Nanostring (NSTG)

Doug Farrell VP of IR & Corporate Communications
Brad Gray CEO, President & Director
Tom Bailey CFO
Daniel Brennan Cowen
Dan Arias Stifel
Julia Qin JPMorgan
Kyle Mikson Canaccord Genuity
Catherine Schulte Robert W. Baird
Tejas Savant Morgan Stanley
Call transcript
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Hello. And thank you for attending today's NanoString First Quarter 2022 Operating Results Conference Call. My name is Selena, and I will be your moderator. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]. to Investor conference Relations. like host, to now Farrell, Doug would pass over the our I Please ahead. go

Doug Farrell

Thank you, operator. Good afternoon, everyone.

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

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

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

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

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

turn also financial over limitations can using page to with having there. data. posted of rationale reconciliations include to call weeks. our everyone You or analysts of measure like measures to Relations that look two selected Healthcare we'll to adjusted building With like under models, investors that, exhibits opportunity each I'd Financial speak presentation I'd release. today's at Brad. any and We in other press or for the UBS of be in to With you Conference the the Investor non-GAAP the and measures to our as that remind in many of presenting as well forward have tab non-GAAP their find description, GAAP we Information

Brad Gray

an early our have Thank commercial the science. our Spatial we and reduced revenue lead, dynamic is approach process established effectiveness commercial Doug. the to fields NanoString are of rapidly and growing continuously thank our us. changes remain you joining and biology afternoon, sales for product the at portfolio has temporarily Good and evolving visibility. our and approach you, one in forefront. most Recently, of and

underway In actions see we will we're emerge believe address and stronger beginning leadership have to these some We position. challenges, time, to even in our improvement. we

challenges the During over the handing our actions At outlook. recent eyed we call financial find to then address strategic our NanoString, transparent before our our I on them. our our to and today, being and continued call progress review Tom review will ourselves review towards performance. clear I'll outline objectives to about analytical

benefit believe have the of hindsight, understanding we our developed of in path QX, guiding a forward. the we and that this With challenges is understanding we firm encountered

we shows sales drove XX fourth delivered QX efforts in their Facing quarter see in those QX GeoMx into during that sales biology capturing with Retrospective reps our for opportunities. instrument long-term XXXX As two QX analysis of and relatively QX instrument focusing capturing GeoMx instead record on can reasons instruments. we spatial performance. XX-plus strongest less QX, time sales, cultivating weakest impact the orders opportunities, a QX execution performance developing First, uneven sales primary our call, resulted revenue April our an between funnel factors that we described performance: that believe spend during our the imbalance the the

Second, about team, commercial our January by to our changes grown over which the past expanded made XX realign effectiveness in months. was new has positions by commercial XX impacted

to specific can that performing of used is caused our approach we line same many by QX multiple portfolio commercializing to and was disruption the the this and is rate believe unexpected structure used mini-team largest trends. of approach industry by platforms by in and well-suited most several reflects our successful mix last of new traced The Our companies the is districts top and year. through be a

between opportunities the example, realignment that sales shown rates had reps transferred. during instrument much that has retrospective our than analysis those not For were transferred lower close

newly selling that in managers GeoMx account see to also their better less compared effective were instruments promoted counterparts. We

One quoting as On junior relative the additional consumables reps that our of to results, and side, impacted managers our learning as further from QX, sales product we've biology review still cosmic Since how transitioned QX gravitated roles been. or transition not three overachieving account identified secondary selling and two were as platform factors the to previous reactive in underperforming in towards to one the reps pace across other their we periods the activity sales our of key on individual of with GeoMx. is is has slowed between team on more performance. lines. After have prior since spatial effort those consumable rep effective QX sales CosMx allocate accounts that time their each

expected Another are informatics full taking due systems strong our impacting rate which to likely GeoMx of utilization to The is more reach overall new and customers consumable Transcriptome consumable their ramping capacity our is uptake the from installed previously sequencing whole factor recently capabilities. that run longer average than the pull-through. Atlas, GeoMx requires most

execution in the quarters. We have set put we that of expect targeted next a to commercial actions over motion improve several

training reps sales their providing leaders steps frontline been have additional for as new and are promoted customer coaching they intense the between team to fully increasing transitioned reps. roles accounts we and and First, and additional to recently taking structure, ensure adapt support

specific programs platforms well Second, site activation. involves across GeoMx incentives we're system and sales via sales speed This efforts monitoring focused time horizons. closely individual on to as activity rep and CRM balancing as our

relative our QX QX and orders the rallied The justice has cases, refreshing that leverage and sales marketing and actions, improved better do to improving. behind biology see periods portfolio. instrument CosMx GeoMx. early plan we have indications the We publications in is use and sales between to and clearly these breadth GeoMx XXXX. of some to spatial tools commercial XXX-plus and we're to team and our GeoMx same our differentiate power effectiveness Quarter-to-date, the consumable XXXX Finally, to

in we a during As commercial described our April annual to couple in we is our effectiveness recovery this of our XX take and the reflected updated guidance. quarters, expect call,

