Nanostring (NSTG)

Doug Farrell VP, IR
Brad Gray President and Chief Executive Officer
Tom Bailey Chief Financial Officer
Daniel Brennan UBS
Tejas Savant JP Morgan
Catherine Schulte Baird
Adam Wieschhaus Cowen and Company
Call transcript
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Good day ladies and gentlemen and thank you for standing by. Welcome to the NanoString 2018 Fourth Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. to host like Mr. today's now would introduce for your presentation I Farrell. Doug Sir, please begin.

Doug Farrell

you, Thank operator.

with is Earlier me President call XXXX. the the On today fiscal and and our results year Bailey, fourth released quarter and Brad Tom our we CFO. today, financial for CEO; our Gray,

penetrating During for trends projections, and addressable statements future existing the our are this collaborations, make expanding and including focus forward-looking, future and offerings. recent of we number will growth, related anticipated and and prospects factors, statements and call, business strategic objectives, our a that about of markets, product success financial planned and status development

time are our filings. in which Forward-looking to uncertainties, and are subject control. many described beyond are of to our statements Those SEC risks time from

on differ and statements publically. may materially call, no to projected those from update today’s obligation results those undertake we Our

like Now I the Brad. would call to to return

Brad Gray

you us afternoon Good joining today. for Doug. and Thanks, thank

following dynamic of We XXXX confidence have sense extremely begin an and renewed performance introduced the energy. theory a new with we strong a year Company, for

and have growth business our substantial interest Digital core Profiler. to double-digit our returned Spatial in We GeoMx generated

a transition be into cycle expect to to we exciting us year. than company. with of that commercially both a We’re set today, product revenue of rapidly genomics in and GeoMx open-ended DSP shares a a our launched single from field our growth kick-of very a customers many month the and new will spatial growing cells genomics. characteristics we we field XXXX a accelerate up market currently defining multiplatform When is than less

review I milestones turn operating outlook before our overall results financial the current I for remarks, quarter strategic over to will objectives fourth for our then some provide During our XXXX key our highlights outlining call Tom will XXXX. performance and the for year. to and the in my on prepared

and overall eCounter I execution this of investments full paid revenue made and their of channel XXXX. service in we am in the sustain of a performance. job During to commercial XXXX. of growth extremely The We the sales product business in did that really core XXXX, our our our focus our accelerating generated and proud roughly intend growth fantastic team we in momentum improvement off growth teams and ensured XX%

of XXXX, installed During XX% more we than increase to XXX grew an our systems systems base at about eCounter year-on-year. of

continued new eCounter XX% lower-cost -- sales We to broaden for our into channel instruments eCounter smaller of with accounted sales placements. labs SPRINT

addition, XXX XX system an in strength introduced market on applications grew immunology In PanCancer number impressive markets new year. research total accounted from We our led meaningful and growth outside XXXX non-oncology results was combined of XX% XXXX. $XX million increase generated commercial sales This into XX% our XX% of last only in growth year, an we and as successfully expanded XXXX. and over the the neurology. such channel of consumable for than And XX% of new sales, more panel up remains fastest consumer oncology our by XX%, immuno-oncology our last year. The IO largest Immune also panels immunology one grew which products Panel panel. that and about we where including year Profiling neurology selling our growing by panels portfolio cancer including oncology a saw

impressive our Perhaps, research from We business. designated for parallel, delivered We was GeoMx more three the XX% more attention our of GeoMx the than preorders we our clear another eCounter and core have these instruments a achievement compelling have seen preorders of spatial of and and and XX nature customers. than expanded TAP by sites. XX% the at successfully XX objective in instruments, GeoMx of profiling Overall, leading Program excellence as centers on outside repurchased XX plus In data securing to profile, growth. great activities for customers year this from program have site installed centers distracting GeoMx is for for came areas. who projects full most focusing GeoMx momentum the X yet we product customer of build DSP completed three XXXX into momentum market with Technology Access our unseen. we and GeoMx our without hunger sign Prosigna Finally, bring advanced the successful that prelaunch

by on objective in XXXX. strategies first double-digit delivered what our in the to made growth continuing number starts is Our of business execute that new This by in us core to instruments successful eCounter a we XXXX. similar sustain eCounter to selling

