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Nanostring (NSTG)

Participants
Doug Farrell VP, IR
Brad Gray President and CEO
Tom Bailey CFO
Tycho Peterson JPMorgan
Dan Arias Stifel
Dan Brennan Cowen
Catherine Schulte Baird
Tejas Savant Morgan Stanley
Call transcript
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Operator

Hello and welcome to today's NanoString Fourth Quarter 2021 Operating Results. My name is Elliot and I'll be coordinating your call today. [Operator Instructions] I would now like to hand over to our host Doug Farrell, Vice President of Investor Relations. Please go ahead.

Doug Farrell

Thank you very much operator.

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

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

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

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

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

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

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

Brad Gray

the in molecular you spatial a which This of a in fourth scientific high spatial spatial one-stop researchers to completed shaping XXXX just our preview biology cutting us to release digital exited year, online and testament event spatial note, on product for about another during afternoon spatial the our we've Genomics than our field. joined researchers portfolio, shop Thanks customers. And being questions solutions imager Xth the today. the we at Summit, across by More demand and learn platforms our than instrument Spatial to our of is imager. Annual more caustics the hosted thank is to joining NanoString this the was year. spatial XX a robust NanoString interest addresses conducted as makes CosMx Doug. orders biology up Good quarter and and already profiler informatics the generated XXXX appeal as which on later molecular any with scale biology be our Illumina. X,XXX will unique GeoMx edge jointly science powerful exciting

call provide performance like our the XXXX brief our XXXX. of review During for goals I'd outlining a today, before to

of end us installed approximately we XXX top instrument XX systems. of million, system. And of more per than guided annualized record our we above $XX quarter, $XXX,XXX revenue fourth installed established year-in the This of million During pull-through GeoMx by which approximately posted and put $X driven consumer range. an was GeoMx orders the GeoMx base

and the CosMx several important Journal CosMx bioRxiv achieved also published in milestones. performance. We technology We describing a of manuscript

stronger Together, cosmetics, is and buzz quite these nearly created this resolution. package is set of of year. RNAs interest CosMx a that generated X,XXX the evidence application The the was X,XXX have for plan orders. downloads start provide also a mapping FFPE in in orders of of order as the dataset, largest systems we than XXX CosMx or data No XX and the of releases released over formalin-fixed paraffin-embedded by of its samples, cell build the grant customer at course that or out nearly in an our around a book publicly XXXX. and -- We manuscript, single data We statistics released using downloads instrument situ CosMx. evidenced generated This kind. to

or the relative returned to platform complementary XX Meanwhile, existing new to our first this instruments with year. of demand demonstrated in strong pull-through the to nature remain an are were CosMx if levels. The orders nCounter two for suppressed pre-pandemic biology systems a geomatics XX% the the platforms, full GeoMx demonstrates This pre-pandemic sales highly and for even spatial of QX sold levels as healthy bundled consumable ordered customer. either

Turning I'd strategic XXXX, the objectives to now year. our four for like to outline

adopters is within oncology, research, objective initially translational been for refound across were This to assay had a When into scientists reach strong adopters these mainstream multiple studying to genomic biology XXXX, introduction customers translational and discovery GeoMx was installed In in of of that base of WTA NanoString early first Transcriptome of with Whole CFD GeoMx of research areas years. further on outside vast is GeoMx of provided new or technologies. the nCounter adoption the it broadening embraced Many the universal in early allowing a Atlas, the oncology. focused areas sequencers. drive fundamentals Illumina and research. Our by interest launched,

three-pronged adoption push with further will approach. into these we a groups even XXXX, For

we GeoMx every system two of consumable most followed successful the WTA, which needs are human RNA whole First, accelerating the launch mouse of assays mouse quickly it assays, the model model The the area became that launch common transcriptome with GeoMx the ever product of as is was for the portfolio centerpiece uptake our systems. we've primary are the serve the launched We providing offered. last most research. of virtually When any biology. of WTA year, discovery cover the

our we're offering tail fully long assays. discovery XXXX, cover by the launching For expanding to of RNA customizable research

to of announced GeoMx our assay of samples This XX four workflow. expansion we RNA Last the GeoMx reduce protocol minutes we will using less a of Leica week, prepare system. our time time hands enabling and Rx automation to Leica workflow. at than with stainer the assay Second, RNA are slide, the Bond on partnership the full up allow per auto to the customers enhancing

for introduced protein addition, of a In single a both codetection RNA we've FFPE and the protocol from section.