We recently performance as we on get this the will ourselves Dr. progresses, to and that track delivered parallel the of with that we commercial discoveries, inflammation. life back Therapy in Board that Directors. benefiting President and and insights continue years We is team execution, Cellular team. our Vice results strengthen oncology of same deep XXXX. improving is have She remind to and and based our XX industries, commercial year brings to Immuno-oncology experience as Seattle our Boyd In Squibb confidence I areas of record Greater Dr. Senior member Bristol-Myers of a in an to the Teresa how developing Boyd biotechnology area. in leveraged look the from tools is in are for the immunologist therapeutics pharmaceutical in to Terry novel forward and is over of her advance experience board. biological science appointed

the few to June be pre-AGBT those looking AGBT, who or action for forward a being back person Spatial or We'll can't our near-term X, attend. Biology catalysts. in meeting in on Genomics Turning to annual pack stream Genome event in Monday, We're Technology, advances Summit will weeks. and live hosting and in Orlando

the of Our Cornell biology our of of WOW be presentations and use as feature context Medicine will from customers, the as science investors for put into Chris our be the some which well CosMx a keynote summit during followed The Summit of will synergistic in a illustrating will by research. business. by GenoMx Nason presentation we spatial briefing

Now to the an strategic on year. I'd like for provide the update objectives

is objective translational mainstream of GeoMx to strategic drive adoption across further into multiple research. research, broadening first Our discovery DSP areas and

similar going GeoMx customer as companies. trends did obviously landscape. to to oncology. Atlas expected of QX, the XX% saw or increase sold of and is there instruments QX, our Whole customers than the GeoMx the of readout. we Genomics Research biopharma in demonstrate for to demand value about that Academic More were as we what during of XX% did fundamental adoption genomics NGS competitive orders we we field with in represent in While continue were not the very balance change first no of translational Discovery suggesting and The quarter during had key GeoMx sell the instruments Transcriptome

XX% discovery were Oncology XX% for area research outnumbered the On the month of assays NGS accounted scientific about studies the factor and using for our more of highlight of readout spatial GeoMx American on the for -- using business, sequentially the Conference had One performed pull-through. QX. abstracts than in across two the application penetration was number Whole a the of AACR, of the grew consumable at market closest competitor QX our Transcriptome GeoMx in side about New of We to remains field alone, last one The in research to continued or the three the platforms. a which abstracts Research, by Cancer mouth biology on impact was abstracts QX display record Atlas, with showing Orleans. XXX one. for from study Association

CosMx about said, a date Cosmic drive TAP. up studies to test sales exceeding XX its the customer GeoMx more for to customers objective stage worked instrument Other Access working more The already as specs are is our to of the of orders booked from in a capacity growth came leading is orders launch. funnel CosMx similar in the the or a allowed these genomics order molecular was that funnel second and public balance -- being our came TAP GeoMx would A CosMx the Program, to launch with demand customers Our NanoString's find imaging technologies the system from without also a them. it from set us XXXX test CosMx researchers our about the opportunity orders are of our in who and with than indicators GeoMx needing well Approximately and CosMx to the size at strong. is TAP twice industry-leading Technology coming instrument existing CosMx in through we This clearly of as our who drive XX of use highlight based of manuscript the capture ramping for CosMx give QX of of completed launch. NanoString. and the interest single-cell to expectations, majority instrument customers That reputation past, orders. platform. on strategy data during We're XX% COSMIX but who XX new for

underscore cancer ability the demonstrate multicellular the of while downloaded using was in this new to During will it and lung the data technology to pure immune remodeling. which activity [Indiscernible] track CosMx. downloaded the XXX-gigabyte second times, releases in Keep incorporated the on months set eyes capabilities expect milestones over commercial over a the data Biotechnology first QX, your marking X,XXX of additional identify unique remains quarter Nature ship the each several key marketing alone, we to ahead, to recently quarter. to for instruments describing CosMx programs tissue data during times. set CosMx in was paper algorithms view paper peeled and XXX the hit of

arrive and beta them before Seattle, to we're shipping first paces Our beta in our units June. internally customers have putting the systems in begun through to

month's have In addition, world three and will conference, AGBT abstracts presentations. CosMx numerous XX next updates, including

