Singular Genomics Systems (OMIC) 2 Mar 232022 Q4 Earnings call transcript

Greetings, and welcome to the Singular Genomics Systems, Incorporated Fourth Quarter 2022 Earnings Conference Call.[Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Mr. Philip Taylor. Sir, you may begin.

Thank you, operator. Genomics' Financial Chief Officer, Singular Spaventa; Officer, are Chief and Dalen today Founder Executive and Drew Presenting Meeter. XXXX. Earlier results today, XX, for financial the X Singular months ended Genomics released December available copy on A press the release the Web site. of company's is

statements to X, our Before or financial and you and strategies. a expectations will other XXXX these and to during call risks plans only, that questions as differ views information forward-looking inform reflect plans, uncertainties. we and your would management's to and of statements comments certain including I operating estimates, and and related Actual materially today's predictions, results, begin, opinion from implied as like statements, may responses results of those today, include result expressed March by

in Form uncertainties release filed Form XX-Q with the X-K and are press today in including described Commission, XX-K press with recent Exchange today's fully more our our our and risks most or Securities filings release. earlier issued the These and and

Our website website. or found on on our SEC SEC's the be filings can

for conference reliance will of Investors any page. the the statements. forward-looking to section our this not Events note place on on are page replay audio forward-looking Investors website to our at undue these singulargenomics.com that update statements. obligation We available or cautioned be on Events revise Please disclaim call on News and

I the CEO, With Spaventa. call turn will to that, over Drew

quarter to fourth Singular XXXX welcome Good Genomics' call. and earnings afternoon,

important a productive year milestone We company. are update a as quarter for pleased to as well on and you our very

and new key and data key pillars of second, success. focus XXXX; on third, three accomplishments XXXX highlights will business We the first, and product announcements; from areas:

customers, first been as key first variety company commercial research positive, highlights and to delivered we major brought lab GX and Feedbacks a goal from instruments segments, core and of has customers milestone shipped quarterly including customers business from lab. proposition resonating. value the and a foremost, with market is market to academic Starting hospital a a revenue achievement. Initial and five we XXXX, span the labs, our a

speed were At including Deaconess Three shipments Mexico. and College of initial University the New in flexibility them Medical volumes Medical of the of our sample academic Beth output instrument to of GX five spatial a varying Harvard, has been with and Harvard's requirements. Wisconsin the to a core allowing Center, Israel single cell single key to the utilize run experiments and labs, and

our their times. impressed able team GX industry-leading combination It and Wisconsin, ideally customers the to is the of applications. flexibility been address exciting At data the been of and is high University suited of has New demonstrate the the that initial of Mexico, College speed, to accuracy. GX's single day diversity Medical At power, of have turnaround with sequencing the the of the quality flexibility

To from the experienced important scaling, integration alternative QX, by chain suppliers build to long team have time components and milestone with and bring implemented final moved reliability of The our advanced subcomponents a and and achieve with complex ensure last meeting redesigned mid supplemental up certain the required lead this suppliers, commercial manufacturing to that assembly, end to The testing QC GX reduced ultimately instruments. system specifications result testing metrics, XX%. qualify challenges in swiftly our year. times, we team supply addressed discussed and

several goals, key to other In year for to achieving the our we GX had accomplishments addition shipment note.

PMWC, and growing AGBT, of continue talks, and communicating North brand XX out proposition and with value including of AMP to American demand industry territories We increasing expanded We marketing presence the the leads key awareness trade funnel ASHG, and continue the driving our nine build sales at GX. team our and opportunities. our to conferences

as of GX XX. prep and integration total library XX existing and with remove This to bringing of designed workflows to is prep seamless analysis year-end analysis partnerships into a barriers data the signed to We facilitate and library the adoption partners, pipelines.