being will half some about that and diversify systems. placements expect new labs oncology. to eCounter beyond of instrument bundled instruments in new strengthened sales of areas expected half XXXX we research smaller course for with GeoMx instrumental We the pace SPRINT with of once as is year and second again the The the placements eCounter of continue in the over account system

the expansion that XXXX can driver that eCounter modest growth plan of will most annualized expect account time is reps and a channel, consumable sales products can maintain to compelling focused our we $XX,XXX larger that sales installed sales on with managers be consumer delivered important channel XX% base. service who $XX,XXX the this We the per at expanded than year combination in base the of last rate and in inside key begin effective consumable adding this system sales We sales. XXXX. believe that We customer consumable eCounter of year and

we addition, leading and and fibrosis. continue of metabolism fields products, in to outside new as introducing such market with develop launching plan by experts In expanding panel into collaboration oncology

positive Society and Both Antonio, at Cancer Hematology for that select as attention presentation diagnostic decision San to base we for American NICE of Symposium. grow technology of biomarkers ASH assessment from as in revenues, such eCounter Kingdom. illustrated garner expect by continued looking the the the and driven recent meeting total signals of health identify therapy continue XX the researchers the to Breast primarily in United December to side, patients a LymphMark by to or over On abstracts in Prosigna

XXXX, Assay do study see ongoing could submissions. generate during regulatory While results from we’re which robust to not by the we expecting X be from Phase followed to LymphMark expect revenue the

second a strategic success. to trajectory launch for Spatial our is Profiler of objective GeoMx long-term Digital on Our

Over is profiling the market primary applications. last in a diverse development a years, we've we've markets. executed large and two involve comprehensive GeoMx, from convinced time, market spatial that into interest two with during The GeoMx coming for that plan become will

is and RNA where The biomarkers of is research protein spatial search for analysis first the expression. translational for the need driving

have unknown cell populations basic sequencing are to cells previously is market that target where located embraced now second discover RNA The these more discovery single-cell for within show technologies and these hungry are tissues. where scientists research will

required with the to these serve both GeoMx We of markets. have engineered capabilities

trial expand sequencers. by required samples launch ultra-high we that has discovery on protein focused throughput the intend expression and introducing flex XXXX eCounter research high hundreds RNA clinical profiling XXXX, to who officially using assays as Our of researchers value translational read the out is both FFPE system. and on provide process that GeoMx can RNA basic can an next-generation to ubiquitous GeoMx analyzed In be

single believe cell replicate most will the the Following the success we strategies popular technologies. that of

less our market profiling, While GeoMx field the this unique used the well spatial to to develops. by for and the and to and Last in at on Technology to how that Advances of Genomics to week, will believe only growing research. the will on Genome the not or researchers entry positioned the we product power market shape Meeting earlier help into the seized Inaugural the be edge capitalize we technology be introduce discovery opportunity Spatial presented GeoMx AGBT of bleeding Biology and hold Summit profile

Our and Summit accept busy early a many attendees, week. the nearly the events through whom Spatial a flew tone XXX for GeoMx in for of crowd day of a

During important across Institutes session from our morning X,XXX generated on there the which of spatial new different as few beta the RNAs data after sharing the six the plenary in tumor first highlighted their capability, during profiled Broad conference, an instruments, receiving GeoMx collaborators lab weeks types. the first

DeciBio meeting, presentation a annual GeoMx day attendees the performed this and our online profiling we was substantial XX the the Spatial three be Group simulated substantial This by by of into emerges and of total as published Over of the a theme created as in and included spatial emerging that using GeoMx months. follows researchers other XXXs leads technology. interest forward our buzz. meeting oral GeoMx of of major to AGBT by the the most technologies would of attendees at of theme mind well that front next two orders survey the over Program, presentations XXX which look GeoMx their converts in of researchers. data workshop week, presented the and Access earlier experience six getting AGBT new identified exciting customers In generated the Overall, top as the associated nearly who posters of contained differing GeoMx audience as Technology our DSP

pricing. official commercial customer unveil Meeting a Our translational and annual target during who and researchers form is take in the launch GeoMx AACR Atlanta. consumable cancer core base now place specifications, the few our weeks The the away details of focus panels and launch systems just will of eCounter will of will the

from launch TAP Mayo the by presentations at our University event customers access include Clinic. Stanford customers will and Our early