Our sample cloud, and the or third to massive capabilities data to collaboration by terabyte experiments is cloud-based the Facial per consortia. year access spatial objective that institutions creating storage informatics launch enables across up to can data-intensive, data global seamless computing to are for our X portal. moving customers strategic of

track on remains portal will with later and compatible year be CosMx. informatics spatial GeoMx launch and for both this Our

showcasing We more. and join the be we in to meeting AGBT June, learn this you at there us will portal to invite

innovation analyses. provide launch of of great our the with We've manager our under most cyber collaborative Cortene advanced a also expanded cloud version for We're biopharma enterprise-wide AACR with the vaccine Along instrument, ROSALIND [ph] team new one we the these Customers we new for to XXXX for the security channel data this the panels and success, intent. on the is monitor to harnesses robust platform foundational and global a development. conference, promoting multi-owned Pro production customers we pay our to Intel the sustain changes nCounter cloud-based and with sales to hand track see over based remains our that platform, that our complex want nCounter pharma off. and a stem objective used solution. to This to is that, starting our enhanced with computing comprehensive a customers. Pro provides Tom. I'll functionality. fourth a the power biotherapeutic test bioinformatics it and the critical introduced franchise. gene of expression for have Our supports the Pro relevant need commercial company record requirement With and of manufacturing, At cell

Tom Bailey

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

of quarter the service revenue was For and first million. XXXX, $XX.X product

million, was biology For GeoMx $X.X installed QX flat system. business, was approximately spatial $X.X annualized per GeoMx our million. pull-through was Consumable million. consumable $X.X GeoMx year-over-year. QX revenue revenue instrument was revenue $XX,XXX

we bringing QX, For XX XX secured our CosMx, over system total orders. over in to new orders

quarter a system. For service, nCounter business, all year-over-year Service approximately pull-through our with representing consumable instruments the million, the instruments new was million, installed quarter. contract of approximately XXX $XX.X new revenue and of by $XX.X year-over-year was our QX, was was increased revenue nCounter primarily installed end $X.X X%. instruments which installed instrument was our was about $XX,XXX driven service with basis. approximately QX includes during instruments and revenue nCounter $X.X nCounter installed the revenue QX growth installed and during base base annualized X,XXX million, per installed from consumable At decrease approximately GeoMx revenue our was XX instrument XX million XX% growing

XX% Turning on our stock-based of information impact press a onetime have compensation, or release page certain depreciation web to by were impacted and Investor detailed to items. non-GAAP increase for basis, on our in storage results adjusted refer by QX to that for SG&A we service or was primarily and undertaken DSP as our as an by provide well which primarily continue XX%, finance were expand will GeoMx how support our as due including support impacts cost margins we manufacturing expense CosMx. information of related was are points adjusted as related of as increase year-over-year, These Adjusted CosMx, across measures XXX Please customers and solutions are adjusted to our initiatives, by our Biology support we to by offset operations capacity in efficiency. well QX the our increase to to of new and investments posted product non-GAAP million, costs was an Spatial investments gross and last exhibits million, I'll our and Spatial Adjusted consumables Relations growth analysis XX% year-over-year, licencing related by R&D made $XX technology data customer functions. to have to partially $XX.X driven software increased and manufacturing margin personnel for GeoMx development platforms. groups in initiatives implementing basis investments investments year, virtual technology make Margins commercial driven prepared. salesforce, Biology and in and improve and to an expense positively of and to compared of expenses.

and loss adjusted March million equivalents of as XX. was were million cash and Our our cash EBITDA $XX.X $XXX.X

Turning to guidance.

sales and to to the For revenue revenue million in and $XX of range with upper similar quarter, reflecting of of range, in range GeoMx nCounter sales revenue half performance the $XX second the expect the to of million This to performance $XX QX. with the of reflecting $XX our improvement to we the in end, $XX includes end million be aggregate team bottom million in service million. million latter of $XX the QX,

updating For year, the and a guidance range we full $XXX of revenue million. to product our service $XXX to million are

and XX% million are to annual our $XX,XXX representing GeoMx, revenue updating growth of year estimated to XX% guidance of full For an full range $XX range to $XX to pull-through million, we year $XX,XXX. updated

range trend of XXXX. to the of the bottom by in is at $XX,XXX service, corresponds balance estimated the to to full level range potential $XX to For in and end pull-through in midpoint full The million, conservative which underway in the end our a scenario of second $XX our of remain the the prior close driven XXXX the which total are half a differences range. flat million close year. over The our GeoMx year conservative The year nCounter revenue the range end our reflecting opportunities instrument actions through that GeoMx rate ends corresponds $XX,XXX updated during upper primarily experienced instrument revenue. funnel that we resulted QX annual of are scenario to and revenue year on to updating guidance rates in a improvements at to lower

