IsoPlexis (ISO) 11 Nov 222022 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to the IsoPlexis Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please hand over to would now Mendivil conference to like Relations. I Carrie the with Investor ahead. go Please

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

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

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

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

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

complete our please whether update on statements, projections the XX-K filings broadcast, Form turn or Risk is a call With I'd only see time-sensitive and any of new or call Report financial This the or our to like any contains information disclaims forward-looking future in November list filed Securities obligation of by conference Exchange the over For Except description, to of intention XX, and the or live other as accurate otherwise. information, XXXX. revise to Annual XXXX, events that, because Sean. and as section Factors required Commission. law, on IsoPlexis and with March XX, more

to to a operational, from bulk single-cell today's prior development the this $X.X third blood-based the to achieving third reduced update I we've proteomic a morning, outlook an commercial year, given XXXX year, Good sustainable will you, up growth. over on Thanks, X% Carrie. cash. the operating expenses profitable, Revenue commitment the and for space Then to look of financial from On our and some lay the progress for the for and remainder million, call thank call, the our quarter and of of with John foundation made on quarter closer was quarter us focus for results lead down XX% everyone, earnings call. at turn XXXX. joining the I will our in conserving and first provide

established time, on two-in-one of dynamic data. been provides We'll differentiated single-cells. system. difficult, same resilient bulk system. users increasing both macro expense and At serum custom Europe. same able be itself these a to authority value the provides access analysis environment, that's solution system critical and While IsoPlexis' chips proved protein on since dynamic solutions in our team demand increasingly early will from to control pressures full lab in time, IsoCode lab our despite immune to around and CodePlex customer start with customer responsive recognized cash signature IsoSpark access save create IsoCode specifically inflationary the conservation the challenging duo other customers Voice and and unmatched has that China The in as the critical affordable focus. difficult a any an Q and Together, to single-cell offer labor assessing today are a proteomic in existing signatures cytokine getting of excited the

which to the reduced QX. realities our collaborating a way to over appreciate to XX% in to to This in growth further time. our same to with quarters. environment, operating commitment shift John generating total us align expenses critical will this our to has continued the reduce this The We team EBITDA path we commitment testament make find While positive conserve markets will cash have to by depth, hard greater We enable at of is the the all the by from team team happen. time workforce done expenditure with coming cover customers and the demonstrates found the as to at still solutions. the a resilience to capital and and work also deliver XX%

contracts and our during instruments, of to customer XXX our bringing associated customers revenue from QX. have saw service of quarter, bought systems third instrument with at XX% units total closely the the increased in our sold to-date sold consumable as total sold XX we are purchases well the in multiple our instruments. XX% we which instruments, from an uptick for base more as who pull-through units the Looking recurring QX providing

and We medicine in also ecosystem. are products, States playing centers early the momentum cancer in now have building our in United placed comprehensive role translational stages, in products, and a of the IsoCode XX% a our key in instruments CodePlex

the may the is for not for back quality vaccines critical can by quality in in immune antibody unique critical years only search critical full cytokine large the for set cell, flow providing against the this in fighting ELISpot but potent cytokine a for researchers time. bias eliminate immune for field, not also bias researchers our and a the drugs, helps number targets. popular cytokines of they one the immune first therapies response, cancer, well-known difficult signature finding IsoCode potent on intracellular be cell namely of For immunology has only critical termed swath limited detecting creating response. for fact aspects in IsoCode the what which limitation solves systems, and that This of or a

In enhancing a the highlight therapy the persists are compromising that we leveraging addition interleukin-X. marker signature response cell hard-working what highlights to our "quantitative through of Washington customers our in publications. immune who goal the recent customer signature, full is cell cell importance Louis long-term every reveals CAR-T Communications, critical the with IL-X some quality aspects St. IsoCode University Nature expansion of of provided a, of therapy of Here the engineered of functionality journal on robust confirm functional genetically full IsoCode The novel induces modified potency." these response. uniquely without

on press the development end published behavior the in leading allogeneic vital manufacturer, highlights our On and in manufacturing. development as a a detected characteristic with collaboration Medical the Technology. cells IsoPlexis who signature, platform Frontiers in polyfunctional and is XXXX, immune of contract large This product other for functional of impact for Lonza, released spectrum, functional cell T

