8-K
STANDARD BIOTOOLS INC. (LAB)
UNITED STATES
SECURITIES AND EXCHANGECOMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported):January 13, 2025
Standard BioTools Inc.
(Exact Name of Registrant as Specified in Charter)
| Delaware | 001-34180 | 77-0513190 |
|---|---|---|
| (State or Other Jurisdiction<br><br><br>of Incorporation) | (Commission <br><br>File Number) | (I.R.S. Employer <br><br>Identification No.) |
| 2 Tower Place**, Suite 2000** | ||
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| South San Francisco**, California** 94080 | ||
| (Address of Principal Executive Offices) (Zip Code) |
(650) 266-6000
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $0.001 per share | LAB | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. |
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On January 13, 2025, Standard BioTools Inc. (the “Company”) issued a press release and updated its investor presentation, as described further below, which included information with respect to certain preliminary financial results of the Company for the three months and fiscal year ended December 31, 2024. The press release and investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated herein by reference. The Company’s preliminary financial results are unaudited and based on current expectations and may be adjusted as a result of, among other things, completion of annual audit procedures. This financial information does not represent a comprehensive statement of the Company’s financial results for the three months or fiscal year ended December 31, 2024 and remains subject to the completion of financial closing procedures and internal reviews.
| Item 7.01 | Regulation FD Disclosure. |
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On January 13, 2025, the Company updated its investor presentation, which the Company expects to use in connection with general corporate presentations and will be made available on the Company’s website or distributed by the Company in hardcopy or electronic form. The investor presentation is attached hereto as Exhibit 99.2 and incorporated herein by reference. The investor presentation is current as of January 13, 2025, and the Company disclaims any obligation to update the investor presentation after such date.
| Item 9.01 | Financial Statements and Exhibits. |
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(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release issued by Standard BioTools Inc., dated January 13, 2025. |
| 99.2 | Investor Presentation of Standard BioTools Inc., dated January 13, 2025. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: January 13, 2025 | STANDARD BIOTOOLS INC. | |
|---|---|---|
| By: | /s/ Alex Kim | |
| Name: | Alex Kim | |
| Title: | Chief Financial Officer |
Exhibit 99.1
Standard BioTools Announces Preliminary FourthQuarter and Full Year 2024 Revenue
Preliminary, unaudited revenue for the fullyear 2024 of approximately $174 million
Presenting at the 43^rd^ Annual J.P.Morgan Healthcare Conference on Thursday, January 16th, 2024, at 9:45 a.m. PT.
SOUTH SAN FRANCISCO, Calif., January 13, 2025 -- Standard BioTools Inc. (NASDAQ: LAB) (“Standard BioTools” or the “Company”) today announced preliminary and unaudited revenue results for the fourth quarter and full year 2024. Standard BioTools expects fourth quarter 2024 revenue of approximately $46.5 million and full year 2024 revenue of approximately $174 million.
"The team worked hard in a difficult environment to deliver on the top end of our revised annual guidance forecast, adjusted in the second quarter to account for the ongoing and industry-wide headwinds” said Michael Egholm, PhD, Chief Executive Officer of Standard BioTools. “We also made significant progress reducing our operating expenses by implementing Standard BioTools Business Systems (“SBS”), but work remains and demands renewed commitment to discipline and continuous improvement.”
Mr. Egholm continued, “Guided by SBS, 2025 will see us realize even more efficiencies from integration, including benefits to R&D as we move past the technical debt inherited from both companies. Consolidations are difficult but our ability to acquire and integrate is clear. It is also clear that now is the time for Standard BioTools to leverage this foundation, organically and inorganically, to scale and shift revenues towards high-margin offerings and attractive end markets.”
“The train has now left the station, with a well-timed, well-capitalized strategy, and a world-class team to deliver long-term value to shareholders and customers alike. The best part of the journey is ahead. "
Standard BioTools plans to report its fourth quarter and full year 2024 financial results later this quarter, at which time the Company will discuss its 2024 financial results in more detail and provide its outlook for 2025.
The Company’s unaudited, preliminary 2024 revenue results are based on current expectations and may be adjusted as a result of, among other things, completion of annual audit procedures. This financial information does not represent a comprehensive statement of the Company’s financial results for the fourth quarter or full year 2024 and remains subject to the completion of financial closing procedures and internal reviews.
About Standard BioTools Inc.
Standard BioTools Inc. (Nasdaq: LAB), has an established portfolio of essential, standardized next-generation technologies that help biomedical researchers develop medicines faster and better. As a leading solutions provider, the company provides reliable and repeatable insights in health and disease using its proprietary SomaScan, mass cytometry and microfluidics technologies, which help transform scientific discoveries into better patient outcomes. Standard BioTools works with leading academic, government, pharmaceutical, biotechnology, plant and animal research and clinical laboratories worldwide, focusing on the most pressing needs in translational and clinical research, including oncology, immunology and immunotherapy. Learn more at standardbio.com or connect with us on X, Facebook®, LinkedIn, and YouTube™.
For Research Use Only. Not for use in diagnostic procedures.
Limited Use Label License and other terms may apply: standardbio.com/legal/salesterms.
Patent and License Information: standardbio.com/legal/notices.
