Standard Biotools Inc. · NASDAQ:LAB
Standard Biotools — Investor Presentation (January 2024)
28 slides from Standard Biotools's investor presentation, Jan 8, 2024
Slide 1: Activating a Strategy to Become a Diversified Leader in Life Sciences Tools
Standard BioTools Activating a Strategy to Become a Diversified Leader in Life Sciences Tools J A N U A R Y 2 0 2 4
Slide 2: Legal Information: Forward-looking statements
Standard BioTools Legal Information 2 Forward-looking statements This presentation contains forward-looking statements that are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements, man
Slide 3: Advancing Life Sciences Research
3 Advancing Life Sciences Research Diverse portfolio of multi-omic solutions with highest throughput and data quality Applying world-class leadership’s operating discipline to create meaningful value Targeting large, high-growth markets with differentiated technologies Tech Leadership Lucrative Mark
Slide 4: SBI: Forging the Next Generation of Leadership in Life Science Tools & Solutions
4 SBI: Forging the Next Generation of Leadership in Life Science Tools & Solutions Capital Entrenched operating discipline drives execution and profitability Deep industry, operational & integration expertise Backed by leading Life Sciences investors with deep capital reserves Applying necessary bui
Slide 5: SomaLogic Powers Comprehensive Proteomic Insights
5 SomaLogic Powers Comprehensive Proteomic Insights ~$23M Preliminary Unaudited Q4’23 Revenue ~$86MPreliminary Unaudited FY’23 Revenue 191 SomaScan Services customers, relationships with top biopharma companies Blue-Chip Customer Base Highest plex, highest data quality, most reliable serum proteome
Slide 6: Built to Scale Profitably: Unlocking Value in Fragmented Space
6 … FEW Built to Scale Profitably • Developing, manufacturing, supporting customers, and commercializing technology is costly • Leveraging infrastructure costs requires deep operating expertise • Need for sufficient capital Growth Profitability F U T U R E T O D A Y L A S T Y E A R Scale is crucial
Slide 7: Leading Multi-Omic Platform
7 Leading Multi-Omic Platform Differentiated throughput, reliability, and data integrity Hyperion™ XTi Imaging System Biomark™ X9 System for High-Throughput Genomics Integrated fluidic circuit Maxpar® assays and kits Flow Cytometry Spatial Biology Genomics Serum Proteome Workstation SomaScan® Assay
Slide 8: Expanded Commercial Reach
8 Expanded Commercial Reach Symbiotic customer mix maximizes cross-selling opportunities and expands relationships End Markets Offering Academic research ~65% Biopharma research ~80% Services (SomaScan) Consumables ~85% Services Consumables Instruments
Slide 9: Executive team
9 Anders Davas SVP, Global Operations Large-Enterprise Operating Expertise David King, PhD SVP, Global R&D Agnieszka Gallagher SVP, Chief Legal Officer Michael Egholm, PhD Chief Executive Officer Jeremy Davis Chief Commercial Officer Betsy Jensen Chief Human Resources Officer Alex Kim Chief Operatin
Slide 10: Accelerated Path to Scale and Profitability
10 Preliminary 2023E(1) (Pro-Forma combined) Expected Merger Impacts 2026E Targets (Pro-Forma combined) Revenue ~$192M Double-Digit Annual revenue growth with synergies $300M+ Non-GAAP gross margin ~54% ~65% Non-GAAP SG&A % of sales ~90% $80M Run-rate cost synergies 2023E-2026E(2) ~35% Non-GAAP R&D
Slide 11: Capturing Potential $80M Synergy Opportunity
11 Capturing Potential $80M Synergy Opportunity G&A S&M R&D Elimination of redundant public company and G&A costs (Exec., HR, Legal, Finance, IT) Rationalization of common commercial infrastructure (Sales, Marketing, Product Management) Continue investment, prioritizing differentiated technologies w
Slide 12: Expected Self-Funded Path to Positive Cash Flow
12 Expected Self-Funded Path to Positive Cash Flow >$550M Estimated cash, cash equivalents and short term securities of over $550M as of 12/31/23 pro forma for combined company • Balance sheet to support continued growth initiatives • Planned reduction in operating burn through revenue growth, gross
Slide 13: SBI Operating Track Record
13 Q1 to Q3 2022 Q1 to Q3 2023 YoY Revenue $71M $78M +10% (+13% core)1 Non-GAAP gross margin 50% 60% +1,000 bps Non-GAAP operating expense $93M $74M (24%) Operating cash use $71M $30M (58%) SBI Operating Track Record Strong execution maximizing Fluidigm synergies 9 months ended September 30, 2022 vs
Slide 14: Standard BioTools Technology Appendix
Standard BioTools Technology Appendix
Slide 15: High-Parameter Testing Is a Challenge With Proteins
