IsoPlexis (ISO) 2 Mar 222021 Q4 Earnings call transcript

Good day. And welcome to the IsoPlexis’ Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder this call may be recorded. I would now like to turn the call over to Carrie Mendivil, Investor Relations.

You may begin.

you. Thank released XXXX. the IsoPlexis ended and results XX, December financial today, quarter for year Earlier

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

IsoPlexis Joining Officer. Chief Executive Chief Sean Officer; me are Mackay, John and today Strahley, from Financial

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

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

company’s XX, more filed Except of for For complete to quarterly the year Exchange and the XXXX, on week. description, in December list annual Risk XXXX, intends IsoPlexis XX-K Form and Company’s file the on Securities see its next with information as XX-Q This only report IsoPlexis XXXX. call by over broadcast, With XX, other information, obligation revise to of or the future Sean. Commission. filings November a update please like report the the Factors of or ended section turn intention or X, whether financial any call as to projections events of otherwise. required the to any forward-looking time-sensitive new accurate or contains statements, disclaims and March law, Form is because conference live that, I'd

XXXX. will and our turn on year-over-year platform progress consumables, and execution call. $XX.X we instruments our XXXX. On to IsoPlexis, year and growth. biology. functional need intersection welcome year at the respond of We've earlier earnings genome proteomics for Thanks, drove commercial everyone a significant disease work outlook drive in-vivo level. developed call joining call with single-cell of for discuss adoption over was to will for unique clear on financial revenue, therapeutic disease proteomics, year exciting fourth you the novel of IsoPlexis. multiomics, I Carrie. not the John I to curative bulk for to technology captured million able review a and based XXXX greater made single-cell multiple I’m signal to to us. drive for and the morning. at understanding for that customers. our our fronts the proprietary provide across functional cells We an and full early single-cell in for in biology our look results single to to to to as and over Good a pleased quarter growth The our have response proteomics investments indicators you finished There XX% update At and And XXXX future we we understanding medicines that understand advanced be detected commercial is an enable activity analyze today’s and the be thank a is of to as cannot of sources

immuno-oncology our We high the within areas, IsoSpark segments creating have we position and cell are growth instruments proteomics unique of seeing different including across launched IsoLight a therapies, Today, many market. inflammation adoption the are immunology, research. and and

how to responds of our to the determine Cell proteomically the of body Superhuman human complex As disease. driven we cells Library industry-first recently single-cell the in unveiled pioneer have proteomics, mapping

with expand solution. we longer duomic clinically are In multi-omics which platform, relevant market uniquely multi-omic, a the addition, single-cell, our term, developing will

deeper enable the layers and researchers detect, biology. For able predict sequence immune uniquely to be cells clinical will model them much time, the of will first proteomic we supercharged to which

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we we progress in strategic with the and tangible a instruments with Starting XXX. earnings call. of XX driven in areas adoption, bringing fourth To our field particularly strong to progress demonstrated laid our and XXXX the differentiation customer quarter to we We strategy these proteomics around have cell cancer sold areas platform, therapy. expand that this to throughout the in are our demand large last further the We of single-cell on our drive land of year. gene will shipments drive and experienced on continue new XXXX growth, of continuing out instrument each throughout of instruments immunology by lasting execute course total and

passed functional focus a of key the in important now companies top top have which as milestone comprehensive with top meaningful we Starting cell XX on XXX% an across landing centers for demonstrated we IsoPlexis pharma accounts progress analysis. throughout the pharma cancer First, and with pharma year-end, using of XXXX. companies we

these key multiple begun have into already instruments. accounts IsoPlexis have as We pharma several top now expanding companies

adoption our five seventh companies into to bringing of In core biopharma This the placed the our is customers. system fact, these our have the one we value demonstrating now instruments are top customer strategy. of

establishing first which high of critical companies, utilization. focused customers degree part application these and the on our laser usage, these few starts the technology We getting are across areas. generating normal Once data force our of a months value is of a different of champions sales within are promoting

our demonstrates which across the our multiple to strategy applications. and well create heavily groups we’re leverage this utility wide are systems expansion customer as large a strategy, this success accounts. within in robust as a us sites, numerous of as We Ultimately, investing across allows able to of number pipeline

as On using the strides Comprehensive academic with are IsoPlexis account of key now well strategy XX% making our U.S. technology. Centers side, we great Cancer on

we system We placed that This our orders although momentum year. systems. are to gather sales the to beginning have fourth be performance our first of proof for with at system laying just we with to to centers additional continue one a the is brings can and point are the in. the coming these now This place, proliferate a major the subsequent able confidence our challenging in This our great systems. as foundation coming strategy most is

