908 Devices (MASS) 9 May 232023 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the 908 Devices First Quarter 2023 Financial Results Conference Call. [Operator Instructions]. This call is being recorded on Tuesday, May 9, 2023.

Thank you. This morning, 908 Devices released financial results for the first quarter ended March 31, 2023.

this to or please the e-mail ir@XXXdevices.com. received to you'd send not to added be company's you've news if release like an If distribution list,

Officer. XXX Knopp, Joining is today from Chief me Executive Kevin

differ will events Before we begin, of those statements during that like from risks to federal forward-looking cause to securities call are results the statements could make involve and that that material remind this within statements you I'd materially management or meaning laws. actual anticipated. These uncertainties

Additional these section and XXX appears entitled uncertainties Forward-Looking today. release issued information press risks regarding in Statements the in devices the

XXXX, For section its the with and and of a Form other description, Exchange Factors annual Securities Commission. company's the XX, report on Risk year list and more the the XX-K filings please complete for see December ended

Except law, as accurate call or new of obligation With live This or any to to financial intention turn the only statements, otherwise. or over disclaims that, information, whether XXXX. or May Devices Kevin. projections and the revise broadcast, like is because time-sensitive of to information would any events call forward-looking required update I X, as XXX future contains by conference

everyone, Thanks, continue to our demonstrate XXXX start Joe. off and as we morning, team work dedication business. for and by for I'd encouraging like joining you, across Good our quarter thanking call. first thank earnings to their our hard processes

period. over and to recurring to year-over-year in we year million more grew continued Notably, XX% replaced devices. installed which devices, X,XXX saw increased revenue revenue, prior $X.X quarter first XX% than bringing XX Our our base the strength

I'm of for the challenges within demonstrates as tuning our We continuing value space. our bioprocessing analysis the Overall, are given that need point accessories, and consumables, services to pleased execution, it pleased this the see customers at need. with increasing

end Importantly, technology is different extensible across applications broadly markets. our with

our end are pharmaceuticals. view advantage. key markets devastating the of products the rise as market forensics serving We handheld of counterfeit diversity a Our critical applications, including

both confident long-term are and long-term for feel and near-term in needed groundwork our success. we I'm trajectory doing the

capture front device, of opportunity started devices. in uniquely are first off that us launch the In positioned and executing to glucose real-time lactate control online both complement cell and their processes. to a and We and while REBEL monitoring our the fermentation handheld with online. is provides MAVEN January, our REBEL MAVEN of a we culture the with in bioprocessing year of to precursor device

past been prospective process funnel are for and We the encouraged have MAVEN the particularly of portfolio seen in adds the therapy the cell in we over feedback few the customers receiving products from our opportunities desktop months, we've by increasing growing to analytics. space.

we Now progress areas provide brief you X a I'd like have XXXX. update to the made across focus for our on

across and first objective, Starting radiate penetrate with our accounts. key

create accounts focus adoption. to to enterprise new broader Our these drive is then and a foothold radiate to across penetrate accounts

we international and years and With additional purchased look ability adoption. X purchased vehicle units approximately For process number, handful in we a units to of facilitating which year, now NATO-member provides MXXXX up have to X our our for to in purchase streamlined to in states for international was stock countries valid in place, our up with our this device. which a the XX received place, presence. a forward the step handhelds, continue we expand a significant already procurement NATO growing We to is and fashion. seen Last have

a becoming for for recognized chemical We are detection MXXXX, identification. standard as the to is receive proud and which this bearer handheld designation

for Saudi existing U.S. customers Arabia and The during in use agency primarily units State the and border Ukraine. and narcotics We quarter. identification. customs also and received the through Department use units, intended East detection additional MXXXX Europe several in in purchased The for purchased orders multiple Middle

