NSTG - Earnings call transcript Q4 2019 | NanoString Technologies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen thank you for standing by and welcome to NanoString’s Q4 and Fiscal Year 2019 Operating Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]

to President conference Farrell. of like speaker to now Vice today Investor would hand over the your I Relations, Doug

may begin. You

Doug Farrell

Thank good and you, afternoon operator, everyone.

and is on today Earlier and released for Gray call fiscal me results we Tom today financial fourth Joining our our the afternoon, President the CEO; our CFO. year and Bailey Brad quarter XXXX.

website. seen there is on our If already one release you that have press not available

financial projections, During factors, we including forward-looking make launches. in business statements future various anticipated prospects and penetrating related are and this our our that existing growth, product and objectives, addressable success status call, will the and expanding and and collaborations, recent future of markets, planned nature, trends focus, development strategic for and

risks many beyond uncertainties, are Forward-looking time of risk uncertainties to statements control, our time described subject filings. are to SEC and from the including our which in and

projections statements. materially results no forward-looking any these may obligation differ update and Our we publically undertake from to

Tom, and Later release in to compare made results. earnings in our it the call will we modifications to make guidance. our we'll be with believe and the connection easier our approach We've that guidance guidance interpret XXXX discussing financial today

to financial financial for GAAP order analysts investors release the detail selected changes, tab in and In page. investor indicated. measures help be and GAAP XXXX our relations We throughout financial will quarter a each reconciliation otherwise supplement our fiscal under posted of unless a model these year the are described have we've prepared the to non-GAAP measures, press which adjusted measurements, calculations in call. All

as our and for and as GAAP press using find well these reconciliations You non limitations GAAP in of rationale measures well. release measures description, can the as

look be to to in like Boston We many the for next that Cowen seeing of Healthcare conference. there. we'll week you forward everybody I'd remind

Brad. over turn let call to that With me the

Brad Gray

AGBT wrapping of the Doug. greetings where final we Good just Florida, the from conference fantastic for few and Island, days and are up NanoString. Thanks, afternoon a day Marco

genomics market our Spatial focus been Our week generate in has Profiler this to Digital and the emerging or DSP. customer spatial interest to promote GeoMx

NanoString and was being of Collins, across Spatial such XX continuum. XX% four Francis other field, speakers GeoMx in genomics session as well nearly the talk plenary research represented our customers, the the with tools increase GeoMx of hailed studies studies. on AGBT but numerous integrating a most last revolution over with The coming year not research commented the the platform genomics by first presented been these has just the spatial the NIH at importance including into spatial leaders director, who AGBT

Institute, the as Summit, Garvan from off which Illumina Xnd and Sunday Stanford leading the kicked data Institute, centers presentations such the our participants researchers senior Broad well Sanger Genomics afternoon Bio-Techne. Spatial Institute, We Annual as panel by with from the GeoMx featured on as University by meeting and scientists

to summit arrived Our more are opportunity or than Sequencing held extra Next early early time to possibilities adopters attendees, These in we the the imagine many unlocked NGS. learn of the than summit Florida and more year. last that of over XXX XX% an increase drew attendees inaugural spent a crowd the home away with Generation that is from DSP for from conjunction in GeoMx GeoMx used when and

Island's my engagement, presence premiere learn DSP and with remarks. our I more customer engaged launched week throughout AGBT to lovely could the commercial more more temptation duration later GeoMx. to be visiting remain up us outside details on our share GeoMx I'll not suite the and despite four-hour wander They the momentum and the followed delighted for summit the about by of many of full in beach Marco to in

for the our that, our year strategic overview the to the outline call milestones for results in XXXX an our XXXX. operating a research business, like and energy and and opportunities structure, Veracyte, and growth ahead. of strong to financial year streamlined transformative provide I'll with markets. over Tom quarter provide simplified to XXXX After for our fourth focused review our for performance was I'd our cost we our our turn key outlook Now, December in on NanoString. transaction the objectives Through

immunology we the full in revenue service for for approximately grew introduced over accelerating year. system our robust prior accounted XXXX, in an XXX of placements launch of about platform growth our nCounter sales. With of product year. decade, systems GeoMx the demand and into new DSP, the increase XX% and first we to to base about XX% which XX% installed neurology, from a remains our expansion and nCounter benefited our

sales about of of generated an consumable over XXXX. million life science XX% last increase year, $XX.X We record

