NanoString (NSTG) 10 Nov 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the NanoString Third Quarter 2020 Operating Results Conference Call. [Operator Instructions]. I would now like to hand the conference over to Mr. Doug Farrell, Vice President of Investor Relations.

thanks us and operator, you, for today. joining Thank

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

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

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

of Our selected Consistent and will we'll Healthcare materially Suisse. of selected recent measures our for of or and to nearest well to interpret believe participating non-GAAP in adjusted GAAP results Stifel no financial quarter month, in for Investor this it obligation have virtual statements. the in year out To projected, according XXXX. results we using Conference results. the their Tom rationale makes a earnings the and our this supplement we call, prepared from Relations and conferences, adjusted be measures. financial and page posted undertake with those details we update afternoon's and care our that as be analysts all reconciliation to and measures we as this forward-looking release a limitations of information the Later and unless measures measures to regarding definition tab of calculation or results. for include measures, full presentation includes these GAAP, our easier the press non-GAAP financial have aid compare data to a of most measures exhibits our non-GAAP building release, our reviewing financial X differ health This noted. discussion the investors as that be may models, Later these will comparable each financial non-GAAP Throughout otherwise other call, Credit GAAP

may forward me announce you over we're road provide the updates virtual chance commercial look of the event, press which Investor as our we'll be to release development the to market. Tuesday, where addition, call today, seen excited have December map, in product to with of our In will held you on and to turn X, to the as spatial Brad. the let that, initiatives With biology speak many having We there. Day

discovery, Doug. across for we Good and us potential and a growing are leader today. market clinical translation spatial diagnostics. and with afternoon, and joining you huge in addressing thank biology, large is a NanoString Thanks,

tremendous momentum, by consumables We expanding strong demand as rapidly increasing have orders our funnel for GeoMx the and sales opportunities. for evidenced of instruments, GeoMx DSP our

spatial $XXX headwinds. investments million to to over resources third the current leadership fund XX% on as October make forma It a our successfully the and quarter us initiatives genomics. in quarter, growth, academic-related X, results preannounced equity well as to generated we ongoing despite these During future third help revenue completed growth We financing. gives extend pro our

We prospects. or have in our never been growth position about stronger excited more a

details our for of financial update objectives QX and progress to you today, operational towards review Tom, our the who results call strategic the results hand you on our and for more the I'll off of year. outlook will then I'll balance the During XXXX. give on specifics

GeoMx the and instruments GeoMx in torrid labs volume had XX cumulative At virtual demand doubling for August steady conferences recorded instruments, The as more and genomics levels quarter. orders, board, during consumable the in guidance in spatial GeoMx leading compared the trained. GeoMx second utilization call. of we through install of more the and XX stream with rates third up sites, pace GeoMx XXX commercial improved During than publications our to projects consumer maintained and the of more quarter. ramp and the generating double we than our indicators XXX a research than The we than we future all generation more year, in about the sales orders We're shipped, QX, quarter, the a and we over installations events. in GeoMx's seeing of lead $X.X TAP exceeding momentum new train across shipments, a of systems are QX provided end instrument GeoMx prior positive XXX sites including GeoMx QX, installed about as training increased prior activity million of

forma Our as the basis over versus year growing to has compared year-on-year the compared improved dip second prior nCounter XX% by activity core lows the nCounter demand we recovering the been business pro QX. a increased from to roughly pandemic-driven on experienced was nCounter nicely research than slowdown, more down less X% sequentially QX. during XX% than quarter. revenue of

increased we XX% reduced to and year. sales operating of through customer fully their XX% labs about remaining that while labs open, end estimates at of activity capacity since reduced the Laboratories continue expect levels team are capacity. are most August, our the have at the meaningfully Our globally, operating not

not U.S., research into that situation a factoring seen COVID-XX are have in a and the QX we We and monitoring cautious to activities, rates outlook. slowdown but dynamic closely infection Europe rising the leads in

at of that we Now I'd out update on an like to strategic provide beginning the year. X our the objectives laid

research is accelerate nCounter DSP readout or the strategic the preferred modality. translational first of adoption in to as GeoMx Our objective

This suited vast well and taken to is were sample. assays our use We've targeted validated the per More needs the system offering simple nCounter-based researchers using are of recently in remain of researchers orders on and workflow for in XX-plus market-leading GeoMx total orders majority of large our DSP the antibodies. XXX XX. cost translational translational launching portfolio X research QX brings lead expanded content, modules accounts for the focused of genomic readout. protein GeoMx Our September to of protein nCounter. we've running planning than XX who from a XXX-plus over DSP nCounter-based menu through lower readout protein readout protein new panels, to