the is critical our therapy we While view growth. recognized world immunology cell as IsoCode the a fast-growing in key cancer solution, our to as market translational

offering immune in for XXXX, customers have in IsoCode and each of cell event proliferating a expansion surface multi-cell us unlocking our This therapeutics. checkpoint studies be We these pointed the of pharma have critical to large the Yet of, on markers top available units and in been at inhibitor placed critical translational our and be to cell believe per featured immunology pharma and multiple for increase throughput of in for units it have leading many in product cancer "full analysis with expansion. variety many is customers our quality to further response." will That focused signature pharmas. medicine an of next-generation type serving is

bulk walk more than value proposition face of IsoPlexis is necessary to Our tested access track the away, core product a XXXX, game to readouts and CodePlex QX is We team to signature the proposition the release the ever. CodePlex are quantitative, Fully the large today IsoSpark and verified of in yet Q which customers. changer with early value strong. unique for alone and on reality our still development sensitive for will and customers, product be labs

overall large Our quality is has the questions the too proteomic to Q, blood we starts signature are have those yet, High and the The in it full Q We for Both hands-on quality, standard not like labor challenge customers aberrant cells response, but Q blood tend completely have quantitative difficult few what fundamental know technology difficult-to-use the signature takes of with low that And response? days How expert-oriented for would proteins. and in predict or to that can quantitative change And as quick. ELISA training quantitated. talent. CodePlex systems. signature, walkaway. two IsoCode the a revealing customers immune workflow circulating NGS-based our much detects leverages finding same Labs solution, to ask a performing? quality the cells, i.e., it products to CodePlex has. trained required. to on indicating high And for immune concentration, are on CodePlex multiplexing, it, go concentration commitment core and their throughput critical proteins pandemic are customers. is for that retain Q quality, the our the In of no -- really labs in a our and is labs pipette immune not. them. with IsoCode CodePlex time. quantitative gold Q with avoid is what focusing couldn't bias an blood. facing large is Any large proteomic necessary High

for survey the IsoCode would which offered able to the leverage one one found Furthermore, blood, much pay for protein co-founders and proteomic the the mostly either both CodePlex system obvious. leveraged CodePlex what bulk would that signature Our existing a directly than for and of other. productization very is all They XX% They compelling. of in our a vision. as we of more with also many system, to takers analytes blood protein survey a from the came a lab. users. cytometry original pay see conducted system the up we they solution clinical that pointed of small barcoding system Q delivered amount XXX-person that CodePlex any Q by be users flow or

reports. with the cell covering both a cytokine of now excited published therapies users our anti-tumor of Users equip single-cell their the reasonable data in quality our IsoSpark solution. enhanced We the and solutions Shanghai highlighted instrument The angle large like are lab, protein IL-X blood demonstrated questions, as the response which CodePlex leverage at answer our products the bulk from Hematology, top that immune to signature, WashU in single-cell to to that persistent team scientific for for one very Institute system in cost. similar

point, the slated driving is gene on to matched for run Duomic end operated of Customers made by product, at a at release on will have number progress to proteome a and cells also And IsoSpark, late have one of this the XXXX, year. be Duomic team readout. small for customers increasing aiming XXXX While requests we offering and our both critical enable greater us the the the throughput expression that this many send still value it further in system. on still very for a barcode we're is

Board I Luminex served Finally, member as sale Homi of and Chair a of DiaSorin in to our most recently from its Officer Executive Corporation Shamir Homi through XXXX Chief Directors. to welcome the XXXX. of want as

call the large take be invaluable our in to stage will for and fields on his I businesses insights will now we We will turn the of into as device next financials. use over scaling diagnostic our science, life the John detail more journey.