customer We team have activation. tissue experience human the we've XXX and proteins alongside accelerate expanded colorectal from And single our GeoMx demonstrated WTA codetection cancer of finally, site of over a customer our installation, training, to section.

datasets which first been key organ who've researchers profiled X,XXX containing generated more with from than the Atlas, interest have we of organs power publications the we GeoMx. QX, from data that applications, downloaded whole six structures of analysis. a for These the diverse times. fields will of Third, installment the spatial publicize datasets illustrate released transcript and across In have data

customers expect XXXX, and popular that During plan We and expand quickly to organs reference states. access additional include healthy discover to datasets we diseased these spatial both function how organs become to the Atlases can to and

addition, submission. papers In the we're XXX biology reviewed leveraged the recently being tracking for many of spatial that peer paper more prepare using saw publication we GeoMx. And

nine feature in an action-packed GeoMx. looking three forward using presentations that will June abstracts Meeting to we're oral and HGBT Finally,

from system to biology-driven the spatial several the put Spatial cancer. who those cells Science that as attributes verifies Carter and particular clinical Estes to high X,XXX as it experiments. as size launch single resolution viral of a data a analysis, The releases experiment, supported and to important CosMx of double together, from the and of of only CosMx a become University and Our plex in covering she entire with be market-leading low expression translational of applications. whole & modes, medical with tissue. that most an And questions. these plex presented Biology translational unbiased platform researchers biological assays will Yesterday, we of enabling second had protein. a a research commercial cell to the CosMx any market, CosMx as and virtually to subtyping established already the between run virus data from resolution research, The believe competition. specific and presented bound Health then research. sample to cell the launch come up analysis. a well will solutions be featuring that spatial whether the that strong CosMx the of by in cell launch the that studied the Jacob also available, CosMx year. sub-cellular perfectly covering portfolio the these type surface. provides serve, throughput tuned allows between steady presentations research are sub-cellular cells. When is discovery run distinguish applying platforms TAM NanoString's ability applications. reputation, infection he CosMx variety the CosMx discovery billion a study we high RNA will CosMx simply for segmentation that XXXX or GeoMx, to cognitive the applied the a poised provide with providing the gene stands both we the molecular Oregon mode negative with which of as to brand, to high is correlation cadence highest and industry of goal demonstrate differences In all the and imager. fidelity leading market regardless demonstrated biology Clinic important With throughout will $X Xth plex of PDLX the Annual noisy of for imager RNAs. to with those Mayo that enables imaging the study spatial is complements leading has the our use CosMx CosMx compatibility wide tunable Summit all for Jodi triple CosMx breast solve above by CosMx capability slide is leading well needs dual imager of CosMx assays benefit continuum spans the channel, image FFPE CosMx system

same with confident beta the capacity commercial are fully We feedback we ship use subscribed. same CosMx QX, the successfully the allowing system of to to launch the We during GeoMx, quarter. that TAP, which dozens Program, beta on follows Around actively in success. to strategy accumulate now ahead orders we time, we or plan we workflow. to currently used is Technology the in installation, Access shipments expand get first the customers our are systems for so training, fourth its to promoting expect us CosMx playbook of and our Overall, and CosMx

will approach, objective strategic integrating to storage the access capabilities the team suite our This allowing network share principal a will is collaborate the that will and analysis GeoMx to cloud-based this within as third provide [ph] investigator. the to to typically the to users, allow of an Our them institution software. involves Migrating or of CosMx as portal pathologist, as seamless research both a in visualization technician, bass include cloud Spatial With luminous universe a aiming portal. are for industry and and spatial of genomics. biostatistician, are lab researchers. team launch such and real-time, growing in data platforms tools required and computing open state-of-the-art with informatics biology standard for solution launch, we data this well massive year spatial integrate case, for broad a across source

