NSTG - Earnings call 3 2023 | NanoString Technologies, Inc.

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Operator

Good afternoon. My name is Krista and I'll be your conference operator today. At this time, I would like to welcome everyone to the NanoString Third Quarter Operating Results. [Operator Instructions] Thank you.I will now turn the conference over to Doug Farrell, Investor Relations. Doug, you may begin.

Doug Farrell

operator. you, Thank

third the and on Bailey. is Gray, for Brad today, XXth, Joining as call well President the results financial CEO, released Tom ended as our September we XXXX. me our today quarter our Earlier CFO,

call, factors, statements that as we flows, strategic operating future development expectations our about regarding the of including SEC risks are statements growth, business are of well success current make our prospects in exchange of objectives projections, and for our penetrating and capacity, instrument and investor manufacturing macroeconomic factors.Forward-looking uncertainties, cash well operating future our and as future may orders, focus note and impact impact and trends status and this forward-looking, as the to offerings statements and described During financial and as markets, product the filings. future subject related results, expanding our anticipated those regarding including expectations convertible recent addressable and

results the of undertake update Later for results balance no guidance statements. projected these be forward-looking differ obligation in and we and materially Our Tom our QX to will the discussing financial from XXXX. call, those may

Investor have the as GAAP are financial be measures GAAP the unless as have prepared as Relations week investors in financial I'd of also to that Today, tab measures, everyone Information participating also models, adjusted analysts measures a in all remind like to in look measures release. We will Jefferies home selected non-GAAP we'll press presentation page you call, financial under and and data. as Financial press selected description, be and their in find a many London. that supplement other afternoon's of the Conference rationale building the the exhibits release. opportunity to reconciliations next of non-GAAP GAAP of using non-GAAP we speak otherwise this to turn adjusted the our We well limitations or for call can such York, to include measures, with Healthcare posted as Brad. and which in in forward measures, over Conference New I'd to to well calculation detail the described are Healthcare Throughout the of like noted.You the having Stifel there.Now our

R. Gray

update months and Good key incredibly October for productive joining developments that weeks. on afternoon to thank some NanoString. in the results operating to preannounced this today. have on I'm for several on us opportunity to past we The you you more have expand recent happy strong and XXth been

Our QX more reduced revenue month reduce become leaner last prior of quarter we is million the more about and more we are by announced XX% to than expenses in our track cash XX% the believe $XX burn We expected was operating model, million operating that and reorganization solid a than putting the annually.With high our company of increase our and to on growth by the XXXX. profitable we over than sequentially in $XX record third an year. revenue

been from talent with impressed team. joins spanning discovery while team. broader our and August, and profitable, in investors of traveling sciences, have the field on spectrum the leadership a menu kept the will life major to our a removing the great utmost may have now confidence which our near-term the of to strengthened financial of believe the September expect now strategic maturity with He convertible of a exchange months be our our Todd some of Todd full Chief is This the has couple in a the also drive also continue million debt effectiveness for in to us $XXX approximately with progress the experience of has year. welcomed ideas for Todd like convertible XXXX. towards Commercial the holders passion worked we commercial In of extensively overhang on pushes extended till of markets. we in XX that years on Todd secured the to as importantly, debt, we options we senior as Officer. and I performance an retire have Just how maturity commercial an organization will our with new for to to our update future which to time our clinical notes, improve Garland some sidelines.We that growth.I'd our objectives give provide notes to our point us and

increase Our is first spatial market. XXXX biology objective the to for our of penetration

exited the more more biology instruments of both QX systems, quarter, with XXX than base over an and of was spatial third We consumables. installed an than across the increase spatial demand During prior biology healthy year. XX%

anxiety the during discovery orders who quarter.While than quarter. primary more than attracts approximately orders, sites. created than to rulings collectively demand filling to us to provides CosMx pace competition, platform customer Imager now across eliminate Our customer more strong research litigation orders. AtoMx allows resolution instrument driver account the has single can customers, of who used instrument retaining applications.Our account third biopharma or sizable the that from accounted preliminary across and drove Spatial Informatics momentum. in studies new and book order accounting publications researchers monitor especially CosMx X,XXX in spatial of the the to we of our of of remains to them, preprints researchers the spatial successfully more are to orders CosMx researchers Despite of cumulative CosMx's multiple Spatial for Platform expanding XX% create ongoing strong and the companies about review about Europe, generate droplet-based what as to for been approximately telemetry XX% overall have and defended of single-cell our serve new with XX and our government-funded are that growth to continue we success peer North Molecular we new CosMx from for NanoString customers see for XX believe slowed misuse CROs XX% in of into efforts third business, Academic XX% for CosMx's cell is orders orders most who have XXX growing America biology.Demand court competitors' the

