10x Genomics (TXG) 3 Nov 222022 Q3 Earnings call transcript

Good evening and thank you for attending today's 10x Genomics Third Quarter 2022 Earnings Conference Call. My name is Daniel and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for question-and-answer session at the end. [Operator Instructions] I would now like to pass the conference over to our host Cassie Corneau, Head of Investor Relations and Strategic Finance. Cassie please proceed.

afternoon good and you everyone. Thank Genomics Earlier third results the financial ended today, September XXx quarter XXth, for released XXXX.

to call. list, If website the you investors@XXxgenomics.com. be would XX added available you least release An XXxgenomics.com or company's have not this following Investor days received for like this archived webcast on to at call e-mail the send company's an please news of if the this to distribution will be of tab

you remind within that will we undue place federal and begin, could to Before results events that forward-looking material statements on like during reliance cause statements forward-looking securities involve or anticipated call you that to the management should this and statements I'd statements. make of uncertainties materially not risks actual those laws. differ are These meaning from

time-to-time or with these update results cause from XXx financial events, Exchange the any otherwise. regarding disclaims Genomics because XXx filed revise or obligation that information press to issued by XXx projections intention differ or risks, Commission. documents or statements today new uncertainties, factors release any information to whether in and in the reports of future, Genomics and the could Additional forward-looking Securities and appears and Genomics

call Joining to and Saxonov, Financial the the will Serge. call Chief our today are Co-Founder; McAnear, over Justin I turn Serge now our CEO and Officer. that, With

start I the Cassie. a you third Thanks Today, joining overview will with thank of Good afternoon performance quarter. and brief us. our during for

I'll from hand perspective what seeing call momentum then exciting three in and of opportunities on the we the I we're platforms. ahead Next, each market and discuss a our have our year. a and in at the as up commercial for progress business will year-over-year more million, X% Revenue for and the the XX% to ready our Justin sequentially. outlook financials, close quarter third $XXX look out to was over we get trends, touch detailed

and strong the growth a CytAssist by first launch. fueled by outside Visium its in were results in sequential sales recovery since Our instrument US of driven quarter full

progress our about customers. in cell more saw platform leader Series starting instruments share we of in pipeline launched, new Chromium researchers a Kit. year X and after with our each QX, for capabilities me existing demand In menu the among X platforms More including for Profiling again Let to once analysis. access value Fixed and recent solid the Chromium, than its the single unambiguous both is to and the continue Series exclusive RNA expanded three

ease value we is of consumables, that an customers. assays creates to differentiator Turning know use breadth performance and of of important our real the for our

flexibility towards or quarter size and which saw analyze This more offer scale kits, unattainable. samples shift researchers we a cells at the to high-throughput considered continued a our previously more

positive Kit samples with pleased samples. While recent are the a users. both this previously Isolation other for tissues for workflow extract from sample can Kit up feedback traction Nuclei our nuclei simple clean of product, sample initial It We're challenging Nuclei early, helps cell single multiome Kit. excited preparation our a still Fixed types. their frozen we're how seeing uptake and adoption open particularly and for Isolation and and to the possibilities it's workflow analysis. The with simplification sample working new continued by of and we're integration and RNA these launches our scalable customers opens researchers more initial among around testament Profiling up with more types really on Both

and single samples, It to to This opens includes larger-scale work our in Kit, of helps Fixed unlocks preserved RNA at lower translational it large for a multi-site and typically associated features cell collection the need number tissues. product. enable a of it cell many our sample the with removing research. at to In yet. Profiling cell archival analysis increasing price with transfer And sequencing which sensitivity, the is new-to-world per up multiplexing an and addition, incredibly due kit live FFPE volumes for studies single sample. lock parallel researchers addresses easy enables in built-in both expand has cell single critical also Together, tissues. samples with and processing and workflow point states powerful constraints multiple of these workflows of capabilities breakthrough product highest of that our enthusiasm This need for It time assay, most and make a to efficient an there's customers capabilities. potential analysis and

pilot research further starting capabilities on time, so are sample be done assays. takes as expand new pool work educate get out of as this product's and they how this hand, questions. our to cell we there's against benchmark of first and can And customers studies a to researchers, much analysis flagship to Our would. it inaccessible This too knew process types their experience and previously expression they continue to gene single

from it's best still this positive, word product comments the the While early, that ever including so we've very been far has is customers launched.