Turning to and margins expenses.

updating our of full gross expect our from million million million. affirming the making we adjusted $XX are range operating guidance EBITDA for XXXX which year and million With ranges, in our adjusted ranges. are XX% range will to $XX guidance year to previous and and we to expected We the expense loss we of guidance are $XX of margin the revenue a updated changes be previous full margin XX%, expense to no to range previous our $XX adjusted gross

Our flow we confident the key challenges, resources to current and strong, our grow period breakeven. our we balance sheet have revenue are through sustain remains and investments to the cash achieve

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

Brad Gray

AGBT strength yourself. quality join product reputation, company's of on invite for as portfolio. Thanks, Tom. in a we're the steadily you their capabilities. where to is product is is and over NanoString it. and power We confident Biology poised to commercial you and solutions research of opportunity Biology in can provider breadth synergy and as Spatial our the and our going our ability technique decade, our such capture reach Biology meeting financial laboratories as out biological Spatial brand next see the critical the Spatial NanoString market unparalleled in remain building us be well at strengths of are June, to based leading the to compelling, portfolio

We’re ready questions, for operator. the


proceed. Please the Daniel now The with question Instructions] first session. will We [Operator question-and-answer Cowen. Brennan begin from comes

Daniel Brennan

first just quarter just at taking trying look the itself. guess question, for would one be the -- guys. to the Thanks Great. I

incident ASP in Maybe an what revenues. if implies wrong. math million below XX us serves around at? pricing you my the it Can GeoMx, tracking you is me, placed somewhere something walk in is that you GeoMXN number If been through quarter we're doing since You did guys the $X.X have on $XXX,XXX. just correct,

Brad Gray

for question. Thanks Dan. the Hey,

difference clarify between GeoMx me Let recognition systems. of the installation and revenue

during sold quarter, the been the quarter. new So we during systems, which XX fourth GeoMx recognized had and revenue installed of many

GeoMx associated smaller orders. a instruments So QX stable in additional recognition QX, relative periods. ASP the on with our number prior to And revenue was for GeoMx was of

Daniel Brennan

Got it.

Thanks, Brad. Okay.

shipments. of to placement up you thought terms But guys in I So equal had okay. for caught

So what's in below -- on you a line the of definitely little your the assumed for nCounter kind QX QX being year, with guide the on above GeoMx on given we're just guide, full us but bit gimbal. overall,

So within pull-through? the $XX you million for what are assuming in $XX to placements million,

Tom Bailey

to don't of a close QX, I quarterly I growth assume the end typically that it say the be also -- you'd on bit of in we We consistent rates a things. give Yeah. And Per QX. comments, top detail that Dan, bottom improvement. kind reasonable with and would range two but both basis, we consumables the relative assumes to see in end think instruments my of would what sequential did

if those range, guidance would for post be you our guidance good So within modeling you're QX use. to

Brad Gray

add Dan. I'll top that, on one of thing

If you historical of tends year. it over the GeoMx, for pull-through look consumable at strengthen course seasonally our the to

closer consumable will second range, of higher in to half. pull-through fair it's the strengthening of for or top assume end bottom the year the to the range near of and be the the end the the course So over that GeoMx

Daniel Brennan

a a force anything to maybe throughout Got realignment know, something call of points was April a folks few would of us little through give and times about So can it Or some it front to related what's speak you're you in that think everything color feel in of sales regarding anything the awareness landscape? May in reflect of then in issues. where incremental really sales funnel I that more the demand and say of on seeing piecing? towards basis? then order the just heightened or what going there working is you Brad, data competitive on is kind terms just suggest is realignment? good I'm talked just kind you about even the communicated Can the the force it. sales is And what about you you that date, to sure that of I kind

Brad Gray

question Yeah. Maybe that break parts, into I'll two Dan.