We continue the to see base strong demand are market historic our penetrating nCounter translational installed systems. for GeoMx demonstrating we that beyond of nCounter bundles,

of an days the single have of a rate, And pace on XX data translational to helping peer-reviewed X groups cumulative GeoMx we biology of there since translational across customers we globe. our is is call, GeoMx for continue translational genomics. demand. September, network focused growing of August pioneering at formation developing fuel that the believe In studies, research total announced Our GeoMx and the impressive large collaboration the The this standardized GeoMx cell been researchers application of new on papers leadership body publications. sharing between practices facilitate and publish spatial and the to is early similar to of

participating Next Association workshop focused we the conference, week, be of for diagnostic where Pathology Molecular on are GeoMx. potential in we'll the hosting a

spatial next translational of an revenue to exciting not make long-term opportunity biology believe clinical in out for market that the our naturally over contribution meaningful is arise it provide we will year, success While search. expected does a growth the

the using researchers driven proteins capabilities. into objective to research, massive the discovery installed DSP second base about August, being our Interest In came RNAs compatibility next-generation first of both CTA, plan include sequencing Transcriptome than strategic GeoMx GeoMx amongst or profiles make RNA next-generation and full we researchers DSP, readout In launched unique orders discovery GeoMx who Our the of leveraging profile for to which sequencers. and ability this the and adoption Cancer spatial of context. formalin-fixed, for GeoMx. paraffin-embedded XX for is to capabilities primary consumables in NGS is GeoMx the samples expand system, platform's more readout Atlas, their third by automation, which quarter, of the NGS-based with the X,XXX the

are TAP. researcher own using test discovery our to in drive customers with Technology beginning NGS Access increased, prospective opportunities As for we expanding or Program, GeoMx interest their samples, has

half and the WTA, include our program quarter, record TAP the third used we Whole more than TAP Transcriptome NGS an to service that or their ordered requests the write During the expanded helping XX-plus with WTA's world provide as their assay momentum year. to own grants our external profile in ahead gene manner, be allows every the of in readout. discovery tool use will run complement commercial September, formed called samples, that which them used internal demand budget In providing a Assay, of of laboratories to Sites, powerful This projects biology to commercial researchers human Premier the to unbiased own To an launch easy next to purchase build is in access spatial to consisting customers tissue. system. that our probe Access GeoMx data to allowing and any GeoMx we TAP, can X network aspect of human around transcriptome

we Atlas complementary Transcriptome XX are be content, our as than NGS will morning, that to we now on protein our to focused Cancer applications. portfolio have this more protein immuno-oncology Finally, include readout industry-leading our capabilities Customers expanded panels. announced protein receiving able add of including targets

field addition biology. most the diverse type, tissue our now of research RNA content ability emerging for analyze we to portfolio markers of the offerings, discovery the capability the any in and protein virtually spatial With versatile offer to in of

our expanding maintain base of base demand our to maintaining grew installed systems, In Our third installed our consumable third the approximately to compared strategic ago. XX% and the while generated is increase a XXX nCounter quarter, an business by of year objective pull-through. nCounter healthy instrument we momentum to

nCounter area Immunology GeoMx panels. and sales driven part new traditional were particularly strong gene in of in While the by is instrument our neuroscience. about the of were by immunology placements by nCounter oncology, field interest, XX% motivated majority of an expression of driven bundles,

or New allows used other For to COVID-XX gene new Medicine, science, SARS generate in to reaffirming system in and unique expression studies has translational the of strong study more scientists key than have gene example, by in XX been Journal FFPE which position nCounter results response date. of ordered seeing host This on panel nCounter panel now the COV in be COVID-XX published been to to samples. combination can of spiking, X that customers we're interest pathogen. hard-to-analyze any both response our England immune with our

our for for applications the Hyb objective is & select strategic fourth Our key platform. Seq to XXXX

our unique As we has for exploring this potential sequencing been team chemistry. August, in applications mentioned

our to an hosting update the the at of will for we time being, confidential, be Day details these provide and pipeline virtual the we'll Doug Tuesday, While on direction Investor this December X. remain plan shortly after that provide development call. program overall product on the

