NSTG - Earnings call transcript Q2 2020 | 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 the NanoString Second Quarter 2020 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] I would now like to hand the conference over to your speaker today, Doug Farrell, Vice President, Investor Relations. you. Thank ahead. go Please,

Doug Farrell

Good operator. afternoon, you, everyone. Thank

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

call future statements that markets, we factors, growth and collaborations, about future including recent are COVID-XX the prospects make and impact objectives status development and success focus and strategic related addressable the planned business our projections, of may penetrating for pandemic, this product offerings. forward-looking, statements the During financial existing our anticipated expanding and trends and and of

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

We believe the those this results. with the That Brad. our we and well Tom Morgan Conference week, materially most with no Later Our undertake of to forward-looking as reconcile GAAP turn financial Baird healthcare speaking you in third to differ call, remind And recent in otherwise We be measures release, supplemental look non-GAAP update discussion call results. This I'd have as the Genomics to in GAAP, later on results financial our Consistent on quarter, conferences like may many the Relations over including you, release measures. be projected to press reconciliations details I'd regarding Investor and Throughout be for to reviewing well includes definition to and calculation easier and as in virtual to afternoon's as call of non-GAAP prepared found our conferences participating the our financial a UBS a September. X.X can of this statements. we early release our to earnings will compare & be the GAAP the website. we'll from will noted. interpret the page several then. the now, measures, financial near measure, unless tab the makes of like forward non-GAAP measures. these Stanley using this limitations all both rationale to obligation

Brad Gray

like and remains afternoon hope what the we've and these us challenging productive Good joining share I'm over today. I'd have to Doug. I you few that thank this for last healthy schedule major Thanks, to times. of months. excited current to quickly everyone the opportunity start adapted and noting accomplished in the on launch. so way the by NanoString R&D the of to programs maintaining commercial am our keeping environment, proud team how GeoMx momentum I that operating the

cover spatial that research a biology, this extensive believe who'll and as on give of quarter is NanoString interest you was call in research growing the ecosystem the Tom frontier a and you and publications, seminars progress before results QX is next field. and attendance demonstrated in handing results our operating trend objectives, awareness the outlook. and snapshot increased off in financial today, During The defining to and toward our key of I'll strategic our in update of second online in our the leader major analyst We biology coverage. body robust expanded that the scientific sell-side spatial rapidly established by partnership strongly

GeoMx within Last of GeoMx GeoMx resulted the to week's any global XX during allowing return This We experiments opportunity, by spatial transforms the pandemic, for this their automated biology NGS installed that for QX. to were discovery readout about lab. systems GeoMx. DSP trend in research. that wish in DSP as was through make The solution. QX realm they readout biology spatial customers the into strong NGS GeoMx of in half into fundamentally in when research platform rapidly us GeoMx NGS continue our primary expand a A from demand of expand orders us underway launch single extend orders generating market, to their massive top NGS the tell allows important lead customers for capability of our list their new DSP to already systems readout base customers the interest for adoption the planning as purchase to the despite market

improve laboratory as Strong XX% improved to returning nCounter estimate they basis, demand closed. worldwide biopharma demand but than and researchers July. and rates were to GeoMx down orders labs about COVID-XX installations same April These of QX for demand or by were consumable course the remain sites consumable continued in reflected North revenue. QX nCounter XX opened, due uninstalled that caused and we our GeoMx from At shipped, had disruptions strong are are a GeoMx the weakness and quarter. of business the helped of expected revenue levels demand quarter consumable remain underutilized systems trained. recovered been laboratory have been as customer and When orders to GeoMx to impact XX% better which began The COVID-XX. their than have nCounter in trainings XXXX reduce during QX. impacted installed biology instrument our the many factors users substantial XX% impacted at instrument GeoMx partially over closures. was during a during despite On on-site customers during slowed XX opened was fully by Meanwhile, closures, currently more Given activities nCounter XX only XXX Europe spatial XX% nCounter from June, performed cumulative end, instruments core part and in of we offset of shipment customers laboratory May, in work XX% America. year-on-year of as

out year. an four objectives the Now, I'd update beginning of laid provide like the at to the strategic that we on

the Our first DSP GeoMx objective adoption research. to in is strategic of translational accelerate

and scientific of in progress research. commercial the Our nCounter our thrilled modality. the we're readout with preferred is Overall, translational pace

