Earnings call transcript Q3 2022

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Operator

Hello. My name is Lisa and I will be your conference operator today. At this time, I would like to welcome everyone to the Rapid Micro Biosystems Third Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Mr. Mike Beaulieu. sir. ahead, go Please

Mike Beaulieu

thank XXXX joining earnings and Biosystems Rapid third quarter call. you morning the for Micro Good

Joining me Earlier Investors rapidmicrobio.com on quarter is Executive Events a Officer; available the & release in financial call are Sean press company’s of section. Chief the Rob results. Wirtjes, on A News Financial the our the under Officer. announcing today, copy issued and we third Spignesi, release Chief at website

events, but Growth alternatives, the macroeconomic for runway and for review business year-end growth, and during Micro’s you we savings organizational federal Reform Litigation statements interest may strategic expectations of cash System, COVID-XX on this I’d made this made to Safe relate many Alarm actions, Before or the financial Securities adoption our and – within securities Rapid uncertainty results potential of for call not provisions Private the expectations Harbor relating expectations potential Board of are to that business. are restructuring call future remind the expectations or new statements, forward-looking considered limited meaning resulting that from statements future of our cost system begin, and the which balance, contained performance forward-looking development XXXX. condition, to, including, pursuant be projected for of placements, Mold to the of anticipated cash Directors’ customer statements like revenue RMBNucleus of and Any new the Direct and impact Micro’s statements to in of Act Rapid predictions laws,

due a implied of differ in variety may materially expressed results from the forward-looking or statements to Actual factors. those

Annual please of as on uncertainties and on XX, and Rapid Report Exchange Securities section to list our Commission with urge only Form refer are of a performance. consider associated with the should you and subsequent Micro’s statements SEC. filed be and the XX-K are not Risk the Factors these risk with these of to the aware business, description estimates March For risks our you and guarantee factors updated considered in that future We a filings such factors be should XXXX,

required Also, with comparing XXXX. and revise Biomedical live otherwise. or Advanced statements, or information projections call discussions, to our total completed we’ll new quarterly revenue in Authority, quarter time-sensitive events was BARDA, and in is contract intention November fourth conference Research of Rapid Development of today, the XX, the XXXX obligation, the contains except as from by Throughout non-commercial broadcast as XXXX. impact any to because only the or law, This information, XXXX. or be U.S. by BARDA update company’s of commercial revenue future the Micro whether disclaims performance forward-looking or revenue excluding financial accurate any

I’ll call turn And Rob. the over to with that,

Rob Spignesi

Mike. joining today. you, And morning, Thank Good us everyone. thank you for

Board not I I determine to to The call. is that like its further review we alternatives a progressing company’s Before Board the comments Directors announced strategic have the of initiated today’s would on as shareholder on maximize August and begin, XXXX, we to review, any path or XX, best of through updates remind will value. everyone

particular assurance in process be any result As no a transaction outcome. will that can strategic strategic reminder, the there a other alternative or

a making few from customer engagement. with we review highlights quarter, will to of a the begin respect with third are the discussion my by I progress followed

details Sean will and Next, execution. provide And actions I of taken improve fourth will are quarter being discuss we performance to and third our finally, making quarter the commercial outlook. enhancements

assuming team. been improving placements. commercial experience customer our and sales the of My leadership responsibility focus As remains has priority and effectiveness Growth efficiency engagement accelerating our System an organization, enhancing top on since Direct and

in ahead million. in most Systems in August. which We are was We of customer were expected we third our therapy with cadence Direct $X.X we therapies. the pleased revenue other the with one areas and QX placed focused our commercial a when guidance the was Total two U.S.-based X customer quarter, performance updated field European biopharma placed Growth quarter the on a to during systems system mRNA in gene went in

new As and $XX Europe pipeline commercial traveled building of In-person meet with clear a in improve and year with quarter, are it commercial about and our for and customers. prospective are our existing customer is my result million. to existing access revenue at continues of to we to was sites teams full excited our I customers to XXXX. personally XXXX I’m performance, both Across QX reaffirming visits, Asia proposition resonating, and connecting our that the sales value guidance least the