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

from this top results joining which operating and thanks for a challenging environment. us to are despite excited Brad, strong walk quarter, our all I'm Thanks, today. through bottom,

to the XX%. sequential occurred revenue we transaction, and Veracyte, that forma year-over-year Veracyte December the quarter is over transaction XX% transaction beginning that revenue growth of metrics representing now growth pro XXXX recognize the forma product million, previous same Recall of comparable at of the the that units third Prosigna our terms of the with of the X/X reflect pro For sold. XXXX, periods. service was and the Pursuant $XX.X about of

to and of As from million showing been about instrument and growth strong Genomics million, was was with instruments impacted in was 'XX, activity. revenue lower NCounter derived QX XX% was to shipped, approximately nCounter $X.X sales. consumables demand consumables QX. derived Brad but recovery revenue $X.X compared noted, GeoMx are has from $X.X by more lower recognized was revenue lab QX. a $X.X sequential XX compared X% as million. strong million

$XX.X a XX% X% began we was QX. seeing to million, compared QX recovery. nCounter basis but QX on to pro QX, substantive growth of in 'XX, lower consumables However, sequential forma compared revenue

service XX% for pull-through contract revenue GeoMx-related revenue TAP nCounter bases. and the of increasing our and QX imply annualized over system, due XX% of projects DSP consumable improvement substantial primarily experienced QX. services during per Service to pull-through pull-through XX% pre-pandemic about and million quarter, guidance instrument installed derived and sequential year-over-year about from increased sales Driven we $XX,XXX the growing by a $XX,XXX growth Our annualized our $X.X growth. GeoMx was nCounter about both

of realized year ago. the activities. margin or than to investment exhibits group lower year adjusted $XX.X in Veracyte SG&A from Pro by we results adjusted These transaction, driven well refer were received Investor items. offset in transaction $XX.X Veracyte trade certain Turning our QX incurred all our Relations year-over-year. that on our as and or product Prosigna adjusted SG&A Adjusted revenue Veracyte the expenses points detailed expense for was impact a and for an service decrease forma gross million, primarily on continued and was decline last reductions of EBITDA, the adjusted XX%, in initiatives, The impact I'll now by adjusted lower About and lower was Adjusted decrease in Please with about XXX our expense to web non-GAAP QX be basis travel non-GAAP the partially basis, to combined Adjusted driven agreements, transaction. related relating show reflecting in made removing stock-based depreciation efforts. The gross revenue change collaboration and in expenses. marketing how expense year. half our expense pricing providing development GeoMx-related as compared was XX% of for page primarily the the margins and and of million, of a margin was R&D particular, transaction expenses the savings commercial a to with certain revenue investments and offset XX% as have the of lower, by was we prior sales. product of about from press growth certain $XX.X and including continued to on GeoMx to driven of year-over-year. operating onetime compensation, customer digital service improvement our total of the was prepared. primarily quarter savings compared QX Veracyte million, instrument our support our operating greater by release sales the EBITDA loss posted of mix reduced XXX information a due measures, was conclusion a XX% basis decrease points expenses, part as to the We acceleration percentage GeoMx to reductions the initiatives. are by reductions

balance Turning sheet. to the

to in balance The are at history QX. and proceeds end demand. net upsized pleased proceeds We which generated offering $XXX sheet of completion the equivalents strong a and month, strongest million, we NanoString's these the hand stock due cash last to common have after on offering about of of investor including

equivalents $XXX Our guidance. balance short-term Transitioning currently cash, investments to million. cash is over and

million $XX service product nCounter GeoMx million, lab $XX to we currently with and assumes QX, million $XX are revenue This and to $XX $XX For about which expect assumes activity of of $XX approximately revenue that consistent revenue. to levels QX. of million range million million

from guidance Our sequential the QX QX represents just growth. range, midpoint over sequential last at the consistent of growth nCounter X% year's with nCounter to QX

provide, uncertainty, QX than a guidance typically current rates in pandemic-related lockdowns infection Our range records wider new America and recent in with we North EMEA. is had reflecting new

slowing examples strong QX, sales in processes we our levels Europe similar aware activity purchasing are of purchasing to funnel a at While October weeks. remains those recent observed few specific remained down of in in and

systems closures. negatively our receive to impacted revenue and impacted and site as as instrument GeoMx XX-plus true team's also strong operational revenue approximately by train by our to is support orders are and been those the due may Against be orders we place our flat QX, QX. are this unable to well procedures has or safety As customers. install new during service throughout customers, for the backdrop, to guiding dictated ability of GeoMx which own might QX our of be if pace shipments in pandemic, customers recognized

what we we expenses, to operating Regarding consistent expect recorded and gross be expenses about margins QX. with in

