10x Genomics (TXG) 8 Aug 242024 Q2 Earnings call transcript

Thank you for standing by. My name is Kayla, and I will be your conference operator today. At this time, I'd like to welcome everyone to the 10x Genomics Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. I would now like to turn the call over to Cassie Corneau, Director of Investor Relations and Strategic Finance.

You may begin.

afternoon, good and you, everyone. Thank Genomics Earlier second results the financial ended today, June XXx quarter XX, 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

these results cause Securities from XXx the Commission. regarding XXx filed that information press to and issued by differ risks, documents today, uncertainties factors release with in the and to in time the reports Genomics and could Exchange Additional and time appears Genomics

to Genomics projections information, or intention otherwise. any events or update disclaims new forward-looking obligation of or statements, revise or any whether XXx because future financial

Serge McAnear, are today CEO call and our Justin the Joining Co-Founder; our and Officer. Financial Chief Saxonov,

after to call the queue. host With the a we ask will please in everyone turn X prepared to keep now over analysts that, We to question-and-answer our session accommodate We remarks. will that question may Serge. so I

Cassie, afternoon, Thanks, and good everyone.

the the to for outlook an look our portfolio of financials, the spatial trends During detailed I'll technologies. and overview at our across call rest Justin for business I'll performance single today's of over call, of and more our start year. turn second a with cell quarter Then

strong and cell in total quarter, a cash were consumables. free quarter. for million, quarter and sequential positive we the and increase spatial single For solid $XXX a We this revenue in grew saw the demand consumables quarter-over-quarter flow year-over-year to X% X% second

transition next We continue our on assays our from than are feedback its to in we further performance, GEM-X hear in GEM-X overwhelmingly positive and the customers along expected.

consumable demand we demand Within product, strong launched continued Despite to peers. experiencing for macro June. headwinds many consumables, the XK similar our the increasingly Visium in we're saw challenging which HD Spatial, strong for driven we growth Xenium early from and Prime environment, of by

to resulted pressure Our under to spending CapEx acutely factors customers customer cycles on which and particular We our macro likely cautious these most budgets sales, quarter. elongated in putting are has especially instrument revenue instrument and pressure, persist, budget impacting this Xenium. purchase believe are patterns cuts

look we million XXXX range we're As to expect to $XXX be the million. $XXX the guidance, rest lowering now we to in of revenue our which of

greater it detail. Justin in will discuss

analyzed and Despite needs potential. be level these headwinds, confident context. in and long-term to near-term the our cell Biology spatial single differentiation we strengths, remain at

built spatial growing still These have nascent both platforms fields, drawing are We leading biology. are from competitors. for single interest cell which and

intent and opportunity to ahead. positioned operate ahead recently. we We new in our well strategy for spaces. the the increase stay this We and believe always has competition anticipating planned been both are we of we said, been always more As the have There with firmly has grow yield attractive entrants.

over our our and biology, hardware many We solutions molecular software. leadership chemistry, of believe way. across competitors, a our is innovation technology multidisciplinary poised engine ensure is believe it ahead XXx by stays years that are significant advances politics, several differentiated built of that micro and to years We

channel, at extensive and commercial an tailoring to have solutions sales also built highly needs. specific customer We skilled

large-scale researchers, researchers experiments. designed especially drive [indiscernible] required been lower with targeting product We to those costs intentionally teams projects are new proud to customer passionate complex often of to run are XXx. has road or and support talented our for provide And our map those assistants who who

We to as expect per and our cost we advantage to continue greatly remain barriers meaningful execute plans product against cost road sample our remove cell. and map a lower competitive will cost per

detail platforms, well some recognized across beginning share each recent me which on leader. In is our Xenium, of more with developments as performance Situ let Now the

This multi-model We're quarter, Prime features X,XXX to we order by an product, increasing Xenium initial continuing special specificity sensitivity, while and plex capability deliver launched and the enhanced the by improved new order industry-leading highly gene rate which to performance. encouraged chemistry per cell measures of deliver segmentation. [indiscernible]. our fidelity excellent customer XK, integrated genes early magnitude, This and an

meaningful huge on expected is the sales. macroeconomic view having potential long-term headwinds, pressures earlier, are impact mentioned Despite for our Xenium unchanged. near-term instrument I the platform a the As of Xenium

customers. feedback from We outstanding receive continue to

aligning We are We to a around across many the the excited that encouraging new of from lot new studies are received to instrument interest of seeing in large-scale numerous are utilization XXx. of cohort we're see Xenium. trends potential customers, fleet. And emergence them

to as is do on to our broader We we're drive can is of performance, Xenium dedicated part strategy. deliver and sales there believe instrument opportunity commercial we team also our near-term more why which this expanding

on we have With ways the Xemium support and research. extensive biology multiple to range their spatial Visium, both of customers offerings in

may and questions the and complementary research Our customers' over platforms broad support research spectrum cases ways distinct yet a evolve of time. accommodate use their

