NanoString (NSTG) 28 Feb 232022 Q4 Earnings call transcript

Good afternoon. Thank you for attending today's NanoString Fourth Quarter and Fiscal Year 2022 Operating Results Call. My name is Porum and I’ll be your moderator for today’s call. All lines will remain muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]

to Investor conference Relations pleasure host to now Farrell, Doug of is pass over the our It NanoString. Mr. Farrell, please go ahead.

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

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

and instrument may impact and as statements future and well prospects future call, macroeconomic we flows, of product anticipated our make objectives, factors, our trends development about the addressable business and this recently are cash including status and factors. statements future orders, During markets, forward-looking, regarding for projections, financial expanding operating as success growth, future operating and the strategic and related focus of penetrating expectations offerings that results, and current

SEC Forward-looking to in statements are subject our and uncertainties, described those including filings. risks

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

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

also each measure in such find non-GAAP measures, press limitations, using for as GAAP can reconciliations You to description, this of rationale well as and the release. afternoon's

that everyone Healthcare adjusted the be home models, that measures in or we'll financial their of investors analysts in we posted of Relations aid To Conference information participating Cowen to I'd and like other presentation selected our include the page building tab remind data. panel exhibits have the to the that our and Investor a non-GAAP fireside under on afternoon financial week next to opportunity discovery addition include speak with a many and Generative look based also will March forward participants having in of We you be Medicine. on NVIDIA AI genomics participating Tuesday in will drug from then. corporate discussion and focused our Brad to in

would the like over And to to call I turn Brad.

you Thanks, thank and Doug. Good joining afternoon us for today.

with of believe in the currently portfolio to solutions, that's thrilled spatial and spatial compelling offers are biology ongoing NanoString biology the extend researchers the innovations will most we We market. lead. that our continue building momentum

we are As spatial XXXX, priorities poised as and we market. demand before revenue that mix XXXX. and backlog cell fourth growth. biology XXXX imagers XXXX and fiscal single was of believe for both begin I'll we our of enjoyed strong substantial outlining the expanded recapping arrival by transition growing for within both year begin highlights our and from quarter some a demand the for year in shift a

Spatial our of XX% biology best-in-class this to orders to who Digital our Imagers, biology. XX% about researchers spatial Spatial GeoMx broadened base Profiler. Molecular CosMx the year-on-year XXX approximately allowed oncology single capitalize who our cell CosMx core discovery from by With and NanoString. in total beyond are reaching past, we orders customers has to the our us able our researchers, to we've who've on grew process, across new This customer we served trend were the embraced systems instrument and In CosMx generate

strong. particularly the Our finish to year was

captured shipments. a $XX XXX CosMx build and QX, we the first During we for ship had began instruments CosMx generated year-end, spatial backlog valued orders delivering At orders the million. around and for than commercial at XXX more SIP revenue – approximately instruments

Nature featured a gracing of cell XXXX surpassed protein papers single cover. scientific as tremendous Biotechnology spatial and image issue in December platforms. high momentum technologies CosMx with biology enabled by our we saw of We from X,XXX approximately XXX also was RNA including our peer-reviewed using that CosMx the journal's resolution

by Magazine research innovations XX top to in highlighting the understanding. advance that annual and of survey their revolutionize scientific one as The products poised our recognized Scientist also was are CosMx

more mainstream highlighted article to platforms Alzheimer's GeoMx Center Wake in Forest both an research high also from the perform brain January which which biology spatial media, University mapping Our issue as reached Medical Geographic, aging, of tissue. of and using on National CosMx revolution contained

us XXXX, early in we convinced leading our began markets. As spatial innovation we're advantage, the of engine, position and our product our the that scalability mover biology technologies a put in

to outline provide of an the I'd strategic ahead. like for our objectives Now year

is infancy. only XXXX research its the method the billion across market. X% market biology for biology labs, objective have is valued that has spatial first been X,XXX of addressable alone still the the year in field Spatial of which was date. penetrate penetrated ago, We two and to estimate nature's biology at to Our just in rapidly years spatial $X