Trademarks: standardbio.com/legal/trademarks. Any other trademarks are the sole property of their respective owners. ©2024 Standard BioTools Inc. (f.k.a. Fluidigm Corporation). All rights reserved
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding future financial and business performance, including with respect to future revenue, net loss and adjusted EBITDA; operational and strategic plans; deployment of capital; market and growth opportunity and potential; and the potential to realize the expected benefits and synergies of prior and potential future acquisitions, including the potential for such transactions to drive long-term profitable growth. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from currently anticipated results, including, but not limited to, risks that the anticipated benefits and synergies of prior and potential future acquisitions and the integration of any such businesses, including the potential for such transactions to drive long-term profitable growth, may not be fully realized or may take longer to realize than expected; risks that the Company may not realize expected cost savings from such transactions; possible integration, restructuring and transition-related disruption resulting from such transactions, including through the loss of customers, suppliers, and employees and adverse impacts on the Company’s development activities and results of operation; integration and restructuring activities, including customer and employee relations, management distraction, and reduced operating performance; risks that internal and external costs required for ongoing and planned activities may be higher than expected, which may cause the Company to use cash more quickly than it expects or change or curtail some of the Company’s plans, or both; risks that the Company’s expectations as to expenses, cash usage, and cash needs may prove not to be correct for other reasons such as changes in plans or actual events being different than our assumptions; changes in the Company’s business or external market conditions; challenges inherent in developing, manufacturing, launching, marketing, and selling new products; interruptions or delays in the supply of components or materials for, or manufacturing of, the Company’s products; reliance on sales of capital equipment for a significant proportion of revenues in each quarter; seasonal variations in customer operations; unanticipated increases in costs or expenses; continued or sustained budgetary, inflationary, or recessionary pressures; uncertainties in contractual relationships; reductions in research and development spending or changes in budget priorities by customers; uncertainties relating to the Company’s research and development activities, and distribution plans and capabilities; potential product performance and quality issues; risks associated with international operations; intellectual property risks; and competition. For information regarding other related risks, see the “Risk Factors” section of the Company’s annual report on Form 10-K filed with the SEC on March 1, 2024, and in the Company’s other filings with the SEC. These forward-looking statements speak only as of the date hereof. The Company disclaims any obligation to update these forward-looking statements except as may be required by law.
Investor Contact
David Holmes
Gilmartin Group LLC
ir@standardbio.com
Exhibit 99.2
| Setting Standards<br>Empowering Research<br>Building Shareholder Value<br>Investor Presentation<br>January 2025 |
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| Legal Information<br>2<br>Forward-looking statements<br>This presentation contains forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. All statements other<br>than statements of historical fact \(including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates”, “targets” and similar expressions\) are statements that could be deemed forward-looking statements,<br>although not all forward-looking statements contain these identifying words. Readers should not place undue reliance on these forward-looking statements. Forward-looking statements may include statements regarding financial outlook and<br>business performance, including related to revenues, net loss and adjusted EBITDA, growth, margin and operating expenses; statements regarding future financial performance and expectations, operational and strategic plans, deployment of<br>capital, cash runway and sufficiency of cash resources, potential market and growth opportunities, and future potential M&A activity; the potential to realize the expected benefits of prior and potential future acquisitions, our 2025 and 2026<br>financial targets, including with respect to revenue, non-GAAP gross margin, non-GAAP gross profit, non-GAAP operating expenses, adjusted EBITDA, cash, and free cash flow; the competitive ability and position of the company, the success, cost<br>and timing of the company’s product development, sales and marketing, and research and development