Jason Gole's questions to Seer Inc (SEER) leadership • Q3 2024
Question
Jason Gole of Morgan Stanley inquired about the Q4 2024 revenue guidance, which implies a flat or negative sequential trend, questioning the level of conservatism and assumptions around a year-end budget flush. He also asked about the P&L impact from the recent sales team expansion and the drivers behind the customer mix shifting more towards academic clients.
Answer
David Horn, CFO & President, explained that the guidance range reflects uncertainty in the timing of several large deals in the pipeline and that the company is not forecasting a significant year-end budget flush due to ongoing pressure on capital budgets. CEO Omid Farokhzad added that the newly expanded sales and marketing team is ramping well, with benefits expected to materialize later in the year and into 2025. Regarding the customer mix, Farokhzad clarified that while the pipeline includes more academic interest driven by growing publications and grant funding cycles, the closed-deal installed base remains tilted about 60-40 towards commercial customers. He also noted that study sizes are increasing across both customer types.