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Nanostring (NSTG)

Participants
Doug Farrell Vice President, Investor Relations
Brad Gray President & Chief Executive Officer
Tom Bailey Chief Financial Officer
Julia Qin JPMorgan
Daniel Arias Stifel
Catherine Schulte Baird
Douglas Schenkel Cowen
Call transcript
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Operator

Good day, and thank you for standing by. Welcome to the NanoString Second Quarter 2021 Operating Results. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. ado, to further speaker your Without today. for Instructions] I'd welcome like first [Operator Mr. President Relations. of Vice Farrell, Doug Investor Sir, the floor is yours.

Doug Farrell

Thank for you, joining everyone us today. operator. Thank you,

On of today, we President our financial Gray, as is the Bailey, released the second for as quarter Tom Earlier CEO; well our CFO. our results call today XXXX. and Brad

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

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

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

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

of to next of Genomics forward Morgan our description, Conference website. non-GAAP look afternoon’s I'd like Conferences UBS everyone an September. Stanley using on Healthcare GAAP the many -- you find week, well well having that conference remind in as are as as to with also we'll participating the be Baird opportunity health release X.X as press also can such there. the and in speak measure You Investor the limitations page Relations reconciliation for rationale this and to each in available under to We

turn the over Now I'd Brad. like to to call

Brad Gray

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

continue each franchise increase So, biology to quarter. our Spatial momentum of

readout basic of a continue to rapid on discovery market vast new in lead is NGS expand and our up research GeoMx research. for adoption translational the We opening

for time. bordering placements franchise cell humming for as our are first the interest well after a and introduction. is Molecular Spatial NanoString instrument existing than along, as generate science customers, more its great single nCounter who Meanwhile, strong researchers with GeoMx Imager Our decade to GeoMx continuing is engaging

XX% for top at for orders strategic delivered GeoMx biology lead instruments broad year-on-year Digital XXXX sequential consumable and Spatial our per number XX% of in of objective our grew that instruments growth In quarter, a to spatial the first adoption through we end GeoMx the pull-through record is extend system. Profiler. the the second quarters growth. Our generated A to approximately XX% range of of DSP guidance GeoMx GeoMx

read for to of products and wide our And of that system we've long-term first of annualized launches pushing consumable Atlas, of business. of sequencing and products second impact key recent $XX,XXX GeoMx our momentum. driving catalyst spatial our our quarter is growth guided our per for estimates translational $XX,XXX. $XX,XXX and are are near they research. the These The previously Transcriptome during Transcriptome discovery revenue of pull-through Whole the provided propelled consumable are appealing offered. in first from researchers Mouse WTA guidance guidance both to For or half launches for is the system of Whole GeoMx recent the Expanding towards XXXX, next expectations range importantly, top to pull-through humans our out previously Human the the on WTA use value franchise. increases generation the experiment range for a top our The

of quarter, approximately new GeoMx researchers to instruments to second XX% their were intending readout. primary sold the use as During NGS

to readout use assays. now utilize usually they addition, with begun systems phase In NGS nCounter GeoMx have that many researchers with when readouts

assays. units. Whole affected adoption readout revenue applications drive Together, Transcriptome of quarter. this for our a roughly These cancer consortium the has ordered one-third expanded in of approximately or either these our installed GeoMx assays whose two-thirds total enable So of assays, broad the NGS second research consumable base year GeoMx accounted our far Atlas NGS

revenue continue of the will to these higher pull-through we year. system through sample consumable per the increase the assays balance While in

WTA represent biology, through or the During quarter, our areas portfolio NGS test research. basic drive including readout. the of Program indicator another Transcriptome to provides This is instrument and TAM. strong an the neuroscience, In generating Access researchers of began customer developmental second enabled models readout research us Program about we infectious orders We disease, done mouse prior S we the the have of may projects February, than the spatial GeoMx, up Access with biology enthusiasm of the market The biology. mouse the TAP. in the our with generated of launch new XX% second enables NGS more from with system XX% strong NGS more new new and quarter over Technology to Whole the immunology, offering XX we TAP than expanded for evaluating our With Atlas. important is of offering purchase, mouse suggested for number while discovery year. GeoMx most diverse Technology interests projects. doubling And Our researchers of