We within adoption our traction pleased accounts. enterprise the internationally, are broader gaining the we're with along with

be to every in announced in how the substantial. States. announcement, other are October General's XXXX. home, state which General's Return success the revolutionize value drug statewide need across the single remains expansion Attorney Ohio began the the and Yost of potential final that as this the region the testing the Closer is the MXXXX office, of January, Ohio. rollout, to done General In across We program our programs in Ohio. partnership in like noted we states with We Ohio the Attorney MXXXX impactful to the would in United Office Dave This working in believe is has replicate Southeast

threat In dedicated than counterfeit month, Fentanylis just last as Pharmaceuticals. any day of Biden including in CDC, XX U.S. in death, most of all cause National And about According fact, under Fentanyl, the cancer, declared found awareness disease, raising and emerging other other dangers involved heart a petal mixed is today the death to the Americans more often in xylazine Fentanyl the to accidents. with an Awareness of Day, administration

concern device a work years added we nearly as early xylazine software who responders first Fortunately, this X closely issue. this ago, our to and analyte with capability we growing have on, to identified the deal customers with as now our MXXXX

with how and as for is service offerings. This unlock a continuous values support customers example their additional great our

answers our communities device our ensure keep with rapid We them the as provides actionable customers safe enables to petalcrisis will and continue handheld our to evolves.

key been lactate OEM systems, being control we've to therapy bioreactors, over systems parameters from process and quarter glucose throughout additional therapy development engage desktops, online such the aim clinical partners add manufacturing. the platforms, and working cell cell real-time analytics their process potential our For monitoring expansion through in of the process as cell to integrated for to

understanding well longer clean operator The clear. Online enter is to need reduces of the no contamination, analytics perform process sampling. the enhances risk room as proposition to time value as saves manual as technicians and

second our portfolio. our product to and Turning advancing objective, broadening

improved providing of customers smart robot process at with Our core use, point the by for devices mission and that is to are understanding. connected to develop answers simple need

be analytes software. MXXXX need them provide X.X with additional and In First we added quarter, To the where with targets. equipped first they our version to when it. that need to that devices continually we X analyte responders released that end, answers add

We also time. that charge tough Clear released and accessory usability station, a maximizes maintenance its the improves and the core device's

have previously interface As MXXXX's with and the we easy them expand related critical detection equipment. the supported to users. their robots, into created a down packages. broader perform of and set control integration recently chemical is of connect new can reach as vapor inspections draws drones, such draft We enable protocol safely to to This mentioned, of and great integrated aerosol dual example MXXXX capabilities male detection an handheld help workflow be speeding make of our and other technology it ecosystems that to allows and how protects to operators platform a a for

package. that just For REBEL the and one of software our customers a desktops, built Jump that software for tool our we the statistical device is statistical data the are released on visualized quickly REBEL our data click, can from leveraging many All analysis in be easily using.

REBEL's more and and noted, information for course To scale-up easily understanding strategy. using CPI, Innovation Users fee and easily optimize reactors and beating cell was REBEL, process by tremendous data fire REBEL process was of are accumulation acid and new previously REBEL Using fed-batch facilitating through analysis over for software or end, small amino that devices. provide U.K.-based a time amino and the improved strategies the runs, Center that now can culture media bioreactor analyzed visualizing within using as amounts to we trends for both now depletion adjustments daily acid collaborating volume to of AMBRXX or the access detailed tool. data Process MAVEN generated XXX data with

to scientists feed a keeping levels meaningful maintaining along toxic tighter By achieve viability. increase glucose, low With with healthy a CBI which MAVEN, highly strategy high were adding for amino in achieved conditions. scientists media, a desirable growing implement essential depleted control metabolites is acids continuous to cell and low of able while

Taken while toxic accumulation optimize titer negatively growth scientists preventing can impact sell that process protein development and to together, MAVEN and CTAs. the REBEL of metabolites enable

to are optimize time and now adding nutrients depleted. a culture and of line, increase and titer costs REBEL development has Cell while feed can the perfusion perfusion optimize by media Resilience goods cost expressing feed the demonstrated reducing biotherapeutic cells adopted antibody to the processes in monoclonal a XX% process, Resilience reduce cell-culture back Biopharma significant cell manufacturing to goods only in In accelerate the the in strategies analyzer company and analysis, media of Resilience to engineers bioreactors. outline inform while cost submission.