Boston Summit, of cloud-based a compute datasets. important cloud, We powerful Genomic can for capabilities capabilities. the spatial and University, migrating be from storage that experts College, the spatial of to us, Weill Medical that believe scalable Spatial of our spatial our benefits data leverage and portfolio complex advantage identified solution completing another panel this power for competitive Illumina informatics biology including AI will Cornell During of

plan spatial we testing this portal in Our the progress QX quarter. is and beta offering into to biology fourth in expected to launch

growth nCounter Our fourth to the sustain XXXX of objective franchise. for our

a system all channel. which building highly and gene on spatial our provides The business Our expression. rapid nCounter funds nCounter our we analysis are provides foundation franchise commercial multiplex global solid

has levels, in especially Instrument returned customers. the business has of biopharma decreased instrument continue pandemic, Consumable XXXX. pre-pandemic Our to pull-through we expect pace and among during to placements this healthy

to segments place over in We this the revitalize number year have a initiatives ahead. customer help of

or to TCR portfolio simple regions assay than We panel applications consumable expand to the TCR biopharma. can nCounter deliver a are diversity with in usage important a less shifts hours. TCR researchers a and our in We new recently measure repertoire roadmap of that allows diversity that in also have XX variable results that cell introduced new into T

plan and also applications gene we XXXX, assays features therapy During cellular to and to new tuned application. that target with

In being biopharma addition, recently we ensure our sales important to have that expanded team customers well-served. these are

operating our over call to to details and financial results outlook the the review XXXX. Now, Tom turn I'd to for to like of our provide

Tom Bailey

joining Thanks Brad and thanks all today. for us

GeoMx data our million, nCounter $X.X quarter QX consumable the lower $XX.X guidance representing $XX revenue year-over-year end with nCounter of and detailed quarter, revenue service nCounter and our we've for product the our year-over-year QX of by above QX. upper was was systems, consumables in we growth instrument range, QX from line primarily $XX million, driven growth pulled expected make investments, end growth and the related to $XX.X compensation, revenue and pandemic-impacted margin $XX.X our million, press Investor fourth $XX,XXX was $XX $XXX,XXX base Earnings investments quarterly GeoMx revenue and nCounter manufacturing an activities, was which basis, results prepared. exhibits QX. million growing as of to expenses, utilization guidance for the as release instruments was to TAP adjusted XXXX, in growth was have Annualized or positively QX pull-through installed million, GeoMx on of were items. and sales. XX I'll and measures costs increase biology from by flat at by software revenue consumable year-over-year. $XX.X shipped expense representing was Adjusted million of XX%. trends last $X.X as removes service XXXX Adjusted adjusted upper QX certain with calls. non-GAAP year. was are an the development billion, in increased in million QX or QX that QX, our R&D approximately the and information installed about about adjusted personnel impact about about was increase as XX% of on GeoMx of of and to of flat about but recorded revenue revenue $X.X depreciation, GeoMx year-over-year gross impacted the system. through in in across SG&A XX% including margins analysis million the driven XX% R&D we stock-based was storage impact the the approximately detailed to and and or to for and we Please XX% year-over-year. support are million service For was posted one-time provide in for range, to well to support launch capacity of DSP was growth, CosMx CosMx. was Relations offset increased was our continue contract development making year. consumables Margins as compared spatial compared by last QX expense and reflecting same Annualized previous page Service XXXX product we web the GeoMx our platforms. DSP XX% growth non-GAAP technology refer

implementation and and related new including of primarily Our QX spatial due salesforce, functions. to our and was our operations, groups, SG&A expand our investments licensing finance increase solutions to as service, commercial, commercial expense initiatives, support biology-related made technology customer costs to well to investments as support information

loss million Our QX. $XX.X adjusted was in EBITDA

year $XXX end full XXXX, our and revenue million, product year-over-year into growth the XX% in service line of guidance was updated Turning representing upper of range. with and

to above Our XX% upper as compared near our updated and of a guidance represented represented in GeoMx annual landed nCounter range XX% results impact guidance end updated results and range landed and our annual growth the XXXX. the growth middle of pandemic

expense margin our adjusted For updated range. year was $XX.X and was our and year-over-year XX% XXXX, representing $XX.X adjusted XX%. approximately R&D exited XX%, with of expense investments. as with of million, XX% the year-over-year XXXX to guidance growth. representing Adjusted quarter compared EBITDA and was increase gross million, full million was equivalents, adjusted in $XX of increase the revenue was Total cash SG&A we XXXX about $XXX growth XX% cash, operating expense adjusted million loss in short-term line

now our We to will business. to expect in cash sufficient that current Transitioning key outlook. sustaining cash while be investments resources the XXXX our our breakeven, achieve flow

to We For revenue achieved representing annual million, $XXX the of and to XX of annual $XX expect million XXXX. to revenue revenue XX% XX% to GeoMx growth $XXX GeoMx, XX% expect XX% million, or XXXX similar growth representing of we we product of million growth to to service in

of GeoMx GeoMx pull-through to be XX% consumables growth basis. about we XX% annualized and $XX,XXX expect year-over-year, expect instrument We to an revenue $XXX,XXX and between on