these more. continue a disease. than to driving researchers on a side solution translational our research have automated the has provide performance needed requirements, while is translational volumes, results want and other while fixed position research. consistent adapting They among companies helping of understanding be to all compatible, protein side this human basic to robust on we establish the for and leading be platforms record demand platform the NanoString translational of platform, decade, the To their provide networks. their both, its Our and embedded that platform. RNA We are GeoMx's tissues, Management strong market collaborating across Whole also clear, analyze a discovery leadership serving brand build meets been technology landscape on track FFPE much a biology other matter paraffin requirements Formalin spatial for in antibodies and protein unique can we deep shifted provide and Transcriptome high to from validated same GeoMx Recent sample Atlas an researchers companies that the of were in-class pace or enabled Among want several strong our translational FFPE by other updates research. using community understand and focused product requirements. by translational developed competitive They plex. more translational reliable researchers assays that's and FFPE of a that's XXX research tables lead more for impacted from leadership portfolio outset.

cases, provide driver plus GeoMx bundles. essays, Half market. were of and nCounter setup the in sold a XX% to translational packaged the NanoString during of growth continue are these about researchers all is systems their are QX. most these going sold on long-term remains GeoMx strong new GeoMx Overall second who For protein customers, to preferred our further XX% represents approximately focused In for as systems the nCounter readout researchers were configuration, bundles in of this lead for systems quarter GeoMx extending XXXX company. transforming success, and

commercial second for is Imager see plan Molecular an Spatial is next Our that’s Molecular or compliment be commercial shaping second Molecular to track the market to imaging the we SMI, that to our development spatial remains ship of advance in year. progress for expect half for developing launch the and instruments on our great profile, rates to to which in XXXX up XXXX. strategic highly will market the be objective in Imager important Spatial

to Our be ways. important and expected SMI imagers is the statement other from the best-in-class several in

and highest lead the First, class to SMI plex the the we the with sensitivity. expect highest

competing SMIs Second, to SMI Today that GeoMx researchers. a the we we've from of customers, program half are interest researchers in set while both spatial running embrace many platforms, SMI experiments just The unlike we assessing come from RNA will from performance immunology have other third, the launch with neurology. about biology. existing expect diverse and of of spanned assays. show beginning develop biology, protein technology including half areas come samples; access single-cell been will oncology, and To and the projects SMI and fielding superior for tissue

are our science molecular reach spatial create out opinion atlas that Some characterize for to into the interesting imaging a others individual to year. themselves oversubscribed next cells Researchers with an looking projects, reservoir server already researchers within in are interactions separate to between tissue, a busy are creating interested while year key been with using continue that demand allocating leaders. impact we've high to well will capacity keep us is

is objective to seen our strategic third growth Our prior the business COVID-XX to the dynamics return pandemic. nCounter

the systems. installed increasing our milestone the base is franchise XX% another over nCounter selling year, publishing X,XXX remains about papers over during with XXX and nCounter of QX, a major reviewed which recent customers prior quarter, in our business robust Our

the through during to approach across Institute National continue We second instrument CAR-T sponsored will assess as As to revenue, pre-pandemic this clinical platform expanded contract most of leverage the a solid be available therapy that under to of cell Immunotherapy instrument researchers cell immune system world-class pandemic community. outcomes nCounter. exciting to the define The developing expertise patient increase of access matches XXXX. therapy we levels. recovery of full development, per exactly same cancer to signifies in QX, pull-through may about to clinical another another providing $XX,XXX to what the or extensive plans of year. generated in XXXX Parker a findings iNIH researchers This tumors In our of trend expected almost umbrella period mid Health standardized the year. and we regimens to generated sequential recently The continue the placements therapies. centers, now for Cancer long-term have of part The on network annualized And a of nCounter all expected research lows NIH Oncology There’ll per with trials. publicly this we of the that a Parker to Institutes focused will of In half. agreement, of scientific North embrace continue program. half and recovering data NIH characteristics with cellular from exciting types. patients the the in molecular NCI for America, to its during recovery is the collaboration make notable an improve collaboration trials supply X,XXXs collaboration second recently will to make the characterization effective, the entered objective year, Parker's entered

areas with new half about and In to disease beyond especially push our through sold the We and in consumable the stronger nCounter are outside of oncology quarter, second nCounter Immunology. applications oncology. systems infectious continue growth

new analysis of development novel Stem the therapeutics. During QX, panel a launched using the for cell Cell lines of we characterization and optimization

workflow summarize, turn And panel its provides nCounter manufacturing we're and advancing development I'd this researchers genomics our for to returning on process. to operating ahead [indiscernible] of new details with stem XXXX and therapy that scale objectives progress doubt grow, may have help new the Our the now To reaching factors hope a in the field. like generating launch essential We to biology, standardized and evaluating will making SMI the results. promising viability our assay strategic of great Stem impacts over cell review of eight component up the Cell call to Tom customers, excitement it