facility reagents. road state-of-the-art commissioned production space progressed flow and and rooms scaling to lab work In operations, improved for our clean to an successfully nucleotides, audit we completed cell new of of We our instrument enzymes, and dedicated cells and ISO-XXXX on GX bring manufacturing and kits R&D specs map market. consumables flow

access in-situ cell technology second partner progressed during the spatial building is pipeline. our several system analysis, signing more our prototype our This the for and, methods and first the and the year in for developing we capabilities PX, development single program. product Lastly, systems system high-throughput recently,

important accomplishments contributions of forward. amazing made Singular I the foundation going entire to XXXX. thank want establishing role for at a in their in for All play an these cross-functional success team

new feedback forward. It solicit the an all product customer to to lab value with opportunities proposition new at develop was February. a data and attendance. drive the on of opportunity over Turning in provided Conference early scientific The on leaders We announcements. and event and in relationships, GX, and event XX AGBT display successful the generate KOL directors leads hosted

new the GX to into many a with and the including robust power applications single diverse reinforce genomics putting system accuracy high set partners, cell sequencing, flexibility, display. GX sequencing. These and data diverse fit data sets industry-leading the and workflows, GX's showcasing sets, exome on genome of across We presented XX thematical whole collectively XX speed, ability accuracy sequencing of

low single $X at sequencing their to achieve the to based We million bench of pricing quarter. users at on the in kits The same users NovaSeq system. favorable Read sample response. read. kit method to economics. flow $XXX begin Max launched flexibility novel We sample a shipments intend top for allow per cell cell for or flow on cost our will provides second allows run customer million or single level down cells or Read GX's reads up up billion The cell the to of volumes the scale per Max cell get single Max with per X.X to XXX sequencing per run enthusiastic the Read reads

pleased Chromium flexibility The the we program, independent that configurations with optimize the of the Singular way efficient matches flow joined theGX's used compatible partner most to experiments. four were demonstrating four platform. In XXx an to providing sample GX's run genomics onXXx's single-cell lanes Genomics announce cells precisely the chromium sizes single with and compatibility XXx runs, addition, widely Genomics for cell

our or we XX% of FX the GX to was encourage the And the XX% both lastly, QXX. equal you and reads, to of sets posted Accuracy see yourself. for cells improved greater flow FX cells to and FX was million and XXX respectively. to specifications FX to accuracy and website, read The data for we raised flow increased throughput visit counts. and range XXX million specifications are and on All up to up than and product

I'd to success. we is The success like how third XXXX thinking talk today about are this year, about topic pillars of four the

system This on and items: following the reagent GX placements; means executing satisfaction. First, measuring customer key and execution. commercial pull-through;

starting We positive of deliver and and have are start with collect feedback beginning a data metrics. receiving field, initial the to to good to GX each on sequence, the and in these we customers placements set

GX applications share. the product establishing goal quantification. specific of framing TAM our Second, market the market and segments, capturing market means in This in customer with measuring progress and fit GX types GX credibly TAM

This manufacturing performance efficiency, manufacturing and goals have quality in chain, excellence. Third, reliability. operational supply the we and objectives side improve system where encompasses to

and in of and up this year. key a overcome, supply continued were challenges progress was made focus on manufacturing XXXX, this is chain with While area scale

Fourth, innovation product pipeline. and

as all applications specific higher PX, exciting and you the throughput, and year new the an performance sequencing with look and accuracy platform. have reagent higher of lengths, specialty the for to novel updating and We improvements course, read including high-throughput We content progress. GX the in-situ pipeline kits innovations, first application GX workflows offering platform, of in advancing specs forward kits through on longer these

outlook. some I it the would Before like on provide to Dalen, to we turn color XXXX over

and are with incredibly from of AGBT encouraged the terms into magnitude in by We of interest leads. funnel well sales triple the qualified digits the engagement

budgeting academic interest, of We purchases typically especially sales in in result the in year. cycles labs the strong where half longer and seeing second are instrument

real growing opportunities. strong and is funnel Our with

indicates months. Engagement with drivers be the GX adoption become as and they will Max kits of the available coming the FX customers Read significant in

later placements to This to sustainable success. on experience this service support such during for scaling for applying taking improve moderate instrument things as preparing deployment, learnings We early deployment XXXX, year. make ensuring phase and sure a a time lay foundation and reliability slow important, the in early meet phase expectations positive we consistently means launch and currently equally right are and the and necessary system this and customer from a customers' early

We additional earnings QX XXXX on provide color our and call. updates in will

details the to quarter With to fourth that, over over the I'll Dalen financial turn call our results. of go

and metrics XXXX $XXX,XXX, the the the QX covering remarks I you, Revenue I cash placements overall will provide for revenue runway. instrument key three totaled up financials. Thank quarter. by the XXXX directional of quarter on during will start of recognized Drew. on XXXX predominantly Then for made fourth

margin approximately training first higher installation, as our and with and well credits as associated Gross warranty the of extended flat XXXX,driven by quarter was fourth during of system the consumable costs support placements.