to and the confidence it's trends changes macro saw for what just strong that are, something under at any call too that First, Well, of or we in And competitive just be competitive our any the the don't are on level. reasons would a not the in we environment see on would environment in there's reason the us don't correlations in that just furthermore, competitive going QX gives that really Those changes the -- the we the see fact, QX. to coincidental. outlined in approach. account traceability for slowdown QX we performance back

periods Our and low threat. our competitive weakness that a CosMx periods, consistent rate loss business, which consistent would across with low not competitive of consistent GeoMx the was our with from prior and rate to was and prior parts transition experienced was all with we be

point. be So may first my that's

question quarter-to-date the good sort are a things On off mean, trends, of of I start. QX to

in and both only in and year described instrument QX. a that's consumable started materially we're moving year I over pace GeoMx at about way remarks, orders quarter quarter. the into the the through five improved prior As both that the period But the and prepared my are weeks

it's too to early victory. So declare

that QX into you are the I commercial we're both time of year reflected still guidance. think going and see to changes full growing that and our take Some in

Daniel Brennan

it. Got

just maybe one, then back And go last the queue. in Okay. I'll

we'll learn terms AGBT. about -- CosMx, I about I in GeoMx from the think as abnormal you're orders the versus the something GeoMx, CosMx talked just Just think seeing that tracking of we there think that's that but of that and not anything again, publications you are seeing drawdowns us reflect two at that and more customers to, from you're products anything you or more terms factoids But giving or could whether these complementary speak about what cannibalistic. would in

Brad Gray

who to nature customers for from complementary quarters our that have see CosMx of include come real the GeoMx of About three have also -- not together orders CosMx I of show CosMx did to comes the and data, were solutions. nature come GeoMx from GeoMx they'll bundle. evidence strongest complementary you going if come scientific in accumulatively a date. from experimentation owned the think presentations technologies used customers the on believe I our of either And three Well, or already GeoMx bought orders and a doing that invite to also oral how would you they CosMx AGBT. and not these All be together. think I'd will two are these to of

You'll also have Genomics to these the customers of dual use plasma Spatial chance at see synergistic two our together. their Summit about talk

think the So are supports who trend come of complementary speak technologies in a to a have to And Orlando, nature. I the two number real scientists finding order to their if complementary you experimentation. chance these you’ll

Daniel Brennan


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


proceed. The question Stifel. Dan from Arias next you. Please Thank comes with

Dan Arias

speaking, just Good you the by mean guys. new spatial once a Thanks roughly what to long-term purchase put now stream? the meant on changes, revenue there just follow-through to of the is for near-term the instead questions. cultivating some force, afternoon, you just role. focusing the that Does the wasn't sales drive in Brad, that the in what order sale? can expand recurring relationships the to And and was some made reps not of context the percentage on maybe then scope

Brad Gray


the take question. me Let second

Dan. First,

So and in effort what the mean. when about imbalance really fourth the the quarter, we sales we here's talk

spending visiting their in and not six due a frequently with but system cycle were months. is of GeoMx cultivating were purchase and time fourth those instruments for due purchase GeoMx were evaluation their customers reps quarter, during the who to during customers they Remember, and were are instruments nine sales XXXX. the between to instrument early who Our sales

contact customers in on take in saw over we the what and with reps period underinvest quarter, back focus in in that and current if haunt future to they'll length. the that them, come are sales is only cultivation quarters Our they who place quarter. that And to the will fourth instruments purchases purchasing need customers of instrument long-term continuously be those

because majority question the On roles, had of answer sales sales of reps think have change. I the and of the is roles reps fraction the the our new that

list has title from customer, And Now them mean to doesn't the sales materially, necessarily reason we're structure customer but same that individual mean evolved. what they're it an their where asking is overall mean reps multiple changed doesn't changed. it with now do interacted necessarily does we It in better sales us management to interacting the individual a a interact coordinated allows way life moved with the structure way sales that simpler and account account to in our a with or same makes a customer the reps way one reps customer where that coordinates that mini-team service. a customer's single manager deliver

time So of is impacted some grow work. to that almost going the to everybody in they terms way into. part take of it And that's what

Dan Arias


place to just an Do bunch the Okay. not say, can to here's ability a mid-fall that out here period, competitive Helpful. strength would on X-week the there one a holidays? of you like there Maybe just meaningfully that of quarter. at, installing but trying fourth I to Hey, you as that the split belief you system a are the am And just that instruments wondering before or the availability pretty look as in take more year-end. can new the be follow-up, not CosMx you until were but sense and full about commercialization clear use I'm using last being hairs quarter see about

Brad Gray

that instrument are presented but don't to fashion. believe we do will in for shipment be evaluating factor. determine how have who actually critical description shipping we'll I real an the in. on the availability and will company in of It's imager, behind meetings meter I data availability, the customers instruments believe the system fourth technology reputation those of works we like confident available is based us competitive being quarter too quarter orderly of fourth at publicly a feel imager those the what and new datasets the the time early out that I and that's stands the class parse systems in the AGBT.

a competitive large ship quarter number the So compelled I'm in to not of worried a about fourth feeling basis. on instruments

Dan Arias


lastly, the year to CosMx Tom, back change any falling really -- into not note. the half revenues Just of that no on

Tom Bailey

That's we've That's changes our Dan. guidance. No in correct, in XXXX correct. No CosMx had. revenue

Dan Arias

thanks. Okay. good, Very


Thank you. Qin The proceed. next question from comes Please with Julia JPMorgan.