BEAM-T to for believe BEAM-Ab Kit offering, enable resolution. new BEAM can of plex believe This binding and be to and natural cell pharma researchers over researchers up our their T quickly which translate Enabled has be of our into of product therapeutics. and planned. resolution, of taking introduction immune and will power the Mapping Given later assay, BEAM. Chromium revolutionize we the to month to cells customers. at the Fixed on to B scale or discovery the antibody transformative We're high truly this help of relevant pre-orders and particularly believe as analyze throughput millions antigen of and this high as product track will because on T built process We RNA, biotech Precisely long exceptional response determine new begin our also this We're for to this Immune potential franchise is known term. top Profiling the Profiling both feedback, Antigen the to Barcode preparing the we

Now, I'd leading to more platform Visium, like spatial the share unbiased discovery. for about

solve proud Visium we're While it's our to still believe progress workflow. pleased routine use the of with early we're CytAssist, challenges, platform. of QX we're momentum with the ease have our our CytAssist. designed key performance was Visium in the use and initial more the cycle, experience We CytAssist, of instrument with enable customers and overall seeing the life spatial faced first the of will Visium

spatial growth of the more addition, far Visium exclusive version and of achieve have biology higher significantly finished Last at of brought are and we better the it's we're samples added in Visium month, customers so key biological performance, more situ researchers trajectory In turn we who pre-prints, both fresh spatial field few Visium. customers. previously Spatial Visium an FFPE a traction cited from and driven sales. areas. the annual with to time heard uncover, in of on took archives on existing reorders growing This leadership for tissue on on early, had stored than runs. be the now feedback we discuss our FFPE new can the with future pioneers continue in but hand, share we've by seeing their demonstrating outpacing adoption about slides, in standard initial up saw Again, number CytAssist, as to of our has launch researchers to worldwide discoveries. open to of Symposium. these expanding run its completed enthusiastic platform will with we frozen been customer sections the glass CytAssist's celebrate CytAssist second leading from the positive helps new new researchers We QX, a more thanks take papers the discoveries, to they full and confidence encouraged Xenium, reliable in biology and our version And upcoming We by flexibility crowd advantage ease-of-use XXX Biology analysis. record as two together capture in of workflow and larger to increasingly that

to on make Xenium of continue the expect the shipping begin planned. by progress the platform great year, end and We as to

Customers first and reviews the have clear customers seen our made inherent, are by in advantages and broadly term, longer resonating the our the robust been more we platform's with and launch more platforms the conversations. have for key we data and consistently it's launch, pleased, both the initial to have with capabilities in that innovation impressed on We've emerged backed really closer system available get well. track for advantages sensitivity of how time. specificity Xenium pipeline of designed throughput customer a launch, we the data website and our and As and recently Ahead been record.

in panel gene customers the In from on validated field. strategy, addition, is the based extensive our input increasingly

with and approach best type large a application of add the growing Xenium's and numbers of menu genes. we approach specific custom will specificity, customers targeted combines panels, their high capability this focused believe tissue to Coupled research answer sensitivity questions. to to in with enable Our

resolution highest of Xenium ways; able the that's Importantly, believe the morphological insights of can use area staining, the in from process and becoming numbers enable Xenium enabled routinely IF be data the will single Xenium's from same we the amount to use tissue system to have through customers. least morphology most to well tissue instrument H&E routine and of the intact, to clear substantial in section Researchers differentiator the get launch molecule ability answers so It's in images. instrument designed tissue of use throughput additional to any resonating situ a look its them or molecular help their will also will faster. the leave is the key We time. two This first between samples class. in will that with analyze researchers at researchers post-run, rapidly correspondences

record to from to track our software insight. leadership the on path instrument builds Xenium Second, of shorten

Xenium's core preprint ask. Visium, capabilities for of method deemed our the offer challenges More technology one problems application. precisely kind combination visualization built it be analyzing as can together this at questions process It address. that our our they've the Visium is is customers high and how at also CytAssist work It bring of using R&D to This demonstrates expertise, research exact and to or can the fixed powerful full run. This trifecta. RNA changed detail in can to revealed year can explores are cancer preprint We any primary at for uncover how confidence of the and preprint parallel these exciting ability example really on-instrument been that be combined for including in technology. the the transferred platforms, It the yet quickly We've Explorer impact three reveal comprehensive clinical XXXX breast easily secondary focus data was in an competitive burden It showcases Across perhaps the our representative product and gives expect Xenium attainable long-term we precisely slide We using The to segmentation looking insights even be gained we work. analysis specifically ahead the our project launches XXx just molecular we greatly month classified how this they roadmap the reduces the advantage. tissue value Analyzer, The Xenium of for to the look powerful on that's existing main launch on customer in insights and of treated. technological a our all will to to all size our examples instruments advantages with believe and And have long-term our cancer innovation our hard another here. on most of and us and tools. of published showing can XXx to was be ambitious so complication rapidly further diagnosed human both an DeciBio the that of resolution unique performance often is with and will to three and customers sensitivity of analysis history. desktop Xenium multidisciplinary data alone. as potential enormous. data patient in biological Xenium how said is that products breakthrough hard which using will situ of when built Chromium's Xenium not additional community. develop This customer. complexity new know data FFPE study We approaches shows that build solve the of show cell thing interactive solutions instrument see and we platform. Yet together needed profiling, analysis position is Together and the technologies do. and the differentiated what our been get unique What have to a engine. power Chromium, strikingly having demonstrates create Last not that's combined real bioRxiv will track this. as launch. identified we could team's technologies relentless the the trying Xenium one how answers we

