerging Life Science Tools
Technologies – Highly Fragmented …
T O D A Y
L A S T
Y E A R |
| 7
Leading Multi-Omic Platform
Differentiated throughput, reliability, and data integrity
Hyperion™ XTi
Imaging System
Biomark™ X9 System for
High-Throughput
Genomics
Integrated
fluidic circuit
Maxpar®
assays and kits
Flow Cytometry Spatial Biology
Genomics
Serum Proteome Workstation
SomaScan® Assay
Proteomics Platform
CyTOF® XT™
flow cytometry
High-parameter single-cell
protein analysis system
and related assays
High-plex spatial biology
platform and related assays
for imaging of tissue and cells
High-throughput nanoscale workflow
automation and assay detection
system and related assays
Protein measurement and
identification, proteomics
knowledge and applications |
| 8
Expanded Commercial Reach
Symbiotic customer mix maximizes cross-selling opportunities and expands relationships
End Markets
Offering
Academic research
~65%
Biopharma research
~80%
Services (SomaScan)
Consumables
~85%
Services
Consumables
Instruments |
| 9
Anders Davas
SVP, Global
Operations
Large-Enterprise Operating Expertise
David King, PhD
SVP, Global R&D
Agnieszka Gallagher
SVP, Chief Legal Officer
Michael
Egholm, PhD
Chief Executive Officer
Jeremy Davis
Chief Commercial
Officer
Betsy Jensen
Chief Human
Resources Officer
Alex Kim
Chief Operating
Officer
Mona Abou-Sayed
SVP, SBS
Majority of executive team tenured with industry’s leading consolidators
Jeffrey Black
Chief Financial Officer
Adam Taich
Chief Strategy Officer
Chief Technology
Officer
Shane Bowen Stephen Williams
Chief Medical Officer |
| 10
Preliminary
2023E(1)
(Pro-Forma combined)
Expected Merger
Impacts
2026E
Targets
(Pro-Forma combined)
Revenue ~$192M
Double-Digit
Annual revenue growth
with synergies
$300M+
Non-GAAP gross margin ~54% ~65%
Non-GAAP SG&A % of sales ~90% $80M
Run-rate cost synergies
2023E-2026E(2)
~35%
Non-GAAP R&D % of sales ~35% ~15%
Adjusted EBITDA Negative >10%
Cash balance >$550M
Disciplined
Cash management
~$350M+(3)
Free cash flow ($140M) to ($150M) Positive
Accelerated Path to Scale and Profitability
(1) 2023E revenue based on full year unaudited preliminary revenue pro forma for the combined company. Reflects YTD 2023 adjusted gross margin and non-GAAP SG&A and R&D based
for the nine months ended September 30, 2023 pro forma for the combined company. Reflects estimated cash, cash equivalents and short term securities as of 12/31/23 pro forma
for the combined company. (2) Compared to annualized non-GAAP opex run-rate based on 1H 2023 results. Total cost synergies exclude non-cash, restructuring-related and other
non-recurring costs for each of Standard BioTools and SomaLogic and SomaLogic. (3) Assumes existing Standard BioTools convertible notes are converted to equity at maturity, or
refinanced. |
| 11
Capturing Potential $80M Synergy Opportunity
G&A
S&M
R&D
Elimination of redundant public
company and G&A costs
(Exec., HR, Legal, Finance, IT)
Rationalization of common
commercial infrastructure (Sales,
Marketing, Product Management)
Continue investment, prioritizing
differentiated technologies with
highest probability of sustained,
profitable revenue growth
Substantial early progress with strong 2023 execution
~$40M
~$80M
G&A S&M R&D Total Synergies
vs
current
run rate ~$20M of ~$65M
~$20M
P O T E N T I A L S Y N E R G Y R U N - R A T E
B Y 2 0 2 6 E
Synergy opportunity compared to combined annualized non-GAAP opex run-rate based on 1H 2023 results pro forma for the combined company. Total cost synergies
exclude non-cash, restructuring-related, transaction-related and other non-recurring costs for both Standard BioTools and SomaLogic. |
| 12
Expected Self-Funded Path to Positive Cash Flow
>$550M
Estimated cash, cash equivalents and short term securities of over