to to for demand our base the meet well-positioned continue We installed our increasing tools. are growing

remains with instruments, our business pleased with focus although so trends our utilization Importantly, are seeing are and is we on we far. customers positive placing consumable also growing, the

cell our the profiling health. Library, on equivalent big various the proteomic focus to over move that to Superhuman affect Moving T a cell been human characterizing last year Cell has beyond types to

have number has We of test which expanded can our expanded significantly the customers in cell menu. types analyze,

can tissue wide in areas, as variety now immune the and cells cells a structurally blood profile Our of well flow adaptive to important formation. critical system as and innate

mapping these unveiled in of Superhuman categorized types are Cell as first which we We industry January proteomic the our have driven cells. Library, into cell

library to what more to advance across to their cells types these to allows human on lays health. massive single platform in across cell growing based superhero to our of human technology like expansive proteomics body. then characterization developing excel looks to findings cell uniquely of are research a on and the We leveraging This define cell expertise groundwork the applicable customer’s our be continue for and add broadly areas the predictive customers a

are exemplified analysis There therapy, earliest clinically the of cancer as ultra-high unique Biology platform collection Superhuman of of relevant believe wide single of of to key a publications journals. proteomic value are publications of reviewed are traction There cell immunology end now publication. an highlighting XXX velocity single cell in growth markets is through high leading cases the key necessity Cell markets. proteomic and signals the infectious of cell growing IsoPlexis our our use in range unique to indicator Turning for impact drive the demonstrating increasing platform such and the We peer that disease. response

more a for advancing Advances therapy therapeutic Anderson ImmunoTherapy patients. cancer the response larger nature are cells and response. key role of our of gene cancer that valuable a infectious response. are expanded in Journal for Sloan the cancer immunology like the showed previously pipeline highlighted been months, gene these the customers. fashion. and monitoring long-term superhuman polyfunctional to for a immunology demonstrated a intense beyond indicator underscore and monitoring have multiple in in We health to technology Oncology, and therapy orchestrate COVID and last polyfunctional of be In of to our durable metric for polyfunctional superhero cancer that cell utility we Blood superhuman the Clinical indicate highlight immune into element cancer MD This predict cell in predictive the indicating Journal immune as highlight represents cells. immune therapy and than have sources as would have cells I immune various for that that earliest we Studies how changes six and immunology as Memorial Publications shown of go medicine cell Kettering, response conducted proteomic Today, ability diseases. cell market end Immune health other is well super to predictive long-term our our that publications two Cancer offerings system published studies at demonstrate the in to publications recent

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market. four Turning platform, the to advancements making proteomic we core intercellular secretome, significant end our Duomic platforms platforms in CodePlex. systems, Keep installed our opportunity our which include provide growth well us built bulk multiomic we mind, our channels as to are to families, base these the our new four all a run as signaling, product high platform pipeline, that of existing chip cell the these in product on single meaning deliver

are single we First, cell with our the the advancing test menu library. comprehensiveness cell superhuman of secretome

advancements signaling need for proteomic immune made bulk blot. resolution. pipeline traditional tumor cell in of single cell assets represent single to compliment we’ve to a platform, a alternative We’ve Second, single which both for proteomic added cell signaling, our Western deeper pathway signaling

Duomic multiomic as solutions begin Third, for pace. cell multiomic year our highlighted XXXX. method of need new a was utility in demonstrated platform novel in recently at earnest rapid method The cell has high the as single nature’s the advancements single

multiomics excited the cell clinically are with We relevant market solution. standing uniquely a single about

key pharma In customers or development to unique functional cell super Meeting for profiling. demonstrated that applications. the the and gene genetic of CAR-T these particular and The for first the proteomic T-cell data has we time, for first profiling the ability For cell with lays intersection sought-after proof-of-concept the from applications sequencing of concurrent the at our clinical of Annual expression demonstrated cancer. variety in capture in Effectively, of and time, Society groundwork now proteomic in research Cancer Immunotherapy at highly our for the proteomic single November, SITC, information a drivers which functional for the connect proteins Duomic can and of we immunology cells simultaneously discovery

tumor proteomics, end T-cell focused on which three proteomics in expression immune expression include are multiomic large and applications, We receptor proteomics. expression in in market

mid-XXXX. you’ll platform access second Duomic reminder, our half of a offering early be with service in XXXX a in As new launch full the via product

