NanoString (NSTG) 3 May 232023 Q1 Earnings call transcript

Good afternoon and thank you for attending today’s NanoString First Quarter Operating Results Call. My name is Jason and I’ll be the moderator for today’s call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]

I would now like to pass the call over to our host, Doug Farrell.

operator. you, Thank Welcome everyone.

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

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

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

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

a measures, We are on release. prepared calculation selected press described in GAAP which the measures, as of have adjusted detail non-GAAP supplement financial

financial will call, all noted. measures this be otherwise GAAP Throughout unless

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

page meet I’d of Conference to month. then. data. forward To home and with under that financial and we measures remind We that include Jefferies the our aid models, next presentation to or our investors exhibits in adjusted the you Relations the a analysts have Financial other selected City of the to posted many opportunity in their building Investor Information non-GAAP having tab be of York everybody we’ll like New attending look

the Brad. call like over now to I’d to turn

demand revenue to joining us with Good afternoon revenue for to in and Spatial the both year-end off nCounter, manufacturing report We I’m today. provided capacity, our that Spatial of the strong our CosMx thank the and year. call. installation start. successful on and drove outlook we With up business is momentum the from Biology our XXXX you continued raising guidance scale Biology strong exceeding a excited and are for we

details updates call, progress strategic Before year. our these and to in provide objectives I’ll provides on improved financial the on for later our outlook Tom the results

objective first increase Our our of is market. for spatial penetration XXXX biology to the

across During quarter, and consumables. healthy the biology was both first demand spatial the instruments

of the Our base an ended biology we spatial with than prior over increased quarter the spatial of overall revenue of more last installed by year. over XX% about first XX% an increase XXX QX systems, year,

Spatial growth business. Our remains Imager primary CosMx Molecular the driver the of

As of we further of our cells market rollout plan. penetrate CosMx biology, is growing rapidly spatial single for tracking ahead the

the We and install used refining users. are systems our our application that ramping CosMx and processes and to manufacturing scientists engineers service field capacity train

orders came of accelerate our to led believe growing XX% shipments long-term. We the increased our which consumables, over from demand CosMx instrument company exceed engine strong XX% orders. are pace efforts customers CosMx will Even of customers in our About biopharma CosMx these shipments, the the of to backlog. increased QX, growth of uptake orders and CosMx system new of with about

competing currently which CosMx. biological RNAs neuroscience. targets of roadmap and up times as of Oncology by plex, number and is our the proteins, any to consumable followed immunology orders to the we We’ve XX scale that platform about unveiled In applications February, X,XXX referred offers. to more content our the drove by ability for image XX% XXX CosMx, than demonstrated

to CosMx the spatial and on-site customers an upfront a storage In Spatial the to been seamless fraction of capabilities, resonated in CosMx one. to and easy the imager. to provides advantage plex substantial making compute Our for cloud, AtoMx shipments, parallel cost believe up ramping our AtoMx Informatics connecting customers why remain market an as with important has scalable of we in highly factor leading will Platform. move a our decision power data we’ve

Customers not a to biology the are collaboratively spatial leverage and we’ve biology that does that cloud spatial generate. analyze the become the to experiments data and research informatics ensure bottleneck investment value to excited made sets massive

demand in remains base While increase instrument and QX, CosMx a GeoMx consumable GeoMx continued placements expanded revenue. meaningful drove installed heavy our in

over and scientists QX, that increase RNA from capability new capabilities proteins and which year. that parallel, enables of the improved the with we simultaneously active update that workflow recent software same from a to the speed trend The each an the customers became to they insights that updates sample. and releasing customers In GeoMx, sites on we’re measure appealing continue slide, consumable the helps see expect improve of including GeoMx that balance extract

novel published primary GeoMx cancer patients researchers cancer metastasized their Translational of liver. University the of clinically study of tumor cover identify colorectal a characterize use subgroup and journal that whose remain the latest with Team the illustrated the of associated by heterogeneity the subtypes grace evaluate relevant Glasgow paper users to researchers as cancer. has biomarkers GeoMx at study colorectal to the Research. and A to of ability demonstrated to GeoMx of Cancer

annual paper AACR recently scientific Research prominently featured Cancer authors Association where the We or agenda. biology with American that up this caught meeting the the spatial in of of