XX% the we to about half, and second be the then overall, year roughly of the GeoMx course pattern recorded of revenue GeoMx in to and to see expect than ramping For year a seasonal the lower quarterly half with the quarter revenue what in substantially year. similar we seasonally of last through pull-through being first to first that and the in with XX% experienced is XXXX, similar

For about expect In to all to nCounter $XXX revenue, service nCounter, X% XXXX, revenue or to $XX,XXX flat to includes instrument remain compared to which growth. million, we approximately year-over-year we XX% expect as XXXX.

pull-through Our consumable per $XX,XXX nCounter approximately system. to guidance assumes $XX,XXX installed

year, assumptions to nCounter the makes For in consumables as recovery of full any levels. it to the pre-pandemic pull-through timing no

see substantially to pattern and we quarterly is expect what revenue nCounter experienced seasonal XXXX. in to that We for similar

clear, our Lastly, first not expect include to in be guidance does revenue record our XXXX CosMx and CosMx we XXXX to therefore, revenue.

operating commercial the substantial for gross and R&D we growth be adjusted to of as the be XX% to continuing expenses benefits the XXXX investments in margin XXXX, to as organization. the range XXXX we GeoMx. with harvest to revenue expect instrument-heavy, mix our in more given We modestly XXXX in to our to compared we begin made XX% grow expect of

platforms. biology For to million the $XX we our approximately investments reflecting adjusted increase at research to million, record year-over-year X% midpoint, a spatial $XX expenses, development expect in and sustained

of record to midpoint, commercial a expand to to at support our EBITDA the general, in X% increase the reflecting impact XXXX $XX million efforts. expect administrative biology, expected selling, be we million made and customer spatial $XX $XX $XXX to million. million, to full XXXX expenses, in year year-over-year is loss Adjusted investments and adjusted about For we

first $XX the million, million revenue. of to the be range typical seasonal For revenue includes quarter, million $XX $XX to range patterns. to and GeoMx $XX nCounter sequential in we $XX reflecting million and million of to $XX expect million of revenue, This

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

Brad Gray

provided us now moves Thanks of serving product and market the choice closing, to provide biology sales natural more the by to that that will for decade. over compelling new open catalysts believe and recognition, progresses. a spatial investing launches outlook, balance pioneering establishing while GeoMx our Tom. healthy CosMx decade make a sheet, commercial biology questions. be the gives your spatial next portfolio portal market, biology line The for spatial for are we're revolution poised the spatial our In that, clear lead as ourselves growth NanoString the capabilities. the we'd support, and momentum We additional researchers With who year the XXXX from a like year our and brand global NanoString strong our to leader. channel With in than the biology revolution as

Operator

Instructions] from [Operator go first Peterson Tycho comes question today Our you. Thank from ahead. JPMorgan. Please

Tycho Peterson

I'm so instruments, the revenue you you to is looks XX the recognize good pretty shipped but start On in XX. for ASP, out fourth quarter, Thanks. consensus. above shipped on GeoMx it guide only and almost acknowledging -- going and like

this might what rate as think in like WTA out? Greenfield you kind goes mouse how kind touch do kind the look on how we that of you lastly, think to much once take you And roll here about workflow, that you of automation dynamic? the customers roadmap about can then existing? think there do And Leica versus the the then So, of with on of maybe assays,

Brad Gray

quickly, I'll for hand other. to take then first, Brad and it I'll Tycho ASP the the real question over

did viewer on systems [ph] correct, in we So, we ASP, fourth RevRecd you're ship the that quarter.

just the And math do so was ASP -- QX ASP, when our you on little XXX. bit a below

we've a terms with of pretty in quarters previous bit in consistent GeoMx what experienced overall it's lower, for achieved in ASP ASP little we've significantly was So, quarters. previous but in below not of what

Tom Bailey

next Tycho, questions. the I'll two take

the of about us. estimate for on and in market customer mouse impact fourth a expanding becoming human We big of customers what tissue into not can mouse excited Greenfield and Full of fourth experiments. mouse begun the GeoMx. segments is our spatial the Technology that do has XX% First, assays the mouse Transcriptome is on introducing most see doubled customer Atlas substantially set served use we're in third test assay addressable human revenue -- for that driving biology past, are about a in already of of the and meaningful between NanoString We've that really our total terms almost the quarter, Program Access a mouse GeoMx part assays to for