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

capabilities this in researchers. revolutionize we broader rapidly even now generated that NanoString early GeoMx with will of researchers, our expand accumulate initial to leveraging biology, an the translational biology. among developing We Tom. Thanks, an tremendous a platform readout rapidly set NGS are spatial to of is and leader offerings momentum field

opportunities. helping Following recent our up pipeline, the I'd to we within financing, on sustainability like extend to when to biology. to growth the how your capital that, work we invest We leadership further Day, in With this our organically in have to plan believe for line our we look to put spatial questions. details share and needed innovative open grow the to forward upcoming Investor our capital additional both we'll strategic

[Operator Instructions]. Arias comes Stifel. our And question from Dan with first

different few on that you installation terms training in on comment varying just just there Tom focused step of ago kind of We've and and comments instruments? what from up gotten of get for to minutes Brad, I'm the academically companies in some just up? can so curious people and for like U.S. your a lab shaping in ability expand in the the kind experience access made Europe your kind the versus of

weeks, increased beginning to have It's single support the see and question, Dan. -- in very to reemerge few complications especially we've some personnel, say The dynamic in situation. and Europe. rates started Europe, a restrictions we in service as Thanks Europe. instance, for in last the every for don't infection travel in I'd begin country

We do have maintenance-type work. and to borders cross people that have trainings installations preventative to and

to when So out NanoString quarantine post then take Europe, quarantine from country places service culminated complicating. for into that It in one or days procedures becomes that the send have another to of a becomes XX we hard that installation. have like engineer person for field and X to

revenue million is to I $XX recognize our are that the in that think not Lab of terms recognize undisruptive hoped. down. guidance systems able had are position things -- at range this low activity end to with. complicated, end manner install slowed and a that range quite has our we're pace itself is at more we're of that of continue at X of time. that not GeoMx And Europe say, And over we that really at of top we those we weeks. utilization get So implies reasonably dealing for for It in to largely complications the this consumables GeoMx, million in to a kinds range -- basically, the revenue $XX of be next, the

today, with October Europe it the through seen keep rates hear our stable. and if people -- not about plays clear, our have consistent are globally. in the some watching of remain was beginning closely you're cautious -- look working remained the are procedures be from whether rather we have we in we to we We and lockdown To at that that that infection same on indicators not consumables. home to rising than as lab QX activity But see but

Yes.

Okay. the that lot I gene are work folks sequencer. also side, Very the have helpful. nCounter the doing a then expression imagine And a of on maybe on instruments

and you seeing of a are into longer trends And with factors reason that nCounter, what experiment? So bunch the holding the But normalized COVID. the way, think the over running about then be on have nCounter Yes. doing those Said along where choose an pull-through obviously, other finding seeing picture this of And that we where sort approaches? are this if period the another at are factors you winning? of point you equation double-digit any people RNA-seq time? lines, growth Veracyte are consumables growth you're wouldn't playing the maybe the why rather labs with steady still with just year, in than

Great.

high and So interest. nCounter content need simple a their value served of specific tuned a very throughput of who a set very the biology of researchers has always the that's level to of workflow,

view that's highly immunology data over or with distinct And you customers to nCounter a most NanoString gotten despite drive has our it So or and either had expensive field where to And to really a that perspective the day nCounter sequencing simpler and a capability have at want replicated workflow cancer process be the a themselves to And of success very a core in see neurology. of perspective. independence their RNA analyze from productive. the of that the the really We've uptake. our to to on basis time, instance, PanCancer on be hasn't much compatibility, less grown able has fact system samples really, it to nCounter where that panels. field is analysis their really XX from of XX to themselves the lab run data and popular ability for FFPE based always

the So of continues year that's that continuing, to depending instruments but we really dynamic, why XX in sort we on see add quarter. the pandemic nCounter slowing of, next demand or XX don't per to that see the it, X. XX, And down order call new in

demand, the rate installed year, double-digit has system Every terms the blade at XXX then revenue a consumable In nCounter low our replace low translating a we consumable double-digit about razor-razor ex a systems, into model. try that new growing and of to growth. pandemic, base

to said you'd XX% prepared my year-on-year. remarks, I -- during consumables installed about expect At into our for pull-through, our is up instance, So translate base up that constant that XX% year-on-year.

you're think right I the thinking about Dan. So model the way,

to going believe consumable we're see going of I model nCounter think forward. XX% in growth order That there's no placement. drive instrument in to a reason magnitude approximately can slowdown our

question Doug next Our from Schenkel with Cowen.

