NanoString (NSTG) 4 Nov 192019 Q3 Earnings call transcript

Thank you for standing by, and welcome to NanoString’s Third Quarter 2019 Operating Results. At this time, all participants are in a listen-only mode. After the speakers presentation there will conduct a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]

to Farrell, conference VP like speaker to now Doug today, of would hand over the your I Investor Relations. ahead. go Please

Thank everyone. good operator, you, afternoon

and third well call Brad we Bailey. released the with results today fiscal afternoon, our On for year financial the XXXX. me Earlier this Gray; of our as CEO as our CFO quarter Tom is President, of

on that have release yet it not find seen press our you If can website. you

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

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

from and forward-looking obligation on Our projected the differ may today statements. publically materially to call results no those update undertake we any

this after Stifel Baltimore. many we’ve And York be both Hope New there. AMP I of Canaccord. of two you we’ll on to week Conference in in be calendars got line Later there. – after that a our see sorry, for weeks we’ll in attending know number you and that the week, the

So with that, I’m going to turn Brad. the call over to

and reflect execution us happy to I’m strong for commercial report the today. Good third Doug. joining thank our quarter and Thanks, results you afternoon, momentum that business. continued across

instrument XX% by our we XX% grew by growth QX, in product revenue. driven and revenue service During

results across of quarter seventh customers. solid nCounter both with Our biopharma its core business growth straight delivered academic and double-digit

our With generated customer DSP GeoMx line previous our guidance range, top of updating year of and are the revenue XXXX revenue revenue. for feedback. growth DSP first resoundingly fiscal and service Shipment GeoMx end towards product tracking accelerated we top our systems positive our commercial

before for turning remarks, and the the Tom to quarter the our of towards to provide outlook strategic update details call review for XXXX, of progress an the achieving In results my on the over for I’ll prepared objectives operating our year. balance

As core our first we our is the outlined strategic nCounter in to of objective XXXX double-digit business. beginning sustain growth the back for year, at

consistently objective, nCounter core have revenue QX, met of during and We this delivered XX%. growth

nCounter revenue to by most grew particularly new nCounter demand about from bolstered of Oncology X% biopharma strong applications instruments customers. of million, $X.X coming and the XX% neuroscience. with immunology placements balance from motivated

year. an systems nCounter XXX of of more increased QX, during about systems base installed the over Our increase than prior to XX%

growth revenue of $XX.X total million, quarter for Prosigna consumables revenues. flat increase the was XX% Our science consumable was an offset third as in partially life by

code characterization business, custom who of oncology families team panels, life including CAR-T the our XXX our once both expanded from well our majority sets. as as our from such in PanCancer portfolio offerings consumable of we the panels as The newer sciences On growth came and consumable again panel. our to benefit and side growth delivered our sales continue of

panels neuroscience oncology our outside Revenue revenue. year and XX%, panel over prior In XX% respectively, are addition, accounted the to making together contributions from by about increased offerings growth. of important immunology of third for approximately one product and and

drugs toxicities infections. allows centers. as fibrosis. partnership to diseases panels. such This identify Banff and pathogenesis panel panel damage a researchers six rejection, that and quarter, cystic oncology introducing study launched of to the expand NASH opportunistic understand we Foundation, well third a behind as continued of by two was we transplant organ immunosuppressive In leading of and immunology designed the we to tissue launched a in During panel human better September, beyond new biomarkers August, fibrosis transplant biomarkers In of monitor the to mechanisms fibrotic consortium as

both and panel from third-largest that interest this strong ever we’ve initial for sales entities, offered. We’re any generated commercial and quarter getting panel of the researchers

diagnostics. to now Turning

revenue United benefiting expected decision XXXX, of to flat a diagnostic prior from in government reimbursed Our increased is Norway said, make return temporarily traction in in growth was well as Europe. year essentially as France consumable Prosigna’s over That in in genomic new the being stalled cancer Kingdom test. its only to the Europe growth vitro testing guidelines Prosigna the by breast as in on recent genomic

long-term we into commercial for extraordinary progress launch have an second GeoMx GeoMx to is DSP DSP Spatial the Profiler selling XXXX objective momentum strong strategic our over medicine. established past months, is translational GeoMx during area success. Our which Digital of position The for several

for now beginning GeoMx research are and franchise We for discovery into growth. our to continued our groundwork entry lay XXXX the positioning

