Seer, Inc. (SEER): Business Model Canvas [11-2024 Updated]

Seer, Inc. (SEER) is revolutionizing the field of proteomics with its innovative Proteograph Product Suite, designed to enhance research capabilities across various sectors. This blog post delves into SEER's Business Model Canvas, highlighting its strategic

• partnerships with academic institutions
• key activities in product development and marketing
• robust customer relationships

and diverse revenue streams. Discover how SEER is positioned for growth in the life sciences landscape and what makes its business model uniquely effective.

Seer, Inc. (SEER) - Business Model: Key Partnerships

Collaborations with academic institutions

Seer, Inc. has established partnerships with several academic institutions to advance proteomics research. These collaborations are essential for enhancing the capabilities of the Proteograph Product Suite. In 2024, Seer reported receiving a total of $2.0 million from a Small Business Innovation Research grant awarded by the National Institutes of Health for research applications.

Partnerships with third-party distributors

Seer collaborates with third-party distributors to enhance the reach of its products. These partnerships are crucial for distributing the Proteograph Product Suite effectively across various regions. The company relies on these distributors for manufacturing certain components of its consumables, which are sourced from multiple suppliers. As of September 30, 2024, Seer utilized third-party manufacturers for the production of its SP100 instrument.

Relationships with key opinion leaders in proteomics

Seer has developed relationships with key opinion leaders in the field of proteomics. These relationships facilitate the validation of Seer's technologies and products, enhancing credibility and market acceptance. Revenue from related parties, which includes key opinion leaders, represented 14% of Seer’s total revenue for the three months ended September 30, 2024.

Contracts with suppliers for essential components

Seer maintains contracts with various suppliers for essential components necessary for its product offerings. As of September 30, 2024, the company had a total of $0.8 million in purchase commitments related to inventory management with certain manufacturing suppliers. The company conducts vendor and component qualification processes to ensure quality control for components provided by these third-party suppliers.

Partnership Type	Description	Financial Impact
Academic Institutions	Collaborations for research and development	$2.0 million NIH grant received
Third-party Distributors	Distribution of Proteograph Product Suite	Utilization of third-party manufacturers for SP100 instrument
Key Opinion Leaders	Validation of technologies and products	14% of total revenue from related parties
Suppliers	Contracts for essential components	$0.8 million in purchase commitments

Seer, Inc. (SEER) - Business Model: Key Activities

Development and commercialization of the Proteograph Product Suite

Seer, Inc. focuses on the development and commercialization of its Proteograph Product Suite, which is designed for proteomic analysis. For the nine months ended September 30, 2024, the company reported product revenue of $6.34 million, compared to $5.84 million for the same period in 2023. This growth underscores the increasing adoption of their technology in various research and clinical settings.

Manufacturing and supply chain management

Seer manages its manufacturing processes internally while also relying on third-party suppliers for certain components. As of September 30, 2024, the company had inventory totaling $6.94 million, an increase from $4.49 million in December 2023. This increase reflects the company's efforts to enhance its manufacturing capabilities and ensure a robust supply chain for the Proteograph Product Suite.

Sales and marketing efforts to drive product adoption

Sales and marketing are critical activities for Seer, aimed at expanding market penetration. The company reported selling, general, and administrative expenses of $43.68 million for the nine months ended September 30, 2024, compared to $45.88 million in the previous year. These expenditures are essential for promoting the Proteograph and driving product adoption in the competitive proteomics market.

Research and development for product enhancements

Seer invests heavily in research and development to enhance its product offerings. For the nine months ended September 30, 2024, the company allocated $37.97 million to research and development, down from $41.85 million in 2023. This investment is crucial for maintaining innovation and addressing the evolving needs of customers in proteomics.

Key Activity	Details	Financial Impact (2024)
Development of Proteograph Product Suite	Focus on proteomic analysis technology	Product revenue: $6.34 million
Manufacturing and Supply Chain Management	Internal manufacturing, third-party components	Inventory: $6.94 million
Sales and Marketing	Efforts to increase market penetration	SG&A expenses: $43.68 million
Research and Development	Investment in product enhancements	R&D expenses: $37.97 million

Seer, Inc. (SEER) - Business Model: Key Resources

Proteograph Product Suite and associated technologies

The Proteograph Product Suite is a key offering of Seer, Inc., designed to revolutionize the field of proteomics. It utilizes advanced technology to analyze proteins in biological samples. For the three months ended September 30, 2024, product revenue from the suite was $2.9 million, an increase from $1.8 million in the same period in 2023. The total revenue for the nine months ended September 30, 2024, reached $10.2 million, down from $12.2 million in the prior year.