CosMx, over strong increase nearly and had for year. an abstracts prior GeoMx XX the showings customers than Our more of with XX%

funnel than our generation customer this in continued throughout prior the and visibility field. meeting Our are at leadership interactions and activity these outlook and like Customer providing interest dynamic booth year. our this buzzing AACR the was growth more year’s with doubled to over lead instrument and expanding

for the achieved spatial predictable QX is objective our second both during growth. to guidance this We goal Our revenue as exceeded revenue quarter. clearly and biology nCounter deliver for

base through through and to to with more with The in to In installed ability sequentially XXXX revenue balance our of consumable streams bodes which X,XXX predictable improve, revenue generated expectations. pull addition, by our instruments recurring line continuing of for and well year-on-year revenue is deliver visibility the than our beyond. consumable both

This end slowed. even high of results helped mix XX% that nCounter instrument guidance has placements more a business, consumables than above of our our the which revenue now deliver as

also grew backlog, instrument manufacturing incremental year. strong raise XXXX, CosMx and up is primary scale to up visibility. drives quarterly CosMx installs CosMx revenue driver a cadence track, demand install guidance our on year these We the results increase and With we a for scaling are the order shipments of revenue while Since capacity. in growth instrument and of as expect we position to the our and progresses,

in maintaining visibility our of exit we the enter as as XXXX. year high in we’ve Given orders the instrument the coming the we expect demand, revenue strong received CosMx many will we remain quarters backlog

our demonstrate path third towards breakeven. Our profitability. strategic remains on The flow objective progress is focused laser to cash to team accelerating

During were $X approximately the flat year-on-year. year-on-year QX, quarter. EBITDA down during reduction expenses operating our OpEx lower offset million our kept This first gross and adjusted margins

bottom with approximately CosMx our believe to on as our cash, improve shipments. through line positioned QX well million $XXX cash expect We the our to of exited We to are equivalents the year current growth accelerates with and business that growth balance manage hand, and quarter investments resources. profitable each we in with our revenue short-term

financial and call the our our for over like to outlook update on of an I’d provide the turn to the financial to results Now details review Tom year.

joining and today. us Thanks, Brad for all thanks

our $X.X above million first guidance was about $XX.X consensus the revenue of QX range, quarter million, above $X XXXX of the QX end estimates. For upper total and million

above year-over-year $X For was guidance million QX above acceleration million, range our of XX% instrument revenue was million about our approximately reflecting business, growth, of growth Spatial and the XXX% Spatial CosMx $XX.X revenue Biology consensus approximately end $XX.X shipments. $X.X year-over-year million, upper estimates.

spatial of QX reflects customers the international We shipped and storage price deferral approximately GeoMx spatial instruments heavier to use in periods mix a installed of be included in revenue amounts instruments. CosMx to average QX about our selling with that with instruments as growing spatial initial revenue shipments service installed XX during AtoMx of and realized recognized QX XXX We instrument about of of compute data base a future portion sale. customers will each XX $XXX,XXX. as CosMx ASP an also

Spatial biology of CosMx our sales continued that initial and million, consumables consumable growth base revenue over XX% installed was approximately consumables. line shipments GeoMx $X reflecting in year-over-year growing

with service installed QX end about end was the about guidance consensus $XX.X and million. of range estimates. $XX.X includes was instruments all service approximately Consumables of revenue base million, was upper $X X,XXX our nCounter nCounter and nCounter million, At the $X.X our was XX million the above revenue QX instruments million. which quarter. during installed revenue, was revenue instrument $X.X QX,

we have how results our webpage items. as adjusted non-GAAP or margins a to of removes for investor Please depreciation, release our prepared. amortization expenses, which on non-GAAP information are to to adjusted compensation Turning on the the I’ll basis, our as well exhibits and detailed press impact at certain one-time provide stock-based refer relations posted or measures

was mix, incurred be gross impacted which production. expected in CosMx’s periods adjusted XX% are costs margin instruments, revenue due to unit that weighted selling future to we margins lower are to at QX higher gross as currently CosMx’s scale more by production heavily

to compute AtoMx continued with also make manufacturing investments associated increased We costs to capacity, in our QX expand we platform. our cloud incurred and service and

our reserve Lastly, gross from targeted points. in three spatial is transcriptome newer over whole with just mix consumable primarily usual assay inventory other products. biology our margins million GeoMx QX away internal about and related to our QX sales spatial recorded accordance by that This than panels toward biology consumable policies, a shifting impacted more larger of and we $X consumable reserve percentage

