Singular Genomics Systems (OMIC) 13 Aug 242024 Q2 Earnings call transcript

Greetings. Welcome to the Singular Genomics Second Quarter and Business Update Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Philip Taylor.

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

expressed I'd earlier Securities today, inform and you estimates, certain Form begin, include filings XXXX, and described our more Tuesday, to a August and and those fully that XX-Q management's reflect forward-looking the to from uncertainties. today these materially filings our other XX-K today's Form with information financial uncertainties release. implied our result strategies. today's results, differ risks X-K release press and most and opinion are statements in expectations will predictions, during of Actual XX, plans, our questions recent call like press and statements, statements in views filed we the results with may comments issued responses to as These Before or Exchange your by as and including operating risks and of only including Commission, related and and plans and

found website. be statements. to statements. can website filings the any our obligation SEC's disclaim We SEC Our undue reliance on revise or Investors forward-looking these or not cautioned forward-looking are on place on to update

in and will Drew call Presentation the conference our for investor.singulargenomics.com CEO, over turn audio at available will to this Spaventa. be that note Please section. With the call that, now on website Events I replay

customers was access and a our in Spatial for services, of and productive instruments. Singular first Genomics' we the of initiated Second GXX Good collaborations interested add spatial XXXX our spatial progressed afternoon, Call. QX, quarter Quarter to and pipeline our projects; technology and QX development Earnings GXX to services busy Sequencer; team. In welcome

GXX shift of areas: earlier the the our year; two, focus will on spatial summary sequencing when strategy a proteins on call results; an at the Sequencer to tissue and stain, this GXX AGBT spatial pivot announced three, a of unveiled the the targeted our all transcripts, florescent is of to and strategy GXX a one, update our in Sequencer. services. We H&E section. following the Spatial in The targeted second the being revisiting and developed quarter We offer Spatial February readouts we following development same

In Direct-Seq, include potential addition, which the the capabilities in its will areas scientific of new situ and open sequencing is RNA of discovery. has novel to

modalities spatial market. of combination throughput on This readout profiling any will significantly offer technologies currently than higher

to continue uniquely is prospective to and potential many by spatial with throughput in segments GXX suited these that market. encouraged the in points address a to will and and be discussions believe has pain We limitation. growth be the experts customers. quickly significant biology spatial is We accelerate customer Spatial growing

setup deliver sustainable our savings business customers that encouraging while high-margin to The is cost a in we business. plan supporting to

process same continuing sequencing and GX a to offering will move Supporting platform, GXX customer of existing our our In upgrade base. to the GXX and and to are existing product into for for second believe GX The to improve customers, become experience allow is addition share most work their paramount streamlined a supporting an our GX the poised which we exciting GXX on focused customers. are to we benefit spatial will get to existing customers. which to market, development GX from

the facilitate prepare to with to is as GX becomes strategy convert usage to experience their them we the with sequencer continue GX GXX spatial sequencing higher customers improve existing Our to when and available.

QX. in been existing pull-through installed $XX,XXX was roughly for QX, annualized averaging usage base the base. System uptime the reliability double improved during and consumable quarter. installed seeing We XX% the has which approximately are was across Average

the the rollout In GXX. enhancements upgrade on reliability which we to spatial to usage recently our improve further for will and sequencing of conversion to performance addition, as the system feature and initiated of include we the system system package, continue VX prepare

move quarter in instruments one let's shipped one into results. We core generated $X.X lab an these quarter the and Of GX X revenue. the commercial a Now academic was second million to was shipments, and during lab.

on most customers. existing us maintain areas One for the to of focus supporting important is our emphasis

orders QX and We our continue utilization consumables yet for and in total system improvements quarterly was shipments. pull-through. to see highest consumable

for update Now performance on GXX. instrument are work let's and the advancing readout improving tissue our development, types development an In on modalities. R&D, compatible of turn method combined to protocol we expanding

spatial centered platform the is focus protocols. and internal around sequencing GXX developing the Our methods and optimizing

initial planned XX Immuno-oncology proteins VX customize and XXX panel our offering genes, kit to ability Our with GXX the will content. be

are excited the the continued have about technology of we and We to as capabilities progress development methods.

launched of see services, continue part In program was in as we projects service to interest in quarter. the second Services the GXX growing Spatial that Sequencing funnel Technology Access the of

consumables learn twofold: services customer available. in order generate Our development, accelerate buy will strategy to instrument running is the from in and when to that initial and product samples customers

award in top opened of well across is service GXX researchers throughput and it funnel is the submissions higher we immuno-oncology that ago, make flex, focus VX services our was by months institutions clear initial demonstrations from more market. Several the customers and offering which our the a in lower world. applications sharing research, applications these sample XX bring the later various in Our to project Spatial with award panel. received an addressing neuroscience. liver Grant exciting institutions using We a target program, look The year. in of prospective vaccine including some from diseases, collaborations in the need Research research, applications, interested over chronic the this these cancer forward institutions and to GXX of recipients GXX autoimmune our disease information cardiovascular study about development and received We diseases, unmet forward

purpose access select early will access of for Lastly, and incorporate we planning to launch learn intend number a access for feedback well demand. year. as both with late the to our as to include early GXX we this are early GXX, broader commercial which the program, generate of customers deliver This to

