Nanostring (NSTG)

Doug Farrell Vice President of Investor Relations
Brad Gray President and Chief Executive Officer
Tom Bailey Chief Financial Officer
Dan Brennan Cowen
Dan Arias Stifel
Catherine Schulte Baird
Edmund Debler Morgan Stanley
Call transcript
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Good day. Thank you for standing by and welcome to the NanoString Third Quarter 2021 Operating Results. 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. turn Investor over Relations. to Vice Doug like of President now the to conference Farrell, I'd Thank you. ahead. go Please

Doug Farrell

Thank you, operator.

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

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

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

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

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

reconciliations full I'd to of we'll in Conference you the many as We Virtual non-GAAP well each XXXX the the using well in next the that information building measures homepage that measures includes limitations have exhibits to GAAP with can and we for as posted XXXX. release. be for of tab forward this under our third data having selected like the Relations quarter non-GAAP such of financial Stifel speak adjusted and to analysts as rationale afternoon's the other the in and Investor investors You of description, everyone look measures of press there. participating Healthcare find aid for to opportunity presentation or financial To of week. remind their our models, quarter as year

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

Brad Gray

Thanks, Spatial continues you a for joining this Doug. today. and thank NanoString extend Good to lead us having in is year market. biology its afternoon and banner exciting

that quarter, and describe as consumable Assays During franchise almost effects unveiled new residual we and Earlier by discovery sequencing pandemic. nCounter of to of using customers both translational third Imager the CosMx record Whole biobank the paraffin-embedded a Spatial GeoMx we stored manuscript readout research. and releasing formalin-fixed our appealed the of placements next across our publicly to today, power a instrument Molecular as this Transcriptome platform posted revenue to generation the by revenue strong thousand impacted genes expression Meanwhile, samples while tissue. be continued image our posted dataset

our Bailey Tom progress handing Let me outlook. to over XXXX review and now the objectives review towards before call results our strategic to

and and broad of our overall orders to the our first lead both towards XXXX objective extend our GeoMx adoption Our Profiler. GeoMx for special is the biology is for instrument strategic the business the GeoMx on performance trending the range of franchise track quarters Digital year, revenue. right biology with through Spatial top guidance through end spatial Three

sequencing the third an NGS per about at strong During key poll XXXX. to through readout. use quarter system. of the XX% order on interest and is consumable were grew XX% instrument year using GeoMx rate experiments third full of Customer GeoMx now XX% catalyst in instrument instruments about compared within growth GeoMx for purchase orders next are quarter, of a and order track growth the about GeoMx generation a readout for GeoMx annualized for during $XX,XXX remain as

for readout year assays system-wide half the offered. sequentially products first about WTA our we've Transcriptome orders were which serving XX% are as Atlas assays, readout GeoMx our of quarter. from orders. translational half QX, XX% Transcriptome Whole on Repeat from NGS exception. our leverage of about ever that research In with GeoMx are accounted were revenue first Our WTA and strong Whole during orders Transcriptome the Atlas, consumable history the a focused or disease for introduced increased really researchers, customers second our who Whole NanoString Assay already and of has of is the strong human placing follow-on no NGS

Human has with adopted translational researchers, The large assays also discovery the nCounter represented WTA also research beyond half Whole about are translational fact, Atlas now are NGS readout protein opportunity including In can page model the our organ expression month market be use infectious DSP also were datasets during embraced database Transcriptome of pancreas and with disease to and of as that Whole as the which cell biology have results and in Society traction as assays Transcriptome Transcriptome of are driven to neuroscience, We're NGS we're as has research. first Spatial of for including Assay. have ever immunology, the Mice program, Assays A types. Genetics Transcriptome of interest Organ efforts, focus. website already lead mouse Whole our like of getting on for several groups section brain, the a customers the about to since. Atlas large XX% atlas the core meeting gene research continues based commitments leading a or diseased the unfolding. traffic via and most ASHG quarter GeoMx from that introduced record cancer in discovery mouse diverse how spatial backlog These Atlas, the historically spatial accounted to organ of important for who DSP leading in and much specifically mouse five market In access adopted includes completed become to excited of third We and GeoMx interest of human a the well Spatial GeoMx on well researchers quickly the research, Atlas Organ using healthy our projects. expand and organ, through instrument Transcriptome atlas taking bump basic meaningful originally generation, projects from kidney, genome it found colon, our brain, projects reference additional growth helping for full third Assays new the atlas number developmental Overall, that using XX% XX% external a us quarter, and with readout. committed system American the for the the year. seeing human were in work our continued products lymph discovery from nodes, show of new Whole we as for franchise extend orders by last who tissue unveiled been In expect website about key we both human biology earlier drive the our GeoMx rapid road to deliver by we atlas organs, demand structures Spatial which projects this indicators from is and tissue. for came our as technology October, researchers of Whole our mouse strong functional images as of the Organ