We launches business strong including continue introduction both within beyond transplant the CAR-T with panels as to and such throughout expand cancer core new organ four characterization and of human panels. the year, our our

in launch achieved which totaled tremendous made orders and vastly outpaced orders during progress not reach systems. until with exceeded GeoMx is GeoMx than systems XXth pace cumulative what we cumulative expectations our more total XX did orders bringing its in over XX XX the quarter. This XXXX, GeoMx. DSP importantly, commercializing nCounter, to More we

than intend and growth. more was double and accelerated consecutive We eighth growth are our of service year-over-year, on product momentum year top QX to GeoMx commercialization trained. systems digit making XX in XX with our to full and the our first build installations XXXX ended our XX% sites this installed quarter and XX of marking shipped, We priority. quarter GeoMx revenue

XX equating will about and others targeting both year. achieved This XX% for by XXXX. on strategic expect experiments spatial XXXX, nCounter objectives growth using use XXXX readout. Overall, will as Company to increase customers read four will this out NGS we who will For GeoMx be to order orders volume the who focus the about new GeoMx by over

the been by has cure research reflected for and is nCounter a translational Translational market through centers. for the NanoString develop the medical systems companies that's for for large described accelerate to Our biopharma the decade, research to therapies. disease objective human core within academic DSB our base efforts of of and installed search adoption Translational of first development GeoMx biomarkers and research. scientific

Within for human driving RNA samples translational GeoMx every of have sold substantial has this within the search enormous market. FFPE and is more translational spatial to-date and for into trove analysis biomarkers and of biobanks. among and during research momentum clinical expression, protein leadership Almost the collected research, tissue in need we the held studies system gone

orders XXX to is ahead test One for our quarter, GeoMx of number We TAP program, see new positive addition TAP the projects booked in than throughout indicators records fourth In purchase. drives to GeoMx market. projects indicator which in growth we in mechanism steady customers completed instrument customers. fourth XXXX saw this sequential we've the unique of XXX a and more more than in a projects Today, for leading about TAP quarter. provides XX

which the are indicator is important the publications, there a rate achieved pace nCounter been peer-reviewed is To-date, gaining also have publications launch. GeoMx about peer-reviewed that Second XX momentum. during double included that data,

February the and two the Importantly, of publications studies these followed featured GeoMx been Clinical within the Cancer in Cancer recently, September six Research. a cover In Research the high-profile Journal with had on are their publications, issue more by starting in AACR of past taking GeoMx months, on fields.

with In nature sales results. impact of expectation potential steady along the publications demonstrating XXXX. for These the GeoMx in the GeoMx-enabled leading high orders high, expansion XX% published form DSP for and January, issue two indicators of were strong our a funnel within the same simultaneously in our increase

an customers paste we'll continue to to in have that installations As exceptional ensure experience. XXXX, user

installed For trained will instance, to in up. were more so or had not reviews shipped Tom we'll by that were guidance. shipments year when end, we provide he need details temperature XX of the have QX, been get our about but pace in order caught systems QX into

generation the Our second the of is objective sequencing discovery launch with market adoption GeoMx readout. to into midyear strategic next expand

group, often biological Discovery researchers a to structures, pathways, research on understand distinct represent and basic mechanisms. focused customer

For customers, is better. information these more usually

putting market installed increase XX-fold. by is compelling. for sequencers of massive systems NGS approximately Illumina will of readout increase upstream GeoMx the So, content RNA GeoMx addressable our in By using base the

laying our allowing the The Cancer our uses NGS RNAs. GeoMx for first that access simultaneous is discoveries several over We've November, past than the analysis of we launch launched research the the groundwork technology months. In readout, the Transcriptome Atlas assay Cancer program. through Atlas XXXX been for into the Transcriptome more

external AGBT roadmap available user to discovery first brought two and that online year. our valuable in early NGS provide GeoMx We applications market commercial of as to NGS access be QX over readout. software expect We coming the finalize we our input also use interface for unveil slides will them to NGS-based the and

any from provide a sample. studies during AGBT targets GeoMx the the as on of GeoMx advantage took versatile provides region as well structures. on liason demonstrating demonstrating software for any presented that of unique the full automated flexibility advantage result readout, the cell XX selection, interest Researchers of the focusing to All biological or NGS geometry GeoMx platform, in of of types any that tools scalability took insights

and to presented This which around priced is appeal GeoMx the sample midyear. to both commercially of Cancer at at use included will per expected studies become AGBT Most and researchers. our Atlas, of translational $X,XXX discovery Transcriptome be assay available will

first unveiled XX,XXX which from Atlas, coding Transcriptome our the We data also protein genes. whole profiled

by trial we develop use of end the both Atlas available assays in XXXX, our by be full which program to mouse, expect plan whole a a for We commercial and access Transcriptome XXXX. for technology launch under followed human to

continuum whole We of across growth the accelerate next and offerings in discovery transcriptome and uptake XXXX to the beyond. leg drive expect these to

to response audience positive. extremely The roadmap our was

span for whole content that the As unique discovery ability is a from clear to advantage to powerful and customers it focus made panels GeoMx. transcriptome