Skilled workforce in R&D and sales

Seer, Inc. employs a highly skilled workforce focused on research and development (R&D) as well as sales. As of September 30, 2024, the company reported R&D expenses of $12.97 million for the quarter, slightly down from $13.23 million in the previous year. The selling, general, and administrative expenses were recorded at $13.30 million for the quarter. The workforce's expertise is essential for driving innovation and maintaining competitive advantage in the proteomics market.

Intellectual property portfolio

Seer, Inc. has developed a substantial intellectual property (IP) portfolio that underpins its technology and business model. This includes patents and proprietary technologies related to the Proteograph Product Suite. The company’s ability to protect its innovations through IP rights is crucial for sustaining its market position and driving future growth.

Manufacturing facilities in Redwood City, California

Seer operates manufacturing facilities located in Redwood City, California, where the Proteograph Product Suite and its components are produced. The company leases approximately 51,000 square feet of office and laboratory space in Redwood City, with a lease term extending until September 2032. The total operating lease liabilities, as of September 30, 2024, were reported at $26.5 million. This facility supports the company’s production needs and plays a vital role in its operational capabilities.

Key Resource	Description	Financial Data
Proteograph Product Suite	Advanced technology for protein analysis	Product revenue: $2.9 million (Q3 2024)
Skilled Workforce	Focus on R&D and sales	R&D expenses: $12.97 million (Q3 2024)
Intellectual Property Portfolio	Patents and proprietary technologies	N/A
Manufacturing Facilities	Located in Redwood City, California	Lease liabilities: $26.5 million (as of Q3 2024)

Seer, Inc. (SEER) - Business Model: Value Propositions

Innovative solutions for proteomics research

Seer, Inc. offers cutting-edge innovations in proteomics research through its proprietary Proteograph Product Suite. This suite utilizes nanoparticle (NP) technology to provide researchers with unprecedented access to high-resolution proteomic data. As of September 30, 2024, total revenue for the company was reported at $10.17 million for the nine months ended, showing a decrease of 17% compared to $12.22 million for the same period in 2023.

Integrated platform combining consumables and automation

The Proteograph platform integrates consumables and automation, enhancing the efficiency of proteomic analysis. The SP100 automation instrument, designed by Seer and manufactured by Hamilton Company, plays a critical role in streamlining the workflow. The total cost of revenue for the three months ended September 30, 2024, was $2.09 million, reflecting a 4% increase from $2.01 million in the previous year, driven by increased sales of higher-cost instruments.

Ability to increase study sizes in proteomic analysis

Seer’s technology allows for larger study sizes in proteomic analysis, enabling more comprehensive data collection. This capability can significantly enhance the statistical power of research studies, providing clients with more robust datasets for their investigations. As of September 30, 2024, the company incurred a net loss of $64.86 million for the nine months, down from a loss of $68.48 million in the same period of 2023.

High-quality data generation and analysis services

Seer provides high-quality data generation and analysis services, crucial for researchers in various fields, including drug discovery and biomarker identification. The service revenue for the nine months ended September 30, 2024, was $1.75 million, representing a 63% increase from $1.07 million for the same period in 2023, indicating strong demand for these services.

Metric	Q3 2024	Q3 2023	Change (%)
Total Revenue	$4.03 million	$4.16 million	-3%
Cost of Revenue	$2.09 million	$2.01 million	+4%
Service Revenue	$1.75 million	$1.07 million	+63%
Net Loss	$21.33 million	$21.09 million	+1%

Seer, Inc. (SEER) - Business Model: Customer Relationships

Direct sales to commercial entities and research institutions

Seer, Inc. generates revenue through direct sales of its Proteograph Product Suite, which includes the SP100 automation instrument and associated consumables. For the nine months ended September 30, 2024, the company reported product revenue of $6.34 million, a slight increase from $5.84 million during the same period in 2023. The company primarily targets commercial entities and research institutions, leveraging a direct sales approach to establish relationships with key customers in the proteomics market.

Engagement with customers for feedback and improvements

Seer actively engages with its customers to gather feedback on its products and services. This feedback loop is critical for continuous improvement and innovation. The company reported that 14% of its total revenue for the three months ended September 30, 2024, came from a related party, indicating a strong engagement with specific institutional customers. Seer also recognizes the importance of customer insights in refining its offerings, which is evident from its ongoing research and development investments totaling approximately $37.97 million for the nine months ended September 30, 2024.

Support and training for effective product usage

Seer provides comprehensive support and training to ensure effective utilization of its products. The company incurs significant operational expenses related to selling, general, and administrative activities, amounting to $43.68 million for the nine months ended September 30, 2024. This investment includes training programs for customers to enhance their understanding and operational capabilities regarding the Proteograph Product Suite.