a the first marks receiving has instruments The for thrilled types which by the like been DSP and priority the nothing of experienced up sites at included $X.X action. customers Most instrument are systems currently for to GeoMx see our new quarter enabled of delivered. enthusiasm million XX and customers have shipments, they in begin are of instruments been These waited program to to part GeoMx their QX revenue. of to for commercial were site studies have hungry be these year GeoMx previously. of we’ve technology who

and returned and going install speed these scientists interface to application service more the for shipments of sense laboratories, of we up an the we train infectious first user created quality hope, our geared installations With as systems those and and our dared palpable intuitive and and as installation in smoothly even engineers the have have scanning During training the on-site enthusiasm. a and customers in excitement QX. with trainings, high-resolution have

which systems full put $X for ship top approximately guidance the of would GeoMx near the in end of quarter, to our previously expect GeoMx provided approximately fourth year. revenue us million in XX We the

orders our XX GeoMx During additional to bringing GeoMx September the third systems, we of XX. for more systems orders XX more generated than also DSP quarter, cumulative [ph] than as

spatial geographies. in of that spans biology and segments customer a interest seeing We all groundswell are

QX, We’re internal and pleased orders our are tracking with in overall year-to-date volumes of GeoMx ahead the our sequential plans. during growth

Our an and our remains from service. come important own Program, of customers approximately data an a date, development half first opportunity leading future have GeoMx of Technology effort generate or from spatial GeoMx of indicator which instrument experienced through orders real who DSP TAP customers element Access samples To TAP, gives to orders. instrument their market the DSP

We while orders Our projects for our recent TAP during XX% both more TAP And new more up more third than scaling completed million, about record XX than XX orders are revenue investments in TAP quarter, receiving paying off. projects, sequentially. service generating than $X.X and projects. the completed grew new of

XX backlog a providing future of carrying more a GeoMx customers. funnel instrument growing projects, than We’re of

GeoMx. of the Program benefit body secondary Technology peer-reviewed demonstrates unique it’s A literature that our is Access helped the of capabilities of expand that

now including University the from a publications cumulative generated seven at was Our an press that have XXX cover Clinical in Yale paper the to by journal issue XXX Cancer includes release of featured September image been efforts for Research included output projects high- that and was of immuno-oncology about resolution peer-reviewed completed the unique date, GeoMx that on included today. customers. our TAP David approximately contributed to have These Rimm

research to are on that potential We center AMP, DSP and in Annual and will submitted SITC. nCounter hosting of the are expecting Corless Wednesday, be our Association workshops the week, Cancer we Chris papers the from excellence AMP profile of conference, continue On in one manuscripts DSP Society journals, the the during of for been lab the or of to Meeting aware more applications. at customers Knight or and high-impact Immunotherapy GeoMx DSP. engage Molecular future assays have development of a CLIA with this translational which raise we’ll at Later of OHSU of we the GeoMx present Cancer, will the of growing the body several dozen Pathology, this to Center including

data, out SITC with feature conference describing reading RNAscope interest and nCounter To biomarker primarily into of in week studies the GeoMx using reagents variety be and later a from looking disease date, DSP biomarkers cancer in will of workflow. has researchers several for types experiments Bio-Techne’s discovery integrated highlighting come how The systems. GeoMx translational this can GeoMx

studying or using the we begin year, to interested reading marketing Over basic out next sequencing, in more researchers discovery and experiments next-generation NGS. will GeoMx biology

early We begin later to software groundwork XXXX on initiatives and This consumables. preparation enable we several for for this major track the that market. GeoMx access remain into NGS quarter the reading discovery sites morning, out of two successful GeoMx GeoMx in to the announced launch instruments, on of expansion lay will NGS-compatible

by to program we’re high-plex expanding NGS. enabled out on technology include access GeoMx assays, experiments reading our RNA First,

later with allows spatial readout of named from customers X,XXX The featured this platforms. NGS Transcriptome curated measure the Data through our Cancer a customers poster easier Atlas, the nCounter be is from usage PanCancer the consumable-only than genes than more assay Cancer to at that panels most popular meeting three week. we the simultaneously the offering offer a By opportunity even and content merges the in we’re carefully Atlas will service, first panel competing Transcriptome to SITC TAP making context. experience will trial our GeoMx

to biology to single-cell landmark identify, HCA a growth a partnership force HCA the become biology the this the trillions of discovery human or reach in the have initiative to behind of investigators the spatial GeoMx with and HCA, second have Our researchers part to major undertaking, become is of preferred body, driving Human to as the cells we’re GeoMx honored project. is global member provide project The next the X,XXX-plus HCA and and access institutions. to it characterize has of focus audacious consortium rapid identified map Cell Atlas, market. collaboration the their