robust pull-through for installed of nCounter sites objective has consumer their last in new existing at This years. system average in revenue annually as over the annualized maintain base is fuel third demand healthy come linear and remains momentum our consumable maintain growth new our in placements growth nCounter the Our online. the business. several XXX an sites to about year

business of In and the of those to the XXXX, nCounter XXXX nCounter very diagnostic to the and business. the dynamics in Prosigna be XXXX distraction without and similar we expect expense the except

to expect be transaction. the again the approximately for of XXX once consumable Veracyte place pull-through XXXX to and systems We impact to adjusting when nCounter for similar

last year. least consumable launch a opened storage of at state-of-the-art panels new were and will facility which To this continued we meet double introduced nCounter and that Bothell, to four our late nCounter instrument the fourfold. recently to space in have grow manufacturing this footprint QC adoption manufacturing year our by Washington, growth, expand panels expect We and

research is that which emerging Seq include infectious focused commercial testing, to platform strategy. identify strategic described are disease and the for support applications key pursue specialized program can to partnerships fourth to applications as Our into peer-reviewed year, on that our Hyb objective our & application Key as to was limited most plan GeoMx. of well be Hyb Seq Updates we last in focus communications the applications. this publications and as & of energy will

to addition expand revenue on discipline, another on procedures, be operating that demonstrate the XXXX. I've for outlined, enabled nCounter goal associated our diagnostic for and This these four accelerating combination the of part the the step elimination year breakeven. path our with by our towards meaningful objectives of is business. a will will of In expense outlook as to growth, costs Tom

With Tom. turn it the over now to that, I'll

Tom Bailey

I'll for XXXX results conclude Brad. our quarter of fiscal review our start Thanks outlook with and with fourth a XXXX. and

under completed For our representing third Prosigna sold. revenue year-over-year the the product XX%. of and service we revenue previous transaction was XX.X of we about Veracyte December, million, the In growth quarter now over recognized units with same one of XXXX, XXXX which fourth

effect instrument a service service On pro revenue and and products growth of the basis record transaction, revenue this of revenue forma was of for million. XX.X XX%. included Product year-over-year

revenue fourth shipped from per GeoMx an $XXX,XXX. XX system average included quarter representing Our of the instrument X.X systems GeoMx million about quarter, revenue during

representing consumables and sciences million, our of in arrangement strong lower and to as year-over-year $X Life XX% the the growth transfer in with life prior reflects QX included QX of QX. GeoMx Sales compared approximately year, million. driven $XXX,XXX by Prosigna sales. XX.X were nCounter XX% revenue dollars revenue panel also science consumables approximately new was was start which shift Veracyte. pricing December consumable revenue

QX consumables total at and QX consumable sciences would've been pull-through by pricing arrangement $XX,XXX. life X,XXX $XX,XXX Prosign was approximately $XX,XXX pull-through have nCounter with December would Prosigna. Absent Veracyte pull-through XX,XXX transfer been the approximately approximately of QX approximately approximately the impact contributed by

consumable prior sales revenue primarily the and GeoMx Service million, for strong sciences prior driven life growth revenue Gross by TAP X mix. was representing year demand service. over and improvement sales by increased XX% margin was product an as on year, and our driven XX%, to compared our service instrument

research costs expenses, general the fourth and Veracyte Transaction and one-time in incurred recorded Turning the during development the costs administrative quarter. operating expense, resulted in were transaction expense. across gains other and

by have in increases compensation reported across increase stock GAAP the addition impacted periods. our In expenses part of comparisons driven in based in our stock price

quarter, For the excluding total stock-based of from QX the compensation was increase transaction-related up of year expenses prior with the million, expense was over the expense line million R&D expense XX and stock-based X% X.X in prior was impact approximately fourth prior compensation. X.X year million, an the R&D period. year. of

QX GeoMx driven expense period, and approximately increased transactional by XX% launch. SG&A excluding of of in increase impact the XX.X year was compensation. SG&A related million, an the stock XX%, expenses investment prior the over primarily based

growth of forma. is full year and the and XXXX, pro XXX.X service year-over-year For revenue representing XX% XX% reported was million product

our $X expenses XXXX her with updated result as of X related Veracyte the our with $X to million updated related to range. line above GeoMx guidance was guidance efforts. above in about expense $X guided to was XX% was commercial related Veracyte approximately million expense margin approximately transaction. SG&A and restructuring about million R&D a Gross million

in the guidance. We in with investments. in million capital exited the quarter short approximately cash, and term activities at Cash approximately $XX operating was million used with equivalents our cash expenditures line $XXX

earnings as easier we guidance, to to release in Veracyte and we've QX. were gains financial modifications our recorded transaction make XXXX results. our one-time and guidance costs The prepare to that Doug approach Transitioning to believe that interpret made led mentioned, will it and