a the ZipChip new CQA. Our ZipChip-CEMS researchers In Royal characterization publication. offline for quality an device published attributes characterize dragnet our REBEL Analyst Society Ireland's this separate by complement of peptide method in with mAb MAVEN and of This and for process of a NIBRT, and National separation device presented aspect, for Training, which key rapid for bio-specific critical quality devices, or webinar biotherapeutic analysis and of in parameters Amgen scientists used highlighted LCMS is minutes or mapping in critical was paper, hosted fast higher monitoring from product our or and multiple paper our is Institute used Research how Chemistry LCGC, methods. traditional accelerates sensitivity better to Similarly, than workflows resolution Bioprocessing less and on within ZipChep-CEMS attributes. antigen-binding a XX device

more XX determination in provides of NIBRT minutes, hours. than attributes faster a ZipChip that to robust provides standard LCMS scientists approaches know that important take can quality alternative which less

Miller our that quality foundation, a Fun, ZipChip At As workflows turning on capital metabolomics OMX proteomic to Will efficiency. enabled scientific emerging to and these SPE improve and exploris address our mass our spectrometers. proteomics and analytics Double for objective, And electrophoresis, presented clear which multi-omics to chips them customers see metabolomic providing Lightning mass and for the in examples with illustrate, and spec-based for March, and process and Devices, robust high-throughput or from real-time Thompson enable [indiscernible] thermo need laying utilizes accelerating devices talk XXX titled, are prototype Dr. Your Conference finally, Scott poster we a using U.S. an product opportunities. Midici third

ASMS, the multiomics discussing June. XX with thetabonomic, companies, at ASMS, plus on posters Also will independent details takeaways will into chips biopharmaceutical earnings and prototype these drive vendors. We presenting Deep how back oral Dr. Thompson more on from a call. expand over look forward in proteomic turn XX the continuing enabled with his Society highlights single American bottom-up blood. Joe I'll record peptidomic and Conference, collaborators our institutions aspect are investigation we our for key for financials. that, to next micropolitic of our research a top-down and in it With in University or microliters to show Mass collaboration from at talk researchers sample Petromedia on This

prior increase the an Revenue period, Kevin. year $X.X prior increase the first our Thanks, in prior to for was revenue million the handheld by quarter in compared Handheld for period. $X.X the the primarily year accessories. was XXXX quarter. MXXXX handheld our $X.X $X.X of compared to first period. in XXXX over was first an We product increase devices, million the both shipped in The XX% driven year increase during $X.X revenue the service, XX representing million million, devices from revenue an MXXXX million of for quarter MXXXX of recurring and

the the the revenue, during our XXXX X shipped We and million and MAVEN for ZipChip XX% in interfaces, ZipChip X $X.X period. was primarily decrease first REBEL, a from year $X.X quarter. Desktop million, interface, quarter from X of MAVEN REBEL, devices prior products

by placements We term. in out will continue to the break device near

combined broadens, due placements to revenues, encouraged a the that The However, were portfolio as growth. revenue to customers. We key revenue in for focus recurring decrease to year-over-year. desktop and see bring in more desktop our the of value will was on overall our the metrics uptick as we our placements devices primarily demonstrating device decline

first Notably, quarter to revenue higher first consumable increase a revenues and accessory recurring consisting to increased million higher including $X.X to Aero compared increased in compared of to of XX% XX% service profit the XXXX XX% million and from product revenue to Gross recurring year and prior period. $X.X the XX% was consumables, million prior QX in was the $X.X revenue service period. $X.X year margin primarily service was percent revenue prior XX% total for has QX period. for XXXX compared XXXX. the the for of Recurring accessories, revenue, module. the for related as million to The in handheld of XXXX as year for in revenue the first and Gross quarter XXXX quarter

