Bruker Cellular Analysis (CELL) 10 Aug 222022 Q2 Earnings call transcript

Thank you for standing by. Welcome to the Berkeley Lights Conference Call. I would now like to turn the call over to Suzanne Hatcher. Ms. Hatcher, please go ahead.

operator. you, Thank and Earnings everyone, ended Berkeley Second Lights XX, Good reporting welcome financial XXXX Call quarter results Quarter XXXX. afternoon to for June the at President, My & Hatcher, is Vice name Investor Suzanne Relations Berkeley Lights. Communications joined by I'm today Dr. Mehul Chief Officer; and Chief Kadia, the Siddhartha Joshi, team. from management Financial Officer; Executive others

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

I'd of For on because update SEC information time-sensitive the risks, is uncertainties whether filings. or otherwise. or information, X, projections call events or August call XXXX. revise more intention Berkeley to and our required live to new as any This as in law, contains any conference by that, financial over discussed information, to please statements, accurate like Except of broadcast Lights turn forward-looking Siddhartha. refer to only other obligation the the and disclaims factors future or With

in in discussing leadership speaking spend Lights decisions last enthusiastic recruiting to engaging even Lights process early Berkeley become entirely business technology how our customers, I Thanks, on to In has our strategy, informed positions key will joining me Officer I comprehensively investors, Financial in I company more situation and the our the March, joining second clear new technology. company's at Since speed. advantages reviewing the my about and Suzanne, my forward. could May, for amount stakeholders. early to with our strategic by quarter unprecedented biology of a and updated market be first Lights call cellular plan discoveries partners in results. opportunity at Berkeley make us. fair our our thank spend for days of I today move is assessed XXXX earnings shared On Berkeley confident have differentiated and new Chief a near-term which call you time and plan and Berkeley Mehul, that employees, everyone with Lights industry XXX then level current will with our the therapeutic applied to functional pioneered It researched review key

However, we technology, a I innovation, services and to company must building and our commitment tools customer of of Berkeley to sciences enable and this page focusing in The a the culture Lights with leadership turning organization. centricity evolve life new and on team adoption are quality. diverse excellence a

our focusing have updated near-term and pillars. positive on Number cash flow five one, strategy by execution early plans generate XXXX. We key operating

at versus growth We product any and this sustainable growing This a through by be an will pricing do acceleration business disciplined revenue profitable and pursuing accomplished and and cash market supported portfolio driven expense management. strategy by cost. will building updated

workforce The business and reduction an XX% generate positive return to XXXX. July processes. development Number requirements. and has to reduce global increased costs through initiatives. and the initial This in other an focus flow in priorities operating million structure $XXX operating step on cash rigor conjunction We saving capital of costs management through revenue. XXXX $XX immediate reduce approximately In we initiatives, decrease investment expect on to of million operating in cost with burn expect to and two, taken resulted optimized working R&D a at cash approximately in our

to growing cell allows producer to us yields cost a year, XXX enabling days services production and every a a and downstream and rare cell that support to the with gene where us, an in and up of the diverse There constraint as therapy, economics, there high technology set AAV And Lights Lights clinical our timeline to and regarded to specifically reach service speed trials no technology XXXX capability from market most is resources partnering throughput participate the industry. discover XXXX. of we interest The clinical payments to stable the relevant believe Lights the Berkeley resources services screen cost must in appropriate. differentiated create in manufacturing well clones and committing development lines royalties will improve select this can the in platform demand. that match. number means X,XXX our In is only QX, companies We The the to roughly accommodate are our widely viral AAV-based therapeutic goals dedicate clinical AAV is the opportunity and screening significant And the therapies. agreements milestone near-term, as highest value of value we with other that where gene business, XX profitability this a of and highly solution. to provides projected partnerships space margin in significant by as projects. trials and for unique high studies vector In therapy for at the long growing In manufacturing solution. partnership such on lines, and segment are functional our as that validated business the unprecedented takes XXX will sought gene Berkeley Berkeley that retrieve workflow and cost technology throughput

the the companies to partner meet therapy years. market will potential to CDMOs significant demand XX to gene largely We enable them the unmet and next drugs the of in of with hit number

be and changing the customer and in investment this company's game Berkeley the Lights industry, the opportunity could this return largest capability, on in interest in near-term. market initial Given

is experienced many in opportunity a emerging majority in our While balance in to services the and We believe of of discovery. strong development of TCR we the this partnership team has to and intend dedicate that applications, for XXXX. XXXX another team demand workflow