GeoMx research accounted quarter, the half our our During suggest orders, leading and momentum indicators new that continue. of second translational will about instrument for

already We featured experiences. sharing funnel XX which with leads Virtual GeoMx These midyear we GeoMx XXXX results customers so webinars peer-reviewed steady Cancer and are building our stream for demonstrates prospective Symposium, proved effective and GeoMx have translational such generation. a through webinars, our system GeoMx power full parallel, of as achieved customers lead publications year June instrument generated by the that to our their target In had unique of research. the

GeoMx cycle publications, that scientific data similar from XX With among from that of a publicly the cell biology. is systems for encouraging use papers, productivity single pace TAP. by and our and samples taking were with body helped quarter, six translational This second days without of Program sales translational increase growing running a and GeoMx the our by seeing highlighting accelerate researchers. a of scalability the readout data researchers both early the order new giving our trend nCounter expression data several GeoMx sales new test to processes use During spatial including through or there has confidence we're cumulative GeoMx of available Access to GeoMx nCounter, drive Technology

compared readout continued of leadership in in ordering planned customers their XX% as instrument, substantial to of momentum, QX, all orders decrease translational to we're about primary XXXX. research. instrument their During nCounter about GeoMx a before XX% all ran in With use our this who TAP of a only confident

capability genes number GeoMx to the profiled research in product NGS research, of perform readout newly vastly immediately spatial spatially and is the DSP GeoMx second strategic single capabilities. NGS the to This discovery launched the allowing launch platform's thousands. reach biology the to expand increases lab the with history. with readout objective adoption expands a most GeoMx spatial of access by leveraging the that for Our solution company's is We into believe launch of important any NGS into

followed assay continues profiled for that Transcriptome or of is Illumina. primary our Access our The power the remains our year. the pathways with a which Transcriptome of assay NGS The market experience customers capability discovery Program combination system. ordered prospective range more next-generation and Interest unique this by allowing it QX compatible ordering be new so our new tissue introduction NGS are new readout in takes via approximately Because associated of are that for XX% increased FFPE new, launch launch robust to samples volume format instrument. in as to from It pace XXX TAP research with NGS is into entry will over program sequencers the and oncology QX CTA that genes capability GeoMx Whole the crucial in provides genes next more for all of an XX,XXX first with in commercial prior wide with substantially readout the research. to which of our for to will GeoMx projects. for by TAP than bolstered account FFPE a The readout than that use discovery Technology role be advantage CTA, full compatibility grew on GeoMx is cancer Atlas QX of a performance critical in profile Cancer by of TAP X,XXX projects assay, the the NGS for plays to

are a using with institutions research. research As their we're that quarter, described last GeoMx leading dozen in I collaborating COVID-XX

of by on the provides during researchers and the NAH COVID-XX people. more importance XXXX basic of seminar COVID-XX example discovery. Institute an an presented readout, that from study online quarter, the Research Broad and GeoMx viewed NGS was During used excellent second a that FFPE than

compatible We undergo map regions fixation assays tissue. RNA are pathways aggressive have protein be that samples safety. introduced an that embedding with Clinically, process to for used must can key to within of paraffin new SARS-CoV-X formalin infected biological and and panels specific these GeoMx

spatial ecosystem support expand accelerate market, workflow rapidly enter we of spatial we're discovery a complete to applications. the menu an the partnerships adoption of of and our creating biology, As

Bio-IT more value researchers. past announced to joint that the a few NanoString GeoMx pairing faster of ease are XXXX with half processing NGS speed, data GeoMx months, turnaround which using that convenience develop jointly systems today cohosted compute advanced dozen we experience times. platform. technology, solutions Illumina the of and increase Illumina attendance collaborating the Illumina's spatial by than drew DSP translate software NGS, By and will Over live and enhanced webinars DRAGEN powered customers We into should DRAGEN with to

an initiate later program We this access year. expect early to

spatial a and has workflow for within for display RNA Science, on Last conference. Transcriptome on cell Advancing Transcriptome called partnerships our This tuned. with Cancer to September centers, customers enabled probes be leading will Beth event visualize RNAscope expand from interest pairing presentations our investment is event conference of to that collaboration also customers tissue virtual This use single University and stay School, with such been by with spatial biology to as a the will customers biology, host allows then curated of Cancer community. Bio-Techne's the to free include at simplify ecosystem Whole on focus that GeoMx. profiling Atlas with these Atlas full from of readout Transcriptome for different Israel application expanded and the when please Atlas. the So that of attend open Weill and virtual division Broad menu validated Hospital, RNAscope The regions XX ACD science will we to providing Center Deaconess will have on we GeoMx select in members Medical to use power General and XX, of Cornell Institute, The Vienna. NGS a the the our week NASH level Medical