costs expense in product and related marketing and trade year-over-year to costs was expense related other was and of decrease subsequent X% throughout lower to the that AtoMx. R&D development year. driven personnel of $XX.X an expenses and year-over-year, are quarter first quarters QX million, increase XX% $XX.X offset Adjusted higher show SG&A by compared lower the by Adjusted million, personnel a as reflecting primarily CosMx

adjusted $XX.X XX, and and short-term million March investments our million, loss equivalents $XXX.X XXXX. were Our cash, cash EBITDA of as was

in As the noted year as and half quarter. we as last ramp be bonuses occurred cash trade given and burn in cash are investments audit and first support working show the to that on significant CosMx other the expenses shipments to fees, our loss corporate heaviest first the capital we expect EBITDA expenses, such in in make of call,

This $XX range million to representing revenue, service guidance, year-over-year a range million. expect quarter, Turning than revenue revenue $XX to of and of includes million the of million to $XX million $XX at biology $XX million doubling spatial the to be $XX more to nCounter spatial second of for in we revenue.

For year, QX reflecting and CosMx guidance raising are shipments we ramp our QX. of at the the results range our full revenue expected

be total to We range in the as compared million $XXX full to previous $XXX the expect million $XXX year now million. revenue $XXX our million to of to of range

to to million $XX $XXX which the million $XXX unchanged Our of of $XX of million $XX nCounter other as and compared range $XXX service million to and the million spatial of as to updated compared all million to range. range includes previous biology revenue previous revenue revenue, includes

We loss continue loss $XX from and cash million EBITDA the $XX our in year. of to more still previous to range guidance unchanged with second be flow substantive the EBITDA to improvements expect million, from expected adjusted to half

grows a biology spatial revenue our As operating reduced on expense base.

margins, towards than begin expect to revenue consumables. these CosMx higher we We gross beyond systems the shifts our instruments XXXX mix to as XX% and in margin improving also for range adjusted to in XX% XXXX through lower continue as temporarily pull but

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

in by leading our great its CosMx our strong demand Thanks, closing, to capabilities. start Tom. momentum spatial about being business as XXXX, for market driven is In is feel building we

Our CosMx’s consumable stable is pull backlog. increasing and on revenue increasing visibility through

while positioned continued growth revenue progress profitability. generate XXXX operating well to make reducing allowing We’re to expenses, us towards strong

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

Instructions] Our Sourbeer is from John question first [Operator UBS. with

line now is open. Your

taking Hi. question the on congrats quarter. the Thanks for and

still how You’ll going million just that sounds you’re on burn just off $XX think on it’s through basis, the of you through there shipments year a and and is the starting like CosMx, net when you backlog maybe see the backlog? trajectory that any that color to there on above that

in installation to of same ahead a balance step the expect up plan scale shipped of just QX. major of in of the about shipments going year. and remain and Sure. and at We call, second do Tom’s expect guidance then we is for our that our up would the implicit joining Thanks manufacturing in quarter, the of CosMx training the pace instruments the to, number for as capacity John.

XXX the year, guidance you that by if to guidance in have, our really the We of look increase the previous XXX spatial XXX at we’re our increasing the year. top end about about we be for to at ship the systems systems to range of end of plan from the instruments range or

have already that that that, means to that And in ship we two-thirds in expect remaining our XXXX the systems backlog. of we

revenue So we great this really time. at have point in visibility

in year. quarter But not, customers new think we’re chance they coming of who I today would us begin by the to that are instrument some into of the their XXXX. there’s CosMx new get For more first and to pushing putting going the likely than end orders orders,

Appreciate maintain the the guidance revenue to EBITDA that. of And then, raised year. you the loss

additional any can remainder the Just OpEx that color on burn the you maybe of and the year, second provide into cadence quarter of

John. Sure

manufacturing. quarter the of we was the on bit lower costs guidance margin were EBITDA because CosMx due reason the, some the we was our to to that a maintained think I first that gross ramp little occurring than expected

revenue a guidance. really unchanged. OpEx OpEx year-over-year. leaving to decided that’s We expect down to be that guidance the still same So is we The while is underpinning raise conservative our approach EBITDA and the guidance a, take