patient TCRs Foundation vaccines to week, receptors in partnered Jaime release blood communicated demonstrate novel a a X Leandro from offer workflow. therapeutic limited high challenging to discover cancer has historically our to target the human that that to market therapeutic functional in used be can been last the screening against new As modality discover diseases, platform press some TCRs most be adoption week T target with throughput difficulty for proven Berkeley Lights powerful in but cell because of to has antigen. the a

that isolate have we TCRs. that out Now [indiscernible] validated functional

commercial the partnerships which of in excited our of three our will of Our share to in I details plan exploring partners significant new this minutes. business. the X platform configurations years, a also opportunity. few is launch strategy team about We just services interested I'm and actively next system in instrument

licensing model. Finally, commercial developing or technology we partners are technology will seek who explored strong out out a or relevant

lead pricing currently Manager enhance sales internal are to cell and potential Yue product several positions partners portfolio a than of phase quarter, structure, in of and markets. three, confident appointments Manager We next the deliver We in of previously have and served both Lights Dr. in General our through made and at and for grateful initiatives. Partnerships to and and therapy understanding team commercial the their been with execution the business; of two for Platform the more our abilities and industry deep for Geng and over consistent Berkeley to new Services a to years. discussions General have company have the strategy. X Number ongoing Lionberger, technology, with commercial leadership Dr. promoting last I'm Troy They growth. Yue sales Troy business, the

our markets analysis of have an completed segments. various in and depth in We customer needs unmet

provide development enabled gene their value and research high well recognized Our growth also many and for therapeutic have believe and CDMOs capabilities technology line in academic CROs our segments, antibody in and development. can customers, biopharma applications. cell immuno discovery We oncology example, editing discoveries significant in

these We the are to academic applications. form inform to of programs pilot new help collaboration started design

encompasses cost of XXXX, roadmap, we to to device to total of segment customers Turning platforms Beginning believe to product optionality will in array we budgets. market models products with that strategy each of the allow the of market beacon to portfolio launch a will us the customers and specific to ownership. light the potential this, our of in beacon the system configuration with We provide and flexible support broadening the year, for with our we low technology. enhancing benchtop platform materially cost the and our tailored versions. XXXX, application wider pricing approach of specific more a in a the are their access culminating access that need our are To needs introduction recognize launch in more pricing

company's he and at supported acquisition Life an where to a where Lucas in position to as to resources a thrilled last & to Prior Rolando's scientific of leadership Technology XX most call, in Thermo experience integration and will Human XX NuVasive. announce leading bring in expertise. highly President as will and life at leadership member build sciences several global Pharmaceuticals sciences integral Technologies team. nearly we'll team Officer scaling Vice profitably robust out-licensing Number fully experience key and Berkeley XXX more including life sciences to Development; value shared we strategic with also addition, is Danaher, positions a world-class team of on HR Vice Berkeley Arena access Scientific operational Vitale for & Executive Ventures company's goal expand has Chief Lights, Mehul, Sciences life supply leadership device from to Resources the Health. Human company Rolando and finance Officer. Rolando and at he for to Resources and several our human served President options. Rolando financing years programs the Chief sciences scaling with development Chief of group. be track President Genomic our spent Lucas Lucas a of Brawer as than Prior On served XX,XXX the Berkeley Senior our world-class and Alliances that Rolando that, more in team, leadership Exact corporate Financial life financial Dr. created welcome leading success knowledge, a offer companies. the of our Corporate in roles. experience proven and Strategy Mehul of track and tools and build new proven I'm unlock In the to newly individuals record Mehul then, industry. of Lights and record than four, hires, our wealth Officer, leadership Till of Vitale onboard was strategy the corporate recently of invaluable experienced leader years Human global and team solutions years commercial and development experience Joshi Lucas Resources leadership with financial of to mindset served at efforts the I His at the XX Lights. medical employees. global Vice Services as building, the teams, he of industries. our executive three brings as Fisher

us opportunities advance I’ve Collectively, has discussed efforts leverage performance diverse driven in businesses tools the that in company. a leadership sciences leadership life I experience across and culture my the targeted my profitable scale all structure. services processes help functions. our May, both I cost and companies. team critical This Number and build equity business public As strong M&A earnings own sciences investment, our in been be current will to effectively to to execution. our will team through market growth and based needed shift with and life five, My scaling our call place position are private first a accelerate in putting to evaluate new experiences, and to

research what will us options markets dynamics. conducted business market quarter, synthesized into past be to and will and needs, expand competitive formulate have data decisions we customers to features on our complementary Over to help and the technology. driven and unmet understand These what inorganic