product to stock-based compensation support for XXXX million quarter by QX XXXX our included R&D and for fourth $XX.X These pipeline QX operating expenses and noncash, increase infrastructure million in fourth million compared the road including and expense $X.X primarily launch, in the of driven totaled scaling million $XX.X The XXXX. total $X.X was quarter GX year-over-year XXXX. to the Operating of totals growth, in map. of expenses headcount

$XX.X quarter for of or of million share loss compared to the $X.XX or XXXX. Net in $XX.X was quarter share $X.XX per XXXX fourth the fourth per million

totaled count loss Our share was used $XXX.X investments, cash, per weighted cash, $XX.X restricted calculate And approximately excluding cash short-term million. quarter and average equivalents million. in share net for to the

comments Turning to directional on XXXX.

will the to value on we Drew excited we resonating as We ever. intend GX moderate in early support placements, essential to and appropriate. by customer and and our first believe feedback, As more year believe is proposition be recent it placements been we've than launch mentioned, of focus

the end the around discussed. to As lumpy and previously first be GX of range lower the trends the in we expect such, as of year half placements the

in space. our ensure emerging establishing foundational of system highest is credibility training This are as of the is installation, days to an still One and long-term the bring are early the to in experiences positive. up, as company success support we our priorities

across increase our We to commercial, to manufacturing, priorities product expect investment R&D. and XXXX operations related

mindful focused of are we for the capital environment and macro management. However, need

cash second half Our existing resources intent the manage into XXXX. to is to extend of runway

and Thank remarks. to Drew back closing you, for

I today's closing, of In to Dalen. themes you, reiterate Thank the want update.

manufacturing. and GX busy First, customer our milestones challenges We I'm was brought placed supply and first company. for productive navigating a filled and in our market, generated Singular the of in the labs year It team while the revenues, in initial chain incredibly XXXX. scaling to with proud many systems all

announcements for interactions to recent GX kits the FX from and quality and flow improvements right competition. the the have we Customer cells to spec Simply Second, built market product differentiate like system. and validate the Max for cell product portfolio, in FX Read throughput from enriched sequencing partners fit. feedback prospective continue stated, the single continuing and our

additional in to market segments; products which the And in-situ installed third, First, R&D for we third, manage and GX market commercial scale; we're supply second, and will in by measure at adoption pillars: platform, XXXX kits four the and our PX. excited includes sequencing year greater ability customer and fit, improve by TAM first a form of XXXX, target growing and front and evidenced across profiles high-quality execution innovation excellence efficiency, which product customer fourth, chains about of the on opportunities deliver base in revenue bringing our success to market satisfaction; pipeline, advancing measured in GX us manufacturing largely the operational in

open let's up it questions. Now to Operator?

Instructions] Thank you. [Operator

your from first is John question post Please with Our question. UBS. coming Sourbeer

that just is for for Do X sounds little that the guess, there. taking Hi. X like bit see behind what half you now to the on the you is to going of Thanks months. headwinds for that of the instrument end Initially you placements? your clarify, manufacturing and resolved? these And to you're question. year first for into the lower digging Maybe it I of just, thinking had be at a

Yes. question. the Hey, I take it John. Thanks I guess will in for parts. two

your tremendous that developing, Anytime be first made going a it learn about to side, ways. prepared the the progress. in you're field didn't things you're to Significant talked the in new you repeatedly progress, have internally, but work when hands On in remarks. We deploying break customers' complex they done. still you things see we in instrument, manufacturing few instruments running

we build it There's is long testing on going to which kind hand definitely either down going weeks goals XX% obviously on improvement last We be there. be year to an up, customer from to the there's improvements internal which internal can get we how even where So of we do manufacture, how instrument in or It's to now. to at and mentioned to further. external. were takes where have we Also off measured quickly bring and and of that. improvement the current ongoing time we are us end improvements then

half kind kind on the lower part QX of of yes, first and first first apply we the with five the moving half the ramp side instrument pause be side, expect deployments took the on second And bit year. of learnings be to steeper the will we in year. a kind QX. a of little the On from of lower for more, shipments of the in much QX to of We the side into

leads Thanks. That kind question. next of to my

maybe additional with color or you that from initial learning across any customers feedback five software, out us? installation can on Just there those share