Our for Seq towards our launch. platform XXXX Hyb advance third is & strategic commercial objective to

infectious competitive to program increasingly make simple, of is confers workflow high and need continue where a advantage. Hyb the This disease tremendous are medical Seq value steady unmet applications. on focused progress and fast area & an on We

data week & of susceptibility an Hyb within infectious many we update later present demonstrating during where testing blood look culture AMP using provide you pathogen antibiotic to and seeing & will the conduct We there. conference, disease ability rapid will on forward independent phenotypic this Seq’s to Hyb We identification the Seq. potential

sites October, spent at he employees. where bringing with manufacturing over we’re made was second President significantly for as a the have I’d additions Before our Mark the turning Winham Senior our portfolio X,XXX Mark more products. In NanoString more to Mark reagent Vice of join to Biosystems the XX time early to I’m and important call highlight Technologies, excited like Applied than responsible to and online added over Life we Operations. we’ve a plant worldwide and than the manufacturing when expanding few decade team a Tom, of past weeks. some team

experience from of in scaling We’re operations his to globally. in a great decades position benefit

successful will run added CEO more scaling successfully Many Last life the technologies, $XXX of Thermo Don spatial week and billion which benefit will we million company acquired company genomics. FEI, a the President Don Board field his sciences than to be and leading-edge as leader as we to the tremendous continue our Directors. microscopy was a to experience commercialize of in Don’s Kania from from electron you XXXX. remember of of by in especially to develop $X

Now, I’d results. quarter to Tom like details call third to to over review the turn the of our

Brad. Thanks,

our quarter XX% XXXX, million reported grew year-over-year of within instrument $XX.X guided service and million which our consumable guidance. approximately third the $XX,XXX. of end pull-through of and product million, $X.X at For of service high of sales, the included approximately Consumable Product revenue. sciences $XX.X was service we $X.X and million of sales, range million and above of sales was Prosigna revenue $X revenue life

$XXX,XXX. bundle noted GeoMx instrument per quarter, representing the GeoMx of included shipped revenue the package Brad instrument system a ran DSP systems per priority $XXX,XXX revenue site and reagents. $X.X the in fall service average of XX of of from the QX portion GeoMx a third revenue back which XXXX, system included during quarter promotional earlier, TAP As for our that reflects product million we starter

system We subsequent the QX then the we quarters shipped be of over and the fulfill fourth line in expect as GPS revenue in rise approximately last with to per orders. quarter will

revenue in service was revenue demand million in $X.X collaborators accounting GeoMx increase Program. XX% Collaboration by the for majority. for the Lam Research continued partnership quarter. a strong $X.X with Technology Access during reported our driven also we from cash QX, million, We In our received

year. the Gross margin XX% and to service on XX% was compared prior product in revenue

instruments. our quarter margin of nCounter towards shift gross the Our well DSP was impacted positively instruments as FLEX mix as a by sales MAX and GeoMx for

to operating have stock-based which to Turning rise compensation, due price expenses. increases in expenses reported across this the in impacted primarily of Recent our our stock comparisons GAAP periods. year, are

million $X.X expense compensation was quarter, up compared year. as is stock-based which For $X.X total the million, to third from prior the

million, over expense approximately prior increase period. X% year R&D an was $XX of the

was R&D year, of level launch impact the with the following in line R&D of which of start of the transition commercial stock-based reflects the to sustaining our compensation, a activity prior expense GeoMx. Excluding

$XX.X was period. of as the million, approximately expense compared SG&A XX% to increase prior an year

our the cash for impact investment compensation, cash, equivalents increased in stock-based quarter and exited GeoMx DSP. million $XXX commercial of We activities Excluding investments. short-term approximately team driven by market SG&A development and of the XX% with

Now turning guidance. to

and revenue our year of our raised updated our of have the $X accordingly. $X revenue guidance We GeoMx to service million million, upper end for we previous to guidance product range full and

loss an We total for provided GAAP updated full operating release. and outlook our revenue, also margin, expenses net year gross in press

DSP, $X including we an XXXX, XX% to GeoMx in now product For of and growth XX%. of from annual expect range rate approximately full million, million the service representing revenue revenue $XXX $XXX to million year

to XX%. approximately Collaboration to million million revenue Gross $XX XX% of of revenue margin and range of to $XXX the total be $XXX in million.