we XXXX, across stock-based recent expenses with operating price recorded our required stock expense and impacted the the in the comparability to plans to implemented amount in compensation the changes coupled addition that of periods. of therefore In our rise be

described are we measures GAAP press result, adjusted a is for a in our our release. in of as supplement which calculation non-GAAP detail As prepared financial or selected to measures

items. three for These adjustments measures make main

nCounter for Veracyte future to is the and challenging second, rights that can completion diagnostic part of gains which third, owned non-cash material Lam one-time our for related compensation, our with First, now longer no to costs for stock-based be item will by collaboration and the collaboration, Veracyte; of revenue estimate. revenue as and and be business;

operating to and profitability adjusted is and Measures use before expenses depreciation Adjusted earnings to adjusted trends and include as or adjusted EBITDA a business taxes, amortization measure the we EBITDA. supplement changes, analysts GAAP internally interest order Relations and loss. year income quarter or investors the reconciliation we for operating Investor and a and posted In full of each net XXXX help to our model these on homepage. evaluate

outlook. XX% we impact account that XXXX expected expect backdrop, be will pro we Commencing $XXX revenue, revenue XXXX representing of With service of Veracyte transition annual XX% million and transaction XX%, to is of growth $XXX with annual to specifics products to taking million of to growth to XX%. our forma revenue the

$XX revenue nCounter expect from We million to that business. million our base of $XX to come

with to consistent instrument last XXXX. trajectory nCounter's line with the in approximately expect We be two revenue with years

pull-through terms consumable revenue the the $XX,XXX receive of would in $XX Prosigna we of imply nCounter which for inclusive the pricing new XXXX. transaction Prosigna of total total reflects approximately and system, for of We million consumables expect Veracyte per installed approximately

that with XXXX, will and report sciences together releases revenue Note earnings no in life as filings. in our item a or Prosigna separate we SEC revenue longer line consumables

half of nCounter seasonal pattern the first recorded the XX% second in in expect We similar and a of of roughly half. revenue see the XX% to year

we reported and $XX of half. of $XX With revenue to second see in $XX XX% XX% also of instrument derived GeoMx first a half in the consumables. approximately of and seasonal expect million million the We pattern from when sales the roughly revenue year $XX $X expect from million to million million approximately to GeoMx,

adjusted to gross transaction gross be the compared approximately Veracyte the XX% in impacts of considering XX%, to when expect XXXX which will range margin We on flat margins. to the Prosigna of

the actions Transitioning late XXXX, step positive rebase to support business of XXXX objectives. and year-over-year. to approximately our to expected of profitability in longer and operating that total range impact we've in and This we XXXX in expenses expenses realizes expenses operating adjusted in taken early profitability, reduction our post XX% full

and full refocus our XX% to and XX reductions research adjusted reduction investments with expense, Starting XX% XXXX we to R&D to million reflecting year made of impact in spatial compared we to R&D XX a the Veracyte-related in plans the million expect record adjusted development December genomics. to

year XXXX For expenses, X% of million adjusted full selling adjusted reflecting general the a administrative and to XX we XX compared as Veracyte record expense million, to reductions. related expect of to X% the to impact reduction SG&A

million Turning XX of revenue expenses. to compared a the growth to improved expected to benefit range reduced reflecting the XXXX represents adjusted EBITDA XX% XXXX. record adjusted That EBITDA, million of combined and loss to improvement XX we to in expect expected an XX%

cash flat effects XX of million total between operating conclusion which XXXX Lastly, used in in expenditures the improved as EBITDA for and our offsetting Lam capital and expected to of to million our as and stands XXXX, collaboration. XX the reflects adjusted activities approximately was compared

we to quarter, service the as uncertainty approximately forma For of of service million and to on million quarterly QX revenue growth products and our revenue products wider the impact XX% XX% results. reflects this pro expect XX first to than of range usual COVID-XX representing XX

As countries outside restrictions other do potential that travel impact reports recently and to there and set where additional our have Asia. guidance. elected may business yesterday this of were of At year we both time, full as in we

base which $X million for as or million $X revenue the first will potential impact approximately primarily million, any soon XX to reflects current due of an quarter business impact range to nCounter to in as million As me, of be reflected COVID-XX. disruption XX

which system we X we his Brad GeoMx QX. as catch grow wasn't tempered expectation system million expect mentioned an GeoMx as pace in remarks, currently up of of by more to in this X and training on reflects includes revenue, Also, also shifts shipments QX. installs year, which a for plus range approximately XX% XX Our orders QX orders instruments in to for in million

This seasonal with with number QX orders of experienced typical pattern expected we'd the is QX to nCounter. consistent

