Nanostring (NSTG)

Doug Farrell VP, IR
Brad Gray President and CEO
Tom Bailey CFO
Tycho Peterson JPMorgan
Dan Arias Stifel
Dan Brennan UBS
Thomas Peterson Bard
Doug Schenkel Cowen
Yih-Ming Tu Morgan Stanley
Call transcript
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Good day, and thank you for standing by. Welcome to the NanoString's First Quarter 2021 Operating Results. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Doug Farrell, Vice President of Investor Relations and Corporate Communications. Please go ahead.

Doug Farrell

operator. you, Thank everyone. Good afternoon,

quarter on President the Earlier Brad me the today we call CEO; and our first for and results CFO. our Gray, XXXX. Tom released Joining financial is of Bailey, today, our

and strategic that the for During statements success forward-looking, launches. addressable expanding anticipated of future and about make and development trends our impact including business the penetrating are growth, and this focus projections, related recent may and planned call, COVID-XX, we status and statements objectives financial factors, of markets, prospects product

the subject and time Forward-looking risks SEC statements are to in time that and filings. from uncertainties, described including risks are our uncertainties to

Our results no Tom the results and call, projected, update and materially be Later we those discussing our in our obligation will may guidance. financial undertake these differ from to forward-looking statements.

as non-GAAP selected be described release. prepared, measures all financial have which adjusted detail financial measures, a Throughout in supplement GAAP are noted. calculation our unless press otherwise of call, in to measures, We the GAAP, the will

June. turn remind of to With I'd Jefferies to UBS to over building the posted We'll You of many financial I'd Investor To the XXXX. adjusted each models, you financial in be Brad. Healthcare tab month. GAAP as call measures of forward this non-GAAP having well and rationale as and to speak homepage investors limitations Relations have everyone the like we'll includes of description, that, Conference data or in later measures also reconciliation be Healthcare also and look opportunity in analysts for of first the that to other there. referenced we in with our press measure early find aid conference the exhibits to release. presentation under non-GAAP can like our their that information the for participating the the quarter selected We attending

Brad Gray

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

take at as Vice Dana These is to unique, spatial of Associate of on to commitment by two Cancer this Advanced Group joined data George like Data during Dr. be tremendous and Chief I'd Data and directors and for that President, update, biology, presented and to period Board is quarterly a underscore Artificial growth, to up of neuroscience. our for Oracle. from year Rollison and have XXXX honored Analytics on I'm new appointments welcome Janet Intelligence Vice opportunity is to Janet with Autonomous Director a to spanning and COVID-XX Science the capitalizing Center. an quarter, opportunities Dana President our Enterprise, exciting provide Moffit the biology revolutionizing Spatial I informatics research Board. shaping Machine Before NanoString. Center Learning Officer oncology join to first the big field

extended in a launch a to Atlas record with our of During exceeding the The market our and Transcriptome instrument growth. lead XX% this dynamic new is range XX% QX, year-on-year GeoMx DSP Access Technology its to more more a than our with than decade business the the from of start record GeoMx projects demand new Meanwhile, Program continuing after sustained instruments nCounter our introduction. and steady drove new XX% Whole great off we orders GeoMx of growth platform's during XX setting guided quarter. durable

Our particularly increasing year-on-year. nCounter revenues were instrument XX% strong,

does historical COVID-XX consumable to relative sales through per reducing nCounter's nCounter and instrument pull While are through utilization, continue our to GeoMx nCounter impact towering the the pandemic, levels. instrument,

financial call in results on our of outlook to for update the quarter through turning our in this before nCounter focused over XXXX, will continue Tom the related first we operating with details to and consumables that to the reductions to of review for objectives strategic half lab I impact on We expect and want second improvement an mid-year the during activity XXXX. the QX. pandemic X the provide

