Heska Corp. (HSKA) 9 Aug 192019 Q2 Earnings call transcript

Good day, and welcome to the Heska Corporation Second Quarter 2019 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jon Aagaard. Please go ahead, sir.

Thank you, and good morning, everyone. earnings the Corporation's XXXX. quarter Heska to call second for of Welcome Jon Relations Investor Director Heska. I’m of for Aagaard, Prior to of remind future company. you may discussing like certain events that I'd Heska's make performance during second or quarter future the of statements course forward-looking this financial we XXXX call, regarding results, the to may and to need our any unknown beliefs to expectations and that and current expressed different known risks statements from and results forward-looking those or We such you cause uncertainties, materially be implied which and performance forward-looking caution on are actual involve that based statements. by that including such differences this Factors filings Corporation's are places, release contribute earnings quarterly in Heska and writing cause could morning's annual or SEC. detailed the to and in with only made, after as such they to and speak made. not intend update time the reflect and occur the to disclaims statements does events statements any or are specifically of that any time forward-looking obligation intention was Heska Any statement forward-looking

us will this Operating Officer Heska's Chief Ms. Jason to and surrounding Chief Heska's have the Catherine provide Chief Napolitano, will Financial Strategist. call we Officer; results We Mr. Heska's I President; and morning then Grassman and Wilson, Grassman, with open details Officer the and Executive Wilson, and questions. reported, Kevin

then, this At and time call Kevin turn Kevin? the President. over pleasure to to it is my CEO Wilson, Heska's

everybody. it's very topsy a to know turvy there I good busy. is morning and out Thanks, everybody Jon, and market

that, that will to in. spend want jump for So I With the interest thank you we you spending your on Heska. in time right

nice a quarter. solid reporting We’re

on first fourth quarter well. that outlook with quarter that the call remains of we on quarter as and second The line presented the in XXXX the call, reiterated we

and geographic nearly the the key on for initiatives met or And areas. expansion operationally, are in exceeded all business goals our Our product second quarter track. development

subscription in the showed quarter trajectory in lab where and first period rose established we and nice that subscription, months over retentions line confirmed and under healthy a for companion where are animal diagnostics, outlook. our contract active consumables the subscriptions, strong lab well with the we very full-year core first value progressing Particularly, XX.X% prior quarter subscription second

Our half and importantly than value. over utilization contracts of higher Margins the most and subscription to retention. the sales drive first campaigns continues good, to new perhaps full renewals contract capture, are our placements, term continue X-year traditional be

line quarter, very And nice, competitive as bottom So continues health market overall veterinary within well continue be healthy. space. execute robust to is good but knows, to everybody in marketplace, and that very a the care we

He's with call I So turn the shortly. comments I will going and with that, to you some be over related will Thanks. back the Jon. to to make release,

has good and we the Kevin, you and through to to to in in it go here presented join marketplace. to wanted a us We information everyone chosen morning. thank morning, starting this lot position strategy you, and again the of with a Heska's this release take Thank who just quickly, moment

that providers. the diagnostics veterinarians of POC occupy providers care. like relied pets, to veterinarians to upon unique drive a other category pets voice can't that modern critical Because about health real and built lab speak full has point-of-care portfolio diagnostics imaging POC Heska are their of challenges, to act and their care by than families and and the position the veterinarian Heska as much are is diagnostics closer patients. a

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and first timelines closely XXXX, and and half time expansion have have Expected of given. the continued development of expansion, Heska's again, key begun each objectives. and launches products geographic of upcoming to announced with track In the product advanced geographic these markets lines products international

and Heska's Early of to these thousands current gas utilization and platforms, Heska platform on users positive amongst as of launches first to continues immunoassay, satisfaction analyzers, and new expansion, is the evident. existing Heska's remains additions respectively. half and current feedback introduce tests Regarding BUN eWrap chemistry blood such each Progesterone, for increasing