And significant instruments shipments throughout as we in our EBITDA into a half so that and the base gets reduced our year. what both more as expense over is ramp you’ll efficient operating manufacturing that as second see we CosMx make translates more cash pretty and burn improvement in

just Thanks, still outlook to to that your to XXXX? any XXXX, just year due burn, my Do think And you in you in coming there. potentially last then, on you or through end, Tom. with one need on raise plan color the any convert on change cash existing next do breakeven cash get

to still the, maturity breakeven think of and aware that we’ve flow there in plans options get that mentioned feel for do indicate on but have we feel we where like our timeframe coming XXXX, that the the of prudently to and is in the our our sheets. We those cash are business. trajectory we would we’ll sheet Our those on business, on usual internal to resources, get trajectory feel of balance existing can still menu the about convert, be given before of good plans really a we’re the types that liabilities and consider a typical managing we’ll of balance the the we given as

the for Thanks it. questions. Got taking

is from question with next Our Mikson Kyle Genuity. Canaccord

now is open. Your line

of the it be of array Hi, CosMx? for first cadence of a on Mikson, over this question on or in do Could CosMx the expecting things relatively terms of linear pull through for quarter about the expect congratulations should be guys. I’m is few [indiscernible]. course grow to in Quick Kyle so quarters lumpy kind What year we you in – the Thanks. beginning? consumables.

be Alex. consumables growth in contributor Thanks our CosMx will XXXX. a small to relatively

ramp place to we before people new expect time systems, utilization. take the we to As they up do some full

and in piece. it sequentially as year. growing would to of quarter lumpiness It’s in expect I small expect, consumables, fraction unpredictability spatial terms of overall our the be, a see do every sequential but relatively some consumables. a small So expect growth to I do CosMx but not I throughout

of you. orders biopharma, Thank have that in you been just so other that some been any launch. from also said XX% could had seen seeing possibly came spending biopharma have it. Thanks. And curious companies was receipt roughly that. new I you have on that very constrained comments bio if we Got

really Well, segments. biopharma sub defined into separate we’ve two

at full are the into enjoyed, and a maybe instruments last spatial new who capital larger see inexpensive of still pace. those continuing R&D are In not small cost would trial at several pace higher or most operations say have on You the incremental companies I critical biology and the pharma with that’s remain contrast, are who financed we relatively to of much whose large more companies. experimentation of is that capital well deployment the now much path had biotechs from for being And the that careful even of capital years very in results. operating clinical demand

first slow quarter. portion has market through biopharma remained has the that So of clearly and slowed down the

large interest and on following were interest research where discovery done academic incremental biology technology. that in they’d Fortunately for see and primarily cell enough a to us, focused probably drive biopharma the in non-spatial on continue were side spatial CosMx were on experiments the single who manner, biopharm appealed up researchers initially large is to to the starting

Great, thank you.

Arias is next Stifel. Dan Our from with question

is line now open. Your

like, Stampler feedback actually CosMx And thanks. to sort a just the like guess are back waiting customers guys, you’re circling on Hey now to see them. it to first obviously, just you for This instrument’s seem to people hearing just of some data. is maybe what of I Evan of getting for been little good publications in of out a your there. Dan. hear idea we some, the timeline be bit, from kind does kind have when if then Because, talk for people an maybe hands

obviously you you publication asked ASPs And the kind that of about prepared might TAP program, helpful. XXX some for, if should And the and remarks, any talk haven’t, but I sense that’d on then missed your you your, stuff know with we at when have the be portion you lookout I that. be in come of being other out did of

As and that, for that’d terms I I’m the tried the if instrument I number instruments, do so think rough and be getting, math getting just higher a spatial if I’m in divided to could why, much to revenue of you helpful. explain by that just your, you cause repeat

the the I’ll cover two cover Tom let then I’ll ASP. portions Sure. piece on first the

training to GeoMx CosMx whole had selection, than system so the they CosMx I And much and to and the experience what to to sense feedback able initial is having interest learn their directly an Many easier the to contrast gone CosMx that already and with not been their customers actually CosMx has very experience being an rather were of scan shipments installed it’s was. more So positive. slide. GeoMx went smoothly GeoMx. does is on extremely the, that’s but and their can regenerative easier they typically that CosMx need And largely because use, think a that who

positive been so put are for public and technology yield feedback’s customers. So That papers. we’ve peer to domain program It’s those beta in days beginning the out that reviewed our very said, early the sets our already being far. access

researchers free far, are posted, get nine reviewed published data that So have to charge sets. data CosMx been of so for understand them there published for with that play of peer and on to papers we most to

least reviewed out peer have And CosMx those program. most coming access We been XX products rather. our for projects have that papers at technology our submitted at completed publication access XXX of now has technology of program

be help take there’ll reviewed ASPs? stream really CosMx confidence is you the capable what our more that’ll papers gain access adopt. want a do see think peer really the Tom, of and program question we So, of to of and out of nice coming technology to community the on