team major getting with And with products forward in allocate the the Our have are and our been center every and biopsy of new never personally day to yet analyzed with already recent the has we're doing That's started. off clinical that delivered enthusiasm looking of technologies still It's need BEAM to me XXXX spending our The more than palpable. clear planning capping Xenium. it year this is Xenium products. we're leading hear I've for incredibly several energizing just a future months. will launches is of been time of particularly when customers researchers as be to one things cancer to exciting diagnostics our to worldwide And was on platform. that all head validating and we're the

resolution another article This Medicine $XXX cell led [ph] single tools spatial with Institute will conviction of my new joint recent and human standard cell five-year for development Cancer and accelerate roadmap just in academia methods for We and at September's NIH to formed funding. of we BRAIN for a example We spatial or firmly will cell Allen to science in leaders the Nature like research. see of will collaboration strengthen map endpoint. One first published from by fraction of million diagnostics tissue Parker analyzed the for Immunotherapy the out samples of the evidence future further life with that through brain. a all basic notable Institute Initiative, the the large spatial atlas the on outlined in increasing context become the clinical comprehensive Examples features therapies. cell and the edition a article continue whether to cell believe be is That need other about research the of industry. formation global that and single single scale. example, these ultimately effort

shared forward. scientific goal Our by future community clinical is to bring the and this

rapidly place we better scale and impact. can We better the to are to this working future infrastructure so of and processes This achieving put vision priority next working with excited team. deliver and that the be solid a and things starting better continue us full levels systems in and growth a a We're partner for how approach and a confidence I to implementing broader tools commercial researchers. We're both for top have and base up. shaping a of to for passionate in our are is we're point vision. about our

now, yet strong. Our foundation. We're environment fundamentals so solid right a from uncertain incredibly dynamic are we're navigating a and doing

building have always us. the executional staying on fully on strengths Our excellence differentiated and driving is team focused that

First, R&D engine on map. innovation and road driving our our delivering

absolutely With get team's customer on incredible finally, our long long ambitions with turn investing to position pursuit of take details the over And commitment that, which term earlier of superior our since always put to we in and our done behavior is will company. opportunity the XXx our and experience. scope of discipline firmly everything to Justin we've the both best our focus. a what providing view, The the me the relentless for us of requires in days Second, believe the customers We to our it financials. mission and more have. out let

was consistent sold unfavorable that and growth our earnings million exchange by customers, August over period foreign and XX% units to year for was million, the prior Instrument prior by million, ended on was XXXX the period in increasing due fluctuations. sales $XXX.X with revenue to period, revenue XX% new call. XX% revenue Quarter-over-quarter of million instrument $XX.X first offset partially increased year. year Total XX, compared of September revenue full primarily Service this the we quarter second expectations $XXX.X its by prior year up volume increasing placements was up $XXX.X revenue three the year-over-year, and revenue flat from The increasing $X.X million the X% driven higher in the of second Serge. this mainly quarter increase you, the shared driven XXX with for quarter from XX% of months CytAssist over was from X% year. year-over-year. launch. Thank Consumables the

quarter XX% third Looking our results. increasing period. the for $XX.X $XX.X year year at EMEA the prior million, increasing regional prior the was the period. X% was for Revenue over Americas million, revenue over

revenue from period. quarter was third the APAC prior XX% the for decreasing $XX.X Finally, million, year

the decreased regional XX% to over revenue APAC was with QX. increase quarter-over-quarter it largest increasing While year-over-year, revenue contributor the

increased The but travel this restrictions to may and activity encouraging expected was have As continue levels and driven are China. in adverse impacts. by results are other rolling ongoing disruptions, lockdowns,