Berkeley addressable diverse focusing structure. We these sciences and our technology a I by options on transform described, pursue from expect market our expense We acquisition company. can that SG&A life provide expand R&D company to to pillars we five merger platform and/or to Lights that synergistic and services a believe and total leverage tools

a We changes important will to lay the foundation. rest strong to continue to business our through of advance year this

create opportunities strategy achieve We us, of we to shareholders. to have our immense strong for plan place and have ahead our in value a

call to Now, the second results. discuss I turn over our like would XXXX Mehul, quarter to to

team help Thank and to you, on Siddhartha. excited Lights a I'm foundation the strong Berkeley build as the breakthroughs. join revolutionary scientists and extraordinary innovator to continue eager make company's to

By down at total million, the was results by quarter revenue quarter, XX%. APAC Looking XXXX, at geography, XX% XX% to our quarter at of XXXX. the second $XX.X North and America for EMEA X% total followed for second in second compared revenue accounted

same macro Direct including elongated quarter was we that QX, million industry to and of our second million tightening experienced CapEx budgets. the conditions year. sales During facing, the prior is economic in $XX.X XXXX revenue compared cycles $X.X platform in

five second grew $X.X of For million increased Gross year-over-year revenue by profit million $X.X of XXXX to to to compared installed XXX to the Our year. was XX% quarter quarter revenue XXXX, installed in platforms. compared million increase partnership second during XXXX in placements base mix due of to to of second second prior base XXXX, second in XXXX. to higher $X.X of in the the Gross services. $X.X the of the and a the second of XX% XX% was was services up and recurring the the to Revenue margin gross XXXX from and $XX.X The in $XX.X Recurring was year. partnerships compared million in in prior total XX% margin business million compared the quarter by million prior for a quarter quarter year. quarter

included and the QX operating year, compensation strong $XX.X the compensation. loss gross stock-based of prior $XXX.X Net loss ended Operating the a compared quarter All inclusive loss were numbers investments the sales inclusive million of of million for G&A, and strategy. margin million. execute of in million we $XX.X $X.X stock-based was XXXX to in XXXX of of leverage to expect to million for compensation. in in of expenses period. provide $X.X our million stock-based as cash $XX.X million prior quarter in million in quarter significant second million and marketing. compared million of We $X.X the Operating XXXX, We expenses $XX.X $XX.X company's second R&D, $XX.X the are short-term with net inclusive year

million, facility. is $XXX.X Our includes which credit our revolving available liquidity

Now turning year to revised XXXX. guidance for full

line the Berkeley revenue business assessment our management, we in in Lights XXXX full XXXX place to now to execute year with updated Following processes full against by business strategic year strategy. approximately as expects revenue put be

year positive strong the Siddhartha. this to that, Siddhartha generating laying discussed, are we XXXX. our a flow cash will As call turn With I foundation achieve operating goal by to of back

Thank you, Mehul.

to accelerate have Lights, I opportunities are remarks, formal manage to ability wanted that us costs enormous Berkeley we to technology. confidence The we our business. objectives With help of the my out our in year. close coming reiterate the I right ahead a adoption in I planned growing As and up Operator? strategy it Day the an and us changes of capture Investor as progress that, and for making months, forward will including on for profitable our achieved against questions. now operating our new focus open look build We we sustainable sharing the this later will to

We go ahead. Morgan the with Please Instructions] from [Operator Savant now will Tejas first take Stanley. question

to to here. time app your the what elaborate in for thanks sort I subscription Can launch and here. of deemphasizing Are plan Siddhartha, in kick you now instrument evening mentioned of one know off 'XX. you just starting on means you Good that model? this for guys. things focus model? CapEx Hey, more that favor specific for you

Great Tejas. question,

own to in reduce we customers add going some appropriate. to pricing to to I buy flexible to them, are more features offer want sort But outright. as fact, for of provide learned, when well. Now financing to access and have models, are like more we it lease we going and And think continue actually as

But the cost we all going the our X So of of of years, focus actually we are benchtop launch down on to the ownership. throughout will the way bring next the device. of sort total to pricing actually continuum

a X on not that the the that but that consumers a sort positive So good just price by through focusing value over net-net going platform of have creates doing forward. itself, what with model we we next And run years. of pretty

from then, XXXX would the launch I platform to exactly lightning that beacon of Got think the on this helpful. there. mentioned be it. low And cost, the light, different today? you in That's How market that plan your you have terms

be It's very are Lightning the going beacon. and reduced of to version significantly beacon different.