I really happy. we and everyone overall, running, reference Yes. have And up Yes. And five sites. five will mean, happy sequencers that service data. customers is the producing are

an up, every have that's instrument damaged learnings and support. How calibrated are want customer up, think you The to site. learnings, shipping. don't extra in Installation ongoing then you or future to it it an a time once on be making ship important the it's sure sure spend placement shows foreseeable every make wasn't for shipping. and reference early bring you really board, I do point. learnings placement, the across We

areas really and board. very to Overall, then obviously it's lot we be, certain also robustness having on working exactly and training, of want reliability, across there's they're more you make want also learnings well on But customer put we're And instrument side, of apply that packaging there. and the with a to I before there's where do experience the before mean that units you out to consistency there pedal customer go quality metal out data. the to and you that producing high you and sure learnings have units putting really kits.

just expected of are that's are. we we board. are about as that through and across learnings really we So good And of the where working kind feel really kind the

last then for here, Dalen. And Thanks. maybe one

Just color appreciate the of cash XXXX. second runway into half the the on

and burn? on, we just Just give should the puts any about additional and cadence can this year think takes you us that how

OpEx There for and were Thanks John. hey, Yes, QX in there was seasonality burn a the related lower. little question. some bit some Yes, and to payroll labor-related items.

through we In looking through budgeting our are addition to going activities that, XXXX annual and prioritization of the investment. process,

I of bit. think just course pace natural a spend little of that slowed

baseline million. pretty a historically, good I in year. the probably If about adjusted expense a starting But annual for think here increases quarterly to in been look that's good QX I just of kind rate baseline of employee for run our a think XXXX, start to you $XX And that's little burn merit base. kind bit salary has the about think

Got the and questions revenue the milestone. congrats for it. on Thanks

Thanks.

you. Thank

Julia is Please Qin Our question. from with your JPMorgan. coming post next question

Thanks taking is to [indiscernible] This Martina Julia. question. I customer ask wanted for about just for the mix. the on

it's but mentioned you hope as see previously towards academic, to a You shift biopharma well. mostly

So expected share for there? customer Any based your your 'XX current what's color can you on breakdown funnel?

Yes.

labs. now, Right funnel core look think of probably, think, installed aroundXX% I the It's or and fairly current others. the representative labs to would it's what like. think we base either academic, we academic will be XX% expect I majority investigator

time. out not will SKU direction. even in think it's So X more We over huge a it

are I academics lot think adopters. in kind are early that the of ways a we learning of

as leads out, the But get qualified are going there people think mix the -- time will we out probably biopharma testing, call, we that clinical other change establish further or are what in you central be, when companies or those funnel or we CROs as talk and doing kind labs that that private will of well. the and that, system to market. about Some over

then in in cycle it And how sales trending the changed 'XX? far the how XQ, and is you. question, has Thank so second

Yes.

longer. So a these of for types bit sales they're little instruments, cycles

X-month able expect months there's this last X know cycle. to from Similarly, a that's much year. to X X take up We speed fully and sales to hit quotas. year expect to hired really we to be don't if I rep get a to change into it

looking we really convert side, really budgeting and that's academic haven't into demand certainly purchases us into the more the On when when although into much seen this giving understanding change, better will second is placements, half. more A they'll cycles put they'll visibility those to pay of and midyear take half lot the then QX. in second and be request half for first mostly options look year, on at academic of delivery and the the the different their budgeting looking and cycles,

I technology in private On the are macro think the to side, adopt more new people little hesitant or a spend current we money seeing environment.

change So I think will at that some point.

private sales with So academic longer cycle maybe unchanged. companies,

questions. Great. for Thanks the taking

Thank you.

Our with question is Matt post question. next Goldman your Sachs. Please from Sykes

thanks first questions. afternoon you. the one and good maybe for my for taking Drew, Hey,

the You mentioned get additional TAM and that willing and have resonating, the the, to you differentiation you're to just what GX analysis, realistic more sort this of if a done. where guys that future? TAM on feel addressable year and you of analysis love with bit the of does like the where you output that TAM of, share? would of sort is kind to into sort sort little color I And that portion think of of the is

absolutely. Yes,

it's big numbers where if NGS, you billion And is look a of you there's of going market, X kind are academic breakdown, the the of RNA-Seq half our to current all But $X majority again targeted about is. XX at summary, years in academic. share and growth the analysis to different at be of models panels, to or current the going doing if TAM think cell. how and about the happy start and single market separately. are of our high-level We be I with that the guess and