costs XXXX. of intangible quarter were The first compensation to largely and of $XX.X million gross decline was device was milestones. amortization XXXX an prior due increase impact in in operating noncash amortization quarter $X.X a million in acquisition-related million and for intangible stock-based increase and by driven well charges lower year period. in increase the the personnel-related $X.X throughout the production million of as margin costs first Total to contingent compared the $XX.X compensation during This for a added XXXX of and as in headcount for from valuation builds stock-based higher expenses

quarter for compared of year and ended to in $X.X XXXX quarter $XX.X approximately million with XXXX the in We the million first Net million loss period. the cash was first of $XXX cash equivalents. prior

we $XX ended outstanding. and quarter debt the down paid with of During no million the quarter, first debt

cycles not bioprocessing, of for today, particularly are we within placements. the REBEL improvement ahead as XXXX, meaningful our capital Looking seeing affecting purchasing in

quarter the least the at We year. expect these into pressures to third persist of

existing of educate hard technology and customers and adoption across on Our the to team broaden the sites. value is potential working

So for our high are as customers. funding becomes priority a available, we

seeing market. challenging diversity serve environment, as competitive view we of users our we and that technology of markets. advantage the this devices a end extensible it In adoption are handheld strong serves Notably, the that macro our forensics

revenue similar to revenue anticipate recurring the handheld second-quarter we what to experienced centered our and device in that said, be growth quarter. being So revenues, first we around

strong will in pressure devices, continue ongoing offset previously seeing had anticipated, likely are environment longer While this adoption we which the very is bioprocessing believe we we handheld our of to impact. than

full to closing XXXX. we At call to to back the revenues over representing the point, in still to the X% together, of expect million, of be some $XX I to like year XX% full-year would this million growth range for Kevin turn $XX Taken comments.

Thanks, In first progress pleased in we're we our quarter. the summary, Joe. the with made towards goal

our the map are Looking First, ahead, analytical positioned reasons: we the road product. we to portfolio process of technologies road Interface, capture and a come, in robust and We're differentiated ZipChip creating this have year. uniquely strategy of for MAVEN, we later from exciting MX beyond opportunity current us our X a full be front that will map products that devices believe of one plus complementary REBEL, including portfolio, and including announced

With handhelds ensure efficient with bearing Second, and like thoughtful diverse first on And runway our these devices cash balance outpacing geopolitical space. a would We call here I'd XXXX thank expenses you challenges for offering the with spend believe today, operator we with will handheld forensic in the and technical have headcount remained strong that, critical are fentanyl like questions. to to rising crisis. with to third, we not in a uncertainties working the growth. revenue the up as but through have to open the continue for have ongoing us our and through be our we we it

[Operator Instructions].

Dan comes Our of Arias first question the from Stifel. from line

on just maybe Kevin now. bioprocess or Joe, a in lot the REBEL. start right market to on going Obviously, the

that idea the is really XQ. placements in until system on numbers we all expect shouldn't So acceleration

expecting on smaller then the have REBEL, do any seeing Joe's versus And amongst hump about company over you for And in given not improvement? are just of you terms trying use and larger presumably system kind a and of can on any have talk have the utilization the utilization the folks Just just comment user there that trends? gotten those are do that to the it? improvement

specific of just are on the off. that details And are industry a sales industry pausing cycles authority to CapEx are we expect clear there pass some needing the with do in desktops. of more I'll We're muted our Maybe to at or CapEx Dan. modest, Thanks, outright that portfolio being is XXX. growing sure. look people phenomena placements life it not and seeing and do QX, additional sign and we experiencing fact it. it's and extended pressures some Joe others are existing just cycles bioprocessing we we out But for in while to the what in stated of experiencing purchases to even as have yes, expectations particular. be start off seen for we the Yes, But REBEL

the strategy. focused we're products So to that and of And demonstrating the value out that of our a it's this really process analytical improvements. set not to expand showing a we REBEL, kind portfolio to devices that of technologies process We a strategy product on and these technologies. for on single to really product continue whole focused recently. are today and really our to really portfolio us, all were interconnected. that's around a build time and as using improvements, if some actually quality quarter, fortunate It's the able We're really utilization, replaced you announce XX desktop to of analytics will, customers, tighter the but called be