Visium [indiscernible] the for our Visium, exceeded last on onbiospatial Visium QX. Building quarter's in launch, consumables platform leading HD Turning analysis. to

the a analysis. and with performance customers it the spatial Visium As to drive is we're HD analysis both for on receiving to cell reminder, field. for momentum enables positive has new feedback pleased HD scale It spatial existing and We're continued at that transcriptome Visium platform. the its attracting resolution single in whole based

despite for sites to for pressures placements the interest quarter, HD sustained contributed second CapEx demand during instruments. also customer on the High

histology made an slides. standard to use delivering enabling Our experience robust one for it a allows workflow, customers and is CytAssist years a like critical customers. over has the is CytAssist key complete instrument that that straightforward to solution clear for

more data ensuring Additionally, is results spatialilty, consistency, accurate of experiment. CytAssist our customers preservation and by to precision scientific integral and high-quality

spatial continue will discover biology. power and ability trajectory we're the capabilities broad enthusiastic of its Visium by to within exploratory and its to Customers

single to turning cell. Now

solid sequential the growth quarter, we During consumables revenue. in saw

year-over-year We in sold. reactions also growth delivered

per to While work are results to term, making now recovery, architecture. GEM-X More customers its per our lower there's do the data and single to progress quality the return cell and at the aware compared have over long to Chromium the in reflect impressed and sensitivity, we sample a quarter's good this robust still all with Next are growth and of transition. with throughput, we GEM-X are GEM underlying and cost cell cell superior momentum delivered

X transition we than initially seeking adopters advantages. more With GEM-X progressed has first quarters In out the GEM-X performance launch, faster its anticipated. the cost since and early for

vast wrote opportunity preserved independent many translational a they a why there ability specimens. Flex In commercially Our Flex FFPE for continues single for to greatly assay the which XX in unique reach still is cell. traction Researchers of benchmarking is the The tissues, with access also [indiscernible] from single-cell its ahead study X believe called the catalogs performance. expands gain long to of also of ranked technologies, Flex to available single-cell seek out clinical runway customers. the RNA recent highest exhibited process reasons we

Large-scale projects also tremendous hold potential.

TenKXXK with to is more use Institute's to large-scale of course for and As this open XX,XXX we XX of we cells human possibilities intends we example announced people, earlier genomic expect TenKXXK Garvan which heart this studies fingerprints areas, autoimmune up identify new the project, samples GEM-X map million diseases, to cancer. and A week. unique from diseases more more remove great cells.

scaling see we emergence biology. addition, analyzing our organoids, new based the foundation cell In single to building applications of screens enable models modeling to CRISPR high-throughput to approaches, AI-based from powerful of

making accessible for analysis new customers. and for said we've democratize along, more more existing as opportunity all to it a And large routine there's customers single-cell by

customers first We for important and know larger an towards looking taken experiment and their larger on price projects. consideration, to researchers scale is single-cell new current both

As our we've before, enable goal reducing more said by technologies accessible. making and adoption is routine to drive broader costs our customer and use

strategy, per this our strongly on of project. of the continue per have road sample, our of elasticity. we in to advantage map We vectors, per cost believe down to our demand product been per will part we and working cell, to experiment, along As take products multiple for drive elasticity execute

of To impact, our with business and recent brought up address deliver breadth need organization. commercial on by challenges leadership. the the We're our complexity scale next evolve XXx starts growth future. commercial taking increasing to execution, the we of truly the improve our and That phase us on to into to steps set and

and CEO. extensive Under a assess officially we Commercial rapidly our XXx following of Officer, implementing commercial been customers today, Moustafa the in has lead has and rigorously to leadership, exceptional an Mennah's our job better validated the search. has we Mennah for well new as what's Chief announced clear vision our done working our an She Earlier and interim our XXXX for processes commercial as joined operations and to our structure enable strategy future. needed company. what's foundational success to sales Mennah

drive scale. structure, growth from new and phase now organizational next implementing which a architected up ground are we our We the to of