Total period. was revenue of million $X.X the prior in X% from quarter up for Sean. Thanks, third XXXX $X.X year million, the

we started the prior quarter. are made was to We reorganization have our in $X.X the $X.X see progress decrease revenue to impact changes. following and X% the million Product have of encouraged an these compared million, year by

business Our revenue by the are to driven partnered continual contracts recently XXX. commercial by sold instruments, the bringing two consumable to Cancer Center quarter and is number Disorders. the instruments recurring compared customers. the for quarter The highest this in we our Blood increase for $XXX,XXX a our of sold stream. of usage in MediMergent items: team Notably, was our we and $XXX,XXX significant total quarter, customers, another from service with increase sample-as-a-service sold which encouraged revenue, year of for the and We seeing was an Service to revenue third number XX prior and are

actively into revenue, are and we samples QX We throughout and processing have this generating working started contract and on XXXX.

is $X.X margin for to quarter quarter of the was Regarding base was XX% our of are of the in as take service Gross million third compared in of during to contracts. installed quarter base Gross to our the period that of the third XX% matures; contracts $X XXXX continuing XXXX. contracts, third million the compared paying same installed XXXX. the existing for focused on instrument we profit rate percentage service increase

gross leverage settling the expand and reach we total base range. near-term in expect consumables with to and of revenue, range higher margin continue percentage of the As eventually our mid-XX% contributing mid-XX% our installed instruments, into the total increasingly we to

and includes $XX.X contributor and expect positive the CodePlex in Total to the from to second third launch XXXX. XX% quarter also over were year XXXX reduction in We have a the million representing what by margin $XX.X our quarter first expenses we the in reorganization, quarter of third This expenses expenses second decrease reduced a a gross a of our In million, line in quarter year. $X.X half XXXX. of be XX% restructuring $XXX,XXX about in for Q the second the the operating the of of reduction of million prior quarter, operating we in quarter. OpEx with discussed second XX% from the resulting the

previously to expenses be and have operating range. by year, $XX discussed, we be we to approximately in As our about the full-year non-cash the end stock-based this XXXX restructuring charges, compensation. million million our expense excluding bringing operating $XX $X for million of expect quarterly This includes of and depreciation amortization expenses,

that now, cash Our hand with runway third million the in quarter ended with the cash into XXXX. XXXX the of compared coupled with for have believe third strategic to $XX continuing in mid-XXXX. million net million us sheet. provides the was our loss on quarter of we initiatives, $XX.X on quarter We We balance the $XX.X cash

our to full-year XXXX. the for revenue Turning outlook

Given now $XX.X for performance macro range in current environment, of annual revenue mid-point. with of million the translating revenue along expect the to at XX%, XXXX our the be year-to-date, to XX% approximately we to growth

I demand strong technologies, We the for differentiated what and Sean customer mentioned. U.S. reiterate in will are still seeing our

have what to like we back based very are Sean long-term the on I'd on turn to -- optimistic comments. call this hear At our customers. from We closing outlook for point, we

response. be solutions, of to for and as the questions. cost really translational without Overall, team. been our for for our the ahead. the changing change system life Ease am open of organization. for that, Q John. pitfalls it IsoSpark to Thanks, environment, we've CodePlex large analysis, to I growth We look inherent a And on the with detection and in same working reducing the of exciting delivering for customers resources the typical signatures our delivered IsoCode low-plex would while forward possible medicine to in we throughout move going thankful bias the quality team better. now to solutions believe hard ecosystem None workflow and to We immune are the avoid create lab of immune customer's continuing our significantly drive up will the value to we

our you. first with comes ahead. [Operator for Thank Instructions]. One it question. Kumar from go And ISI. Evercore moment Please Vijay

Hey my is guys, this Jordan. taking Thanks for questions.

China year. wondering talk in other from demand customer headwinds United you're the I the into if maybe like seeing just you what seeing what any of and strong about of could talking States. the was parts Europe. were You next about potential you're Thanks. Kind in world demand and going