our largely Regarding QX. utilization, specifically, REBEL been pull-through the unchanged utilization for has from

per but X So bit QX that similar our tracking on a is we're about average around a nominal seeing versus kit. X.X kit at amount, around really perhaps of goal month higher that

small our by it have challenging becoming have We can of we that. like by more by It modality. say customers the does or others and out just can dice as But in therapeutic you MSAT aware it we smaller asked slice working do companies you're products. make data been suggesting have to and meaningful We we numbers. past, maybe there. on really using statistical We're are

like of Xx customers to of those those some customers we are And have monitoring of more applications, it average. X kind process consuming are using our for examples where and

on So right that driving been now, focused we've utilization. really

we last Dan, improvement QX. of first continued see the possibly we did QX, mentioned, capital pressures call, persist placements, meaningful the We mentioned, our set did within to cycles X we particularly those and different the QX. add affecting least as we that in today, QX in months QX I that until see maybe purchasing at bioprocessing, and rubber pieces, And there, as that seeing I as improvement levels X see few earnings probably a not X expectation of in do in of XXXX likely the we but not to year, will saw into we're

value on the that market devices that demand handheld working really our to of help seeing educate those is customers And offset now, team the some concerns. of hard strong right and for to Our really notably current potential technology. existing we're the

Yes.

Okay.

working opportunities funnel maybe these then And the you've handheld Okay. side you've and that sales been have on here. enterprise talked you just Kevin, the about that on.

off? I think of sort How XX tracking backfill potential in group And some ultimately, can the contract to in this going that just systems to where to to that orders you've of of customers that go year-over-year called you're the can just contract given and kind XXX business help total year? so. is the or them the terms be helpful. Army of would confidence think too handheld I Army know was rolled specific, on do you but serve placement not be

we're I'll And that we're turning And conversations Yes. Yes. looking this for some areas, we've pass success particular to programs start we programs in Ohio, we're on and then like more progress good Absolutely. we statuses as testing growing with get has early being local that guidance we're for demonstrated with out quite of the we're today. have and But that seeing for enterprise And devices, accounts pilot again off we've and looking there our of existing and Joe work trials pilot with in know, is that us today. highlighted other it and here. in state program, excited made to we to seeing funnels reiterate progressing and where which and enterprise customers continued value going great onto roll accounts. these to we at things things into pipeline and plenty got Tennessee, well on. factored including the been and to year

but the and got large our and And the great all local military, we've so Army, outside the across international. handhelds, progression and also call and I'd then pipeline say within opportunities state progress for areas, across our it federal board that's

large Kevin in So enterprise A that's the with one of there We're is pipeline our positive seeing for of they definitely for and get very are example the momentum funding to adoption alluding this right. of historically, U.S. other and devices, on XX was front. as customers XXX-plus a opportunities. those Army to budget great purchase, some The examples. working each a allocation

playing We the more X,XXX out have over devices there. in sockets but field,

device we see of a we So and recall in really you handheld positive devices despite Army path fulfillment growth approximately feel is months over XXXX of XXXX. unit today, which the X limited first order, the don't for to XXX do our a U.S.

Puneet line comes next from SVB of question Souda Securities. Your the from

MAVEN, mean equipment. I are of side So and building here I you're in, on side of market set with these the but smaller sort -- the the process REBEL of capital that environment technologies. you're a appreciate the analytical or of lower instruments

maybe a So Just growth side in therapy you can REBEL and bit wondering seeing in side? analytical from dissect what the to data you potentially pros interest whatnot appears your us little that side of from drive in technologies. collaborations, end terms can your do you're what to seeing the cell MAVEN drive and partnerships, I'm mAb and environment? for products here the customers, side a cell help what on versus are adoption tougher more be you on do the to wondering therapy what more

Yes. Yes, sure. Thanks, Puneet.