focus Biology representing in Genome the market is Advances roadmap XXXX kicked Congress, total the We year or prominently off on our at XX% portfolio presentations biology share this AGBT. Our featured as important but and in of develops, instrument on and updates orders Spatial AGBT winning about spatial our biology this successful. customers product capturing posters. making Technology providing at by and

the nearest which NanoString meeting, in We the discovery capitalized the know our NanoString. most basic showing. studies to competitor. the are could almost spatial for row provider, pleased who in with any of sponsor I year had AGBT researchers, more and perfect be brand be of abstracts to provides second getting doubled spatial not opportunity biology this build our to venue gold with on the of number still technology year's a For a our

spatial attendees NanoString published company. exciting most space mentioned conclusion a with the of that consulting most firm Following the of the the DeciBio rated biology at meeting, survey

meeting, three we the key achieved During objectives.

appreciate was open wait and scalable extremely Spatial for interest ordered infrastructure. to cost a system to also provided focus building get source of positive. AtoMx of customers our biology hands the in AtoMx AtoMx. headaches of compute provides Those and already avoid Platform. high, AtoMx is them CosMx storage Think scalable own we platform cannot demos provides total conducted onsite maintaining who cloud the AtoMx plus and cloud-based an capabilities science Feedback that Researchers allows making for ecosystem. one. extremely analysis the flexible, researchers. meeting. of of publicly CosMx the data upfront have a this have the the we Informatics the to their and spatial highly biology of decision First, is from on fraction solution spatial on their the and Customer move during power demonstrated storage and compute AtoMx NanoString's a dozens secure iCloud AtoMx informatics the easy to that by storage

our assay class roadmap, will a from Plex amount plex. describe samples. can is number continue to We the determines to the directly of generated unveil believe or Second, it imager the the standard that platform to which the is set as unique AGBT proteins CosMx we plex genes the used used spatial critical for analyze. information most differentiator precious term of in

Our our stands higher we manufacturers. assay, CosMx XXXX cheaper as belief plex that plex assay. offered head Plex plex our per sample with assays currently plexed technology our by twice is our The have the available every for customers is plex XXX competition amount imagers in world the and turnaround customer single choice CosMx as attribute number from and XXXX when grounded assay of offering access already other the using the shoulders real above experience our between opted time or faster the one program, data provided

sample data data we plex which per we're our from and provides AGBT, some than by pushing experiment. platforms. revealed the assay, faster not As expected. RNA were showed XXx X,XXX these provided small To competing an of proof-of-concept clear, human further scaled We anyone be plex that

We at with AGBT X,XXX-plex those two to assay data. presenting use will hand multiple real have research insights. and this discussing worked Then customers to customers of generate their

Our in through is make plan product begin already and development fourth the access year. early to and X,XXX-plex in offering shipping next our it quarter customers available we program technology to to it full

SAHA. Finally, described Chris of the we selected and abstract called opening collaboration used during others Cornell [indiscernible] was AGBT AGBT. Human night Mason Anatomy or highlight new Atlas Weill The an the at Spatial Dr. to SAHA with the the of School of Medicine meeting for exciting

at XX population analyze adults. that a the researchers to to to diverse available Atlas will described, become of make normal crucial Cornell use periodic believe from important therapeutic releases, SAHA around will an tissue reference assay researchers GeoMx from database genetically of transcriptome we Mason enabling organs medicine and approaches. the and may plan healthy world researchers by whole Dr. through The be provided precision tissues different As the which that

CosMx Coming cell clear imaging. the is for out to the of attributes has of us single choice remain AGBT that platform to performance

never confidence the Our spatial penetrate been biology our has in to ability market higher. rapidly

of course is XXXX. to more deliver Our growth second revenue predictable the over objective

In systems instrument to up revenue. CosMx different between a GeoMx resulting in to the year. XXXX, set very demand we is our of struggle mix believe We biology predict be inconsistent and that XXXX spatial