We’re attracting the new way. also customers along

was In Immunoassay the on applications. to addition platform in Among with this of limited year. market expansions line sites multiplexing i+ Heska's Heska veterinary to products analyzers, quarter. entirely the global be health market, platforms to Element third the XXXX, hit to is i+ schedule introduced animal release on select of for and already June continuing for in in next-generation full June new starting Element new release those

superior POC and Element design, expansive Heska important first Heska's exclusive full assay the i+ within analyzer position POC for immunoassay diagnostic leapfrogs only global several testing platform and to Heska's test leading new low-cost advantages. current being cards, roadmap suite. Those analyzer multiplexing with profile,

the Show rotor-based enthusiasm Heska and shipments XXXX, the Heska's is core And Heska's met targeted certainly but efforts was in platform. the end-user Trade to the Next, believe last, Heska's in with expected in was following introduced not and expansion new to in France third Element as is portfolio. Element international fecal we for strong European the on urine directly Vet chemistry solution international least, RC Element of RC quarter. the Element calendar chemistry it international platform. June RC at UF analyzer advance closely Paris, is and the market

beta continued in revenues expected half on-target soon thereafter. of half the targeted by to first yield on-schedule made invention results. this instrument Significant alpha milestones been for second and has investments the of commercial development and and followed release progress Research and XXXX, XXXX toward

to Element that veterinarians Heska the problems be in and exciting and and locations. a for across for in patients A launch veterinarians Greenfield current potential UF expected first-mover many impact invention important successful major thousands has from solves hospitals globe. subscriber Element thousands big of and is UF Heska's of competitive

current While risks achievable. market around feasibility UF, precise UF in inherent timelines, and initiatives Element timing remain and are always costs like opportunity Element

now international POC France Lab Turning than towards and products early anticipated. broader endoscopy was pointing indications into for of and expansion Heska's integration Optomed progressing launching The North with America scale what markets acquisition Diagnostics European developing Heska well, well. long-term Optomed opportunity of and front, preparations the XXXX is originally in France are geographic greater to small, in

into talent Heska's France continue in investment direction Show key and Trade to as New well our as perceived hires Vet affirm France reception positive the France. at

won the several the in in a On Australia. and integrated, globe, new away successfully other competitive that commercial the for is other also in now early of expansionary milestone the roadmap competition from been has closing, side Lab detailed is subscription Diagnostics, a Australia Heska systems representing with Operational and team running up prowess accounts have shown major POC and targets. Heska's

there, subscription to to winning turn conviction lot quarter. to customers over continue models. details of retaining covered information will the Diagnostics go strengthen the POC I a Australian Catherine? for technologies and Having with call over of Lab Heska's now results and the Catherine Early Heska

everyone. Thanks, Jon, good morning, and

from previously lower We our mentioned, consolidated $XX.X of heartworm are which to pleased full-year the communicated expected net decrease to lab in was resulted with strong revenue second product growth quarter million the Offsetting report preventative, performance as contract of XXXX. was line which to second manufactured in for compared in revenue X.X% consumable line quarter point-of-care Kevin a as strong of a our XXXX, outlook.

line second increase heartworm lower was pharmaceuticals sales the of of Revenue the Offsetting the in of XXXX $XX.X quarter is which or in from expected Merck. from of XX% XX.X% million quarter a consumables manufactured decrease revenue second point-of-care XX%. animal for XXXX. $XX.X this second and companion quarter over to our quarter a in Tri-Heart, full-year was specifically, compared XXXX, segment laboratory the XXXX, for X.X% million of to outlook of XX.X%, in preventative grew Revenue CCA core vaccines second with of

our compared compared quarter of to as from to segment or XX.X% Consolidated and of the the pharmaceuticals, XXXX. in XXXX second of OVP, increased as quarter Vaccines million the second gross of Revenue second XXXX. was in other $X.X XX.X% XX% to second quarter quarter the in margin XXXX

second to XXXX, revenue. to product XXXX, to grew of as XX.X% the to in quarter gross XXXX, OVP the basis resulting points XX the quarter of XXX in quarter margin second CCA points the of basis second margin as to X.X% grew the increase favorable of segment our XXXX from second In compared consumable compared segment due in mix. quarter

and a to product to operating $XXX,XXX development in quarter of income primarily loss approximately to to research is XXXX. expenses in due Operating operating decrease as initiatives, from $X.X income of and due partially and international XXXX increases in the the of and of latter mostly fees operations. increase lower an and expanded half These general domestic marketing quarter. $XXX,XXX administrative offset in lower $XXX,XXX were million decreased resulting XXX.X% increase increased compared of the due to by of an related selling consulting expanded to in headcount The new second expenses,