This quarter, product represent be fourth service the GeoMx million revenue approximately year. revenue to XX% the $X we to DSP. of from growth would in in prior expect and including range over XX% $XX $XX to For million million, of the

expect range $X total in million in revenue, revenue approximately collaboration million. $XX $XX resulting to million We a of

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

in closing, In our our recent performance has confidence Tom. increased our growth Thanks, outlook. months in

business of after GeoMx has sustained tremendous have while Our launch DSP sequentially excitement has momentum growth core nCounter quarter double-digit researchers. our Multiple quarter. increased amongst indicators GeoMx generated

a for and XXXX up growth to are continued finish set strong beyond. We

With that, for line up open the questions. I’ll your

first Cowen. question you. from Your Instructions] comes Schenkel Thank [Operator Doug with

is open. line Your

and guys my afternoon good questions. taking Hey, thank for you

great. quarter. which So you straight is you orders, were for you indicated quarter, per quarter, the orders XX second GeoMx added XX to Last targeting new XX

XX at do you is range still end given seen last, think intact? of that this target quarter going interest, is funnel and Given orders in increase the to come the you’ve in your high at point some robust And to this XX of XXXX?

for Thanks question Doug. the

about orders XX. received So we XX we we for sorry, delivered received in in more for QX, orders – then than And about XX QX, systems systems.

So very that. in and with quarter-to-quarter, nice we’ve from order growth we’re volume pleased seen sequential

actually mentioned momentum. running I our about As my prepared during great plans, is of remarks, the ahead feel we this and internal

now more with XX new As XX-plus expecting we into end go the year, implies year quarter. the orders, to the fourth fourth which of we’re the about about or in quarter orders

the to we it’s on both what expect existing as quarter-to-quarter market discovery our XXXX, to hard exactly we we ahead to to seasonality researchers NGS. begin orders opening matures, as the new As look do rate are know up who of will of and course, a imply on basis. address funnel research to increase translational overall, system by readout of the GeoMx But the considering

up be to and you’d to platform should as seasonality. the detector, Okay. to, shipments into seasonality next GeoMx a terms as you’re just to year, share attempt helpful QX normal seasonality to rolling, for might XXXX in you’re model? That you’re a due balance be GeoMx we tug opening bit things said, us there broaden That Thanks makes relative Brad. today, which to going war our that And demand. NGS and not guiding use sense. point, anything in have that revenue with these going Is at from of want steps some down a the of momentum between standpoint, usually QX to recognizing heading

know of to patterns business, as patterns seen. you often step in the parts. follow though in in obviously than to our The the mentioned we’ve model nCounter QX I QX, our to lot our your say sequential orders like as XXXX, portion, expect GeoMx also would are the The amount QX pattern expected call seasonality year-after-year, more from down of this QX that in think core begin be – that in some that We’ll to Sure. to to February. I about we same portion be they should remains But that looks which the nCounter two what buying seasonality order terms revenue stronger a seen question. of business you would exactly in have on are DSP follow includes

for, That of seasonality, a the that said, our up we length. we’ll follow being sustain GeoMx amount QX to customers installation relatively to not waiting deliver try have that’s patterns to into a robust backlog will from a been during be and typical rate revenue in XXXX, as year systems and because QX to continue sometimes research DSP total the substantial and carrying XXXX looking be we’ll

probably revenue than book. So do relatively be to GeoMx QX, see order expect even the in strong stronger

last One had revenue, one, is year consumable some guys instrument nice the nCounter have you with side. Okay. had have on and core this guys both momentum this

as next side, would seems consumable quarters. continue might next the continue several why On pretty or that to it the straightforward over over several quarters the

instrument in driven something customers the Or can side, instruments. of you been, with end? use using you who believe, buying as open On detector Do are some the I a is should interested GeoMx those that, to we up? the GeoMxs back on steam resilience also has part keep what’s that that may think as nCounter NGS up lose think

Yes.