Julia Qin

Hi, our taking for good afternoon. Thanks question.

full guide much the you're the recapture benefit at of not assuming instrument GeoMx looking half second the it the So in like year, looks from year. for

if represent the any would an GeoMx lost wonder And to in any Has you on upside incremental year second them the update competitive being order So guidance? half recapture I your could funnel. or of the give of placements.

Brad Gray

Julia, this is Brad.

do So increase of periods. look We GeoMx. we if growth in rate with in half, and first, imply revenue a take the the competitive low is -- when previous second number guidance, rate But step-up not our guidance rate guide. half half growth I to an believe you respectively. first our GeoMx do full our QX second actually consistent and guidance the year range, I and on relatively in see GeoMx at loss in our at substantial The of can the XX% it you by implied top and the the growth is ups XX% in bottom think flat infer as that between end we steps

fits our underway on impact is that commercial actions a guidance. of that we So have will expecting quarters, after have our and are we couple execution these an into

Julia Qin

whip customers potential AGBT GeoMx wonder, the tweaks Got to typically Do tier beyond your next differences the due it. review peer And as marketing you seen publications nine require and six months of the GeoMx like those push bull I you've generating any from in cycle the sales customers? adopters, that in expected effect. with previous obviously, any at early expect you approach. sales

Brad Gray

the with tweak GeoMx. reach mass market we approach I do to that our think sales need to

I be able of a think Obviously, that don't to number large -- reach any requires changes. sales we've I structural believe reps added to them.

review the I illustrate versus can to thing we each that improve the segment that researchers. use the number help individual think to early use number one including we that do where GeoMx to imager peer appeal the and the fits is understand class, use large way this cases we CosMx of papers to cases way that specific GeoMx maybe of relative majority communicate

focus second platforms organization papers will and an weaponization our Biology uses Spatial the impact is their describe that for we over peer-review and of way relative our I'll increasing the believe the this major a of simplification what of this half I today call have So marketing year. the

Julia Qin

in and the believe team, lastly, some cost Very you reps are sales remarks it. helpful. And mentioned dedicated to prepared on GeoMx the then that Got mix. I focus on others

And road? Given now. are franchise where most assume of that CosMx the thinking does their need mean potential down transition I to life CosMx? about the you on grows, the are team products shift But the in you is to reps sales GeoMx focused as how will GeoMx the cycles, over respective

Brad Gray

me my not remarks, GeoMx Let to earlier clarify Julia. dedicate do reps separately versus CosMx. We sales

able to have of what portfolio sales that spatial the spatial to specialists favorite. entirety We is describe observed we who have reps tend our are sales a But biology. for have

our what of training CosMx successfully and And systems. excitement and coaching Some some it's selling activity to sales of comfortable of appropriate they've and our balance our Other most doing reps most is each them the the sales the targeting customers feel of appropriate. GeoMx been which have through of selling find part doing of to -- for both systems, our monitoring time. balance we're CRM which for the reps sales a our one with gravitated applications those force helping the system instruments

Julia Qin

helpful. you. Got Thank it. That’s


Kyle next with Please proceed. Canaccord. The comes from question you. Mikson Thank

Kyle Mikson

the Hey, questions. for Great. Thanks guys. taking

two second Could kind So what realignment. of XX% growth? a second factors just walk growth? XX% growth it's mentioned mean, I you to year-over-year year, the can walk you sales I to like There's the of you GeoMx. just guidance, off total the year. you year going half kind were guidance XX. in through for it's in on the that competitive, saying thirds the Can that I half. kind Last coming the confidence implies, what that the you you think just you GeoMx moment be other ago, second of you're drive through of was just in gives confidence to obviously, force gives like half of Brad, think that revenue

Brad Gray


think split, second implied half, you the first if updated the at I guidance. in look half our

about COVID-XX first you And at half, if back was to pandemic, get in revenue and about of close total second pretty half XX% slow in first You acceleration year half. seen a where we had That's in the with XXXX, year the to of would that. second similarly look the that a split XXXX. we a same start an the the have second because the which XX% half in to split half

that's will So the I second in experienced a the in in first statement. challenges half where leave I half. you precedent without think guess the not it's that year first

can are that papers is a believe many good the this out, the that how Spatial platform, us The half. need capabilities recovery imager Biology so a in as second tremendously we'll be to remains evidence We of continue a customers already coming rapid at the for many to and it feel to both class from powerful out be, pace. will will confidence of have that second distinguish that's coming that peer-reviewed powerful ours that eventually And able they very GeoMx do and GeoMx products allow a have.