Tom Bailey

Brad and all today. for us Thanks, joining thanks

representing second QX million, growth above $XX.X in provided high instruments Annualized GeoMx system approximately was as of products about For was $XX.X we to XX% XXXX QX consumable consumable the compared quarter million XX%. pull-through XXXX, XX and was of and revenue sales. was revenue end per million, $X.X in was up from service and QX. $XX,XXX GeoMx of the from May. installed guidance million $X.X shipped year-over-year

revenue $XX.X growth was of growth was year-over-year main QX million the guidance. also was Service instrument of service consumables increased end consumable about high projects million year-over-year growing in representing our of $X.X for $X.X the contract from base. about nCounter, TAP revenue by XX%. revenue revenue XX%. Our Annualized nCounter representing representing total $XX,XXX for and pull-through driven year-over-year GeoMx XX% new our revenue growth about million instrument was installed DSP QX. quarter, was and QX

refer to and posted a the as stock-based certain or impact one have depreciation basis, items. which Turning non-GAAP to to removes web our adjusted we page. our of exhibits press expenses. compensation, I'll release Relations in results all the Please well time provide Investor margins and

QX was information our last at the XX%, detailed margin our growth improvement compared our gross to or with adjusted and driven range, on non-GAAP measures GeoMx basis both annual DSP guidance point revenue prepared. by For are a and consistent XXX about of year SMI year compared product the prior QX adjusted personnel an consumable $XX.X nCounter expense to to and related to in X% R&D increase recovery sales increase the of was program. compared development costs year year-over-year. to was prior period period. R&D higher Adjusted the primarily due million, and

year-over-year. SG&A sales R&D an SMI development SG&A balance in due increase initiatives, our investments Adjusted including will the primarily expense made increase $XX.X We the as QX was year and of of compared investments investments. expand to continues. customer expense million commercial cash, We XX% with expect and was related our biology ended groups. short force, increase improvement was support through approximately million, an to to Adjusted $XX.X term loss million, of XX% The expense spatial equivalents our the year. and as quarter the cash service $XXX prior EBITDA of

million guidance, million range into revenue. the representing XX%. to to $XX GeoMx million service nCounter of XX% range and million to product $XX to QX, in for of Turning $XX we and revenue to expect of $XX year-over-year This million, million $XX be of $XX revenue assumes growth

our pull-through range full on $XXX,XXX $XX,XXX of to guidance at enabled the we're per consumable system strong annualized sites. Regarding for year early to and based pull-through raising our of to while approximately $XXX,XXX second year half utilization for GeoMx full for XXXX $XXX,XXX guidance, year, NGS

We to XX% in are affirming prior orders XX% guidance compared the also with instrument year. growth previous our

are we range year our representing million million GeoMx to of result, $XX full XX% to updating annual growth guidance $XX to a revenue As XX%.

has rebounded instrument nCounter instrument revenue remain demand and Our expectations our nCounter globally, pre-pandemic to unchanged. levels for

partially consumables America by for rebound our recovery $XX,XXX $XX,XXX pandemic pull-through in North half consumables year a XXXX, are Europe been offset guidance the pandemic has slower in per per approximately a modestly We year, $XX,XXX to pace reflecting full second implying $XX,XXX Asia. narrowing and of a system for to in – and demand to

XX% these result $XX updates, range unchanged. XX% representing full impact of $XXX updates XX% the million, these full an with to annual a product to narrowing of expectation remaining revenue encounter million annual to $XXX growth As we revenue year of our service total guidance XX%. our million revenue The are midpoint is of updated and to million year representing growth of to guidance $XX combined

loss, are leader EBITDA margin gross provided We affirming, outlook our also X. amounts adjusted March our as prior expense, operating on