$550M as of 12/31/23 pro forma for combined company
• Balance sheet to support continued growth initiatives
• Planned reduction in operating burn through revenue growth, gross margin
expansion and operating cost synergies
• Expanded capacity to self-fund future growth initiatives and accelerate
research insights
• Positive free cash flow expected by 2026
Bolstered balance sheet + operating efficiencies create industry leading capital position |
| 13
Q1 to Q3
2022
Q1 to Q3
2023 YoY
Revenue $71M $78M +10% (+13% core)1
Non-GAAP gross margin 50% 60% +1,000 bps
Non-GAAP operating expense $93M $74M (24%)
Operating cash use $71M $30M (58%)
SBI Operating Track Record
Strong execution maximizing Fluidigm synergies
9 months ended September 30, 2022 vs 9 months ended September 30, 2023 | 1. Revenue growth reflects impact of reduction of $1.6 million in net revenues generated in 2022
related to discontinued product lines in the Genomics business |
| Standard BioTools
Technology Appendix |
| 15
High-Parameter Testing
Is a Challenge With Proteins
Markers
30
Biological
insights
100
75
50
25
0
89Y 110Pd 141Pr 150Nd 161Dy 191lr 209Bi
Fluorescent labels Metal isotopes for mass cytometry vs. Spectral overlap Discrete channels
0 10 20 30 40 50 60
Mass cytometry solves fundamental limitation of fluorescence
Physics
Advantage |
| 16
Flow Cytometry for Translational Research
16
# O F L I N E A G E ( S U R F A C E )
M A R K E R S
5
10
15
25
# F U N C T I O N A L
( I N T R A C E L L U L A R ) M A R K E R S
CyTOF
Today
Competitive moat: the most robust solutions in high parameter market segment
1 20 30 40 50
0
CyTOF
Future
20
Conventional Flow Cytometry
(many players)
R E A L
B I O LO G I CA L
I NS I G H TS
Spectral Flow Cytometry
(multiple players)
Any
combination of
markers |
| 17
Spatial Biology Hyperion XTi
is a Game-Changer
40 Slides | 40 Markers
24 Hours
Throughput: number of slides/day
0.1 1 10 100
HIGH
LOWQuality
Discovery Translational research
Transcript
Profiling
Cycling
High-plex IF
Low-plex
IF*
*IF: immunofluorescence |
| Slow Off-rate
Modified Aptamers
(SOMAmers®)
Thousands of different
SOMAmer® reagents bind to
thousands of individual
proteins in single sample
SOMAmer reagents measured
on colorimetric DNA array
platform to measure relative
protein concentrations
Protein of
interest
Synthetic single-stranded
DNA structures, with
”protein-like” modifications
Proteins discarded
and bound
SOMAmers retained
for final assay step
SomaLogic Proteomic Technology
Somascan® – the world’s most informative proteomic discovery tool
18 |
| Financials Appendix
Nine Months Ended September 30, 2023 |
| 20
Revenue Contribution by Product
• Total revenue growth led by strong instrument
placements in both Proteomics and Genomics
• Growth in instrument placements expands future
consumables and service pull-through revenue, a
significant driver of both revenue and margin growth
• Consumables decline in Q3’23 related primarily to
timing of initial 2022 purchases by OEM partner;
pull-through expected to expand
Q 3 2 0 2 3 Y o Y
Instruments $9M 14%
Consumables $10M (15)%
Service & Other $6M 5%
TOTAL $25M (1)%
Y T D 2 0 2 3 Y o Y
Instruments $27M 47%
Consumables $31M (6%)
Service & Other $20M 5%
TOTAL $78M 10%*
* YTD revenue growth reflects impact of reduction of $1.6 million in net revenues generated in 2022 related to discontinued LCM and COVID product lines in the Genomics
business. Adjusted for these items, YTD revenue growth was 13% | Numbers may not add and percentages may not foot due to rounding
Instrument placements in 2023 set up expanded recurring revenue stream
Consumables,
Services & Other
65%
Instruments
35%
YTD
Revenue
Mix |
| 21
Proteomics
60%
Genomics
40%
Revenue Contribution by Segment
• Quarter-to-quarter variability impacted largely by
timing of customer orders