consumable all kind This back little you the new the in normal activity the the of remarks quarter. and per in or while, think asked, forward? a wondering nCounter a you just Dan's change of is although on be more And talked certain last levels that's the seen given changes think you the might annualized activity to you've just we QX about course stocking lack could your Dan activity. month, modeling should you do working Do kind my any about prepared was what pacing lab instances, for bit as a be to rebounded nCounter, moving in there's in of that over I'm meaning this lab in by whether think of $XX,XXX mathematically say you QX. brain on as similar if quite quickly just -- pull-through, wondering, I just is what I just But may be kind tonight. not question of

little QX over Doug. the for way couple back pacing me question, bit we let the tell you all quarters. last saw go the Thanks a to over Yes, about pacing -- the of Yes. and what the

we demand the of down, the May activity in of just the April during June. increase We abysmal and during depth lab COVID-XX happening in in So a walk months QX. saw saw substantial remember, you'll

better we moved continue a so quarterly August saw labs at to than better than really, as out exited situation run run was average. We rate some overall. July average into, QX much QX labs of overall the will of of And the consumables, The rate June pretty a and improve decent where in much that close.

be have August, closed high that no stage. since in are open labs would as research scenario, a where normally than virtually of actual not this the it the the and of staffing number amount the it totally in We the at is maybe but would end people lot in labs Most this as X. terms of really operate partially is as lab, as not quite therefore, activity of more be, high it's

we same of We've level and order change the So of haven't end same seen seen since the that pacing. about really lab of, the activity therefore, much. August, level consumable

out spreading don't physically are through the multiple labs, pre-pandemic we their Labs way is at over work least this in will that get to we're get to see all of state shifts, into spreading done XXXX. much weekends. out the people pull-through how I end going until possible, QX. think think be I figuring as as But back maybe in people the the to us

sequential is to and basis, system on with about pull-through larger applying a So guidance. good totally our think it that consumable per on consistent installed QX that's I year per think, a our Tom's base $XX,XXX way guidance, modestly

helpful, real is on But that stocking is or that, super and just no be was in Brad. clear the And good dynamic there catch-up Got QX. it. to thing

So just...

I don't No, know. really

Okay.

we No, dynamic. saw stocking any we don't believe

Our to what to do know you're to you consumables are you've or to experiment of what order content going what sort panels -- before know order. got

That rarely dynamics. So was sharp see for account was stocking in the not what rebound very we in QX.

you early Okay. every kind are in really know it That's just form All ask but sense competitors like some we getting then But this quarter. of your going. for of interest, days of seems a the profiling great. it's there's lot recognizing, And that spatial right. and I really,

talk amongst extent that So up. that's seen the picked you've if competitive any market. as is changing of if could great. any changes has this. about change, then end could application want all whether to do there's of dynamics kind last to the you then competitors part And activity whether I ask in noticed you've the there the point discussions of And tone with things it's or Is ReadCoor-XXx key that to, customers? you at combination

Yes.

to us. competition head-to-head at if When encounter I'd been in not see say no in kind have been representation relative do with really continues market. change quarter, any where in last We of with dynamics. profiling So see we which in change platforms, to leadership. really scientific of incredibly meetings there's have our feel translational in strong, in there markets. competitive GeoMx that We the to up material we secure GeoMx, watch very be the the is NanoString other strong the spatial latest sea don't we catching anybody

we morning, immuno-oncology translational showing with this abstracts in GeoMx Xx published. and Immunotherapy of Cancer feel the to We instance, as see as For many appears the momentum, about up And to that great abstracts our Society really GeoMx have glad research. were competition.

Genomics our changed with meaningfully it to has plans really look the what the ReadCoor to acquisition and we're product dynamic. to coming do be in dialogue it say, not of when XXx customers. will forward The change I'd competitive market. that all XXx will no seeing by we So That's having also, with a

Its be imaging-based to top impactful it mind, interesting of complementary for GeoMx. And time another And does I category that is not in think a way whole probably is transcriptome, mind become to for going will which throughput, profilers but profiling the lower not the up time, all a the that to potentially of or be thousands lower to certainly, throughput. imaging-based the to couple customers or hundreds resolution commercially and of think of it higher I'd going who plex to right are the it's much over tend product high where products be I quite not occupy be provides level. it's when in a over higher category imaging-based that complementary buying say cell It's be if years. sit, resolution. category will subcellular transcriptome of single place likely going whole plex genes now the sits top and

about us now, as movement see it a as But discovery. say to towards its the in lot secure very category I'd feeling of in over imaging So we with in time. the talked and in just to right remains when was talked leadership August remarks, competitive it translational, you dynamic how is for the NanoString we develops prepared