Additionally, as revenue in periods. did not reminder, material be any we to recorded future expect collaboration a

turn the Brad call back for Gray Tom. over comments. closing Brad I'll to Thanks, Now,

the As we up year envisioned. enter have half, is as shaping the second just we

Our of Atlas driving new our the and consumable long-term value adoption all spatial business. increasing Transcriptome are pull-through, enhancing

of versus customer are capabilities and many our of up needs, that, across as the within translational franchises our in perform strong of the introduction, as value are questions. want Our are with research. unique of molecular Meanwhile, expanding and in our growth spatial our deep understanding important intrigued through-puts research is lining prospects, fields franchise. to Scientists still element combined its achieving leadership our momentum after long-term nCounter them multi are spatial your GeoMx both our we milestones well for permits. biology now near-term are the confident With we a line decade by and imager to open

Operator

sir. the of Instructions] from Our you, [Operator line from Peterson JPMorgan. Tycho comes Thank first question

your You question. may ask

Julia Qin

Julia afternoon. taking on for This for Tycho today. is Hi. the Thanks Good question.

latter, the of do I understand, I the for we GeoMx. in biopharma into fragment relative subtype terms more forward the the academic think you changing in kind market. of, ready Transcriptome to mix, the guess former But versus two-thirds you in And mix more about it's, the have academic and runways biopharma? guess of, So going I is see studies. current with for kind much one-third whole launch? should how between translational maybe How

the through Thanks. just there. help So think run relative rate us

Brad Gray

for Julia. questions, the Thanks

Initially, would one-third more assay, appeal our we research predominantly academic when GeoMx discovery is You're basic settings. in to two-thirds defined whole launched researchers do we it right, academics for our imagined and the biopharma. Transcriptome about installed base

increase. projected is And so to we the going GeoMx had academic that time, may research over of fraction actually with

As translational I discovery to we're seeing researchers assay GeoMx, capability that the including whole readout and basic mentioned, in the prepared both my Transcriptome NGS of appealing are researchers. remarks,

think between customers. approximately see new to biopharma split expect So GeoMx an stage, academics placement at two-thirds, I one-third from we this and continue to instrument should

Julia Qin

there translational the you side, in actually plan the trial. so in No, on or it of that's increase GeoMx is can research biopharma And to clinical room throughput, kind of then, kind helpful. any use

Brad Gray

per for to be there's than And The relative clinical sufficient is faster extremely their The all that is screen GeoMx at trials day. throughput nominal spatial patients than very in pace clinical to really pace platforms, throughput already high, needed is trial. biology and ever of few at to a a patients reduce GeoMx system samples that a inclusion probably faster would are XX of that. about enrolling

capability serve the including trials. to So clinical we research translational really good about market, the system of feel GeoMx the

of most clinical So we of at samples GeoMx prospect is. is trials. our in translational to collected analysis that of the course, changes what as the a hypothetically But the think throughput trial the and our system use retrospective any clinical without were could today well material analysis of of enrollment GeoMx that research FFPE allow of

Julia Qin

Got attention color then Could should it? upcoming kind And know the same you top Very of, and helpful. for pay any GeoMx. gave early working you're to? share with for be customers you order the I lastly, we How publications SMI? on many

Brad Gray

subscribed XXXX. are as interesting in to collect to XXXX projects for at those worth, level the of which standby prepared SMI we until XX said But plan able my that expand sort on the path capacity in are XX mentioned in our we now. enroll excess and vast our So we that for I projects we're past, to demand, fully continue remarks,

fall, and We SMI publications But time. in any news this in the on are the at for look particular quarter. fourth point forthcoming in previewing incremental

appropriate through projects TAP make to these their of public completion presentations. some into way begin and As

Julia Qin

much, so Brad. Thanks Great.

Brad Gray

Julia. Thank you,

Operator

Daniel Arias line Stifel. next question of comes Our from from the

your ask may question. You

Daniel Arias

Brad, elements raise mean, the side Thanks questions. there? is like on GeoMx just I maybe nicely. sounds color through play pull some Good for up it the and consumable on afternoon, the guys. add can the average, in the to usage next-gen you

So maybe then point, of comments sample numbers that impact have terms utilization that what your seeing, are the residual on are relative your assay before you other and you driving might that initial of of just having, mix, to trends any sort that sort forward? that's And rate to in expectations?