very future. are what’s for and look with near forward ahead updates providing the We pipeline our in excited to

infrastructure our in Lastly, we rapid to investing operational growth. support our are

meet increasing expanded the substantially supply and our in Over team reduced XXXX. chain operational our our half ensured supplier of to demand second risk relationships ability XXXX, instrument

upon We in in fourth where and continued our our to of XXXX lead quarter supplier plan XXXX. revenue time to to components build execute the necessary raw material ability on mitigate further inventory ensuring single critical

to continue IsoPlexis, has work transition will here of and company. at moment for the all I’m excellence on their future operational a proud to team very iterate support This our public committed to as year growth. are our we We growing at throughout processes a to been

customers, continuing looking differentiated work accelerates are to highly in forward human health. We their that of to areas data critical high provide our utility,

We excellence. installed product our to on continue commercial base the in our And biology. finally, will our more for John cell in will built our to exciting I turn superhuman also leveraging on through upon focus over roadmap, call all on growing provide financials. differentiated advancements will we now updates detail leadership

from prior was Total sold. the the results a to XXXX XX% $X.X $XX.X in the increase driven quarter. were year million, Product compared $X.X million the primarily XX% year million, revenue XXXX. quarter full Total year from the prior a in $XX.X year. period. was in in for Sean. was an year fourth the of million, prior increase up of $X.X a revenue Thanks, for revenue $X.X of million revenue the the for of $X.X million XX% increase was in XX% million XXXX Product quarter compared XXXX full These for fourth increase full $XX.X instrument by year million to

As consumables in million of progress that a made with $X.X XXXX. revenue, product we compared XXXX $X.X in million part significant to generating

our growth growth consumable installed and revenue create are encouraged strong the our base sales. continue near-term, on long-term by to increasing in for in to focus the We a we instrument our of foundation consumable to-date,

instruments to and drive in to in sold total XX team fourth the bringing quarter, XX adoption sold continued instruments commercial XXXX. Our

Gross in sold prior year $XXX,XXX was year launch in million for to the revenue profit full the XXX year. to Gross year. revenue As since XXXX and for year for was margin period of compared profit in now compared XXXX. late same for was fourth for fourth Gross prior of the was in fourth XXXX quarter quarter we the initial XXXX. of XXXX XX% quarter fourth to $X.X million $X.X with in million Gross instruments have $XXX,XXX quarter yearend, XX% the XX% XXXX. prior commercial the the during to Service compared margin service the $X.X of $X.X for the to XXXX in was compared quarter prior compared XX% million the period. $X.X line was million of the

to our expansion our key margin As focus as last our mentioned business. gross on earnings scale call, areas of is one continue we of

and increase an quarter was five as XXXX driven $X expenses marketing and quarter the expenses were and expense increase headcount $XX.X SG&A activities. million in $XX $XX.X related XX% compared the was gradually we $XX.X gross Over additional R&D next driven promotional costs expect for of in expenses years, being XXXX. to primarily and to million, million well Operating the million the margin primarily $XX.X range. expansion XXXX increase to personnel to company. as prior $X.X $XX.X operating expense improve low-to-mid were XXXX increased fourth in settle into compared R&D in of in a compared for million of XXXX was by expense and million million compared $XX.X by fourth $XX.X XXXX. organization of SG&A for The was an the was $XX.X million expense across and of million, million the XXXX. million to year, the million $XX.X Total public

million quarter for fourth in XXXX. the $X compared Our million net loss $XX.X was XXXX the of of quarter to fourth

to XXXX. balance loss $XX.X for $XXX the Our on full with year cash was $XX.X in in XXXX, the We compared million sheet. net the year million ended million

to ability our maximize expand continue expand our relevant to our service into rapidly our XXXX, continue about and investing to move customers, capital we we to As our be clinically product installed-base thoughtful will roadmap.

Now outlook the full our for turning XXXX. year revenue to

to closing between We million $XX expect point At and call of representing to revenue the to for Sean the be like back XX%. XX% year for turn to $XX this I'd comments. million growth

Thanks John.

significantly we as As adoption mentioned company made product XXXX we our roadmap. we to transition to forward as being and earlier, public also the commercial about accelerated to adding exciting We are progress we another while a our excited year to look continue proteomic in base end that, single markets. our in cell fast-growing clinically questions. on now open customer solutions deep relevant in believe unique to impact XXXX, we it will our we up With a will large make

first [Operator Instructions] with Our Stanley. question comes Morgan Tejas from Savant

Your line is open.