platform. I on out are focused think building we I you're right. mean a

right in least I other prices CapEx than price in think not more our REBEL, they're $XXX,XXX. are the is some perhaps that tools, a also our you're but reasonable inexpensive approximately little that still

definition. So growing a to in it's that CapEx they portfolio still purchase it budget, our here, all groups would still takes and considered for be

the much with right, process is were And people technologies, time, don't had pushed right that growing there's it at need commitment analytical talked more on importance. the about seen just length, they and the of I be believe and as be and and cautious budgeted we've moving think believe that them. about debate I just discerning we've this seen at CapEx be we've customers forward more that.

with a how bioprocessing people call of time, at this then a biopharma are the in area more that and to have are and can timing of time low advantage is recovery during reset and customers that I in time think bit taking of out a able a opinion at to that can later it the we whole showcase pharma, be feeding key engagement REBEL, we values attributes to particular, intimate of it's a and really do matter looking engaging provide. quality leaders of levels, we're in ZipChip the on glucose and looking critical MAVEN working able these to terms get now control inform new with its strategies, a product with and portfolio at this and year.

we is We we've there. what So see and think some with CPI working they've there out publicly that were I Resilience a do lot with mirroring with been had successes can closely happy and to them. seeing there was

ask think we bit factory sending agreement. generally, or people for you helpful And need involves do to a there. that can triangulate. of transfer Maybe a might So when a a people also demos. demo, one lot sales there's be in process I data material The often

material done QX. we've we transfer agreements quarter-to-date, than So all of more have in

we seeing and So some engagement are activity.

segment think close does how do it's how you fast will those fast really I and that around recover. if

just in That's potentially sort the maybe you're And moderating if if the were gets potentially obviously, of think sort contemplating the lower if to just sort more it to potentially were Then you are of can guide on the second Okay. end worse? But base have side half? higher Got And environment itself. gets the the where of So the the the it. and will on about instruments weaker for you on Joe, those things you recover guide things talk what Is for guidance of continue? and be to was and you helpful. strength. end where of what maybe to get you MXXXX dynamics where you the installed that that. desktop maybe feel super things what

there by that of spending sure end to our end. to definitely that a led our in time the that We're making path looking strength take have we range to few us the get are the levers and high most handhelds. of high to and There midpoint Sure. a will MXXXX

products ultimately in in those MAVEN stronger We're then We run the with excited tube-launched can trying crawl to product fact need balance our where both the new that we be than products. of get would First and and early and products thinking to second anticipated. adoption stages half. the about are new with the go, when that walk with enthusiasm we

Second, that the we touched accounts enterprise handheld conversation on. of

We that number have continuing swing processes, to they time take a big as we're our takes pipeline, procurement get of develop, in to sometimes and to But opportunity, years. some with the encouraging the path be their for items know, it do for see and to you had top the pipeline to signals through the some but we've customers and early line great or seeing conversations our that able handheld year top of build range.

of from line TD the comes Yan next Your Cowen. Stephanie question from

Great.

pay capital time talking don't about rental do so to Are or the customers REBEL, upfront some the reagent plans and that lease there purchasing equipment? challenges spent structure on You any the capitalize macro to or extended cycles. a have

the and a years the have confirmed are option capital potential as and great to through that about have in talking a in question looking that at they a we spending That's customers talked that that we don't something here have few XXXX.

their are a but to the customers, the technology tool to at for want the value we within them situations, pay those then certain a see with amount, ability to technology investment I to getting value see in the we upfront, tool able customers the specific workflows. ensure we device present will looking and of ultimately, unique entertain place. in it in and and the have be bag make an But So access as the to to

as great. to time, And still working if go. be right and that we're of that. It's So now, through that as value want trying just the yes, responsive that. short talked the of Joe an CapEx responsive CapEx. our not them is sale, unit doing create think to that to we're anything constrained. At to and know customers' listening we really to like by not mechanisms this be product we we they're trying way we to to Yes. like our the a we that, But model. I'd But a said, length, on-ramp right Joe can business it We're be that's show the it's needs adoption at term. in add are and a would and customers And change our our wholesale described, to we is,

Okay.