We number have time of in-person conferences first the years. also industry in for a X over in participated

participate Joint of future. was Microbiology is a facility. Regulatory of thinks number and We about at events shaping XXst around year, the hosting increasing a in Lab In XX in on are presentation the Washington, to PDA/FDA over track sessions Lowell of at and of and Direct September, Growth and tours to Munich in the this the topic I Century. on in invited been customer Micro our and conferences attend hands-on an facility the the Rapid we on Conference how have lab U.S. I our globe gave D.C. calendar Europe

the micro The a a covering Growth insights the encouraged can technologies deliver market the with and and industry regulatory X.X colleague, new strongly landscape Century. great took the into micro included such how as into automation, in lab adopting of lab part and participants Growth required QC to technologies that the discussion safety QC panel consider data provided speed the modernize Micro Direct also panel micro senior such and Rapid future who move Along XXst as regulator QC the Direct. and integrity, I patient a

a an and we It exchange the the Additionally, as from the benefits and Micro cost, such session. interacted attendance Growth Direct and technology efficiency, patient regulators, PDA companies the for pharma Also, year, pharmaceutical among the the events this of microbiology Sponsor of and was representatives we inspiring the global during is important to discussed Pharmaceutical largest panel that bring conferences of October, as Platinum Historically, industry, of were one Microbiology early one the is Q&A and Micro. Rapid Conference. most of annual benefits in XXXX were safety manufacturing. with the Rapid in

received System was full by we display talks several attended is PDA, professionals, thought authorities. conference and hosted and Growth regulatory control automated tech we significant. poster the customer and This leadership at presentations. The on global an academia and industry featured Direct quality operational RMB’s year was in attention

executive at dinner engagement was event that several between by teams and dozen customers. a key commercial executives customers. This Importantly, hosted Micro attended users leadership special prospective decision-makers existing Rapid and and and our enabled deep

manufacturing. better we to in-person visited our present Conference customers, and cases and onset the a have environment we Growth us discussing in Being gain facilities workflows regulatory our Growth provide our demonstrate on-site can in fully also been and to to of of when meetings of the meet the pharmaceutical operations. and at facilities, sales COVID, are In have integrity the manufacturing we state-of-the-art, demands of hands-on educate, showcase the in-person Growth where capabilities, in-person future As how and highly consumables better of Direct automated capabilities Direct Direct QC their challenges a process. with data process demonstrations our System. customers the since been The is show and we able understanding allows demonstrations manufacturing our the PDA competitive, speed, of the micro case have

As we improving access quarter, element sales. discussed one is driving last system customer of

brand enhance is of prospecting and The build our global of a generation life and of increasing we capabilities lead and marketing, for awareness priority top Our sales marketing team. expanded building and are capabilities by leads generation the effectiveness significantly is In sciences who on is director team our multinational global other the we by to continued number in consistency capabilities quality infield August, hiring our to experienced marketing lead increased of combination generating. companies. sales

portion also accounts. implementing our A Growth meaningful global tasked manufacturing from in global funnel expand team our We to commercial have key targeted across our customers includes strategies opportunities looking Direct new in existing leadership multi-system of networks. at rollouts

exciting of and customers. large also new, We developing midsized number are a with opportunities

papers thought our sales leader the forward, Looking publish increasing of white market. an science-based as that number the and leads webinars technical of will Micro efforts to and produce generate expect in expand are we new awareness solutions. innovative Rapid position to These to continue expected and

development provide update an to I product our on would Now, efforts. gears shift and like

and are We customer PDA Conference recent detection mold there of announce high innovative our product excitement. a during to level where the interest was extremely pleased