$X.X $X.X compensation million for $X.X quarter Stock-based quarter the XXXX second quarter million was Depreciation to compared $X.X to for in and of second quarter for the XXXX. the second was of XXXX. compared of million XXXX the second of amortization million

tax of for XX.X% quarter rate for of a a The second income second of XXXX company's tax rate rate quarter XXXX. compared benefit the with of effective to the XX.X% tax

with XXXX tax approximately stock activity. $XXX,XXX, of and include benefits associated and respectively, of quarters second $XXX,XXX discrete compensation XXXX The

to second the of a second income quarter of million to approximately attributable in or loss or per loss diluted of diluted share share quarter XXXX XXXX. Net was of $XXX,XXX $X.XX Corporation $X.X per the compared Heska $X.XX for

XX, approximately June $XX.X of December Corporation As million million had to XXXX, in cash as of XX, $XX Heska XXXX. compared

settlement for of operations million to cash for a as by was a first of first the $X.X Cash largely compared of of the operations half $X.X flow $X.X use of XXXX, from provided to due million half million XXXX. litigation payment

our Pertaining to beyond outlook XXXX.

of currently updating our and Day, data May As to appointment Officer, initiatives role we’re Financial new updates. incorporate XXXX the XX, previously, to outlook multiyear indicated Chief my Investor with

at of our arrive have their from acceleration the in UF's XXXX to aware compared are full-year markets contemplated These fourth development less the we updated share current as the incorporate and from and updates impacts own the investors on unified projections updates included announced quarter believe which design. our -- focus May the to from of models, a our updates these currently earnings May sorry, platform outlook, details announced largely optimal release. X effects schedules from we into plan and and will Element While roadmap, as fecal UF urine separate product already advanced XXXX to Element more such and XXXX during

include effects impacts XXXX, of analysts Optomed, and such will items, preventative we surrounding following as a Tri-Heart heartworm already development, largely investors and in which was go-forward of from announced changes we modeled. unknown business Additionally, again, have basis; May the acquisition of believe other which impacts our Heska on

results Finally, include effects of beyond. XXXX, the second will and XXXX planned and our activities which we will of half impact the XXXX for our actual

that, the back questions. call before Kevin? With will the for we to call turn I Kevin open-up

transformative Thanks, Catherine. history. the most be to up shaping our in XXXX is period

doing operationally. good. is are job a Subscriber good growth We

we're track hitting and for our outlook on on that is we're we core doing the we stay strategy our second while is. targets, think I that. focused But think what half

innovations. internationally and double, developing we're potential to some customers triple launching At major we cases, possibly and best-in-class same the the first-to-market in driving serve. are and time, We that

growth, capital we our our We to and are capabilities. are deploying accelerate scaling

aim They If funded. innovations these are they successful well, scale. that multiplier market. we with execute well, us. They We to things and reached They for we decades. be the can of big can face but very scaled be health the this effect, customers also do encourage competitors. that we think the and create validate They well validate

So pursuing. that's we're what

that will do a benefit So in pet and owners. we think shareholders, meaningfully, win pets, and can way we can think veterinarians we that we

like would for call I open-up to that, will go to With the your questions, and the operator. we

with you. Instructions] Canaccord Thank Massaro [Operator will to Genuity. We go Mark first

later Maybe costs XXXX the this Can maybe pipeline? of the Are Catherine. call? an moving providing opposed dynamics outlook there update development timing on potentially as any for to some to either year or why related are provide you you, updated to you this as of of

Not on so pipeline. the much costs the

sure of at I this pretty we mentioned, moving a projection new confident I are want think a this parts. to our thoughtfully. launches, want and believe, make that fairly have. those period geographically. do take to to holistic us, pertaining point. feel that we more expansion time in Like we to picture give lot we It's Those lockdown, pre-transformative currently the a are -- is we for Kevin product

point. fair ahead. a go That's Yes,

major think I four or timing I three that think, this launches, our we product morning. reiterate for the different to try ways

think a by already. that's on And to lot largely of are as analysts I such would things comment is, as Catherine's second I So modeled thing well. yourself the track add these

but market I So huge if think we think if annual normally were the of, modeled. course kind digested, hadn't May XXXX our been forward, maybe don't we update would know ordinary it's date. a outlook of annual push there update that our outside, to at massive there's And We'd urgency largely that that of the business. moves number

you. that but Can Thank give has for you lower pressure type reasons hope? maybe declines demand do for some time product been I ask you sense some under the in for, anticipate out Tri-Heart hate to give recovery why non-core just that to us of about just than sense the is the for long likely years? us maybe the some the of stuff, or how now. it. you is continue And product for a a can Got you would