of panel to remarks. a we put the things been move prepared I’d mean – a given breathed new strong own great an an more much system. areas to any whole And – neurology new and instrument for GeoMx to reason and immunology placements life is I Certainly, this have have and sales ago nCounter oncology. nCounter into both different resilience as than readout to beyond year. of years effort and a a of customers point year, application nCounter an previous in category business been the my in it. the couple couple in have hearing So One GeoMx like in place they into been application that has robust of that ever put you’re XXXX as

think taken part that’s think To way substantially in at XX% been, of about all. focused GeoMx, some or orders a going don’t question. even we’ve with We possibly another, as to as great believe the not that’s XXXX we I really or date, or of nCounters have in I a thing. otherwise. that think we’re – that But associated bundle on curtail

and growth – on opportunity. We’re total focused revenue capturing overall the overall

by the tremendous could know, the NGS can you the that the access come to because open nCounter that focused NGS totality, any on As was dwarfs motivated systems. on opportunity the we GeoMx. And market then nCounter in decision up GeoMx the readout up to to amongst GeoMx by XX,XXX decrement opportunity we’re really not business overly opportunity opening

enormous capturing spatial genomics focused We’re on that opportunity.

Okay. queue. in helpful, I’ll for all back that. Brad. really Thanks get the That’s

question from next Your Tycho Peterson comes JPMorgan. with

line is Your open.

to prepared Hey, you to in Tycho. more that still the around just Are Will for priority things is because on kick of all to alluded on sort will of year-end I that starting mark like XQ be sort guys. XXXX? customers to site question ASP this up the one off. This that a of pricing. gradual GeoMx next Tejas their by receive housekeeping gap ramp? year you Brad, the remarks feel expecting or promotional systems $XXX,XXX drag closer to

Yes.

site several single for installed early the Certainly, ramp program we’ll our year. of of sites over best or but those we’re will GeoMx shipment recognition the to gradual the next think a precisely the I doing quarters. I every shipment, prioritize priority by upon ASP believe the end don’t one more have the be revenue instrument

ramp revenue I per more the expect gradual So, system. in recognized do a

it. Got

to getting of sort the customers, cycle burden start that of in into having mechanism solution so, an I would a the of upfront open considering And just on you that spoken Just of some on sales that of mean if your that out see past? competitors six-month you of impact their the to reduce as market? the what on particularly be here you’ve pricing, do some on thread pricing sort point

Yes.

we what I the an this first to for $XXX,XXX approximately idea respond the GeoMx that charge to is think impediment. –

an the or at And capital pace little tremendous carrying, So far We’ve you required exceeds we’re that’s no we’ve access accruing really orders our backlog on capital been internal been the to a that enormous really plans. expenditure. GeoMx. that expenditure We’ve know, of types addressing $XXX,XXX a for of pushback is customers as seen interest. not

genomics pathology or And less For it’s people less that are is readout with for things the on immunohistochemistry. scanners they equipment, than regular next-generation are basis. high-resolution accustomed $XXX,XXX like a who on community, sequencers to used par pay more to certainly, for

So, the required GeoMx do be see not for expenditure to really capital an impediment. we

the see with our sample we ability the the benefit tremendous of the fact, and automation and workflow In data interact the as a and to system.

of they’re of off systems, with And customers are underscored who we’ve our who’re sophisticated feedback using the the to that. the with some first delighted received getting regions the software, high-resolution select ability from interest really received who’ve scanning delighted have the system,

remain through don’t to Of robust stream, execute course, see grow rapidly do But customers pricing a of we’re guess, I rational much stage, our business do to we that the acquiring approach the for kind this to thing. can at very exchange flexible And we can that really lower believe need a better price we may the our serve – if more of or the consumable more the of tactic. retain flexibility equipment of course, going the that that. we we needs we

offering foreseeable past, number GeoMx. but to qualified. sort you is a with Got Brad, of remain it. into rather orders, which users of smaller instruments? where a customers half X,XXX you’ve send even point final of one future? you’d offer? that program here, power there those samples DSP for continue their do will so, the Or are the TAP service backlog. translated then And on And expect How sure long you TAP sort program greater multiple And as spoken this me to have absorbed a the mean bunch on or into I one have been your in of from of I’m

compelling TAP DSP this substitute service drive is DSP that research perpetuity we’ve to provides We as convenient access instrument. really to a point, test at TAP intend process the revenue GeoMx of in DSP what instrument. think providing and a to it very GeoMx that driver of maintain – organization, the to of learned really at instrument for experience as a not standpoint We purchase. of this as about I as GeoMx technology part of growth easy the but the a contract way or an intend simple, evaluation leads