GeoMx system Our on negligible revenue orders and impact time correct Q for estimates QX this GeoMx. assuming at COVID-XX

turn Now, comments. back I'll to for over Brad call the closing

Brad Gray

and a the The off entry secures great a in into In and to and the provides roadmap breakeven. discovery closing, markets. build acceleration week this and GeoMx to was course XXXX the our look leadership you research year Tom. transformative start. a to translational XXXX Thanks strong over steps our making path growth the on our I of forward XXXX up updating important for while We're set in revenue year. on is progress

that, With like I'd questions. for line the up to open

Operator

from [Operator line Instructions] Cowen comes Doug the of from Company. Schenkel Our first the question and

Adam Wieschhaus

Wieschhaus taking This Thanks is for Adam question. on my for Doug.

XX. of new more XX Your than you the be XX XX would for in the basis in guidance in on XXXX generated QX quarterly XX generated a GeoMx QX or orders

trying just inflection this that line XXXX? to your more understand NGS orders broad-base timed heading number just understand you of to for sight your compatibility upcoming the of trying with if new the So, or this launch your to as product will believe be such

Brad Gray

the already funnel think Most year have good will a are number this into April. in translational month go -- building period to we XXXX. I market dating been and instruments launch we've last line the for supported the sales by of the XX over since translational the sight that our almost of continue this

the coming leading indicators great have funnel of leading have done programs, in are of our test through GeoMx. indicator by potentially both great access every who with interested technology drives week, strength, that We increases that been purchasing customers and which

in of will the begin overall the at of But we year, markets spread accrue from pacing of increase, would I'd will momentum in XX% of terms overall be the NGS year-on-year throughout evenly opening discovery the if benefit That further will business. benefit half year. increase I up the readout. the that throughout the second the and to say, terms pretty quarters look through you expect into to the of the orders entry largely In addition, in

plus mentioned, Tom up from QX we imply of did XX in would that As QX, plus set a a that XX in about XXXX. orders

Adam Wieschhaus

the removed The divestiture by evidenced material XXXX to of operating expenses as OpEx your guide. amount Veracyte

to You've de-prioritize both. to relative & chosen Hyb also Seq the program investing rather in GeoMx than

P&L? a term. & around you maintain on lot a think mentioned of there's are about at I million past, in around Was happen in thought I you've And when sooner to Seq excitement around, development the believe program choosing that the near revenue. in you've of GeoMx, Could now? talked the to there Hyb considering capitalize just the profitability $XXX this restructured any

Brad Gray

Yes.

I be really want clear. So, to

& Lam that we pace basis quarter are on are while a at investing to with we were program not We we a of Seq, the Hyb that closely continuing in invest did when collaborating dollars at perhaps peak per Research.

continuing lineup. chemistry We we have will in and invest our part important are that an believe product to future of program that do that,

new That our management opportunity on being the have that in with capitalize transform a once GeoMx really and to to opportunity genomics. spatial team behalf the said, on of are career of field entire excited board we and shareholders. an And entire we fully

we resources reduced So, Seq Hyb number over GeoMx continue so. resources, them we moved and towards of the will do & and have to move on have

breakeven provided, of achieve at revenue look If flow Tom will carefully the that the see cash the mark. mathematical you start million how underpinnings $XXX think you will we I to at guidance

I in not I being that think expense the guidance. showing we constraining think we're faster breakeven this than time that that. our here really said, That are to enough first operating any do for

the to that diagnostic and the goal. just I step of divestiture along goal mean, remains was one that our Veracyte important business

cash breakeven I us revenue. rate service in flow and product think $XXX partnered to substantially we our million than idea we operating guided service at by but of expenses, at grow the remain for in a the sort revenue year faster of ahead, grow look

Adam Wieschhaus

from updated on that appreciate great. there a any the close perspective? I it's QX of supply to maybe China chain thoughts your And But impact a potential revenue. just to on then Okay, coronavirus, been on exposure commentary have

Brad Gray

Yes.

lead perspective both and glad supply delays at are challenges that disruption I'm our in chain could obviously we feeling, the customers our to we've to chain or looking deliveries. So, at that exposure major have from point. any say, don't a orders supply been carefully this

in are changes. and eye an North instruments that, you in we'll yet on know but the seen we're America major and keeping not manufactured Our we let where and Japan, anything disruption, themselves obviously have if assembled

Operator

comes line question Catherine next of the Schulte. from Our

Tom Peterson

Catherine. Tom competitors actually week, on Peterson is this your XXXX. capabilities protein for and I'm wondering FFE enabling we AGBT one just This that past heard talk about, special of analysis had in

just viewing So us your positioning competitive specifically can you how the in you're remind discovery market?

Brad Gray

Yes.