of including from $XXX.X operating by the Total driven increase expenses for operating was for $X.X stock-based third the expenses $XX.X partially the compensation; third million expenses $XX.X quarter of increase million due to was personnel-related the one-time primarily including The statement. rest million by million, and for for Gross third quarter costs. was XX% XXXX. third third of third includes XX% XXXX. in $XX.X infrastructure one-time third quarter an in to to the million expenses for $XX.X of driven third for to compared personnel income quarter for XXXX. The newly compensation was compared the expenses. the for XX% profit increased prior the Gross compared increased period. the to quarter year loss quarter higher the quarter Net were quarter $XX.X third for third of chain $X.X to of and million $XXX.X This of were introduced of mix $XX SG&A $XX with the of the supply million, million and $XXX.X of period. for of We compared was R&D $XX.X of gross expenses to XXXX. the expenses. including prior $XX.X quarter primarily in restructuring quarter was cash products compared loss compared of compared million quarter $XX.X cash. profit million expenses offset the the million, to million the changes year and ended margin Operating for and for marketing a million equivalents in due for decrease the costs; for manufacturing net of by of a quarter to research impact a and million to expenses securities, the restructuring gross loss margin increased million development cash restricted loss a the and primarily $XXX stock-based in were third $XXX.X decline XXXX. third net of quarter XXXX, product for XXXX, costs; quarter million million the expenses marketable restructuring of Turning period in third

capital into anticipated, in facility As QX in of of our the with next the months, as going quarters, facility In levels build-out we expenditures, two we expect we next that operations expenditures, over had mostly capital XX two-thirds fund construction. of front-loaded the the elevated to of Pleasanton. continued

of positive flow the cash XXXX. end be to remains goal Our by

outlook for revenue our to turning XXXX. Now,

of our million $XXX to $XXX full expect in the to XXXX We million. revenue be year range continue to

the And While how be it gross Xenium our instruments expect a sold. range are flat to going overall our gross environment. depend will products' reflects many upon macro we've existing margin, margin typically QX. company we to the than margin regards wider in With into this carried relatively in is the uncertainty gross year-end,

that Overall, gross the to products, outsized expect Xenium a initial is existing the margin despite on our the placements. more its look of lingering we call margin mix on especially turn carry comparable for prior in line in science advance product lower in instrument our While years, providing forward our is and year-end the an this we we outlook I'll to company XXXX overall gross consumables to have February. point, margin, headwinds, will remain impact to to back and our us forward. earnings front for in opportunity confident it with mission Serge. the At a In

perspective engaging excellence is we Thanks, Xenium and the first leading from first We of to work towards us phase fueling on and and is more strengths scientific a in and how Justin. the forward of Day position we'll investor portfolio lot the technologies on December ahead. our is on next a differentiate about launching IP as growth. hosting close And talented through since expertise, deliver opportunity continue BEAM, look and discovery plans manufacturing software look our growth we'll XXx. time This makes engine will Investor detail our that team. to to year, out and to our next to X. to There I also commercial the our the what the share our IPO that multidisciplinary incredibly driving commercial highlight scale community educating forward our the to from innovation

of me people who magic heard proud and them. so the say happen. of it's make for grateful the You've I'm XXx,

to the our inspiring. thank all for Our for want team Operator? we and With Answer all truly commitment a Their our questions. and XXx forward. across open our I now tirelessly they that, strong science to close push day it customers to for do mission team up Session and year. are is will for to passion working fronts every Questions

the Morgan Tu from Edmund proceed. [Operator of line comes Instructions] first Please The question Stanley. of

This is actually Tejas on.

hear two -- can maybe me? So, you

Yes.

Yes.

ago? next a live? breast is three this preprint prelude also of bundled highlighted that making the But cancer are Serge, selling. on one AGBT your just of And here. on at the comment Can you to bundled when you sort seeing know terms talk can you platforms in three the qualitative approach those the possibility if year a and stand on stage how to color traction readiness of versus preorders first So you're here. manufacturing and customer I me post months Xenium just push bigger for all a via

Tejas. good Yes, question,

actually interest driven is traction several release data was sort about and of So, it and on seeing by through been we customers talked proceeding that of with increasing seen punctuated have we data of have kind the AGBT of first our exited that lot call. been the yes, preprint by starting A we an which as the we've months. the the one, release and the past

And has seen toward acceleration so, and quite trajectory on we've up sort a end of towards year year. of interest really demand been as the heading of the building this we're really, -- good looking next as we're

a definitely of seeing So strong qualities are a with of lot that People data the demand. lot platform. of interest resonating the and they're the

far into readiness, something looking year. getting and aware to As that certainly close as manufacturing launch also of so we're next it's

So this things. from It's a side complicated of chain environment instrument. also supply complicated logistics and a is

as concerned, our where quite good we we've certainly do, we're work customers that had demand work now. as There's to on this account. ahead we've And seen seeing already to of that now more year actually year. all the working next a right a stand next proposition. hard we're on looking for from but and is we're especially that as And feeling sales team So as get value far to of bundling amount interest of of we're bit

buying are where in are sets next together. we have Xenium coming think And seen come for now And side. platforms: through and I that we fact, and well. that to In customers' efforts us bundles three customers well that CytAssist Chromium promote as X, the sales And as as we definitely through from seeing year we're all commercial see well. our as happy that something certainly multiple

geographic you chime and terms China, as a labs of as comment in And of so basis? has for been Got it. decision or access And you're you How weeks up instrument well the lines you can perhaps, in six trending quickly that on And as on service Justin providers in well. seeing. placements, elongating? helpful. That's follow on sequential can I'll last similarly on to Europe trends just the signs here here time consumables any academic