utilization with emerging biopharma driving right focus Our Xenium deploy expanding This with platforms. across the accelerating new helps and market placements, customers, focused to our adoption consumables instrument structure also reengineers us how and to with researchers. distinct teams explicitly we go specialization existing academic on and and new resources

the across segments open over to I organization commercial changes be opportunities helm execution portfolio, that and these excited customers more maximize with superior us to Mennah work our premier growth couldn't up drive scale we at and the as time, delivers commercial confident and I'm superior continue results. a our build new and impact. will, help have

to afternoon. before X CFO turn transition is nearly Justin, the opportunity. XXx, I announced want to call we Justin to with earlier moving over a on take another to this acknowledge the moment years Now After I

growth to He team Justin profile his company build helped talented scale has generated revenue He an public, has a flow. financial cash took strong the during leader and has at us XXx. and been that positive XXx, assembled we and for tremendous tenure to incredible contributions and in the his him of the new best On his Justin and Board immeasurable I to want the role. of at have culture today. fantastic wish thank behalf luck has contributed greatly everyone

President sciences Biology to excited brings the to across take strategy, development next immensely welcome be and set business at Thermo turn to of XXx to and valuable me will Vice including Adam let skill held tools Molecular is and executive in him the with which very With the Officer Executive be Financial that, finance our industry. a and General Chief to number I'm Officer. he general management, roles Most unique at experience finance, Fisher, Manager as scale. also business. Taich It interim senior a XXx. served a Justin. of life decades of SomaLogic seasoned Chief XXx as Adam X than recently, more the has will strategic new leader joining

an the mastery human been biology continue you, cell years. Thank platforms part biology. This a make. X team how bright and past and Serge, very and continue Serge. to believe have in conviction be to the I'm firmly over organization opportunity single a spatial future we've the much not and proud easy It's has advance single ahead. to an leading I scaled how of I decision accelerate extremely and the X health. deep XXx XXX to will accomplished lead honor From was to a company we of grown. have with across product much the team to

financial our months for will updated year-over-year our turn reviewing now X June growth and the XXXX. the unless be further rates XXXX, noted. results. for basis on details All provide I'll to provided I'll outlook will on results a by otherwise ended then quarterly XX, start

$XXX.X up was offset contributions stronger by driven revenue Total lower quarter million, the partially by from X%, contributions. consumables, for instrument

total at consumables our $XXX.X revenue up was million, Looking breakout, XX%. revenue

by Visium revenue million, from XK, shipping for the up This as contributions as HD which primarily end XXX%. was consumables well Spatial driven at started we $XX.X Xenium of growth QX. Prime was enthusiasm continued

a Chromium consumables to work customer Chromium Sequentially, of and consumables new GEM-X revenue customers was transition in due prioritization momentum We there we in drive than introduction driven through elasticity trialing products GEM-X results saw QX. as expect to But continue ongoing. believe price more to In offset over lower still to the continued XX% experiments. this positive by spatial quarter. price. revenue and of X% GEM-X pressure. transition This some our was up is our is that lower revenue $XX.X near year-over-year, the time, stalling will the million, we term, down

was up down to instruments. XX% by fewer year-over-year, instruments Spatial Total revenue sequentially. sold. revenue Chromium primarily Moving number but to was driven decreased instrument instrument XX% Xemium $XX.X revenue on million, $X.X down instrument XX% sold, driven million, units million. to by XX% $XX.X of lower

service XX% contracts. $X.X revenue to primarily due million, up plan was increased Services Chromium

geography. grew APAC revenue grew to X% Looking revenue million. Americas $XX.X and EMEA million million. revenue in our XX% by to at revenue $XX.X X% to $XX.X decreased

million million $XXX compensation driven by primarily Turning for XXXX. Total to in year expense period. decreased the income the driven supplies. profit decreased Gross to prior margin the laboratory operating rest expenses, R&D personnel lower second year including $XX.X by primarily for laboratory prior million, second million and compared period. decrease was materials quarter to of materials quarter for supplies. at $XX.X to This stock-based to second period, decrease expenses and prior Gross compared $XX.X $XXX.X the a expenses for remained and lower to flat million, XX% of point. compared to was the the quarter the $XXX compared million, for the year

compared year period, second Operating of the loss to compared compensation period. a million SG&A loss $XX.X the driven compared $XX.X of lower $XX.X quarter compensation, million of stock-based to million was expenses, year for expenses $XX to stock-based decreased by including prior million as prior for for $XX.X includes quarter the second stock-based million primarily personnel $XX.X to year. compensation. corresponding last million This in the

in Net of quarter of cash the securities, the loss of million loss million was second net quarter. $XX.X to and million million ended quarter in and for $X.X period compared $XXX.X We cash for equivalents with XXXX. the marketable generating cash a the $XX.X

for of the the our year. rest outlook to Turning

the beginning expect in to million the $XXX to we range be $XXX full at growth XXXX now X% at the million, of call, of mentioned representing revenue year Serge year As full the over midpoint.

