Daniel Brennan: Great. Thank you. Thanks for the question, guys. Congrats on the quarter. Maybe just kind of high level just on the guide for the year. Obviously, Michael, you talked about some of the CapEx challenges. The first quarter was kind of a little bit better than you guys expected, but it does imply a nice steep ramp in the back half. So, just any thoughts on, like, Q2? I think consensus sits at $48 million. Any thoughts that that’s about right. And then as we think about, like, the growth that’s implied in the back half of the year, I guess, kind of what can you say about either visibility or just some of the assumptions there?
Michael Egholm: Yeah. So, we are confident in the long-term, even the mid-term growth here. So, we are navigating, as we talked to all of you about here over the last few months. So, a number of transitory headwinds, one of them being this very, very tough CapEx market as I’m now seeing all our peer companies report as well. So, what confidence do we have? We’re seeing our sales funnels are getting larger. I have not seen any cancellations. I’ve only seen purchases being pushed out. And then we’re getting all or some of the headwinds we had. And then last but not least, at the AACR here last month, we launched sort of the next extension on our Hyperion XTi, new imaging modes with lightning fast, and we launched a long awaited slide loader, which can take 40 slides and customers could crank through those in 24 to 72 hours.
I would add here, we’re the only polyomics platform that need a slide loader out there. So, very excited on the progress and excitement around that. And then last but not least, as we have talked about on the legacy Standard Bio side, our site of flow, there were a number of issues we’re working through and we’re really getting confident in the solution and see this — our ability to chip away of what is a very big flow market that will with time — or part of that market will transition to high parameter flow. And to that end, at the CYTO meeting, I think it’s — actually, it was yesterday, CYTO meeting in Edinburgh, there was work presented by one of our collaborators to show that not only do we have fast panel design up to 50 markers, we are hugely advantaged over any other technology on looking at intracellular markers such as cytokines.
And that really, if you want to study that biology, which is really important, we are really the only solution. All that give us hope for the back end and for ’25 and ’26.
Daniel Brennan: Okay, great. And then I know a question or two already on SomaLogic, but really strong quarter, up almost 20%. Some of our diligence reflected that could be hitting a nice growth inflection here despite the challenging market. So is that kind of growth sustainable for the year do you think? Just any color, kind of what you saw? I know you talked a lot about the Illumina partnership for ’25, but kind of the driver today on SomaLogic and then kind of just kind of growth sustainable for the year?
Michael Egholm: As I noted in my script, we see really like strong validation for our assay out there. We’re aware of a couple of bake-offs that will be reported out soon with our major competitor, which is hugely favorable to us. So, long-term, we’re really bullish on this. The big customers we have in pharma are all project-based and subject to sample availability and budget availability. And we still — while we have a view to move more to translational research, where funding typically is not as temperamental as in discovery, we’re still mostly in discovery. So, I don’t really have a good answer for you there, so — but we love the quarter we just had here on the legacy SomaScan side.
Daniel Brennan: Great. And maybe one for Jeff just in terms of the OpEx leverage. Nice leverage in the quarter. Can you give us some thoughts on the pacing of the OpEx through the year and how do the synergies flow in kind of as we get towards the back half of the year?
Michael Egholm: Yeah, I’ll hand that one over to Jeff.
Jeff Black: Yeah, Dan, great to hear from you. So, as I said, we’ve, what I’ll call, operationalized $50 million in savings. And so, we expect to see the full P&L impact of that $50 million for the full year ’25. That will start to layer in really second half of the year. So, we expect that we’ll see, call it, $20 million to $25 million of that actually hit the P&L in the second half of the year. So, in the P&L, you’ll see somewhere around 40% to 50% of that $50 million reflected in ’24.
Daniel Brennan: Great. Okay. All right.
Jeff Black: You’ll see primarily — you’ll primarily see it come out of SG&A.
Daniel Brennan: SG&A. Okay. All right. Well, great, guys. Thank you very much.
Operator: Thank you. And the next question comes from Paul Knight with KeyBanc.
Paul Knight: Hi. Congratulations on what must’ve been a lot of work to put this number set together.
Michael Egholm: Thanks, Paul.
Jeff Black: Thanks, Paul.
Michael Egholm: Thank you.
Paul Knight: The color you put out earlier on this SomaScan early partnership on NGS, obviously, Olink has a readout on NGS that’s getting a lot of traction as well. Are you going to be competitive with the Olink technology on the NGS readouts?
Michael Egholm: Yeah. So, maybe just for background, SomaLogic in the past stepped away from the market for a three-year period, which gave an opening to Olink, which they executed beautifully on and, therefore, have many, many more sites up and running than we have. Our solution together with Illumina is highly competitive and it — really, the advantage really lies in the SomaScan assay, which I alluded to it before, but the underlying advantages that our technology is scalable, we see many, many more proteins and we see them at a much, much lower CV, which means that the discovery power of our assay is manifold larger than that of Olink’s. And without discussing cost, but they’re sort of in the same ballpark. We think we are highly advantaged in the long-term. And I also alluded to bake-offs to be published here over the next year.
Paul Knight: Okay. And then on the genomics side, you obviously supply some OEM partners in the marketplace. Do you see yourself really linked long-term as supplying the microfluidic technology years out, Michael?
Michael Egholm: Yes. We actually believe it’s a highly differentiated solution. It’s a very high performing solution, for certain. There’s certain sample/complexity points that it’s a really good solution. One of them is we are an OEM partner to that other polyomics company there and they — like, as best as we can estimate, they must have something approaching 200 units out in the field that are still reliant on our proprietary consumables, the integrated fluidic circuit. So, with what we have today, we actually feel really good about the business. We certainly expect to be as good partners to Thermo once that acquisition closes and don’t expect a change there. But if there should be one, as I said, we already have 200 units out there that will consume the IFC.