the guidance. Few you Good And morning, us guidance? guidance is the the most this me, Tejas Thanks upside morning. the details This on first some I and the questions and in for high-end was on wondering you room for get takes guys. to that if range. see do provide taking the driving of on could is low-end questions. range relatively puts the guys tight. Edmond for where could The from the

Thanks Hey, Edmond, that it's question. for Sean.

start here. let's So,

Our rate range strong year continued is fast-moving of instrument at expansion in of of year our a as in with install another and at spaces. a for proteomics guidance of to put the expect least evolution the we up growth cell based plus the grow meaningful XX accordance IsoPlexis forth. in at million pace player this XX% we're And to sales We base continue million put single excited and rate. to rapid strong XX on the do the really

our catalyst least continuing excited end, at XXX around IsoSpark growth So, instruments year. expanding also be instruments biotech. centers academic go the consumable about We're this placed to would XXX a exciting and key position This given particular, our calendar year to be by of means be through. an this beat we'd in in

Top XX the Beyond pharma. that to pharma we've base sold course where – XX of

of in be it XXXX, half XXXX. expect QX While sales over system was as our of instrument this in to product we was the in XXXX, launched

is revenue the be of we is heavily similar to goes, more timing half ramp expected weighted have our the far as past, which the done the year. in toward to second what typically As

increasing XXXX, portion consumable in taking placements, which our also account consumables a makes through revenue. We throughout pull into of significant see more large increase the

the library, high purchases discussed as therapy expect With markets. other a we of As the publications cell leading razor progress as applications business profile new of leadership. financial for proteomic cell which move our This our XX,XXX research recurring to in large key demonstrates really for utility from margin as to move investing least revenue well are installed consumable term as into seek. expand margin on cell outlined we unit our we single call, up the be our we blade at we now. end like of basis we the areas, on XXX pull our cell superhuman single why so indicator higher sets predictable And in purpose of we immunology, signaling. attractive, the are expansion cases This strong cancer and coming on on an used model, per longer towards higher focused upside base through

that this for major The us which vast and goals have year. able trained monthly, salesforce well our these is at this of U.S. region exceed been of and to driver the each as as as A total revenue company key and of year produce salesforce, expectations deliver you some our with far is exceeding important our seasoned XXXX. our goes, results of salesforce end of predictable now the majority very XXX of maturing catalysts? more international the can creating mentioned, are As head have what ability account commercial to

alluding You perhaps also little you're pipeline. the ask about more upside a bit and to

in coming we're is is year which interest relevant of in Duomic year, kind So, acquisition exciting. early have wide half this the service, body a our our development I of sequencing novel that an revolutionary After offering very of as last we call. markets clinically our first investment IP now as in do key customer generating Multiomics second its significant on and generating end our data of mentioned access

have of last prime for a this our consistent year the with the couple this year much service and not to We're exciting, market the pretty quarters. revenue profile into broader XXXX. baking learning using what due discussed there they very customer is we platform base. in again, is for this While Therefore this for to as really services this to far aspect you some revolutionary we is we're to launch I'll half coming in service alluded and so there launch of our actually to, a upside limited in customer two in excited online XXXX. And a Duomic think as then. to stop bring excited what we're business the this

all your any cash have I about split the color current Thank remind particularly where you. And Thank academic spending Great. conservatism, is the you signs side the you can on but pharma with constraints? you recent the not us call, in there. missed if that sure seen of this I'm chatter right now? on on for

And the on the just, you to which you constraint I'll of – market end get the mentioned did say split, one side?

Biopharm, it’s biopharma. mid-cap

Yes. okay. biopharma Mid-cap

maintaining the we're right consistently. So say, you of perspective, by hasn't of that changes now, our expect driven capital by sort been as and potentially one-third biopharma year still we this conservative in constrained for From let's the labs have we markets. what as significantly outlay mentioned budgetary academic roughly broader two-thirds sort

think markets at particular least of market over past and I one particular call factors let's high had for be in import cancer has basis. expanding it years end cash pipelines. as biopharma for an And therapy to from in in an know, couple biopharma cell and immunology their continues in couple about: to think to gene a their expanding you invest the influx

mind I technology. markets is two think allocation of see and our significant, these as allocation of for profile our continue then to the driving publication call share end let's second thing in we differentiated budget key it

don't see really is intra we as be conservative the So, while that there today. may demand in broader it some affecting future,