And and And where those biology. GeoMx's throughput of So, working for auto numbers users to we about platform. are staining takes the customers companies to able large is being run those places The power drive biopharma is really advantage in our we're reach to large consumer grow excited processing superior medical What encourage new being scale see exciting business. the XXXX. of it in like adopted as samples. want that with centers of obviously numbers biology large customers full protocol Leica are enables spatial samples in spatial of a it academic to we who

to forward look broadly adopted it's be that now more that we So, seeing automated. fully

Tycho Peterson

are from about willing what And forward, for litigation how to their XXx curious just you well? choosing Xenium, the the then Okay. on as comment point competitive you are customers reasons dynamics? CosMx, platform? And And you on with then hearing think as do

Brad Gray

the not Sure. other Well, position studied the already litigation confident have we and do are a what said, that than on we've reiterate not we comment to claims in infringe. I'm to

buying to Remember the in think spatial prepared my I of highlighted GeoMx. were our remarks. portfolio I CosMx XX% of through NanoString bought that features overall terms product who combination bought also are and it's into why in already CosMx? and people brand those trust ecosystem of XXXX In choosing or in in had

they see multicellular And with of the of work amount CosMx. transcriptome sub-cell our single and resolution at products, doing with know the kind our So, overall resolution complementary they're they well, on system. to, know increase GeoMx they're and of, excited they whole the nature they biology

In we of terms of both number and dynamics, specification are corporate and natural I capabilities think going look leaders contested demand growth is portfolio. to demonstrating quarters ahead. the of the the offerings. do feel forward product We the highly power field And with be virtue of to a that with competitive imager the by the in we continued in that

Tycho Peterson

then just one And hop-off, Or will quarter, opportunity? on quick a before launching be Okay. I a that the in revenue that spatial that complimentary? cloud you're third solution is

Brad Gray

spatial biology Yes, ultimately will a opportunity. revenue the provide portal

great there be incremental more So, we're revenue so revenue not Obviously, and It's probably enable XXXX related objective of run revenue an But of -- to still working beyond of large they a consumables. it's capability will and be. amounts it's opportunity. out a opportunity informatics. opportunity, first is customers do pricing what instrumentation will our that adopt that to the our to will our science XXXX

Tycho Peterson

Thank Okay. you.

Operator

comes Dan Our next question from Stifel. from Arias

Your line is open.

Dan Arias

versus during the just the preferences the And RNA? the when gene for for it and expression or it might specs features for -- you about it see protein that the of on comes I'm a come questions. that Summit and yesterday, talked boxes? breakpoints cell wanting Mayo about CosMx? who's protein work. wanting then might you're think when seeing? different her we the Is for start looking a Thanks where resolution applications Or for resolution Spatial to thinking guys. work Afternoon wondering when single sub-cellular her set from preference Brad, Clinic woman the

Brad Gray

the do productive natural. space in sub-cellular are resolution has of demonstrations don't for single of cell the for and think of being that that able of the will to recognized. And the inquiry yet be. is line last Dan, think there strong very has genomics is demand years. what power tell level time profiling sub-cell going the RNA single very several any resolution Clearly, thanks Yes, single RNA broadly relative question, utility that cell are at a I are in cell demonstrated been I to for

have able inside stuck surface, that was is it's it's value a staining around contrast, to has still sort days therefore, long whether on and being sub-cellular to the really the whether viral In infected And on very sub-cellular productively virus early of for past. We protein and one has for mentioned enabled the RNA. RNAs cell staining yesterday the tell microscopy resolution protein related but or the in resolution been time. of for

Jodi want are [indiscernible]. So, to for seeing they're pathologists people I be stuff like think see used Carter naturally looking I conventional think with to to that's that accustomed going that protein. because at cellular to resolution And something

Dan Arias

Yes.

on for Okay. I some here. helpful comments. the orders in CosMx pretty And then maybe year expectations just obviously, year, the mean, you early have

and you will So, revenue had of GeoMx GeoMx is in be the half installations reason just think -- out the the I made XXXX the in playbook that that in the or will there. coming I you back payment anticipate don't year. recognition be And in because the later the the year because mean don't comment had you think quickly? as half revenues worked back

just So, curious?