And apologize then really and your for commercial great. year? sorry, to have Whole global full -- notes there Brad, and at X missed sites. this I least was I if launch that I Is the Atlas, my in But any On expand plan before accessing remarks. planned this think the launch last I XXXX. prepared in Transcriptome one, next

question heard service. I asking if Doug, Transcriptome as availability So you're properly, the about a your Atlas Whole

be So clear, our only Program. the Whole right Technology now, to Transcriptome Access through Atlas, is available

sending GeoMx in be and Transcriptome in priority People but will who the nCounter-based we're shipping program Whole sites a is to the their -- global back the running here Atlas, protein everything Whole we've readouts, us the results Transcriptome we Cancer site people by added. are So those to interest the them. for have the readouts, Atlas. in interested There's done samples The and and X it. of Seattle, Atlas lot Transcriptome

customers. its Whole out Atlas, Transcriptome just really we an probably as availability run product those of plan and ship global of until enabled we launch. can to hold We'll yet to keep that haven't assay don't the that ahead to We Seattle

Peterson And with our Tycho from next JPMorgan. question comes

previously systems a quarter install you about GeoMx. Brad, to on capacity talked XX

this XX quarter. You did

just to maybe go? in installation you what's where the think step-up talk capacity led can do and that So then can you to

the for investing question, Thanks GeoMx. been Yes. hiring for support of engineers service additional Tycho. growing and We've order flow and field from anticipation demand an in

precautions safety ability it and the and on access. customers' at QX around own to install has and accept our more all about for then in by So ability that, to systems it's I'd and been of with we more to limited been health our GeoMx less last, and had the to employees' been for train, are capacity our But our invite about manpower that. say, revenue in recognize our and lab Really, will terms QX, people the COVID-XX We'll do in have state required our the match of our more -- revenue By whatever is a systems the of with most through GeoMx backlog flow year think guidance during or exit least terms at up where caught order in we worked by at exit we guidance, and I had kind accumulated prepared less XXXX. are our slight of and Yes. backlog. we systems quarter, GeoMx we'll pace that of recognition. install manpower to fourth end now to the

at same So puts to that that systems pace as year. we think us install basically on the orders pace of accept next

hiring constraint a We've constraint, about don't think anymore. eliminate or as that it, I to meaningful made So that the reduce rather.

updated then on us readout with NGS And the provide maybe scale some you could up. thoughts

you readout. NGS orders half those think that How tied of You and talked being do quarter kind leverage quickly this technology can up? about installed access scale XX base of to orders the of some and you

course, think exciting base want a simply I already this people of tremendous of on are proteins our every limited I expanded to And that will there, see NGS whole the use capability mean, to addition of based would -- incredibly expect set readout. systems the be the the That including will as next the NGS assay, which consumable coming and and we would addition the to I orders an year. that launch of Well, out capabilities, announced XXXX morning, transcriptome the be majority installed year, XXXX, in I year true be about from of who expect next beyond. I GeoMx that's

incremental demand to So remain robust while -- seeing readout, will the to do nCounter processing sample customers are of most NGS with the and will think readout demand readout. able on side. look in forward terms growth And we really I using come what pull-through NGS

a number those Cancer pleased Transcriptome start probably quarter. past, what even customers. pull-through larger the It to than As from consumable very was more of exciting say we've is, in were first discussed that you and the a customers I'll customers. came It's many to Atlas us some is for times the those pretty but third early declare potential too strong with nCounter readout in orders the of

of also that initially lab. a see to acquired we'll phenomenon we customers same interesting the in nCounter many sequencer who about Another GeoMx talk for readout the didn't have our remarks our is, prepared access in

to use many in we've NGS they NGS advantage the drive take even though readout enabled in of to readout, come be to and others. NGS us readout, the able experiments, some that Now they those to want are customers nCounter plex on higher asking them may how train of than on

a so I the for demand Atlas it that think Cancer where early markets, installed Transcriptome -- And even base was in the on. our translational shows strong just

what on hard bullish us, is that quantitative potential at it's for me be this for about going but So to time. NGS I'm very readout very to the be overall

And Okay. then last That's me. helpful. one for

could Just use offering. to talk recent proceeds from curious if you of the

a did what in was needed. I had back March you the convert view think you there that when you

just use cash incremental where all it look going there flow, do M&A? potentially to is if externally, some for eye Or curious I'm commercial about So you is to you're an could scale talk the up?