but significantly a into love just the biology lower that details, Lightning in immuno oncology believe still reduce concept And are biology can technical we environment. cost to the for at cell an And all some have appreciate. so cell from adoption workflows, [ph] technology generating beacon of absolutely and and as customers good not the the come we was but structure are broader level market, applications we to bring features as that there a going point workflows, about was well significantly high. our academic look that the price specific as at community,

So it's to platform totally compared was. a what lightning different

just there. a Got And it. follow-up

assume So then for now me, therapy cell on for thoughts is system And is the it the just and to lightning to that fair that? essentially shelved? timelines curious last manufacturing your as one

Yes, great question.

as lightning, much the their and of that the a to more as so see next not no it to lightning on So as less. shelled we're platform can going no the innovation all is we to collaborate needs, community, is academic fulfill designed and way use

of to we're to as full to of beacon work reduced in versions with beacon academic launch next well So the community that of inform as X light lightning going years our use sort platform.

we systems, partner. manufacturing a therapy have alone, will decided do cell not find we actually that the commercial that that we On will

things [indiscernible] of the table. area you bring Lights don't as frankly, we table. commercial bring incredibly an with And we should do. capabilities that, not regulatory As a But investment differentiated sort very an alone such, And Berkeley hot unique of lot required know, we required. it's and have to expertise

very for interested discussions are space. our with So in are cell therapy the accessing who in technology we multiple manufacturing active players

Thank it. Got Very helpful. you.

Your of from question the Stifel. next Dan comes Arias with line

Your line is open.

mentioned for hands timeline like have your just that's spits [Indiscernible] curious ownership. around focus might that be a question. suggests made? can and break sounds the the for the of is you what total a cost model recoup even where of It the Thanks sort investment there. out I'm that you on customer model lab

customer's I think the on it application. depends

customers actually are Lights in customers, up then from they the getting And think, ROI paid is platform. becomes workhorse I some beacon exactly cycle soon be the focusing as benefits they they significant that's on we is In and customers on lab. some and a where their Berkeley meet are what are may on in, case, tool it as application live the buy need, longer needs. depending For their already to actually workflow the

distinction on give helpful. general Okay, sense the we us what the maybe of maybe what just going pursue the the strategy business cut sort making of you've the to and exercises you back draw of can that isn't new a And just old of scope maybe and and between just you the then undertaken, business? the prioritization can so scope won't a

Yes, good question.

not think growth. the inconsistent, growth are one that sake except which large of that very for actually for I is team, we pursuing not it's

focused absolutely growth, profitable on by are We flow XXXX. and becoming cash positive

not would pursue. we which is and would projects projects which not we So it initiative which is really as such, pursue

platforms our trying in going to to launching services of fact, single of the potential we And second, as and I for though a We still quickly can there's battles customer. them, everything vector of variety needs. are be where business the to enough with to customer's applications, of large the is think side, described, And and meet going tool AAV we with that. highest customers, is then a significant investment could demand. our them think increased of working to a great doing [indiscernible] technology very I potential market example we we not our focus in apply partnership on more an every are but where pick return a workflow Even to be possibly of our

place customers a AAV such that different are multiple a and target applications. themselves, more on several demand in so we where therapy some finding CDMOs, variety CROs resources of powerful, that with working you'd from resources to But vector we projects. companies from than also are gene believe that like but large is market. participants workflow We that's the dedicate other a reduce

C I have there If key getting that And just the third What's And still executive at in outlook the are that out filled person done? and the need if slotted for squeeze there? Okay the just leadership could on roles a suite, to point? what hires be you of some this the here positions percentage one key in do