• YTD growth in Proteomics led by continued traction
of Hyperion XTi, our next-generation imaging
solution
• Managing Genomics through planned transition;
Opex right-sized to breakeven contribution YTD
2023 (vs. $24M loss YTD 2022)
• Macroeconomic conditions continue to be a near-term headwind, but pipeline remains robust
Q 3 2 0 2 3 Y o Y
Proteomics $14M (4%)
Genomics $11M 3% / 5% adjusted*
TOTAL $25M (1)%
Y T D 2 0 2 3 Y o Y
Proteomics $47M 22%
Genomics $31M (4%) / 1% adjusted*
TOTAL $78M 17%
Proteomics driving growth; Genomics on path to positive contribution margin
* Adjusted growth excludes net revenues generated in 2022 related to discontinued LCM and COVID product lines in the Genomics business. | Numbers may not add and
percentages may not foot due to rounding
YTD
Revenue
Mix |
| 22
+ Sales growth
+ Product mix shift
+ Overhead absorption
+ Improved quality / reduced
service and warranty costs
Gross Margin (Non-GAAP)
Q3 2023 YoY
Gross Margin $ $15M +16%
Gross Margin % 57% +830 bps
• YoY GM% increase attributed to product mix, cost
improvements & improved overhead absorption
• Q3 2023 gross margin impacted by increased
reserves for legacy warranty commitments (400 bps)
Numbers may not add and percentages may not foot due to rounding. | Non-GAAP gross margin excludes amortization of developed technology, non-cash stock-based
compensation, and depreciation and amortization. Refer to Appendix for a reconciliation between GAAP and non-GAAP gross margin
YTD 2023 YoY
Gross Margin $ $47M +33%
Gross Margin % 60% +1,020 bps
Executing roadmap to expanded gross margin profile
Non-GAAP Gross Margin Profile
Mid 60%s
+ Lean manufacturing
+ Pricing discipline
– Legacy headwinds
– Product mix
Low 60%s
Today Expansion Opportunity |
| 23
Operating Expenses (Non-GAAP)
Q3
2022
% of
Revenue
Q3
2023
% of
Revenue
R&D $7M 29% $6M 23%
SG&A $22M 87% $19M 74%
Total $30M 116% $25M 97%
• Investing in commercial organization to enhance
service, increase penetration, expand
geographically
• Improved R&D effectiveness and clear roadmap
prioritizing high-growth opportunities
• Continuing to standardize G&A structure;
thoughtfully investing in business support and
infrastructure to foster growth initiatives
Numbers may not add and percentages may not foot due to rounding. | Non-GAAP operating expenses exclude restructuring, non-cash stock-based compensation,
depreciation and amortization, impairment charges, and loss of disposal of property, plant & equipment. Refer to Appendix for a reconciliation between GAAP and non-GAAP
operating expenses
Continuing to standardize organization; prudently investing to facilitate growth
YTD
2022
% of
Revenue
YTD
2023
% of
Revenue
R&D $24M 33% $17M 22%
SG&A $70M 99% $57M 73%
Total $94M 132% $74M 95%
Q3 Non-GAAP Opex $ Reduction: 17%
YTD Non-GAAP Opex $ Reduction: 21% |
| 24
N O N - G A A P R E C O N C I L I A T I O N
Combined Gross Margin
Q1 to Q3 2022 Q1 to Q3 2023
GAAP Gross Profit ($M) $74.3 $64.9
Add: Amortization on Technology in COGS $8.4 $8.4
Add: Depreciation and Amortization in COGS $1.6 $1.9
Add: Stock-Based Comp in COGS $1.4 $1.3
Non-GAAP Gross Profit ($M) $85.8 $76.4
GAAP Gross Margin % 49.6% 46.0%
Add: Amortization on Technology in COGS 5.6% 6.0%
Add: Depreciation and Amortization in COGS 1.1% 1.3%
Add: Stock-Based Comp in COGS 0.9% 0.9%
Non-GAAP Gross Margin % 57.3% 54.2%
Numbers may not add and percentages may not foot due to rounding. | Figures are derived from Condensed Consolidated Statements of Operations as reported in each of
Standard Biotools’ and SomaLogic’s reports on Form 10-Q for the relevant periods. |
| 25
N O N - G A A P R E C O N C I L I A T I O N
Combined R&D Expense
Q1 to Q3 2022 Q1 to Q3 2023
GAAP R&D Operating Expenses ($M) $80.8M $54.4M
Less: Restructuring & related charges in R&D - $0.2M