15 High-Parameter Testing Is a Challenge With Proteins Markers 30 Biological insights 100 75 50 25 0 89Y 110Pd 141Pr 150Nd 161Dy 191lr 209Bi Fluorescent labels Metal isotopes for mass cytometry vs. Spectral overlap Discrete channels 0 10 20 30 40 50 60 Mass cytometry solves fundamental limitation of
Slide 16: Flow Cytometry for Translational Research
16 Flow Cytometry for Translational Research 16 # O F L I N E A G E ( S U R F A C E ) M A R K E R S 5 10 15 25 # F U N C T I O N A L ( I N T R A C E L L U L A R ) M A R K E R S CyTOF Today Competitive moat: the most robust solutions in high parameter market segment 1 20 30 40 50 0 CyTOF Future 20 Co
Slide 17: Spatial Biology: Hyperion XTi is a Game-Changer
17 Spatial Biology Hyperion XTi is a Game-Changer 40 Slides | 40 Markers 24 Hours Throughput: number of slides/day 0.1 1 10 100 HIGH LOWQuality Discovery Translational research Transcript Profiling Cycling High-plex IF Low-plex IF* *IF: immunofluorescence
Slide 18: Slow Off-rate Modified Aptamers (SOMAmers)
Slow Off-rate Modified Aptamers (SOMAmers®) Thousands of different SOMAmer® reagents bind to thousands of individual proteins in single sample SOMAmer reagents measured on colorimetric DNA array platform to measure relative protein concentrations Protein of interest Synthetic single-stranded DNA str
Slide 19: Financials Appendix
Financials Appendix Nine Months Ended September 30, 2023
Slide 20: Revenue Contribution by Product
20 Revenue Contribution by Product • Total revenue growth led by strong instrument placements in both Proteomics and Genomics • Growth in instrument placements expands future consumables and service pull-through revenue, a significant driver of both revenue and margin growth • Consumables decline in
Slide 21: Revenue Contribution by Segment
21 Proteomics 60% Genomics 40% Revenue Contribution by Segment • Quarter-to-quarter variability impacted largely by timing of customer orders • YTD growth in Proteomics led by continued traction of Hyperion XTi, our next-generation imaging solution • Managing Genomics through planned transition; Ope
Slide 22: Gross Margin (Non-GAAP)
22 + Sales growth + Product mix shift + Overhead absorption + Improved quality / reduced service and warranty costs Gross Margin (Non-GAAP) Q3 2023 YoY Gross Margin $ $15M +16% Gross Margin % 57% +830 bps • YoY GM% increase attributed to product mix, cost improvements & improved overhead absorption
Slide 23: Operating Expenses (Non-GAAP)
23 Operating Expenses (Non-GAAP) Q3 2022 % of Revenue Q3 2023 % of Revenue R&D $7M 29% $6M 23% SG&A $22M 87% $19M 74% Total $30M 116% $25M 97% • Investing in commercial organization to enhance service, increase penetration, expand geographically • Improved R&D effectiveness and clear roadmap priorit
Slide 24: Non-GAAP Reconciliation: Combined Gross Margin
24 N O N - G A A P R E C O N C I L I A T I O N Combined Gross Margin Q1 to Q3 2022 Q1 to Q3 2023 GAAP Gross Profit ($M) $74.3 $64.9 Add: Amortization on Technology in COGS $8.4 $8.4 Add: Depreciation and Amortization in COGS $1.6 $1.9 Add: Stock-Based Comp in COGS $1.4 $1.3 Non-GAAP Gross Profit ($M
Slide 25: Non-GAAP Reconciliation: Combined R&D Expense
25 N O N - G A A P R E C O N C I L I A T I O N Combined R&D Expense Q1 to Q3 2022 Q1 to Q3 2023 GAAP R&D Operating Expenses ($M) $80.8M $54.4M Less: Restructuring & related charges in R&D - $0.2M Less: Stock-based comp in R&D $8.3M $5.8M Less: Depreciation & amortization in R&D $1.2M $1.2M Less: Imp
Slide 26: Non-GAAP Reconciliation: Combined SG&A Expense
26 N O N - G A A P R E C O N C I L I A T I O N Combined SG&A Expense Q1 to Q3 2022 Q1 to Q3 2023 GAAP SG&A Operating Expenses ($M) $198.1M $153.8M Less: Restructuring & related charges in SG&A - $0.8M Less: Stock-based comp in SG&A $38.5M $18.1M Less: Depreciation & amortization in SG&A $3.0M $5.4M
Slide 27: Non-GAAP Reconciliation: Combined Operating Expenses
27 N O N - G A A P R E C O N C I L I A T I O N Combined Operating Expenses Q1 to Q3 2022 Q1 to Q3 2023 GAAP Operating Expenses ($M) $290.7M $219.4M Less: Restructuring & related charges $5.1M $6.5M Less: Transaction-related expenses $6.7M $5.8M Less: Stock-based comp $46.8M $23.9M Less: Depreciation
Slide 28: Non-GAAP Reconciliation: SBI Gross Margin and Op Ex
28 28 Q1 to Q3 2022 Q1 to Q3 2023 GAAP Gross Margin % 36.5% 47.5% Add: Amortization on Technology in COGS 11.9% 10.7% Add: Depreciation and Amortization in COGS 1.3% 1.3% Add: Stock-Based Comp in COGS 0.6% 0.8% Non-GAAP Gross Margin 50.3% 60.3% SBI Gross Margin % and Op Ex ($M) N O N - G A A P R E C
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