Brad Gray

the Yes. for Dan. question, Thanks

past, entirety Transcriptome Atlas the the our Atlas been broad incredibly just But about I think our installed adopt translating the intrigued into to the is installed dollar this it. interest Transcriptome our That it's in heard talk per and surprising into that, whole discovery the you've even assay in In the pull-through heard is by and as our of base gateway us, overall that second is heard Whole consumable what assay. drives us base beginning is exciting the in for the guidance today. market. sample prepared remarks you our up assay to you've and raise entire

think their, our which would be. of But, clearly, course, per up. the assays are it's rate of I And most driver to trial so of long too early year our in I Atlas run call characterize it usage their key per of still that, going term Whole for exactly per makes think installed customers state steady value the what system because that's, spatial exciting. overall it, biology of average Transcriptome the franchise, what phase is assay, was dollar assay a base

Daniel Arias

Yes.

end year, Whole you of more that couple of that makes Transcriptome like come cancer done said forwarded assumption? to to still this half transcriptome? think you Okay. could quarters what's you versus A make fast if up sensible that, the thought than Do of had you

Brad Gray

that Atlas readout mean, for Yes, the Transcriptome and our Atlas, cancer genomics I Transcriptome quarter. consumable the accounted on you've and I revenue two-thirds Whole second of I NGS do. think together assays,

to Transcriptome close half that'll I think think, year. already of Whole of our grow the the assay very -- balance we're of So strengthen is installed going to will the just up utilization I total probably that the And base. what

Daniel Arias

Okay.

nice maybe I And the side. GeoMx business the instrument pandemic. the on keeping then throughout a job, just have really guys sort mean, Okay. you of steady just done

high. I'm of orders installs, on pull them start for and spatial coming since there constraints see are one think But it So the a on of in sure. you up or enthusiasm rate, is the quarters? just the being into usage it feels to up. the the cusp sort adoption certainly, sign like up especially those, inflection telling feel the step show to sort we anyway, when wondering the around the not a lab does on on in of market going just just through like Obviously, as start an getting can of through not

that forward do in I for us to the things are it so rate So, on XXX% for that. totally of you've been out the get a acceleration not placement XX going model appreciative But fact the is while? there, fair or that from

Brad Gray

think, Yes. are -- so, because I orders let’s important first, mean, and revenue separates really I recognition, those yes dynamics. just different

the in this of XX% approximately know, year-on-year. you first year, as our order half So both up gone QX, has rate and QX

market is time -- sort that's from So demand GeoMx. for of indication actual that the and best of the real

So end year rate, that's range our the the I we're XX% growth a on year, very for growing for guidance think top at our orders. XX% guidance full maintaining at to the of strong

an your with to instruments fulfilled competitors think half. beyond each couple book-to-bill a last is of step for see going where year, seemed being placements the scenario look quarters. in So or you revenue. market. the order in of part because imply increase this orders of you that to you've one of enormous we're second if of one And that then more the will to inflection dynamic to instrument natural with back respect don't were past That to I will for that that less -- and you the XX or half question will wondering there that given be course, the change an shipment, instrument or at so now, beyond then when begin kind was that's the said, seen growing XX

year, the of at to of a a type without franchise that particular great you and year a I need I inflection. pace a are can rate. XX% If anything sustain that's expect We that the a would to through don't the higher a We're instrument XX% spike going growth year. are balance suddenly we the order marching tremendously of to of growth orders cliff, next Spatial XX%, sustain in of that for even range as build going valuable the characterize that then

Daniel Arias

thinking quarter Yeah. I QX how operating wasn't step at year, I'm is and I just and I'm per going was accomplishment saying a systems last given the "Okay, no, XX No, again, the was up. which I'm installs in certainly big looking difficult then. -- back you guys placed actually huge environment of

the experiments. So, of end into market, that number velocity lab next boxes. They're to the you'll for to in there do "Hey, start out are see ago? this or trying fair spatial are creep that that that beginning to guys those we than say understand of the you up looking of of push the assume putting that's year, it there ordering just did, trajectory are year year that says, or And if more just to is you us more the spatial a people are

Brad Gray

that orders, did in a where then of math worth if the you expected We're certainly, given that XX maintaining half. XX% range we are in the that fourth our And grow the worth on we orders year-to-date. guidance year to years on XXs to And is of sort for and six range that Yeah, you. imply just a the and then would the XX the full quarter second quarter. XX of year, orders math to in for growth XX XX% just in XXXX third

into of as gives in sense to that of place. what's able a going then, and be can and we range, keep guidance rolling our kind So implicit we're to that you replacements

Daniel Arias

Yeah. Absolutely.