Yes.

wrong pressure an I year, sales probably is Merck. situation characterization. the zero overstocking at largely, due basically will under get from think this Tri-Heart We new to

and we they think quantities purchase at kind product that will period, the X-ish manufacturer. volumes dates refresh, they receive and I Merck overstocked a we us year contract from a I So the over that And manufacture are the ask of the a We to. product. orders management had

want plus its very down we've this sales so I year. update said, we to the the it's in anything were of took basically but inventory think, that 'XX and like a will part beginning the shelf, last that at what what really sitting worth in hey, end to of number this return And basically And year's got on we order year, model do do? of year, of to we don't approached zero. look so year, And want to XXXX, think, then Catherine you 'XX, mentioned, zero we this and will

it's I we hard call floor. So can pretty the -- think

what's the veterinary a for demand with information Yes. the This I’ve people hair for is Jason, on the going some spent for into Mark. clinics, up their Merck year-to-date and is I time recently end-user latest is that product, side.

on about are seeing that So mentioned, that Kevin much, we inventory not situation are the concerned through the financials. customer demand, side you it's going our in what’s as so flow

And you just will sheet mind. it. I if question, ask then a maybe don't Got balance

of You of ahead certainly R&D a lot have you.

loss the quarter. You just operating for posted an

of seem thinking Your some cash bit a strategic your million. you increasing given slightly your little now towards financing of own balance $XX is growth How below shift are initiatives, there that development? does be about internally a to

it access monitor that capital put with JPMorgan. we to We’ve And we’ve in goals. place meet say, we going a just to our we think Yes, closely. line to I’m credit

number us spends. project And We are known through think, a are clear that development the on these cycle. at larger lead are of the point times of balance those spends, largely projects the the pretty I milestones this in to

So I it. handle think a got we've on

Look guys. forward Thanks later to -- this tomorrow week. seeing you Excellent.

Thanks. Sure.

Andrew James. from question take will next Cooper we our And with Raymond

with for kind guys. of guess, gross the Hi, questions. first, Thanks I start margin.

think in I with we this to about, unchanged to that the looking at especially of then a relative roughly gross and starting still the how make I -- some that, I revenue little want for i+ that the year, least with sort it margin to roll it terms aspect in of below of guide? for are what bit a and well. should year rest little the especially kind know of you think we sticking XX% just sure is margin? is bucket the And OVP was timing the it in as of of bit were for. of

Yes.

call, not at our i, think, both to We even on margin. guide I are all. this during QX full-year gross our changing margin incremental we revenue said consolidated Element and year,

guide the is So full-year intact.

any you. how on even give terms were accounts -- would the on in And the I qualitative Thank could of helpful? you said that’s then, progressed track, provide update and could installs on but anything Okay. you corporate just you relative expectations to know be

the I think for corporate doing broadly, accounts is us bucket well. very

we and pretty more our are for job converting in are chemistry. progress very They’re with done the doing are are Some we over we a a that group, products But that. than they’re almost users, others. believe think DCXx as tickled exclusively. all large hospital particular, I accounts; those Ethos, to seeing fantastic our well I in it's with happy on

So mean, yes, well. I the doing is category broadly,

and will in Okay. maybe any imaging, of just know timing That’s it less some I terms did. least again, before the as disruption norm or things Is as would more anything with some or updates maybe quarter on the we a if just there outside I degree, But with or missed imaging kind out there's product stick and of there's FX, on in offline, changes helpful. we follow-up had well, but kind kind because bit call any in else to I we one track of Optomed, but any The that of And was of at Any there? you else. thought. Street internal some views anything models anything than little -- in I think think terms

to imaging, the target -- were projections. for were quarter relates in on our with -- it as we We internal

Okay.

got a have naughty on I don’t think the team no quarter. anybody whole the for

would much pretty we where was hoped everybody be. think they right I

in pretty much So yes, line. getting I think

Thanks. appreciate Great. the I question.