Jordan, Hey Sean. it's

what So are the distributed the I asking regions. are various is how think is across you seeing we demand -- how

majority So growth strong the from yes, That's quarter. we of the this what in see the vast in saw U.S. demand did you

repurchasing a signature. the For differentiation customers purchasing or guys us, that from existing a instruments. of essentially immune you lot our the more of I heard numbers comes of know our lot

for So us. I Europe think from validation perspective. exciting difficult a was that's

just for made across just and of which pressures, number a John just as less reasons there's there's some equipment -- that. think I think financial technology have think I the a high alluded of priority Board I price-wise. to, But purchasing it's

out to consumables just our ability around, seeing leverage is sell a well to based in us, bit frankly, QX, working demand. team APAC, just I get been to excited instruments, to more a for look, I we're hard. I think on teams and there. of APAC of For end devoted about at And terms really sort there in -- opportunity, the FAS in travel light as what seems perspective, There's the APAC, of our to customers think, think more from tunnel the having be now, -- obviously some people right. more We're

seeing helps I wise illustrating hope So distribution of that what sort just the in we're across world.

with of Definitely. I and about you what your launch. the one competition CodePlex? timing earnings from And kind customers maybe hearing talk Could Duomic market appreciate between you about Duomic more. spoke it. and difficult you're the dynamic, Last call,

you're of your for far at timeline. see kind are to an Duomic were And expecting on wanted as margin what guys and where as the launch the when margins. overall just see assumptions company CodePlex you So also impact to

Okay.

-- Sorry. I it's connection. missed our maybe

I heard We'll of it. so most think going I'm answer it, start to of most with CodePlex, I to right. try

why the Q, So it, the about and if for we're think a organization. it just CodePlex CodePlex terming you focus as is

over brought So terming large a a multiplex Luminex to or maybe there couple and right, basic there things. multiplexed highlighted, to like single-cell was they And became of to validate IsoCode. it as It's us systems we're leveraging is workflow. was things essentially readout, the bead-based like do we from own different signature existing we I damage and important our it we for the something use the huge product obvious samples a that full-fledged this had to just systems, really And the -- do wells these and early right. recognized of, the when to to the it. this kept and XX it's do market CodePlex right, collateral how And tremendously, with in developed an own that to not proteomics -- heavy other our assays it worthwhile them validated just first this I just customers, version our access and systems -- these large like be fully, line between and automated going do difficult were using a ran before And its think or IsoLight. team did super was Spark we or call it a workflow. access there's it call right, and XX like couple it of product, out create was a XX original our we started you about to had right, the years; years, let's just there's really sort with own of readout, things just that there's wow; from right. be for -- was who we're mid-multiplex. run easy stimulations on essentially let's in understand we lot just early we barcoding And in like what just the plex, triplicate, samples we opportunity, signature wells they the Q, singlicate. put It's over the now difficult involved. call difference difficult, to internally. more system, But can for And We workflow per in it's that XX but the it do call And using training like, -- existing system The it is universities. field XX XX, our it effortlessly barcoding they like version. the when in to you're able all need version let's is

to triplicate. our middle able XXX run to run for super the thereafter, soon to but wells only all this. not year. That's and probably per these of who do us, do going assays, be like be supernatant us going customers be who you're only exciting of And next optimization to things and serum to that's able in not And run

So it's that market of technology. for type a big

that think can the go something and right period, up multiplexing the offers takes fully and of about to automated customer a about still you data state and big value you get hands-on quality It's now, a prop. exciting And is full use, free to use. pipette just just that's totally proposition. out super just only difficult of you -- of company, that's And to If can of signature from landscape, that's something think the that, And it if the at hard large that labor. perspective. time, or the day the look trained ease we're affairs a super retain just it's

now. we that's they'd much think more I shared more in value that pay the XXX-person and people justify if think a had kind the in system the Spark, for our right. easier Q much CodePlex we're survey, CodePlex delivering purchase platform -- it's world platform obvious we're But the second the you what said to it's IsoCode the when of you have on you if thing right with and a of and about And one. the

it's right. excited it, excited sensitive. data. time And because we Honestly, quick. helpful helps. right. we this realize I two-in-one, coming love Customers the knowing So forever, about quality, value it. going launch? out it's get it purchases as to why quantitative we're internally. they're for termed used It's just even think are we've long lot the is and that We the It right, more It's, is about customers a love Spark a because of data, for people