of new a measure Molecular in category with planned for next objective XXXX launch is and spatial the imaging Imager an cell for at higher be strategic is our seeding market of development proteins to for Spatial advancing expression Imaging franchise number the that's second or resolution biology Molecular cell of to up year. important biology. the our or the spatial offerings by platforms targeted single Our sub expand shaping RNAs commercial resolution.

GeoMx provides Imager Molecular published and corroborated the a by interest sell-side numerous Spatial Our to in DSP. perfect GeoMx transcriptome expressed customer hold by analysts. analysis who've by recent SMI acquiring further an customers, using already Perspectives several and held complement surveys collaborated

in period more reveal Spatial as to are our exciting We an about details Molecular beginning Imager. we're

this our focus key me outlined morning. in developments that three release Let press issued on we

imager, First, captures SMI mission the is CosMx for imagination celestial complement invokes DSP the universe and we've of the GeoMx brand unveiled is brand. our brand CosMx provide a biology. aspirational to name to to The our our chosen map which

dataset researchers dataset resolution the SMI publicly from power using of generated that and apart at highlighting cell the allow CosMx CosMx lung see themselves a subcellular dataset others the specimens. we attributes the in set within cancer Two of non-small released key and competing to This past. imagers performance single unique eight new Second, this first resolution released mapped characteristics platform. this expression RNA by contrast high includes for with data

competing First, platforms. for approximately number the by almost CosMx X,XXX from RNA genes SMI dataset of covered twice genes, maps the

NanoString's open data cell packages. interactive resolved downloaded an cancer viewer through The consisting researchers explored analysis paraffin non-small analyzed and can XXX,XXX XXX website archival millimeters. the lung be The this discussing it single overwhelmingly FFPE challenging with sets the the release, apply compatibility peak forward ahead. CosMx the at samples. has positive. imagers, who've in prior months to generated from luminaries samples type third to fixed tissue of it spatially from can for across over XXX competing research informatics sneak be to value through platform tissue research cell of well with as broader CosMx Formalin field, complete we to The apart dataset accessed samples. using unlock SMI got been embedded, party source transcripts map the or The a And clinical Second, data was SMI million for in Early by samples square and to as dataset allowing and a look of community using feedback the cells, community. and FFPE

CosMx chemistry it application Our which a and customers will cell describes types and achieves. as as online cell performance the a SMI reproducibility, FFPE of be details viewed major bio-archives SMI the a of the interactions. in identifying including to the now of performance purchase. journal the as powers It as cell sensitivity This well third the release reference the key resolution, serve CosMx and manuscript platform CosMx tissue, is measuring considering manuscript, platform that for revelation can such regarding providing in that to

and Together, Spatial compelling the data highlight by be The [indiscernible]. of SMI spatial this suite that portfolio to Annual product a next of the from We CosMx attend. to CosMx there. will event you hope capabilities genomics out will a competing showing to to applications need the section outside our you addition program. DSP CosMx providing in SMI the on investment not paper major meeting biology. in see February day for Xth on represent half CosMx details chemistry Advances in GeoMx teaser in AGBT, groups span showcase further we FFPE, work will which provide early details more host will or express SMI, Summit, from This session will XX-plex protein Florida. at imagers, coming Genome XXth, RNA to our be capabilities, open and In continuum do community of Monday, Biology will differentiating of AGBT the registered provides and expression and powered to Orlando, technology molecular Technology, This access be many on of protein SMI