First, recognizing on we're instruments. biology shipping both and spatial revenue

overall the mix. less to revenue be So sensitive will

already Second, instrument are we currently to and revenue we've our expect captured driver that backlog. primary be orders which growth in CosMx

revenue manageable rollout CosMx We'll confidence installs and year. with of balance in remaining XXXX. shipments in us scale a relatively customer and number This and QX, up instrument the at provide pace QX, steady increasing gives in the We growth plan predictability training. then manufacturing of of a of to execute degree the installations a to excellent start experience meter we designed of our over during pace as a high the

knows is demonstrate and our strategic break team towards cash continued This the it. is directive a third Our even. objective everyone progress company on for to prime

cost During about headcount QX, our to XXXX. structure We XXX employees hard to into employees. our XXX about we optimize heading choices made reduced from

we the lowering and break XXXX are the than to guiding substantial loss sustain expecting the exit year, we cash improvement we're our adjusted throughout financial quarter-by-quarter believe with deliver net in XXXX, to are year. We profitable which And and while expenses, an that $XXX resources operating growth. these and hand, to improving in XX% of positioned to For range modestly profile XX%, million our of for equivalents. a more growth our even driving revenue in operations well with

like over to results turn to our review year. financial of provide now to Tom the and call to financial the for I'd our the outlook details

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

above spatial revenue was quarter XXXX, in the million $XX.X the range. biology was guidance spatial range. upper QX of our revenue $XX.X revenue end middle of our million guidance of For fourth the

SMI of was orders XX including cumulative approximately order XXX as new QX. book in December XX about systems, CosMx received Our

customers the shipped to $XX systems expect QX revenue a leaving over we us systems approximately a million. with value to of XX XXX first approximately XXXX generating We ship revenue in of CosMx in million, backlog $X

was instrument systems quarter. $X At about $XX,XXX million, over revenue during reflecting about million, XX% $XX.X $X.X was new instruments our million was revenue installed pull-through GeoMx XX was annualized QX and with QX, XX QX instruments GeoMx of a Consumables revenue system. base improvement. end per installed the sequential XXX was GeoMx the GeoMx shipped. approximately

revenue, nCounter quarter. end million nCounter million. all was QX, service consumables per was instrument $XX.X approximately XX nCounter instruments and instruments installed nCounter includes the system. revenue At base which $XX.X was was end QX about with $XX,XXX annualized was of approximately $X.X installed revenue pull-through the QX our million, of X,XXX during

and adjusted reflects expenses. expenses. and margins which and certain compensation, results, depreciation, stock-based to of QX Turning the for non-recurring or exclude non-GAAP restructuring litigation, impact Commentary severance

press posted on how we webpage adjusted or our detailed our as non-GAAP have our the information refer are investor release for measures to exhibits as prepared. Please relations well to

XX%. was margin gross adjusted QX

manufacturing balance labor we Our QX workforce. QX mainly gross [ph] our reduction under with together absorb to was the the adjusted by impacted our due expensed was held margin sheet in variance on

goods Inclusion by of cost about percentage charges QX, impacted these points. additional margin sold QX of gross our adjusted eight in

QX $XX.X expense of and adjusted expense X% $XX million, decrease an of R&D SG&A X% a was year-over-year increase was million, adjusted year-over-year.

reductions expense commercial reflect and and we balanced development our spatial initiatives. we impact operating initial efficiencies trends QX, field in biology adjusted by in to continue the manufacturing spatial support capacity in make investments expense our of QX product implemented biology

XXXX investments. of million short-term million and cash, revenue XX% XX%. million, to we the $XXX approximately Our to representing of $XX.X $XXX.X we our with QX million XXXX of expect outlook, cash loss to equivalents EBITDA $XXX quarter annual Transitioning growth was and exited adjusted

$XXX million, than Our revenue range includes doubling to more spatial $XX of compared XXXX. our biology revenue million as a to spatial of

to other be of expected X% includes decline all $XX and in range. at revenue, is which million the a the revenue of nCounter to range $XX million, midpoint the service

business our of part mature more [indiscernible]. this cow As into cash moved

to about expect be the We revenue half total and about half. XX% of recorded the in of XX% XXXX first second in

as steadily install increase of pace the CosMx which will be we manufacture Seasonality will of and year over influenced strongly increase our CosMx the by to instruments. course shipments, the capacity

backlog fourth by over XXX clear units order the to of quarter. expect We current a

expect a to second significant grows from the base. XXXX $XX half $XX a our expense million to improvement range to XXXX of adjusted biology the compared revenue substantively loss reduced as We operating spatial EBITDA in on more million, year