we So how on deal and that's the that see CodePlex progressing. Q

They're been XX% our OpEx. as couldn't our talked of about, dots It had to we single-cell? able genes a for to when very Duomic, data Look, Duomic. always on to Duomic we comes different. had it of now cells even it's that taken arm sequencing -- in required just this worked -- type down developing had are connected. honestly, signatures customer at small; that's It's very we've People get a the us never is cells. at that want then from -- data the seen, And time presented plastic. we out, have people happening was down if tell an touched that skeleton lot whole first and team same when of that connect the hard it. compete three that on on we data. There's the we didn't RIF, very cool. to want you still why the the been So really we here the Immune from build calls cytokine right. we And to call from do market nothing a awesome there do look out commercially We product. It's took reiterate right. protein we sales a ever crew differentiated conferences. to We We been to

we're talked plan does for system CodePlex. which mainstay, exactly IsoSpark That still becoming we're the about the what it. IsoCode So release we product is talking release a later about XXXX call. is to earnings during system. with The going

to exciting top system. We out match basically we made to based offer have the some increase exciting, is and barcoding, these feel which the also Duomic's And right, underlying cell the of way some Q throughput, came Super this that. previously. of, it's products, on going come hype meet product, sort out in an going I CodePlex to to going conferences on IsoSpark. in it's we on be one of to that during the progress guess,

we're about the So it. deliver customer have. that's with how thinking We're just trying to that demand resources we like financial

So helps. that hope I

I the right? think, it's Jordan line, -- Jordan on

Thank question, please. Cowen. Masucci for you. from the And One moment next our Max line it comes of with

Joe Max. just incremental this led Can you to to seeing what's you're is revenue the giving for the guide? implied? this you revenue up step confidence QX, in quarter last And Hey, that to latest headwinds versus the speak on

I response Yes. we was this think And see XX%, I I to I our just of by mean reiterate, grew down continue of we bit, last to we went our core question. right. X% revenue OpEx with is what sort customers course. your over think guess a quarter purchasing, to

we've have because network U.S. of we've some larger like, the considering And let's of we're biopharma the -- in the I reducing and and especially, during let's have and larger is strong these larger always a you a it, get benefits operating we distribution of APAC, Europe markets QXs, who also look of full a some come helps. of, difficulties the So just pipeline you companies being repeat budget, call obviously in for the and now are face by companies. can always our think emerging seen the typically, you what back don't users across that's are. force into because customer what just say, And That purchasing. a that's to still see capital of, who lot in biotech expenditure QX. the but in driven And realities

academic I see orders slew the from started think of we've to a right. purchase world, already

team building over sales to QX service in just really think, our more our that's pipeline one over end carried of QX operations customers I frankly, of to the for leaf contracts. pay earnest in And turned initiative and team our more new we finance some So that more started at that and like QX. as getting was and

you're So contract to see annuity. starting the that's that. service And in

service starting play that see to You're that line. out in

So is of why of just if line? I all of kind in, put factors confident numbers we the the in we John Is sort question. think that's on core that feel out, the set that

Joe.

Joe.

But Hey, sure, excellent. that And XXXX answers that around growth thoughts yes, latest quarter. about last maybe talked consumables just you your for XX% the in it. then,

for So like quarter consumables what is I'll our say growth is this best consumable ever.

I reiterating think A on said what things, few the maybe what is of call. lot John a seeing right. I'm we're

of right. our we than base. installed of where concentrating in So use consumable annualized concentration XX% on see that a of a there's quarter have, customers an maybe K our kind pull-through, year-to-date on And over less we basis, are spending couple hundred

couple good where States. the a feel can up, about. things pharma there's and of we as pretty you like like ends lot guess, we of in a at think Maybe being at So throughput between least biotech United driving concentration. It we're

of resources. seeing previous heavy years We've function demand function of up just a we're not like And States. able been interest the customer the in expanded with have as installed more systems, not have wise, our and a been right. of that as in a just pull-through. keeping XX,XXX, throughout seen, base users a world, United We trouble concentrated to -- and set we've we've coverage you obviously a there's coverage more in that's this just like It's been resources hit year, perspective perspective, from had XX,XXX the guys and in

thinking to our customers on we're high what we our key tell of all and So velocity about applications system. and killer trying the stories get out one, have publications is, and always all the there

But especially think to I but to coverage, what about increase and touch customers two, have invest really the internationally, continue to basis. on the is really that going we're working a right, pays really just hard to continue where We're customers obviously in world, -- to more to invest make around with hear that because to our thoughtfully the dividends. wise say going we FAS we're regular real distribution also I'd think somewhere team going happen. it our sales and to who is continue to That's partnering headcount.