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

strong slower than a During was the performance sales expected recovery sales. our third mixed by instrument quarter, nCounter consumable offset with in

at XX% quarter side to instrument quarter instrument to exceeded consensus nCounter's that Our Year-to-date our the returning as combination three on indicating sales was of the simplicity, strong our instrument robustness continued demonstrate instruments million. $X sales instrument demand of similar estimates and for pre-pandemic unique by we for the the roughly levels business. power first of sales nCounter are nCounter of revenue during XXXX,

oncology nCounter as our infectious higher. are the our been for diversify including half never applications and in which papers the new non-oncology has into nCounter to publishing disease. pace third systems beyond sold nCounter immunology areas our continue about customers using were quarter, We of Meanwhile,

our have to by more total bringing XX Over nCounter enabled our customers months, technologies over past new date. X,XXX X,XXX the publications to papers, than published the papers

said, customers base being on nCounter franchise QX, than and samples sales that are owned consumable nCounter been one biomarker during expected slower pursue analyze biopharma particular research our lingering of it An of healthy looks customer impact our is that about remains Our oncology biopharma at XX% of XX% These companies of have studies. the vibrant. nCounter COVID-XX straight on during segment typically customers CROs. clinical by focused nCounters by users nCounter collected estimated trials. companies oncology That

biomarker pandemic volumes was slower As clinical of oncology sales enrollments panels. slowdown which for nCounter slowed. into today, oncology COVID-XX downstream studies consequence the trial the began, lower translates of discovery The

me in how impacted nCounter Let quarter. this consumers third illustrate phenomenon the

impacted to and and were The supporting returned levels. pull-through America suppressed of consumables researchers that were of academic to used pre-pandemic immuno-oncology panels biopharma companies sales and in North quarter, trials. third remains the approximately are XX% biomarker this During thus below far expect pre-pandemic averages full has nCounter our deeply in about extensively in translational specific and spatial at To pace. consumable XX% healthy further at most market. in than not biology summarize, it's improved nCounter remain APAC. will Pharma in research clinical On in will pharma that and contrast, project XXXX. in when utilization increased to resume XX% we QX demand difficult both solid studies QX the more In see by levels EMEA recovering pull-through penetration of pre-pandemic we to momentum continue to the with basis, discovery

track capability begin and half and compatibility unique second the to has on FFPE in is RNA SMI plex of shipping CosMx best-in-class XXXX samples. with Our demonstrated

the consumable strong instrument offset of by business than had slower business. on previously the we recovery sales our anticipated side Lastly, generates nCounter continues

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

Tom Bailey

and Brad all us thanks joining for Thanks today.

installed instrument quarter about nCounter service with growth range was and in million and utilization for was by revenue provided was lower the XX% million the of from Annualized most residual second QX, expected revenue million contract impacted XXXX revenue sales. our revenue for the quarter delivered QX growth continued a consumables shipped of and per Annualized service we instrument at QX at was consumable million QX by of instruments million during QX. quarter at impacted ever the for or and representing revenue $X sales XX%. up materially to TAP $X.X $XX.X high-end system nCounter year-over-year third our $X.X pandemic. from year-over-year $X.X contrast, about was QX representing COVID-XX middle August, In with consumables quarter nCounter pharmaceutical solid was the the was $XX,XXX and product about XXXX, the consumables GeoMx was total XX be in from sales. growth as guidance to QX GeoMx of was nCounter QX. installed XX% highest nCounter year-over-year pull-through of $XX base. in $XX.X in of posted For XX% year-over-year instrument approximately million $XX,XXX effects our industry compared million, in growth consumables increased GeoMx pull-through DSP XX% Service growing and driven customers. guidance than

manufacturing certain on prepared. or press Please margin compensation, have stock-based Investor are expenses, posted and removes our adjusted to our Relations measures guidance results release webpage as to offset our basis improvement growth for The revenue compared which provide as impact to one-time by adjusted a in product QX the year-over-year. I'll with we XX% non-GAAP costs adjusted Adjusted of increase made gross an driven items. XXX increased and about improvement year. primarily Turning due was consistent development development million, investments our DSP the point of refer period service. and R&D well last with our on information was CosMx in the to to how $XX.X basis, increased non-GAAP was and primarily of year margins partially annual depreciation was range SMI to our GeoMx QX providing to program. and associated TAP detailed XX% or was personnel our exhibits expense capacity prior R&D additional by related costs and higher compared

spatial cash, as as year technology continues. to increase customer solutions functions. CosMx SG&A an SG&A commercial our and finance commercial QX including will year-over-year. and exited to our implementation due and R&D made to of costs was XX% our initiatives, was of Adjusted quarter our well $XXX to related loss $XX.X support equivalents operations and information as related expense approximately and support million, expense Adjusted of investments. million with and short-term new investments expect investments SMI expense through balance biology increase primarily the increase sales The the $XX.X licensing force We was EBITDA groups, service the we development expand in cash of million