Alarm alerts generates a differentiate It of early pharmaceutical Mold manufacturing capability available be the Mold in automated Direct X contamination. for from We software and molds in accurately intervention, other detected as and Growth are update. this and incorporates soon data process. a product, further reduced as and This mitigation designed mold risk will officially RMBNucleus System detect Alarm, little enhanced day. branding as as on the allows is and integrity to rapidly through new it organisms environmental is

Turning to partner rapid customer our sterility, our is beta ongoing. process with

significantly value the of take on Direct our customers sterility test the to results. before the confirming time accelerate and enabled can the We speed often Sterility We detection core a testing product is final XX valuable complete are addressing accuracy and will and more release product to about days and and results. gaining using or feedback traditional that method. Growth excited final rapid to and offering are

updates through We move process. as to continue will the we provide beta

customer differentiation we commercial introduction Growth that to have the We execution with high customers. with pleased continue future our provide actions importantly, and more improve the sales our in we And take expanding product cost taken we Growth we’ll improve platform. remains wrap appropriate Mold and provides to commercial Alarm Direct of to confident To in system up, progress quarters. and that our are right have Interest strengthen and in making the strategy and to engagement, value Direct we continue can even we to flexibility we are advance invest actions right-size to remain advance the structure as place, bring us our in development. execution

outlook. prepared the more detail third concludes and to some in around quarter to our quarter fourth our I remarks. turn my That performance will discuss call Sean now comments Sean? provide over

Sean Wirtjes

the quarter difference $X.X which placements third which This million, and morning, QX year. to We of systems ahead the our XXXX compared quarter, was in of reported Direct QX guidance is offset was to in expectation million commercial revenue we commercial Systems order those Rob. growth which XXXX. that to to would fewer was Product Thanks, two-system Growth everyone. comprised continued placed consumables, $X.X due $X.X third The that of be timing X placed was systems in QX compares last Growth in consumables. due QX. Good of partially $X.X placed customer of by Direct reported in million Systems, the revenue million late our of morning, revenue, versus the to in

increased year Revenue XX% quarter XX% third compared from consumables in the and sequentially. to over the prior approximately

logistics the compared As of in in third-party of We final consumables XXXX. systems into third flat approximately we in the delays quarter completed X the quarter. the which pushed third was $XXX,XXX third in Service million discussed validation days $X.X revenue relatively last to revenue the of quarter, QX QX, was quarter.

our customer in due line on with we revenue service due to progress our was validations to the timing. validations slower-than-expected below completed ongoing were expectations, some While expectations

lower quarter third in result third quarter compared Recurring of million year and as by a XXXX, to service was last compared million driven of Nonrecurring fewer to $X.X once revenue revenue validation increased the system contracts. to the XX% and QX in consumables $X.X again activity. million placements both $X.X

mainly system Product margins. negative decline a third margins volumes, million negative quarter gross in revenue reduced of sequential due compared QX. the the quarter were last System lower $X.X QX in margins production and to Turning in versus the to latter year. negative drove million $X.X which were to

the materials consumable improved initiatives, that sequential we’re on used write-off purposes. previously to manual due and of they to old purchased unfavorable due our efficiency on a process While margins on continuity manufacturing making declined our progress expired manufacturing basis basis a for the business continued we year-over-year in mix

The combined year. year. versus as margins last Service and to third quarter associated personnel, with $XX,XXX margin was validation service as lower $XXX,XXX in revenue negative was materials XX% in a spending compared due On our XX% negative activity. travel, on field last were QX percentage basis, gross to negative well higher negative decline QX

While we during a see labor some certain freight costs, continue headwinds to in did it not and material, quarter. meaningful the inflationary impact have

to in consisting quarter, of operating million The compares G&A. million associated quarter in $X.X June the severance as offer related in as other by received and million late of were operating mainly action in was August, strategic $X.X Total the unsolicited due in in marketing, expenses in restructuring costs in the in $XX.X million and and announced expenses million down This P&L. to $XX.X the Moving third process million expenses with $X.X third we to well review the R&D, total million XXXX. in $X.X increase August. $X.X the of sales and the announced company

warrants a in repayment our year our in million term to higher stock expenses last Net loss period QX. an primarily last year loss with offset the prior of our period. period, related The the million in higher loss in charge their value due interest was to partially third stock charge current conversion connection income prior in impact net preferred to net million $X.X net year. $XX.X to the adjust in A compares million outstanding quarter warrants into year the This the in common a year and by and $XX.X higher current fair of debt to the QX IPO the Class $X.X was of of operating