while by is expanding maintain of nCounter business, consumable Our pull-through. maintaining third objective strategic base the to our installed momentum our

demand biopharma patients were During Annualized an The and by some at demand gene Most operated expression compared compared customers, Science installed conducted use have prior as increase our to about publications. COVID-XX. COVID-XX immunology approximately we Despite research in nCounters trends. researchers notably, of instrument levels. a COVID-XX consumable encouraged systems, to better the by to academic define Pasteur encouraging than expected the risk the grew identify Last a that pull-through to to researchers research severe XXX of healthy we reduced panels, labs at year by for XX% during signature QX impact, was blood-based previously and panel to published there ago. across of XX% consumable trends base activity Journal dropped year Institute QX, generated research are month, from used immunology which and COVID-XX important our both our were yielding

research that General to used panel Hospital. England Another by international researchers led COVID-XX COVID-XX as SARS-CoV-X more such our immune our vessels study New been the we inflammation a host consortium mechanisms an as important as of any be in response pathogen. blood the by customers to which in XX introduced through causes panel support Medicine, NASH used published has scientists gene which other severe can to thrombosis. date. in reveal combination further was studies allow COVID-XX damage widespread from to Journal recently To They spiking response This to these, by with study the than ordered well panel

expand have to new data analysis we In May nCounter. visualization, a collaborating ROSALIND, BioInformatics also the working enhance to to the for data collaboration with capabilities been nCounter Finally, experience. analysis cloud-based to tools and suite exploration we data analysis build Onramp that began of facilitates customer and

regarding for We is in strategic our commercial applications emerging partnerships and fourth our disease XXXX to & applications Our discussions Hyb & platform objective support to infectious the Seq partnership Hyb for pursue strategy. for that identify key active Seq. can remain

chemistry we research explore to that from details offer may Hyb these around developed more continues applications in new have In the year-end. avenues confidential for that & products remains I be time addition, the future. expect unique of able to sequencing on team Seq-based provide growth to our at which potential opportunities

Now to quarter. second the Tom review I'd to results details over call of operating like our the for to the turn

Tom Bailey

thanks and us Brad, all today. Thanks, for joining

Recall $XX.X XXXX reflect The product increases measures December forma and year-over-year expected. one-third we robust X%. a transaction service orders now forma COVID-XX, XXXX million, stronger same quarter recognize revenue of instrument QX about previous pro in with representing with GeoMx our over was demand the whereby Prosigna revenue being units Veracyte Despite sold. pro the second of the remained than of that

our $X.X labs. total with pro Our customer metered revenue that driven revenue QX growth instrument COVID-XX revenue About just forma million to shipments by GeoMx The of $XXX,XXX shipments consumables. recognized instrument and from over modestly GeoMx on from recognized GeoMx. impacted was million. during derived of $X.X QX depending was by was instrument access about

to basis impacted also revenue on Our or reduced lower the of number closed with the XX% that about were QX revenue as lower rate QX. QX inability of consumable million, by we impacted consumables compared some XX% modestly million, forma nCounter XXXX. pro activity. shipments pro a were imply April April QX instrument was or QX guidance planned trend on for labs $X.X was nCounter to the $X.X about our orders was to call, XX% by a to about that totally partially was we and nCounter results Recall pull-through compared our of customer $XX,XXX $XX,XXX compared over quarter. GeoMx revenue consumable stated customer either during forma continue just ship lower during These XXXX orders for range. of to XX% XXXX as balance

only Asia month April's, June our most more results by nCounter nCounter by reopened were were regions in From as during consumable XX% orders QX $X nCounter began North and year-over-year. showed May's approximately consumable COVID-XX last about Pacific year in improvement consistent saw both service and sales respectively. than with from heavily lower recovering we derived customers Europe about revenue material standpoint sales year-over-year declined and While only with nCounter geographic consumable their for services and the million same XX% labs about GeoMx-related impacted was the these sales lower where a quarter. XX%. America Total June QX XX% earlier

measures revenue XXX of how of the Prosigna our received gross quarters metrics points impact Please including non-GAAP margin XXX including web as on year. the each that transaction. I'll we Veracyte key press lays Approximately be EBITDA by last of exhibits remove Adjusted adjusted than the out which or adjusted posted financial stats for our driven a approximately depreciation onetime basis non-GAAP and now Turning and refer adjusted expenses. prepared. XX%, was compensation, well and points for lower information new product providing certain to Relations on last a our was results are service pricing change that four the for items. or margins had as certain on to lower basis basis page, Investor the we release stock-based to exhibit