Andrew. Thanks,

Haynor with Partners. from Global We will Ben take now Alliance a question

seems quarter the It for questions. morning, here. and i+ there nice Also out guys. a Thanks pretty Good and like schedule. taking RC see update to straightforward on the

guys both the to portion manufacturing any of on regard you surprises there that the with known yourselves it, that thus Just are and you've far? seen consumable hiccups any i+, instrument or

No.

to analyzer. So manufacturing won't clarify, we the be

of not test tooling facility. original we we up our with is that to initially, transition and do Des are run we like test partner molds initial product So cards of things will licensure until utilize the who injection cards Moines The the that. our to the

and And those launch line that good to think But or on So a Des we'll risk migrate there's really a we will manufacturing then regards execution in is in currently, terms that. over we things, to plan. of product types the of we've handle really in capability. and establish to that got disruption risk production no Moines

Okay. might of a migrate then that terms have you of do time And when a kind in line over?

to the per think test by is of i. $X up The It's million that what more But still sometime much cost manufacturing our looking Element at test to favorable XXXX. this -- is really spend set we I to context, into is are than capital it in lower effect production $X just card million cost maybe put solution offset current our line. card. per in profile cost current Yes,

we think I then. capture to go So, now, need that but a see half of next probably we second year, as capturing what are I live

of the the they’ve there it's strategy stuff the how help helpful. that And developed. with any down you then program that -- some the preventative particularly, enough. to competitors sounds emphasis you've like that larger there the Element Fair care would I i+ And -- similar Any past, or Okay. commentary I be in putting know thoughts line? some menu. with preventative talked your care on making think might on about the on emphasis it is one

care. past. past has in utilization in I done reference we’ve the the mean, wellness -- of in is agreed especially think applaud has them I look, Antech efforts. lab, I with IDEXX done in them those preventative Zoetis and Yes. diagnostics all in and general probably predictive underutilized, terms that

benefits large market. the to educating of So We that. think the that. I when death I'm competitors we see see And tickled support I

to cheer well. will hope get care, what down we on along and message we with charge as field and preventative them out they do So the we the can

for guys. great. taking Okay, Thanks the questions,

Thanks, Ben.

take question will Securities. We Westenberg David a now with from Guggenheim

Good guys. the Hey, morning thanks and question. for taking

of little a of a continuation there's So question. Andrew's bit

already go-forward of particular Is with to growing terms basis? consumables did expect in kind [indiscernible] Thanks. expectations on be I just on to more a and And a same? quarter the bucket you basis? the that think maybe placements, instruments instrument the give of if it relative bit in instrument hit of So revenue go-forward kind we of I projections. this that Should are on little and said that along mean, kind you on a color your

revenue, -- asserted with Yes, it I that's pertains to think as on capital lease treatment. instrument under We’ve to as par far be last as that year.

if these of you flat, will. were So all

on target So when full-year, year-to-date for basis are we for we on say target are on we that. a

I Yes. have I that. basis, platforms don't they add And up steam. you just on on that new And XXXX -- are to fecal and as of new pick up steam. see year-over-year pull-through models meaningfully will comps Until picking a urine really will Element in in to until color don't those RC national little early hit, terms you start think get those basically

the revenue on share say If which the gainer been consumable a XX.X%. really it a to year, the gainer X% year-over-year is grow in isn't And market be model and going design. to is we've to was current the pull-through, to X% last be we market same we're going year, incremental the The show is Our recognition in to be one portion designed growth. by going instrument growing. what's quarter, share going

in guided I fantastic this share the share that to years. anything if from market gainer X% go market last and year gain solid, consumables X.X% X never market the are is is that competitors we see what X% that, share where above So grow very to strong gainer. is We effect. think we've get ever think against layered the we've But said cake really guided you and don't would X.X% we've

it. Got

Okay.

to said with to I So you launch, did fascinating. to going play fairly bit little it the at it's going get I a platform, found but AVMA, think it Optomed back

know I is it So actually out there.