Yeah. is I'll Tejas, one. that this take Justin.

this seen on rates the As call far a say comments to when currency last few that over no year. some In that trends trends but I overall I not when as to uncertainty rolling dollar for looking the biggest at would trends the about the lockdowns in and what the it's QX weeks. line trends quarter in back recent us at translated last that last restrictions, we've overall we no transactions notable look hasn't on China, any say we XXX% six just million just travel out new been to any Europe, and impact new issues, we've year-over-year would just were still is around for the there impact compared Currency shared year year-over-year impact seen. that and there in with what coming. incremental

appreciate I it. Got the color. Thank you.

proceed. of next The you. Arias Stifel. Thank Dan question comes from of line the Please

Thanks questions. Afternoon the for guys.

about year picking It that the thinking like you on you pull how way a up through? little is on Justin sounds finished the Chromium, activity are bit.

some do expect think should first to half? sequential finish annualized the half see you in over second So be averages you the higher And year we XQ? than to improvement XQ might

Dan. Hi,

and thinking thinking to from a you're of that to how we've the XX%, haven't we're pretty the seen end our as QX it if XX% terms were is from would about looking bit year, of little we revenue So before more so shared QX. increase anything was of at in seen going don't the year, would more, much far And QX year, of midpoint seasonality revenue consumable were about that a pull-through about exhibit range. we a the past. to we QX that terms overall assume XX% QX be. maybe get to of you say if what look the instrument midpoint you increase the in then just was And last think about you to of as than a to this QX to the similar in different that go kind range at at the to And

is past midpoint would indications would what I far yes, we to for off. the and so that any seen that the similar those seen we're in haven't be say And trends at what past we've looking

then And side, in still Helpful. HD spatial work. us update the might you spatial that for Okay. portfolio? this product marketplace some to maybe the a availability that Can you is be at extent the of how on and And which on put Visium high-res to on questions on the think product able of then frame a just you into fully the plans sort whether point? time to important fits

Yes, I'll take that Dan. Yes.

interest seeing our one of a product first HD. exciting It's -- those like around lot people So, one of all, customers are in. interested Visium from capabilities really definitely of that of the

So within sure. commitment have -- on for and to it is well. team the very that a product the as working that we hard platform line And company product the strong

So something but we're committed give on those to update line driving market time are point, bringing it this we're an to ready capabilities. and and to at We're hard. the not we excited absolutely too

you, Thank Okay. Serge.

Thank proceed. you. Patrick line of comes Please Citi. Donnelly the The next question of from

Hey, the questions. guys. for taking Thank you

to you terms months talked about end about impacts the end, guess macro of of on be each? placements. tends visibility Obviously, levers there? the on a back maybe the pieces follow-up But question the a bit with Justin kind the some you think outcomes. it know and Obviously, in of instrument of to guess, I kind loaded talked XQ little just of here, how you just the low talk range wider drive left I and side. kind a the moving of high half do Dan's of kind key about two Just about I

typically the two. third than as weighted as quarter are the throughout So just far the the into first weighting we more month goes,

that's with more even even quarters. of so sometimes and the than other -- QX so some And

was the denomination That's we said China followed for currency I XXXX, euro. for back as think direct uncertainty our the XX% I what key XXX% far as our modeled earlier, of think, that some I and we've sell one. euro QX, Like disruption pound. by revenue biggest into. about as parity currency not is it's fluctuations, there. the the still as There basically of In variables is foreign that to currency in of British lingering in. And level far foreign turn could we're this level and

could dollar further, the if be so strengthens there additional well. as impacts even And there

biggest really in and particular APAC is Europe go. what so being as far as QX the And China I variables will see how

you know to step maybe just some high level want just talk of you to but yet, to of think pieces about growth Maybe what moving by further, means. China next in And about talk year lingers. should of any rate that take helpful. trying think to the maybe That's to XXXX I another don't Okay. moving when just for a next then about terms Not of year? uncertainty you pin kind we pieces kind those the

have products new seen come You on.