be that radar? or this so really decide you something that what, I not on just And back of in direction, did year guess, could if go to like half the

Yes, be just as customers. determined, responsive I to to our said, mostly think Ken being

Okay. one Got then it. more. And

into You as the new of customers new a strategy. could customers sales penetration existing talked Of you devices key percentage us in versus of the customers? sense placed the is XX to quarter, give a about

Sure. right. like to sales you're both intent. have We Yes, to new do

We now that. have, as XX got we've accounts we to said X more with on the been adding or units. call, We've QX

products a We couple now mix all desktop of accounts our our MAVEN ZipChip, have MAVEN, added REBEL, all have there. now actually products, that with into the

existing. split larger companies, desktop biopharma in we you some good in about I we're a those just with some of think saw say, particular if placements new, a to So those here, of would versus XX smaller of XX-XX seeing mix, our and our QX

Great. Okay. sneak And I one can in. if more

efforts on us and acquisition. you sales could traction? sales you're Germany give Trace So on earnings I prior in putting know you the a European support via previously some call the additional said color

on Just Europe. in if color, that's how going possible, any

the manager things, us We we seen international we And investing showing think East. there. here leaders the but in across great ability board federal to seeing our our of the now up, We've NATO Yes, the for on the which been we're we're [indiscernible] progress in U.S. example contract in and we've And personnel internationally, as handhelds sales gives the you one absolutely. confidence those really progress particular international handouts And vehicle board and last have pleased there. hired centered measurably side reported year. some and channel have pretty with execute and on been moved I that's And the state around XXXX. We Middle investments in and our now. we've the and pipeline driving the investments on other from of across in made case to highlighted the as seeing all in that QX in certainly there, we're return a local, assets, growth

biggest And we and that the they the budgets there a share growth for changed, that are U.S. XXXX. technology, for and opportunity, in with concerns opportunities here but as here do are the of see and especially hasn't in counterparts U.S., the sizable the handhelds, internationally use and similar

Jacob comes from question next Stephens. line Your from the of Johnson

trending? talked of interest, how general, the of figured in is you give to that little about the I'd more. kind the said, inbounds think terms out that an a I but just given some you're I think getting in you bit macro on the now, elongated if sales more I like go in just seeing the macro. higher just processes we level is the I previous it But push kind answer, Maybe of funnel of opportunity everybody one curious right I'm environment.

in mean we're now of utility portfolio more a bread-and-butter of discussions seeing to going half, signs over QX to device. with I very we was broad excited I anticipated call, be muted likely at that the it and CapEx on discussed like that REBEL provides prices QX to year. a forward-leaning first extending is MAVEN now Puneet's got that we absolutely. lactate with honing that glucose think Yes, tools optimization and into point, We're going this as of variation our from customers the and we've analytes

excited engaging are we've cetera. bases, we're working we existing to have conferences, So make fielded say been prospects, I et sure that would to customers, that.

the in key base really engaging we and organizations them senior the the our out and folks and there. in team there there, customer we and more leadership these at support having sure out So including levels, getting can making

the are I case our activity QX. you're we which QX we for did activities But executed step-up of in of did agreements, there or in all in demo those than still little here we very saw I wouldn't forward seeing it's material more at here in transfer of put And we right, that the desktops. concentrated say needed a tidbit our quarter-to-date out to cycle a portion that's think that why things that QX we're bit anticipated a here date. see

utilization, some to customers, take get we will as we trying We So active. and a of the to we seeing time also close, these take good think we're that them that sign. but are terms being in

QX reported also orders second-highest consumable record of are in that on We quarter nominally at that was per the it blanket orders X kit month.