activities, the company’s ability to obtain and maintain regulatory approval for its products, the sufficiency of the company’s cash, cash<br>equivalents and short-term investments to fund operations, and any assumptions underlying any of the foregoing. Statements regarding future events are based on the parties’ current expectations and are necessarily subject to associated risks<br>and uncertainties related to, among other things, the outcome of any legal proceedings related to the merger; risks that the anticipated benefits of the merger or other commercial opportunities may otherwise not be fully realized or may take<br>longer to realize than expected; risks that we may not realize expected cost savings from our restructuring plans, including the anticipated decrease in operational expenses, at the levels we expect; possible restructuring and transition-related<br>disruption, including through the loss of customers, suppliers, and employees and adverse impacts on our development activities and results of operation; restructuring activities, including our subleasing plans, customer and employee<br>relations, management distraction, and reduced operating performance; risks that internal and external costs required for ongoing and planned activities may be higher than expected, which may cause us to use cash more quickly than we<br>expect or change or curtail some of our plans, or both; risks that our expectations as to expenses, cash usage, and cash needs may prove not to be correct for other reasons such as changes in plans or actual events being different than our<br>assumptions; our ability to achieve future financial targets; changes in our business or external market conditions; challenges inherent in developing, manufacturing, launching, marketing, and selling new products; interruptions or delays in the<br>supply of components or materials for, or manufacturing of, our products; reliance on sales of capital equipment for a significant proportion of revenues in each quarter; seasonal variations in customer operations; unanticipated increases in<br>costs or expenses; continued or sustained budgetary, inflationary, or recessionary pressures; uncertainties in contractual relationships; reductions in research and development spending or changes in budget priorities by customers;<br>uncertainties relating to our research and development activities, and distribution plans and capabilities; potential product performance and quality issues; risks associated with international operations; intellectual property risks; and<br>competition. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. For information regarding other related risks, see the “Risk Factors” section of our most recent annual report<br>on Form 10-K filed with the SEC on March 1, 2024. We undertake no obligation to revise or update any forward-looking statements for any reason.<br>Non-GAAP financial information<br>Standard BioTools has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis. The non-GAAP financial measures included in this presentation are non-GAAP gross margin, non-GAAP gross profit, non-GAAP operating expenses, and adjusted EBITDA. Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as a measure of operating performance because the non-GAAP financial measures do not include<br>the impact of items that management does not consider indicative of the Company’s core operating performance. Management believes that non-GAAP financial measures, taken in conjunction with GAAP financial measures, provide useful<br>information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the Company’s core operating results. Management uses non-GAAP measures to compare the Company’s performance<br>relative to forecasts and strategic plans and to benchmark the company’s performance externally against competitors. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to<br>supplement an understanding of the company’s operating results as reported under U.S. GAAP. Standard BioTools encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the<br>reconciliations between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP operating results are presented in the accompanying tables of this presentation.<br>Trademarks<br>Standard BioTools, the Standard BioTools logo, Biomark, CyTOF, CyTOF XT, EP1, Helios, Hyperion, Hyperion+ and SomaScan are trademarks and/or registered trademarks of Standard BioTools Inc. \(f.k.a. Fluidigm Corporation\)or its affiliates in<br>the United States and/or other countries. All other trademarks are the sole property of their respective owners.<br>Standard BioTools products are provided for Research Use Only. Not for use in diagnostic procedures. |
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| Standard BioTools 3<br>OUR APPROACH<br>Operate as OWNERS, act like INVESTORS<br>“Increase ROI, Diversify Risk & Generate Returns”<br>Focus on EFFICENCY to grow PROFITS<br>“Without Margin, there is no Mission”<br>Offer SOLUTIONS that enable<br>“We are a business not a technology or 'omics application” |