So in Read are solution be real sweet such of when early since that environment the things we spots will adoption a us, RNA those RNA We where real for academic and driver a that application. especially think academic converge, and single-cell it's think coming. differentiated popular adopters Max really for about with

new in kind that at look your your are we is to even the things, adoption targeted think that's medical fact suited patient-critical you side But speed, the think and the clinical point. price of those earlier, adopters throughput, early specs or the When lab, something is We And really good likely at individual new curve. just interested of really quickly well as or mentioned putting onto GX a the a of majority and clinical samples aren't the very demonstrating. samples probably we're panels. how center that very due further we technologies The academic can run on go. addressing a centralized hospital for reality we that's are technology, lab,

time can definitely on more you with TAMs. spend we So those

And proof can panels, And centers that doing and that about in. are early here to how of we you the that, going be to what think well, say we real is and win part show are in able metrics. if are points traction? the if are in going customers we we have proof well, points in have we point are and the we we getting single telling targeted But customers a now, do market, play start of understand where academic win to year from case sitting to market the those of use cell want we you where academic medical

we'll more that's So mean, share on what it. and we

in the kind on that is mean, kind academic priorities your of you those focus Max some second And comment feedback we and of following leading Max terms other and you've and shifted of develop if it specifically some my where on like to gotten channel it. based about in to just shifted R&D development? but of the you've maybe your product just of which I maybe just the and pipeline, any Read, the focus question, on you terms in you academic to interest has products on for mentioned, had focus Got up might to want where success, have products Read has applications of products priorities lie? their where of spend it on spend sort

has. Yes, it

can -- that we about we a technology applications. other talked of types Read short think Max I being serve read

and to really we Max reads. looking specifically that qualified that the a of and driver at, to lend themselves Read those kind look will grown our we're but of of beyond beyond have the at Max Read of nature that that how we say, a on funnel a that's me, in kit terms who we doubled months. applications think in say another that lot Single-cell And decided be has seen lead a on, RNA development. traditional yes, the at road solves haven't re-prioritized academic short academics X And unique using the funnel X internally, to And first to more have I QX So couple then additions RNA-Seq from, of the our and adopt. really for to than last point solution develop. AGBT -- list map then to funnel a you're are application And there's at a application. or the our motivator are kits now, reception, we've to environment the getting the that,

one one. it. Got just maybe And last

year, sort the color this the year. cadence sort beginning for thanks of ramp of on the in Just the of the on

about, get feedback collection you're the it of you're ready you're getting? sort the the target of that that As the of number on You've sort well? of comfort performing of inline, you lot to are Like this care manufacturing taken the back like want a Or initial up. of is kind to of, scale sort kind to? you base have just year, things to you'd to for that clear sort And a installed get of in more looking kind just of there of look what's issues. is prepare the, of for side, half ramping that

It's a good question.

to first the the think per almost month we half. year, range, now, you I X units I the of X think especially every comments think you don't loaded. to to be month, this units if to if we we Like think it's to that quarter. be being do X think We lumpy. provided, as go able to to on time change back going month some X in in implement months we the half going about moving necessarily and it's that to be color ago X took the per expect was X to said, X this into in just whole first But year, somewhere think I over back-end an average I it

again, we it's to but put good wave monitor those be out and appropriately. think going So gauge we where where are, definitely of and really instruments we about feel learn as we one situations I next the of

idea. -- think you an I that gives hopefully So

the XXs, low X, end, low and the XXs. the X low up in you're into to the On mid you're XXs high-end,

we I to So performing our like. make as think deployments that and has we be, the instruments that somewhere we sure of we be, with hard it's there the customer middle where will sure are making is fact are articulate ideally where every going just to but pace given the would success in

on Got very it. revenue milestone in congrats QX. much Thanks the and

Thanks.

[Operator you. Thank Instructions] you. Thank

question. your Our Brennan next Cowen. from post question is Please coming Dan with

the Maybe Dalen. one, first and Drew guys. Thanks, Great.

specifically color doesn't you is but I end? far, that to -- pointing it demand. it's a lot so what is you've know just It So the like given sound of lower