$X.X Net XXXX million. the XXXX. was in share With quarter in third attributable depreciation CapEx, loss to was year QX $X.XX amortization $X.X was million prior respect expenditures of common to $X.X and quarter. and shareholders expense the loss comp in net capital compared a and to per $X.XX Stock expenses non-cash of million were as

September had we As investments. in $XXX.X million equivalents cash, and cash XX, of

XXXX. cash We a expect remain investments and balance into and to provides $XXX million this balance the year of cash a with finish at approximately confident runway least

be outlook, fourth my will on quarter to focused full the Turning our year and comments XXXX.

customer our with systems the August. second $XX.X guidance reflect call. similar half XXXX We and million. on X discussed in revenue some macroeconomic provided in high reaffirming which will commercial of end decisions, last longer-than-expected to including for purchase is orders, This outlook were uncertainty a the of guidance the fourth place of least continues year at that This we our guidance the line times company multi-system in are full level at assumes lead which least earnings quarter, variability in

Moving to validations.

guidance. complete expect We quarter, our in also the which three to with validations fourth prior is in line

second quarter returning in sequentially deliveries current growth fourth from in our quarter is of We of the expect of due over impact service, $XXX,XXX shifted revenue based step the consumables This by recent the into single-digit XXXX. placements from QX to down forecast for on QX. revenue revenue, sequential as expect validations that the reduced in in the cadence before to the first consumables customer contract higher service well to In largely as we system lower from with offset revenue sequential revenue quarters. quarter growth

partially margin be GAAP quarter. activities onetime of lower expected versus by charges, offset expenses we expect with placements. cost the quarter relatively in lower on quarter gross from operating by impact continued benefits Fourth are Based reduction system outlook, this revenue to fourth consistent QX, third sequential and our improvement driven the

performance To is summarize, that the execution QX fourth look value. our concludes and will more That you are company commercial drive our forward my comments actions we and full into quarter heading future on XXXX outlook. we system growth QX to providing and details taking the outlook sales well-positioned believe our XXXX and on earnings our year call. to XXXX, We shareholder on enhance our improve

open will up questions. for call the Operator? we Now,

Operator

Tejas Savant the from [Operator question Morgan comes Instructions] Stanley. line with Your first of

Unidentified Analyst

on questions. Neil Tejas. my for Thanks is This Hi. taking for

access. speak maybe seeing to in or seeing any trends geography? as you’re So start And as site America? Europe momentum to you North trends you divergent Asia the could versus far I Are and wanted with

Rob Spignesi

Yes.

maybe below in The Rob. good And been with is good China, this across access, America on access generally specifically, good But it’s more tick Europe, in a caveat, North Korea about So South with good Asia, sites I’ll we teams little trends was a A access. say with but of have then bit our I access. U.S., still the are encouraging personally Asia, improving. would in Asia, I’ve sites. region-independent. broadly in In a little talk very I but challenging.