So that -- customers' where our indicates at are our of I heads and kind heads think least consumables. that's are on where

just in the where the there's some level guys going Are do forward? and then, today about reduction expense RIF. can a that humming organization terms really And are you the There at quarter. feeling progressing really start And think Great. stands lastly nice you of in on good you numbers?

hard, One, worked this. XX% the OpEx and those say XX% down, down. I'd right, headcount taking so team

possible. that -- the ongoing to like as Yes. can't Maybe DNA that’s feel thing. time, throughput see we OpEx, just actually going any that from confidence like side. reductions the, frankly some our progress in Q while can some of a And is some that focus amount finance large taking pass just At building basically thinking what way trying right. these things. reduce mean have, same about team as obviously further to are that we're away. we our into headcount see -- able about feel the there's digest the cash honestly, then, great progress of I on much not tools other look, down on that to is and is -- base operating little to revenue, can preserve we OpEx. So on QX a We pipeline CodePlex these level what a these I it in grow reduce to implemented is we've feel, to on team you so of some right an on already our there's John some do reduce ways working -- But expenditure commercial basically to IsoCode OpEx. We of be things. that We two acquisition of Because cash, to previous with IP easy coming you easy OpEx focus And a not bit stuff.

we're you of thinking want do John, just the about? So to of some things highlight sort

and OpEx OpEx. end for run by our our was maybe of this QX it's Joe, the expectation rate to into largely the year, And what Sure. for from $XX segway non-payroll million

So Sean things. a couple talked about of

the would renew rates, back -- like in force, April you we we'll We talked to see on, out the licenses, there. there. and substantial reorg renegotiate, execute continued one so at about that, we throw D&O QX. to back start If to continue savings that you have to through we've software to renewals, a of and if go lower just is some we benefit things went I'll of when that reduction go the in

those in services talked we'll that fulfilling have, actually continued the to providing the the we I'll team mention those reliance Sean service thing So providers internally. third-party And a fourth from is see And the start quarter. services transition other of internally. talented to just more on about

that So a creates all of lean more and organization. and efficient productive

One you. our the from it of And go with Securities. Thank line Souda Puneet moment for comes ahead. SVB Please next question.

the know first the My you that taking of lift Thank strength I you question you we'd with my in obviously for Michael the consumables, step-down. was the what kind question. for gross for I'm mentioned on margins. Hi, margin. just expect wondering help have driver to sequential has to do Puneet. and

other any if that sort should in mind. of So wondering I'm keep there we was just dynamic

think really that down Obviously COGS but the like keeping that case. -- cost as Yes. in us we inventory It's at COGS. an actually strength in asset. I of this inventory, the John not mean I building look we at highlighted

new QX. buying ASP I which drop the various I in of partnerships came were dealing I more so we're partnerships, really collaborative slight call for new exciting if about IsoSpark couple just in think places think those customers and that units mean exciting think of part systems a confidential. where that with that systems, was are people I and applications and about with that a our think say multiple it's that just I from, side it testing you other can't But because the right, was to in enterprise I buy would discount there sites I much we someone will even hit in same it of a slight four strength, from at think order sign I -- there's to of is reduction drive think some in GM. that's purchase for units But that It'll ASP customer. time, saw same for ASP. be negotiation the the the And and hits one while was to and small system. But of there the course, does ASP a are various was a believe orders the labs. where if various you across;

of installed the to want John, sell that And that N or you across do sort just nature our the to we that? of so base. the anything add as view we number of

Yes.

