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SomaLogic Q4 Revenues Drop 19 Percent but Beat Wall Street Estimate

NEW YORK – SomaLogic reported after the close of the market on Tuesday that its fourth quarter 2021 revenues fell 19 percent year over year while full-year revenues rose 46 percent year over year.

For the three months ended Dec. 31, the firm's first full quarter operating as a public company following a September merger with a special purpose acquisition corporation, SomaLogic booked $23.0 million in revenues, beating the consensus Wall Street estimate of $20.4 million. The firm raised $630 million through its SPAC merger.

"2021 was a transformational year for SomaLogic, and we see a long runway to continue executing on our growth plan ahead," CEO Roy Smythe said in a statement.

On a conference call with investors following the release of the results, he noted that the firm "achieved several milestones to augment our platform, capabilities, relationships, and balance sheet." It also grew its marketing team from two to 17 employees.

Assay services revenues for the quarter were $19.7 million, down from $23.7 million a year ago, while product revenues were $547,000, down from $763,000. The firm's collaboration revenues were flat at $763,000, and other revenues were $2.0 million, down from $3.0 million.

"The fourth quarter of 2020 benefited from two, large, one-time events of approximately $9 million combined, as well as slightly higher royalties associated with COVID-19 testing in 2020 relative to the fourth quarter of 2021," SomaLogic CFO Shaun Blakeman noted. "Adjusting for these, we saw approximately 30 percent year-over-year growth for the fourth quarter."

SomaLogic's net loss for the quarter totaled $23.3 million, or $.13 per share, compared to a net loss of $8.9 million, or $.11 per share, in Q4 2020, in line with the consensus Wall Street estimate. The number of weighted average shares of common stock used to compute net loss per share was approximately 181.3 million compared to approximately 77.8 million in Q4 2020. 

The firm reported $11.2 million in R&D expenses for the quarter, up 48 percent from $7.6 million a year ago. Its SG&A expenses nearly tripled to $29.7 million from $10.1 million a year ago.

For the full year, Boulder, Colorado-based SomaLogic reported total revenues of $81.6 million, up 46 percent from $55.9 million in the prior year, beating its preliminary estimate of $79 million and the analyst's average estimate of $79.1 million.

"Revenue growth was driven by significant expansion of our core sales organization, whose efforts led to substantial growth and broadening our customer base," Blakeman said. The firm added 77 new customer accounts in 2021.

The firm's assay services revenues were $68.0 million for the full year, up from $45.8 million a year ago, while product revenues were $1.3 million, down from $1.9 million. Its collaboration revenues were $3.1 million, up from $2.5 million, while other revenues were $9.3 million, up from $5.7 million.

SomaLogic's net loss for the year totaled $87.5 million, or $.64 per share, compared to a net loss of $53.0 million, or $.81 per share, in 2020, missing the consensus Wall Street estimate of a loss of $.59 per share. The number of weighted average shares of common stock used to compute net loss per share was approximately 137.2 million compared to approximately 65.2 million in 2020.

The firm reported $43.5 million in R&D expenses for the year, up 41 percent from $30.7 million a year ago. Its SG&A expenses more than doubled to $78.0 million from $36.9 million in the prior year. Operating expenses increased due to higher headcount as well as "public company readiness," Blakeman said.

As of Dec. 31, SomaLogic had $439.5 million in cash and cash equivalents, and $218.2 million in short-term investments.

For 2022, SomaLogic maintained guidance of total revenues between $105 million and $110 million, representing 29 percent to 35 percent growth over the company's 2021 revenues. Blakeman said the company's first quarter has historically been lighter relative to other quarters. "In 2022, we expect general and administrative and R&D spending to slightly outpace revenue growth," he added.

In Wednesday morning trading on the Nasdaq, shares of SomaLogic were down 3 percent at $8.12.