have at and in the shifts, July, So provide turnaround we times additional continue the – last quarterly about its end staff investment on could expanding and in call an respond that in talked TAP. to we of so held capacity of terms to we rapid weekend demand I that

continuing so can address program This added begin TAP we that. morning, that sequencing-based discovery customers. next-generation We’re to readout to we our those

large prospective experiments TAP of large a whom have think drive-type test biopharma we be and very shift amongst will a research of That experiments set early to on. wave long the to around providing of time. customers. studies some convenient period, for that we’ve we being for So, organizations, And small, provides customers been very contract customers will enabled those academic to service that that a to to redirecting be is said, going from over one TAP

project outside major GeoMx was that few kind that at learned had use international of NanoString In the happen cultivate up fact, systems that that a CRO we weeks we one thing have in to at of to instrument to capacity as great. That’s queued of installed we want and system, ago, a on can one run CROs biopharma TAP they least just first we that’s our already customers. the that

Got it. much guys. so Thanks

Schulte comes Baird. question with next Catherine Your from

line Your is open.

questions. you and expand I that can sequencer us you you remind particularly instrument team, Thanks terms as are guys. any just up reps first, of for And readout in to plans open capability? the where specialists? the Hey, guess, GeoMx

Those maybe XX terms to both funnel. about today, investments groups GeoMx build least. believe instrument specialists. are invest sales of our quota-carrying are of we That GeoMx I expect being the uptake making number front. of more reps driving order about and magnitude We’re GeoMx at That’s number channel sales the we’re at that the sales effective order a in sales the capacity. in instrument do good sales some of continuing on place, highly and and right the to reps in sales being said, the on-the-street inside XX specialists. not at in sales We

from has experiment been consumable and adding sales continuing Our sales be with on it that sales channel telephone-based a to up reps GeoMx. focused resounding that development inside specifically success telephonic such will a These scale capability market we’re to enormous qualifying interest up who on and generating leads roadshows the are in and people tasked on into passed following are the participations numbers leads before of webinars, and our through sales major that meetings we’re at those understanding their funnel.

cost-effective are that’s, I and making think, one. So an an very a we where area that investment, is

been seeing landscape play GeoMx any genomics industry the customer the Have any sensed in the you competitive base? holding you customers evaluate off recently. are in And Or to of competitive technologies? noise ordering developments some Okay. then spatial that out within on

louder the been within of competition the order we the date, investment the in would that or in has GeoMx say been customer deal pace we great research other the noise system. actual community it any slowed than not community. Yes. has consideration date, down a have I’ll To seen competitive way, of have, major To offerings

tissue, of So, for system and it’s paraffin-embedded system entering and little out positioning great we’re market, the to very RNA compatible no about from that protein where our now research, of formal the or and that offering. fixed required new throughput which with pleased capable process have really provides the really that’s with reading feel in translational both entire both the competition we’re clinical we really trials only samples. of We entrants segment. the GeoMx And discovery worth research seen unique

Hi-Plex out drive coming our convenient new researchers with at to via of capability we’ll be data now our TAP a discovery RNA providing a Atlas our panel. And program. have test We meetings take major very way for

the that what’s opportunity? time last For then from And of Atlas that base? And limit a there me, initiative, magnitude to pricing the for is Okay. one pricing cell the customer preferred human

Yes. the of customary of pricing I realm sort discounts. would call preferred within the

the have HCA, but kind taking important we’ll negotiation commitment those their few we we be of HCA through very sales discounts endeavor. to process, think the that I members customary offered it automatically doing a a cycles because basis, giving have partnership of of with scientific the on may out

long-term So, an I in customers, as view will commitment that who we economics, market the GeoMx market but it’s a potential a of enormous for terms provide or think below that either in rather the of future. don’t something transient to base

you. Thank Great.