three nCounter GeoMx franchises trended full the year Turning XXXX, in outlooks to guidance, for different through our and quarters directions. have

with orders continues full biology XXXX the now revenue major system our top our We spatial trending Our guidance year and expect driver to of end growth range. GeoMx be franchise towards GeoMx to the in for approximately million range. guidance at full range the million $XX driven will of revenue of XX% the annual order by growth upper $XX our be year instrument end

consumables levels updated Our range expectation of million system. year revenue and XXXX to full annual nCounter $XX is of a guidance approximately at approximately $XX updated based pre-pandemic for $XX,XXX on million expectation sales of instrument pull-through continued an installed

observed of to on this issues believe into reflects time, similar residual nCounter updated nCounter utilization, the in what QX. range related these to issues pandemic can residual was continue guidance impact pull-through XXXX. potential impact At we consumables Our pull-through consumables

offer and we We outlook XXXX further quarter March. our in provide results fourth will updates when report

service what the million million we representing $XX QX. includes This will orders XX%. revenue XX $XX QX, expect we $XX GeoMx expect For by driven range to year-over-year product of million X% revenue instrument in be million to about be and range of in GeoMx growth to to of new $XX

million range also approximately nCounter with to $XX,XXX $XX expected installed of QX $XX for guidance $XX,XXX to Our consumables million nCounter pull-through to includes revenue in system. annualized be

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

Brad Gray

this as beyond franchise year-on-year instrument and to DSP discovery. biology. in we're expanding map closing, spatial our and mission having the Thanks, strength dynamic core XX% fill extend year into basic our market banner biology is are GeoMx a research of our and lead we Tom. In to orders universe continue to in successfully growing our translational

to of attention Together like come. details its plex that, for and research to your CosMx FFPE in the about and line the unique Molecular compelling the leading spatial strong capturing market compatibility CosMx reveal drive Imager, for more years we the open GeoMx are Spatial biology With top-line suite As sample product our we'd growth up and promise create most questions. to community.


you. line Morgan. Peterson from from J.P. [Operator first Thank Tycho of comes Instructions] question Your the

line is open. now Your

Unidentified Analyst

Hi, into good in XQ, what afternoon. starting with recovery guidance. Tycho. nCounter, far not due have Just any no Maybe so But This from XQ that in impact, us XQ is there I know Julia expecting you GeoMx. in readout for on meaningful to you're impact weakness of trial NGS sense. confirm a for observed terms And pandemic entire is meaning the is just incremental to the activities? give to like

Brad Gray

the question. you. for you, Thank Julia, Thank

You were so repeat just I going back coming heard. what through to a little garbled, I'm

have effects for whether pandemic. asked run during I know consumable we whether trials than study the I pandemic. And in clinical the far down samples downstream clinical is X,XXX that we're nCounter research think or did pandemic seen biopharma? just during something plus collected fewer – any is and that of you studies so we a And and how – slowed talked now first, slowed in recovery about of XXXX. about being the in activity enrollment that biomarker this biopsy demand in activities fewer course paused related saw one So, trial competitive? rather QX our trial from impact confident truly being

quarters the that our of driver for to but is not seen XX% expect change far, pull-through. to have the do overtime customers extent of up, a that accounted but of nCounter been lagging activities of activity. customer XX% where downstream run QX studies who are an start appreciate have a picking haven't too so on of We are biopharma not trial our may clinical remember indicator about base the biomarker number trial clinical of work pull-through. our in has consumable kind biomarker People actual company being which we important long many followed There

doing still to a our it's us. that of biopharma customers So not not with say business lot are

to annualized per average our may recovery they in represents pull-through done quarter was on in during even through average average. that third third a than given $XXX,XXX pre-pandemic full their But quarter not pull their fact, $XXX,XXX in typical the a the a quite In $XX,XXX that overall system pre-pandemic higher $XX,XXX per quarter, level. have system to consumable

was, of believe, pull-through the in drop primary QX. So that really we the driver

to it's systems. nCounter place know a for we large competitive a of one, do not issue? number Well, how we Now, continue

the instrument in highest seq in was nCounter any hasn't ever. RNA meaningful pricing been quarter offerings fact, or third out for In second the recent there of is change timeframes. XXXX QX demand Two there

about is really trial anything So we competitive changed. It do clinical dynamic related not we the activity. believe has believe to