Visium that. mentioned HD things You Xenium, like

moving talk be again It'd to just also just the to Analyst get And helpful we guidance pieces. will know Day? what the maybe there. So a at expect

when about uncertainty upsides a about -- Well of talking There's thinking downsides. it's and well. XXXX XXXX, lot all not as

year of of to the the So year be be I also for first product. RNA them, our think and going it's full some fixed to of Xenium. It's you but CytAssist first full going on hit

around the enthusiasm there's shared really prepared great right now. some as so remarks, products those And Serge on

QX As mentioned we'll far that I February XXXX our do call. as on in normally sharing earlier like we that guidance, earnings be

Thank guys. Okay. you

you. question of Genuity. comes Kyle Canaccord from Mikson next Thank Please The proceed.

there. price. run units ASP rate like and that to out would soft on where relative could progress about to low, for like $XX,XXX of pretty have how the, kind as the like just instruments CytAssist, to should XQ? forward I that did going could consumables as wasn't CytAssist -- Thanks strong but forward of guess guys. like kind in it was close And oh, given how I wasn't instruments large like kind then, XXX then, headwind. placements strong over Maybe in the the Thanks. of of questions. that that what And on XXX sorry, that Hey, then list with XQ it the maybe it the was And mean new we expected. placements. just going talk guess dynamic, utilization quarter, going progress And I be was there's, have given we be great the given XQ, fourth on Chromium like why thought

I'll Hey with that. Kyle, start

on take question I'll your middle think CytAssist. first I

Controller price the this average ASP selling list, $XX,XXX lower is a much a price and price. the than far as range of was that the that's Chromium $XX,XXX $XX,XXX in So When that. the Like instrument. instruments at our to list different than all the as had $XX,XXX we isn't to Controller Chromium ASP list

are we as as There's leading Chromium new Controllers as and those roughly Controller pretty a completed past and of much iX around shared half the but the sold, our As And what's, half amount dynamics those far about placements to X we've far being Chromium in existing selling iX are to small going still Chromium customers. going the the placements, far X. customers to instruments of now. of that placements from Chromium the have instrument the transition by

at So even a of iX. there two, than higher selling now. to-date. Chromium that was we're any the Chromium hasn't distribution rate right roughly shift the those a notable at been looking Initially, X But between

Okay.

to You that had part question. the first

part repeat the Want it, of me any yeah, to beginning.

Yeah.

beginning. the Just

So wondering, utilization the kind in quarter. would just bit guess? big had given have quarter was probably soft the why been that I'm I like of like, a probably third second headwind, a

Yeah.

the similar think dynamics one, I a on think quarter. what lot I So about of talked to we that are last

remains in and And the in growth saw of factor opportunity before region-specific of But just three growth. executional of AMR terms single and phase has in complex decent importance. talked what a measure of unlock APAC next of are and EMEA the have We we China. not outsized very of to kind now there's sort have You around quarter-over-quarter. in had especially where this excellence we're currency tale a some about lockdowns several regions on positioned environment. strong fundamentally, it. that conviction And Right focused and we driving effects

And kind essentially that forward you, maybe like for on of like this I basically that direct Visium is How of Okay. than just it's just great. rather much kind instrument self-inflicted not but customers That's HD, towards exactly the Serge leaning of here. then like guess, as to like just delayed one emphasize new just yet. question that not kit you kind just are obviously of look be is And commercially whole output given once prior can to Recognizing between available? off are might kind going both similar like the the pretty both two I confident transcriptome piggybacking Visium the platforms. mean Xenium resolution coexist the be of Xenium

and around kind So platforms problems bottlenecks these relieving feel workflow. some we we are they're Visium especially CytAssist three all about and excited in we around we're seeing of confident as the have of the traction certainly very

that to of see positioning seeing for the So of same you deliver And driving customers have the they Visium seeing and I in and time a potential. once coexist of system we're -- interested Xenium you've lots spatial scientifically do in compelling. showed working approach kind there platform. discovery the that we HD. then is the zeroed We're nice I think what best the It's hard genes very strong quite pretty sort to you're we And At like there. preprint on to is doing And coexisting. customers. complementary that we're ground we're the we Visium Once that that. becomes Visium definitely in on that's Xenium. that. best really through platforms And hear as huge those, our And we in interest what in our the well And actually interest parallel in talk way. in two said

the platforms a pretty So be coexisting kind and complementary sure do both they're that we market, of make both going way. in as out see to get to

Great. Thanks, guys.

The the of next Dan from Cowen. question Brennan Please comes of line proceed. you. Thank

if could you Great. us ultimately there's And bunch preprint about the Maybe of you Like, in coming there the a third lot the And is capture Xenium and questions orders ramp be XXXX delay all the this far. these Thanks of some evaluate other Serge, to think then thinking type back related new thus think you questions. that to obviously the could wondering, a what's at Xenium. this then just trend about taking you one decision-making think out? customer of of And the color hold product's for I'm taking you as a there first on potential Obviously, and/or Xenium. you highlighted ramp? kind concern of part share the any just I'm the and are talked customers that of And the order try give like market? ahead so, in that, can products? you positioning number? what like, is, question could point?