Unidentified Analyst

hesitancy speak helpful. spend And far their customer budgetary some large-cap freeze as the pharma you of your remainder of Okay. customers to indicated then one or really that you among through to have begun That’s or your recently, of Have constraints? year. similar peers CapEx anything the challenges can any of seen any as customers

Rob Spignesi

seeing seen haven’t freeze nor flush. We year-end we a budget I say, se, per would are a

of the in would haven’t freeze, but I Clearly, what seen about movement direction. told no it either is say specifically se. we per macroeconomic is remarkable a is, So been there or kind a budget environment

Unidentified Analyst

And thinking that announcement for Got that detection how of in mold then base? guidance? on now With about upside expected line adoption And any current the Would the offering. contributions on present then levels by among do installed the to congrats it. last year-end, one current quarter? fourth me, top anticipate what you you are initial your

Sean Wirtjes

This is here. Sean

detection, recurring used willing in So where the offering, we they customers to think can it, it our really annual mold much up use getting as is to focus a and to subscription. market in near-term are saturating with to sign point I get ultimately as on get the a for that

quarter don’t contribution a So within I at end the in expect based as – current We on at in QX, probably close to launch we think any meaningful the pretty a month, timing. look QX. it revenue did of

then a into move And contribution that model much I but would that do we with XXXX see and more recurring to in be on with as it product, expect of annual we into and get more onto I customers beyond from focused contribution ‘XX, – would some expect product. getting think will it. I much we happy again, that think

Rob Spignesi

we product. on is do chat value or But around a significantly on present It’s the to This we whether fairly differentiated To we specific is accelerated don’t is penetration provide not and the any mold a about a customers, operations have our Rob. steer jump quite prop. in their strong basis that – is yes, rates to very today. strong comments, Sean’s will sentiment

about So excited it. we’re

you Our as will to and on customers we calls. are update future continue well, all

Unidentified Analyst

strong it. on quarter. the Congrats Appreciate Great.

Rob Spignesi

Thank you.

Operator

Next with question line of Stifel. the comes Arias Dan from

Dan Arias

how write-down on progression, of then Sean, for you to Good remind you other questions. And that was. was you mentioned? that much I said margin the can sequential morning, you what guys. due Thanks missed there step-down of the that the factor the the me highlighted?

Sean Wirtjes

Yes. I’ll Dan, walk that. through couple walk to so – there of I’ll factors, happy is a different be

So volumes. mentioned systems, lower on production I

Given placements we where some of the to systems point we’ve been hit where system into inventory, in needed goods came versus we where finished on expectations, year a with particular. we decided right-size we this our year some

ramp costs. temporarily that did down we on has the of in our ability absorb to our production So and an some quarter, impact overhead

So we we in cost would the that of More had expected quarter those the into costs that than go actual expense into earlier inventory would – to products. went of have expected.

So number that’s factor one.

automated On I to that we obviously that we know, had, you that increase think live we’d XXXX, direction on volumes move in consumables, time. see expect consumable we other and go the forward and volume, pick will went up line. our we again, the as write-off with as production

if we is maintain to continuity we on and use one a from to particular go the back automated ensure a in what material business we we right some have just – than process. to this manual had that process, the different needed that material, had a We standpoint,

was in to and – were we particularly as COVID. material that important So that us

an point that It’s It associated hand. obsolete. now actually a becoming it’s with has expiry So it. we where had on reached

lighter of We quarter. thing. And due And in that mainly And is That was hundred customers. service, on obviously thousand base won’t timing kind expected, of a more that cost that’s couple mixed. expect to reserved dollars we that margins. a than So we recur. a we just with within consumables to validation activity, came the thing in little then one-time

and on negative on there bit pressure that light So a revenue, little being little creates space. of in is a drop bit through bit little margins the a more

factors. So those are the main three

Dan Arias

Yes.

versus the incremental Okay. sort customers? when where bit a the on you look maybe, there. environment That’s talk you appetite hearing out you skewed towards thawing and helpful out a in of breakdown existing And access Rob, What to just Can of might COVID. at for placements you’re think be instrumentation there there? And new then new XXXX?