Unidentified Analyst

the Got it. working on And give current super TAP how like? color you what many SMI, you're could helpful. program a on guys looks projects funnel more the the invested got to you order year? That's then [indiscernible] book, on [indiscernible] far may And for expecting are so feedback customer next forward? second see significant that going half launching any in uptick you any And have manuscripts of and

Brad Gray

book some but question, the Thank a about commercial you I and launch. were garbled, now until the path Julia. Again, were TAP full bit asking you you from for of overall think SMI order

So has between the SMI, capacity to as for said in past CosMx SMI our projects. exceeded We've signed XX so and projects now, calls, far XX we've demand TAP projects. those up manage

is We motion that the have. we that expect XX really to capacity projects and with than end entire the more year in

are some projects results. yield those of to Now beginning

We being And this next to for at the have meeting on the Society Cancer have of Immunotherapy meeting posters at few in a course lot We AGBT had a and of week for AMP that's books we'll week. Meeting. show scheduled the February. the some presented

more So get to we're out information exciting really there.

tremendously instrument to us that described chemistry as from the proof wrapping of it's half, datasets now between what's up left for that and paper second the do and a the now shipments really the visualize process this the commercial instrument into produce. tools In taking around in that as automation we've bullet terms and required to get large and chemistry and that software system well can are insights

instrumentation then next customer the size having some systems software. commercial first full and So half. program year really the place we look a at shipping forward to where in of half beta in We beginning and second it's instruments

Unidentified Analyst

I other. will Great. hop Thanks others let the in. for

Brad Gray

question Our operator. next



of line Your comes Brennan from Cowen. Dan next to question the

Dan Brennan

questions. for Thanks guys. the Hi,

Brad, bit The than you stronger starting there, XX% were GeoMx, orders outlook. here. we a expected order the on raised Just

in color in at ordering. think of as to we've the prepared b) color know order some I increase just in wondering XXXX, who's you So with gave for strength of then just remarks. anyway in this Maybe placements GeoMx. model book a XX% on And our the got little we I'm look and that to of could like XXXX early in opportunity know on how were for achieve? limited. replacement like related that you delight the terms through to the guys I customers rate are look you like is gated early you terms you wanted placement

So, kind question, ordering XXXX. who maybe early color multi-part a is you. and Thank of on any

Brad Gray

for Thanks question, the Dan.

majority span the biology translational readout new instrument orders discovery largest new GeoMx, to has the of order customers orders. strong. is who quarters driving and motivated mouse per and So the as hovered This through wave discovery XX% really GeoMx a in Transcriptome about the to and we We that Academic said, instrument QX quarter. Transcriptome fourth the XX now few of which set Whole new of you has book vast and truly a Atlas NGS pure deliver Whole about the driven expect broke XX% or been about for are biology new together we by placements. represent of XX XX% at customers. XX quarter of third orders group, quarter in capability, in instruments Atlas The the

So with for the we're the instruments. demand delighted growing

of instrument total terms of terms orders. XX% will XXXX grown in In year expectations, this we have

XX%. a we in is the timeframe. kind providing at enter in we'll that, the for where with are potential There with we'll be of to guidance you now year We're street course, models comfortable much the now. but And base. the encourage upside stronger course, place of February would models keep Of to

our of right inventory have answer whether gating now instruments. ability we terms anything orders, In is there's ship no. mean, fulfill the the I to that's to

pandemic We being being challenges. have with we taken many are That are had ongoing said, the at precautions customer that no supply chain sites.

to little up. bring a some are sites slow We

get months capital for and that's having as have So, the get our of a nothing employees GeoMx chain it this to those of a ability limiting human that still there respecting our time. demand NanoString sometimes But to couple while own much fulfill as that does instruments protocol supply three trained through take work is really in all customers while of our many in us for place terms our of onsite. at or to installed

Dan Brennan

to like Thank strong kind as And up looks two of competitive you landscape. related or a achieving then the you. growth. guys really it are Great. maybe one Obviously, part some follow a

So just there seeing guys of kind then And of wondering mentioned of what in you been you're towards you any there frontline on are had that's b) that supply concern but competition? was impact of tail baked either chain, kind the as all supply a of Thanks. reporting into the end quarter you season, at kind on issues chain in guidance? terms your

Brad Gray

Thanks, Dan.

its power the its distinctive of protein course, are of only of samples microenvironment in to focus ability we numbers on our capability, on Within based to automation, quarter, do not foresee of – our and biology. leader No the limitations system landscape, on and ability the chain position FFPE second focused remain, confident regions So during translational which appreciate. the fulfill demand supply competitive I think, translational in The question we but first. spatial periods tissue issues like compatibility, from of supply any short chain. researchers with our on in large increasingly think, process time, a perspective and, the competitive that that to its I research, the researchers GeoMx ability us the with the impact not tissue feel the many we translational

fact seen competitive or from have competition So any that is despite out increasing impact that slowdown who FFPE at the there, really this haven't there compatible we products, stage.