Our first leadership DSP strategic spatial biology. GeoMx for is extend in to XXXX, objective

sell driving to for systems opportunity GeoMx quarter, of the first QX. for than than GeoMx instruments the on the readout With is and assays NGS of accelerating during readout more capitalized revenue a sold. the of half accounting GeoMx NGS consumable large we GeoMx also with sold half During to readout Illumina installed sequencers. more NGS base consumables

point predict the adoption utilization GeoMx attached systems of readout too NGS remains use it Early nCounter to that will While consumable GeoMx' early NGS. differ systems readout. to how in cycle between to signs versus pull-through strong

with to collaboration We recently biology and announced of to their with Illumina the of We power to portfolio Illumina closely NGS. with paired generation therapeutics. company, spatial development are the a Accelerator working a Doloromics, pain illustrate GeoMx new new of bring

to The and plan neurology. COVID a NanoString a quarter neurodegenerative human customers not in Genome organism in offered and a critical with launch We've with serves XX% is engaged market first number we've and our samples. the XX% indicator with test for which generated research. from the assay in as positive mouse build customers basic the was known Program to needs providing WTA, quarter the genome-wide of Technology We The tissue powerful short. historically we launch start-up version WTA the and immunology the least at first through The numerous accounts Accelerator researchers Grant ordered of for DSP first as traditionally funding in strong for providing were event launching by to to Advances forward, Biology Access site. of perfect quarter the our the transcript Looking discovery disease WTA in GeoMx Technology, fields WTA of market of oncology, important The leading March our provide Illumina the to each or opportunity introduce the about such Atlas, us GeoMx about second a that any of most with of There whole service, disease-focused ever and a was domain. to DSP allows company. that Whole conference is projects fields human who've dozen the the the or for Transcriptome opportunity researcher the WTA, TAP the momentum of one panels studying at Atlas, increasing the believe plan during a discovery we presented on launch over WTA WTA We drive prior orders abstracts record such TAP year. AGBT, been provides in research. addressing venue immuno-oncology, AGBT, of model

accounted QX assay projects, WTA of quarter. XX% for XX% during fourth from the about than TAP Our projects up of top more all

per about $X,XXX per of out captures panels. WTA GeoMx in at that sample revenue to opening addition WTA panels, generates from research, read using sample priced previous new report In areas most than which Xx sample, we GeoMx nCounter. the more about significantly revenue per

$X that we GeoMx key growth about WTA estimated be is XXXX to expect addressable per will catalyst year. and market in for the what We beyond, a expanding research billion overall

and largest readout shift been extend Now accounting and and I'd for a featured of strong market to research by fast the for towards simple about expect and been like customers, our platform continue leadership. of popular best-in-class analysis. and is has XX% GeoMx, plex we translational Protein spatial GeoMx spatial platform. time, the nCounter of for any the highest research to This translational is assays on TAM menu protein gears turnaround have we by antibody workflow date. remain application to underappreciated markets, to where publications which biology peer-reviewed the analysis, XX% NanoString protein preferred where the for always research translational and enabled GeoMx a focused are

Institute, discover Broad new the using driver researchers GeoMx oral select cell of general develop that recent than biology form XX% tumors, about by leading demonstrate treat. of GeoMx during Peer-reviewed QX, GeoMx position Researches GeoMx to used Association Christina and research immune was a A infiltration comprehensive of identify explain GeoMx spatial nature single-cell During papers University disease Cancer of to Dr. which describing is that ordered be gave research. her sales. novel Research, biomarkers Sandra investigators from how Weill metastatic be body generate approximately occupies. conjunction to productivity in that AACR readout. peer-reviewed of may presentation of published with last The X an to of Breast likely network of more someday COVID-XX indicator Beth used patients will Atlas international from the used we're spatial market sequencing have the and from X readout dataset XX% of consumable Researchers cancer. fundamentally the metastatic GeoMx Georgetown of QX, harder a for the tumors benefit or Dr. papers biomarkers demonstrate were for therapies. much nCounter used demand. GeoMx and to Cornell, prominently Overall, GeoMx Conference, help during unique from with Stanford (inaudible) record spatial about results an importance and in of of in Consortium, to GeoMx future X/X. Israel, nCounter by cancer studies the GeoMx with may including an to important publications capability assays genomic fatalities. featured the Group delighted X breast biology Atlas studies, month. group permitted why instruments publications with Swain's the expansion primary And increasing to COVID-XX-induced RNA a novel from American HERX-positive GeoMx to so mechanisms number translational continue Curtis the GeoMx the