Okay. Thanks, Brad.

Operator

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

now is line open. Your

Catherine Schulte

guys guys, comes I what are of where then just levels different are And regions it for you're guess on versus levels? the when in you terms to reopening the you sites? walk access can first, activity to seeing side? Where thanks pre-COVID questions. seeing Hey, customer through

Brad Gray

question, great Yeah, Catherine.

and we uneven companies substantially I'd attribute rate remains to for below North that And as we XXXX same in That prepared what back through. is impacts our is an seen, said, slower seeing So most utilization or the which our pull may being utilization and of to, nCounter recoveries say EMEA and in research, we rates what pre-pandemic lesser nCounter we've geographically. that on our the and in other remarks, but the cancer activities where and in those from primarily installed not on focused within on least that's America, indicator best is we our our APAC, a for to seeing. degree pandemic almost alluded pandemics may base, the are the as experienced we're regions. the pandemic XXXX. at immunology be COVID-XX recovery That place us business to consumable neurology customer In what

I'll genomics our guidance a at to are far of placement or are of impacting the seems pace so pandemic that back year. on has none the instrument that this which maybe of importantly, been encounter the competence just Now which add, recovery XXXX be of least orders, line range in pace instruments,

Catherine Schulte

know Where guys Yes, how about XXX reps, about is And talked you new should cost have are got hiring hiring how we I terms it. process impact? a that hires? about of you And those potential going? think in

Brad Gray

with still the Asia way in longer underway we XXX hiring Europe, and pleased three the hiring especially strong and simple. reps. in It's have more But to progress. The is we're about made progress, quarters it places $XXX through Yes, good those just we're North takes where fast America, hiring. people. we're We've hire

months it and we'll to become Later think this to reps. they've see year, of once those begin start effective I to trained. been impact a takes for rep the usually six joined

be hired of So in getting the of course, – impact full- to and course a have the then effective quarter we'll and in of people year with were – fall XXXX. second their the in

Catherine Schulte

Got, here. GeoMx sneak the on roadmap could if more I talk could was just in. curious, If from innovation I it. for one we

different there of intend You coming guys iterations several GeoMx years? have next encounter Are three over out the platforms? that you different

Brad Gray

assets focusing for the GeoMx we're our on innovation front. all front software these Yes, now of and

You appealing know, really we footprint that consumables has is that we market believe And want to will do and translational continue point, is system to larger our a that current throughput segments. number GeoMx customers. poor the combination appeal the of and price across of on what to both the that innovate to the discovery labs

separately, biology. customers on the sophisticated to the our assays look want GeoMx and store, important cancer, consumable process place mouse that continuing protein higher consumer of a generated hopefully, that that's the will single biology experience we're then obviously, we're on moving custom there. the drive outside of for with we've from lot to how manipulated are more some to and assay that data and beyond tools some at options to And we're they spatial or software motivations. address in also that allow transcript Those the improve But takes out So continuing customer model. whole a And that even are expand human most towards learning introduced. would systems utilization our we're us library, fields

to update respect time roadmap we innovation. that a will plan But certainly we instrument know, don't with you today, you So develops. have over specific

Catherine Schulte

Great, you. Thank

Operator

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

You may ask her a now. question

Q –Unidentified Analyst

guys evening. This for good the time. Hey Tejas. Edmund for on Thank you is

variants of specifically additional impacts? the your the guidance, COVID on I as a wondering your circle it nCounter -- and out, Just you could quarter, the And know called guys region. guess, EU terms have consumables. for if EU weakness. on pace pocket to was I color recovery into you I recovery trends for what's wanted baked some last provide delta worsening back and in

Brad Gray

Yeah, the first. part I'll maybe so that of question take second

the that imagined. to the nCounter mean, embodied With our too think I'm that than many our in -- in which respect that our this worse do we'd little on of are worth originally think I had slower to cases. guidance additional bit guidance weak, projecting I today. provide are updated really weak guidance of us uncertainty nCounter and is, longer I much been top Asia, are see we a than be I terms can we be position at previously in end as we pace provided might color. have that range, it's the in uncertainty, way the or same recovery are expect the because with that variant. a only regions I not respect not does that of with getting in will demand, Europe we're consumables that's begin watching reason we're today relatively remembering for time current But on in no that the real Delta the everyone of will And range as through part Europe, it to say areas the distributors work where any else

terms a some fact so, be that recovery confounded in slower be own business for our in of of to data And regions, is operations seeing -- impacted likely distributors by negatively a may you the of direct we're and more be market. those business in what less in their

only the probably I add just that, that's now So think can add. will really color I I