than GeoMx abstract be The review will and our publications of addition, provide GeoMx companies capabilities These a be digital by compelling Technology will platform. first build include the the In dozen that under spatial during beginning April the installations at biopharma profiling previously generated studies should illustrations unique of by and systems presented more the researchers third Program. will three academic launch upon and of the quarter. XX followed studies peer least presented data, commercial Access

the second it expect come exceptional hands that This getting look to XXXX support of beyond. an Therefore, the we position forward for success ensure will to of to leading in the While the level customers having from into pace our research even top insulation will that be us. ensure manage enjoy have priority GeoMx XXXX that service and we half institutions, be GeoMx require that of and the important experience. spending will to more to customers they of user

through beta several months, to over installations are that guide required weeks GeoMx them the a we approximately install past experiments. their found train the users During system, and its three

under the streamline expect we to bring by operate process this two system, this just per XXXX. high weeks model to we to balance touch timeline plan through to of down While XXXX, the

during of expect the XX year. book last during XX a likely to the install half that we orders incremental of received second The preorders to XXXX, we be are to GeoMx keep approximately us will on result, launch busy go GeoMx As second list XXXX. We will believe half in in wait beginning XXXX. year our revenue through accelerate and and fulfilled the to growth that the our the XXXX of

in grow which will the to estimates Given of up throughput the of we the our that critical market will it’s & commercializing skilled to & made our about in arrays launch platform our GeoMx magnitude Seq resources $X incorporated attention have about a XX-fold. received XXXX, and third is chemistry parallels in addressable strategic platform it sequencing billion entire use to objective XXXX. to the and GeoMx, which advance towards which allowed continue substantial X,XXX of Hyb to us Seq barcodes our program opportunity, commercial XXXX, And We the the deserves. invest we order increase Hyb progress. In contain to

each roughly prototype modified faster used in Our SPRINT XX times previously than has of delivered instruments proof-of-concept now instruments our XXX is studies. contractor which the manufacturer

illustrate week, a for sequence last Conference entire University at Hyb sequencing testing. of the X,XXX that highlighted collaborators progress all antibiotic applications. of to Cambridge independent field the from and the first AGBT Institutes clinical used gene, barcodes Hyb Seq-enabled and we're susceptibility they presented answer workflow. Broad key using & chemistry sample a presented data disease, oncology, technique region the Seq the our cultural & the making coding In presented we at pathogen TPXX In identification infectious our to three phenotypic studies full-skilled of where field rapid collaborators and our During the unique the

proposition HexSembler called Hyb a & & own a and genomic attention end-to-end pipeline AGBT of variance. healthy believe scientists seem rapid to that hungry alternative differentiated time. platforms landscape. & turnaround is the for Seq potential customers Seq presented NanoString's Hyb accurately and and in to market detect NGS We Hyb Seq appreciate sequencing to assemble the received value and is Finally, amount well designed understand competitive of simplicity providing novel the that analysis readout and

Seq major sample on for a progress the off displayed present Hyb we tumor focused us when panel. the during during we the XXXX, technical gene During requirements, increasing simultaneously updating you the on the Association of course of on & forward update Molecular profiled solid Pathology of The the from we’re to next fourth program on meantime, look number reducing and to In Meetings expression. future quarter and targets data platform the for use this plan calls. our refining

will QX for targets for over financial Now, to and turn XXXX. the Tom I results call our review our financial to outline

Tom Bailey

Brad. with begin by our fourth XXXX Thanks conclude results and reviewing I'll I XXXX. quarter then and will our outlook for fiscal

quarter was revenue above XX.X of and XX%. QX represents service year-over-year which XXXX, products fourth of guidance For the is high-end growth and million our the of

increase in our strong Our million reflecting posted XX% year. excluding and Access by in cleanup mix the fully over million, some expense Life collaborations driven for which panel items. sales instruments was Program was of Prosigna prior by product increase on was driven investment product Prosigna in we received Research. an sales Service XX.X GeoMx was were was DSP. with as year-over-year million year. Research consumable XX.X XX.X science million, received the increase Lam yearend adoption. sales & XX% the revenue driven consumable an X.X X.X of service included with and X.X collaboration and Hyb revenue X.X balance of as service collaboration. This growth, by by revenue This our growth XX% X.X The million, partnership margin by the sales. derived well from from million over cash our cash our instruments collaborators from over Revenue of year and XX% million million. Seq, from of Technology recognized revenue prior R&D Celgene was was with prior funded Gross is a was derived XX%. primarily Lam driven non-cash revenue majority

