• Revenue of $20.5 million, an increase of 45% year-over-year
• Cash and investments of approximately $474 million, a strong capital position to fund current and future business initiatives
• Reiterating full year 2023 revenue guidance and operating expense target

“Our second quarter results are in line with our expectations despite navigating operational changes and a dynamic macroeconomic backdrop. While our progress this quarter in both core assay services and distributed kits is encouraging, there is still more work to be done,” said Adam Taich, SomaLogic’s Interim Chief Executive Officer. “We have the benefit of a strong cash position, yet remain fully committed to spending discipline and continued operational rationalization to maximize SomaLogic’s long-term position in a growing proteomics market.”

Recent Updates

• Expanded distributed kits offering with additional Authorized Sites, including Citogen and Dante Genomics in Europe
• Advanced development and manufacturing work to support 10k SomaScan assay launch by year-end 2023
• Continued collaboration with Illumina ahead of co-branded next-generation sequencing (NGS)-based proteomics kit early access launch in 2024
• Appointed Eliot Lurier, CPA, to Interim Chief Financial Officer

Second Quarter 2023 Financial Results

Revenue for the three months ended June 30, 2023 was $20.5 million, a 45% increase from $14.1 million in the corresponding period of 2022. Excluding Q2 2022 royalty revenue from NEB, revenue grew 55%.

Gross margin for the three months ended June 30, 2023 was 45.4% compared to 50.0% for the corresponding period of 2022. The decrease was driven by lower royalty revenue.

Research and development expenses decreased by $6.8 million, and selling, general and administrative expenses decreased by $7.2 million in the three months ended June 30, 2023, compared to the corresponding period of 2022. The decrease aligns with the Company’s previously announced expense reduction initiatives with an operating expense target of approximately $170 million for full-year 2023.

Net loss was $24.8 million for the three months ended June 30, 2023, or a loss of $0.13 per share, as compared to a loss of $23.0 million, or $0.13 per share, in the corresponding period of 2022.

Adjusted EBITDA was a loss of $28.9 million for the three months ended June 30, 2023, compared with an adjusted EBITDA loss of $46.4 million in the corresponding period of 2022.

Cash, cash equivalents, and short-term investments were $474.2 million as of June 30, 2023.

2023 Financial Guidance

SomaLogic expects revenue for the full year 2023 to range from $80 to $84 million.

Non-GAAP Financial Measures

We present non-GAAP financial measures in order to assist readers of our condensed consolidated financial statements in understanding the core operating results used by management to evaluate and run the business, as well as, for financial planning purposes. Our non-GAAP financial measure, Adjusted EBITDA, provides an additional tool for investors to use in comparing our financial performance over multiple periods.

Adjusted EBITDA is a key performance measure that our management uses to assess its operating performance. Adjusted EBITDA facilitates internal comparisons of our operating performance on a more consistent basis, and we use this measure for business planning, forecasting, and decision-making. We believe that Adjusted EBITDA enhances an investor’s understanding of our financial performance as it is useful in assessing our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business.

Our Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate this measure in the same manner. Adjusted EBITDA is not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating our performance, you should consider Adjusted EBITDA alongside other financial performance measures prepared in accordance with GAAP, including net loss.