Brad Gray

and so be recognition worked orders. auditors. revenue is of recognize CosMx XX, I out accumulate quarter. when for think that But may the for orders with lot are new That Yes, expect the our that continue over instruments and we so would CosMx have rules trajectory XXs, to had kind you of XXXX. And per to XX to we of to going course able with yet GeoMx, where point trajectory we a the or we I platform confidence we're were for what we'll a back doing

the if and We be accounting therefore, required completely activated we've and systems the installed kept So, of us those out we'll be know guidance. shipping don't have quarter. rules all first just wouldn't systems It fourth in to and trained before the RevRec. it surprising

Dan Arias

Okay.

early mean, earlier the orders Just be I to assume guys have generating that. in year, one fair the that the it and by have they boxes might last XQ? therefore placed is on data XQ just that in could

Brad Gray

we Dan. fourth the not will ship commercial instruments think until quarter, I No,

we're certainly, instruments will beginning data in in quarter will in as no, QX. generating We But we first Program. those shipped expect field beta That the Technology instruments wave I QX. well of happen have be our in don't as commercially the and the second Access through to

Dan Arias

Okay, guys. very good. Thanks,

Operator

turn to go now We Dan Cowen. Brennan from ahead. Please

Dan Brennan

Hey GeoMx Maybe starting guidance. the pull-through guys, thanks and for one, just first questions. the with

would I impact walk math XXXX can on Omicron of go higher the behind we GeoMx?. So, little that bit thought the us, bit a with pull-through just a and guidance have WTA on through so the for maybe

Brad Gray

that think I Dan. Yes,

felt pull-through impact our the So, of $XX,XXX we of remind launch to ended of the year, with. we wake -- that range you guidance. already $XXX,XXX I'll Whole We has our raised in sort the up XXXX the been successful in to Transcriptome last Atlas

guiding initiating pull-through we're in behavior on days for the drop time. first early that of at customer the we that are I sight of XXXX will we're the of all time, improvements based over quarter, recognizing you we're customary remain the in great that we're pull-through even going a that year sequentially on what quarter that science, But, to customer of for our behavior workflow that now, WTA drive still of were use from range, and initiative of to have the sorts So, and line WTA that and the is part see fourth to. hopeful the of it's model uptake -- over this same higher. seeing

Dan Brennan

prepared NIH grants lines, think then for support that And that hear during of think And that does something mentioned Brad. I remarks, lines put along XXX orders? terms what what the the could something could correctly? did thanks -- about or how it. that context, those in you along we of are And that to in mean then Got you -- I just

Brad Gray

you're to, referring seen already think support Dan, our package I have XXX is CosMx. grants the downloads for we of remark that Yes,

kind be application would to the grant would purchase a this researcher that a needed is be that what getting the So, to platform it. and of otherwise, included information helps justify describes or the be grant in NIH to

could drive and indicator great XXXX demand. that those cycles So, yielded be think in Grant it's this types of in demand. and now of would I really long year a or leading going applications be later in future grant are

interest is in nice serious grant applying expressed researchers many that seeing a for leading So, indicator. funding

Dan Brennan

of sized the time I size a market. Investor the you've download, you and CosMx the be still a just that now you're relative Just I about you and a while some size early the Day, I'm got got this. you got bioRxiv data I GeoMx, early, Spatial have Summit and to you know sized more feedback And different here you comparable? your are think Do and you've into held wondering thinking -- get Great. How of it's probably believe opportunity from of GeoMx? Do you've insight yesterday, bigger? lot sense But CosMx a of versus is think this some probably you you publication, to trying think they're going what customers.

Brad Gray

strongly XX first And to adopt really orders think the believe those together CosMx, We $X I equal of TAM. CosMx Dan. with time that same opportunities billion Investor of our overlapping $X together them of Yes, and initially validated each Day a for we both at as the researchers. TAMs systems. GeoMx sized will that research were and billion We institutions the making labs respect said that that

sure. So, has sales twice playing has point I I'm growing rate, out have Do it's GeoMx the very CosMx growing this launch. that that was funnel the -- funnel could funnel not signals all well. CosMx will the But bigger? share same the at GeoMx any the been suggest been at be sales that in we at point

the may sign early many is -- is adding that be platform good week of recognition reflect, to maturing that important per commercial an That twice CosMx course, it's a important, but going expansion into we're funnel. of channel, spatial So, as own the the for in -- broad biology very opportunities of us. what CosMx the our