Sarbanes-Oxley of fees Our year. X% result professional increased incurred and SG&A increase a in million This our audit prior over expense of compliance activities. the was by XX.X an from

billion. the quarter For amortization and expense compensation stock-based the X.X fourth and cash, depreciation was of short-term and million was XX equivalents with expense quarter, X.X cash million ended We investments.

our and growth. representing was range. XX% year was with guided product XX.X service previously in the high-end full XXXX, XX% the line guidance, our year-over-year above revenue Gross For of our margin raised million,

above Our the our total driven and XXXX, R&D was expense for of investments million primarily about support DSP. guidance, prepare to launch X.X made by GeoMx

conclude used the the XXXX. in was line guidance was total our of cash XX.X I'll our of expenditures financial for operating my with Our activities with our SG&A also expense line comments and in capital outlook now million guidance.

XXX For XXXX, we representing to XX% growth expect product and service revenue of total XX XX%. million million to of annual

the the expect We to growth for launch and revenue XXXX instant to half second following in by half revenue be the GeoMx. driven primarily products in strengthen commercial of of consumable first nCounter

come million XX base XX product expect to from our business. service million that revenues of We total and

and expect with Prosigna. We core consumer our with including $XX,XXX year line to per total trajectory install in nCounter of consistent XXXX with business be pull-through $XX,XXX to last revenue system instrument

of pattern the half similar and year a see reported revenue seasonal first to of our of in XX% nCounter the expect We second in half. base the roughly XX%

from We the in year, recognize in million expect GeoMx of that received installation instrument program to XX XXXX. our $X approximately of the revenue priority XX second $X to to the preorders of half we reflecting under GeoMx site million

partnering worth It's which absence of We million will we of expect revenue. be XXX any activity, recognition deferred million, any last recognition revenue for million of from total XXXX noting XXX of approximately revenue the in collaborations. collaboration material the includes $XX year to expect that new

our to nCounter impact positive of consumable we offsetting in of outlook leverage the quarter rate DSP impact consists margin revenue. operating GeoMx and one our instruments gross operating entirely by with gross in in realize XXXX. expenses growing In which This and of margin the consistent of of increasing core expect be the business the sales, almost XXXX, sales to of about the growth service of XX% reflects XX%, range expect significant product We in balance the XXXX. at to

expenses, a reported above and expect XXXX. we million XX development in record the million research we or just XX amount For slightly to

total expenditures be by of third We our planned to expect from offset support payments about Lam. one

XX we an increase rate than growth For expenses less to compared and of report to overall selling, as XX to of revenue growth. being administrative these our to X% million general expenses, expect X% XXXX with million, of substantially expected our

As upon we compensation in to expected other expenses capital our for items, Planned XX which million, interest orders million. other and expected net and GeoMx increase expenses installations approximately Stock-based be with approximately to cash of may $XX be the XXXX, and trajectory expected general and million interest expense. our working to approximately our $X XXXX $X be could expect depending impact of $X are levels the capital portion inventory expenditures receivables. for million, and of are DSP needs million between necessary representing

Lastly, cash total expenditures $XX XXXX. between used million and million in same is as in capital approximately is $XX operating the which activities XXXX, for expected to

we to million of $X service For including in million about XX XX revenue. quarter, product first XX expect million revenue million, collaboration total to million approximately and revenue and the XX in

Now, I the comments. will for closing over turn call our Brad to

Brad Gray

Thanks, Tom.

launch a XXXX, wave as returning double-digit transition next we our groove NanoString reposition enabled expect got accordingly. will of GeoMx to the its by several the years that Company the profiling XXXX, to multiplatform a spatial During to digital We research growth. company. spatial growth back, In and bring profile accelerate the nCounter we rate believe

With lines to that, I'll We open questions. multiyear for expect ride. up be it the an exciting your


from Brennan comment of line Daniel question first comes Our the Instructions] from UBS. [Operator or

is line Your open.