and level restructuring. updated commercial Our guidance factors from macro impacts reflects the

been with level sales pressures macro with elongated budgetary factors. and mostly environment, CapEx side start spending on and This I'll In cycles. is uncertainties. the customers we've this many experience constraints the seen

continue We expect these headwinds to remainder of the the for year.

executing improves disruption our Additionally, near-term while under new sales new long-term support and the a these believe roles Mennah's may that territories on model some customers. are leadership, we We we laying growth. how functions, for foundation cause

strong in on over of While $XX we total impacts to may out factors about to these capital full we near-term When months, have deliver long-term our next strength platforms continue the continue the of revenue, expenditures. million have $XX growth. to confidence anticipate XX to looking million

XXXX and to continue planning. discipline also in cash We maintain XXXX in our

and scale as investing the positive We is goal Serge. back still it great year and our Our to cash business. At to turn believe self-fund generated our year next a innovation to have by we this point, into setup drive I'll well. for cash into back flow

Thanks, of the by in reaffirming single biology. leadership and up Justin. conviction wrap my to spatial strength our and like XXx in I'd cell

growth driving map navigate we our and strategy all across in deliver road macro execution optimize platforms. we're structure, commercial As near-term our pressures, goal and X steadfast on of our product balanced and focused more

you appreciate drive, for stay especially for rally all now and mission. times our at I change. Of Thank truly it for XXx. of course, how our none Operator? that, commitment and together will you we your delivering in possible without open focused customers this on up team questions. be amazing advancing of our will With to

Your Instructions] Dan the Stifel. first question [Operator line from comes Arias of with

by surprised add people I half Serge or maybe on forecast year. in number in, but don't think just some our coming the the are Justin, you second beat the of to color the can Chromium. to guide

in And the sneak to implied spatial So if second the then but that's don't and I due made instrumentation? single I you've think full you know it range new you changes when have leadership. breakdown could new what's a do to comes is outlook here, the cell for where forecasting. is one Serge, answers internally Xenium And Chromium entirely the all and coming the in, here?

sales You've given force tools better the with. to work

you think what's by customers projecting do going when comes tripped here? to where So taking to it do up getting what you're are place

part around start I'll your with range. for the question. thanks first Dan, the

our So looking the the is as at mentioned we midpoint, on coming at call, $XXX buckets. range, from updated million when the X guidance update

looking factors, and And it majority And most of factors macroeconomic a on restructuring. smaller expenditures case, on that the impact of you're on Chromium. in impact the is instruments. macroeconomic with this when at capital commercial Xenium So

And that's so majority update. the of the

is of less to update The remainder that due consumables.

a lower team going instruments with restructuring amount amount the roles their out orders. new settles the be of go And And room so into some the to of smaller for there's ourselves then we're commercial consumables and sold, also, they responsibilities. those initial with giving as

Yes. on create in changes disruption. which macro focused said, the in attributed environment, making Justin I instruments. the to temporary mostly And commercial specifically in side, is then -- potential to we're are like addition, that Dan, your change on second maybe mean the on some especially to -- changes going are the just question, guide for to the touch that

And when the just high grow into QX we digits. last to single is one go we which high single expect call, thing we up grew said sequentially the earnings that we end would back on at I'll to add how look we next before question mid- digits, it just

We growth Chromium expected most due Chromium. of sequentially. that XX% to grew be to

the prior in level. last each and split and same to of QX when the at year that the roughly we at half midpoint much first second the your QX rate same top QX XX% seasonality we expecting year, how look around to QX, the it's corresponding second in growth and at over what's versus of about saw about at embedded half have XXXX, year period first half, we're to we're of allocate expecting that When guidance, half in the our the of we look just revenue the to range, the that second the this half. question XX% between And in in