in given COVID-XX, April was as show reductions greater also our well as investments XXXX prior to improvement around revenue. year by X% this partially the decline reminder Xth, the efforts. savings points commercial in the the reductions as we the XXX due and expense uncertainty we trajectory total will With reinitiating today. and the approximately sales GeoMx our of percentage the primarily million over the certain economic decrease our savings revenue was loss QX sales be the related short-term trade million, the expenses transaction full reflecting GeoMx by was investment These were EBITDA other from incurred product SG&A and with of ended million, QX. XXXX in initiatives. we not The quarter and year to equivalents, operating a during well acceleration digital impact in part a COVID-XX and experience primarily financial relating of guidance X% an on agreements the guidance. suspension to travel as partially The of a of decrease to continued with mix Adjusted $XXX demand prior full initiatives compared due $XX.X offset announced by of million, transaction in guidance, was And a investments. cash, instrument was impact change Transitioning as of basis nCounter decrease cash to lower by by on continued of reduced Veracyte to certain Adjusted utilization driven $XX.X continued GeoMx-related of offset R&D year. customer manufacturing offset in consumable $XX.X expense in expense group of was Veracyte realized development capacity year. primarily prior service the expense over The made and quarter our of marketing expenses driven particular Adjusted part termination reductions lower year SG&A our as for X% activities. collaboration our a

thinking the will guidance some offer rest will as we're commentary about We XXXX. provide QX to how and of

For QX, revenue. revenue which $X of midpoint QX $XX we nCounter of GeoMx million This million from product at assumes range. to range the represents currently of expect XX% that to million growth to revenue million $XX million sequential $X and of $XX and service million $XX

generate In addition, will XX-plus third GeoMx in that quarter. we the we estimate orders new

the time, compared QX at but growth in show will QX sequential and for this we full improvement XXXX. and full a XXXX, as As to order and that expect would usual normal year occur shipping patterns as to business recovery

in shipments dictated in second As unexpected still due receive closures. revenue the the recognized half might revenue site if could also negatively unable year are impacted GeoMx QX, to recognition of instrument customers be to by operational by pace impacted team's which customers as and be own of as install our of our those safety our the systems to well is experience customers. customer ability train and procedures

of margins manufacturing improved due higher in gross expect consumable to compared recovery as the second utilization. and to be in year first capacity the revenue the expected half to half We modestly the

our initiatives Given an by decision our opportunity to market strong cost balance we've Veracyte levels. and maintain in active made pre-COVID-XX us sheet biology, the position, most the critical afforded to investment transaction at spatial reductions the the

QX. around result, a expenses are for QX recorded the adjusted we be As QX expected at on or to and an our operating levels basis

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

Brad Gray

near-term a science recently. field the like in that Thanks next-generation a single lead positioned the researchers, the offset balance more for spatial diagnostic over we researchers, decade our life and the new to commercial this strong cell biology genomics in than well-positioned growth headwinds, addresses discovery the genomics substantial sequencing is to offering next shop frontier and With sheet COVID-XX and come. of one-stop are is years research in more eventually, ago needs translational NanoString Spatial or laboratories. Tom. momentum

will the to demonstrated these your disease see open increased have research from And and line investment and work nCounter our questions. that, has up your line believe times. and I our science in Schenkel from both GeoMx inspired comes thanking close life in first the [Operator in we're commitment customers to they long-term more With that Cowen. Finally, employees uptake unprecedented for of the unwavering team I'd the of and never for question crucial. by been like Doug Instructions] infectious

is line Your open.

Doug Schenkel

observation's thank if between normal. back double Hey wondering and good being for outlook I'm it if shipments your be me loaded go in which shipments I and check quarter, did back-end as for to momentum the more obviously higher guys I'm on for a explained I wise taking thinking back and in and right that right, difference QX go for that this about just Again little the built by could conclude if with you than couple And installs is afternoon and the even right maybe questions. QX, way this but more you of just order GeoMx the legacy being than than that's pandemic. I if my nCounter? the course didn't struck normal GeoMx to a what that. the But what I'm over right bit function of notable a didn't you check more saw a that comments