Daniel Brennan

XXXX. think I think number leads, want there I of in there? I terms in versus mentioned a expand can are anything you you maybe but the you off or that as of the bit year Maybe about start little you you think what developing mentioned, you is, not a and this Brad, more addressing market maybe how there. And that feedback with of to of XXXX AGBT guess XXXX? if I some significant learn market

Brad Gray

the presenting the opportunity cells from this again spatial that happened expectations. interest at where I again only where is of at for time basic one for the Program, other Atlas looking GeoMx's largely the across the, several where and profiling going research vary in addressed really much the Technology first their those and we market spatial very ago, companies were spatial talking that's and the the needs think that translational on on exceeded position first of This a about logical there our which customers weren't the for for years. and Program demand it Priority XX expectations collaborators have spatial been our community overwhelming. classic in tissues. But that, DSP we in previous from Site juncture, really year, as with possible idea several the at of efforts instruments the the whole were by every and happened product was profiling profiling sequencing tissues our phase happened jobs with genomics AGBT, presold where we genomics, we translational level and for surprised idea research year they we A enthusiasm at or last the genomics week Human spatial Cell the market, our reviewed of Access and will next

that by our year. week, AGBT other on voices groups we open as when a next-generation really is like the rewarding primarily well unlock really for as expect sequencing the big a to we be we’re at genomics we'll spend at are actual product who was posters leads and leading the literally researcher into positively where we and was on XXXX about bright felt those to having really Spatial surprised which of focus it I our characterized being that’s And last to GeoMx. early centers traditional hope developing workshop, think the next hear symposiums, our really Broad so, in enthusiasm from year in readout represented institutions week, with genome hundreds really going next is we saying who next in embracing the our the the way. said, frontier But demand And this to to overwhelm companies purchase will not at orders, the we but captured that's were by up who translational booth last AGBT. to the as overwhelmingly, And in leading enabled that that seems Spatial degree the spatial following community at year up XXXX. leads of be

Daniel Brennan

kind terms you And to given you’re might in nascent and in thought Can hiring customers walk this of sure number the of share And terms maybe the is growing market through you the making first terms your balancing process the quality in this customers with kind of wait as trying ramp just the kind too installation process? terms time of new long? same a the additional on and goes launch like of the for focus to that or plan capture high lot be you how possibly where possible. of large the of kind placement focus follow-up do the a there mover of competitors make or please in front of -- at interesting not how coming? year, place in that a In

Brad Gray

we’re Program, on demand actual in which with exists people, demand. GeoMx second I that even word fulfillment capturing delivery. focused the instrument first Priority you saw And thing captured the us of to six Site well of very execute of of advance that from course is ahead the XXXX So, committed think that orders of well months well half

time. People We access continue they as fulfillment as new will We continue may expect for will take exciting that knowing not line they get do throughout that still. will to in an standing those though doing even to technology we’re take of can. words fast orders some the XXXX, get

XX how the arrive of market When in the that that of asked pace to logic. half, systems. us you in any XX kind expect through of of competitive we installed me seven our far moderation systems that sort disadvantage Remember, guidance sort second risk or do expect let on the estimate have insulations walk opportunity. of so we you we do to So, missing installed puts any an at

our That three have all terms the each means two their we to relatively will Those get if from from go that experiments. up of weeks the the way up away systems the that development. system installing now a to XX teams, to that, to in done. I installation with customer to half year, teams experience in the early is So running training able early right their scale ahead start actually took and first all second and to hands if support in XX the of still installations its be team customer holding I installations will And be three get done. able from

I basically in our teams end to a assume scale XX. the rang the have balance So, high-quality assumed of of continually that bottom end I I that top supporting my up the way second customers through of half, three range the and

really we that. that’s So, how arrived at

might as guidance did will course think gain the for really I more for to initiate experience the the responsible our of desire this rest we we and most installations of updates think course then place absolute we installation will to seven on of pace what the it year. you based and installations, white-glove we provide the on year. of the But us provide over service, done is is right be that we in

Daniel Brennan

this, pipeline the in don’t since on plus clarity much Morgan? provide, going gave up. is JP clarity XX What should of story. that give orders? but an terms you terms want of expect of we pipeline forward follow we exciting at orders the front in to should you in part And Will I’m of terms too expect on final of this DSP on what sure, One color you

