Overview of Standard BioTools’ Financial Performance

Standard BioTools, Inc. is a leading provider of life science tools and services. In 2024, the company experienced significant growth and transformation, driven by the completion of its merger with SomaLogic and the acquisition of Sengenics Corporation.

Total revenue for the year ended December 31, 2024 was $174.4 million, a 64% increase compared to 2023. This growth was primarily attributable to the impact of the SomaLogic merger, which expanded Standard BioTools’ proteomics capabilities, products and services. Proteomics revenue, which includes the company’s advanced instrumentation, consumables and lab services, grew 113% to $135.8 million. In contrast, the company’s genomics revenue declined 9% to $38.6 million, as this segment continues to face headwinds.

Despite the top-line growth, Standard BioTools reported a net loss of $138.9 million for the year, compared to a net loss of $74.7 million in 2023. This was driven by a significant increase in operating expenses, including:

• R&D expenses grew 141% to $62.4 million as the company invested in enhancing its technologies and developing new products.
• SG&A expenses increased 79% to $156.6 million, primarily due to the expanded workforce and integration costs following the SomaLogic merger.
• Restructuring and related charges rose 77% to $12.5 million as the company implemented cost-saving initiatives, including a 10% reduction in headcount.
• Transaction and integration expenses surged 331% to $28.0 million due to the merger and Sengenics acquisition.

Factors Driving Performance

Several key factors influenced Standard BioTools’ financial performance in 2024:

Continued Adoption of Products and Services

• The company has a strong base of marquee customers and is focused on winning new contracts and expanding existing relationships. Instrument placements, particularly the SomaScan Authorized Sites program, are expected to drive future growth in consumables and lab services revenue.
• Standard BioTools continues to enhance its proteomics offering through improvements to its instruments and the launch of the LabThread SLX system.

Investments in Growth

• The company is investing significantly in its laboratory infrastructure, commercial capabilities, and R&D to drive future innovation and market expansion.

Cost Reduction Initiatives

• As part of the SomaLogic integration, Standard BioTools is implementing lean manufacturing principles and other cost-saving measures to improve operational efficiency and reduce the cost of goods sold.
• The company is also working to lower the cost of manufacturing its proprietary SOMAmer reagents and transitioning to less expensive DNA readout technologies for the SomaScan assay.

Seasonality

• The company’s revenue can be seasonal, with fluctuations tied to the procurement and budgeting cycles of its government, academic and biopharma customers.

Expansion of Proteomic Content

• Standard BioTools continues to expand the number of protein measurements on its SomaScan platform, now offering 11,000 protein targets. The recent addition of the KREX precision antibody profiling technology further strengthens the company’s proteomics portfolio.

Liquidity and Capital Resources

As of December 31, 2024, Standard BioTools had $292.9 million in cash, cash equivalents and short-term investments, up from $114.9 million at the end of 2023. This increase was primarily due to the $280 million in cash and restricted cash acquired through the SomaLogic merger.

The company’s principal sources of liquidity are its cash balances and short-term investments. Standard BioTools reported a working capital position of $310.0 million at the end of 2024, providing ample resources to fund its operations and growth initiatives.

In 2024, the company used $143.5 million in net cash for operating activities, an increase of $100.2 million compared to 2023. This was driven by the higher global operating costs and losses following the SomaLogic merger.

Investing activities provided $363.2 million in net cash, primarily reflecting the cash acquired in the merger and proceeds from the sale of short-term investments, offset by capital expenditures. Financing activities used $102.6 million in cash, mainly for the repayment of debt and stock repurchases.

Looking ahead, Standard BioTools believes its existing liquidity and capital resources will be sufficient to support its operations for at least the next 12 months. The company continues to evaluate its liquidity position and may seek additional financing through equity or debt offerings if needed to fund future growth initiatives.

Strengths and Weaknesses

Strengths

• Expanded proteomics capabilities and product portfolio following the SomaLogic merger, positioning the company as a leader in this high-growth market
• Diverse customer base including top biopharma companies and leading academic institutions
• Significant investments in R&D to drive innovation and new product development
• Strong liquidity and balance sheet to support growth initiatives

Weaknesses

• Continued decline in the genomics segment, which remains a drag on overall profitability
• High operating costs and integration expenses following the SomaLogic merger, leading to significant net losses
• Reliance on a small number of large customers, making the business vulnerable to changes in customer spending

Outlook and Future Prospects

Despite the near-term financial challenges, Standard BioTools is well-positioned for long-term growth in the life science tools market. The company’s expanded proteomics capabilities, enhanced product portfolio, and investments in R&D are expected to drive increased adoption among biopharma and academic customers.

However, the company faces some near-term headwinds, including the potential impact of reduced federal funding for NIH research, which could negatively affect customer demand and the company’s revenue and cash flow forecasts. Standard BioTools will need to closely monitor these developments and may be required to perform additional impairment analyses on its goodwill and long-lived assets.

Overall, Standard BioTools’ transformation through the SomaLogic merger and Sengenics acquisition positions the company for long-term success, but the integration and cost optimization efforts will need to continue in order to return the business to profitability. Investors will be closely watching the company’s ability to drive revenue growth, improve operational efficiency, and capitalize on the growing demand for advanced proteomics solutions in the life sciences industry.