XXXX pull We expect systems instruments in CosMx through temporarily higher lower adjusted beyond as shifts as be gross our XXXX towards revenue in begin to margins will and these before mix consumables. margin improving

of of shipments. measured will $XX in first and expect quarter reflecting range revenue and pacing the we XXXX, $XX patterns typical sequential CosMx For of million be seasonal to the our million,

includes $XX of of million service nCounter and to $XX million revenue spatial range million and to QX $XX Our $XX revenue. biology million

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

as our spatial order excellent At trajectory CosMx is a leading closing, year year. end, In million, $XX great for approximately Tom. valued to had our and [ph]. revenue a limiter we established backlog for about of we us market in Thanks, our spatial Momentum CosMx giving we’ve business building the setup visibility XXXX. feel

expect we growth generate flow XXXX, operating breakeven. which expenses, a achieving For us to to in towards will work healthy fashion cash while disciplined allow reducing revenue

love to now for line your questions. With that, the I open

now the Instructions] of your Dan, question Brennan is Dan Cowen. with line comes Our [Operator from line first open.

Hi, good taking Thanks questions. to I nCounter start the quickly. wanted with Kyle on for afternoon. is Dan. just This really for

and I where customer this the we think could driver baked about number So year? or come of this what a this higher of lower but isn't the here, here sort sort should trends into really maybe from guide a what puts growth are perspective? in know takes

start on my I'll I'll Brad. is answer. this Tom and Hi, let build

mode as business a about business instrumentation. is really operations. cow So you a that's a nCounter know, Kyle, XX% It's is consumables mature that of cash moved about XX% into and

of nCounter the effort in we have offset consumables primary focus sales most in and some which the our instrument being maintaining for guided down installed activity year. service is for revenue. down base, X%, portion about about service said, nCounter That We've total inclusive focuses includes by XX% of – on down revenue high levels on of guided our of nCounter. of consumable and So existing the really our growth down aggregate being

to being said, this upside. our of for the nCounter say a to driver the looking not appropriately future, would are stage is business I of and opportunity see risk for we at is business the the limited given this downside be to So in there and guide stage growth either. think we surprise probably conservative don't That lot we a

on raise and you're the throughout EBITDA fund to the business Got burn, anticipate years we should about think you given it. moving here that burn? adjusted do year? – here? so few that And next cash Is to in the burn for the And needing the How targeting cash trend how's do plan year. you then to how maybe, this capital

on but proxy to over I half puts the the good having year, that into do no, using in be capital position particular and for takes a you the over say will the operating base to anticipate a EBITDA a I raise. that the expenses. a place burn, Yes, the to burn as great flow to capital start plus cash think And have flat want would Kyle, see back CosMx the in point, would as would being ramp shipments, improvement on it of guide don't on we a cash cash raise be put EBITDA statement, the of a

should be be to business on the a As into intend over spatial base balance resources. for dialed deal growth it we to existing put should is what expense get support an business the subsequent in to now in our us years, – that position you able look we breakeven biology to over is our cash that out sheet flow

don't we another raise business. of to fund growth So needing to anticipate the the do

it. Got Thank you.

open. line question Dan, next is Our your the now Stifel. Arias with line of comes from Dan

about do and for levels and revenue Brad talk Tom Thanks guys. work impact on the order can event Hi, can as about book to activity – guys or capabilities little higher continue just XXXX the to bit relatedly you year which constrained in here, what you manufacturing you and after questions a CosMx, at think you become the the the is all XXXX? being on incremental or think for you start production then ceiling which we placement recognition a an should here.

field take it now say and operating on Dan, Yes, wishes. train to up field we're he I'd this our is activate training right we're I'll instruments first our manufacture install, builds and let on how and Tom and stab we're to application scientists the a in scaling both phase service ability where CosMx Brad. a engineers if sites.

pace that the a at first Tom's consistent doing we're So quarter that's guide. with in measured and

prepared said ceiling my at remarks, to the pace a overall the we – spatial basically for in Implicit in the from you our QX pace double I expect in of asked and As that remain through to shipments the of kind QX the year. year. balance about reasonably steady instrument then

in that baking XXX implicit don't to think plus think in a guide recovery dial that's the GeoMx. to a up of the the is spatial demand into be I think we the mean of want position CosMx our we're if CosMx we're baking that to mix total as about but clear mixes. wide way – to which the if instrument XXX continues course trend. we're over placements, that And shipments different year, I guide year our not GeoMx of for range needed, I can I handle by I