Brad Gray

and earnings which that AAC, quarter likely By we QX next held will launch early finish The May. call, in point call we've been in traditionally will our have our the time, that through event. we'll our be first

and commercial customers will to the at that the will launch month on dialogs we some That after nature than being the I able be more think of we time. provide less of said, product. color volume official a be

a commercial orders So, few launch. full in expect don't first I the after wave of our miraculous days

I evolving provide absolute probably think our order that. will best said, we will will the we course about transparency So, and reticent on color, to the of can as do year this be but degree we business. flow the very funnel. some is But now you of the over in the We for understand part we demand important and hunger provide commentary of


you. Thank

Our comes from JP the or next question Tycho Peterson of Morgan. from comment line

line now Your is open.

Tejas Savant

on Tejas is for Tycho. This

today? Just update where know wanted I about you that point process you've stands for chain box on done be in DSP, of an us the some in supply at work on some past, this color chain terms get supply talked on to sort and the to the optimized consumables fairly being of the front. Can just give

Tom Bailey

our demand be instruments We will be as manufacturer for us. -- are for instruments an XXXX placed should order contract the instruments at fulfill that installations. more than promotional our GeoMx will So, NanoString for

instrument the want expected measurement, sure don’t late before second them of as contract robust to lot I they're of instruments the We make those in bring through of in the We we to begin those in that will inventory expect to a receipt put QC of the load customers hands place software, internal our receive risk in first see those quarter. in and the from third sometime timeline of in quarter. those manufacturer. year the with half

are the selection very allows and people as past image GeoMx our the timelines, interact customer of in and of experience, the the and launch. discussed of is co-visualization AGBT development the the right a important customers then of terms firsthand, saw software data we software the to region ahead getting part in and heavily interest have that of hugely we with that invested In who the data, imaging

don’t set very ahead of the the that line of a see work are know so we’re development terms debug. capabilities, second fully terms of I set far of there. most along In functional timelines to optimize software items that of important completion the and remains in who Again, that to quarter. activity risk of you a saw that more software People AGBT

it's in So, of are an situations place demand don't either. overall, actually I'd here, supply think I a we're actually say, moderated sense terms are at in Most in a their the situation situation end. interesting I launch in some moderated. don’t the launch we’re think that's pace.

of in and good and the bring balance control situation fastest of a of where meeting customers that’s potential one What's customers customer while be by we and of experience. because our about to delight experience. between pace thinking we the long-term degree We’re them? revenue scaling the our that’s on making for investments launch over, course continuing up recognition the And there modulating we that can growth reasonable something a have capacity revenue right

Tejas Savant

And flat to about profile us for business, to through growth and year-over-year then market revenue be nCounter on talked assumptions a of you largely call is flat what's the walk expected year-over-year. there? sort you of your terms SPRINT going just the your making underlying base turning Can in just that in

Brad Gray

was just over X% what is approximately revenue for delivered XXXX. XXXX several we've the actually down growth from last instrument flat Sure, years. XXXX. was XXXX

done an ourselves we found of good So selling are for years, penetrating oncology situation job a the a that we into pretty where several we already. in last market

accounts the stage. And small Company us. companies like the areas smaller in into in are had the mostly new past beyond in the instruments, that than neurology down are immunology, just maybe selling we new penetrated biopharma then, We’re that's formation for diversify which SPRINT where our with in oncology markets we further market

parts of think much I the that then will So will to XXXX market oncology. same and same GeoMx move selling to be of trend technical continuing sales beyond and set yet that haven't continue those we’re dynamics our we've oncology on coordination we reached the in that time as that take of trading instrument reps added. in burden asking the at same very Remember the with instrument well specialist our

each in more individual year we’re So, asking terms of our what is actually quite channel this capture. a bit order of

course can still the generate of on healthy But standing number business instrument that stream, our on growth pull-through while like not it's nCounter with the So, couple next our very we’re every place continuing think of platform, double-digit GeoMx the we top by to years for launch. consumable layering from still. year same I of

Tejas Savant

one seems a like late bit -- models. least in versus collaboration came revenue, one then final our looks And here little and it at

also, push to recognition walk a through & So, behind slight can us there? Lam related the was sort of Hyb And revenue timing? it drivers you Seq in all out