subcellular the of presented Molecular that Conference, Molecular customer to RNA, our AGBT interest objective capture advance the handles SMI seed postures including to the meeting, Imager, -- cell commercial prep, the high-flex We at Imager, Our presentations for data The is the external resolutions, of Hutch our and commercial for second imaging, market year. and single to X short, customers even development quantification. Cancer instrument, X collaborators Spatial and the and to SMI Imager sample at our the next enable imaging for using Dana-Farber single launch new Fred was showcased and planned the to first and Centers. proteins is Molecular from down were robust. strategic designed at perform a Spatial or Spatial

applications. While platforms of in best-in-class conducting our high-impact Interest SMI, the for of previewed help and emergent our AGBT, has Access In from us seed the believe we thought customer collaborators that with booked the biology. feedback SMI we Based objective that small be complementary initial announced number research of leaders SMI the were for Technology been sensitivity, covers a we've SMI Program already That amongst spatial projects are and on single enough build awareness cell will continuum resolutions research, multi-cell resolution plex subcell also portfolio and the at of keep industry-leading imaging will and the we XXXX. other to demonstrated provide of a GeoMx of busy the highly the SMI key QX, a and believe TAP and market. with spatial projects imagers. market high, and and balance

We SMI to in updating billion serve the expect We double the on you launch launch size this today commercial program billion ahead. of for half as over biology of the of research $X spatial advances track it during XXXX, years from market our second on $X and that to I we future. forward remain the the the will look

objective to is business nCounter levels. to growth third strategic return pre-Covid Our our

system of growth franchise about even impressive nCounter a The markets. of business. continue nCounter we about is coming researchers. XX new at year-on-year our XX% to XX% over nCounter-based generated we from of where presented. systems, exited for platform QX, quarter oncology the We showing nCounter remains research into nCounter Demand at of as new portfolio abstracts in the conference, nCounter another The a set choice were AACR increase a base had an diverse an prior first X,XXX installed systems our of with expand nearly During year.

both nCounters about new for gene sold expression bundled and of XX% XX% were GeoMx biology about QX, system. for During sold spatial with a were

our were our customer targeted driven of customers panels research, nCounters host in were as of to of contributed applications. diversification our XX% While other growth. core towards nCounter organ response, XX% business sorry, new reflected objectives. consumable fibrosis of also were oncology sold trends -- base progress our roughly and by sold into we're system sales immunology while of Overall, new the and XX% pleased about transplant strategic application towards and with new -- sales nearly I'm

to like over Tom our to Now I'd operating of to review details the the results. turn call

the turn to operating the to call review I'd of Now to Tom our like results. over details

Tom Bailey

Thanks, Brad, all joining us thanks and for today.

to sales. compared from was and end QX derived XXXX, XX% GeoMx in For revenue of March. we revenue first and was $X.X from the million was 'XX growth as $X instruments XX%. approximately QX representing of XX of quarter the was $XX.X product consumable derived high QX service provided up guidance million, million $X.X the above million, year-over-year and shipped

$X.X growth was instrument $XX.X consumable was The nCounter For million, revenue XX%. of of nCounter, growth QX revenue year-over-year million, representing year-over-year XX%. representing QX

As continued provided $XX,XXX customers yielding selected COVID in pull-through to moderate activity of anticipated guidance annualized in March, by in QX. our QX and about nCounter lab geographies,

contemplated, full lab we through the therefore, activity in be in currently in realized modestly is some quarter current may geographies and year to guidance As lower our QX. QX nCounter we about expect pull-through the expected same as persist

guidance DSP or contract nCounter to and quarter continue by growing our recovery TAP GeoMx in growth, a pull-through revenue reiterating was second primarily driven half increasing XX% and base. XX,XXX revenue for the year. are year-over-year anticipate about XX,XXX in the of by for instrument service projects full driven the year, we Service annualized increased $X.X million our We the of to installed

provide Turning or and of a well development product selling have refer lesser QX to our compensation, expansion information typically the expenses. average Adjusted and expected R&D as Relations of be detailed as non-GAAP items. a R&D depreciation onetime investments more to mix measures product where margin was gross to distributed due expected to basis, removes on margins capacity growth adjusted our manufacturing decrease To how of revenue new in tilted the service personnel realized web and prepared. release stock-based non-GAAP reflect for are on QX we our or in Please exhibits offerings. to Investor posted customer certain XX% for investment in also as reflected service QX, support $XX.X adjusted SMI we on supplies which I'll revenue results to gross lower extent, press and research into and XX% made ramp a and impact primarily our page that year-over-year. program. margin timing are TAP product that and service our and markets expense certain a was million, lower. was to prices expenses adjusted