an biology debt a Yes. company. provide in we always capital become underappreciated capital didn't feel it in now to opportunity. into spatial million-plus really current, revenue. to -- breakeven enough us grow and The spring what enormous and convertible strategic we're We've $XXX did service financing what being investments incremental did said was make in the for at But provide that is we product to back

this we as think potential of really work incremental being to So in capital X areas. put

markets, direct momentum or markets as by commercial instance, went have work and better to go direct own. Japan, with in we our Capitalizing additional is major probably such can still discovery adding we choosing we in The where in on sales for investment. by China do if on reps distributors, the there the finally we first where

Category that's investments. X, commercial So investment. pipeline would X be category

with that I to December and options. continued on haven't that's course, those leads external platform a us. in And more X, as of And balance talk We have with about a companies in leader pursue large spatial have And our biology, here fully technology excited host then, happening capital partnerships strategic the to that the and of happen some we acquisitions products the track one strongly we to or excited those those up by licenses or organically, everything sheet, resonate and will cooked as map are position we should here we're revealed of on beyond small. to the of or capital road yet that pursue think in we're GeoMx. increased innovations do people innovation be will that in a

the build we opportunity inorganic and the that this to to clear in right So we be do certainly, position growth to not time here were clear, did and in leadership we'll financing, add a our extend hurry at want and spatial we're if we arises. about on the inorganically biology, but

And next Brennan Dan UBS. with question our comes from

the opportunities into a look that had talked on in us Great. you more Maybe, kind towards if kind remarks. publication, beyond pace out TAP? could Brad, number the kind just I of of torrid of XXXX? we funnel, but the about of customers know else the the insight Any prepared color you that just give some torrid what pace will, you during a beyond might go

conferences we we've by at on in have other really more like we've small the September, collaboration one success own, virtual ourselves pulled marketing completed done Dan, and continue, to our held Well, both both conferences and some really that with together with approaches, events recently, we like major Illumina. ASHG, in recently our that great spatial biology

unique sequencing from them leads Just marketing week. into Those every flow Illumina jointly we've added capabilities XX about taking talk be and the just example, grows unprecedented X,XXX an have They can have with turned to that events of out to And be leads. continue about to to Illumina generating bring. and new popular. us it allow qualified GeoMx that funnel, the our held now events jointly, really about sales the qualified organization we our and lineup single the

and people's said, our systems top utilization are going -- while of a biology think, on to the down search we're the their in looking and capability people's still they customers spatial as to when is back and lot pandemic going of So the I of shopping they a certainly the and forward. in list labs, apply as had to acquire springtime, back slowed the I future, get want

month in have really we a sales lot and single week our genomic of So growth model. every

that a think grants in the academic can sense then Is any about bit customer came the Can a then basis, by many look color you standpoint, not or little thinking terms And discuss in any you just from outlook on orders from Okay. about And of opportunity? about spatial terms for how prioritization spatial? NIH you of is 'XX or -- an something maybe as a give ahead in type? funding as from about funding funding. that 'XX potential the new top-down us recent as you where

Yes.

It's CRO, like. Cancer and looks of largely that's good in have been It's representative our of side Dan. a been orders Transcriptome cancer biopharma is same, the of our geographic nCounter of probably first XX% what NGS our coming or discovery a the So recently, from the discovery because where side been and XX% been terms business it's Atlas. assay academic, for researchers split translational more on either

in terms on getting of add next incremental or be incremental year, demand So single attention the bolt and to as I modality get more is cell-based want insights that genomics. more think of to spatial a their going to top their people

think things papers. looking going be or I be in it for be viewers pure that to will to going are editors -- are

be wave to early in had I new success to customers a high-profile getting customers. is our the that publications tremendous of inspiring additional have think going