Tom Bailey

Yes, it's Thomas. actually

Specifically revenue, determined with comment Tejas pacing is the -- [Benoit] on recognition The program. upon revenue the Hyb the the of on & respect Seq. collaboration revenue the the to

revenue recognition just fluctuate depending from upon is done to when they quarter. bit little that what exactly activity quarter a so can done get and And

things it's really So, based always and in to we opposed activity perfection. to an something that could dial

related fluctuating you to So, from some it. saw And bit to thing as really catch of revenue the is this in of There the up. some and and quarter that XXXX, revenue throughout likely happening And well. That’s timing well. actual a extent that. of recognition well. Celgene quarter as the the for reported year for course much some that true a to revenue collaboration is for It's that’s then probably to of reason collaboration fluctuation a periods Celgene lesser in subsequent as

Brad Gray

Really, market. real many do with things a well. product want market, Seq that bandwidth on at exciting mean Company more think commercial we on your of opportunities GeoMx that than XXXX really to to I I to think, very, throw GeoMx very and question the so the based, are part I'd the sequencers find on time build Tejas, technical you full opportunity come efforts and now lines the top longer very slip only development reluctant actually phases of take opportunity on maybe course think changing. very have bandwidth and slip things in work a reframing from here. first, sometimes early We we least and not are and of several the timeline. early say as little our in XXXX strategic new really of to challenging exciting XXXX and year and answer, there launch focused and the a the in once-in-a-lifetime market a is quarters management about could to to other timelines will the capturing its over launch a two play we’ve & Hyb Yes, to I a take XXXX,

into pace allow factor Seq fully growth program at By a we important we & of be to as the we another an moving in XXXX. XXXX, national developed GeoMx and that’s mature, Hyb well. allow So, wave to way, high-quality in can beginning add


you. Thank

question Schulte Our comment Baird. comes or next from Catherine line the of from

now Your line is open.

Catherine Schulte

constrain smooth or ensure open partnership the point, resource open potential the sequencing a rate to either market? up placement at this you GeoMx commercial a would ramp launch be after your to as to a Given now

Brad Gray

think experience. the ever, Catherine customer than our to I focus we quarters control these now more few that is I in of think launch first and on want experience

little very sure in we with customers, would and at to to into else think So, partnership product not worried near while to I change are to could we nCounter future. in don’t this delight looking our our the XXXX That we to this we’re installed focused anyone make be on point the need selling anybody. destiny base very I partner a of term the frankly in the and in exciting hand time. want

in for platform that us, this But course two GeoMx commercial for go partnership loan larger could launch warrant revisit very is may sales. opening and to expect urgent channel an up the pathology your priority much longer think I a us events market be watch of that those XXXX. bring that XXXX clinical -- high-quality to would to a for so us out read maybe generation having of that way cause hopefully and neither executing applications to the and sequencing course opportunity the us, next of clinical in could

Catherine Schulte

been mentioned of a then does interested ago, that level much that interest nCounter users And today? roughly GeoMx. about year XX% Where you in higher. were I assume

Brad Gray

Yes, higher, base, XX% On would modestly an bigger. XX% to XX% say installed today. I it's probably it's

XX% XX% base So, XX% engaged. a math, and are to own would have They XX% people if increase nCounter install about been of total XXX number do the base. ago the a who today in instruments that’s now install its you of year of XXX instruments

translational we’re on that’s still what up the official a Remember, and I growth the So, research interest call level. coming substantial or launch. text

that go takes what meeting meeting major just the number to and we to place really technology just increase So, time which month’s one when expect number unfairly for year, cancer I this of a began researchers, the can do.