Rob Spignesi

Yes. Thanks, Dan.

encouraging has field generally between pipeline got at been both I both. our a bit with them. The new a existing think balance quite a meeting and – good environment and customers. forward I’ve it’s for the

about So I’m as multisystem opportunities as I existing also mentioned, pipeline in for our we But encouraged and do excited customers. our pipeline have quite customers well. in new

we, manage of land expand So balance. customers process course, but midsized well land moving. it’s current as a keeping new, customers, to to good balance, and land to continue with and large that We and then our the up expand want and and stack

Sean Wirtjes

to midsized that XXs it’s Yes. businesses. and mix top And point, good of a more

encouraging is think I Rob what the described. just diversity So within

Rob Spignesi

focused our but Yes, call as in cell pulling diversity base pipeline. think, the to well a remains advanced it, just and would you largely, as of kind CDMOs, which include been kind in I pipeline and is is Europe. geographically current up. – gene And as our view segment our complete not as Asia and the strong of completely, we’ve I to of we know, America high-level forward the of sizable North therapy biologics modalities well are further of historically And as team

Dan Arias

Yes.

Okay.

curious or if could minds areas you efficiency just Thanks. or momentum of it in obviously, might just flag sort more longer-term. just back pared and comes you’ve restructuring or of in the as quarter in with a back mid a step going task that’s to to here leave mean, to to when two on bodies next the taking just there are that function? sneak numbers one devoted the a But that you in are and I better I I’m plan. position, If Okay.

Sean Wirtjes

to Yes. Dan. answer Yes, that, happy

– that the I quarter, protect we’re to one, we happening last think where in areas business. the think focused think of as made trying talked I I on we and the we what’s not commercial, investments importance about number we’re So commercial given

So Part may terms of taking we was as out mentioned things. targeted of I that call, where I in but I now. resources some we that have brought if specific were basis in we on well. contract didn’t, pretty will had last a

out. we So kind as more some some full-time hiring resources manifest hires had riff. of in those the disruption all fair. was the of the easily a we of out some adjust in staffing, that were But And and we resources wasn’t contractors I there kinds some mixed were those knowing of take were kinds year. less a to itself, there taking way It of to between as risks that to and resources be part organization of those that structured started to able think

things the I did and the have that’s as you taking So in step certain we terms of our And providing or back actually to focus I also may few that riff more in some through thoughts. it helping mentioned horsepower structure material some to you actually I’d relative a of things since get of think the that things more say, did we are those in seeing terms we’re well. not organizations that we Rob, done. or organization ability promotions organizations announced some think that anything, did

Rob Spignesi

in a It’s leadership we’re as performers able our certainly, the it. were and Sean. commercial some part It’s strong to impact. And with agree and broadly benefit. would starting top promote to been days. well. We functions other Early of of see I Yes, that

Sean Wirtjes

That’s the outlook, yes.

Dan Arias

Thanks. Yes, I it. got

Operator

Rachel from JPMorgan. of line Vatnsdal Next question with comes the

Rachel Vatnsdal

the for Hey, taking thanks question.

here, off validation. just some So on first the

those validations for next why roughly of guidance the three sounds that through as four validations being you prior But That’s it year. And service in this can a So you would were you but really the of walk pointing you’re to and validations, than step then your the in follow-up, had with half back expectations just line us quarter. validations to quarter. take line in lighter quarter for revenue sequentially? called like due out the down seven

through takes as So walk there us well? can puts you and the

Sean Wirtjes

Yes.

a it’s tends this the This we’ve It where indicator on think the to the So system. not – to of activity, finished a validation, I first metric. actually KPI drive amount necessarily work is the on which Rachel, directly is correlated doesn’t question, revenue. an

a situation we kind the were where were systems of doing have expected major it wasn’t what team be broadly is expected than that we bit bit in activity able work our level get slower four on line, and downside we of downside, a little to finish it over to they QX. the but the the It the it drove a more within was was to So quarter. be, but than little which lighter validation we

I QX, caught could in question Your sure that not whole question. could you – sorry, you repeat I’m that?