accounted just in points little ASP maybe Just QX a about that bit, quantify in mean for margin. I to XXX basis differential

see really we'll the I'll on in going our rate our increased decrease and our bit profitable which So just about us margin sales year service highly about the really about contracts. thing focus And talking that quite a think our we going COGS, run internally that gross you forward We've about so in a as last consumable activity talked incremental say commercial from expansion team and improvement ASP, targeted next and maintaining gives and daily to across mentioned start those our reduction maintaining go-forward, the forward. if and confidence for just business. accounting as we a and plan ASP. contracts is sequential We've

then thinking any offer And Great. Okay. if was you're wondering Thanks. what next could growth about year. you color I about

might Any obviously, what a XXXX kind reset. thoughts early of this look? on is So year base

Q the about and us selling feel product, really call. got I an who what Q new but and CodePlex it's reasons. more of IsoCode XXXX. We're your to with this conviction we're existing it and necessarily you as of range been not we things, but kind about also various have not feedback systems for of for customers know how on good think we a like adjust for eventful has this. guidance said, to just It's of our any you as this Yes, plays want year Like year solutions got our IsoSpark about to early models waiting -- way. CodePlex guys for kind all not the providing customers, we this been doing But leaner on

to more enhancement to have on we still by improvements the product there's learn. as CodePlex sell of customer having system. IsoCode able and of IsoCode the in lots that same IsoSpark the now We're voice well being think Q around I as

side. to And think So I partnerships from about -- us. sort learn that's and the And about just mentioned, as think perspective, these internationally, excited what also that. especially at the OpEx that we we think year. as number just from don't this revenue of an to for more continue give We just I We're to more distribution mean want does a through to think point.

a perspective, that OpEx the out on we're proving I think from think focused John as year we're just right. to what throughout That's positive. EBITDA on, really we're mentioned, the I thinking path about,

we super-efficient in as really that around use our we various to And the with John improve operations improving again, edges we It's there's like licenses. productivity. spend while time It's team. how just, automation being about tremendous our for talked our productive we a how that? So around a of those development at -- do the on. amount lot and same improve well expenditures, the automation, money commercial we're increase levers And initiatives prudent margins in consumables. efficient gross software And have not It's do we and about. to as being the getting very and said, as we just

like think of at trust. already we customers how the look to that know the already something going not benefits the be around And Duomic benefits some the year. already But there's we excitement prepared. end to we're that's and of we there's trust So that going it. be at -- It's and kind Spark again, and

So that's the way we're looking at it right now.

the guess, if one you of I was install instrument leading could service about analyses I customers. squeeze sort wondering if Great. any, I indicator eventual have to on be if more revenue. can by adoption service And just a

your lab, if eventually bring do have work As I'm not you there. they'll comments you for lab. their it own them any sure in to

an large like produce team right, into Service that service same our it's choosing instruments just we've has expect applications combine historically one amazing for which the continue. the field. been been also has funnel is out of always seen sort the service QX thing, us there we're we in offering, -- -- business pollinates, to is from of from their in and delivers and that always and which team, been bulk. emphasize as service We of we other pharma, Even to to reason to our own with what run signature easy aspects differentiated, but right, a nature, now sort with also of right, pharma that's in right, in service contract do single-cells data A add that aren't that many invest win want virtual instrumentation do in cross relatively labs, pharmas. a this that the lot immune use, and times,

that So instrumentation we're as driver always use going help to drive purchases. a to

One Savant Morgan it proceed. you. question. Thank line of comes moment for Stanley. Tejas with And Please from our next the

guys. morning, This you Thank good on for Edmund question. is for Hey, Tejas. the

Edmond. Hi,

consumable Hey, performance circle good morning. wanted in on strong back the just your I to quarter.

easing on Some the see trends pressures have and you're customer not whether good starting I chain or wondering of that sites if destocking there start the connectivity and at the peers noted the supply the stocking with have visibility as slightly. inventory in to space instruments. was you trend

Yes.