our R&D expense development commercial change improvement expand EBITDA through digital our were offset These in the decrease to from prior initiatives, realized $XX to balance and loss year was customer a support pandemic-related accelerates. spatial of and SMI XX% including the was as Adjusted related savings activities. group by savings year-over-year. increase an SG&A million, investments investments in We in was expense service biology million, will as reductions trade compared of travel made the and expect due certain QX to of expense X% Adjusted marketing SG&A primarily $XX.X year. show initiatives.

gross year March equivalents we the investments. sheet, revenue, are million exited balance for cash, short-term expenses guidance, margin and the envisioning and quarter on the approximately cash our with we reiterating full For our $XXX call. provided financial of as outlook XXXX

revenue revenue seasonal the be half. half XX% at year, with second of to that roughly GeoMx of first the in expect XX% continue is we half to year the about the the a in of second For pattern to reported GeoMx, weighted

reminder, expect we any material future revenue a recorded not collaboration to As be in periods. do

to million GeoMx to year-over-year, For instrument expect $XX $XX guidance XX% service XX% guidance million, with product of of to in representing to about million we revenue million consistent XX% established to assumes $XX of March. revenue assumes growth $XX and revenue growth annual nCounter of million the QX, range GeoMx in year-over-year $XX $XX our revenue. This bookings to million XX%. be and range

closing the turn for over comments. to back call I'll Now Brad

Brad Gray

research, life GeoMx NanoString our of a the hottest our product XXXX of while is has tremendous Tom. driving of customer XXXX franchise, added is Transcriptome has Thanks, and anticipation science Imager The biology. to a commercial of unveiling Molecular market-leading GeoMx in Atlas the launch start. spatial to Spatial our launch. field Whole its portfolio off substantial the momentum

to reach oncology and research Our mainstay customers. of nCounter is the continues platform new

biology. supports balance map strong our substantial we'd to opportunities, that, like our we and With up market are fulfill sheet in universe to to investments our the of for to targeted capture your Our questions. line the confident mission growth open ability


first question line Tycho Peterson comes Instructions] from [Operator the of Your JPMorgan. from

Tycho Peterson

questions, guess, GeoMx is going know to WTA on I late, a Overall, accretive. pull-through I little pull-through. Couple was of bit be

trending? X the you do touch about your in pull-through pull-through there, we then maybe overall So about can quarter funnel as just the on of how building dynamics, and trended we versus how those expectation? think think And kind own WTA

Brad Gray

half and pull-through Yes. that $XX,XXX have management Thanks, was Atlas be revenue QX, exactly in the of second say the was said about WTA pull-through Transcriptome seasonally because to of of launch In the first system Tycho. line per with the launch at was quarter. around beginning in of in per that QX increasing expectations. year, much XX% would Whole XX% the pull-through was year impact. got which began it in third I the the an GeoMx We as would directly more pretty what with

a on on we So expect where where see it. pull-through. QX normally seasonal to basis, relatively right we be low That's want to

Our $XX,XXX guidance full the for to consumable at basis remains $XX,XXX the year pull-through of intact annualized.

Atlas bottom Transcriptome the didn't right until Tycho, the towards implies, of year over to that more see quarter. product major modestly becomes of that part shipping We revenue. the strengthening consumable didn't contributed prepared range that first now, of remark, as revenue consumable I our we We say Whole the March. that the should but Atlas the course in So in to begin expect we're think a Whole end Transcriptome

bigger much contribution only and it of for make overall dollars us our hundred few a thousand So come. to a will was revenue consumable

Tycho Peterson

well. the give sense that a just able to alluded NGS rough of with you you're fully kind to it, ready there? I magnitude to quantify readout us Brad, Are higher you then as but... know being customers not pull-through And of