feedback talk you of generally, of about that maybe gotten look what size you maybe can that help can And just you've So so that like? could reps from us the market, far? some

huge. don't like ultrasound strikes going It million-ish take I is that size more the time. me market an It be market. million Yes, think that's can of to but the in $X range,

I on think hit thing in the vocabulary important part that. new the diagnostic. out trying the comments, nail speak industry, think most And are every of we’ve build John's the we Pets vocabulary Endoscopy don't a that head. to the we of is, bar largest launch pets and time we is we the none. expand

bring has that in to your if So you with and infections, severe and the and ears ear, that pet ability communicate you that and look is. and in loses see can't issue ear pet you mites dirty that can't it how in your what's terribly pet really

a is add. endoscopy think we So value

million the say, to But look, and Daily can to cardiology, a it customers. shattering, customers what's build out, fecal, we broadly, believe We is liver, is of a those you it be vocabulary to think for ultrasound piece name. customers. called part that issue our and Scope, urine, important able that so thus is, issues, customers, And be to immunoassay, it's is go to if issues used blood imaging even $X have, x-ray infectious might our with hematology, revenue good then, for a is stream, we because offer have disease, coagulation, a, and gas, our important model chemistry, that's we be if that but daily, our think important of which earth isn't kidneys, electrolyte, endoscopy vocabulary

mean, it. you then a this All has that And play -- due with competitive potential of lab sticking been imaging traditionally and meaningful. shifts building now. sort fecal seeing both maybe the would it's is attack market launch I with there's going any but maybe preference big inside -- is Yes. Fecal concept. market Are kind to or that looks just today. to Yes. interested like IDEXX effort obviously, your a inside maybe platform towards And in IDEXX. platform broader concept to an lab lab the be a with you the enough effort, changes it's I inside maybe the way for the marketing reference that the of Got potential Yes, in in, right. big

intact. David, lab I remains been industry, the for firmly I've reference underlying think. the our central have long done Fecals at premise as I in think as been

fecal going a and I you’ve be be, new concept. stain of to to or especially, getting think dog you need and And not treatment you don't if factors bring two that's medication, is, I don't and compliance. whatever waiting So in drive the then whether probably be a cat need any that day and entry immediately, that friction carpet fairly diet, barrier is a on the think case might that answer your a or change. your if probably the recommendation, a answer you to whether those feels urgent you, to make

a to reference point-of-care, anything reference to choose fecal us more, whether choose testing central favorable antigen in a that minutes. to I answer my lab at get will do again, awareness owners, pet veterinarian So and veterinarians you XX to you think raises an fecal test works, the I a they continue reviews of may get like for or of testing sent to the get exams, odds, done We then I’m by couple and reference send manually the lab maybe lab. without to it think, and it the of factors, automation. many as that's fecal when out they point-of-care or and

pushes that All think we which the if results betting fully improve to automate of say, and favorable we them. so we is against And not point-of-care, is that process to to it more the that I'm process, probably us.

it's think great. I

I think premise. all, awareness, raises it, I our but undermines think don't it at

it. Got

maybe last into then And placements Okay. outside the one in of of terms hospital. just corporates actually individual

with You you expectations? thinking products in new that's do of any replacements one. to kind did mean, or non-corporate the are the gain vet you of practice. potential corporate? opportunities I how Do believe relative outside individual -- corporate maybe And that your about you. to last vet how there's Thank

appreciate. We

give products New competitive entry accounts. into always you

confident are And so we doesn't a in market reasonably of are product. urine meaningful us that the -- hopeful. our percent quality that conversation And have XX-plus fecal a launch the and we will and give

So the remain the down two XXXX, is, tried while I middle been right the we've what the track launches terms expansions. since fairway, the to middle for geographical and think the on these yes, we do in of of fairway, product pretty think down have of beginning the first much quarters right I of year the

and see pickup we XXXX I these accounts in beachhead of competitive them, meaningful accounts once of major kind of new, some we launch individual products. kind in So call

Thank you.

Thanks, Dave.

to We go with Instructions] Jim will & Sidoti Sidoti [Operator Company. next

Good everyone. me? hear you Can morning,

morning. Good

Good morning, Jim. Yes.