Building long-term relationships with academic and research organizations

Seer has established strategic partnerships with academic and research organizations to foster long-term relationships. The company has received a total of $2.0 million in funding from the National Institutes of Health for research applications since August 2019. These collaborations not only enhance Seer's credibility but also serve as a foundation for future product development and commercialization efforts.

Customer Segment	Revenue Contribution (Q3 2024)	Feedback Mechanism	Support Offered	Partnerships
Commercial Entities	$2.91 million in product revenue	Regular surveys and feedback sessions	Product training and technical support	Partnerships with major research institutions
Research Institutions	$1.75 million in service revenue	Collaboration on research projects	Dedicated account management	Grants and funding support from NIH

Seer, Inc. (SEER) - Business Model: Channels

Direct sales in the U.S. market

Seer, Inc. primarily utilizes a direct sales approach to reach customers within the United States. The direct sales team is responsible for engaging with key clients including research institutions and pharmaceutical companies. For the nine months ended September 30, 2024, Seer reported product revenue of $6.34 million, which represents a significant portion of their total revenue.

Distributor partnerships for international markets

In international markets, Seer, Inc. leverages distributor partnerships to extend its reach. This strategy allows the company to penetrate markets in Asia and Europe effectively. As of September 30, 2024, approximately 29% of Seer’s total revenue was generated outside the United States, with significant contributions from these distributor partnerships.

Region	Revenue Contribution	Percentage of Total Revenue
United States	$7.2 million	71%
International (Asia & Europe)	$3.0 million	29%

Online platforms for information dissemination

Seer, Inc. extensively uses online platforms to disseminate information about their products and services. The company maintains a robust digital presence through its website and social media channels, where they provide updates on research developments, product offerings, and customer testimonials. This approach has been essential in attracting potential clients and driving engagement.

Participation in scientific conferences and trade shows

Seer actively participates in scientific conferences and trade shows to showcase its innovative technologies. These events provide a platform for direct interaction with potential customers and industry experts. For instance, in 2024, Seer planned to attend several key industry events, aiming to enhance brand visibility and establish connections within the scientific community.

Seer, Inc. (SEER) - Business Model: Customer Segments

Academic institutions conducting life sciences research

Seer, Inc. targets academic institutions that are engaged in life sciences research, particularly those focusing on proteomics. These institutions often require advanced technologies for protein analysis to support their research initiatives. In 2023, the global market for academic life sciences research was valued at approximately $48 billion, with significant growth expected due to increasing research funding and advancements in technology.

Biopharmaceutical companies

Biopharmaceutical companies represent a critical customer segment for Seer, Inc. These firms utilize Seer’s Proteograph Product Suite for drug discovery and development processes. In 2024, the biopharmaceutical market is projected to exceed $1.3 trillion, driven by innovations in biologics and personalized medicine. The demand for proteomic analysis in this sector is growing, as companies seek to enhance their research capabilities and streamline drug development.

Research laboratories focusing on proteomics

Research laboratories specializing in proteomics are essential customers for Seer, Inc. These labs require high-throughput proteomic solutions to conduct complex analyses efficiently. The proteomics market was valued at approximately $23 billion in 2023 and is expected to reach $40 billion by 2028, reflecting a compound annual growth rate (CAGR) of 11.6%. Seer’s offerings provide these laboratories with innovative tools to advance their research.

Government and nonprofit research organizations

Government and nonprofit research organizations also form a vital segment of Seer’s customer base. These entities often operate under tight budgets but require high-quality data for public health and scientific research. Funding for such organizations is expected to reach $25 billion by 2024, emphasizing the importance of cost-effective and reliable proteomic solutions. Seer’s technology aligns with the mission of these organizations to deliver impactful research outcomes.

Customer Segment	Market Size (2023)	Projected Growth (2024-2028)	Key Needs
Academic Institutions	$48 billion	Significant growth due to funding increases	Advanced protein analysis technology
Biopharmaceutical Companies	$1.3 trillion	Continued growth driven by biologics	Streamlined drug development processes
Research Laboratories	$23 billion	Expected to reach $40 billion by 2028	High-throughput proteomic solutions
Government and Nonprofit Organizations	$25 billion (projected funding)	Focus on cost-effective solutions	Reliable data for public health research

Seer, Inc. (SEER) - Business Model: Cost Structure

R&D Expenses for Product Development

For the three months ended September 30, 2024, Seer, Inc. reported research and development (R&D) expenses of $12,967 thousand, a decrease of $265 thousand or 2% from $13,232 thousand in the same period of 2023. This decline was attributed to a reduction in headcount leading to lower employee compensation costs by $0.5 million, along with a decrease in allocation expenses and stock-based compensation, partially offset by a rise in professional services expenses of $0.7 million.