Savant question line Tejas Stanley. comes from Morgan with next of the your And

of One one on the and Xenium the of guys. leadership side things changes, then

quarter, So customer do sense need first flagged models? on share deeper ASP been or to some the sensitivities the on that discounting any has there color pricing Xenium, just in you CapEx you here competitor can of light in -- trends any change in you

is then guidance you you where good likes new Adam? the or terms And with Serge, question share you to -- the leadership see in color in But on working if the been here, a had, evolution inherits. the guide do terms years. your right changes new really the under preserve over to for the of philosophy Justin, any any, it's some of always is input impair guess the has CFO degree he coming of I guide. from in she I'm -- he

So just any around be great. color that would

on mid- coming -- Tejas, and we in question trends and XXXs low very with from XXXs I part we time, year. the I'll the first beginning, the of about part to mid steadily of up instruments. on has particular. you in the year, asked saw ASP your Over the start the part hit ASP Xenium that know low into been this of first last in the

been couple has ASP. changes last as the quarters stable no relatively it of of and so major the in And

roughly the looking CapEx-strained towards in Chromium, seen between shift major or -- no But IX IX. before, opting When at more was weighting ASP a you're the X IX more changes are we there's as this at where in have the customers But the the environment, it for where XX-XX. level level.

instruments. weighted the does basically X between And ASP those so that impact

customers not Xenium, been, on that on really certainly the the and are at sort would touch maybe able we're new to quarter material constraints the We your of environment. sure change sort change is in -- something I on big with of their the our to work a around front. the -- say, relative this Xenium. them around really make looking to And budgetary environment question previous And that of There's we there. to decision-making around competitive

downside best of rest we upside look, far give currently is the As sort view different largely the on and of the of have concerned, as the the is our same. the the guide philosophy and look We factors, balance year. the at

your Wolfe And of Doug the Schenkel line from comes next Research. question with

quantify I transition the think just Madeline This in you the Mollman wanted if continued And you the How strong. on Doug. mentioned pretty GEM-X ask GEM-X impact could for are about the sort to of consumables I rest then of impact should about quarter? and of Chromium of for XXXX? year are the what the sort thinking we be there? into is thinking you

the for question. Thanks Yes.

how would transition. and GEM-X the As I of we laid in far we that would relatively to QX impacts trial played up, included we the the call. as QX due installing like impact out our last had we When QX, GEM-X out about on end the thought say talked

there towards a further be things, to bit we a this a And appreciating few at little expected Now as bit point. on than of ahead GEM-X also that we're little transition longer are the this a transition we tail is well.

that customers to thing X we those using continue can contemplating Gem to so sooner. Next GEM-X how transition is plan we're help who And them

next your comes Vatnsdal question And from of the with Rachel line JPMorgan.

the is This Rachel. double-click of year. the wanted I just expectations for Chromium ] Zaruma placement rest -- Marta on to [ the for on

You for mentioned part the the announced of cut. guide reason

should think more impact whether or year? are rest the the how the in [indiscernible] mostly of thinking we placements the the then for on terms And macro So due of competition? you perhaps to not is or how about

Yes.

by budget right scrutiny on to opportunities cuts. CapEx this of dropping sales I macro getting budgets CapEx cut. instrument elongated elongated customers Xenium out more resulting in, is impacted being sales cycle. I'd as with due purchases, out placements opportunities or We're moving seeing say now. seeing are some it's said, more an and So We're cycles

last between call, the talked would between quarter the we that. And large average in One that in range the year, XX at guidance is -- our funnel are of for expect about it QX, at and to part and look of [ thing, a amount in at we a expected about when an the opportunities quarter came when bit when we how ]. midpoint XX our QX we're when bit assumed each of QX thinking for short be QX. seeing XX for we year. QX range quarters about funnel about now, up the instruments we a Right and of QX we the little with less those On a QX, still X of second talk this to we look little more

part And we're seeing the -- change the fuel just competition, reduction again tried environment. to No, to changing comment follow a question. macroeconomic Xenium not of dynamic. a closely. Xenium maybe to purely opportunities start in on pretty the should is the The going the in number We

And your next question comes from the line of Dan Brennan with TD Cowen.