And your last with question Dan UBS. from Brennan comes

Your open. line is

Thanks guys. thanks. the I quarter in quarter for on Did – so prepared correctly, the question, $XXX,XXX think remarks, first pull-through it far? in the was GeoMx I in you Brad, this annualized Great, hear taking

offered to the per time, accounting alone, revenue from site any amount also is have included the the consumable were GeoMx, to order than we to glad the of less per time. I’m DSP to the customers No, guided consumables, service update at respect yield Technology instrument Dan. priority per we’ve for $XXX,XXX rules, consumable No. year as an sales you expectation the of less this will so normal – $XX,XXX as is it that revenue our Program, first this recognized don’t in is we with At that recurring Tom have so list and so prepared and that $XXX,XXX the remarks the explained, than price. the the average in in expectations update the number that substantially who have been shipment. recognized bundles instrument revenue, system GeoMx we shipping been past, to instruments $XX,XXX reason price that far, Access And that asked, referred that’s upon list GeoMx

time I you then earlier. that Maybe that bolus I Great. know a qualified think think someone does but X,XXX And number asked updated I you the of the then stand had north since AACR, that. today? qualified. you last you leads of Where number had

those today? do So, leads where stand

that answer We’ve this this we’ve invested And one whole the like actually and at the round kind a as Yes. that We’ve continued stage. we’re staff and week to new leads. leads qualify of way our worked SITC previous of AMP those through effort, mentioned I back to now in the and majority going of generating to questions. I’d leads. those to dedicated of say meetings

We’re and from that confident outlook pleased resulted sales. the feel funnel the lead continued for genomic growth we sales that has instrument processing, instrument really in with growth in all GeoMx very our in

quarter, color, And mean a in terms that, bit a seeing I of again, orders? orders think is few got But where – were terms XX – what driving obviously, the guiding faster a it’s this little you of that north be, could so qualitative bit you’re you instruments just uptick drive bit a I a to. of in any Any of can above, timing. think, you of

amongst it’s team. it’s great pleased the that’s think I commercial tailwind for of Well, really the tremendous the peer-reviewed science usual coming our all latent say and showing execution the tremendous is It’s out – of. of good the to biology I’m what GeoMx in solutions. sales things. demand literature, capable spatial It’s

to we’ve also be surprised offering. to guide QX to the range to the towards end and numbers expect of the just us this QX. up how instrument guide to and we book positively previous instrument expectations So, continued to response installation and guide for numbers reaction the installation about in that’s for allowing And the many getting orders top we’re always our

commented obviously of a if the But guide. And not disruptive, as we GeoMx it’s novel. this you but you’ve but ramp sounds much you’re you instrument, nCounter think when as different-priced previously, on a about also into predicate, get more going the I to obviously, think XXXX, when forget

predicate, the ramp the the would comment nCounter. can nCounter you GeoMx a – is you versus is as fair that expect that So either

systems outpaced several ramp date adoption the vastly years has GeoMx the achieve. of nCounter sales XX-plus At we orders nCounter. achieved to to date, a it took for level of adoption Well, to of have

good I analog think that nCounter don’t So, sense. in is a

mid the launched plex have tool out an expression for we that remember, of gene made expression You really very a when market a we had entrant in an when we existed the – we a there. whole nCounter launched think we we’ve achieved crowded nCounter gene but I pretty new a what translational technology. market into of And market the were indispensable market, into for new proud research, time. I’m really long were carving niche that

with the robust enter in have In we’re first that automation new probably nCounter. company not us potential edge market, the with GeoMx, strong an exciting contrast puts to at and flexibility very of leadership time did of of the a market, and for at solution bleeding position this a we that simply

NanoString’s think total market that we nCounter. share outstrip have vastly potential I for GeoMx experienced in market and market what with And I opportunity earlier, so as both size Daniel the said

last one. Maybe

if I pasting of So that? the is think don’t do predicate, in is at of kind but protein looking RNA of order terms ramp, addressed the it similar think, like a ramp XXXX. opportunity, the and Should before, know when of it similar year we the pace kind follow first in that – a about in you the of placement you’ve terms

I think a too early little say, it’s to Dan.

date. because into to through sufficiently ready will looks launch identical ship build instrument was the playbook immediately, not well customers that package will we to in seen in a shipments to program was I’m when GeoMx I will original a what begin product at time launch, to know Sometime and was confident offering long-term think so that then a potential to numerically success customers funnel which the we playbook those the hard But of and go we’ve It’s have but start to enable in we the to similar to translate we’re software technology nCounter-enabled to right? GeoMx that achieved we overall offering access a those something if of and used instrument what following by systems. the work XXXX, consumable robust.

Thanks, Brad. Great.

to closing further turn remarks. There any are Farrell no call for I’ll the questions. Doug back

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