It GeoMx number GeoMx. was that. like on on quarter. follow Obviously, looks than Okay. seven if just higher during the shipped point order instruments Maybe I could the up that you

what work about may trying for contributions feel your or that in you such And what may two? this assumption between So to be as the we with? I should CosMx what's understand the is year. you kind I on know driving mean, spread not GeoMx, point through the consumables you for that recovery in to of then have contribution the assuming GeoMx good the baked pull

guiding Yes, XXXX. spatial I think, we're overall through pull revenue. total not We're guiding for currently

– through we our think averages be look beyond not that won't we're you recovery in – be not to XXXX. – a pre pull and clear we're in but we commentary, at can building saw giving So the I

think On may the speak in We question it, – to of over the QX, question. I to shipped underestimated turn Dan. Tom have actually number instruments you we GeoMx that of I'll to it that

would about rec [indiscernible] at the the over look we you what and GeoMx shipped the GeoMx, XX%. we we of was an of shipped shipments but the revenue, and installed QX what about XX. always improvement number XX a rev instruments parsing Yes about terms the think installed during to Remember there's quarter for we between sequentially about Dan, difference in QX, quarter, by XX for was during and units about which

installs over same of the Do you shipments the stays between year? think the that and that spread course

varies we many how orders have quarter. of to backlog – installs during the when the the quarter upon in tend our what It end depending and quarter-to-quarter, come from Dan, the of at is

a we've orders separately QX. shipped typically a what happens. quarter, installed. quarter, have talk that's more That's that why rev sometimes those more and is in So a given both if in QX Then of catch have often backend you rec a we'd numbers can have about up we phenomenon versus loaded than installs we when

through those modeling, we on eye the So in those. have address you if keep out scripts. can our And we go those questions as for an

I'll hop Okay. Alright, out.

the quarter. be every always won't It same

I appreciate it. Thank you.

your from line the question with comes now line Kyle next of Kyle, Mikson is open. Our Canaccord.

year, congrats Doug, for and a of on weeks Thanks the guys. the few Hi, the good questions you seeing ago. Yes. and end

And think than like EBITDA, So that convert first coming with multipart – monetizing here cash secondly that Could like with cow. mean, of just loss – like cash How of – EBITDA. like current timing – being like offset balance. talking And financials that's the – maybe the Tom, that the just you in a Thanks. like $XX a of maybe was kind Brad, a year? thinking second think question cash cadence nCounter I actually walk I like just burn miles about forward. what were the million XXXX for on that mentioned like to kind million $XXX you through what $XX you overall? earlier the questions over look that's up convert are kind this could half the above maybe you of about – for going I think more the that could business got half, you to of there? the like like million in you clearly about

Yes, the Kyle. so of I'll start pacing with EBITDA,

we that about the in to half. half think, XX% the this second in I and of So, about simple is way revenue think first talked XX%

over addressing I sets If that That gross won't from driving in you really respect OpEx spatial about trajectory the we're pretty over with our of in see particular over of pattern convertible look and improvement of vary the revenue a lot a the that on good second percent say to expect improvement business us half. XXXX business that strong good to EBITDA then would with compared – of our lower with really seeing to what would operating convert, the get down the margin that put the year as kind – you here respect put think the XX-ish the doubling first XXXX. like of quarter-to-quarter. debt, proxy simply our to the course a in the expenses up nicely would most growth year-over-year, growth half And convert, for with

a we've all setup, for two to that still addressing maturity. of before our for really menu a potential got got years we've general. available – And financing go and also as convert So the we in options broad of result business

convert address business any So great we'll and Brad and I'll add. thoughtful to have to heading results to mature a the opportunity our urgency. the need into let have deliver for We'll

about I'll nCounter's Yes. place within kind of question take strategy. Hi, NanoString the Kyle.