Dan Brennan

just then and final And it. Omicron Got a one, on just biopharma.

now, Just you Omicron due on -- you and XXXX? are and the into macro we some some obviously, through how here there? whatnot, but guide two obviously look -- kind come about figuring with and your just being just details where preannounced or are getting guide today XQ Like to either then quarter, but ramblings factors there's those ahead as of weak you biopharma to demand emerging the concerns we're you

Brad Gray

is placements first, overall the most could flows do sits big or are it's understand recently to small capital Broadly demand to why. think longer small and the story from Yes, biopharma in -- easy and in biopharma. of -- good But be That GeoMx, behind go remind and private slow public small part where fraction the to subject demand that most small to our speaking, biopharma the a XX% make the base, our comes companies very just to academic of are of markets smaller I decisions those not funding biopharma for customer our mean, the of I academic poised ebbs January. smaller do. that extent who capital of taking those companies a XXXX. be pharma who to overall markets the go overall to the companies same allocation of represent to

it our outlook. doesn't of so any And year full change

Dan Brennan

leading what slow that January slow are some Got it. to your you And have was about mentioned? January, question or my the referring players other

Brad Gray

that No, January slower relative say to we past. for it happens been marginally years in was December. -- slow has rush year's January always than experienced the in NanoString this is I'd

I and to year the March. February broader start where end in of into and see on range QX to in have the takes slow reflected our range a account that end we of into January range low that high of begin guidance, the think the continuing that strengthening in see account the recovery you that that we usual slower takes impact the than the

Dan Brennan

Great.

queue. Okay, guys. back in get Thanks. I'll the

Operator

comes question Schulte Baird. Catherine from from go ahead. Our next Please

Catherine Schulte

mix yesterday? of from brain Hey, guys. other chat with number We the around questions Thanks a in Summit Spatial the for far, you've guess, that tissue. questions. neurology the the from using sense any Do CosMx how saw first, feedback I interest areas? any be seen versus have And oncology GeoMx? how will from so you versus other and/or between the might nCounter differ

Brad Gray

strong, -- China, And which any in the the event. live held. Summit things, yesterday's having think ever outcome. was summit larger It's dial really even we've was Spatial that many from excludes yet, so people I feedback so two in to -- a great X,XXX Biology than very Yes, we broadcast haven't

answering get was get questions. to our asking engagement all of participants instrument people think processing as we polls extremely high purchase. calls those And of and I in follow-up about terms forward leads the look and hopefully that eventually, real engagement

the historically CosMx scientific pleased But traditional of in more translational interest set So, on are the we XX has past. doing today cell they're who lot do we're base, that mix very we biologists, We've XXXX. in RNA I customer a CosMx single with very that is cell questions, of discovery people a probably served. in from going have than first single the the a been oncology-focused interests for outcome. of think is broader the CosMx come ones. more likely the to to than And basic sequencing that orders received rather NanoString saw

where that areas great the that was reason ranking neurology going oncology wanted our many one higher seeing. productive the were means our other strength NanoString number to terms And CosMx, technology translational used. in CosMx science of is and if like pull all we're While of to than the of be from applications people help can traditional into oncology, accustomed really areas that's

Catherine Schulte

big you commercial team. a your now? give then And other recently is expansion you bit you it. team color CosMx was sales team got And mentioned launch? And ahead it Can that where How biopharma the expanded need right, more any us there? All previously? of

Brad Gray

people of XX% of increase biopharma. get customer people represents probably I exact total in number segment. say of focused on that will the in have will we quantitative we addressed the have But the a I in that terms Yes, expansion numbers important

who a have other also some well regions person's very of has We that lead. performed that new team leader in

part So, customer we're excited about base. revitalizing that important our of

like to will commercial very we growing GeoMx the systems. in pace course, consumable that of are us in are accelerate base of filling at customers out sales activated. same reps, the in year of had channel, in we this us now and installed the who our did other our can very of installed, systems In which are substantial help the customer investments experience areas pace rapidly sites team our trained, terms But where not GeoMx expansion manage who sales the those hire can help of team, the we I don't XXXX, a And continue the force. some --

Catherine Schulte

Great. Thank you.

