SomaLogic, Inc.

Good afternoon and welcome to SomaLogic's third quarter 2023 earnings conference call. At this time, all participants are in listening mode. We will be facilitating a question and answer session toward the end of today's call. As a reminder, this call is being recorded for replay purposes. I would now like to call over to Noah Koren with Gilmartin Group Investor Relations for introductory comments.

Thank you. Today, Somalogic released financial results for the quarter ended September 30th, 2023. A copy of the press release is available on the company's website. Before we begin, I'd like to remind you that management will make forward-looking statements during this call within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events results, or performance are forward-looking statements. All forward-looking statements, including, without limitation, those relating to our market opportunity, gross margin, and future financial performance, protein content and database growth, customer base, diagnostic pipeline, expectations for hiring, and growth in our organization are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the risk factor section of our latest Form 10-Q and 10-K filed with the Securities and Exchange Commission. In addition, today's discussion will include references to non-GAAP financial measures including adjusted EBITDA. This non-GAAP measure is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. Please see our press release on file with the SEC as of this afternoon for a reconciliation between GAAP net loss and non-GAAP adjusted EBITDA. This call contains time-sensitive information and is accurate as of the live broadcast today, November 8, 2023. Somalogic disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. And with that, I will now turn the call over to Adam Tate, Interim Chief Executive Officer.

Thanks, Noah. Good afternoon, and thank you for joining Somalogic's third quarter 2023 earnings conference call. I'm pleased to report another solid quarter marked by consistent progress on our commercial initiatives and increased operational rigor throughout the organization. Despite a challenging macroeconomic environment, we achieved third quarter revenue of $22 million, reflecting 14% year-over-year growth when excluding non-recurring licensing revenue that we received in the third quarter of last year. Given our progress, we are raising our full year 2023 revenue expectations, to 82 to 85 million from the prior range of 80 to 84 million. Before turning to our results in more detail, I'd like to highlight our recent merger announcement. In early October, following a comprehensive review of strategic options, we announced our intention to combine in an all-stock merger with Standard BioTools, a leading provider of mass cytometry and microfluidic technologies. The merger establishes a leading platform of multiomic technologies to power research insights across a broad and growing market while expediting Somalogic's path to scale and cash flow breakeven. It expands our commercial reach with cross-selling opportunities and complimentary offerings. We believe the combined business will be positioned to meaningfully accelerate our path to profitability, and we continue to expect the merger to close in the first quarter of 2024. We expect our proxy to be on file shortly, which will provide additional background and details regarding the transaction. Now shifting to our third quarter results, starting with our core SomaScan services offering. Customer retention and acquisition remain the focus of our commercial efforts, and we are finding new ways to validate the therapeutic pipelines of our customers. For example, the recent rise in GLP-1 agonists have increased interest in the use of SomaScan to identify early indications of efficacy across clinical trial candidates. In a recent paper published by Diabetes Care, investigators were able to identify meaningful changes in cardiovascular risk, glucose tolerance, liver fat, body fat, and cardiopulmonary fitness as a result of weight loss intervention by utilizing the SomaScan platform. By attaining an early read on efficacy, pharma investigators can allocate resources to the most promising therapeutic candidates before expensive and time-consuming longitudinal studies are undertaken. This represents just one of the many promises of the SomaScan platform. In the third quarter, we continue to execute on our authorized site strategy. The primary goal of this strategy is to expand the ways in which customers can adopt and utilize SomaScan. We've been especially focused on expansion in Europe and Asia Pacific, as it is often more difficult for customers in those regions to send samples into our world-class services lab in Boulder, Colorado. As we establish more sites and generate higher sample volumes, we expect our authorized sites to offer more predictable and higher margin revenue while reducing sample delivery times for researchers globally. In March, We shared that we had established eight distinct authorized sites, and we committed to doubling that base by year end. As of today, we have 14 sites up and running, and we remain on track to meet our commitment. Turning to progress with Illumina. In the third quarter, we also advanced our effort to grow our distributed business through our partnership with Illumina. The partnership is focused on delivering a co-exclusive, co-branded, NGS-based distributed solution. Our work remains on track, and we continue to expect early access for customers in Q1 of 2024. This joint proteomics product will combine Illumina's market-leading install base and commercial force with the breadth and depth of the SomaScan assay to deliver differentiated insights to researchers across a wide range of customer segments. While attending the American Society of Human Genetics meeting in Washington, D.C. last week, I had the opportunity to speak to a number of prospective customers who were really excited about being able to leverage their Illumina NGS instrumentation to gain deeper proteomic insights in their research. The energy around this effort is palpable, and the level of interest from customers is high. Finally, we are incredibly excited to announce the commercial launch of the 11K SomaScan assay. The new HyPlex platform provides 11,000 total protein measurements and is the largest proteomics offering available on the market. We now have the ability to measure more than half of the human proteome in a single assay. Following the 7K SomaScan offering, our prior core technology, the 11K SomaScan platform is expected to give researchers a considerable edge in the discovery of biomarkers, and drug targets for translational medicine. Proteins make up more than 90% of all known drug targets, and having a broader view of the human proteome provided by this expanded platform gives our customers more opportunities to make unique and novel biological discoveries. The aptamer-based platform retains the previous version's low coefficients of variation, which is the standard measure of reproducibility, versus the 10 to 20 percent in antibody-based platforms. This improves accuracy with fewer, smaller samples, which is often critical in population studies with limited sample volumes. As early innovators in this space, we know that the discovery and development of disruptive therapeutics benefits substantially from a more complete view of the proteome. We look forward to driving adoption of this platform for the benefit of researchers across our customer base. Now, before I turn the call over to Elliot Lurier, our Interim Chief Financial Officer, I'd like to reiterate that we are making strong progress towards our business objectives, and we remain excited for our future as part of the combined company with Standard Biotools. We look forward to the close of our merger and the realization of shareholder value that we can unlock together. With that, I'll turn the call over to Elliot Lurier, our Interim Chief Financial Officer, to review our financials.