For the nine months ended September 30, 2024, the R&D expenses totaled $37,966 thousand, reflecting a decline of $3,888 thousand or 9% from $41,854 thousand in the same period of 2023. The decrease was primarily due to reductions in employee compensation costs and stock-based compensation.

Manufacturing Costs for the Proteograph Product Suite

Seer, Inc. utilizes third-party manufacturers for the production of its SP100 instrument and conducts in-house assembly of assay kits and consumables. For the three months ended September 30, 2024, the total cost of revenue was $2,094 thousand, representing an increase of $88 thousand or 4% from $2,006 thousand in the same period of 2023, primarily driven by higher instrument sales which carry a higher cost.

For the nine months ended September 30, 2024, the total cost of revenue decreased to $5,140 thousand from $5,718 thousand in 2023, a reduction of $578 thousand or 10%, primarily due to lower product revenue from decreased instrument sales.

Marketing and Sales Expenses

Selling, general and administrative (SG&A) expenses, which encompass marketing and sales costs, were reported at $13,296 thousand for the three months ended September 30, 2024, a decrease of $1,473 thousand or 10% from $14,769 thousand in the same period of 2023. This reduction was largely due to lower headcount, resulting in a decrease in stock-based compensation of $1.7 million and employee compensation costs of $0.5 million.

For the nine months ended September 30, 2024, SG&A expenses totaled $43,677 thousand, down $2,205 thousand or 5% from $45,882 thousand in the corresponding period of 2023.

Administrative and Operational Costs

Total operating expenses for Seer, Inc. amounted to $26,263 thousand for the three months ended September 30, 2024, a decrease of $1,738 thousand or 6% from $28,001 thousand in the same period of 2023. For the nine months ended September 30, 2024, the total operating expenses were $81,643 thousand, reflecting a decrease of $6,093 thousand or 7% from $87,736 thousand in 2023.

Cost Category	Q3 2024 (in thousands)	Q3 2023 (in thousands)	Change ($ thousands)	Change (%)
R&D Expenses	$12,967	$13,232	$(265)	(2%)
Manufacturing Costs	$2,094	$2,006	$88	4%
SG&A Expenses	$13,296	$14,769	$(1,473)	(10%)
Total Operating Expenses	$26,263	$28,001	$(1,738)	(6%)

Seer, Inc. (SEER) - Business Model: Revenue Streams

Sales of the Proteograph Product Suite and Consumables

In the nine months ended September 30, 2024, Seer, Inc. reported product revenue of $6,344,000, an increase of 9% compared to $5,837,000 in the same period of 2023. This growth in product sales is attributed to the sales of the Proteograph Product Suite, which includes the SP100 automation instrument and consumables essential for its operation. For the three months ended September 30, 2024, product revenue was $2,915,000, compared to $1,849,000 in the same quarter of 2023.

Service Revenue from Data Generation and Analysis

Service revenue significantly increased, totaling $1,751,000 for the nine months ended September 30, 2024, a 63% rise from $1,072,000 in the previous year. For the third quarter of 2024, service revenue was $661,000, up from $536,000 in the same quarter of 2023. This revenue mainly comes from the generation and analysis of proteomic data on behalf of customers, reflecting the growing demand for Seer’s data services.

Grant Funding for Research and Development Activities

Seer has secured a total of $2,000,000 in funding from a Small Business Innovation Research (SBIR) grant awarded by the National Institutes of Health since August 2019. However, for the three and nine months ended September 30, 2024, the company recognized no grant revenue. In contrast, during the same periods in 2023, Seer recognized $200,000 and $900,000 respectively. This decline in grant revenue is a notable shift in Seer's funding landscape.

Potential Revenue from Licensing Intellectual Property

Seer, Inc. has opportunities for potential revenue through licensing its intellectual property. While specific figures for licensing revenue are not disclosed, the company continues to expand its intellectual property portfolio, which could lead to future licensing agreements. As of September 30, 2024, the company had an accumulated deficit of $370,630,000, indicating the need for diverse revenue streams to support ongoing operations and growth.

Revenue Source	Q3 2024 Revenue	Q3 2023 Revenue	9M 2024 Revenue	9M 2023 Revenue	Change (%)
Product Sales	$2,915,000	$1,849,000	$6,344,000	$5,837,000	9%
Service Revenue	$661,000	$536,000	$1,751,000	$1,072,000	63%
Grant Revenue	$0	$200,000	$172,000	$1,221,000	-86%

Updated on 16 Nov 2024

Resources:

1. Seer, Inc. (SEER) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Seer, Inc. (SEER)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Seer, Inc. (SEER)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.