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| Strategy: Attract, Consolidate, Operate<br>Amass Talent, Build a Diversified Solutions Leader, Deliver Operational Excellence<br>Consolidate: High-Value Products & Solutions<br>targeting High-Growth, High-Margin, End- Markets<br>Talent recruited from all the leading Life<br>Science Companies + ~200 yrs of experience<br>Two acquisitions, $174M FY '24 revenue<br>and $311M Q3’24 net-cash to target new M&A1,2<br>Leverage: Standard BioTools Systems \(SBS\) to Drive<br>Business Execution, Efficiency, and Profitability<br>$100M in operationalized cost reduction<br>across the two acquisitions3<br>, targeting<br>adjusted EBITDA positive in 2026<br>4<br>Assemble: Team of World Class Leaders focused on<br>Delivering Shareholder Return<br>1Net cash as of Q3 '24; Cash net of convertible debt that was paid off on November 29, 2024<br>2The unaudited, preliminary 2024 financial results presented above, including revenue, gross margin for FY 2024 and cash and cash equivalents as of December 31, 2024, are based on current expectations and may be adjusted as a result of, among other things,<br>completion of annual audit procedures. This financial information does not represent a comprehensive statement of the Company’s financial results for Q4 or FY 2024 and remains subject to the completion of financial closing procedures and internal reviews.<br>3This refers to the Fluidgm and Somalogic acquisitions |
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| Michael Egholm, PhD<br>Chief Executive Officer<br>Experience:<br>• Danaher<br>• Pall<br>• Roche<br>Alex Kim<br>Chief Financial Officer<br>Experience:<br>• Danaher<br>• Pall<br>• Milliken<br>Sean Mackay<br>Chief Business Officer<br>Experience:<br>• IsoPlexis<br>• PhenomeX<br>• Lazard<br>Agnieszka Gallagher<br>SVP, Chief Legal Officer<br>Experience:<br>• Sandoz<br>• Alnylam<br>• GSK<br>Betsy Jensen<br>Chief H.R. Officer<br>Experience:<br>• Danaher<br>• Gibraltar<br>• ITW<br>Stephen Williams, MD PhD<br>Chief Medical Officer<br>Experience:<br>• Somalogic<br>• Pfizer<br>• NIH<br>Leadership: Bring Operational Experience to Business of Science<br>David King, PhD<br>SVP, Global R&D<br>Experience:<br>• IntegenX<br>• Affymetrix<br>• Guava<br>Mona Abou-Sayed<br>SVP, SBS<br>Experience:<br>• Mitel<br>• Danaher<br>• Tektronix<br>Anders Davas<br>SVP, Global Operations<br>Experience:<br>• Danaher<br>• Mölnlycke<br>• Telair<br>5 |
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| CONSUMABLES<br>INSTRUMENTS<br>SERVICES<br>Tactics: Climb the Value PYRAMID, Expand the Customer PIE<br>ACADEMIC<br>$13B1<br>BIOPHARMA<br>$27B1<br>CURRENT \(Q3 YTD\) PRODUCT MIX<br>CONSUMABLES<br>INSTRUMENTS<br>SERVICES<br>FUTURE PRODUCT MIX2<br>53%\*<br>Q3 YTD<br>GROSS<br>MARGINS<br>65%<br>TARGET<br>GROSS<br>MARGINS<br>CURRENT END MARKETS<br>1Management estimate 2Anticipated<br>BIOPRODUCTION<br>$22B1<br>APPLIED & INDUSTRIAL<br>$10B1<br>PHARMA<br>ACADEMIC & & BIOTECH<br>GOVERNMENT<br>$27B1<br>$13B1<br>FUTURE END MARKETS<br>CLINICAL<br>$40B1<br>35%\*<br>16%\*<br>49%\*,\*\*<br>APPLIED &<br>INDUSTRIAL<br>$10B1<br>• APPLYING M&A to add products,<br>customers, and end-markets<br>• TARGETING consumables with higher<br>margins at top of pyramid<br>• FOCUSING on instruments with high<br>pull through relative to ASP<br>• EXPANDING service offerings to<br>increase technology adoption<br>CLIMB UP TOWARDS MARGIN<br>EXPAND FOR TAM & GROWTH<br>6<br>\*Non-GAAP gross margin excludes amortization of developing technology, non-cash stock-based compensation, and depreciation and amortization. Refer to Appendix for a reconciliation between GAAP and non-GAAP gross margin<br>\*\*Includes 2% of other revenue |
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| Environment Needing a Partner Like Standard BioTools<br>Emerging Life Science Tools & Biopharma Markets Difficulties Create Consolidation Opportunity<br>$0<br>$10<br>$20<br>$30<br>$40<br>$50<br>$60<br>Jan '22 Jan '23 Jan '24 Jan '25<br>Avg. Share Price<br>Valuation & Sales Decreases in LS Tools1<br>1Average share price of 13 emerging life sciences companies<br>7% revenue<br>decrease in '23,<br>and 9% decrease<br>through Q3 '24<br>80%<br>decrease in<br>valuation<br>Private Tools Financing Activity Down3 Public Tools Equity Financing Dried Up2<br>$0.0<br>$2.0<br>$4.0<br>$6.0<br>$8.0<br>$10.0<br>$12.0<br>$14.0<br>$16.0<br>2021 2022 2023 2024<br> $-<br> $5<br> $10<br> $15<br>0<br>10<br>20<br>30<br>40<br>50<br>2021 2022 2023 2024<br># IPOs # FOs # RDs Total \($B\)<br>‘24 equity issuance<br>\($\) down 93%<br>compared to ‘21<br>$14B<br>$1B $1B<br>$1B<br>Venture investment<br>activity down 53%<br>compared to ‘21<br>Standard BioTools has the platform to consolidate life science tools companies facing these challenges, under one channel, to<br>create broader value to customers and return to shareholders.<br>2Cowen<br>$ in billions<br>7<br>3HSBC |