Yes, on Evan, recognize just revenue we instruments we ship as when instruments a reminder, customers. to

the some different, be instruments have during two there’s sometimes the prepared numbers mentioned base install those our XX compared look we’re to confusion that when in on I shipped to remarks, because increase tend ship.. Because my at instruments spatial we so we a lag the quarter. So folks in they installing

that you million prepared for to from that gets remarks. that instruments you of take if during mentioned in mentioned So revenue by we the the quarter divide your those first quarter the ASP of shipped that units, spatial XX XXX got and the $XX.X I we

past, want you just GeoMx a all as and individual well, hasn’t And are set customers and that follow-up, you two what they’re new instrument with used you in – the that the for like I’m present versus lot that initial existing telling I’m customer you of to helpful. you of go together? you the GeoMx customer GeoMx CosMx biggest I things that the to say, opportunity Super a just a the you. did they’re when about and talked curious, being say, present no, placements kind them like, kind bundle right, with bundling getting actually choosing talk you then the about of why Got And the have there. and good. CosMx customers. opportunity the like a

CosMx for towards geared Well, both thanks the question. experiments. GeoMx types and are different of

cell approaches. may the traditional an So system following CosMx have droplet-based based on up ideal that single for taken past non-spatial experiments place in is

that know So been and customers science many those have they a of type have cell don’t within tissue, are types that different doing identified but where types are. cell

cell other an location with they’re for types is CosMx ideal cell determining of the and So following system how rare single on up cells. and the interacting

that very driven to our easy of GeoMx of mix experiment is what’s researchers part discovery type And months. that’s last So CosMx many shift imagine. towards from for the XX over a

and a gene look best research has is high contrast, towards number multicellular is able it’s that to whole predictive being appealing large are And advantage the in employed to that of of transcriptome hunting of compares throughput a biomarkers. over the system GeoMx across who expression samples. for at regions really in biomarker interest that researchers translational

is sales science them reps one try account, that when match that is that – understand into So to other. or system the scientist to and our walk doing an they lab the

the same both Some – both of at but think to we very available utility the have systems, time. labs types for labs long-term, few the will have capital most have in purchase

well and very quickly, and situations sell funded scaling they’re those up situations demand those we could where is lab successfully are where have tremendous they spatial a bundles. capabilities the So their

future The period a would a or to first would CosMx and later sell hope other a funding GeoMx and be, vice in situations we sell come versa. back

my give a on Got there placements, those that’s it’s of through, two, whether you or up breakdown you. ASP, Thanks. talking us just about between just with and modeling follow combining GeoMx And the CosMx. Is just If last pull spatial I kind question, guys question. can know makes segment, I sense. That can whatever? anything just it and one you’re

expected CosMx. news that through for modeling GeoMx good simplification to the for be for very is question. thanks The the similar are of and pull the ASPs Yes, the and

our in modeling, indicated, report And your QX, in in Tom simply consumables. instruments and But only we’ve of not when we reporting as so, chosen far across simplify XXX,XXX terms the where of terms ASP that off and from mix both spatial is has the GeoMx. it been average recognizing spatial to were is to matters which

was basis has do you the we the annualized over were pull through, the past to GeoMx on consumable consumable I is right XX,XXX XX,XXX on as instruments the think calculations QX, an pull it about around in been if so same that or through the for And pull year, through spatial similar which it was doing last year.

to spatial those keep at we’re and things overall just you think spatial to So simple, need don’t reporting I instruments this consumables, and should separately model time.

was I’m guess I’m XX,XXX, sorry, as through one not presentation, just quick pull the at spatial a follow-up, which is down… XX, looking I

I’m probably what do of you’re something revenues. the just we the consumable presentation the to of if section could hit at, math but looking you call. do in number that is XXXX, base Yes, This if not sure end had be Brad at you the mentioned. revenue of you which the million installed XXX, $XX,XXX do divided would by the the of at gets that about after X

cool. Thanks. Okay,

next question Cowen. Dan from TD Our with Brennan comes

now is Your line open.

afternoon. Dan. Kyle shipments the wanted to for is a for on Hey, I about questions. good versus taking installs. question just ask This Thanks

you XX said installed XX. spatial shipped instruments, you So

that there. you. there can you each just pretty Please I’m spatial instruments if there. for, leftover these quarter exiting boxes any Thank correct difference within think capacity wide install? constraint I uninstalled the some start maximum number Maybe there wrong, were me of Is QX.