Rachel Vatnsdal

coming you related to basis, some to on due of it sounds second out just half in But lighter service validations. the are validations. That revenue like quarter a revenue then called It being service around Yes. this are line. looks like the those validations

you the So just us dynamics walk can there? through

Sean Wirtjes

one a expectations, thing to we a other managing placements we the validation that bit that that there, team effectively placements early of note our lower new important the of than dynamics. mentioned the being script below mean, to amount do I year, we really set and I it’s think with it It’s of in my I – Yes. was the same the create lower in the little closely validation do is very and to with now work of expected. pipeline because kind are work pipeline placements for kind of

the we QX lower than than we a that to do expected, being expected that’s factors is little new of the just activity So year. driving one earlier less in

Rachel Vatnsdal

year? us next should Great. what’s framework visibility and And think give how then margin Thanks. then some instrument on your pull-through have So any target this high-level for about you cadence XXXX? And can you for example, positive? that do on just we turn when can

Sean Wirtjes

Yes, yes.

So and to as to XXXX. continue I gradually expect through move we we’d increase consumables pull-through, think into that

terms of in somewhere to what look think over talked the like time. I range about we’d annual we expect that in XX%

point So not in how have time. getting generally toward over in XXXX. we’re margins that about that talk we’re until this about of we That’s the internal latter just specifically XXXX, kind you numbers that’s specific margins, but terms working we XXXX. this think given that not a have that goal to about an the about think of that all I target a positive year where and talked At we Yes, as it’s get in as aiming we for and we to more goal I point, are we still the think as ‘XX, to doing guidance at part for. point, where of of

Rachel Vatnsdal

last then And for Great. me. one

strategic on that to timing expectations give you can Just expect the on finish? review, Thanks. the you when latest us

Sean Wirtjes

Yes.

said don’t Rob have point. his comments, this any at As updates in we

We’re out not any timing to there. going put

update topic. that We will everyone soon we as to on be sure news as have

Rachel Vatnsdal

Thank Got it. you.

Operator

question from the comes Masucci of line Next Cowen. with Max

Stephanie Yan

Max. Hi, for taking this on for is my Thanks Stephanie questions.

Just me. a from quick one

and So super can to generate around awareness. training, on encouraging lease? there and the around the that sales productivity you to improve to that hear especially it’s put you’ve had process provide specific Are sales ability building sales the any force force the in efforts metrics impact

Rob Spignesi

Yes.

do something track not that attract It’s publicly. and increased course, generation track do of generation. of the KPIs released we, lead from So we level, But a those high we rate – internally. lead

of in-person connectivity. quite are We’ve we – talked the about also bit a We that. look at criticality

funnel we different and team at composition we couple of sales ways look that look at also do force and velocity. that is well as specifically, that a productivity something So as and

to that So won’t are that sure and expect. execution but areas the our those actual numbers, some quality rate of at progressing we at get we that the is I into make look the

Stephanie Yan

it. me. chain supply – on impact one last helpful. are then Any Are what That’s operations seeing to seeing And you any one your that? just Got from plan? you on

Sean Wirtjes

Yes. I do supply a little if anything, better. think chain, is

terms about But were I it we of were inventory you at very hasn’t maintaining think levels think standpoint, high an us. safety really historically, we’ve from We in stock. said very it impacted least, of if conservative. conservative

gone places looks on ask seeing from a this think are chain. And as think, with better from typically year, different said, business. I we’ve been specifically that. that didn’t as question Inflation, but has especially. And that’s isolated comes the impacts you the in pretty So little other the within inflation supply time along that, I I environment we

say at I think having wouldn’t wouldn’t it’s widespread, material on and labor, bit I materials. that impact I some the business it’s little in a a say point. that this

Stephanie Yan

Got taking for it. Thanks my questions.

Sean Wirtjes

Sure.

Operator

this At turn questions. to remarks. the to would back there further call Rob Spignesi closing time, over are no for like I

Rob Spignesi

you appreciate with your to many our thank today. We in coming in look weeks. us company the joining Well, speaking interest you of for forward and

Operator

conference. today’s concludes This

now may disconnect. You

Rapid Micro Biosystems (RPID) 10 Nov 222022 Q3 Earnings call transcript