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| M&A Pipeline: Disciplined Criteria and Filling Funnel<br>8<br>Consumables Instrument<br>Services<br>DIVERSIFIES PRODUCT MIX & END MARKET<br>• High margin recurring consumables<br>• Diversified product mix<br>• Growth in pharma and new end markets<br>DE-RISKED TECHNOLOGY<br>• Science fully understood<br>• Deployable product<br>PATH TO COMMERCIALIZATION<br>• Clear unmet need & product market fit<br>• Rigorously validated<br>• Systematic VOC work<br>SBS SYNERGIES<br>• Accelerate Sales/Adoption<br>• Leverage global scale<br>• Ops and Manufacturing<br>Academic<br>Pharma<br>Applied/Ag/Industrial<br>PRIMARY END MARKET<br>Bioprocessing<br>Clinical<br>M&A FOCUS & CRITERIA |
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| • 32% improvement in adjusted EBITDA YTD Q3 2024<br>• 98% on time delivery Q4 2024 vs 78% Q4 2022<br>• 4+ fold Reduction in complaints FY 2024 vs FY 2022<br>APPLYING SBS TO DRIVE IMPROVEMENT<br>Acquire Smartly, Consolidate Quickly, Leverage SBS to Deliver Value<br>TARGETING ASSETS WITHROI<br>• Identify high-value solutions capable of lifting off from prior<br>years of costly R&D investments<br>• Leverage Standard BioTools Business Systems \(SBS\), and<br>its Lean Practices and Continuous improvement \(Kaizen\) to<br>improve reliability and profitability<br>• Deliver quality improvement & cost saving opportunities to<br>drive better customer outcomes post-acquisition<br>9<br>SBS FLYWHEEL<br>New Asset<br>LEAN TRANSFORMATION:<br>Realizing value through reduction in<br>cost-per-unit<br>KAIZEN<br>Continuously<br>Improve on margin &<br>customer delivery<br>CUSTOMER CENTRICITY<br>Deliver service and quality systems<br>on demand to customers<br>Value |
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| 10<br>Fluidigm Case Study: Improving KEY Operational and Financial Metrics<br>STRATEGIC RATIONALE<br>• Company had spent ~$900M of cash prior to acquisition, and despite 20+ years of<br>operations, declining sales and extensive operating losses.<br>• Attractive jumping off point and an instrument sales chassis for growth<br>• Operating discipline was required to drive quality & profitability and improve<br>customers experience<br>• Embedded within the company is leading proteomics OEM within microfluidics<br>\(Olink partnership\) and pioneer of spatial proteomics \(IMC\)<br>PROGRESS HIGHLIGHTS<br>• Rationalized portfolio, streamlined organization, invested in quality<br>• 9% top-line growth yoy, with 900bp non-GAAP gross margin expansion YoY \(2022-23\)<br>• 17% reduction in non-GAAP OpEx YoY \(2022-23\) & 53% improvement in operating<br>cash use<br>• Managed Gx business to contribution margin setting up for profitable growth<br>• Mass Cytometry business on path to profitability and growth<br>Revenue Gross Profit1<br>Operating<br>Expense1<br>Operating<br>Cash Use1<br>FY22 FY23 FY22 FY23<br>$98<br>mm<br>$106<br>mm<br>$50<br>mm<br>$64<br>mm<br>$119<br>mm<br>$99<br>mm<br>$90<br>mm<br>$42<br>mm<br>Stabilized topline margin expansion,<br>and reduced spend<br>TRANSFORMATION ACHIEVED<br>OVER 18 MONTHS<br>+8% YOY +28% YOY -17% YOY -53% YOY<br>FY22 FY23 FY22 FY23<br>1Non-GAAP |
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| 11<br>SomaLogic Merger: Improving Key Metrics, 12 Months In<br>STRATEGIC RATIONALE<br>• Company had spent ~$800M of cash prior to acquisition; similar to Fluidigm,<br>required operating discipline to drive to profitability<br>• Cash position of $425M+ pre merger. Enabled further restructuring activities,<br>investment in competitive studies, & reduction of technical debt<br>• Underlying proteomic aptamer technology uniquely positioned as the only<br>scalable serum proteomics offering; required reducing technical debt<br>PROGRESS HIGHLIGHTS<br>• Accelerated timeline of achievement cost synergies, with $80M in total cost<br>savings operationalized to date, targeting profitability in 2026<br>• In collaboration with Illumina in Q1’24, rolled out early access program of<br>SomaScan assays leveraging >2,000 Illumina instrument installations to drive<br>higher margin consumable revenue<br>• Combined company net cash of $311M1 as of Q3 24, enabling further growth-oriented M&A moving forward<br>TRANSFORMATION ACHIEVED:<br>FIRST 12 MONTHS<br>$80M<br>Synergies<br>1H’23 Ann. FY '26<br>Targeting<br>EBITDA+<br>$250M<br>FY’24<br>Proforma OpEx reduction<br>1Net cash as of Q3 '24; Cash net of convertible debt that was paid off on November 29, 2024 |
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| 12<br>Executing Our M&A Strategy: Two Transformative Acquisitions<br>FY22<br>$98M<br>FY24 FY 25 - 26<br>$106M<br>FY23<br>$174M<br>M&A<br>SBS FLYWHEEL M&A STRATEGY DRIVING REVENUE GROWTH<br>New Asset<br>LEAN TRANSFORMATION:<br>Realizing value through<br>reduction in cost-per-unit<br>KAIZEN<br>Continuously<br>Improve on margin &<br>customer delivery<br>CUSTOMER CENTRICITY<br>Deliver service and quality systems<br>on demand to customers<br>Value |