Unidentified Analyst

update how so the provide a as you SMI And the in the development to visual of then helpful. analytics super Can is know that's well. find quickly have just two on turning TAP contract the – TAP make more SMI progressing just has on sure on the guys you previously, tools fronts the these and the said brief I program. program? to development we and No,

Brad Gray

that of happy area like the from analyze, the they're so analyze, that just it's want the We're the the Yeah, of map in to they targets terms is how amount key parameters individual TAP the is something or where that to allows cells any of tissue customers to. to they and us one cells, an the of do building demand that is really of is prove a interacting. thing two question atlas actually more whether trying want whether asking about of number to are see

cases, those of the are design the a software. very instrument, all would which of so And the consumable use of inform each different the and part different choice

to to say visualizing and right just our present data been the we've they on with is the real spatial and presenting with their that earliest headed evolve And, can after imaging insights, for molecular I time while, valuable how feedback requirements. know, this incredibly particular don't would data. continue TAP product software say, to at time you prototype get effort of able to customers some development I want to and explore the have We a

position broadly. So future demonstrate more to more at tools the than a being in a in time those

Unidentified Analyst

advantages what some then you there earlier you've $X,XXX key participants in factors Got of the seeing And the key side? spatial that. traction some throughput is for platforms the from other it. jumping Thank you for level you Stepping launched back, in at your terms the And guys the a of of recent looking biology given are out? higher competitive one this final are GeoMx, to for highlighted I been know previously capability NanoString, year me. one field, at separately, alluded have and of these earlier emergence on that and to anything higher know

Brad Gray

There's in Yes, it's spatial the us, is And revolution of understandably companies like of lot many and the the truly innovators biological along startups attracting research. biology field innovators. a way. next then from larger

the is companies and and really is automated and is, years of by leverages and work a in that market needs. we've and were time. first, I unlike customers for categories, of business series think and building of One that think later makes skill to base every researchers the we with profiling week then Then, come a of in in particularly entrants, the tissue same new many are the samples, I That's have I for across have we call course, of can so participating deep with amongst paraffin always highly translational frozen. researchers. a decade many over smaller intimate embedded we At molecular and Three the there's of over first compatible some fresh -- a we've engaging that robust, big, smarter have. systems, it we you day-out. like over the every advantages be it, Two fixed those, every lab esoteric on understanding and NanoString day-in technical they and the what's imaging actually with just place formalin advantages. for built we built again, what market, a required been competitive platform think serving hundreds the instrument of to more NanoString, are day, top adapt back about to new us customer

So, I think sample that have type our we're We've idea advantage competitors. of always over to multi-omics. the also an embraced in going

plex RNA be the time, tuned which be same sustainable And because is at advantage. correlate So, those high-plex. by needs, both of we to to throughput also, market platforms consumer finally, build revenue are on tend pretty strongest recurring the another consumables. the we I protein the high to spatial throughput translational our how then spend tend all believe, way, because build much in, and going capable people And to platforms that these we're are and and with strength, to

So, really competitive advantages technical and the a on level. are marketplace, maybe corporate we more great positioning both capability feel in on about our and a

Unidentified Analyst

you Great. and insights. color very informative. the Brad, thank for That was

Operator

from the Douglas Schenkel. comes question of line last Our

open. now is line Your

Douglas Schenkel

in at fitting the Hey, guys, me thanks for here. end

cleanups. Just two I three guess, or

to about I going improvement you be in you heading any -- remember First, access. think QX into an that guys there wasn't lab expectation talking I

than than into based factored the in think be you we that kind guidance. the hope what of talked treating the your on back would how that's think I of you're think what want confirm year? I was But and probably I it that that. that to was about better a just expected as you prepared remarks was little half bit to ahead better

Brad Gray

research the for over actually research of hallways. is over to was I our running believe reps still campus, the activity sales there these quarter in phone they're of question and outside line access sales on customers have up rep sales do coffee our doing eager meaning about and really second in or labs with got I the walk phone. and in know over expectations. Yes, our the Doug. although Many place in aren't to that thanks their labs, meet vigorous shops how Zoom. into our Most taking their institutions, work

with happening that activity was the that levels less in expected. I'd we think regard, So what meant right quarter. our more access, are that in you the my or inside also the I of using kind of In line during line lab really second lab we're more in say technology.