Brad Gray

we're Just yes, GeoMx, so nCounter to X had a say, and would X that early readout, we that into pull-through, -- far we're (inaudible) is days, but have we I high pull-through just well in figures. that would customers NGS that pattern It's figures seeing we see. a seeing the

far, like And playing it out. it's so looks

Tycho Peterson

And kind front, you a sales here. the efforts on commercial force market. side, touched market then hiring that to curious there's XXX got And if the underway into on two more. I'm One, I questions of little you're tap then proteomics the on reps.

maybe Just how that's bit little talk a going. about

Brad Gray


did think in the any we and that XX% Day proteomics GeoMx to our a do a through market. outlined we're as it's the the way assay huge Investor company I highlight reposition on proteomics in On market that in of research of absolutely front, particularly the research is And translational I contested XX% are is far. appealing December so company. of factor the think trying biology a differentiated don't excels. that been TAM protein have important the marketplace, highly protein, the And spatial place for based proteomics at But overall just GeoMx capabilities publications where

expansion, start. good sales a of terms In things to are off force

the quarter. of of have board We'll with hires continuing made hires quarter first those be We commercial the all throughout having hires goal by to midyear. new second the on make throughout

and it impact position. I X takes on see would to some depending In expect up speed, months of on to to terms their the up commercial come when hires normally, revenue months for our to line,

contribute our the that's So going strength to and second growth half. to really in


from Arias Dan line from comes question Stifel. of the Your next

Dan Arias

to just mixed still labs. level of Just it decentralized of in we've can the of maybe XQ right versus far bag you state in spending might spending in commentary are you that in you -- now? centralized in and us base lab that saw comes increases when more you're terms play bit there gotten extent academic incremental And the sort of extent of and seeing here. and the and bit a the be with help on just Brad, challenges that a XQ. just they environment Anything so expected selling to little comment the can COVID the a the on

Brad Gray

of and original with year spatial powered it's and it's the ended really that that say biology for COVID-XX business of and achieving remind our was I'd pandemic. robust, NanoString. in issued strong up tale installed consumable a full large X a guidance pre-COVID-XX businesses you is our pull-through. Dan. The growth base Sure, I'll XXXX, GeoMx through we

the was this of is in event the wide competitive. many unimpacted X,XXX installed out and year, And So papers acquire working it midst that we're to been our that where a XXXX has major capability like is must area in unimpacted instrument -- nCounter X,XXX In XXXX. made remains approximately reason would and they contrast, across research. -- this high-profile this biology I spatial say there's institutions very of remain coming feel really of in for the a in revolution base

urgently in Some needed COVID-XX not. some related and of to areas and high-priority it

reemerged say the was countries global the In lockdowns in some base installed experienced quarter. a addition, improved QX, utilization during at by geographically, European installed North really base. points partially in And nCounter in has offset would where nCounter the various our I America of challenges

using say the I'd back to second of it and is where their people their points utilization nCounter the vaccines expected half. to sequentially getting the flat hold in improve labs QX, QX overall, right nCounters takes be, So as impact from in is to we about which net-net,

Dan Arias

Very the brought that instrumentation capabilities I specs GeoMx shadows or you of want heard there. I'm have saw platforms Obviously, for few the you just AGBT or apart? you Okay. a anything just of that comes helpful. sort sticking or Maybe spatial. SMI to setting whether out new process customers your informed just the product curious But when anything with the development or suppose. it system, to performance from

Brad Gray


imager what -- that AGBT field. very we of about huge those -- category. spatial the there in out were field products theme players new the the talking offer many this very to so call a previewed positive products most I'd that beginning biology say of for should was in say, at it's We those market of AGBT. and were I overall, feel think would I at there are most

high even subcell offerings, using do or The as to So compete the Imager. offering, for relative some of other products and the the single plex would with that imaging Molecular modality, high and they hundreds plex Spatial compared to positioned X,XXX is very resolution an sensitivity plex other our cell offerings. SMI

really of the that to less portion that a occupy. we're didn't is me anything likely SMI any project. that about the great going So successful market be I at see confident AGBT feel we to made

Dan Arias

one Okay. Maybe and out I'll get SMI, of the on way. just more

I not it for an know those XX running but feel I call, gearing just you think were mean could had I helpful keep be indication sort I whether samples, you like sense aggregate level be last XX% is they that have be up said might you had just at a have systems? to keep that indicator, would if it there a you were mentioned across XX of you What good. to them XX%, instruments plenty receive we work the or that perfect it's utilization busy, and busy. of