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| Standard Biotools CONFIDENTIAL 13<br>Merged Two Businesses: Turned around two<br>technology focused cash burning situations to $174<br>million in revenue with path to 2026 profitability<br>Leveraged SBS and lean systems on cost & quality:<br>Delivered $100million+ in overall cost savings to two<br>acquisitions, while driving down customer complaints<br>4 fold, and increasing on time delivery by 20%<br>PHASE 1: 2022 TO 2024<br>Shift Product Portfolio Mix up Value Pyramid:<br>Continued evolution into consumables and kits<br>business, as Illumina partnership matures, SOMAmer<br>reagent launch, & focused M&A across industry.<br>PHASE 2: 2025 TO 2026<br>Moving up pyramid to higher GM businesses:<br>Transitioned to 80% consumable and services mix.<br>Path to further consumables growth with Illumina<br>proteomics partnership<br>Close 4-6 growth driving acquisitions:<br>Current end markets and capital markets<br>creating large funnel to execute on<br>Deliver Profitable, Lean Enterprise with SBS:<br>Complete cost take out & GM improvement to<br>ensure profitable growth, while continuously<br>improving customer & quality metrics<br>13<br>Next Inning for Standard BioTools<br>Building a Diversified Life Science Tools Industry Leader |
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| Product Portfolio & Opportunity<br>14 |
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| Proteomics: A Large Opportunity, Entering Transformative Era<br>15<br>1 Biospace 2024.<br>Transformative Era<br>Impacting Large Areas of Human Health<br>Cardiometabolic \(i.e. GLP-1\),<br>cardiovascular, Alzheimer's, and<br>immunological disease<br>Targeted Oncology<br>& Gene Variant Diseases<br>Limited / Targeted<br>Populations<br>Large, Growing<br>Populations<br>Genomic Driven Proteomic Driven<br>Standard BioTools' DNA based SOMAmers are Positioned to Capitalize on Large Opportunity Ahead<br>$32 Billion<br>Proteomics TAM1<br>Large + High CAGR<br>2023 2032<br>$110 Billion<br>14.9%<br>CAGR |
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| SOMASCAN<br>PLASMA<br>PROTEOME<br>KREX<br>ANTIBODY<br>PROFILING<br>OMICS AS A SERVICE<br>SINGLE CELL PROTEOMICS<br>SPATIAL PROTEOMICS<br>SERVICES & CONSUMABLES<br>Portfolio Capitalizing on Transition from Genomics to Proteomics<br>16<br>Reflects combined historical information with certain adjustments, assuming the merger closed on January 1, 2023.<br>Q 3 ' 2 4 R E V E N U E M I X<br>CONSUMABLES<br>INSTRUMENTS<br>LAB SERVICES<br>FIELD SERVICES<br>OTHER<br>31%<br>12%<br>41%<br>14%<br>CYTOF<br>SINGLE CELL<br>PROTEOMICS<br>HYPERION<br>SPATIAL<br>PROTEOMICS<br>BIOMARK<br>FLUIDICS<br>WORKFLOW<br>INSTRUMENTS & CONSUMABLES |
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| Proteomics Era Unlocked with DNA-Based SOMAmers<br>17<br>Population<br>Genomics<br>Population<br>Proteomics<br>Detect<br>ATCG<br>Distinct Capture<br>of 10K+ proteins<br>DNA Based SOMAmers:<br>Scale in ways Antibodies Cannot<br>50.0%<br>60.0%<br>70.0%<br>80.0%<br>90.0%<br>100.0%<br>0 2000 4000 6000 8000 10000 12000<br># protein measurements<br>Precision on duplicates \(1-CV %\)<br>1.1k 5k 11k<br>SOMASCAN ASSAY SCALING<br>LEADING HIGH PLEX<br>ANTIBODY BASED COMPETITOR<br>5k<br>3k<br>96<br>7k<br>k=1,000s<br>Limited by<br>Antibodies<br>to Date<br>Straightforward,<br>Led by<br>Illumina<br>Rooney et al. Plasma proteomic comparisons change as coverage expands for SomaLogic and Olink. MedRxiv Preprint. 2024<br>ATCG |
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| SomaScan: Leading Platform, Data, & Therapeutic Partners<br>18<br>1,000+<br>Proteomics publications<br>SBI's Leading SOMAmer Solution<br>Positioned at '25 Tipping Point Published January 03, '25 by Novo Nordisk<br>Measuring ~6,400 human proteins in<br>nearly 2,000 participants, uncovered key<br>insights into semaglutide \(i.e. GLP-1\),<br>including cardiovascular benefits |
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| Transformative Opportunity<br>19<br>Integration of SOMAmers with Illumina's Leading NGS Platform<br>Transformative Era for Proteomics:<br>Opportunity over the next decade<br>+<br>Multiple '24 Studies:<br>Aptamers are Only<br>Scalable Solution on<br>the Market Today<br>Key ’24/’25 Data:<br>Leading Population<br>Biomarker Studies1<br>2000+<br>Installed base of<br>NovaSeq<br>Instruments<br>+<br>Standard Bio hosting its Aptamer Scientific<br>Round Table in Q1: Information to follow<br>1Maretty et al. Nature Medicine. 2025;Western et al. Nature Genetics. 2024; Shen et al. Cell. 2024<br>DNA based SOMAmers + Illumina NGS<br>illumina |
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| Standard BioTools 20<br>OUR APPROACH<br>Operate as OWNERS, act like INVESTORS<br>“Increase ROI, Diversify Risk & Generate Returns”<br>Focus on EFFICENCY to grow PROFITS<br>“Without Margin, there is no Mission”<br>Offer SOLUTIONS that enable<br>“We are a business not a technology or 'omics application” |
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| Appendix: Financials<br>21 |