genomics to we during think to whole about be nCounter QX. was better consumable we our be I it expected consumer it room than very our few to where expected

within line about caveats mentioned improvements sort better So all slightly I the lot I'd with a QX maybe that -- uneven we'd a access, expected or say that says, than of levels earlier. activity geographically of lot in the

Douglas Schenkel

just Is reflection little is Brad. big bit remarks, nCounter, one or we for placements missed this number sort why prepared but you apologize of higher for just your time of that, quarterly those I to if of that off normal with Thank of time? of rate that like like fluctuations and terms a that wasn't -- And of I there's from not kind kind drop GeoMx in of so net one that. timing a something dynamics see or XX that something necessarily and attachment those the a in was

Tom Bailey

Tom. Absolutely. is Douglas, this

look a to the you quarter, second big the we the leap compared first had back at base in If first quarter. quarter installed

to more installed so relative anomalies it can happens that revenue, give brand you the see counters. smooth some base So tends seasonally which to and that

installed units So another we answering of quarter did that way as as to quarter. question, the this that we compared more sell first

Douglas Schenkel

Okay

Tom Bailey

into year, Revenue strong. about about half good has mentioned headed very, remarks. feel very been really second prepared as the We we of it the

Douglas Schenkel

Okay. Thank you.

Tom Bailey

deal good in The second quarter.

Douglas Schenkel

interrupt. sort XXXX one last Okay, thanks. for a of sorry that. on question. it's Thanks to really And My is

over is quarters, instruments based of and going to several conservative on how keep demands of or moderating seeing, are next place I two to GeoMx. that could going of sequencers, be have too to instruments think In interest way of year, in is placing don't you the there. front keep Right in now, these the wondering models don't exclusive. model, you quarters, be know, with placements more replacement really just over but continued pace too next encounter know, that fair the have the I thinking by what the if you feeling I on look things do know, my my lot skew go could, because, with it to related more for I totally next sequencers? in a seeing, about just guess part of and know, you assumption about actually of But asked your ability there's of bass influenced you going GeoMx we're mix you going based the So you're a GeoMx the how what kind this it's front I'm about, be what is to say, you a to not to about, on side. increasingly just core is want guess I'll demand you're understand nCounter like feeling influencing continue the way to creating meeting And GeoMx robust to to in that encounter mutually sequencers. early You those you're Is

Brad Gray

definitely Yes, great as questions, on started Doug. GeoMx. And I

do the skew that you're NGSV because towards now. think GeoMx out. has of will not uses impacts said, encounter negatively I beyond placements lot to I trajectory, That continue GeoMx correct, well believe a being that encounter

year, system percentage been XX%, last have our GeoMx been encounter But has as bundles. actually, if back, of year-to-date and even you quite about that stable. you look within So sold know, the

So as so GeoMx too does, remain if grows, we at XX%.

you GeoMx. to does, the know, on too, So encounter pull-through

encounter and talked that, through of this phone and XXXX we've top rates, On areas and on has half into like good. hard cells the the be neurology, about to that sustained stem diversify continues encounter that immunology first to instrument of at worked really So I placements year.

replacing you the look of at look off pace. post-pandemic, that right XXXX truly, XXXX, So kind same and pre-pandemic, if exactly look then instruments

reason see don't materially that a I so XXXX. was moderate that in And

the me conservative I about make really know, you would it. not I that worried it or could point but a trend little model expect to there's moderation, a think it's

Douglas Schenkel

fantastic. Thanks, Okay, guys.

Brad Gray

Thank you.

Operator

to President Please Relations. Investor of And Q&A Farrell, the Doug now session. your that over Mr. back will remarks. Vice ahead closing concludes with the go I call turn

Doug Farrell -

Thanks joining very you, everyone for much. today. us Thank

to did is conference for you If We'd callers XXX-XXX-XXXX. use callers The and ask there miss week. will is next the X-XXX-XXX-XXXX dial portion – dial ID to available the number it both a XXXXXXX. callers International replay of be call, US any same please the

for you With goodbye we So that time. and say your will thank

Operator

you call. concludes This Thank participating. conference for my again

may You now disconnect