So, I into think, product In at about comes, again leadership. we our divide excitement discovery maps of overall translational that with I feel market, the product did markets. and genomics here in and hear a translational spatial, course very we new the and area. lot offerings And road would spatial. AGBT secure about new spatial the

of sophisticated as today, to in any protein meaning exact but any region any on targets future, selection work today not at RNA ability provides GeoMx. and meaning related to combination GeoMx fresh inside the the regional sample, look the both FFPE tools frozen,

likely we translational that out market to able beginning a But leadership, customers that emulates are features. those some in we in in are protein is roadmap to the competitors that will timeline expression of are Other including extend roadmap before such lay capabilities continue translational of the be some ways embrace. those to think to our available that of

us we the outlined, incumbent of ahead next we is more it's of competition but We're the roadmap market discovery see of The in feel here. sequencing, that on the and discovery to in demonstrate market. we've when market very We the year which an generation confident with GeoMx combined done job we've exceptional newcomer the power full different. feel in

Tom Peterson

a of see customers anticipation you the with see they'll until you'll you capability? transcriptome this do in in have ahead order whole sense that off think the do on then, Or And you any some holding time unlocked? go GeoMx

Brad Gray

generating we'll the second half orders of of way systems. interests transcriptome whole manifest on a But we the Overall, GeoMx. I have discovering begin We'll capability does unveiling the don't It orders. and year It think of would interest the markets customer helps GeoMx commentary all answer in when goes what of discovery mix increases predict and it. instrument the I to to roadmap on. whole translational the hard between and the question, expect, that of exact any transcriptome decrease hurts see to not that in your on purchasing It's will the as in the were more timing momentum it. unveiling as the think

Tom Peterson

me one it's feedback some of guys qualitative can early provide but sequencing from the for Last still and understanding any readout? early, on you access you know, the

Brad Gray

I would have some Well, overwhelmingly of of week, here presented all capability data those the was you if feedback were were and were you our but received of our studies mean, seen XX is that customers think use with the who've the done themselves. Seattle by enthusiastic this presentation and I best them. affected positive early actually the run facilities, the all sequencing here, really those here full NGS readout. which done NGS in Most reception of pipeline being results able And to was

this it's far. transcriptome weekend readout the so and and positive all across here great think So, of I both data whole cancer transcriptome it's showing NGS

Operator

Brennan from from question Next of UBS. comes line Dan

Dan Brennan

the prepared know the about of remark, just orders and you've be what think some can whatever us you you kind remind how may prepared again? expanded the Brad, team can But we on during information lot of to the factors metrics today you you and I that but the about particularly first remarks XX you Can some and overtime? gave give about mentioned just review sales know Q&A. us on during qualitative with the Doug's you pharma? sales I funnel funnel information question, again, a share visibility provided of just if talking on the

Brad Gray

I our expands mean, for GeoMx every sales funnel week. Yes,

and seeing, doesn't every whole like the conferences this to apply basic we course metrics, substantially efforts, now marketing current have supportsXX% over year And order it grows then conversion we're it funnel just from teams to qualification to funnel We the beginning increase And grow holding here, the of major grew if in and it the we're lead our the dedicated week. year. efforts that of single it XXXX. XXXX rates

We're leads. done generating obviously not new

we we yards their spatial in spatial interest dark an sitting happening XXX engage what some in the around on XX host week, when recordings in to beach there a this of day Just And We degree recorded week, call away. with that had set and of took summit people by us there. we XXX of XX used room this place Sunday. this watch was participants had the Europe. a GeoCast four another validated hours, Interestingly, cities replays summits earlier presentations XXX simultaneously summit for we

plans in North the over similar have weeks America ahead. We

So, we qualifying very underpins provided. rapid that, generating we're the guidance and and feel leads the that we at sales are both pace, into funnel, a that those

Dan Brennan

the expressing given complex tick rates? it's visibility in publication, what in the upon And the China I'm customer can conversion rates conversion formula interest? a have And depending you the seen and increase wondering on share that's up? type of sure you just

Brad Gray

to it's can't what race time. finally conversion so parse I No. over to mean, you early

our almost has orders. program there test become actual converting an seen instrument I continue. several good program driving through offering have, type access of don't we for past the changed We've technology part of access the the conversion of interest XX% into test important We've So, feel will coming that talked about quarters. about that think rate. orders we anything and drives technology the

strong sequentially growth good of access course XX% almost every sequential test really in technology drives, over look the And then, forward grew XXXX program we'll which as quarter.

that's much of kinds a that a work those we really but more to quite am not with. So see. the are position lot provide in to too I indicators color,