drive got But with these got handhelds Jacob, value and handhelds benefit and it. working we've that and the to we're we're during times. we've of very that pleased, in our with also market our drive diversified position forensics customers that utilization out So that

maybe Got I than is handheld the guide targeting mid-XXs year think of in you It this for that year. just don't margins, this but the of outlook FY Joe then change on 'XX. we're seems margin maybe be thought. going know Any I previously like it. to more to And for kind mix expectation? revenue gross

mentioned, in and to that I will looked the where as by year main also both driven as device mix say And charges, be initiate points to basis margins, of at noncash would prior we gross many In impact. as didn't kind the changes margin any not XXX on I primarily lower each in about scale. we XXXX, and builds that side There's the continue with desktop intangibles, the variations was stock-based production higher and QX QX, compared builds, expectation. comp so period, QX it factors especially

to new continue as basis full expect margins not margin the mentioned, go-forward a on this consumables, year opportunity we're our improve scale to our do today. our that for gross see we in and we overall, at And XXXX. products So and mid-XXs, and the with you are

Blair. line Your William from from Matt next comes question the of Larew

I follow-up the for to product your additional Kevin, the weakness still wanted Obviously, But check bioprocessing side. product market side. just maybe, on temporarily just on some on new is in I want to plans launches about thinking pressures own product they're to development. new you're customer as the of year. way the budget And any feedback if in or the or examining influence their customer back half the maybe

certainly Yes. to Thanks, a and as innovation component view our and XXX strategy. Matt. inherited Yes. key and new products share, I growth our mean, we

last got pleased are group of that development into that's our year technology. things a added the integrating there and we're We and awesome TRACE really combining a product some going August how really how map acquisition. and Analytics great there in in road individuals of effort, talented So did a and with

So we've product, got key. MAVEN the one their new ASEPT product out a here online we've to exampling in TRACE prelude is with is which REBEL January our that integrates discussed approach which the technology

portfolio we REBEL engage changed out including technologies tools of of analytical new wouldn't our discussing select priority the be those process will through products to what and the in online process engage the and for appetite customers has working REBEL to what say gate them building are I online. when work and stage that as customers anything of we on be, going

So sentiment that the these I don't have. customers with think there's needs a in change

think because talk I we're delay now can there's trying discussion of their this that have portfolio about whole near-term and of adoption. to we bit of But take advantage a finding more and a complete engagement that portfolio. out in engaging to time partner we're that great a build

bioprocessing customer you continue this? of of just just and to location, couple Is there type you in And could being mix presume transfer material times, on conversations referenced the hear. sales but process the I terms development the of around a opportunity good the maybe new sort maybe to that today. anything final of it's happen. you the funnel, referenced or That's been the by asked Maybe a obviously, of mSAP share funnel the then one, within

internationally say we're both customers desktop look up that in there. as we're at for out Yes. We're great develop funnel have we're to MAVEN examples to I I that to we any things new MAVEN take our would Again, don't our that. thing trying and the would with products. the seeing say one U.S. for and is of able that picking REBEL customers, desktops,

therapy certainly some It's analytics. areas all also we of interest integrated technologies area, be in interesting and our application examples a cell opportunity. our gene us would to us adding now and now having only have are MAVEN some of points While quite proof an of and of that have customers couple of those desktop customers the have we of products, in that that interested these gives

possibilities biopharma. up in desktop here. overall biopharma XX and and of opens that they XX-XX placed, between split that had between think for X/X the I about us were as we companies. our desktop And QX roughly smaller we XX larger previously So have in mentioned, We top devices devices, we

biotech. we of a a but early-stage do meaningful have percentage, in So it's number units

coming what or back. closed some look pipeline, some in back we biotechs it's a coming and mix and customers, if large -- biotechs, has So what's existing between large at small for our biopharma

specific trend that's don't hopefully, but one in color any I So a think of bit useful. there,

for turn no questions call Thank like you. time. There at are any back to now closing over further to remarks. this I'd Mr. Knopp the Kevin

Thank Yes. you.

very forward for like and to be went, quarter and for logistics pleased our the bearing we're guide and operator on thank you we're how errors, First, but I'd reiterate make the march able today to with to excited us call progress.

So for thank you time. your

thank Ladies that you today. day. so for concludes disconnect and your for presenters. ask this please We a Thank your Thank sir. call much, and gentlemen, conference lovely you you Have you, participating lines.