I think there, would call largely accomplished. mission I we XX% it are

good. Appreciate very that. Okay,

next ahead, Brian the with of Blair. comes Weinstein from William question Your Please line go

guys. I about I Hey, you XX%? guys. question. Thanks workforce in heard [indiscernible] a most taking force but couple that the the of the for Good could where apologize, the pieces And I ups other that talk are Hey, don't I a afternoon. bit in implementing yesterday. in to little the different for business? you reduction think are Maybe terms have specifically guys the reductions hitting then the follow

about optimize you pretty value our business. this the through platform but consistent need. We question. structure basically for some structures, XX from reductions roles. we believe employees, We Yes, America that services is of Most needed. North based highest Brian, we for structure were and -- businesses, global actually thank business took around went the there business of the projects, and business these, our are most and And actually growth the this

for of So actually growth next pursuing very surgical it we the the the back the very right approach X principal I of are the taking critical the have was going to again, years? resources by and not been needed going about think sake do. to to X, where And into project thinking are forward in project thing growth, a

what question that softer of reflection bit of of the 'XX, growth second concerns? you're [indiscernible]. a no little being XXXX in kind talking one announced if being a year-over-year now about has bit the you're really Or of implies term with reflection Is the it that? just year one question. short-term some longer simply funding then of markets is half pursuing any the end saying little and And the more on of to cost of a just a of the I curious But that have growth. kind deals flat are similar cognizant kind being about But growth. and back Understood. you that short-term, half

million You're run the rate, which you early of taking run is in talking XX% if on where And you the gross ask in which of cash in margin, of second so $XXX even, well of half? that's think operating I below about about can that that's question then course, I guys just or third some And today, kind is into talked 'XX. operating I you said million about now, are reduction the flow expenses force. think rate consideration $XXX

I Do where just at think operating difference, need to kind that from that get you I the dramatic structure. at to of better today. you expense breakeven there of you're you So in understand to want think be sort will just how

questions. the sense. they all made for sorry So Hopefully,

Hi, Brian. This is here. Joshi Mehul talking

our structure rest cetera. so of the But on just was some being the mention updated guidance this industry, like put economic cycles, said, implications, team wanted we the So to in by just the prolonged just very macro are management our and guidance, budgets, generally That tightening still determined place. again, et is of just strong. we pipeline experiencing sales new that

driven mentioned, year-on-year and Recurring on prioritizing we few as grows, somewhat the business that We contracts execution. shifting are also he projects strategy in Siddhartha that about. commercial base install tool viral to revenue have side, service really the our will of R&D pillar manufacturing I'd fiscal our half resources And and But going of to focused our our as supported we investment. of discovery well as areas mention this development, are by acceleration seasonality, the after around And but where pillar, the sales those historical value TCR expect continue third the like in and by opportunistically talked phase to year, second as platform. demonstrates finally, ended. service vector strategic grow also then several support those are R&D to our around we on customers of the

of a bit will revenue slowdown this half and services businesses. for So second create the XXXX of the in partnership a

Brian, asked, was -- taken and Yes, the that the structure. about not question I’ve which second I right, think you OpEx

structure Our we So well. are to as current cost in as we you headcount, reduced we did you're $XX realignment ending structure reduced million not you our stock-based significantly includes And the $XXX -- exclude next the if also for right, million year compensation have up overall math correctly, did of business, range. we the OpEx we've only that, the

in for expected million. example, So, burn is our cash XXXX $XX around

Okay, I all guys. appreciate detail and all the clarifications structure. Thanks, around new the the helpful. comments and very It's

you. Thank

Your Chen go with ahead. next question Please JP comes from Julia Morgan.

here. afternoon good Hi,

might pursuing alluded Thanks. know there being that pricing? commercial environment other that confidence additional in be organizational considering telling full I mentioned. color Just mainly execution? you Considering maybe second referring there guidance, Or that potential question to are in hitting more year the flexible disruptions to and you customer on budget that you're you guidance number? half? on on you your can that, CapEx the give us more Are current on support your confidence efforts

Julia, our is guidance think that you. Look, inclusive guidance. you. is great the question. good we that pretty upsides I reflected This communicated what thank I Siddhartha. risk We in of about Yes, are as as feel both to well

optimistic execution think that number is Of changes recruiting sales we pretty sure management are which implementing commercial I tools process the now. new in are efficiently putting team using he our are said Having the is continue improve and that, place strong will well, as job that the the people about course, putting are we does will in guidance putting the out salespeople, there. working about that through, the and significant go feels right making include pretty there for place its new team management and to to organize regional

beacon That's helpful. year the me pipeline. next versus you're on between application specific difference And product new help that one clarification Can light? you model launching what's the the understand

the also think light tools. I will have Yes, beacon specific application

are is customers we that accessing, using. the things tool only to the the specifically application One implementing they're for make of the sure are