Dalen of over results. to through go quarter our to it I'll Now details the second financial turn

on negative you, Drew. second of purchase approximately quarter from instrument sales Revenue XXXX Gross XXXX. million during revenue recognized million the up X $X.X quarter negative second million $X.X on million, placement was million and capital the XXXX Thank from second $X.X of the quarter. to the consumable revenue in quarter of made predominantly recognized in profit compared for was of $X.X $X.X

of support discounts partially margins average offset and models, with purchase on consumable other was sales. in per system by of share by in to or due million a net million. XXXX. XXXX The expenses to headcount. Net totaled driven onetime second Our $XX.XX of the stock-based used reagent the of primarily compared approximately compared a to share carrying gross Operating quarter XXXX totals for million second QX to of weighted million rental million on of the XXXX $XX.X and in quarter expense expense second to in was margin compensation $X.X was of X.X increased the the noncash adjustment compensation $X.X value placements, in in GX XXXX. higher sales, included in equipment, count XXXX. the was loss related reduced These share $XX.X The QX noncapital loss QX of year-over-year the costs $X.XX second million XXXX and per for or property, to quarter quarter negative associated the employee use of due second costs in $XX.X $XX.X our noncash and XXXX and instrument higher quarter decrease decreases plant million calculate

and equivalents the $XX.X which timing driven $XXX.X quarter lower excluding implemented. of short-term cash investments burn for sequentially the previous than cash totaled the cost million, savings by million. Cash cash, Ending was restricted second quarter approximately measures was

financial note $XX wanted our execution which take focus a that I upon week. only that lease our operational Lastly, move amended reduces I'm the announced of comment utilization, obligations a better commercialization payment the footprint of flexibility, needs. included approximately more amendment paid also modification enhance The optimizes and GXX. on million, long-term to with lease lease a lease space us pleased moment resources allowing obligation to but to of we agreement. rightsizing our onetime on by not million. This facilities development will successfully was was last This longer-term our to amendment our the $X.X align it amendment long-term upfront to

previous such, As do to We QX XXXX our runway comments cash expect to not payment our be to burn Drew. we modification second the material expect you, cash extending late XXXX. Back around on higher impact quarter. lease have a the to than

want I our Dalen. thank work last quarter. to hard dedication the you, their and employees for all over Thank

technology our provide high-growth GXX' year. up customers of updating prospective interest unique target through lower forward an funnel. The in the and transcripts, We inquiries are solution by we H&E sample at to growth designed from are other around fluorescent you excited inbound target read a spatial on our stain throughput. We in collaborations pushing and solutions the need rest services the early in by on and for Where growth market an market. look of ability level a see flex evidenced the and will unmet the the research of exciting scale as flex, collaborators progress access higher proteins and sales to

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

with TD [Operator first Instructions] Dan the from And Brennan question is Cowen.

I could off think commercial and with bit Congrats reiterated early them you but time launch. kind just on continued the you about just through then Maybe of here just lines? and now, progress. access quarter little a walk about start

quarter, guys and think in I QX. you around were last discussing

guys lines right you time kind can the thinking still same Just are now? confirm we of of

to early Yes, access at We're access off we'll time services And Dan, do then in point, QX. roll projects. track later just early sites we thanks the of and and on first with this track. the part now of end We're a exciting sequentially our questions. other very are for QX, this on of year, through few first probably in midst starting the I'll lines. start

are We a the of to end planning year. next launch have towards QX commercial

little the speak reiterated? dozens of then which Dana-Farber can then more experiences. I interest more kind customers. the of you evaluating spoke some kind a the just the of front. well. talked Harvard, pathway interest know customers know the I product some speak on commercial And about on funnel, firm now, call. walk is had if you a of Just will, And kind the just level But of you the it's how to of granularity And you if and kind as to last level? not you guys then just about right time specs, through I as just backlog, I I that of to think, of maybe the but both, last you guess, the kind the Great. think, could you

Absolutely.

response the buying on we we've from or So based people up that really we've something feel partnering interested hit on from a in their and gotten services like of system set both here services own. to

something platforms than But less XXX spatial most than is genes. is and proteins. the about proteins, at we're And you have proteins in transcripts one samples the sample, of at. the this run, medical biggest whether leased by is I lot and I the need. direct that's feedback that is the sample spatial cost what that's can look a unique of most people are of exactly And they the exactly section times, we're in said mean in to throughput that point people genes, major targeting different want relates can that per than have a they talking what cost was of issues and and large transcripts a what XX positive do a enough oncology at other be And of do on what core XXX the -- more that's same a or The that dozen and more in GX it's directional on for GXX point information or if and that that scope and we addressing. very from think get that product. the is lab less a spatial we're which to will combination with customers a for you CRO lower lot very they're center. They per the

we're a number So across board settings seeing of and really applications. different that the in

if The right we when pharma. instruments that prospective we that segments in providing part, GXX other started academic X a different of customer I or applies settings. in is think one to to one contract organizations type XX now. was the CROs research bit that customers. with talking are in There a little mentioning, And the other into X we about is thing worth sequencing, segment those majority out have are are buckets that large services,