Kyle Mikson

the you And that's heard year to would towards complex, And you would I shift that's going doesn't see workflow guidance it view kind helpful. the full of That's conservative, and from new you to normal in but original Can the 'XX? the a I through off like pull-through price due this you obviously to importantly, as that WTA, customers I pull-through that far as WTA? Brad, were guidance seem think trend that expect the GeoMx point be the time Great. is for -- more dynamic. one lower more I GeoMx think that do that guess? is just you higher walk mentioning,

Brad Gray


again, Let prepared me clarify my on remarks Kyle.

pull-through, is expect customers GeoMx goes to adopting up that system. long-term, observed strong revenue Illumina laboratory to data to that periods the setting Transcriptome be a the consumable we've who average processing large on effect embracing from reach we've GeoMx slowly being sets. to in that's WTA we creating -- result, a overall to data expectations cases, over None we're WTA and a large And time. That dilutive instruments, begun space an It placing extra complicated. as gaining pull-through those to long-term customers to their see And sequencer, take using customers pipeline then effect. and our and reflect in Atlas our draw what the pull-through store up said, handle up of the appropriate are or going access are base. WTA involves the setting changes capability in see for their the with dilutes The to servers the to who of that pull-through multiple quarters run-rate. takes run consumable Whole of new many the to GeoMx. sequencer that our about And assay back auxiliary into numbers quarters where is can continue But quantify this reason guidance. So we're have in that multiple installed it that

Kyle Mikson

it. Got

that base? RNA-based pull-through installed spatial you evolve I do Okay. in just readout. you And policy clarification. really heard If I you the year? a GeoMx. soft the Thank was how rest you kind recent research? of guess of could for GeoMx trends ask are for just and of what know the NGS And QX I throughout current for talk that I kind the anticipate for seeing was quick of about protein-based follow-up. Can in utilization XX%

Brad Gray


RNA. it's about with protein do assays. part in important it protein, who our account would Our an those of system. to remain overall adopters the the of were I quarters two acquired at it biology come of to our readout pull-through. protein-based overall early of still And for for on that of expect XX% Most stay on GeoMx total use people estimation spatial stay about and level one nCounter based the consumable And third will that is addressable our the as thirds customers market for what

Kyle Mikson

so Okay. much. Thanks


Thank Catherine next question with Please Baird. comes The you. Schulte proceed. from

Catherine Schulte

instrument perhaps performance the Thanks you strongest guess result weakest the I GeoMx with you've prepared mentioned further in for now that guys. the driven was question. I mix your QX for remarks the much the had to regions underperforming dive of Hey, into QX instruments, versus performance. results, those guess sales the the broader first, that time January by how of was realignment? a that regions impact GeoMx delivered

Brad Gray

great regions have really ability to relative opportunities a the I'd long-term Catherine. explanation we and fail fully close QX of opportunities organization in cultivate on It weakness only capture underperformance question, the that the our Clearly, in the there. of those for on does to our explain not expectations. reduced commercial to that It's part the was say our shortfall change further that the GeoMx.

Catherine Schulte

taking, terms talk programs activation. you you mentioned Okay. those you're And it. GeoMx to and and are in site incentives incentives programs what Got actions the Can specific of specifically? speed through

Brad Gray

terms get Transcriptome GeoMx Sure. of to are place have able who incentives, Well, new assays on in special and we pricing in Whole running get sites up for and early. activated

team up a the coordinate build momentum. the closely more in of customer. pricing those first sites of from can shipment we of efforts who terms quickly of them their a of So them instrument, helping make training the of the workflow In to importantly, and we're planning on effective, get the the motivation offer to place instrument kind and providing get users help people informatics tighter we are up more all way their in bring the formed installation set to to their internal the and quickly and parallel, managerial the experiments instrument the on the critical the system experience to people of

Catherine Schulte

it. Got Thank you.