Just about is pointing or the what want the you on training to your the to say the customers. Is issues? this taking field what's there and and going You product it's with something of in longer end? delight are kind lower first

it's out I the of what at think I the really first put said. very we exactly Yes, we QX. end mean five

then learnings tremendous wanted got make to improvements And holidays we were across board. a we that back the from was there to amount there So of the process. as

first and of to implementing and down just those as it's of of the the part be And the deploying and additional the first more some It's systems half ongoing really and slower was it putting up half. the instrument, continued for the year, those about and think them and nothing to getting of experience it the nature entirety taking there's it. deployment running. learnings the improvements. It's down improving customers So going of a -- out, the quarter gas kind really moderated second kind for building of just learnings, of we of then applying slowing in an putting

like, like they're taking And on more like ramp any about, it it? box is place specific Or you is is it, need Or the just customer's these hands, -- in it are it to building? more use how they a the to on when instructed examples it to longer what what's and is like be learnings focused on?

everything. There's there's a still get There's up up. the then to I really is bringing complex bring the to different internally. into also want on customer there, we of there's kind improvements And parts think want broadly and on installation It we don't Yes, itself. specifics. system improvements improvements instrument

quarter. in becoming in that's the access We have right FX now available more broadly early

system and upgrades process. upgrades have in We software

in or about the we're to want thinking upgrades there's and next different time rolling improvements board So the systems upgrades or across applying, wave systems. we of that with and how processes the

it. Got

helpful. That's Okay.

using So we going or right we for be the the higher? in forward should what's below to ASP the something think Like the versus way about ASP, were GX? XXX something using the range

actually ASPs were them be. to where kind with in Hey, were we of Dalen. Dan, this expecting Yes. line is

from happening. a a have standpoint, I couple think things revenue of you

of And be off, and a recognized some period. kind in For the extended the of those first accepted, warranty. will credits three and perspective, gave systems from deferred revenue consumable here that value the credits got recognition gets carved subsequent we

where ASPs thought be. about line we in So were they'd with

standpoint, COGS launch to that installation two But of of of and change in those kind things market. you cost part side the a some of higher little more with established white system of of training of gets revenue guess, bit really, From that There little margin, a glove us become would for expect the was discounting associated just early here. for, there if the the kind shipment, We as more I kind here additional a was kind service. the it's impacting look at bit things. and favorable

margin. of ASP kind combined, those kind things are So impacting all and of

Great. And I the again, And number. digits. triple mean on, funnel color like big into the funnel? it's what Any the then constitutes a well

Just again, to just going about do details, the funnel? think you're all specifics the of give we how on not that but

we that need? has then think those are been the they're qualified mean about qualified the the numbers like? I budget? a does opportunity. thinking likeliness person and a mean I means things real to have about can those funnel but speaking to have And qualified authority they or willing Do unless to criteria And timing -- you how who it's around we when haven't Does we So Are look understand throw customer the are yet. with a opportunities four purchase? that the leads. There's Yes. what about: a and we make you talk think are we real a right lead, them

this we think criteria, So into year. all it's meeting is theXXXs meaning and that to well opportunity, four a chance a those convert have it we real of

I guys about maybe And that think you this earlier little this talked this Or so more But trends constraints, then heard cautious? with a so are sorry, it is Agilent talked throughout demand of private kind capital are being week. clinical about clear, slower customers? Dalen, said, private maybe labs so bit they just clarity labs just I'm at or -- or a just little XXXX, you is do tighter like there. maybe dealing we've this

companies. This is private more

yet. So really labs selling into not I mean, we clinical are

conversations them. with on patient doing the be ready probably starting year. sequencer But having the and are we sample, at will about prior end like into workflow our to question, next that clinical year talked something really have this that's we for of We

technology. or similar the or environment XX profitability. new adopters tightening, the general, months it want more try With bit companies, early technology, to say, to they're that getting really private the ago. extension companies And of it's In academic little to XX of just or ourselves, about new a side runway are buying on a are thinking people different was than, a belt private

all. that's So

in about you does PX. timing samples? the And you remind -- I just PX, that at the just much the is sending like domain lot, throughput customer mean kind like box the PX better on us, a but what said assessment, is much, mean a first then And of high the more color or for I what's is any -- wondering just market customer, a today. on tech like than that you And mean that's saw that differential

us color the more give can little a maybe on So PX. you

Yes.