Catherine Schulte

And then one for last me.

timing You readout trial Celgene steps on mentioned following robust is trial what this readout, Any are successful? that potential year. the next then, there? And if the thoughts

Brad Gray

to so resource about the will public. you is now, in the the spring. those primary XXXX. that is you And go which for a today of for following will a trial for month Celgene if the clinicaltrial.gov non-confidential to clinical think for scheduled results time would timing make some final in of official a see two that sort they to we submission it expect I when from readout, or result, positive how sometime preparations be up later I P&A expect and analysis But begin


[Operator question of or Schenkel from line Cowen Instructions] Our from comes Doug the next Company. and comment

Doug Schenkel

to levels that. XXXX? upside like pull-through force you bit Wieschhaus the believe on consumable than your I to nCounter seems range the maximum considering a was Could believe this be Adam XXXX. you quite Hi, Doug. be is as guided for ramping still XXXX augmented still could at there sales in It is same this higher in it pull-through

Brad Gray

XX% end full top of That’s don't gave at have was full pull-through the the been last for ended around one The the XX,XXX going on But of things year No, range this the it's a in the our question, for time. year, XX,XXX now. couple to last upside see is, Adam. near installed the I base a range year. tremendous year. we bigger $XX,XXX up to amount over

we’re than of expanded SPRINT the process laboratories sales our is, the smaller And adding instrument our channel half increase that installed customer in so, many placement. is customer more system base. base of towards consumable And to of penetration ways in base continues two addressed existing that new the accounting shift additional with for

natural as drag is that of so, a our to customer larger a pull-through system And smaller fraction labs continue base. be very consumable on

we current year. to system is $XX,XXX So heading unit range to think we expect per this into be in XXXX, $XX,XXX where our still

Doug Schenkel

level in all initial GeoMx you your such missed you of have rollout? SPRING And with would characterize as does that demand that a relative you've I to earlier does three-week period instrument? short installations the nCounter? how your customers that And but how to compared And seen previous maybe it, rollout all

Brad Gray

entering the And anything market in a in and The rollouts. unique workflow. or it expression finding it system it's as on ever when bumping was was translational there developing, pass is the kind there as RNA have certainly, of microarrays real kind research at been profiling contrast, hand been launched time, But NanoString spatial on no one unlike tremendous at demand for sitting and alongside mix that of was, high GeoMx latent as a the sitting cell on we single where quantitative First, place my has site see for have just of other different without demand gene career. such flex and seat. solutions, on lot at very different where unlike very is that’s is a fortunate that that of the GeoMx market growth nCounter entering I've with profile the a anything had simple a was room latent seen in into distinctive PCR to of situation plenty we’re lot In product with there And flex alternative was. very as compelling so, a at in a market a to demand XXXX system than here competitors. nCounter that's technologies

educate effort program, cetera has used XX we've this development XX access to market very major the market course careful pre-launch So et in of a that opportunity. addition, about our to months, meetings, executing been for technology

And so, of a evidenced as amount with certain we’re by market preorders. coming the to demand

So it’s exciting a one. very situation, a different very it’s

in analysis merging THE before. of takes weeks nConnter it I've deploy set to interest, capacity to is images and reason. procedures the three the acts for GeoMx selection do regions with liquid install in anything GeoMx of those longer nature, reasonably handling and of et either interact cetera seen that workflow. that that’s system ever systems in use simple a software high unlike is to through a data nCounter a bit simple images In than it's terms system very of of to from you that common the a to novel is with of good install, contrast, that researchers your actually system flex GeoMx In quite really then

new terms three And in and of operations done. of analysis, so, experimental in right why in time focus now and the design weeks. the first of to both terms to workflow that’s introduce requires taking handhold some these they the haven't them And it

to more it and Now should our own use how an come training other that is as relatively down these effectively how will as meaningfully, possible. of help nCounter nCounter. have of of probably GeoMx, you course, system? nCounter to to and you've you kind of don't the it it’s weeks, out know as installation the say of number box part down reach one that number But efficient at vast the We two would come but Does never majority to think Today, team experience efficiently learn asked. focused use system, if better would you over train time, we get quite accelerate simple operations. and on overall the a it. experience I how to small already have honestly, we course already margin teach a that’s the if

in increase a up. marginal site only brought with the the So, can makes it be speed which


this in additional any turn questions Thank for queue conference I'd on back like to the closing over to you. the time. I’m management showing at remarks.

Doug Farrell

Thank you much. very

thanks will today. and call miss a for callers, is XXXXXXX. XXX-XXX-XXXX. much Callers call, minutes in very The the you Thank time there please did joining dialing the If conference or XXX-XXX-XXXX so. any same dial callers. for replay by of can you code the access portion that International XX domestic for your of the available us be pass next


gentlemen, you conference. the for thank This and Ladies in concludes program. participating today’s

wonderful You day. may now Everyone a disconnect. have