cow amount a spatial allows structure course and on – entertain It favorable that pay tremendous low to opportunity of a to And still company. was that's it right that it give of base effort of or business. to us value cash being right. we nCounter to installed a sales if that – is that has that real in amazing the base. used set is that You're historically always up. relatively of that reinvest provides kind it along That in to but someone business, no longer growing installed said, was our brand. doesn't the NanoString growth rapidly the It value low be an that provide it provides the well, of be, to came strategic business revenue has a driver It's with shareholders. does platform our also been growth. willing it huge portion flow would as tremendous synonymous customer that strategic of we with a with the it relationships and to It cash would would go have kind

was CosMx how obviously lot purchasing these buying of Okay. for of yes, spatial, I like customers Are with entities customers lot instruments Like those are bundles NanoString imagers, GeoMx kind sticking just those those than but thinking are much. of of together, past. That like Thanks trending skipping to GeoMx said and so out there's customers, or And, those promotions? in how many customers' of of imagers? one to competing there, as spatial more most away customers are there the don't with is, How lately? going a XXX great about you you you getting kind cell other guess, doing was that a just CosMx to of other incentivize transitioning to many that single stick units guys. what – I the are probably guys there's know all

designed really a our it's Kyle. think portfolio great a customers. transcriptome That's really to our across to question, incredibly strong, think and is that The product we've other deliver created high We that that how system about synergy that's researchers really synergy each Yes, And is compare systems we multi-cellular have samples we we three two between which about GeoMx, regions whole platforms, questions right? our ask allows to have throughput single is sort all to Informatics studies a platform, AtoMx in our set samples, allows of get the throughput. have data familiar cell put our CosMx, query together, to a which out use tie which lower and those same set Spatial interfaces and repository to to we small imager. those of the sets. their and people the And studying plexed deeper of of data a of highest most then

science. So we two whichever urgent the their instruments sort of – people fitting really their do to of most encourage most purchase is with

our bundles, who we of as both early of previous with that's then our in be same treat And GeoMx would mean, incentivize grow XX systems think a price extent CosMx platform XX of experience the bundle Probably XX% owners, and that XX%, that any large that the another revenue. NanoString meaningful NanoString them don't absolutely the as things. believe the to CosMx suggests of customer. GeoMx. orders have also impact We of those future. breaks To gone new I we the really at are positive and time. they we that I had customers, the all They're working. bought laboratories other in their our capabilities, they'll XX% XX% inclined to to purchase is modest give

science from that selling CosMx trending, or predominantly of been single in that cell researchers from the XXXX, ownership a not participated biology course over being new it's through reaching how predominantly NanoString to to of terms system of imager an though, we a customers were to was the we who GeoMx types were that In coming went already NanoString have who yet. other knew of

to of GeoMx then the CosMx down into do undermine will to in profile. go first customers and continue as system bought systems okay. first That between spatial and it systems our come CosMx to the expect GeoMx adopt. doesn’t fraction synergy going And to any I So transcriptome hope would many the way we becomes won whole sell to Labs that’s and and that later course who the choose those back

Okay. Makes sense.

jump. Now, one quick ask one let me I before just

So XXX a customer using there’s been over projects CosMx. delivered

units think respect so I were of to there, projects, disability of currently sort have these Any lot the those the a you platform like of takeaways the of tangible anything TAP program. like in kind XX the those far? field with out

speak, Yes, both first great first. had Maybe the from learnings and I TAP systems. I’ll think we’ve XX speak the the TAP to

learnings I’d the in program spec the TAP mentioned huge the just very been from we offering been XX and the researcher for It of in it plex of important continue RNA a [indiscernible] be single validates for high-plex of compatibility had that CosMx is to two in. generalizable that our and market offering. my has strongly initially offering. TAP X,XXX-plex preference learning and prepared the studied TAP to has the with most a instrument. different a shown XXX-plex making opted of had tumors launched broad that remarks. is XXX-plex really a offerings, strategy of Not be leaders tissue used say other CosMx types We big One the tremendously I tissue

feedback first instruments towards great XX Switching getting customers. those with QX, and in we we the that are shipped success that gears first