Sure. Yes.

install. a a capacity constraint. instruments can how on is we It’s manpower many based constraint there So capacity

of additional of But engineers schedules. requires more how a field the many hiring We many to scientists remind have that major their in look believe our are their instruments capacity. trainings we installed you, installations requires point another than them given and field own just to installation and and been application around the is own this is and challenge constraint for determinant in any service quarter. at time. schedule that cooperation It customer And don’t

at QX case up remain as the manufacturing, often ladder end were in where quarter, with that that scale installed shipped And increases given addition, in sorry, ladder QX our in QX. that CosMx in pace of naturally of shipment manufacturing throughout CosMx, that the quarter In instruments would capacity instrument case of the expect more in the and scaled as uninstalled half have in we situations you the I the instruments more a the probably to up our – the weeks quarter. for can were of be again

Awesome.

what is point you Thank spill over much do that that XXXX? of – me, excuse will this at something So you. up that XXXX. catches mean, think I or year into

I and think installing pace become the we’ll rather our quarter. the more be throughout backend shipping quarter our loaded the at installations end year continuous by this same of probably capacity than systems within as and off, manufacturing levels the

And it. me. one just Got then from more

visibility there? what think of How far out You maintained the a the I pull here? the business nCounter the remainder relative to expecting stabilizing little bit sort through guide. better. What’s the visibility on is pull of we that the through is for were for nCounter Is year?

sales on side. spatial We’ve from nCounter organizational our leader more made the business some application overall changes that and consumable stabilizing. think a involvement job specialists consumables the on both who’s quite doing team, I is a our and new good field and within

feel sustain I increasingly we’ll nCounter. So or that pull be pull decent confident on a to rate able through through stabilize at

predictable guided Not tell second we of we overall at said, of being this that that time. consumable quarter a think very as business nCounter from it to we’re be stable, looking QX, from clearly where sequentially or the With one to flat growth Tom’s guidance out drive as for nCounter stage. you revenue can this

Awesome. Thank you.

Baird. from Our next Catherine with is question Schulte

is now line open. Your

is CosMx demand questions. I’m This curious, I obviously just the on for for the if Thanks was has curious everyone. Peterson any But backlog been Tom on Hey, what impressive. updates Catherine. on many quantify broader to can standpoint? you how backlog, you’re competitive bits? competitive a the as the categorize instruments imager seeing you would category within or wins the this, extent and that from And competitive current

offerings imager before The in customers sophisticated purchase dealing cases we think with are I system. going most dynamic a they at a spatial Yes. one, is multiple who to and category are to single choose look

feel I most other orders likely taking being that the spatial quite evaluated now we’re CosMx today vendors. that for systems So imagers from are of it’s alongside

really think our positioning precious CosMx, a the correlates plex. the think to plex I agree specification competitive dimension And information can is amount on of that of customers important primary great we we most get we many the distinguish because from it and their about directly feel samples. researcher ourselves where is

our So a XXX X,XXX at that the and RNAs to we compared XXX competitors can look or can sample offer.

that they We’re providing as XXx data of out getting same potential are sample. as much

So reason had such record that that track is really winning a we’ve CosMx. business on the successful of

it. hear then, Got that’s just the or looks behavior broader to constrained curious in comments around that And some of capital some associated of more management. helpful. of funnel environment? changes from cycles it’s seems you the but seeing sale lengths commentary instrument cash AACR of positive Are good customer with kind this of given any good, the That’s kind purchasing

I changes the mentioned that constrained. that most don’t seeing biotech was I’ve think of cash behavior we’re segment in small customer earlier outside

it’ll biology. think I have large, cycles sales year think and the been be a good similar and by So we spatial for

helpful. Very it. Thanks. Got

is question Our JPMorgan. from Qin next Julia with

open. now line Your is

versus product scale I now and ramp? was taking customers ask CosMx that maybe to and on differences experiments, you you. the began and the for CosMx you’ve shipping you This the Thank for their GeoMx early cycle in similarities Thank is just Hello. Marta have Julia. wanted question. up could discuss

we plus. days of orders the is to saw easiest think the launched by ramp instrument customer orders. terms early the thing a of new of XXXX, factor in X outpaced behavior a I tremendous flow Well, it’s what CosMx seeing But contrast for is like. pretty of still CosMx’s GeoMx that Throughout

a products. state in was market at aggressively spatial of not being And but launch. biology just well of are well-known today appreciated about the where excitement different there is vendors commercializing the the it and conditioned out NanoString, much than Of more by course, for imagers, time who spatial by other several GeoMx our we’re market is