February lab you meet of last in have on taken side. comment been that from hop improvements or to in And these me indicating wondering the will in been but the operations some can one on trends the chain color that risk, if and on any I recent was deteriorations the there I perspective you the actions supply be And the back I'll that side? seeing there one Great. line. a guys supply from pressure you've signs you've provided appreciate COVID

Why for see don't to impacts accustomed pass about think we But the lab COVID operations I broadly do what's dealing typical happening States to more lab John year. operations. that I I our around been on with just folk to to about speak one the this? will I'll more guide variants. United have specifically

such. wearing whether vaccinated masks So, it's operations as continue getting able or to being and

key So, flip I that's to as we driver, in again of that's let's which think to in our sort aspect one why guide, we our call significant spoke didn't significant as see a year. the instrument driver – the this it

some with especially in course, was quarter. beginning year, coming January, into with are back peak the of to projects our continuing John, the same; for of throughout our how COVID with the variant, of perspective to those supposed the year well? the the just it we as drives be projects And amount the a but the it to our which the have see of lab milestones occurring would've usage customers people still throughout an early guide of the that call we this you there customers don't part expectations as stop after come Secondarily lab around doesn't operations, caution, first on expected. significantly pass for why impacts what let's I year similar from

Yes.

in past. the done so, XXXX what revenue And look we've our ramp should to similar for

heavily typically, weighted the half to second the year, more Edmond. So of

second a XX% of the us. mix and between – XX first half XX%, the about year roughly it's So for

perspective year. Sean that described our And feel so, we $XX guidance in for confident given just from we million gave million, just the everything, $XX full the

we we're March months cycle. strong – we've are last normal impacts available customers regarding several our Xnd, the we of from labs this just guidance back that lastly all over not have and see instruments the do two into think point, to Sean the this perspective to the demand and year the and we end provided at information our it, We so changed most And technology. are impact COVID markets the are from here a for said using COVID budgetary for At continue their our point quarters.

much. Great. Thank you, very guys,

Thank you.

Max Masucci comes next question Our from and Company. Cowen with

is line open. Your

then the software? differentiator for questions. And thanks the customers over from the taking should shifting guys, much of quality capabilities and feedback to you ease analytics How Maybe speak picture the you are software around, any just software received can be side, just of Hey here; in automated big whatnot? the of use, to or a insights future?

Yes.

So, that as when you think know. about being biopharma that sort to our system have weighted heavily that's by you you we’re easy to far market end driven about biotech. markets, what products – and cell pretty pretty as of to think discussed back end just coming we as ability of in Part use, single is proteomic our actually a to and you

clinically look as it, mix, around heavily most the this, call of a weighted that. why we as of biopharma relevant are you and company, cell far because any revenue the far software Our let's a single And part our area hardware biotech proteomic as big of solutions. that’s automation to plays as mix

accessing our of Phase of and TAM preclinical So systems. know sort this that's also towards we data of use of our Phase in as ease the proteomic single-cell weighted kind X, X, more from

can basically that open-source is sort an demonstration software through screen, through taking few tech, and let's trying cobble of to pushing typical As informatic an taking our next differentiation suite, a as to with, the into on data cancer the patient button then we platform, higher these directly come access biomarker pieces and your call yes, far a and say and software is driver their research. we're a conclusions which use of the baked our six compare goes, it a is comparing important we specific of probability either technology in being in think of kind year on for just responder in big when can you downloading to left software understanding, product is of get combining they ten indicator or thing leading that what have go really as or a they today, actually we push has but their it's, samples them or not This dive tech because online kind cell what cell or software samples after as deeper to a is side programs our do people programs twenty demonstration. buttons makes apply immunology let's samples, samples the interest buttons own together, industry. software with a initial together better of your a publications of this is from growth a as therapy accordance we've actually what illustrate, and pretty And five our this of this well confirmed

ease – as software So, why unique in factor, you end-to-end that the instrument nature our of clinically-relevant single guess automation is we we're excited cell probably our proteomic about to that unique have very of our markets. end automate on a use driver

And projects customer of a Great. was and either terms brought they I'm so together in, And those IsoSpark the are curious seven using pursuing? single if just then IsoLight? I in are that's systems all just that's or research far. of of the how for think, mix it systems independently,

Yes.