-- first yeah. the So,

months. of Dan. of data. accelerating. are kind as indicative them have taking And we we've getting the as the mentioned And I last and The trajectory and customer their now of it's orders been there So, people been and is been couple commercial for spreading – our team taking we orders, great especially on more word are hands has more demand, out been

is a yet, is around launch both them coming look of out that but over we quarters set set as year early, not The So, we look as its we features feel really, really comprehensive market and think share comprehensive are then year, encouraging very at built have the even roll really as confident I trends end the we capabilities is about right? yet. and The years. and there Xenium, platform far to question and this of as not to position. way concerned market there into bringing of it a We've the next will

to right the clarity, capabilities about time Lots how buzzy the pretty evaluation, lots in really definitely yeah, terms we But I of in to of So we clear the it this well very grab. different going of model good it's and is will market pretty are think early especially platform going of many that take what intense we the customer like lot capabilities market about and as is pretty days, we when a talk then of feel it mean, is years. talking capabilities. ways about yet where Certainly, customers we our in is lots about – up the what customers, do to trajectory confusing of interest growth of coming now. it companies the feels And conversations are in not – to of but the Xenium, but from soon.

about optimistic potential year. for us ramp the makes that so next the And

then RNA, called you maybe truly transformative. on Fixed Great. just And it

publications Do think about pharma? those and wondering need how did how numbers? it biotech walk Like, customer take – that us the to you in Just take to a or through adoption we and more does potential curve we traction it like, out when for customers long evaluate? there? what little is Just the in could see what group begin bit lot the a do

Yeah.

here. multistep I process think, almost sort a there's of

getting of in evaluations to of running we're to problems of kit. – do of go now of those it is marketing We initial that has the see are been you imagine biopharma people side academia, that And people A been very First, lot being, cell of feedback happening of sort of of kind terms out also of but pharma. for a especially also core kind the at getting like we'll kind out in kind of of, the product pick those take the those almost validated lot over kit new in development opinion are kind single terms of and new that think running key approach – matters the to solve most look kind of now. translational stages of looking marketing to right benchmarks. is pipeline are we of And sort single on for academic as we roll pilots. And customers customers, evaluated them the do kind to And the set -- in their customers. it side the lot because -- people the kind they of A is kind by part appropriately who us this up on this the this broader on technology quarters. all growing that good people stage this we've on of others coming the getting cell still to downstream initial in with leaders, we what need initially of job expect we do phase then opinion a of a within then heels further positive. there that as influencing leveraging from you of

of so would the step kind be three. And that

Great. Thank you.

of Qin Thank proceed. Please you. comes The question from next JPMorgan. Julia

Hi. afternoon. Good

new your And customer mix by and the new curious, expectations? existing between existing you this original appreciate customers adoption traction is I'm with for line I CytAssist of So the in driven CytAssist. are customers those how new base, thinking that customers to adoption for spatial or these of And their user wins? new getting you competitive about Visium are you they are with CytAssist? CytAssist are highlighted

Julia, one right? full has CytAssist is early So been only for now, out things. a couple of right It quarter.

So to we going have lot customers existing actually of with users and to going is be certainly also forward. single cell Visium used too. adoption trends before lot careful are the a initial the extrapolating customers people A who of who have

of with mentioned come lot I in of -- we interest think a this platforms. from three all where a I the coming interest us also had interest at of has is Like where lot kind sort of the the customers we've been from. placements and of bulk has initial the before

so we've sales driving been as And for well. bundled us just

And is impact we it's evaluate And it are to quickly. where customers those CytAssist the the so then and set this through pretty So its paces also starting. put best most of because -- on sidelines constraints. within then bit draw base been to customers and the our see to it existing expanding on further of little workflow maybe a new have before customer up who and

here? mentioned commercial track new there? update then And the That's provide helpful. you last progress you on how you I on process it. the implementation could And define curious the what Got picking just And if keep would quarter, of you an was as up do success? that

not is the pull wish thing doesn't that you and -- everything as it's let kind me this of so changes. just Well, --

Some time of the implement. to take changes

execution and online an of rebuilding with terms implementing to Some online We've changes ordering, of connections internally. an faster. to some We're lay which managing for the focus the are we're just kind We've clear of next it's leadership impact in about sales we processes growth. made is progress opportunities, Europe tool, improved online process, the the organization. some is do for but and and process bringing changes of and the customers, structure for on term. them kind so the how up level excited of them sales And quoting we new some goal scale of on making our funnel as also near-term of started to first the of We experience closer our processes the shaping longer of important efficiency having are of making. in kind our have improved some brought and soft in better that streamlining And should changes with made Again are cortical we the headquarters. in the forecasts. processes foundation terms really of of pretty can things improving process forecasting in bringing -- tools

color. the Great. Thank you. Appreciate

next America. The comes of of Please question Bank Michael from you. proceed. Thank Ryskin