Brad Gray

Yeah. overall, Thanks QX momentum we've increased the Certainly, for Doug. experienced GeoMx. for question, in

of nCounter we of the QX data couple that's sense do readout was inferring from course readout. flow, that GeoMx anticipation with -- unusually NGS demonstrating as be some launch, which to really excitement if a the And and both what product available, an of with back-end that the what of the is a think growing numbers. think I respect said, is system in and I weeks. don't past can publicly the loaded affected order you're now

customers was and COVID-XX. inhibited, by in GeoMx strongly to and However, systems install our ability ship train, QX

train vendors the do, to are do good was go access, we trained where the XX installed first into labs. the have employees welcome themselves the quarter, XX and on-site labs systems the to our work. to not XX, lab were customers what own to employees. me were where protecting In second able into five of welcome the we were In who of was the really really XX because And were shipped only let labs, install there during quarter. to not their customers that our eager we labs, quarter, we their That And many happy ship just their labs. to and for numbers. their capacity outside So and a safety those XX in over have second situation in

So lack second primarily lower for in installs of and with COVID-XX. that is the the quarter reason access shipments from lab training the

Doug Schenkel

this to a from That's super helpful. Thank would expect your couple GeoMx field? in the if the with customers? mix you the I of and instruments in ratio so, for I for next of if all that And to details. And to demand way are NGS in wondering, there And for new over then, apologize expect nCounter still at the do out an guess to capability, I remarks, in order in detail, one, of availability your you remarks. NGS. existing this you you And how probably missed impact bit quarters, that that more regarding few thanks a that all? evolve, standpoint good prepared if have pronounced a segue, I'm all kind prepared of a you XX:XX questions just now

Brad Gray

ship able to XX% sell NGS Thank changed customers, first. customers. existing sell to Yeah. GeoMx nCounter readout new which majority great take into primarily our second being able are These instruments in Yeah question, the and being of the capability you. users mix necessarily not as you absolutely of sales, to the users, the the was questions, of Shifting nCounter to are past has away who past. from in noted Doug. a I'll only

were for or and that nCounter. half had already nCounter that customers. was for from quarter, that who nCounter were we the readout with capability about customers -- systems and half only nCounter maybe many second a half only number remains orders of those bundles were new So and in the of then orders were for readout small from received NGS our -- of new about those of for And --

as launch. and our to instantly. see, the it It that about exciting existing mix, installed to of And And new closer so beyond NGS to GeoMx enabling market sequencer that's increasing course expect serviceable So, XX-XX allows you Illumina shifted I a base, approximately the overtime. can grow customers. to XX,XXX that XXX-or-so what's nCounter and into base, installed by break XXx between

your question will not whole about I selling of nCounter have first demand. near-term -- the NGS overall for readout. a GeoMx on of demand that Of reasons, for GeoMx nCounter, do not host think we're launch the In for just the of a effect systems terms nCounter

to continued QX. over only last we new look year expect you to were so, the And If that with or GeoMx XX% It bundles. XX% of orders nCounter associated continue. in

we the And do, the we nCounter the outweighs manageable so company. in do in opportunity overall in of course, the not then, We expect if to we'll a readout. would more the QX. I NGS that I were to, as see vastly think extent in context think those NGS fall-off GeoMx nCounter demand meaningful opportunity that be of the of from

Doug Schenkel

appreciate taking Okay. Thank you, the guys. you’re questions. Really

Operator

of comes from from Peterson next JPMorgan. Tycho line Your question the

open. is line Your

Casey Woodring

sort This the at what start, that's Casey guide, low just we conservatism the of talk can for thinking XQ that maybe can is about essentially of end just guidance Maybe about to talk into you is guys. guide? Tycho. flat were your you giving Hi, GeoMx guys quarter-to-quarter? on So baked

Brad Gray

Yes.

necessarily First question, Casey. wouldn't call thanks for I it conservatism. the

on about ability access trained. customer where a quarter as GeoMx so that about laboratories our a users systems at have managing we have slowed labs As are we careful their our in ability is to systems quarter, quite have limited been much yet installed, recognize had that answer how COVID-XX during of we worried continue sitting are -- question, have. letting install users access as while trained but to And now I Doug's still the been have outlined that because backlog is the customer to and our the from to and my function third now to exposure. they're revenue second in of shipped We systems sites very in crates staff have that was -- that systems still expected been not we customer in

XX-plus I to of in number by installation I responsible about XX-plus guidance offset coming our good a guidance barriers feel have out I you'll is seasonality we conservative. partially the quarter we would the Tom's commentary good call there. relates tremendous really that bookings mean, really new the the the about the feel QX. instrument we really So and what's and what the great installation, launch third we NGS. see have shipment I given normal training. in But about think, not pace and of to of momentum summer is, momentum have That's months. orders