North spread of They Asia. academic NanoString our business. to Their a the good terms pharma. Europe new them customers, XX% as XX% Yes, oncology geographic were those and XX%, America, sorry, customers. systems, There about most of of oriented similar in spanned customers, mix were to as XX% incumbent I’m researchers. Just was well overall new mix and of

nicely they’re representative. So

optimistic load to functionality but have AtoMx and in. CosMx And of their lined CosMx built and use feedback own the They’re trained on find groups analysis instrument, beyond own flexible. moving the to And data experiments into also people the on of system, up. think they have modules the we’ve positive people beginning from feedback easier that built results modules and sort relative quality really also we through runs the samples. the open that they’re enjoying and They easier and They’re it’s to ease I great own that these their to get AtoMx. the even analysis them and we those easier on use because been source and I’m CosMx on of to obvious. that love to We’ve data experimentation. started GeoMx, phase who saw utilization There’s even on. of an using geos faster some the on has experimental it’s GeoMx, than designs will use of into been data And the the science consistency comprehensive ramp love the feedback and more across initially system training get are

really All take great. Thanks guys. Thanks, It’s good. I Brad. Okay. away.

Thank you, Kyle.

line next question Our the line of now [indiscernible] Martha, Martha from open. comes from JPMorgan. your is

Hello. for taking Thanks question. the

first quarter provide more. you discussed more bit revenue little and just the to to bit So little a a perhaps dig I color expectations? on We into wanted placements EBITDA Could expectations. the cash instrument from

Yes.

fourth on have with of to the consistent that year For spatial are the first made the being and for the this consistent we rest historically components nCounter that’s that. the with of the approach just quarter cash the guide the guidance And the spatial simplify details, guided revenue the revenue. out guide And revenue, was that guide elected we total of for a have almost we material CosMx only gave all being just coming more and for our the to around the impactful quarter, we’ve really measured pacing and the what instruments the year. to of relative most cow basis overall on quarter, commentary and managed thing

as [indiscernible] one earlier made remarks, to think more EBITDA our largest financial it year the Tom’s business the loss. goes And thing meaning shipments on quarter perspective, our add lowest course from I think on. will profile. the and improving more QX the as with in grows clear EBITDA that EBITDA see he CosMx year, improve I be we’ll sequentially will over an is more sequentially of that

you. Thank

from of your line Our next question comes UBS. is line open. the John, Sourbeer John now with

that questions. just off any formed how on you throughout Maybe the quarter and taking start updates the year? do Hi, the to that how China thanks for expect recover and just

time. are can for were obviously in to this meeting quarter, and we’ll really continued year a on I at direct not a month. given that very throughout lackluster fabulous we But for to about recovery actually growth X% first built remains said, and historically, small company. China recovery it’ll a and as lockdowns grow earlier see and Yes, commercial over – some energized lockdowns to are NanoString The started between person maybe a in They I driver time met global last happen. major being sales XX% counting part we’re that the relatively a team say China the very just see recovery a as We profile, optimistic year. impressive hope had of the overall But the fourth in revenue XXXX. China, in get out. team We overall that NanoString’s all China the

And CosMx. know out instruments any have you’re on I pull-through you but guidance, that it. providing Got just not now there the color the

there towards a we how you annualized range? that how from Just level of that ramping get to high think to see XX,XXX pull-through XX,XXX targeted

enough I Yes, in GeoMx, to as requires efficiently. annualized learned morphology are talked guess There’s and what say that learned I able we don’t about of which cycles regions their samples I we’ve are. to a of long publicly ones know I on define But XX,XXX the to certain our to days. and learning previous think amount a customers think is, CosMx be interest we’ve quickly will right there. experience process whether it’s a no estimates update book The not. early

the a learning that the lot step skipping from CosMx early to some entirety It’s not a allowing multi-year looking trading and is few instruments curve quarters get required that researchers that of to But in full have will cycle utilization. GeoMx is slide, at to clear faster. my And instead. scan we by that cases we’ll of be the the hope a is

to So that stay on. the year more as be say goes about tuned. We’ll able

in my And guidance then on one around decline. last nCounter revenue the and end, that X% appreciate here

this over similar year-over-year do – declines years? we expect about should think prospect longer you of about the to next this anyway the over business, Just think couple long-term how the long the Or term?