right. a So, good question, it think, is I

as are them, and surmise at you predictors across response look in that drugs their pretty can is might on six across usage success a we've that and right? get take purchase type oncology of on are hey, very main what that pharma combine kind have response are that. responder And want the of of that drugs five have a to of our going deconvoluting you side might like, with I term a pretty the of like that pharma, on the world say, mechanism that weighted what also a which key literature to or that and of in in longer of our cell wave top the personalized a across product drugs. next labs to more checkpoint you in the things, of sort does of you major publication because that specific lot that, function mix. indications, heavily checkpoint tumor towards specific of this number throughput that, especially If sort maybe to the – and side something biopharma these and But our the last of to just demonstrate clinical with good we've of them, publications, stick polyfunctional makes for super exciting on a we number far are you you it's call the IsoLight patients little in of customers solid the it, a So if a as durable it's heavily look like of to had largest a anti-PD-X IsoLight months, it, focus on the shown alluded major various you uncovering last a are contribution significant more that drugs get lot Again, inhibitor top trials. interested PD-X, the to they of obviously combination where of

And them word It's that you and systems more need I of In lab uncover of there's one is the sort cells. but five like attack it a customer problem. lot one IsoPlexis reference say, thousands trying wouldn't so it's So, to even these easy, super word within running people. sort institution need call is thousands to solution spreading and six. the more own of avenues, straightforward of, just of of here a your to saying, a kind lot pharma a within this many I that makes sort not

Here is their demonstrated utility.

from literature need that high published within time, showing only centers, company, this generating this real the you're data. is own even but trial impact Here you clinical your not major

of which in we're in adopter early really it stage, the in need our stage, we're early you is makes sort the customer when not you in that majority some are places. call that these reference So, of

You circle need of I customer those customer the mean, references of sort just volume know increase virtuous what if expansion of you to that Max.

it. got Yes, Yes.

quick final one. Just

this seeing? the Are Just what seeing still if stated, at curious any would point? procurement rebounded just or have you largely facilities as Omicron rebounded if disruption the procurement dynamics you're conversations be with the in impacts folks latest that's subsided

is related had there So, really especially a anything a period they I there still every was think, cancer wanted perspective, short center of to bit sort COVID that organizational that clinical do and medical a success but in specifically it's need if in pause And of their goals, NIH the has there of growth on December, we've seen biopharma been which want – perspective, of there where the of That's academics, in their because in which with clinical broad rebounded people our have, area are was, indications, their is from academics, pauses high based back and across to it's a with was major funding, of well-known research is something programs. trials our biotech, industry, accomplish diagnostic to super, course, a utilizing was that, to sort from expand of sort on especially year anything the funding not to no What involves procurement. equipment. in in. a that this they because all academic pretty

questions. Great. Thanks for the taking

Vijay Kumar with next Evercore question from Our comes ISI.

Your line is open.

on for may back you question Obviously, about question. impact. here? chain hearing guys, have supply talk guidance visibility can we've about taking Hey Sean you this my been thanks the be

think push have a I didn't XQ a you system out placement.

talk and visibility your situation the into supply about guidance. chain So, this

John. Vijay, Hey, it's

take Let on chain. just the me supply that

the some supply on right last on, well did we pressures present times issues are You issues items. share primarily logistic materials chain for certain for increased and lead call extended on, as prices as did

including inventory. there the that We to second those and did the last in into to our XXXX fourth up without built [indiscernible]. half response of demand goal the largely we instrument quarter in year, pressures, So, was fulfill throughout

Vijay [indiscernible].

hear hear you can sorry. John, me? you me? Can Yes, guys Hi

hear you. can we Yes,

Is Apologies. better? Hi, Sean. this

and stand Ladies gentlemen, please by.

begin. may You

everyone. Hey

some reason Sorry for at for into landmine, think, off our about headquarters. dropped the that. that. Branford internet Dialing Apologies a I

still Vijay your line is open.

me? guys. John, hear you Sean, can Hey

hear can We you now. Yes.

Fantastic. Apologies.

I think you talking then chain. and for John about the a visibility lost supply guys bit there was

Yes.

So just quickly. couple things a

year, sort to supply you we as a mentioned of we for the things, up we some demand. a so just no on and mentioned chain and supply inventory customer What our pricing have end XXXX really basis that build was basis impact you last would did on On impact of have prepare impact. did the QX

inventory in throughout the You bit little second the sort that increase of year. throughout the half of increase see cash of the a

to sort with of we’re execute so comfortable And now disruption. without having in really XXXX we what need

position on is in of about then for inbounds – you. related business Is up here liquidity XXXX, talk like the on And and are now? just to capital cash What of you ramp Got assuming? needs you what expense Sean cash guess, I what one your your I’m drive position sharing fiscal OpEx situation that, are getting margin costs assumptions where the and enough balance perhaps impacts or given liquidity the have are operating shipping hand there a question, a in this. general there here feel lot the right any have you or kind gross about on going you

Yes.