This Dan. is uptake customers I usage HD a quick of Visium you Visium HD about even Xenium? pretty Kyle and had for talked being speak Visium any Visium on being strong you had HD, has from on Can one customer or on to the impact strong.

yes, question. So good

terms well. extent, somewhat has projects impact expected. some less demand projects, of from projects to impact for Visium been standard customers, existing is actually as still we the continuing the ongoing new on to mean Visium, garner than and both [indiscernible] In for I

So we're that dynamic. with pleased

a So larger incremental. HD to has been, to large extent, a extent,

there's to And go. I dynamic in we which of some customers [indiscernible], mean, and between yes, then, Despite those are way choose a performance consumables, products and Xenium evaluating kind especially. trying where to the great also XK definitely had

So kind say. of good overall, board, a quarter spatial been it has would consumables the for I across

Patrick of comes question from Donnelly Citi. line your with the And next

restructuring? and is if cash with flow you on positivity, can this Patrick. on towards This I give profitability like new for an commercial path was especially Brendan wondering the update

Yes. Great question.

made this look this We back or going And then flow flow would back cash Visium positive -- we we well. QX, and that had quarter, the have QX. we payment flow we to if for quarter. were were flow been both HD been free free positive as the cash exclude QX, have technology cash the or acquisition in onetime to at would you when positive that So cash related

over a few last great quarters. been trend there's So here the

we about said drive year. -- setup that rest got the When rest of flow of we positivity we've for the talk cash to year, a the great the

business. do in think there's some the implies optionality need make best that investments reserve not for business. do understand, what back that's of that so into to this there. And we but cash the reinvest to that is accumulate too, the health the at to longer-term that generate the that is we right targeted cash, We our that just to goal And the it's stage, we to

positive But is there So really swings in. and be stay how this invest the to all control slightly even trying longer thing about we as and that you're most realize for think have optionality important back do term. this could to we how [indiscernible] roughly to from we quarter-to-quarter full

the on restructuring. And point around Yes. commercial

large in cases, to to restructuring of of resources a are So had redeploying now redeployment extent, a accounts and be those of constitutes we ownership -- have and this many customers. functions we where before, kind to overlay explicit functions --

growth extent, again, forward redeployment more our it it's, to really going cost but large But does We are good scale it's while set setting to commercial up going the an to the -- us about new so efficiently that incremental in investments rather up increase. structure. a a does we're it be maintaining drive than making organization, structure modest and

Mikson Canaccord. from with And line Kyle of your the next question comes

start We board. and just you good know with good like well, luck Justin, questions. him to addition come on these to good saying Adam I'll past years the it's working a team. by Two see

shares to spatial, is [indiscernible] much by price taken just -- last over Chromium, that just by is that higher you point and being is the still is Xenium. guys that environment to X mentioned being First single quarter, -- impacted -- on cell happening? compared Why macro the so due

on the company? recent then in to kind Second finally years? to going why the able is are mean a growth we you commercial such make ready organization. question a change that few And protect XXXX, factors weren't Does is that that this dramatic since is like Why were changes reaccelerate you change here, confident now guess? I to of hindering after

Justin. this start. Kyle, is I'll

So first working been with It's you. off, well. great as thank you

As big it's far that instruments price sell, bit other the more It's as highest your question around the quite Xenium. a customers. investment we than Yes, and instrument. for a it's

most but to the we're been has the impacted. degree there, Chromium, that that some with X X the and been has But that IX, and and the impact so on Xenium. not And Chromium CytAssist Visium seeing

what's of optimize Kyle, structure, trying with Yes. appreciate that restructuring, to lot without question, us of creating The adjusting And -- and gained now. [indiscernible] different -- always terms the we of the and for the years or going to past incentive to have compromises the another. be of important over dealing thing why X specialization commercial a that learnings of approaches a and and is with you're as X-plus X in kind clear restructuring to -- is our we trade-offs became trying holistic you're things that

territories so really of sales in we principles now going light scale the really our back, of are and rebating also mind. And architected we'll learnings and imperatives specialization much is, that much our we of much have for forward, those we portfolio from principles in of first this feel given those our organization sales growth are given to strategic with all where And good stepped things where now going be kind those and and learnings and from that can kind and roles about a -- we both deploy more in kind a where more sets well expertise team, for us sort up landing forward. cleaner manageable and sort responsibilities of clear of

And line Dan of with the UBS. the comes next Leonard from question

Dan. is This [indiscernible] for

And can a convert describe you orders? you academic to little want fund specific all [indiscernible] can help with that also any a opportunities the then see trends Do to [indiscernible] then the like now, markets market? formal within we and the witnesses mentioned changes any differences? commercial the touch you to the bit right -- on that think strategies I

Yes.