Dan Brennan

the competitive from to more was specifically did improvements I not, should a or approach expect you some answer I protein, maybe there's or obviously one the there are the when more. the two of question know -- the lot market, changes translational or to whether doing you, or of companies previous those, there questions landscape, just mention expected? But of after. to related size and two maybe related you're we unclear given is then, to kind going how a that or be And your innovation even of

Brad Gray

any still. Dan, alluded I I we're think don't improvements though not to standing

antibodies primary doing the now add we're continuing library. On the readouts, our to is to protein thing

think I So are today, XXX available have about from. that antibodies select we to

team to Abcam, largest label antibodies of We our out course with there. that's validate continuing a and manufacturer have to dedicated the antibodies. partnership We have

at us, head from. growing it's have I for the just And size now. this proteins a protein nice stage, number tremendous that of choose start library, have we there about the to really of so for So, our think customers a

Dan Brennan

you share targeting markets I'm kind what that market And given that us translation baked I through discovery last Any OpEx? the force? mean, Because, of side. with that relatively that in today? don't after your is just to address a just much one, know that develops market? markets? What faster going of market for touch in Is plan you're when to just -- market? overlap than maybe you're wondering, market any can I you've on that to your discovery How terms attacked sales how experience there the

Brad Gray

be similar The is Any operating the past. researchers guidance. also had baked reps And institutions sales carried is in the expense translational what sales targeting to usually we've the market. market will into who associated discovery for different with the to institutions in into within nCounter who are reps our the GeoMx customers discovery academic same launch discovery

talked we University researcher, Harvard cancer could biological we might day to and tomorrow researcher. a go University a to one So to to and where talk go Harvard and

is of need interested small the What who'd those towards we -- a to sorry, course, cultivation specialists be specialists sales major So, force technical customers we NGS readout. redirect of GeoMx headcount of group haven't the felt in the increase. done, make our have sales

to most like have GeoMx months, them selling for handling on of capable As our sales become new customers to technical NGS readout. our That about launch the XX much in of XX the the reps now GeoMx or frees we've translational specialists. focus from sales been up offerings without

of the sales that's we're evolving So, way the that kind force.

discovery on. and yes, able too just whether adoption year adoption than In terms be to and to will of faster the that it's early as the update say goes translation. We'll pacing,

Operator

Instructions] Stifel. Arias from Dan comes Our of line [Operator question next from

Carolina Ibanez Ventoso

of for project an Carolina portion past, you Or about that top using is TAP Thank were completed XX% taking questions. orders? still for for that are DSP accounts. projects you about your in you of for increase remains same unique This Ventoso you've new the Brad, there? the unique Ibanez finding seeing Are Arias. Dan mentioned accounts the the

Brad Gray

to this fraction relatively questions something XX% interview today, scientific be greater Yes, at test is of original studies say and the scaled papers, I'd technology orders than TAP modestly results evolve drives. simple, that's the of its that answer large from new trying doing to really stage. to meant really were We're towards program, assets fast, designed away mix

result, GeoMx service allowing when GeoMx own can program we're instrument technology them one so and product to we of direct to potential projects, people And who want as and access not an who've to that several our them instrument continue adopted do CROs, a large towards to redirecting customers.

drive. to terms people take coming in who So, the continue expect to first of that go are to I number of along test up percentage their

Carolina Ibanez Ventoso

the commercialization collaborations the in benefit progress And while commercial made the still you of Can LymphMark addition Do phase Prosigna from Veracyte with R&D Pharma, and stand FLEX. product before from the Acerta business that, of lines to you the on companies to between the biopharma diagnostics in recently was also comment and it the already diagnostic transition Veracyte? their are like announced to test? they one mentioned,

Brad Gray

participate in Well, we needed will as collaborations. those

would manufacturer. as they largely of contract That's the primary the we Our efforts. focused stand really consumables say have. I the that and a sort to manufacturing participation of I team will of be, those think, beneficiary the that of on role be Veracyte the not

and relatively that built size. would we our is into guidance material benefit experience is So any in

Carolina Ibanez Ventoso

me. last And one then the for

can AGBT you Thank sites, expect partners or are can Hyb update when what Now be Seq that this the then conference, we you're you. for to platform commercial review other DSP out the an application for on going coming important conferences there? from us the on events from year? And &

Tom Bailey

Sure.

this Cancer research commercial with a launched AACR happens, It's where April. customers. in believe for which late Transcriptome translational really Atlas the engage place we last major at the to in GeoMx, I year which AACR it's year NanoString way. will the conference unveiling conference of So, the GeoMx year we'll for meeting next be is oncology the important be most and the

who've been will working have exciting I'm know already also some presentations presenting. the data are been GeoMx have We far GeoMx aware that customers. awarded system that some that with that our to of customers these two so oral

the have so time. that demonstration what is tuned, And of at capable I of stay think a we'll of technology lot

on I probably much front. comment the And GeoMx as as that's can

& and Seq, conference, Hyb in think the lot meetings expect I think year probably lot to probably provide updates start updates to I of like provide we'll second the have For ASHG updates. we a AMP the don't traditionally we second enter the half. way our technical until of as until half don't where to a the

Operator

Next from Qin Julia question the from line JP comes Morgan.