FFPE. compatible imagers with the some is players, type, the who on to position CosMx around think about our that XXX tissue market same relative have other I I we'll I be. think, We've we plex leading the today announcements protein mean, have capability. we've imager to really the positioning be I feel On capability which really good time. shown bringing side, we're important the that shown RNA will most as to of X,XXX market plex imager the

Dan Brennan

Great guys, you. thank


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

now Your open. line is

Dan Arias

be guys. go discovery not just what I on happened point the that's afternoon performance, the it's just have question inside Thanks. something that to to NanoString, mix? on business, staying work platforms, going but to Is Good to to work like the backend. about but it's back that competitive NGS looking going could that nCounter an Brad, GeoMx understand just in

Brad Gray

your consumable sales think is are we really GeoMx question asking, that Is cannibalizing sales? question your I Dan with Dan? nCounter consumable

Dan Arias

yes. less, or More

Brad Gray

think because that I don't and researchers. there accounts. I slower Whole because GeoMx our Transcriptome compared adopters know case been the is -- accounts Atlas have No, what think Yes. biopharma we academic the we any assay our is relatively believe within of biopharma to that's can reason And to pull-through see

we buying And were we'd if – seeing that's directly terms be cannibalization, we're seeing. not we of – really not that And in who what seeing Transcriptome the was that's have so, if Whole Atlas.

biopharma right and that biomarker In I accounts, than seeing you'd that we're kind think the fact, fact GeoMx it expect now a than research which if to hypothesis at academic we corroborates it's cannibalization disproves effect. customers, average the is it the within pull-through you on of little looked seeing at consumable less were be slower

Dan Arias

get of start of data think year, on expect the in that steps any maybe but that to production ahead today, I when the of sort manufacturing? and about market? platform. look of to more in of interest is constraints the you do sort constraints, there the the back half to half then there taking necessarily Are the as know should not And we released the second getting orders you're Okay. sort we you instrument that just imagine hoping supply when thing, system that you XXXX commercialization up CosMx the

Brad Gray


So new recall, we in launch the Site And we wave year. timeframe half GeoMx expect course our be instruments We'll our AGBT which and as program, be off the the that CosMx. as playbook year. do expect going there experiences time in through be instruments, we'll training going begin first the with unveiling very to instruments And customer we're of we're ahead do that we're to a half first their to That of of line. the that start will just by build we the second Certainly through manufacturing probably initiate I interest released data next the the we shipping may instruments be around We'll successful of first rollout procedures. our program we'll GeoMx of of going rolling first next be having that at the the a in shipments. is next a Priority can you careful GeoMx following the first I where something commercial for with will of did had year took scale. those hand actual really that the pre-orders in

way issue the So, much you're we have actual XXXX, the timeframe February then in second pace build we'll of actually recognizes we Then release into controlled. say when your revenue updating will in we'll that not XXXX as the more the system. to placing a which half of a and the extent of be revenue I result CosMx And will controlled about models would at guidance. to the have be instruments

Dan Arias

Okay. Thank you.


of Baird. Schulte question from the Your comes next to Catherine line

is now line open. Your

Catherine Schulte

questions. get guess expect estimates from pull-through and for left Hi, year's to optimization there? perspective there you what this to pricing at maybe launch? next before AGBT, first additional platform Summit a should CosMx, I the just do Spatial on And guys. is Thanks at or development know, sticking we

Brad Gray

making data work have to and experience making means the time. to – that data that's none so that's a of it's generating. do Yes, of works an bit And in the use, out left and good you do. so have so to risk we to of work. the software it the the that it it inventive. instrumentation good and solid that out focused insights engineering every engineering in to for work, for do draw that allow back the to we Catherine really overall software high and us has good a is comes is informatics of It's But anything still it you're bulletproof bit that simple on And customers that work sense just

it if the detailed be continue we'll In about of experience time really February that that in some focused pull-through economic to imager pricing little their on there. of timeframe the the and see a don't or early think we what get focused you primarily at undoubtedly research will summit a at I in providing on our why competitive you'll community and the system. to do of expect terms present expect then be terms market their to really can understand the or expect think of way spatial Street the yes, the we'll so be of to will much and want leader data capabilities of I chance system, to technology that to estimates, system specifications a access financial at customer program what to I learn see think guidance the know what in but about be more educate customers bit marketplace Wall the AGBT, the