NIH the with a across to as Different you both sort of news well. especially as with have versus and mean, end in now. There sort seen as for actually right biopharma, challenged so projects of sure, far is like of happen be So globe [indiscernible] markets, academic I and lot an on but sort pressure Americas, AMR the on. dynamics really challenges in of both definitely we when widely look but

board. a we're But kind So following that. yes, across of gross the

force of sales got conversion sort Yes. moving of creating what the those we're question I and sales. creation and executives. sales specifically that's mean through of specialized that, of is structure opportunities the in as And think part own we've do doing far instruments with that's going big we a converting help As a for here opportunities, terms CapEx around management to funnel. of into Xenium its opportunity specialized both

next from question comes Michael your Bank And line of the Ryskin America. with of

that's do but was for month offering by what go curious a ago, About or just could that about streamlined maybe some cell if any landscape that lot you're a take? private possibly if go-to-market happen customers hearing realize more strategy. early, a Chromium how it's just the but over small for some some think of sort on where competitive response going from major still the to I you a you -- of in anything global speculation to is a your and single of might positioned space expectation vendor me. company, deal combination sequencing Just announced there's time, a there was debate one of

Yes.

like to got always the and conviction. very the into some in know strong look, a company space attractive entry markets. attractive conviction. So And we validates spaces, demonstrates We by that we've large extent, very sequencing operate

strategy of as drive in or the has put new commercialization always growth as development both And new strategy space. markets far so the companies entry these as meant to what entry strategy is also this by counter contemplated companies. as have we and together product [indiscernible] into Our far

products, the it's widest Fundamentally, well the that workflows, performance, have great great best breadth known I think applications. of we

commercial the have it's potential entrants. which that sort again also strong experiments have helps of these adoption customer end market of to and any also new team both access, and a map a cost are important road to great really our team customers. on appreciate times and And we fairly that drive sales also purposes in terms customers that countering really increasing often applications greater these the understands dual our with. lower is intricate support of and And driving both forward We going

want factors market of prepared And drive our to good position. we again, and players so and necessary, the you we're I space, but greater feel take contemplated ultimately And in at always all to reemphasize, about customer strategy the expansion answer as we've these into new of together, success. our fully entry

Subbu line Nambi your of next from with question Securities. the comes And Guggenheim

on is for This [indiscernible] Subbu at Guggenheim.

-- there you peers And growth grew if like what grew about in Could also about struggling year? and year-over-year, China some of rest all -- the -- like drove reported whereas strength revenue lot you China the Could color China then drove it there that X.X% sustainable almost in the and XX%. strength it Or the like provide of you some it speak in you similarly, well a consumables? have was the looks You quarter. not saw looks looks it as through the reported this revenue on quarter instruments? EMEA, what it was for

to It's the on environment China to big a to sort visibility. It maybe been understand address. very problem so China to big, in market very was dynamics was challenging and Certainly, of several there. are them any touch have And us first. years. -- certainly, hard hard the an for Yes, to past very

in a doing restructure closer distributor our our been underlying service and set there's have also our since to relationships is somewhat improving get to of is somewhat year performance, -- going dynamics have just work lot We much that some demand of getting favor to been think the last I more customers, that our recently. some or really -- relationships, provider of visibility

of Goldman Sachs. comes next line Sykes Matt question your with And from the

great It's opportunities. been new the you. on congrats with Justin, working

of confidence pricing? this of the this growth Just to -- rebasing growth offset will an X What of And consumable this how Chromium you next. given I for you mentioned quarter? is quick the your saw sort year sequential much me. over that of course GEM-X think, be and of will level into in the the improvement Justin, ones

the placement of growth, that? how growth over can in Secondly, year? result this just installed course And utilization existing base Xenium the about in reduction the of installed increase the of as should lower think growth base consumable Xenium we the offset a

All questions. great Thanks, Matt.

the I looking when in about I basically we played transition, on largely the when expected, we're we out. of for bigger think in we initiated to at although the dynamics probably like about Chromium, talked year think to last we magnitude played talked the we -- when drivers going the expected end when what we had those guidance went back QX the and out of QX back call as impacts

great I obviously, saw think, on again, it's the like QX, same and growing drivers both to a on sequentially consumables, the from XX% sequential instruments Chromium, QX overall. on rebound XX% consumables we Chromium

we on you a in were quite for we into look comparison when get when year-on-year QX embedded year-over-year, in down our the range then so into was bit Chromium, that And QX halved guidance QX.