So, difficulties what here. is, first question. technical the I the OpEx Sorry, you dealing can was you question I’ll question first just over had I answer had? so because the was do some to What with first

cetera? impacts are here – on costs, margin Sorry. there gross freight On any increasing et

that largely more we margin driver customer our and revenue faith to mix dip from process. this at because we selling scale And improvement is as a It our I perspective, expect operations look toward get as QX the think to of impacted to due to stage, is will our to margin consumable instrument our is able plan consumable instruments. the split forward, sort There in like of alluded heavily – margin and some you grow weighted by still improvement and by over mostly mentioned, expect wouldn’t do gross expand end consumables. as consumables in makes is be XXXX. supply A to I rev focus chain. continue of our as really leveraged gross margins that we being we we going utilization on to key more makes of indeed XX/XX to time we this revenue have

information later with area. plan to be we’re we’ll – on strides make coming in this we going this out more to So, how year,

strategy high reagents. specific improve has to source been our use quality ability always and reagents to Our

soon. have we So, more will there to describe

as mid-term our the Importantly, recurring Vijay, this purpose about so can Vijay, the we seek. long-term blade profile on easy how and And demonstrate consumer at based higher on will now. expect margin XXX improves razor end and base the why higher the predictable How the the I question that expand you is an is higher asked function of year. and sort of second of margin model and towards of to financial this the instruments math we this to the think installed really with pass This we revenue John… focused we’re consumable revenue, the investing

Sean, assumptions, OpEx the On yes.

assumptions. On OpEx the

don’t why So, you John, go forward?

just hear I’m to Thanks, wanted on? share, Sean. do Vijay, me, you back

Yes.

so much. Thank you

Okay.

$XX So being technology in company. so million is for to investment associated reflecting XXXX future reflected team, with expenses platforms, commercial publicly OpEx, full OpEx a – infrastructure traded that’s addition and our the year the and our approximately the continued in

and of going than the drove maintaining operational that spend, a that we about are So, one, year. points commercial forward couple rather success increasing last two

of by we projecting XX%-plus So, year. now generated growth growth the cost three be this today’s productivity business our of guidance last And revenue in regular force our will XX% evaluations growing revenue expanding doing we commercial Two, around the course, had success with year. drivers.

development Vijay, make that’s which the most say, would So I that to Sean we allocated. our seek base course and last requires razor commercial, to sure five do operational that described. blade the is path model capital to continue within our the next efficiently and of profitability driving just And expanding thing installed that years, on

that basis? a – to as terms a perspective or a is OpEx growth yes. John, or dollar you when in percentage on spend, that just of is $XX sorry, maintaining million said clarify OpEx And of from spend revenues that

Yes.

I think of in terms Vijay. absolute dollars

bigger one question you. for helpful, That’s last maybe John. picture for Maybe – one And you. Sean

is, industry I Cell broader when at we adoption in or cell technology at see the Maybe happen gene traction before interesting initiative standard but talk your look becoming Now get a it’s I think found needs amongst of about you to therapies. an could Are getting become that Superhuman customers what a questions I the one standard, IsoPlexis, customer are biopharma your you platform initiative. Library interesting. base? your this from what now of kind perhaps looking and

yes, to three sort sort years. as topical Vijay us we five through how we plan for think So, just question of a for the of

doing, is X,XXX looked times, even through gone to what validation you course of development a just in two of differentiation X,XXX methodologies. that at makes is as you’re of is – to we become so and the had you the or and pond I do go think standard, places the of the and sort standard other part commodity gas on that literature the set sell question have a at you One, interesting. to we’ve high validation what and And need also systems. is this clinically need

right? about important drugs and year today, I showed function aspects going was the differentiated to measuring our on proliferation my have around care nature working, pharma about think see cytometers that immune that surface really what we the you When I the just clinical publication after have much highly of And You about XX,XXX make. immune medicine, when pharma, last do hundreds – cytometer is you indicator of aspects seven have nature cell, that immune flow I means a means, system us, – and What medicine XXX Journal publications the flow is the ramp profiling a promise a validation care of standard IsoPlexis proteomic – is that flow. behind for us where there’s go immune cytometry tour place or part, the becoming to leading you form we that’s that right? of the what system of us relative And relative solution personally a cell than Because in this of if talked very means the is even of you sort to of Oncology – Clinical systems. broader response we versus Every have flow ahead use just IsoPlexis we right? people walk If right? this flow Because to time activate systems. pharma, profiling. we the to the play a right?