Julia Qin

good in to Hi, suggest of uptick compared afternoon you had to guys on successful your ASP from of the K out XX XXXX. AGBT. a ASP Congrats XQ. GeoMx I question regarding guys. an for instrument coming realizing million of XX that to a revenue looking because seems just XXX in guidance It million

here? light of years, Thanks. next underlying help So could ASP you assumptions competition? in do And going couple us the bit in GeoMx the little of where understand you a especially see better just

Tom Bailey

Sure. quickly. I'll one one, first take the quick the

priority that were we last in been bundles. we took which back some calls, the through as working of the bought of orders in mentioned So, of we've couple part site early GeoMx XXXX,

the this orders realize to those what expect And were we relative so, year. to lower slightly ASPs than

or So, approximately about this in the quarter ASP QX. our from in so. XXX-ish about guidance we've through referred XXX to gone QX what XXX is is

our of other of the speaking, our than the that's early we trends assumptions. consistent sell other given that of And little the a is less ASP but in on generally might of that course which this I the is let built discounts on XXX, we types platforms some stage throughout comment platforms base of that price of Brad ASP this, to pretty year trend term bit the with we longer see, see.

Brad Gray

Yes.

I So -- respect GeoMx. in your good position with a on is for pricing pricing to we're now, think

in instrument by our from compare to the comparison instrument capital the other out you a bargain genomics Fluidigm, If of GeoMx required. like expenditure terms looks spatial there's there,

The does that all. have other has not major format chosen at competitor a instrumentation

not of dynamics. really and terms it's of in of oranges type apple the So, it's comparison -- an competitive sort

its I'm over instrument now a the whole price way list equivalent that relatively been to of be pricing. system at for and that discounting base decade. able of for By reference, has will $XXX,XXX nCounter So, consistent period. the maintain we've optimistic we And the maintained max

I traditional instrument pricing and good So, in the business maintaining I we think in anticipate have history our a of same discipline business. the core spatial

Operator

line from UBS. Last the Dan from Brennan question comes of

Dan Brennan

wanted I to one. up follow

cases they were AGBT terms spatial the customers new on, your not the found, can't in finding finding done in other be this customers validation, that early that it Just research key new approach? is the signatures was if they presentation but had are that of there to at or important what doing, wouldn't have are find. Because they going really know I things

that academic? Thanks. in Number So end you placements split between types market ask. this the the bit? was terms I the question CRO maybe And versus to can going one. also biopharma that we're then versus customers, little a discuss just think quarter What of of

Tom Bailey

Yes, I'll do the first. second question

continued most our be of end about to then biopharma is biopharma. market those and of XX% with being plus academic XX% So mix CRO,

remarkably how over that's taking the we've orders been the for GeoMx So, of period stable that system. time

off the biological they're In to incredible almost terms of insights happening they're case. GeoMx, think and in I every coming

all immune on chemistry or They None AGBT of compare the at not technical biological validations in designed here insights. GeoMx's traditional against performance given XX to profiling. were to focused were were other presentations They nature.

just two marker our in that potential identified of the for ago given a One new instance melanoma. nights successfully diagnostic development presentations, was of

the And the in frequently melanoma which develops. This in melanoma the cells, was that particular, expressed as done markers at are develops. non-melanoma looking as expression by by damage more keratinocytes, identifying experienced

seems for not was place look using it's very identified, one usually profiling, people so, where And biomarkers, the spatial intriguing. that but

a publication is the of biology look system. using you peer-reviewed papers that performance If publication at Every is those described new of is technical the only XX tool. our other one biomarker papers, peer-reviewed paper the that designs literature, identifies simply the of a

biomarker platforms. identification, performance of stage So, we versus this terms really simply the instrument having benchmark very our where as in productive we've other see moved people a past new of

Operator

more are questions. there no At this time,

Doug Farrell

much Thank today. for everybody you joining us very

didn't you or If two replay the in posted of the miss call, be a so. next hours any portion they'll

can dialing conference by the for please is The XXX-XXX-XXXX. the call is International use XXXXXXX. number callers You both, same access that XXX-XXX-XXXX. ID

Thank With today. again for that, you wrap we're joining going call. the up us to

Operator

Ladies and conference gentlemen, participating. call. this concludes Thank you for today's

disconnect. may You now

NanoString (NSTG) 26 Feb 202019 Q4 Earnings call transcript