software. our into and changes making So consumables

used So because with efficient us that words, tool line cost not customers the which used cell in, able tool, be application. applications can other efficient But applications. for that will development, actually development instrument be interested allows more that development for box tool work becomes be cannot and of cell use. to will the lower for were for cell applications it'll other And other be tool line used a to more to will used for the line for only and in mainly be be

you. for M&A And give business touch Thanks. Got targets of you development opportunities. in would on more in that you be Last also, art could well. of That’s time opportunities kind opportunities as you're color great helpful. the [indiscernible] or if thinking terms licensing me, what of? us on Could and

thank Look, Yes, team we Julia. done right that here. actually you, this I before think have a are

we sciences bringing actually you As the on Life tools for life board, team markets to is are that kind from both tools can industry by continuing all see addressable been management in acquisitions. that done sciences built we've there expand of industry. technology

as you false of at know, And to when only that. provides to status continue early actually with company infrastructure they to pursue R&D we by leverage, will operating SG&A and and platform, strategy a are sense capable we make is generating recently that revenue with us positive And public anything look our cash that significant taken on will acquisitions us. a they of flow XXXX. technology accretive kind are We very

selective about that. are We very

and question whole partnership be opportunities where of truly go understood market with Lights, started intellectual formidable you testing least Coming on perhaps things. in Lights significant [technical unique now, to to of biological for nothing second bets. compared keep years, number Lights X participants you inorganic cells Berkeley your we the market licensing the in back the we built, We And right the [ph] market And there pursue ourselves difficulty] Berkeley here. means property see Lights is team platform. ability much team You some so assays them been internal move Berkeley This platform. is functional evolve, alive, It to cross and We've alive. be them. which all the position differentiated is the marketplace. next cells in and that between years, to there'll homegrown those only applications, them. then do that And given by know utilized built market actually kind you've different else the to want done without is leadership has lights the on can here, the two, can go dislocations to frankly, an after is a XX study place growth. opportunities, there's Berkeley strong a if significant experiencing will market has industry XX, back literally that and keeping part we could our

we because happening types our is two it questions. under why community throughout to whole the biologic is of technology allow condition, disease conditions? asking is happening? under the only to different technology do What ourselves So process. cells both that The is keep different us alive And different can

at what question licensing. answer for go all the the to may to that. parts mean are And of us in that we of that acquire and stronger with technology doing ability why who be license explains that pursue partner you our would to more instead Hopefully like other question might we of opportunities So we cells to the and times, why, doing to others ourselves, by them. clearly

time. Yes, they're your helpful. for Thanks

Steven Your next question ahead. Cowen. comes go the from Mah of Please with line

if And what Or Thanks individual but are Thanks, or light. Give more and more a a and already, for, that specific channels? the CDMO channels little little CRO color for questions. the those this specific instruments companies? guys beacon application said labs on us you bit for the that. Is apologies maybe Great. operator. taking color needed on I the

significant a Yes, as CDMOs of Steven, we great it CROs market models. has sort emergence a and as budgets ones. you of specific that's kind as These well specifically there biopharma is of the question. used to of with CDMOs a CROs small not And that are with and after emerging, not Actually smaller application and gone this flexible are companies the users both large actually large call going player, smaller, right medical to are smaller for might need using that into in application who these a and know we tools money where going amount medium beacon, tools. which now academic of which more And have for centers. designed size workhorse they're are are

or Okay, into you capital cash And As squeezed? know, the you talk you're a follow-up and conservation space CDMOs. then that's helpful. trends those get budgets in seeing expenditure channels? question, beacons Can of about talking just about CROs terms and

is this Hi, Yes. Mehul.

also seeing So up followed beacons, we of to is and then in in academic continued terms the space CRO, to sales. relative still growth market are CDMO pharma by the a starting pick

little a customers. color were all new placements five for you of give bit to just Yes, our more

Okay.

but creating CDMOs, point CROs next beacon that. lights -- next sort razor recurring look one revenue numbers, over our in And are in when we of both lights, [ph]. buy stream, whatever as putting after call a related out And reality them, they X, come place robustly. a our beacon, platform is more our And the is which blade truly the of years. consumables. go is as highest forward built consumers thing grow with wanted [indiscernible] to but in a the of select I the to beacon warranty on are the plan to starting to want place users very entire years and well beacons or as and we X recurring of beacon that plan numbers think from services And revenue Berkeley few they And Lights idea from model becoming I

helpful. be signing force new one follow-up flow news by workflow get the of I'm as That's if reduction And cadence the from and in partnerships? of the should was as And impact we existing potentially your in. releases expect impacted R&D will if, will And partnerships. a far risks? the already those what if questions sneak I you more And just riff great. on had. But Okay, wondering this