And is the now looking other cost microarrays. tumor area doing right a pathology medical labs less doing there's at than proteins throughput that's really places XX,XXX a the from And samples XX,XXX And like is have prohibitive another core high going are a to centers, places or and cost run, or to where say right want major now the that we scaling. run be we lot and where throughput. year these XX,XXX. things of and of symptom And that's and we throughput

encouraging. really it's So

count come them, have now pilot on then We're factors On those customization prioritize the of on projects again, launching things, we're trying instrument that. a larger funnel I what it's And services, on and we side we're think XX XX. this we the the based batches behind the than side, now are pointless side prioritize are still the have or time What what right to more on at of point. can of we projects have don't work to and services until to over some to to both still, as commercial really about the QX. kind require side. And doing think this do trying that is just that the that not

an much, in try parties external and advance it's get road. a robust our put for in meantime, and to just place or create projects long have that the it's could developed very where product the work head of down customer down that So a the services think tail we usable and instrument buys the

in. one sneak one final I'll Maybe

needs to of but wondering now terms between lines here plate, kind your and mean of manufacturing level of the or I'm in happen time there's confidence from the and of are a issues? or commercial what product then the what technical launch, full TAP hitting biggest these then. development just lot in sure and the on Just kind to I

We're to of how X is lot types. with tissue And was optimizing work genes we're it were tissue all a tissue on be different treated, Yes, still the types immuno-oncology depending it initially as how or across Dan. variable different about quality Thanks, was and types. different possible protocols stored high be as lot of can tissue conditions. stored our proteins a and in across that it how different panels understanding launching

of So part that's one it.

we're workflow we spatial instruments -- is done understand as before through that product the being in friendly of that to right done with couple part and there's instructions it's to sure pipetting, of try overnight manufacturing, other The the the that to on make in and is into with of experience other a user scaling going as every there's days about sequencer, the right part each it I simplify make transferring run consistency it's the of now optimizing the similar the some there's what's the to it just that that thinking where and it are is incubations, really and now, things of GX. the clear, trying of workflow user requirements lot like all can to so the robust possible. the and protocol up, we have but a mean results. And and it outside related it, all to informatics. that, work's The activities

to plan say and we I'd year we're ago, wide through once think eyes we've stay do open. And this So schedule. I all been a on

So your hopefully, answers question. that

with Goldman The Sachs. next comes from question Matt Sykes

first, from just reagent Maybe rental the in quarter. placements last the down step

X of shift more and function GXX environment? the about one I quarter. less resources demand that in so think about we as a this you It sort of quarter. did last the Should was think to

Yes.

and prepare of push on trying customers We're and actively ASP at sequencer to Our than strategy instruments conversion. the to expand is higher only. maintain for a not the focused existing for now maintaining sequencing We're systems selling and GXX itself. developing network new them right really the a frankly, platform,

we sequencers saying right And it now. any not is really priority maintain So out, put but our strategy, we existing. is of part the that's aren't won't

spatial is year. buy queue maintaining getting customers next priority in combined expensive Our to system and more the the

that like have do pretty now that's those conversion installed that of Or doing base? rate good get some spatial the of weren't Got it. there you be to in installed then a well? the have out could a as with you of customers, do And Like interest them are feel majority GXs existing you going spatial?

Yes.

of to about than line So a of sight have to in be converting we there's have we them said X/X and the very initially convert But interest, just directly initial product fewer will customers good probably early X/X being number of launched. assume conservative.

think short -- spatial answer customers existing We a majority into the answer the customer. the convert the yes. is will So of

it. that? and program, costs maybe of could Sequencing Dalen, The Technology on And you about you're Spatial talk it just like just runway assuming Got sort incurring -- everything within, Access one is the And I'm more. that. forecast Services, cash of of sort that it's the

Matt, lab this that's the of we're directional incurring runway. into are right. The cash Dalen. the spatial that services baked to around related cost is Yes, kind commentary

talked but the give in that about to baked got in lab double-duty work number small that as services, of then projects of But that internal earmarked internal previously we've a well. also all GXX kind that internal terms systems into an we've services specifically cost several cash come personnel of and you Just do on is sense, we what work we've burn. of have a lab for

Okay.

the queue. call any further no management to have back for turn questions I'd to We in like remarks. closing

everyone, forward Thank I you. listening. you look Thank calls. future remarks from you, No for further to on updating closing here.

time. this at you disconnect you Thank concludes participation. you. This lines your Thank today's and conference, may your for