The comes Tejas Morgan next question you. Savant Thank from Stanley. proceed. with Please

Tejas Savant

guys. evening. Hey, Good

versus now vintage sort in year? between like of balance quantitative quarter. But think restored towards you first last the To right? appreciate about was So share color the on in to GeoMx Brad, the of It that order wondering being there's opportunities any longer-term sounds that terms opportunities? funnel. earlier if provided of So XQ in perhaps heavily the split was I where you funnel, the has you extent the it's longer-term metrics that all that opportunities if the near-term like what it skewed can

Brad Gray

would cycle? say instead I Where I cycle It’s world process. sales of purchase think though, look sales sales you're for One the opportunities a for to real their we those maturity call for mature what to continues our thinking reflected customers overall immaturity taken our to there have of evidence exiting cycle a And wanted cycle to of that Tejas, those sales asking, through about recently morning get. so I’ve [indiscernible] are GeoMx in customers sales as this those comment on And in as just that quarter-to-date. persist the at would not of we is some it the our advance in took no in extending. XXXX. continuing to continues that sales instruments that sort we’re be XXXX for be other we our the try had sales funnel funnel. funnel is in guidance,

team long-term just it’s and purchase balance of question between So play really as those hitting processes in opportunities our through sales a and cultivating current they letting cultivate a opportunities do.

Tejas Savant

track details remember and helping That’s to get terms it. process? any of on helpful. in reps things around month sure handovers processes on that And to Any these track. stay stay you on? accounts. making for I sort you preannouncement of plan there they of the new through one and just one, that help elaborate mentioned specific new formalized Got like day instituted sort Are then us, you’ve on ramp week one, them and changes can after that target a further

Brad Gray


work timely hard obviously is that stay have happens top it fashion. sure it’s rocket not it But on and of in think make I science, Tejas. to someone a

accounts revised they up approach of embodied all for speed. completed will kind used and over that factors. planning reps consumable starting our help help the to We we to the next that several sales ways improve will actively Those that’s know get being It on believe been onboarding that’s come sales come processes tool. and new our who have a And and of to point. have today. reps overall their territory Again, reps a their sort at them

Tejas Savant

of that Brad, call the three monitoring to on is earlier what in mentioned then terms you all make sure across Got training just balanced and around of focus there reps it. And a monitoring it putting of training. places of push a into around behavior? in Or any that optimize translating well your you’re for new is to Is sort and mainly that platforms. incentives just

Brad Gray


a Our sales on quarterly paid basis. reps are

over performance reps to and stay long-term. should opportunities track on So compensation said, for underinvest and being help overinvest them the over management need plans horizons. coaching long-term reward many their controlling term incentive near time in a and and them in That balanced not

them really primary mechanism So instruments to find And how time achieving the manager funnel. both coaching. stages with individual the their reps different the and they that opportunities balance then helping for spending are clear active just and their on of right visibility providing they’re how and balance at by

Tejas Savant

off broader in the some from shaved for essentially to the the related a so biopharma assumptions Super it. just there but just Tom. biopharma. been There one one you’ve a Not a that the the incremental the year. any Omicron or final $X spending of restructuring much Was concerns be as you for landscape. then on all around then Got has that guide. just the cracks around million mirror nCounter flush, Tom, well. things sales was guide the helpful. can of in on And elaborate health half environment side downside of budget around back in And that on there of some

Tom Bailey

issues piece, nCounter Tejas, to I all think the execution it’s our guide. the related On on

And so, nCounter there any macro guidance. is no into we incremental the factors from that impact assumed

Tejas Savant

the biopharma And point? Got on it.

Tom Bailey

biopharma of yes Part the point.

total revenues. our So or XX% biopharma is, of little in a any given quarter, around over

and the small by large So most pharma capital most that of of and biopharma our current markets other outside revenue kind environment. impacted used a from are is academic

year. don't think into the factor for where we'll plays we So land that significant a

not flush into we year gave as type is you guide there of pattern our any factored layered either that's guidance back for March. the quarterly that's guidance, into nor budget so behavior the And recall, in when our

point the a at for We saw XXXX, than expect to quarterly be expected. progression albeit consistent we originally in we starting as through year lower this

Tejas Savant

Very it. the Thanks. helpful. Got Appreciate guys. color,


And for back session. like Q&A the would to the remarks. additional concludes to That pass you. Farrell Doug I conference Thank

Doug Farrell

us joining for everyone, Thanks, today.

U.S., is to through concludes next access Thanks up time. That replay of conference the XXX-XXX-XXXX. the please replay, miss hours for dial outside in did be To please or The call. again posted you a portion will any call, our two Callers so. I XXXXXX. XXX-XXX-XXXX. That ID XX. be expect If the your the use May


quarter Good results concludes 'XX conference participation. bye. today's That you first NanoString operating Thank for your call.

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