now as actively to as base Yes, revenue, it’s the as base do entirety the down. probably some used inclusive not them John, systems that And continue across old, that come of of once ages, think nCounter years pull-through XX are were. seen likely installed are installed that being they we I instruments will base includes peak of have they installed inactivated the

what nCounter, long, look spatial sunset multi-year slow I more guide offset sort growth consistent than a it’s building with is in XXXX. yes, strong the you’re for for think So model, by much a side. of our if And on

the quarter. and Thanks for taking questions the congrats on

you. Thank

Thanks, John.

your Stanley. open. Our question from now the line next line comes Tejas, with is Savant of Tejas Morgan

guys. Hi, Thank on Edmund This you Tejas. my questions. for taking is

given your the the of talk terms XXXX, XXXX? instrument versus in for capturing discounts should bundling emphasis baked into how excuse assumptions the the all should for value guidance pricing for be and think, how CosMx Just thinking of on customers lifetime upfront our into the on baked we me, pricing customers assumptions larger revenues, about and we prices

throughout lower that assumed take our XXXX. instruments guide modestly I’ll one. We’ve ASPs on in Edmund. Sure,

other are given specs higher materially a with because products feel approach the currently, higher imaging and that GeoMx ASP the does as does to we have that and has there. have a then consistent not rest of list features that. that the with we And than But out So, appropriate. lower approach, it taken CosMx price like then we’ve the guidance a consistent conservative it’s

spatial. to could $XXX,XXX when to assumption XXXX, good I a So realized $XXX,XXX the instruments, to you’re if I all consistent would overall the just of mix what box think with spatial be looking that in it systems per wanted different you at would across that assume keep simple we ASPs think that you all be use for

add see the if to And your way of that conservatism, could $XXX on to million, of simply to That’s you of it. is framing the of Are based outlook? lot the here? Or or revenues materialize a the conservatism super in helpful. nCounter midpoint guide. your you’re on business GeoMx million just baking about you genuinely that gets business the you do of on CosMx headwinds XXXX backlog actually we the close either $XX which million, just note your potential Got $XXX XXXX pretty

this Yes, Edmund, surprises. I to year, is our think one key negative of goals avoid

our that this guidance with the so JPMorgan offered year expect. that the commentary and Conference what And should consistent we is folks approach earlier on with

expenses heading on feel line bottom on the currently good year, put that this both into the think that we this the our And into year. top coming approach So was is about we and line where that I year. used setup improvement into range the the this set with we in

comes And features Brad, and cell one your more color Could today that some my then or Is CosMx? a biology, segmentation are versus or board? I more comparing in of of researchers helpful, is just segmentation on are for you point noted you with your differentiation a customers it for it. the them Super cell lot on that conversations to methodologies think across based it you. have some guys Tom. of spatial less still how these Got approach when And provide important maybe your into you peers? similar And sub-optimal.

I Thank wondering the for pipeline you. development improving what just So this? in was had you

Thank astute you, and Edmund. That’s question. an impressively technical

competing approach segmentation used different cell that Our by imagers. is from

been on That’s the create by and segmentation. have focus to of morphology otherwise to accurate than that a algorithm of identifies AI have rollout machine the execute GeoMx markers using CosMx protein be We boundaries both the part possible. RNAs and identify actual more assignment cells the cell an to boundaries would learning big that a and enabled cell

the have catch innovation. neurons that tissue Cell nature. segmentation though for challenging. now cell to think of I quickly competitors is homogeneous despite different challenges It’s market and are are in working similar in Different very that we’re sure instance, up. segmentation. feature, very on very ongoing tissue, fact types I’m different an And right Brain morphologically leading is area

are think point continuing and broader cell leading algorithms to broader at serve a audience of time. we innovate I on But this we’re in to So researchers. market segmentation continue to

details, the you guys. Brad. very time Appreciate Great. for today, Thank much the

Edmund. Thanks,

This concludes remarks. for question-and-answer will final now I today’s our Doug call. back for Thank session you. pass any to

joining Thanks us today. everybody for

posted be hours. replay that of miss in next access should free XXX-XXX-XXXX. portion call, the to couple any a did Toll you the of If is

For international ID is The XXXXXX. XXX-XXX-XXXX. callers, use please conference

call. our you. So with that, concludes Thank this

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

disconnect may your You now line.