Casey Woodring

then, response at just, you that quarter, any great. quantify products maybe Okay, sort using from research be customers are of to And or COVID-XX in whether saw else all it COVID-XX the revenue for? Atlas immune you the NanoString guys anything research could assay

Brad Gray

That would say the small. through it's great it's GeoMx did. a And in the our nCounter small It's COVID-XX a or most, it system. million of great major part and FFPE industry didn't way for use think. not immune some shows way business. very less probably the other still It's Yes. it's to I to the tailwind, very of million being nCounter's had to very we ability to profile NanoString research. a ability showcase than the would at contribute its businesses great -- that way our the showcase $X said, unique in think discovery COVID-XX with We're of technology a compatibility of I a maybe $X We proud --

Casey Woodring

Thank Okay. you.

Operator

of question Baird. from next Your Catherine line from comes Schulte the

is line open Your

Catherine Schulte

my thanks I question. sure customers for have partially in XX% talked guess, opened. quarter. only but of I'm it customer the varies that Congrats about significantly, first being around on taking And level of labs you your what's opened? the average by kind those partially activity pretty

Brad Gray

Yes.

benchmarks full which utilization labs of XX% remind just at was order We operating -- the call are maybe fully say, right? that overall is that to XX% XX% on as relative of close that capacity Catherine, think that or the business, is or pull-through overall and you other utilization we're that about would the maybe the doing said, so? historical guess to I'd opened a XX%, pretty good to gets Tom I are XX% me, our of you opened have seeing, the estimate And it. that then So labs

Tom Bailey

That's right.

Catherine Schulte

Okay, great.

Brad Gray

sense, that Did Catherine? make

Catherine Schulte

Yes.

Brad Gray

Yes.

Catherine Schulte

end great. the then hit third GeoMx up see for XX to I pre-COVID is original pre-COVID orders, was nice that quarter. half That's time, your quarter just very number XX-ish in your challenging know do still year? tick those And you that feasibly at given you could orders guidance for the But sequentially first think below hit second the the slightly guide. for and up order a outlook number what

Brad Gray

Yeah.

don't that I want think could, and dynamic environment think, Catherine, know we laboratory we though very is still that customer we great will. uncertain. guide a We I to it's had feasible we QX. The that,

lockdown a to We back go situation, have medical great if upswing launch another were have we cycles. were disrupted to in experience sales NGS if infection into would centers that, momentum overall rates, we academic in

I us for a fabulous year So be really That for a to that clear, COVID-XX. XX%. it is to would outcome that's been get possible would by disrupted we back represent think

are not we that. That guidance So conservatively withdrawn. should be currently guiding

Catherine Schulte

we Can customers, one differences systems just more more then as pull-through an you're who And into sequencer? maybe Great. reading us on how are between on, more just using the going NGS users thinking versus those a about Okay. and out nCounter you GeoMx see readout. remind

Brad Gray

Yes.

higher for more nCounter. is or of to on We the sample it in what system part a per the than would on believe basis be given Xx that's that we're the consumables a on the not will an it price have commentary We read has be be that's in point selling guidance opportunity for because pull-through expected NGS.

So, half pull-through as even at per samples NGS the an readout number system. an nCounter processed of as much would generate system year,

who take observe I think type that, seeing to doing. a to certainly, of few has update capability have the NGS of get point actually get it the see readout the quite behavior trained we'll to begin looks systems quarters to But looking few to we're for But those NGS price take going adopted they're higher customers and a is quarters us and by research of is appropriate the as but of readout still it's it's volume the like. consumables. forward the this, what will what to behavior sites the customer pull-through and those virtue installed you

Catherine Schulte

you. Thank Great. Okay.

Operator

the And Instructions] from [Operator Brennan your comes of from Dan question line next UBS.

Your line is open.

Dan Brennan

Great, you you guys. ahead or are for in pace about that thinking labs the reopening Thanks what the of for baking how – of taking for to QX like some you're of in color assuming outlook? thanks as are terms question. in Maybe just that look and the QX, we

Brad Gray

Yeah.

we're yeah, environment. the off currently QX, basically think for guiding open laboratory I QX So

actually over utilization Our for was the XXXX assumes July, a consumable are we June. slight similar rates to at QX levels. improvement what that which June of nCounter XX% saw in guide front was on

August reason So is in baked we're And opening. in think, think what's in of the phase will I we summer upswing September don't reopening the what to we're August. should enormous season. we for that's labs QX. don't I don't expect We're bring. in course, in into an know part of that lot of be timeframe, baking yet but the the lab in a

QX, question on the I'll QX. take let Tom For

Tom Bailey

Yeah.