Brad Gray


I we of the are perspective. a us opinion And to our power demonstrate percentage really know have very high. from technology. the running going I but our many look have you leaders product same product pushing are have work which, when the number, use key technology eager SMI development limit of program, development high think activities, system and this our I the utilization. access we across very instruments we of at with who every don't We're technology it's course, to


the line Brennan Your comes of from UBS. Dan question next from

Dan Brennan

of Any in you openness, revenues to in obviously, your you will, kind QX. data are QX sequentially, the terms implied if on out QX here year. and this you've wondering guidance in you that relative Just in be think And saw factors discussed what's about seeing you're the tracking change half-weighted lab to labs, more back QX? the then call of going when for up versus

Brad Gray

really QX think access commentary QX have improvement is provided, the expected completely to in lab for is consistent the I no from Yes, we guidance that QX. which with

half. evidence $XX,XXX experienced, the persistent also just improvements in see reiterate, we continuing And was which direct with think consumable an America basis quarter in annualized pretty second I improvements some increase on with was pull-through I we're second first Tom what providing to is of labs in lab being was saw work, the the quarter as that nCounter much of more North there offset think where the began assuming utilization, that maybe were we doing the This consistent as year the Europe, were by at from as the the people guidance more beginning in they back lab, with the -- they March. really in governments to we explicit, people in is in half the outbreaks. their the were in in weakness all of issued discourage what we'll to

and annualized really, half. pull the guidance original through strengthening And Our had anticipated second we're that's no consumables what seeing. nCounter

Dan Brennan

the And XX% it. Got then order above to was XX%. the in terms of it growth, you said

orders last the I year year. throughout grew think

quarter? Or or a the orders an surprising, an first had you because just guys comp, comp maybe strength little on in did that the that bit is was was in dog of the easier surprise for -- just color easier you any order that sorry XQ? the you had So background, in

Brad Gray

say of end great, in order our not came It range. but in the guided quarter top first surprise. was a above the I'd the No, strength slightly

So but as comps well. a harder in we get the were pretty not it, last year I goes pleased by with were year do do as we obviously launch steep on because the surprised curve And it. think

our XX% XX% growth So to order expectation. guided remains

Dan Brennan

of you TAP potential above you think number Could do strength guiding a of do Got that filtering the further that your we in how TAP of it you about growth some TAP. beyond you sequential expect And mentioned, to? Or portend what Obviously, what when then through? nice and in XQ? was about kind in it. guidances that of the in projects strength had think step-up terms set, but that of you're kind

Brad Gray

total projects. of a I'd number Yes, say

Atlas Our performance Whole the with -- the Transcriptome the shift was XQ expectations. preferred of continued expectation, in modality our If strength continued the the there. as line the was towards right anything exceeded it

of the having do to And your of a run through for you quarter XX% TAP orders plays a think I TAP, think time the maybe without period generally the of so were your new people X-month we results got quarter for readout. about how terms only first from you TAP, that that to then back. see NGS run increasingly in your readouts, which project I buy instrument a actual it takes speaking, purchases, a order in the XX% TAPs were to about and -- nCounter we get sort of

order. So it's X instrument actual months to from TAP

TAP terms So sets purchases. in terms of of a second up half a QX in strong instrument GeoMx strong

Dan Brennan

Got But final on in to of it. about be discovery, kind you for now by when it's then one influenced wondering customers the just GeoMx. And think opposed going translational so into you I'm academia, pharma, could to terms give various customers. on mix Obviously, across as CROs, going academia you're color maybe an just what's kind update us of the customers. of more happening

Brad Gray


I'd in You're CRO quarter. the are customer our of discovery direct Academics types, modality. purchases best academics have an markets X:X right, fraction about within visibility and as we more outnumber on GeoMx Dan. pharma exciting the becoming the the first say instrument basis of new increasing a becomes where into an

academic, X/X X/X then and CROs. biopharma So

that's relative So of academics enrichment to biopharma. continued a


the from question Thomas from next comes Your Peterson line of Bard.