Great.

about to Can your your the launches. the distribution talked you plans you that, with think just international international little for hiring businesses? new bit support you you a have update staff there? on enough will people more And You product internal us be or

appropriately, our couple there. [indiscernible] Australia see not quarters, think already the hired large just We a of in I in up numbers. we are in so will we and last staffed So build couple

the we Optomed properly in So then we as Australia. is staffed think, there acquisition, think well. are And we

do I things. get of enough market service and types people to and think to the So we’ve customer fulfillment those Yes.

the And same Okay. U.S. question for then,

of the to people those bring Do you you months You’ve do sales develop pretty on XX so. some significant next on? before see planned launches bring new people first? the Or you or product for wait some

the already it I me kind of, need contains we I But right. XXXX the a of surprise goal quarter we get is It to think XXXX. build. think timing the to day that think for exactly and what time we outlook see first always hopefully, wouldn't

past you really changes beta, once I So XXXX. premarketing. get any But you're you're in see into don't imminent, you're starting alpha,

think I I then to on XXXX a increasing it products, people force sales starts to those prudent question yet. new the and don't training that's start think become your but

All Okay. Thank you. right.

from Bruce with next take Jackson question Company. will We our Benchmark The

ready of to the fourth go are more revenue going -- there's close we work question. would Basically, some progression at into be to and the a a you about taking done for Thanks a revenue product the the thinking where Hi. And launch? launches. How my the of the quarter? the case talk be for product on commercial being for rest we new full are about quarter, If new year. could see launch, or to that it we be in of falling should case more to third still looking

I mostly assumption, the fourth But towards Element also that geared to i+ say, included product are and the keep Yes. full-year year. in again, would is this revenue. launches mind, incremental outlook new quarter

us for becomes As expands, a more that years. later Menu of stuff function in it

So it year. incremental this is really in

Okay.

going not up normally the then the use customers. but instrument, way to And years. recognition And are in customer, customers will the our the model the sign that the going to terms the where value you in and becomes But customer's subscription becomes opportunity of that acquire its is, cake on that i commercial, sale, extension bigger works and for a have RC The that in again, Element is value and asking X a tests showing testing of for certain it's for in large. third salespeople based with layered new case business a and amount an be revenue of existing quarter.

by time quarter to then there. more to from again, it starts in So continues the up, going really the starts spin hit and fourth that it

we I question. answered your So think

going contracts off signing are Thank salespeople? to great. with consideration? to they effect they hold are helpful. instruments because want talking your that Yes, Have what into the then these have are coming And That's that about under any incorporate product on know that’s are they had new new a that and they vets on the contract launches you. new decided

nice haven't. it's thing model the menu. about our really a And that is They

fries go and you So in can hamburger, want you can. layer, to and a coke, order: if you shake add

are so for we like not I we think tangible products And into these kind people the thing, next of their big understand thinking. But going really think enough are anything build And they waiting seeing kind while can that. to it I are big customers that really that the current that’s a obsolete of are seeing thing that. stall-out don't

Okay. Can sales Then now? right us you where tell is force last headcount your question from me.

say of to And end of Off a off We XXs. build that. head, it's check it the last towards hasn't But head, did changed. I of have my want the to year. would my top the top mid I

the on bit you number. depends to back to you little the of I count exact on have get how a We it wiggle will reason Part is, sales force.

So some some sales some people who the team, count people count teams. direct salespeople use then inside field people count the team, only those service

year. get changed meaningfully but detail, during you the hasn't can it the we So

great. you. Okay, Thank

Thank you.

further there additional to remarks. I appears closing it this are at for conference to the would turn back Wilson Kevin questions or time. like And no any

our solid who and point Element and the good importantly, probably tell. i+, market; is for our products think continues you, and to we and XXXX. track biggest in be are the immunoassay on-time on which call. quarter, our as hematology to our releases launch, market. in a We schedule, releases best logged incremental to product the in Thank And had and We we are and fecal on RC budget chemistry, can our into Element reaffirming focal thanks urine think everybody outlook we

that So keep up we will work.

We another are things in will to to will XX be we on of back forward to XXXX. XX we or so that some progress, you closer and to those days report in looking our days be

to you So Bye-bye. thanks and will we soon. talk

for This concludes today’s participation. your Thank you call.

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