-- we in feel field. that by could biological son most President-elect, we've right? far think his is years. XXXX cancer don't President era always had I started up amount as and to a Joe area will of several for Biden the of coming a public had, positioned be be positive lost has years -- on I program, the I over bipartisan health while be forget support, effort last tremendous Look, investment field connected a by encouraged our And funding really really cancer, how science science good ever spatial who anybody a in the in started several Moonshot So on most will who's about investment in of also the the connected next spent mean I'm that biology. to

encouraged that. So by I'm

maybe the know one and maybe kind discuss then I guess, just can on you of I more. some GeoMx CTA describe pull-through would about in kind some what are you're Is us just to to outcomes on a range anything give seeing? go of strength, of customers. kind users the But brought GeoMx it a a pull-through? flavor that the range of it's of that where of using that Is kind since too to. up possible like And terms there early of of of heavy

first that, that's being to that's a even good of Transcriptome don't to X means say least There's But too to of by I and a terms I was give those large are not would it one range, by X-figure we quarter initiated of at -- you in the early I study typical. And get Cancer enthusiastic about this think thinking adopter, represent a assay. few biology is our that the side but positive have customers third order encouraging. good, Atlas any really will access. a during of people that does with about scale represent customers

with Instructions]. comes Morgan Savant Stanley. And from Tejas our next question [Operator

of which going as a forward? this should good. it both how question Brad, this to quarter. just So and installs in of catch-up you sort demand, ship instrument you all of a XQ? help just you on was of terms nCounter and this if able us think look Obviously, Or quick weren't for orders much GeoMx baseline through Can will, one just think number, in we you was organic

the you backlog tell I'll the bunch of was Tejas. been accumulated a instrument had revenue second that quarter. not QX Yes, shipping during

is, ship was answer in -- was I'd exiting the it entering QX, question same. is and -- say a in did no. the receive a probably of recognized we if did and about we to the then quarter your we of bunch host orders failed reasons for QX that backlog So whole

is in seeing current demand. you're what QX So

instruments. So the current for it rate in is business run the the natural best measure terms we of what of have is

And Hutch. road? following how comment. think on color, up clinical opportunity Got on And a little then, AMP with Brad, about more even morning, you mean, sort cancer launch use the the down the bit specific, it your make protein highlighted of helpful. it. for the I you this That's of some a your case you just share GeoMx at assays Can to prostate in

applications. mean you with when And you time? sorts nCounter? clinical go expect But prime platform the to make that for ready And I sense someone to yourself? GeoMx of would what the like that for for partner you clearly, so those be before time remains is comes, done Or will should we did after segment

go area Tejas, it's whether focused today thing. early those they most or And they assays what their -- into and pathologist all the The case more the that immunohistochemistry. to build run do: be a also a because for they think they doing in slices of fit a -- But knowing or methods making allow users than partner. XX-plex use that try. to potential like novel we're be there in large assay in were to different clinical would allowing the GeoMx in we'll would for single first number assays Not to most really is clinical on at assays case in a do obvious assays. run run customers realm a protein-based clinic. run why What tissue-limited, useful a be of our That's diagnostic or to translate are traditional very will would that normally either GeoMx sequentially we the early obvious to where immunohistochemistry assay. choose on single not I our some translational the run immunohistochemistry exactly days of see alone diagnostic all will

could that on. come the that of immuno-oncology benefit type field papers instance, biomarkers were Some certain on exactly what showed from knowing for of expressed out GeoMx, predictive came the cell incremental in first

who from predictive responded was more expression on Rimm overall David of to terms instance, for So immunotherapies. Yale PD-LX macrophages than showed certain in expression PD-LX

out working ever that in developed medical diagnostic we installed of -- And and there, try to to have well. content. build for would vitro from to start for role about in version host years system, we expect what base develop, to novel seen. at then by and we'll whole test. diagnostic and want remains whether of possibility centers come we our laboratory our to a And assays play there's as with take a centers to the several the there an And to discovery I be innovation be we'll those disturb academic companies So next strategy as rather, a biopharmaceutical

your helpful. That's of apologies Got out a if in but informatics us collaboration now? Access still ahead it. Or could give already in earlier, customers you Access, using that Early with missed you? Illumina? for quick DRAGEN then this any biology? on Is who is And if I update spatial from that And just Early it's feedback are

partnership going through be go to Early QX. and that I in weeks it's to as into continues more Access the we we'll months And believe move to Yes, well. have that going on say ahead.

the too little between to a yes, collaboration terms a is enthusiastic. feedback to Tejas. we give companies, early help of me this create in streamlined to actual we're continue on But customer it's So that, X confident you workflow, feel the going for

call, can you day. website conference In much XXXXXXX. any to dial-in the be The want a replay dial XXX-XXX-XXXX. the of for next be you everybody, and the replay, for is the meantime, With a on dialers International Thanks, both should your dial the us -- same: can will very have our XXX-XXX-XXXX. There great today. ID for that, callers missed joining if part of domestic for you in thank up couple time, hours. if

And Thank participation. that for you your conference does call. conclude today's

now may disconnect. You