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| Q3 2024 Revenue<br>Continued Focus on Diversifying Revenue Mix<br>Pro Forma Combined Q3 2024 YOY Q3 YTD 2024 YOY<br>Consumables $14M 13% $45M 21%<br>Instruments $6M \(42%\) $20M \(28%\)<br>Lab Services $18M 1% $41M \(23%\)<br>Field Services $6M \(4%\) $19M 0%<br>Collaboration and other $1M 10% $3M \(19%\)<br>TOTAL $45M \(5%\) $128M \(9%\)<br>The selected 2024 unaudited pro forma financial information combines the Company's financial results for the three and nine month periods ended September 30, 2024, and the historical results of<br>SomaLogic for the five-day period ended on January 5, 2024, the closing date of the merger between the Company and SomaLogic \(the “Merger”\). See “Unaudited Pro Forma Results” below for<br>discussion of the pro forma financial information. Numbers may not add, and percentages may not foot due to rounding.<br>• Consumables growth driven by kit sales to<br>authorized sites and Illumina early access<br>program<br>• Instrument revenue declined due to<br>continued capital spending constraints<br>• Services saw favorable timing from few<br>large customer projects alongside new<br>customer growth<br>22 |
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| Q3 2024 Gross Margin \(Non-GAAP\)<br>Pro Forma Combined Q3 2024 YoY Q3 YTD<br>2024 YoY<br>Non-GAAP Gross Margin $ $26M $1M $68M \($5M\)<br>Non-GAAP Gross Margin % 57% 520 bps 53% 110 bps<br>Executing Roadmap to Expanded Gross Margin Profile<br>• 520 bps positive impact in Q3<br>2024 over Q3 2023 from mix shift<br>driven by lower instrument sales,<br>as well as by improved yields,<br>lower scrap and lower warranty<br>costs due to SBS<br>Non-GAAP gross margin excludes amortization of developed technology, non-cash stock-based compensation, and depreciation and amortization. Refer to Appendix for a reconciliation between GAAP and non-GAAP gross margin.<br>The selected 2024 unaudited pro forma financial information combines the Company's financial results for the three and nine month periods ended September 30, 2024, and the historical results of SomaLogic for the five-day period ended on January 5,<br>2024, the closing date of the Merger. Numbers may not add, and percentages may not foot due to rounding.<br>23 |
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| Q3 2024 Operating Expenses \(Non-GAAP\)<br>Non-GAAP OpEx Reduction Showing up in Q3 Run Rate<br>• 24% and $13M reduction in Q3 2024 pro<br>forma combined non-GAAP Opex over<br>Q3 2023<br>• Ahead of plan on synergies with $80M<br>merger cost synergies operationalized;<br>preserving investments in growth<br>initiatives<br>Non-GAAP OpEx excludes stock-based compensation, depreciation and amortization. Refer to Appendix for a reconciliation between GAAP and non-GAAP OpEx.<br>The selected 2024 unaudited pro forma financial information combines the Company's financial results for the three and nine month periods ended September 30, 2024, and the historical results of SomaLogic for the five-day<br>period ended on January 5, 2024, the closing date of the Merger. Numbers may not add, and percentages may not foot due to rounding<br>24<br>Q3 YOY Non-GAAP Pro Forma Opex Reduction 24%<br>Pro Forma<br>Combined<br>Q3<br>2024<br>% of<br>Revenue<br>Q3<br>2023<br>% of<br>Revenue<br>R&D $11M 26% $13M 28%<br>SG&A $28M 63% $39M 83%<br>Total $40M 89% $53M 111% |
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| Q3 2024 Adjusted EBITDA \(Non-GAAP\)<br>Maintain Vigilance and Focus on Bottom Line<br>Pro Forma<br>Combined<br>Q3<br>2024 YoY Q3 YTD<br>2024 YoY<br>Operating Loss $ \($32M\) $16M \($147M\) $6M<br>Net Loss $ \($27M\) $14M \($135M\) \($26M\)<br>Adjusted EBITDA $ \($14M\) $14M \($69M\) $33M<br>• 50% and $14M improvement in<br>Q3 2024 pro forma combined<br>Adjusted EBITDA over Q3 2023<br>Adjusted EBITDA excludes purchase accounting items, restructuring charges, transaction and integration expenses, stock-based compensation, gain/loss on disposal of property and equipment, and other non-operating expenses. Refer to earnings<br>press release for a reconciliation between GAAP net loss and non-GAAP adjusted EBITDA.<br>The selected 2024 unaudited pro forma financial information combines the Company's financial results for the three and nine month periods ended September 30, 2024, and the historical results of SomaLogic for the five-day period ended on January 5, 2024, the<br>closing date of the Merger.. Numbers may not add, and percentages may not foot due to rounding.<br>25 |
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| Q3 2024 Cash<br>Numbers in cash use table are non-GAAP and based on calculations derived from company’s financial books and records. Adjusted cash burn excludes transaction and integration-related, restructuring-related,<br>capex, and share repurchases. | Numbers may not add, and percentages may not foot due to rounding.<br>$367.6M<br>Q3 2024 improvement in<br>Adjusted Cash Burn<br>Runway to Execute Growth Strategy<br>29%<br>Balance sheet to support<br>continued growth<br>initiatives<br>Planned reduction in operating<br>burn through revenue growth,<br>gross margin expansion and<br>opex synergies<br>Cash runway to fund<br>business to cash flow<br>positive<br>A T 9 / 3 0 / 2 0 2 4<br>Cash & equivalents, restricted cash and short-term investments<br>Q3 2024 Q3 2023<br>Adjusted Cash Burn $21.3M $29.8M<br>Transaction and Integration-Related 2.0M -<br>Restructuring-Related 2.9M 2.5M<br>Capex 2.2M 1.3M<br>Share repurchases - 0.4M<br>Total Pro Forma Combined Cash Use $28.4M $34.0M<br>26 |