be just just on time. FAS little blanket are not So medicine is basically this and -- a full whether like when of they're using the Edmund. leverage -- blanket fulfilled. order More like usage order, term not more -- has probably and it's to I let's if say, say, it's businesses. our we how area the I'm understand a sense, what that And translational people translational bioprocessing We makes use, based strategy. world's visibility for on is that bit real medicine, team versus produces our to drive going -- consumable buy when, really But that and we occurred. have, And a bioprocessing would things or them use, know customers let's is expert and

no of lot those not QX. And it for going We example, into have whether not if, may -- usage. a or there be or is

that usage, consumable be other far in we're as of visibility. or may model areas. stocking/destocking say helps and for happening do little sort as the of or Though us different understand destocking us that not So a issue of a may would we issue it's sort I get bit --

XXXX XXXX just you on But that took Got your -- XXXX circle implied don't how about give want it. And this previously, yet. a XXXX you higher sorry, XX% in the XXXX. XX% as thinking and the year-over-year to substantially XXXX. growth Street -- than rates, that guys expect about numbers And to to had guidance you're then growth year. back said Understanding you that just guys growth be

how guidance these the new should juxtapose given we XXXX? for comments So two

There a just some I noise, that. background was -- of Edmund, bit little missed

the ringing. Sorry, phone

XX% substantially higher this your your last comment implied growth year, versus the XXXX of previous in is rates So which guidance.

XXXX. I think growth Street about the in took that XX% year-over-year a as

in now So we new things? how two these your of guidance, juxtapose light that should

question, good a right. it's No, Yes.

the customer. The if second offering think with conviction to, the the frankly, a we I product the think we're about on go first run down run just XXXX, a on understanding this in the IsoCode. time home where IsoSpark voice of home is lot product you it of comes of a -- --

QX CodePlex an we a QX with into perfect bakes sort focused for that getting have IsoCode that the on the in be idea in IsoCode first the to something signature improvement Spark, focused its we to going of go We're have to large just think phased the people -- and And not in we be things demo as they're the going system, already don't just, and honestly and is of easy-to-use, it's all which data, push are to their that are we set, Q. they like like them, work QX, timing and we release approach those systems going CodePlex. as of in we're this. know that to like; guys Q, focused the we a bunch automated have know on pipette a like So these use want with a we're starting system, largely QX that they and think as robustness, with hurting But CodePlex are CodePlex lab is progresses, use that lot first, operations. us it IsoSpark as then of of with that's throughput right. And vast our customers where people I universe phase but

monitoring that immune think about customer from it's going same different we lot you the the think slightly also a to force, far. in was guys growth so year, base, it this. and largely around reduction turn And to digest, it's happened type done we that's of you we think basically, on able It And and to difficult a but And if drive knew a about right. So the have drive viewpoint in customer. the team, then large commercial growth, same especially. what be which year, this

position. We I that increase we ready the our IsoSpark a So the deliver IsoSpark for sort going value the ready a it's year, be think, look, ready It's right. just -- to the think becoming we're to system. -- of to for go, us. next use all time. on robust We're and obviously going it to flagship The in better we're instrument I is

XXXX exact So the but good, just can't I'd numbers. I feel we say comment on pretty

about Like end juxtaposition helpful. we're of of the the the Q because I see I'm slight CodePlex potential at obviously of the the end you each year not to launching the we're sort at as those launching relative see We other. decrease end is think we don't I not -- being And of we talked in confounding this two hope year. year. Duomic launch. this see don't number it where

going be it. guys on how like processing some the could you. CCBD. should forward? And provide of was In and the thinking your I then service detail more of here the go you service MediMergent with partnership that growth wondering if I No, some sample situation, get the It the will into line line. we sounds Thank about

try we on to be the of think line. the service I growth conservative

and the the at contract various -- at involved. team while mentioned been over right, this or collaborators together think team over has the I with MediMergent just it's you great, work

the actually became as so sales a can our one historically in been has focus we have service sales now. of We compensate on and our based focus you team, QX, right, It pipeline of team. and of service not a It of contracts. number imagine, more sales

So to of services I on fair some can't XXXX. you I we're team, QX. seeing always recognize I in told compensate and some way real just we help, growth rate in for comment future. our want qualitative can increase I the pipeline the sales can that line to in what that it service really we see Again, we of if I the on the things -- but an focused impact we a think

conclude and that, Thank session with Thank participation. Q&A you. your for And the will program today. you I for

now day. may Good You disconnect.