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Seer Q3 Revenues Spike but Firm Misses Wall Street Estimate on Earnings

NEW YORK – Seer reported after the close of the market on Tuesday that its Q3 revenues grew more than thirtyfold year over year.

For the three months ended Sept. 30, the Redwood City, California-based proteomics firm posted revenues of $2.2 million, up from $72,000 in the year-ago period and above the consensus Wall Street estimate of $1.2 million.

Product revenue was $858,000, while service revenue was $500,000 and related party revenue was $787,000. The company posted no product, service, or related party revenue in Q3 2020. Grant revenue was $10,000, down 86 percent from $72,000 in the year-ago period.

During a conference call following release of the company's Q3 results, Omid Farokhzad, Seer's chairman and CEO, said the rise in revenues reflected the increase in the installed base and usage of the company's Proteograph platform. Seer added new users to its limited-release program during the quarter and was on track to meet its goal of placing the system at a "high single-digit" number of sites this year, he said, in anticipation of a broad release in 2022.

David Horn, the company's CFO, said that the $787,000 in related party revenue notched during the quarter represented sales to Seer spinout PrognomIQ, which is using the company's technology for diagnostics development. Seer holds a roughly 19 percent stake in PrognomIQ.

Horn said that the $500,000 in service revenue stemmed from the completion of a service project for a large pharma firm, adding that while Seer did not plan on establishing a service business, it would occasionally enter service arrangements with particular partners in order to "catalyze adoption" of its platform in specific markets or to partner on studies with large institutions with significant clinical assets.

Seer's net loss in the third quarter was $18.4 million, or $.30 per share, compared to $8.2 million, or $.80 per share, in Q3 2020, above the average Wall Street estimate of a loss per share of $.28. Seer used approximately 61.1 million weighted-average shares to calculate per-share loss in the recently completed quarter compared to about 10.3 million shares in the year-ago period. The firm went public in December 2020 in a $175 million IPO.

The company's R&D expenses in Q3 were $7.7 million, up 60 percent from $4.8 million in Q3 2020. General and administrative costs were up threefold to $11.9 million from $3.7 million in the year-ago period.

Seer ended the quarter with $331.4 million in cash and cash equivalents and $175.2 million in investments.

In Wednesday morning trading on the Nasdaq, Seer shares were down 5 percent to $33.58.