and if to get flat we QX an year-over-year. increase year-over-year, expect We to roughly flat, Chromium expect pretty not for in do close

look that had all like that well. that that because so full still the us and and And level decreases compare in macro But play as at at into But in than update. guidance year. that play for confidence do what harder hit you And have had is customer obviously, year of our is that dynamics is I just decrease the you environment to I had going in put think out that the expected. we're QX, we together year-over-year the when a the instruments there the incorporated seeing there's -- QX the downside factors other going we think And update to gives consumables. is we the this instruments,

the great Xenium pull-through. Xenium, question on For

to decent get But now that would lower growth and placing Xenium in up. impacting mean obviously, future. us these spatial as more We have we instruments, right lower consumables transitory seeing factors start that past in we would expect placements, consumables. pick been With the

earliest look cohorts, of purchasers earliest instrument, utilization. increasing we still our Xenium When their the at they're

customers the through period. is that's using it they training start and that seeing X-quarter go more when overall lively, a from there buy instrument, probably installation for are the a We decent about ramp-up ramping period

quarter So think important to is customers quarters seeing trend longer. a the for that the thing have that towards utilization those I the had versus away difference are But we increasing it this that instrument between over is have X there or time. the take had

how around pull-through on the introduced Xenium then the and There's instrument. lot that And can XK. Prime that, just impact excitement use some have a customers we and of

in And is are investing believe that placements, overall I for well, as so will a high it that could but decent is instrument, that plays think ourselves there's interesting overall, future. an going itself And instrument to that that in the And an that that to term, be out have that. we of too. in those that have be an are rate a believe I of ton do how around to instrument that, low-margin excitement we been longer customers pull-through there's see this pull-through a investing

feel about good detail more are this but where than not trending, so to that And share things ready point. at

from comes Matt with question next line your of Larew Blair. And the William

in Serge, talked last longer-term per the of $XXX quarter, was you for pricing Chromium sample. about context obviously goal of

journey You've would an pricing be significant you GEM-X demand that level, there. belief the and step X when reach and talked appropriate about elasticity that there on being

view continued versus you of on X your advancements part? So kind journey commercial that enhancements few on -- the technology last the additional product reliant How decisions much months. where or curious perhaps just of progress is over you've made and the strategic

Yes.

been as there's a prepared sample for relative earlier a reduced I've So my and mentioned significant that Next remarks, in With of because elasticity by per the saying also we in strong GEM-X, do believe by to throughput. demand marketplace. it strong, and twice GEM previous I we while the the about architecture as price has much per XX% amount price decreased cell actually

cell price the down more than went [indiscernible]. So per by

a appreciating larger numbers of that. kind result and -- customers that, of running of seeing for a quite sure, few are cells as to We

overall the some of they some them on to this same budget lower they and effect have price spend taking or either The just of spend order number more would the same -- and first otherwise to running just ourselves. -- extent, samples from product just evidence be more, tends also kind do as will our expansion. we market long of more to demand ultimately drive some of the running much believe run, that and those prices we the see Flex But the that in

is signs elasticity pointing will of the massive steps do initial And that product headed. lean still early where launches kind of we're Again, here. Again, are that are demand to changes, too we and good journey. of to expect along about into sort configurations but forward, GEM-X feeling the going further be things Flex

plans basis, per it's on We and per a the we'll are experiment facing, that basis, out to be sample to bottlenecks rolling due basis, our go enable address we we of globe that of forward cell commercial per have do time. in different [indiscernible] our cost well. whether efforts, customers these putting restructuring as and focus of is more as And too, part also on the those

question And Sergott the of next Luke your with Barclays. comes line from

back kind the the want conversation and go Xenium to consumables pull through. to about of just I

look forward strength a talk here, what perspective. any air as in the the stepped you mean So XK Are has that waiting really could about happened down? the pull-through quarter with quarter, what there in seeing Xenium we're pull-through the does from that in of will about that progression you Just Visium going for pocket kind the thinking the like?

definitely amount pausing I with yes, were anticipation both I look, There Xenium. customers mentioned and we XK healthy demand some ultimate we Visium earlier. start the orders that causing like said, the think was shipping the business, before, once spatial really both so, as of But in actually the product we actual of Well of had June. in from kind of sides strong was

So of both franchises. yes, sort I gross on the to think sides strong are dynamics underlying so both

at Xenium to slight like, so bigger they're versus of and I solid Kuke, well. there this instruments. as when impact seeing out looking impact we try in to just talking add that, before less of than that. an has impact opting looks Visium pretty jumping to CapEx customers are a our instruments you're anecdotally It's because But although to pressures, been Yes. quarter-to-quarter, CytAssist think do Xenium like and [indiscernible] on with [indiscernible], some been CytAssist just environment,

conclude today, for this call. conference today's questions does our and of all is that And

now disconnect. may You