question. great Steven, deep and bringing signed, are customers needs. workflow how Yes, about serving just On of we number we capturing the services but in terms think our the into going and not are partnership the partners and partner, would to model, the that business if of value I

the So so is tremendous. proven people manufacturing we can is by an value the experiments constrained many capacity And what demand, this issue. now significant only solution gene early significantly have understand well. that, -- we’ve that a provided therapies one the AAV a but for example for of we at vector workflow, serve we From I least in

before important it and and doesn't over because to existing current serve growth, business well, is to Steven I think sustainable for [indiscernible] it and the business. not trying really customers a build build

of that give not doesn't you answers need exact number focused we this only for your you are the So but models, customers. will on

growing We for next that focused the double on X strong in are digits a robustly business years.

Okay, great. Thank you.

from go Your next question Massaro BTIG. Please Mark with ahead. comes

Hey, guess, questions. guys, the thank the rate year-over-year. fastest you since revenue recurring the XX% from revenue grew I for growth 'XX. of Siddhartha, the That's -- of QX

Do to estimates is of revenue for trying is get to a we of But year? So numbers. at lower you what that is what consider in small -- to think beacon a the recurring have back our recognizing it my I placements. potential I'm terms off I guess rate half I'm what all could is, be of target that run the question guess reasonable growth,

might out So placement sort size, run run what look with a us like rate right just revenue the beacon help going to forward. way of rate figure the recurring

This again. there. is Mehul Hi,

you answered So I question almost of the kind yourself. think,

it more growth placements the the XX%, in, to but it over will stay at revenue And likely will As be recurring XXs fluctuate not high XXX. put in somewhere time. rate will the we between

concerns question. of that had point potential sort out users. $X a price of million a extent been There To that current you are another boxes the lot Maybe of committed at beacon. what the Okay. to configuration some industry

yes, multipart then new next over when Should committed a around configuration to expect you commercially? to committed So, question. should provide the And year? three configured? as -- the years? to one so, currently the the just how And clarity each beacon we first expect be you are How are you we little configurations can X more deployed

Yes, question, fantastic Mark.

that features and the last reduced but the years culminate work years, been already application applications X, And will another instrument likely We for by first further doing development Remember, one cycle, a X will It's for that In used into launch significantly The beacon the immuno-oncology at ago, beacon okay. already same technology have to be ago, XXXX. generating launched we and will a innovation customers most for the that reduced more half required continued technology, right of going the has, cost. XXXX, platform. the supply actually technology to used that it in team out was were them that unit, all be by all of all most finally, XXXX, in commercially are now. chain on features, the at years workflow cost experiment not are our bringing X with even will is in the that. of launch platform X in the specific and strong taking demand and QX through applications. pilot that X, line cell then development pretty for We

call cost we going into have that gone the what in is a the work be in-house of taking the got we've are is beacon we is on the the headroom that So out beacon why which lot XXXX. there. we light cost phrase taking significant of to launched on using But has beacon, out for

also about the I ahead. want -- Okay. to ask go

the are with interested aware buying full just But that million customers right which much committed the for a cell question we make bridge biology absolutely we adoption But we sure why as of supporting is of to that fact to how to 'XX new by launching are and actually 'XX are who I introduced are laboratories. in a point 'XX, price not platform. in everybody, make $X are about range the price features we larger wide also we beacon your the answer point with is committed Beacon, to versions very

a be there might for give Is you out now, so -- you point that but thinking little the of time or for in the of some, can in to the what how million expenditure if for can about $X appetite below presumably Okay. a some point where capital you configurations? think maybe sort us are give the of system? you be sense us a in sense a reach different is, for a terms I pricing the mean, maybe million, $X time

also cost what it and and to instrument, Yes, of the question. just on hint be address access great to it you be consumables, a of to will will this technology is give own a do is that of will the like pricing a cost I'd it's not Investor a the reduced. Day. is bit is when later a placement I little What What at the

pretty consumption along We model do the acquired. strong of that actually after the positive right, the platform we the we a it right have with It in is cost will cash that flow go And that. ninth becomes a modify event if shows from get products. month,

just guidance going growth. an Okay. operational role I original to you're at both recognizing that the year, having for terms of also wanted the about to the company. it ask in But new XX% was back