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| Capitalization Table<br>\(in millions, except per share data\) Issued and<br>Outstanding\(a\) Fully Diluted<br>Common Shares 372M 372M<br>2019 Convertible Notes \(b\)<br>- 19M<br>Restricted Stock Units - 14M<br>Warrants\(c\)<br>- 12M<br>Stock Options \(d\)<br>- 40M<br>Total Shares 372M 457M<br>Market Capitalization \(e\) $718M<br>Cash and short-term investments at September 30, 2024 \(f\) $ 368M<br>Enterprise Value\(f\) $ 350M<br>\(a\) Capitalization table is reflective of common shares and equivalents reported as of September 30, 2024.<br>\(b\) Conversion rate is subject to adjustment upon occurrence of certain specified events.<br>\(c\) Warrants outstanding as of September 30, 2024 were 10.5 million, convertible to shares of Standard BioTools at an exchange ratio of 1.11. Warrants are reflected on a fully dilutive basis.<br>\(d\) Outstanding options have a weighted average exercise price of $4.26.<br>\(e\) Based on $1.93 closing price of common stock on September 30, 2024<br>\(f\) Reflects market capitalization less cash, cash equivalents, restricted cash, and short-term investments as of September 30, 2024.<br>27 |
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| Non-GAAP Reconciliation<br>Gross Margin<br>Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding.<br>As Reported Pro Forma<br>Q3 2024 Q3 2023 Q3 2024 Q3 2023<br>GAAP Gross Profit \($M\) $23.3 $11.2 $23.3 $20.1<br>Add: Amortization of Acquired Intangible Assets 0.6 2.8 0.6 3.4<br>Add: Depreciation and Amortization in COGS 1.4 0.3 1.4 0.8<br>Add: Stock-Based Comp in COGS 0.4 0.2 0.4 0.3<br>Add: Cost of Sales Adjustment 0.0 0.0 0.0 0.0<br>Non-GAAP Gross Profit $25.6 $14.5 $25.6 $24.5<br>GAAP Gross Margin 51.7% 44.0% 51.7% 42.5%<br>Add: Amortization of Acquired Intangible Assets 1.2 11.0 1.2 7.1<br>Add: Depreciation and Amortization in COGS 3.2 1.3 3.2 1.6<br>Add: Stock-Based Comp in COGS 0.8 0.7 0.8 0.5<br>Add: Cost of Sales Adjustment 0.0 0.0 0.0 0.0<br>Non-GAAP Gross Margin 56.9% 57.0% 56.9% 51.7%<br>28 |
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| Non-GAAP Reconciliation - YTD<br>Gross Margin<br>Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding.<br>As Reported Pro Forma<br>Q3 YTD<br>2024<br>Q3 YTD<br>2023<br>Q3 YTD<br>2024 Q3 YTD 2023<br>GAAP Gross Profit \($M\) $62.4 $37.1 $60.9 $61.9<br>Add: Amortization of Acquired Intangible Assets 3.1 8.4 3.1 10.1<br>Add: Depreciation and Amortization in COGS 3.4 1.0 3.4 2.2<br>Add: Stock-Based Comp in COGS 0.9 0.6 0.9 0.8<br>Add: Cost of Sales Adjustment \(1.8\) 0.0 0.0 \(1.3\)<br>Non-GAAP Gross Profit $67.9 $47.1 $68.3 $73.6<br>GAAP Gross Margin 48.8% 47.5% 47.5% 43.9%<br>Add: Amortization of Acquired Intangible Assets 2.4 10.7 2.4 7.1<br>Add: Depreciation and Amortization in COGS 2.7 1.3 2.7 1.5<br>Add: Stock-Based Comp in COGS 0.7 0.8 0.7 0.6<br>Add: Cost of Sales Adjustment \(1.4\) 0.0 0.0 \(0.9\)<br>Non-GAAP Gross Margin 53.2% 60.3% 53.3% 52.2%<br>29 |
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| Non-GAAP Reconciliation<br>Operating Expenses<br>Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding.<br>As Reported Pro Forma<br>In $M Q3 2024 Q3 2023 Q3 2024 Q3 2023<br>GAAP R&D $13.2 $6.4 $13.2 $14.8<br>Less: Stock-Based Comp in R&D 0.7 0.5 0.7 1.0<br>Less: Depreciation and Amortization in R&D 0.9 0.1 0.9 0.5<br>Non-GAAP R&D $11.5 $5.8 $11.5 $13.2<br>GAAP SG&A $34.4 $22.3 $34.4 $44.9<br>Less: Stock-Based Comp in SG&A 4.8 2.7 $4.8 3.7<br>Less: Amortization of Acquired Intangible Assets 0.2 0.0 0.2 0.2<br>Less: Depreciation and Amortization in SG&A 1.0 0.7 1.0 1.6<br>Less: Loss on Disposal of PP&E 0.0 0.0 0.0 0.0<br>Non-GAAP SG&A $28.3 $18.8 $28.3 $39.4<br>30 |
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| Non-GAAP Reconciliation - YTD<br>Operating Expenses<br>Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding.<br>As Reported Pro Forma<br>In $M Q3 YTD 2024 Q3 YTD<br>2023 Q3 YTD 2024 Q3 YTD<br>2023<br>GAAP R&D $48.4 $19.0 $49.0 $47.5<br>Less: Stock-Based Comp in R&D 4.5 1.2 4.5 2.5<br>Less: Depreciation and Amortization in R&D 2.6 0.4 2.6 1.6<br>Non-GAAP R&D $41.3 $17.4 $41.9 $43.4<br>GAAP SG&A $119.0 $66.2 $111.6 $154.9<br>Less: Stock-Based Comp in SG&A 18.9 7.8 12.0 17.9<br>Less: Amortization of Acquired Intangible Assets 0.5 0.0 0.5 0.5<br>Less: Depreciation and Amortization in SG&A 3.3 1.5 3.3 4.2<br>Less: Loss on Disposal of PP&E 0.4 0.1 0.4 0.1<br>Non-GAAP SG&A $95.9 $56.9 $95.3 $132.2<br>31 |
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