GeoMx ramp seeing the of than in instrument we’re So steeper instrument really a very did placement we and in terms launch. much orders

support is utilization actual we the and of our happening CosMx experience to is system a GeoMx. about experimental – GeoMx, talk little and through me learned And whether think filter up and with to it ramp a It’s I more faster than dip honestly early GeoMx. the is will has for believe actually because been, design intuitive for that easier site how commercializing and to lot but the about pace activation consumable use customers NanoString

a has. I GeoMx have So, sense productive than optimism that will faster become of CosMx

helpful. last in what That’s purchasing of and the what then believe on are new the on color quick, during previous I believe it. quarter XX of inactivated? customers quarter, number more mentioned but put of And you instrument same placements placements? And it’s the I was kind then could activations. you number systems nCounter real those? the comments you Got roughly mentioned,

any So updates is numbers? there for those

acquire of at but I would stage, the the pace expect the our and consumable placement why, Yes, so activation revenue tremendous same the workhorse that of nCounter be primarily nCounter. real-time base instrument types and are We researchers instrument over focused went pace this The in which of about this laboratories. immunology. it’s let that expected customers to would has don’t install in translational who is new fields time, is or similar customer those of instrument me be are is from of have those quarters activation, we offset start instrument sequential and and placements new flat relatively oncology throughout behavior active And we the the less a something inactivated. to are into infer visibility that more of who continue into with year. instrument of types quarter sold the instrument the for biology, on relative amount

Thank you.

is from with Stanley. question Savant next Tejas Morgan Our

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Yes, a question. it’s good

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spatial slightly early XXX, largely than cell of course life, biology decade. and that that’s sector. play the revolutions spatial adopter single base within install laboratories. over biology, XXX NanoString’s they in total is These fewer a But instruments out

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options mix sites? and protein it. K for consumable XXXX was composition first offering X,XXX and offering a initial And customers with looking today option. most helpful. like and of of through stalking offering, wondering, a five panel plex you guys of panel just these XXX the your offering CosMx when new the and your plex about plex today currently of – the that CosMx you your Brad, CosMx with a program is Got custom the another them orders plex IO at previously all XXXX the them plex mentioned I a TAP two being That’s And actually XXX what started X,XXX panel, with panel a chose

Yes, demand consumable majority remains that that the vast highest I’d at we can our plex the say offer. of CosMx

plex, program majority both in demand plus the consumables available broad our our tremendous shipping panels customer on I demand we’re Based for is the access offer X,XXX about accounts my that in first year. our weeks, we field expect those X,XXX we’re once past of the the X,XXX over of today, excitement visits and up coverage to and next likely quarter that that very vast So shift sites. become towards that technology to a shipping into early There’s upward RNA plex that panels. can those

you demand Got And and your if it. you Thank the be unit you. provide And the terms profiler then the of one quarter, any your GeoMx more there’s spatial in from any on color demands imager trends, more in seen between appreciated? for recently? changes have GeoMx and your pattern that’d could way CosMx shift of me, for much

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to very just heavy biology described would the to the that, natural in with we So book that. cell it what a is the continued becomes profilers been order easy demand CosMx acquire for – non-spatial provide imagers. color throughout to have no manner only QX And first I to fine exception, XXXX. about excited we one which the continue that answers a that spatial single of earlier single will my And who’ve shift from biology. can was I And had cell expect to and researchers has reason for very we’re think cosmic that are we’re do. it’s continue doing spatial resolution, use That’s to a so in in imagers, we instrument

And We’re consumable going product it’s in excited that the point, to its be important expect we pull-through price about it’s dynamics, NanoString et history. most cetera.

very you Thank much. Great.

no There questions. are more

for call over pass the the I’ll to team closing remarks. So management back

for everybody today. joining much very us Thanks

If the call both for should XXX-XXX-X portion call, sustained access number callers, please use be of you so. two next available any or international XXX, (XXX) To within The XXX-XXXX. did replay hours dial that please the the miss ID conference XXXXXX.

call. So thanks again. That concludes our