QX I think improvement modest that in we continuing talked relative we into remarks, prepared as QX. to about get some my

the we based from be at on we expect we I be based to Dan. So, that, now don't that, in that. we'll sequentially there improvement we throughout do I what recovery think believe, point year continued full see mode just this see, we but what QX extrapolate on think in

Dan Brennan

it. COVID obviously I orders. that how mean, on Got from this And had would you transpired? then just solid the GeoMx characterize you impact quarter

in give impacted QX – COVID? from high-level impacted possible can from the the was get the quantify the Just wondering, kind and talked inability a get just the of negatively mean, already about orders to it – But to it were I place labs of kind terms in boxes. is from You still how front of or in view terms in of a if kind of pull-through? us negatively to inability of you customers of

Brad Gray

Yeah.

the it So Most negligible urgent mean, of there. thing there I'd would a order for who customers spatial great say, about impact. I our front, very is on out customers I as priority the those challenges, to say orders biology in they XX-or-so lab they're and submitted anticipated powering access or getting that despite COVID-XX back wanted through QX experiencing, capability in QX. because we're soon it's doing quarter, is Dan, the they've as this

on bookings. trained about no have and substantial my though fewer say answers, There installed otherwise, was I fewer we systems have on certainly, would systems I'd mentioned would and than quarter. than shipped a impact earlier in as five revenue. last And we So impact we

So actively at have certainly $X then can system. consumable our QX. pull-through would QX And yet because it to that's least much you QX labs through kind aren't of they instrument trained. their that was going as been lower the in instruments been haven't or than installed, to in we in had million And actually figure that's revenue using shipped been installed they've of well, been been carry either being used, haven't but many those impact users because

It the to that. us few and GeoMx. know headwind the of with for training to million. be on That's I sort could of consumable cumulative And don't we'll GeoMx quantify of slow So thousand order hundred to installation carry how a $X up a systems. continue on effect

Dan Brennan

maybe then more. one And it. Got

half boxes obviously far of the so just for then and of math in X.X versus could times. sell laid it go behind orders and given top Just look for TAM call in terms you kind placed so of. enthusiasm you're of a -- -- discovery talking I when X.X or out discovery back that the on think you're translational, it, was about increase the And X.X twenty-fold TAM kind and kind you the through to that it's of analysis. the But X.X highlighting

the very you of to? discovery? far of side kind more discovery, you early of that discovery upside Is about kind guiding you on how stages do than think valid, of think or there's initially stages from opportunity Just Thanks. greater a still the early do thus were

Brad Gray

Yes.

the TAM, understand beginning must When was were brand-new in discovery. biology to think just previously total a was I couple underestimated we The don't spatial be, market I know, market it. which now We years need we built latent. old addressable concept. that

of come intact. to I that think and them to a do have capability we've coin the single that will same flip recently to of tissues kind analysis lot more is that what keeping side problems then the analyzing A into of we embraced same same while tissue cells think of the associated the the biology embrace rapidly learn cell and researchers biology. is the spatial single sort

we at being able were Whole yet the targeted in analysis, addition readout. solution every we cancer be assay will people that allow did human in and in In a biological the to a of we bring researcher constrained mouse that engaged but us or to XXXX kind offer market to for starts working imagine problem immunology only we've a to that with bring on to NGS not did nearly know appeal any who in even capability time really that just sample that to Whole going to not capabilities. researchers And in past, and world. We the we the Transcriptome Transcriptome with as GeoMx

think have have our not to discovery. TAM revised market we suspect yes, underestimated addressable that updated right I So, or you're we estimates. in But

Dan Brennan

you. Thank it. Got

Operator

the comes question line Dan Arias from next Stifel. Your from of

Dan Arias

Brad, can the in but guys. one your are you are just Good for how of give the think of to delivery? half of picture, times that communicating if at the do year? much customers then comes the there you split sales second labs what compress engineers? following lead Obviously, XX% the are up we you and kind afternoon install not inaccessible accessible of on just you on versus you able train. stay just to infections points upright to can Thanks. side, when XX% in of And this point closed on sort on the your are last a other where that of sort And here it on

Brad Gray

Yes.