Thomas Peterson

funding could the how comment earlier. commentary for if any quarter? environment? the And global I activities expectations have a academic expectations the NIH environments sort to commentary activity half especially heading out in funding Just could activity But and pacing of side April on back geographic into call research research of in know then sort called core on of May purchasing you strong out around you given you any call trended, and curious pacing those if sort

Brad Gray

And don't the know it, second Tom, return to a see I contrast beginning. has strengthening reiterate will underway. be nCounter really, expect including between substantial in nCounter half. sectors fast the well by add reminder, right have spatial research And first lab to I the a lab quarters widespread, the just or at economy, pandemic kind utilization consumable the be evidenced I've what lot of half, the to powered don't a But all we citations I second pull-through of as the through expect biology the instrument utilization do to the point. from work the by second on But utilization. is of would isolated and consumable I to us already and nCounter sales It's access, that pandemic either just that our there's really said. about huge as side our strengthening impacting think Yes, nothing to to nCounter we say a I for the across even on COVID-XX this GeoMx in

Thomas Peterson

And then that. have hitting it. the it. sort developments quickly, you Got potential side. just lot recently been on Appreciate guys and on a of Got bioinformatics software

as particular Just curious updated here? thoughts here feedback customer any efforts you're any time have or well lines as into if you incorporating development

Brad Gray

to it And at in and biology. comes been we've run on to launched came been has and sites. focused in across there, services But very customers sophisticated we're and on stage. and the GeoMx of continue Informatics visualize and means of and a for that's analysis sharing would want this cloud, to the Profiler, Well, Yes. that images place collaboration and Digital collaborating the of always understand customers take manipulate them suite we really And data more make for that across something that not data with developing future very would raw allow we storage spatial has allowed when data. sharing their instrument quickly data possible, the storage it delighted Spatial done

time have offering it's I a an us, XXXX clearly but to more aspect specific event tremendous that continue probably a of us it It's us, of in But strengthen of and for biology. a for for area look our lines. importance XXXX investment. than event spatial So to is don't look


comes question Schenkel the line next X. Your from from of Doug Speaker Cowen.

Doug Schenkel

So, nCounters relative was in have bit lower the a speak pick placed I types couple quarter, to annualized that I'm $XX,XXX quarter. seeing modeling to in Could to half whether expected those going guidance conviction from, year. ASP. your think, different you trend to need the that, actually there you the I of levels? questions. to what range half which nCounter nCounter have just then a you're for would in came ASP we about wondering in And just it to is to mix the than that get might gives up when pull-through first $XX,XXX jump the impacted was of of $XX,XXX into second to for annualized anything

Tom Bailey

question, on. I the think ASP back to take Brad I'll Bailey] [Tom Doug, toss it first, and then I'll question. the for trend

It in bit first to a the ASP prepared of a distributor quarter. remarks question. as mix in was, tilt margin, mentioned the about the and I On gross talking

plex. so a the mix and mix SPRINT's really impacted among really in the that it to in compared the quarter others. a wasn't And usual It modestly as was MAX distributor ASP first difference

Brad Gray

And I'll Doug, consumable the question the this is take trend. on Brad.

-- how to outbreaks COVID, we to relative confident rates, correlation is we corollary COVID-XX we When a really carefully we pull-through inverse due also pretty suppressed and where say, direct at the you've the correlation. hear we saw that think And asked about relatively to of a suppressed it's taking how pull-through the consumable I consumable nCounter question that true. look the reduced place. in and basis on pull-through COVID-XX -- are see are that to in regional lockdowns, a region, is we are lockdowns it's don't pre-COVID to

-- correlating we in the countries, the And half a the become America, European guidance. so second strengthening to and second in we're to half. provided in that Back were widespread, it, little pull-through a that overall in call as levels pandemic the just economy vaccinations not in should see with XXXX North begins behind, our consumable consistent pre-pandemic relieve but

what we making we're I what on. our So think -- judgment that's that's

Doug Schenkel

more One together. couple On pulling along helpful. different them a lines. of those points, Super Okay. but

placed GeoMx with nCounters the group, back You And with being talked heard activity the together, When is the larger major and genome pull things picking some lagging at those and a at bit centers little core more labs. talked also the end. smaller consistent sequencers about I up end the of on back about versus maybe we the of across a on bit mix what we've little mix I'm moving moving is normal you part expect there's of Is be wondering forward? lab this in really norm is on the activity of Or that levels? have or where this front activity skewed placed mix GeoMx thoughts a in this the should by we in Brad? that we that, mix expecting if if Do is any forward. sequencers being should terms impacted of by

