Bioinformatics company SomaLogic has released its Q1 2023 earnings, reporting a loss per share of USD 0.18, beating analyst estimates by 14.3%. Net losses for the quarter increased considerably by more than 7x YoY to USD 34.2 million, mainly due to a significant change in the fair value of warrant liabilities and earn-out liability. 

Revenue for the quarter decreased 11% YoY to USD 20.4 million. Revenue experienced a 2% increase when excluding the royalty revenue from NEB during Q1 2022.

Gross margin for the quarter was 39.6% compared to 49.3% in Q1 2022. The decrease was primarily driven by the temporary variation in the composition of customers in Q1 2023. For the quarter, adjusted EBITDA was a loss of USD 36.4 million (up 12.3% YoY). Further, operating expenses increased by 7.7% YoY to USD 60.6 million due to higher R&D expenses (up 1.9% YoY) and administrative expenses (up 10.9% YoY). The slight growth is in line with SomaLogic's previously announced efforts to reduce expenses and prioritize investments in its commercial infrastructure.

The company achieved a few milestones for the quarter, such as 1) development and manufacturing progress for its 10k SomaScan assay on track for launch by the year-end, and 2) global expansion through new authorized sites announced with G42 (UAE) and BioStar (China).

At the end of March 2023, the firm's cash and cash equivalents stood at USD 500.6 million compared with USD 539.6.5 million in December 2022. The company maintained revenue guidance for the full-year 2023 in the range of USD 80 million–84 million, implying a 12%–17% decrease, excluding licensing revenue from New England Biolabs.