physically provide the samples the program. of was and So on and partner. PX will experiments of a plan we it's access scope conduct receive samples And that to to question, essentially answer them those year. the a the part this few the back of work, and first technology signed We with outlines agreement to that academic those do

high-level, very then lot would So already that's the we just not of cells an and say the is in the system chemistry the technology to of that PX all supplying optical in coming in. is inside sequencing I a tissue. it placement sample of the and developed external and GX, the system, taking the of

at sequencing And So of the you things are really you're using lot of multiplex readout. actually the the readout, the the nature to situ about information ability using powerful second a there's the One, in to due readout. And or throughput. is determine that. sequencing sequencing the as we so two have

plate. XXX We well are working in XX and

samples very plexing XX a is XXX at high, sample the or So time. just samples

And final it. be maybe then just would Got pricing. one

remind obviously, gas. price on market down your I like per stepping I just gig don't us mean, what on doing. [indiscernible] guess, I it's elements, know in are the a coming since you know like the I where is today So

Just kind or no? a pricing is of is where is at? And with customers topic of discussion that

four to always cell don't flexibility or that you flow be then each mix can cells lanes, flow to it's be each the samples. scale for cell different really customers is to is which on is think GX important on throughput the system. the is that actual nice but I code flow down. going be and the of sell a bar the differentiation instrument, want has going benchtop and going has four scale given and Pricing configurations, equation, performance And thing up speed attributes the of is it's part to to the the And

of are the basis factors really interested. those So what's customers getting differentiating

at ranges still there And a top box to XXs. on of to $XX if a the $XXX,XXX are cells. at the to XX% to the about On which you gig $X we specifics. low gig flow from a maybe out into choice favorably cost it's the it's pricing four the is up NextSeq, doing quite $XX list. per you're compared we are the But bench for in new single box on side, are depending NexSeqs about cycles box again, time, about really what look selling from same a if almost output given then we the a through ranging the pricing And and predominant equivalent $XX is sequencer standpoint, in and power a against three it selling or on that. The low XXX end

So to NextSeq, more and you're really going times, the massive see you're to going savings flexibility. versus see run faster cost

down so. And where with costs is average single think, a then cell for And really to the single applications. read are for spending $XXX Reads, single application Reads, Max And a right that's or cell I $XXX sequencing going $XXX XXx on now with to out becomes to it to we probably experiment. get customer, competitive Max

to going be that's for driver us. So huge a

pleasantly -- where advantage usually on based So we think very, the price, competitive of prices think very on about the versus selling actual when system. surprised again, then they're people to it's NextSeq. And turn selling I when the

Great.

Okay. Thanks, guys.

Thank you.

question. post Michael Our question from Bank America. your with next Please of is Ryskin

I process, more Good Mike. have early back of is -- afternoon. the that demand? here, with rough for chain a of reaching Definitely idea again Peter when taking mean, equilibrium for you an days, like the do maybe flare be understand but This question. Thanks production it's doesn't would on assuming scaling supply up,

to say. It's hard

look again, we at that put think, expecting average on to per if year. to kind I of we we're those achieve the bars year systems definitely this in be error and month, able totality

we're sure going don't think we for into And it's we the systems to not system I expectations. looking I near-term numbers, think meeting just are that customers' get XXX% expectations. hands out meet sure if make we important to it's that and rush

the are coming and of very beyond broadly FX early customers One shortly. areas cell. something those flow in We is FX available, interested lot that's flow having a that's access that. want available to cell And get the of

we hit kind half we provide at more learning, in half. think we looking where our year much those improvements up at of scale be and and to through ability of don't to I and kind really So than second are first to other the color are applying right the the have of we this want looking strides funnel

right. you. for or quickly. All or you we updates I out then to the guess incremental be any can key that? milestones mean updates line you back Thank on of give like for of looking the kind Thank PX that. color And just I should what time regarding

Yes.

product, first with different Dan, do answered the We types we've a to have access those plan and on still with We each. the take have resources to signed date, and of one will are demonstrated of our GX. year product question really release technology we So we this two that focused additional kind like it don't to develop of experiments more or partner. still

out later this kits coming We in GX additional the have year.

throughout planned. the year upgrades have We

we much color. don't So I think at have more this point,

about building a the of fleet and betas. are close betas this large end up by should have talked to that. running. dozen a We year of We've We

year So to. if to we potentially evaluate we two the throughput samples, really want beta external next have or place

year get and think towards a product little in scaled successful this and GX I more probably bit and of market for start have to we second of the shift PX. timing color as the will So to that development half on the we kind

That’s helpful. you. Thank Okay.

Thank you.

are further conclude there this does conference today's As questions in no queue, call.

your You this you and We have for may participation. at your lines a time, thank disconnect day. wonderful