Less: Stock-based comp in R&D $8.3M $5.8M
Less: Depreciation & amortization in R&D $1.2M $1.2M
Less: Impairment of intangible assets in R&D $3.5M -
Non-GAAP R&D Operating Expenses ($M) $67.7 $47.1
GAAP R&D Operating Expenses % 54.0% 38.6%
Less: Restructuring & related charges in R&D 0.0% 0.2%
Less: Stock-based comp in R&D 5.6% 4.1%
Less: Depreciation & amortization in R&D 0.8% 0.9%
Less: Impairment of intangible assets in R&D 2.4% 0.0%
Non-GAAP R&D Operating Expenses % 45.2% 33.4%
Numbers may not add and percentages may not foot due to rounding. | Figures are derived from Condensed Consolidated Statements of Operations as reported in each of
Standard Biotools’ and SomaLogic’s reports on Form 10-Q for the relevant periods. |
| 26
N O N - G A A P R E C O N C I L I A T I O N
Combined SG&A Expense
Q1 to Q3 2022 Q1 to Q3 2023
GAAP SG&A Operating Expenses ($M) $198.1M $153.8M
Less: Restructuring & related charges in SG&A - $0.8M
Less: Stock-based comp in SG&A $38.5M $18.1M
Less: Depreciation & amortization in SG&A $3.0M $5.4M
Less: Loss on disposal of PP&E $1.1M $0.1M
Non-GAAP R&D Operating Expenses ($M) $155.5M $129.4M
GAAP SG&A Operating Expenses % 132.3% 109.1%
Less: Restructuring & related charges in SG&A 0.0% 0.6%
Less: Stock-based comp in SG&A 25.7% 12.8%
Less: Depreciation & amortization in SG&A 2.0% 3.8%
Less: Loss on disposal of PP&E 0.7% 0.1%
Non-GAAP SG&A Operating Expenses % 103.8% 91.8%
Numbers may not add and percentages may not foot due to rounding. | Figures are derived from Condensed Consolidated Statements of Operations as reported in each of
Standard Biotools’ and SomaLogic’s reports on Form 10-Q for the relevant periods. |
| 27
N O N - G A A P R E C O N C I L I A T I O N
Combined Operating Expenses
Q1 to Q3 2022 Q1 to Q3 2023
GAAP Operating Expenses ($M) $290.7M $219.4M
Less: Restructuring & related charges $5.1M $6.5M
Less: Transaction-related expenses $6.7M $5.8M
Less: Stock-based comp $46.8M $23.9M
Less: Depreciation & amortization $4.3M $6.6M
Less: Impairment of intangible assets $3.5M -
Less: Loss on disposal of PP&E $1.1M $0.1M
Non-GAAP Operating Expenses ($M) $223.1M $176.6M
GAAP Operating Expenses % 194.1% 155.6%
Less: Restructuring & related charges 3.4% 4.6%
Less: Transaction-related expenses 4.5% 4.1%
Less: Stock-based comp 31.3% 16.9%
Less: Depreciation & amortization 2.9% 4.7%
Less: Impairment of intangible assets 2.4% 0.0%
Less: Loss on disposal of PP&E 0.8% 0.1%
Non-GAAP Operating Expenses % 149.0% 125.2%
Numbers may not add and percentages may not foot due to rounding. | Figures are derived from Condensed Consolidated Statements of Operations as reported in each of
Standard Biotools’ and SomaLogic’s reports on Form 10-Q for the relevant periods. |
| 28 28
Q1 to Q3 2022 Q1 to Q3 2023
GAAP Gross Margin % 36.5% 47.5%
Add: Amortization on Technology in COGS 11.9% 10.7%
Add: Depreciation and Amortization in COGS 1.3% 1.3%
Add: Stock-Based Comp in COGS 0.6% 0.8%
Non-GAAP Gross Margin 50.3% 60.3%
SBI Gross Margin % and Op Ex ($M)
N O N - G A A P R E C O N C I L I AT I O N
Q1 to Q3 2022 Q1 to Q3 2023
GAAP Operating Expense ($M) $121.0 $92.3M
Less: Restructuring and related charges $5.1M $5.4M
Less: Transaction-related expenses $3.9M $1.7M
Less: Stock-based compensation expense $12.7M $9.0M
Less: Depreciation and amortization $2.1M $1.9M
Less: Impairment of intangible assets $3.5M -
Less: Loss on disposal of property and equipment $0.2M -
Non-GAAP Operating Expense ($M) $93.5M $74.3M
Numbers may not add and percentages may not foot due to rounding. | Figures are derived from Condensed Consolidated Statements of Operations as reported in each of
Standard Biotools’ and SomaLogic’s reports on Form 10-Q for the relevant periods. |
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