Operator

final Morgan Savant Our from go ahead. comes from Stanley. Please question Tejas

Tejas Savant

evening. guys, good Hey,

sample recovery to rates are in collection So, seeing making not one Brad, maybe beginning biopharma holding anything I on know consumables in you start But nCounter, here you're yet? the I'll off normalize of from with quite from on front. your customers or terms

Brad Gray

and visibility have occurred and I hard rate the is playing the eventually for patient samples. slowdown play to But very running process past of that kind accumulating testing through the us visibility will core for into it's of in that expect pace at I pharmas [ph] are the now width lot don't science sample itself Tejas, which that the the do have out. accrual out into the of is. a of

Tejas Savant

far the and the instrument commercial portal the left enough. different launch Does in side? in on related of the the you're CosMx versus the essentially in as terms going beta biology final what's of what anything launch quarter, you then Brad, that to using be is the Fair it. Got the as And second And that's at informatics launch instrument yesterday there those commercial the on units that highlighted at program? spatial the on TAP Summit? on work the hinge go

Brad Gray

Yes.

me last let start to -- is which what the with question remaining with first, about done be what's So, CosMx. really

commercial launch. the of the amount system, engineering thing chemistry be overall on not that, do in its would to factor so working incorporate chance instruments an of software production launch. order to hope was that's we've So, have and engineering launch. to In will to we part but the identical with generated and biology systems. feedback appropriate need to seen box represents the rate CosMx the easy that improve data and a limiting we the on customer. We The are locked spatial that factor that the call presented finalizing is would here importantly, are robustness the use. the getting for it's nearly what a the limiting looked of the XXX% and which in cosmic that launch. now The not And portal we'll that that's important be and final still physically I its predominant the and layout prototype the it hands be of But Seattle, certainly will you've to software. up final But And systems quite between that instrumentation system at. interface, traditional publicly first not where be some shipped rate and our beta software released to

Tejas Savant

does flex terms the translate XXX. then that was think you the protein points of of I stood into cyclic over And it. mentioned protein to terms the that time. think side, Brad, with in and guys the that How increase coated on you sort the of protein I us hope of That's launching in helpful. Got that out like one roadmap detection approach. But are to capabilities,

So, of and timelines you on can any numbers kind share that?

Brad Gray

demand that, us plex saw Yes, it. go CosMx. if higher so with to a we expression protein are allow the on launching than XXX could chemistry Certainly, for we lot

than sites at epitope naturally actual the think on chemistry. antibodies the some crowding of tissue become kind I the of point, stearic on limiting rather in plex factor will protein

for be. the limit good CosMx's a plex, to going naturally factors. that's us be to chemistry it's that's other place It's going to So, not

So, stay have tuned, more over about we'll probably that to say time.

Tejas Savant

in you're transition pull-through you fourth and call embedded I up here. GeoMx the share of had experiments with one came a earlier Got quarter to whole Can versus know, now $XXX,XXX there? final it. to side where in that year. larger on in guide you in into your on mouse, some XXXX scale the few exited this terms you think the how $XX,XXX color human me, one for quarters the seeing And you've transcriptome customers

number XXXX and gives increasing just on you XXXX? what the we that? color steadily And around that had to as any then confidence So,

Brad Gray

mean began that in quarter. with to experimenting the new even not use. as I our a for third, assay Yes, of think workhorse customer still is for second fully the implemented quarter early assay. fourth enough days a many I But customers quarters the Transcriptome the it's relatively for Atlas three be Whole and

high people of limit yet. think don't course seen state of upper clip we're we yet are haven't assay are activated their the So, not seen now, fourth demand. I of or -- we've in with steady And instruments the quarter may which what that and of many placing the nature especially very apply that

terms guide on for I than to believe at is this line pull-through, our with is the give go. outlook I more to long-term respect upside of there but mean, increases point, GeoMx sight GeoMx don't going not in we that further pull-through I time tell impression multi-year of pull-through, the will not. want we're or that In downside, giving is a to there to where number have

Tejas Savant

time. helpful. Very Appreciate it. Thanks the guys. Got

Brad Gray

Thanks Tejas.

Operator

the of Investor to Doug of Q&A. hand I'll We've end come to Vice Relations. back our President now Farrell,

Doug Farrell

Excellent. Thank you.

is access hours number If you XXX-XXX-XXXX. please next any be should ID did To dial conference XXXXXX. miss a portion so. up the of in the The replay or be there'll that two call today, that,

callers, international use For dial ID same. conference please the XXX-XXX-XXXX and the in

for much today. joining your for very you thank us time. Thanks So,

Operator

call. thank you joining. This today's We concludes for

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