Brad Gray

from Doug, I forward. expect think of should it's you norms what mix moving the

has call, front least that shipped of year genomic very I'd some not calls. not I'm observed say NanoString not direct higher. just NGS. to described saying it's have I go had our haven't think true other being remains teams March management smaller that cores well differentiation between could that. it experience we expect it's and and we this and on systems XX% of in And labs about this on their we at talked with there, be

everything be science enables XX factor done with terms the sequencing. of of NGS say we're tremendous by would about seeing the systems, respect NGS X in installed base Whole the of on a Atlas combination to to and could I with between which fundamental Transcriptome readout the string and that that So in capabilities GS that nCounter is the excitement provides GeoMx XX what outnumber and to


Savant line comes Your next Morgan Stanley. from from the of Tejas question

Yih-Ming Tu

so first what circle are you're learnings is essentially TAP. that? of seeing this spec for call output SMI the I technology, locked some impacted seeing new question, Outside Edmond. are guess you evolution are quickly? you is This of this your the it of guys the kind want And through you strong of Or down far? evolving it to if what that prototype And I'm to going learnings of to back new demands my program in extent sort still the have to very platform? these the your key

Brad Gray


one and product assays of but that for possible the is different excitement targeted researchers appetite most elsewhere where think is being tremendous bearing the this has the translational to made the assays, us. X,XXX comfortable competing with taking think I offered X,XXX the what's That's development and plex, need that think informative demand that learning to confident And more idea is about plex researchers the palpable. more SMI of key that position also plex for not seeing. are most imagers the are be out who leadership I at discovery the the just the serving strategy from maybe plex, we're us our market that's place who only that is I right within

Yih-Ming Tu

mover purchase, I it. how the first be very it That's helpful. will And this in is market, to, important advantage important imager that Got is given here? first-mover how this NCX CapEx a guess, a involve

Brad Gray

coming think dynamics. huge market imagers is system extent the to that's for researchers in exact that product in To capabilities relatively I front that matter is launch think a the to and not coming competitive out a don't are getting all group market experience our market to the of shift important. I opportunity window. we we're a to capabilities. of short wave the one order The to And providing others, it's about of those months critically talking of

Yih-Ming Tu

just one program. then And it. on Got more the SMI TAP

instruments high it's you and any programs. the utilization XX TAP higher the potentially of line? to I internally to earlier taking some little or programs also thoughts capacity. have expanding something think running that already a there And a maybe accelerating and more that TAP running R&D accelerate you Are on guys pretty the programs mentioned TAP time

Brad Gray

there Yes, are.

we the SMI over We overinvest on think systems. SMI nearly capable time, the At will launch our alpha don't expand will TAP the they're program. or not the though, prototypes, even betas alpha where I to capacity instruments as as full want really in beginning, be.

commercial to in dedicating more about dedicated thoughtful waiting versus to a SMI system. many future versus capable capable we -- we're full more dedicate alphas how So betas

a sense. we're growing capacity So way that really makes our in

a launches the we're little XXXX. to the providing half who people the sell that test instruments for want of second until us Our drives to. right our researchers market. to to and doing where us system really we directly XXXX, really the of work the capability to educate into strategy allows that way demonstrate to to gear, group higher is be the early a GeoMx It's given move XXXX with full a for now highly that select In instrument of the we'll

up will to capacity we as launch. get closer we So scale that


over to are further the There time. at Doug I'll no turn Farrell. back this questions call

Doug Farrell

any hours. of dial Thank next We thanks dial great XXX-XXXX. a conference With callers call miss of that, is If you, day. (XXX) and The us, domestic XXX-XXXX. replay please International will be number to posted portion The anybody did ID joining XXXX. the couple operator. callers (XXX) have in the today. ask XXX for


Bye. This concludes Thank today's conference participating. for you call.

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