Catherine Schulte

GeoMx added to you this your focused to up that most Okay, are think team think about growth GeoMx you you that commercial from you started great. for And XXX see count? impact team believe and for I expanded then do XXXX? head year of on added people in sets the And those how now. Have

Brad Gray

so larger for have year fulfill. at it about The some commercial overall our a hiring the positions the to have than well. expansion and -- today is we still was we gone third beginning still our team Yes, has of

– contribute. sales open I to for to think reps it and new we've takes this begin fulfilled up time. of about at curve time commercial XX% the come positions We our

quarter legs was third of sea really reflects kind So done And any people impact quarter – any impact quarter. from during sales I not force the of of of – an here outlined. deliver, hope heard, that they and to into we've that new the think fourth for that professionals provide what you they those to I and built what opportunity guidance some will us yet. hiring say found Tom expansion that in show some the the the second I would quarter. can third finding that – can Most do were their the NanoString material at

Catherine Schulte

you Okay, great. Thank


Stanley. Your Instructions] of the of question Morgan line from Savant next [Operator Tejas comes

Your line is open.

Edmund Debler

question. This Hi, taking guys. for for Edmund is Tejas. on Thanks the

and your mouse couple experiments? to – seeing human Are months and from of And you a transitioning initial given steady be the expect customers pilot to but both product on really seems scaled be this state? an WTA, the the human traction what First for that there larger with you better study been you strong to the market? on able phase are quantify at a has utilization would rates WTA,

Brad Gray

question, Thanks the Edmund. for

as for right Transcriptome we Whole are experience customers most getting speak. the Atlas their So, now first

in assays. mentioned ordered remarks, of I I first half their think their Transcriptome have my experiment batch customers As about prepared our WTA now done second and of Whole Atlas

of to more but beginning a are think least example I come. at lot in know early it's we pretty but we one utilization, planned WTA, substantial – at study I of a adoption to So repeat the still cycle. have that still is see scale there a of our on

I more of on. think goes there be as time will that

In during terms Transcriptome Atlas assays. of of the utilization guidance the for strength on consumable Whole our rates, our we did demand call raise August overall early

and guidance per where with it was That from system is is this in was per now materially from initiated last it where our $XXX,XXX both $XX,XXX year initial that earlier time to this in we right consumable utilization. guidance Our year. year up

that to number use So now. continue for I would

I think that's model a good of. off number to

Edmund Debler

in you. particularly And geographic slower and then on some you a trends sample of thank you're called collection recovery of you're of the distributors. and the since slower biomarker then discrepancy nCounter, of a I out utilization APAC talk know biopharma terms in in COVID Can regions, geographic is about perspective? EU your recovery right, previously seeing? And from that seeing, terms there trends rely you're you that seeing All you've

Brad Gray

U.S. have Swiss customers have companies operate U.S. biopharma companies really biopharma our huge European operations. big right. and Yes, operations as global biopharma entities,

see has in our North customer here since and biopharma America, biopharma strongest to say group, really our who helped has as Europe has a ex-U.S. geographic within I'd trends call. don't recovery do QX to strongest researchers of academic have region segment. – in have the did global the fully They academic improvement vary They behave amongst recovery. though tend improved we but from that see Academics segment. but kind markets, region. So us our the been to kept August pre-pandemic Asia both realizing we with from – QX, and really from performance

Edmund Debler

any got any of robust expecting academic it. academic light And environment, fourth of quarter flush a Got sort in end budget on abnormal it, or of sort? the funding market your seasonality are you

Brad Gray

guide the every left tend budget may they the fourth budget see as we over do But for quarter we have not year-end in a before major quarter. that deadline. do seasonality flush Well, use fourth people to

in that quarter seasonality but nothing I'd typical a fourth extraordinary. pattern just of quarter, our the So, say guidance fourth assumes

Edmund Debler

much. you Thank it. Got very


There back time. are Doug the no further Farrell. to I this questions like would at conference now turn over to

Doug Farrell

you Thank Excellent. much very today. for us joining

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