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of We’re standard. cusp a on the being

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every we to basis managing leverage, what a do thoughtful Vijay. alluded starting see John sell so While cost sort the are we that that to to in region of in answer, Hope, sort fashion. of of as sales recognizing

significant we're in we see So, us years. very few the excited of about and everything next ahead upside

guys. you, That's Sean. Thank helpful,

still line. we Operator,

Yes.

Our Souda Leerink. SVB next question with comes from Puneet

Your is open. line

the Thanks guys. for of been but like it question, have the looks covered. Hi questions Yes. taking most

So, wrap technical ongoing, to up questions difficulties with my the I'm tough one. going into

application First, follow And IsoLight, for and really I field technical number to ups is efforts if trend ASP, be to you the on that. – duo, could and know elaborate do the for you a Sean, ongoing you and IsoSpark improvement. around then, product training expect marketing of IsoSpark what improve had

last gross stand. you you So maybe on could mid-XX%. one then to efforts John, margin, elaborate And low where highlighted if for those

timeline elaborate margin of you When maybe that? change what's expected we Thanks any – levels. And that there that? instrument should sort you those the have could So, is consumables for gross expect in versus guys. mix

then So training. let me product instruments with and related start mix ASP

So as by discussed, ASP our Puneet, the half of is over – product changing really up mix make as you as our we've IsoSpark revenue. reflected

direct and as consumables, buy razor So the expectations half leadership units through of as of we upside. consumable an our revenue. our number, to with very to ASP, with now, someone's and discuss on duo in IsoLight, this driving see more revenues we look really over potential no as base. sales, light we the of while today overall installed purpose have as sort right blade expand give or side recurring the consumable then previous and us And offering line evolving spark, significant whether that we're IsoSpark there's shifting and ASP of not going we do as goes mix instrument to IsoSpark really the pull give a differences customers, position, line the of we're the we're see guidance buying with spark we at blade – in from the And the far and providing spark evolution to between it's the was razor

the is the consumable pull target expectation even our in of sort As mid-$XX,XXX needed know if instrument, we mid-term. through our of capacity high for above,

but call Training, So strong one how when training how let's a also we've that's a of, at it, as we least we aspect did say, we're and hires, really created crossover perceptive round in is many did, – course, new now so BlackRock, with talking of about digest let's average year. our ASP. we significant – built of XXXX. QX this showing, you for early you When when expectations kind

of with You than know have to key like to that but months complex a technology applications, even and up these end more may sort in six you ours, need nine ramp that you need has that. market, to

was field. We what you an you really training so, training And did in in and which program. it program, test, basically proper our internal invest train, is you we then you practice, you practice, practice term the you test train, you

of type pull consumable each pilot see getting that fashion. the in through. the person sales the do, significant the the communicate sales value the gone see able so product That need, we've ability aspect clear proposition, board. essentially is a we cycle team sales do quoting What of really in sort is the the in to philosophy. being instrument up to the then cycle, technology on what the also within we able you success being on and And IsoPlexis to commercial get training, understanding that You speed in balance we comes to the can of which

educated the that signaling more to many tech business. and come our to astute cell So, that especially needs person cell sort that's do, literature. fountain month there's core even training that in as the on tools strides training proteomic a sort so single really never secretome new right? be and Because of folks to Duomic most training be big always on that quarter, in There's single no and of sort as there's the stopping publications that out single stops. cell lot online, of made every just analytical a need in We people unique just new come

John, maybe So, appreciate two you third. those And let I'll questions. answer the

Puneet. Thanks, Yes.

of know, the gross in in the So, drivers answer gross our key margins one five plan, question, timeline, mid-XX% no. next – the still the you years. of the mix. change We're margin, is the in over plan, tracking expansion I the is, range as that, think the And for – the your long-term any

between What think service numbers, revenue was second the end think our obviously, mix and the revenue, of consumables. XX%, part some a your the favorable you heading our that mix XX% XXXX, at that just be we you the from XX-XX of – context, for some and have question consumables, is XXXX by but instrument, instrument way I XX% consumables. XXXX will roughly more split is trend consumables. positive or look And year-end toward instruments

increased XXXX. about were sales sales our our in of total XX% and consumables total in about XXXX Our of XX%

that do expect we trend that forth. to see impacting timeline put and continue not be So, again

Thank great day. and no further you. a questions this There disconnect. at have does time. are program the This you now Everyone, conclude may