Now you're a guiding $XX delta. flat. million roughly It's

But as simple that as simple. XX maybe be not So little that it's right. terms, system could like, in placements,

help better and what the was delta us, between at factors the this maybe you can current maybe guidance is of the understand beginning year? it And So the what what are?

current challenges is which It was significant I Sciences But asked again. a most the that -- sake the London, through progress I again I is us, cycles number just think would guidance the not [indiscernible] when went think of we environment, that the about there are being macroeconomic has many A it in companies. evaluating and day my what XX. I Life by but really important the in capital you first And started, in is. appreciate was industry changed backdrop faced lot I clarity. go all can for a of that, and I we was through one, as forecast

part it So that. of large is

as is to will a shape a for much part you move ahead have can growth I the page growth believe we we sake applying Another of us. pursuing judgment frankly, are it profitable that and, not we with be significant growth better in turning we And the growth. of that, our XXXX of tell into

stop, and from just for opportunity you had presented each. this range, promise. viral at $XX then was you've X team, size and the The I end management XX some billion I the initial think, somewhere billion of of the by now in of markets, [ph] assess the therapeutics, if bio ask time syn sort different was Okay. addressable vectors from market may to agree in end markets course. the you The and antibody I'll comment see how the more, billion, can $X one the still with maybe the $XX investors driven to billion therapy I market? total And primarily at think billion how anything back you Do business -- about to IPO? that be versus cell

was instincts customer pretty Day, now Yes, the Right what a depth? project. market, estimated it billions still good in to are full tell will Investor are it current full significant smaller IPO. data, sort on of that right will be the than our addressable of time But me actually My a as it with study an what debrief of you is at of middle estimate dollars. now, the the ready we we have we When in research the of early the we based is in question.

questions. the all for Thanks Okay.

Thank you.

of Gaurav Your next Goparaju ahead. question with comes Berenberg Please from go Markets. the Capital line

thanks. Yes, hey, guys,

me you for by [indiscernible] two guys. Just run

at that XX% is kind that have to relatively near-term? XX% quickly? rate around, expect Or to in the hovering on something that growth similar we direct it's expect or right It like I at seems guess, that at segment to de-escalation remain continue now? we do should think current turnaround of least pretty revenues consistent of sales they're kind a to, platform this relatively at should So you

Gaurav. This Hi, is Mehul.

So I relative was XXXX. we're, to our think guidance

as also relative by around commercial half through. things as occur in some of cyclical, the first to that of year. I supported the Siddhartha do second as of We really guidance, of guidance But will is pricing the expect it's of sales again, tool but talked the the execution, provided well year, in kind haven't any mentioned, it And platform the XXXX. the some acceleration we XXXX the of that half around

do the a see on expect second we slowdown some acceleration fiscal should So we as contracts, in talked platform a businesses, And the higher Siddhartha I we had R&D refocusing again, the subscription, are bit of ended. our mentioned, services of now on that contracts of the about. this the have as And and value areas resources year. little or half the

guys is the just ask right? perception in the one the to, given, public of for initiatives the so you the company messaging do on how before sense the in at last isn't general it. Got the that to strategic you reason bigger I market? guys the The a general or let most me, would favorable, correct looking so scale helpful. look helpful. do on you And the company, like view go, public the more more I How focus company of That of market XX question, this be color of any months then communicating was on

the life Gaurav, the can first tell technology. value is going I for before on -- a in power of science Board That's been that, sitting the this the question. technology. was am on in task was by the perception. tell two and I of for you that also I all company power the the that new was XX quarters excited that’s I'll the I about of being industry years. in understand company, context super of to a and you, My with I've fantastic

publicity been it's to used technology discover already was the health time, in forgotten antibody. our [indiscernible] is I crisis perhaps that important most this public the then think which all of the And COVID the first in technology the by seen our technology. breakthroughs I've the here, passion happen employees. scientific Lights to of can encouraged do, use also incredibly impact allowing and amazing through I'm things on Berkeley that I've since of

what is as in is know. time They well, impact. discipline. as what team are company say, missing But and doing. change because they will experience, tell company, then world And want small coming in what missing only a And everybody you was have this time the place only a everybody, change from leadership we we here the putting the to fiscal company, are here have I finally, We is and narrative think a the purpose. actually and an which are acumen I was knows will here is commercial the

It's course, response. take to of for [indiscernible]. great No, thanks the hear, any

no the call. you further are for questions. all attending Lights Thank There second quarter Berkeley

now disconnect. may You