Great. guys. taking for the question, Thanks

First I the comment follow-up quarter. want to for on CytAssist

a you a out big slice contribution thought big certainly pretty XXX It would so it revenues called way You placements, really congrats the estimated chunk of you we than it. like do more on any drove that. seemed

quarterly can demand? So this pull-forward XQ of were is, from just next roll some to or further What get good jumping-off any some is sort a on from point placements curious, just there you pent-up even a big and where in and I'm at pre-sales maybe basis? I'm XQ year there trying

Hey. Good question, Mike.

feedback it. knew developed from helps that strong was We full were this we our the the CytAssist, based upon overall. improve customers launch for relationship This knew demand an that with quarter that customers first of product. for was workflow there resulted Just close eager being and instrument customer was

to we there with tend back I up products pick new full knew launch. to again. the demand said, quarter that and strong. that And smooth then in spike Typically the So, be things after like then going of a out was is

trends and well. QX so, still see as it we'll it's throughout So, how early

Are with And related the quarter consumption more what higher but early Any they mean. volume the doing they buying sort you that, the runs? Are census? more wanting any becoming are but want don't Visium Are revenues I is the days, it's change obviously Visium very I seeing What Okay. customers? you to of CytAssist? customers more utilization then know given the to still consumables? first word it's in or they have

Yes where up. we're their and back with Mike. too thumbs It's they've just the runs done That's at early have come to People run and stage. gotten instruments now. this -- they've say at right first

not of they've kind back it's where yet new sustainable point work their So, of we come any where usage the to get patterns. can additional estimate with

if on And follow-up China. squeeze a Okay. I quick can in

you XQ think in sequentially called dynamics the in the revenues, versus XQ, Given out quarter-over-quarter huge jump China XX% -- I XX%.

in I go through You distributor a believe. China

stocking with if inventory of had a because you have sort might things destocking this the lot replenish I expired jump quarter can So of you then might imagine -- were anything replenishment, in talk a consumables those to have supplies. second in about XQ big and

inventory can you talk about or So something anything is specifically? level China that

of of end rather in anything we the carry far having the as we just think If fears goes service with hear some than towards overall. in quarter more Mike China up. general less to is things inventory providers as variances wanting this stocking recession activity-driven did

So, activity-driven more yes, it's I stock-driven. think than

so All right. much. Thanks

you. Thank

question proceed. Next Sykes comes of Sachs. from Please Goldman Matt

first one afternoon. Good Hi. Serge Maybe my questions. for Thanks my for taking you.

in Chromium the in kits? comments maybe prepared and you Isolation and conjunction because your Chromium X XX. sort about maybe in new of RNA the solid mentioned momentum demand it's, of Kit. about X those a Could for understand talk with change kind I a catch in of, You Nuclei Fixed

inflection the of And have have instrument have you we're X potential think But the stages early of that you kind run do to at kits? with to You in kit. an Chromium just seen inflection? these the new

Yes, good question, Matt.

quote an I So hesitate would inflection. to

and do one RNA the the Profiling in are you I that's think need strong that particular interest because kits feedback we seeing test. Kit to the the good Fixed from

test capacity in kind the test instrument We to in are which you're kit kits Profiling. people they iX relatively the seeing catch the the more RNA need order the bit test instrument. a interest Fixed of But with little and in again along to like order saying to also in the of interest speaking the XX goes need

because reviews so of which going that feel iteration product back positive think are the process. through new speaks But really that we're for coming we're cycle. We kind all early still optimistic I from a demand. And in ultimate the well again

within big to into drive that the COVID about And and Got I talked Thanks obstacle customers. driving know into was getting US been progress little utilization. halo able base? been some it. in that the that previous that color. then COVID have Has drive the in amongst higher on there least trying Have at for labs to utilization lessened bit? higher quarters you headwinds you utilization a And those given any customer just some of a

There anything it for we've Profiling users we sample new that and the sampler change have to on material their simplify key will -- talk been a we come prep about. with in The specifically that core of products kind reaction of, make give focused new pretty the the least I into visibility which nuclei been mean, easier also there. products now of owners. become to there's forward we instrument -- going been are these some meant -- -- are you the think users workflows. workflow blind people run because this to have Fixed isn't part nuclei I say have materially should really the got are to team halos that to us is be, the for kit out previously, and we've single customers products that We've cell Kit been at We're centrally. halo of both. kind RNA more -- new around think on commercial and of I don't has the

of pulling well but on some any changes. have early as that kind we'll still it's to new we threads So of about material comment be these

of End color. Q&A Got it. Thanks. Helpful it. Appreciate

That was final our you. Thank question.

conclude this participation. your conference the will you So Thank call. for

may lines. your You now disconnect