I'll lead first. do one maybe So time the

currently ordered, we're of yet think, instruments that not I but have been XX carrying backlog GeoMx about shipped. So, a

labs get much general is? depends what today, of sort we into time. months can our So kept policy a and down safety for to the did that's as if service own engineers road hope that access and And will that on laboratories It's same really pace can that to that's and they're install your ability our go installs institutional the me get estimate right? I'm second we It's quarter, at only basis run that's Certainly less communication -- lab yes, their lead it is sort our up by the changes their X.X lockdown dial sure what as is want shipment So of well. the field and customer off of safety most four, and weekly. for quarters the people's both During lead located, own done our months current where buildings on lab the it literally of to people our rates, our than have the employers train. have supply. labs the giving. that in. They've hard not and way customers. Many pace. because not of office of our status we're current begin time four, into clear constrained it shipment call five But trainings We constrained we for five get by is

and we of that So novel in they as remote there are experimenting are still remotely. video, trainings such delivered to that a by teleconference. install do There's by have way systems are get But still approaches delivered a number physically. with you to

change but have So on I'm for answer more sorry to satisfactory Dan it you does that, I a really week don't week.

assure can You generate and we that can do our motivated to are starting those and to those we rest and customers running and systems productive insights. are up get everything motivated

Dan Arias

Yes.

more this a maybe bit want expansive Okay. it where is collaborative maybe about or on the just little their where And appreciate then is the a applications expand just support then what throw to not think when you I with effort [ph] of start DRAGEN and the whether ecosystem guys And you about partnership? forward? you the comes they can those thinking that. have that going to might growth on and

Brad Gray

and network, back relationship of to about in clearly any And a a the AACR challenges remind partners we of the specific we But won't with XXXX, beginning Well help ecosystem speculate anticipate larger whole to certainly have as very future. launch powerful I as a just the partnerships. make workflow there helped GeoMx that system be. can going set the you to now who address the whole to out Yes. from us said GeoMx wanted on company up or a they either have have we four

have the Biosystems Leica from bond Rx who've Danaher Leica We using helped bond automate steps their system. preparation slide

of provider We have assay protein assays. world's antibodies largest proteomic the who've Abcam the us for helped scale our rapidly technology up

I products workflow ACD to and course that is and silky demand our have work people the use both have how one have launch. both group really is, solutions benefit two Illumina for now We motivated these customers moment faster because is regions helping the RNAs the the One us helps of twofold. reassurances GeoMx mentioned together. for their of readout it that drive is of is sequencers is the is us three for biology partnership motivated been together. word for And who out get smooth invested place for in as compute choose very Illumina of people's in. the heavily interest. Those And to who just to and are been partnerships And for to Bio-Techne's and visualize for systems. NGS on has be new processing, actually in very of our The of spatial GeoMx IT going NanoString for future it course Illumina months XX we're a turnaround think about times rationale us seamlessly appropriate the helps selection productive. we reassure bio are our demonstrate latest and power both And at Illumina

But partnership that with the to important -- in based technologies great so work Illumina it our describe working really be future. to this partnership together. issues happy ways I seamlessly by our in reassure So helps be that solve as the them and a can would a importantly certainly expanded start. partnership We off do them most enjoy some being customers and

Dan Arias

for If is that. one the like the from early think Is in some appreciate for be could stick in from at either more talking you're Transcriptome the XQ going that product September product usage, or sounds to maybe early I summit. program Okay. of there. in to hit there It products best or about XXXX? your just some or revenues it Whole that TAP potential I those as just

Brad Gray

as a to about think revenue contributor. I think XXXX it's best

quarter, revenue be We fulfilling in way the revenue taking in the TAP orders not fourth for orders program minimis. will be Whole projects de that but contribution Mostly quarter fourth until for those XXXX. will we'll from the have in Transcriptome recognizable that's open probably those a the

it but of wouldn't any in important model look instrument and driver beyond. GeoMx I adoption to revenue year, associated and So a will that with be the in very revenue XXXX current

Dan Arias

Thank good. you. Very Okay.

Operator

are is back If expect for no posted that questions the did so. International the couple today, turn to callers hours XXX-XXX-XXXX. There please Doug replay of or be replay in be of reference Doug XXX-XXX-XXXX. both XXXXXXX. a please To number a further I call you, Farrell, this over anyone same at the time. will call dial Thank Mr. miss The access any portion we to dial operator. you. that Farrell

Goodbye. thank appreciate So for We again time. you joining your today. us

Operator

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

disconnect. now may You

NanoString (NSTG) 10 Aug 202020 Q2 Earnings call transcript