them imagers We broadest content imagers. the are continuing CosMx huge that usability a a Scientists evolution.One AtoMx about an implementing competing seek functionality panels features, and over software excited upgrades we are are attribute convinced from platforms, and for important advantages by to which fear enhance to to continued we product the of our and of biggest spatial AtoMx's customers available. series listening the have missing out comes drives most Hi-Plex, single is of of

on we from of customer to a add a customers same demand to quarter.Plex begin average assay the program first seen will as provides time protein maximizing sample, In goes allows set peak an new relative the set, offering cells XXXX-plex designed XXXX focus they push data characteristic assign map is our CosMx's platforms. to saw whole misleading.Next the RNA in as was the this have the cells, RNA that highly the when This Annual week, accurate and calls up. this panels in our We track to market public also as for quarter generated nicely move over CosMx next-generation to we where customers plex, more begin to correct again to plex sequencing later the RNA will molecule competing segment this are in confidence our properly assigned only competitors brain the CosMx of CosMx generated during few sequencing.Our hundred genes instrument Meeting the unique kits which to plex XXXX -- able we provide The our we'll cell plex. present assay, our boundaries And data each Society the useless in assays. the via assay a XXX to human we or was technology RNA properly released be value highlighting failure targeted spatial genes offering demonstrates detected unique over first data We today XXXX-plex provides tissue cell genome with be competitors. road scientists September, panels is molecule than worse map sneak of and which plex the and showcasing a the or to access detect twice individual CosMx studies and of at The road shipping that it is our between the the even of cells not the making XXXX we of advantage tissue. wrong from of just remain service limit. cell. offer to Neuroscience, find assay plex the XX segmentation,

CosMx our our mouse demonstrate new our the mouse brain RNA revenue. the while on minority spatial for protein a new panel samples, to using power it the include both of on of XXXX studies other will account XX plex spatial drives Some studies consumable XXXX slide.While generated orders, same of GeoMx system and RNA sets, panel will data neuroscience plex our most human plex continues new

papers. GeoMx Protein sample half date. Our installed of Proteome proteomic in doubled called more And volume base announced applications the publications driving applications have groundbreaking spatial remained or applications for GeoMx many the showcasing not research GeoMx a This IO utilization.Protein purviewed Atlas generating and applications half appreciate in a last biology. productive, nearly importance our IPA. the In for about of GeoMx than may the road account its exciting the investors body assay focus months, systems XXX of for new September, we XX for purviewed map. remains to GeoMx highly of of

samples on explore to in atlas was would a more way RNA the week, targets IPA of single trial early has during unveiling IPA modest Xx panels.Researchers it biomarkers. the effective generated transcriptome IPA whole provides Cancer XXX many these we the feedback this Customer target interest forward from more Mayo ever IPA revenue General drug presentations provide of was from of IPA cancer. access for predict spatial and customers combined giving it covers the missed ideal every in The assay. in been a biology content plex X potential smaller spatial resulted its that as with protein or Mass in protein Hospital SITC how makes a Conference all developed.IPA increase we the and patterns Clinic highlighted of and begin Last customers Researchers new. biomarkers, the of extremely IFC after any many and IPA systems plex, they in are antibody IPA with the than competing the new the that growth. looking for surge long has new that clinical to to at changer. GeoMx calling finding immunology data objective GeoMx had offers While in oncology with comprehensive a pancreatic RNA which game than deliver of ] assay represent enormous screening the in discovering breast tissue an the a been we something to for later protein new positive cancer try the [ tail simple platform customers that second completely is to coverage Many of for plex, drug demonstrated multiomic that the GeoMx quarter.Our virtually Immunotherapy predictable shipping IPA in Society already targets response applications At the delivered, protein presented GeoMx. have seat

in instrument still CosMx backlog revenue in year our the possible, a reflects install of guidance steady keep our In our countries. the we're outlook seen capital to the range to potential beat of some our revenue this The prevents and manufacturing The investor foundational uncertain our So equipment top from macroeconomic end European the implementing as updated but the backlog. by today from while fourth up about XXXX.We've is carry units keeps an of corner. sales factors CosMx CosMx quarter guidance continue expectations also spending have far fourth in to quarter, guidance initiatives us delivering work the we range. remain to A end million this substantial $X our QX, represents range improvement team year, progress nCounter preliminary In injunction contributor. a during as by to end even. to instrument into and strategic the in year-end scaled with QX is revenue expect we we're line customers working in narrowing reflects and cycles.Our guidance of upper bottom through we effort to third demonstrate exceeded flat of business that the to hard many healthier the impact objective approximately QX and the throughout towards break cash revenue sales systems we elongation customers, as successfully every ensure

with shared our different franchises we company As September, profitability many profiles. very with X investors operates during

in Our gene not EBITDA heavy percent nCounter consumable-heavy XX-plus expression ongoing estimated on on spatial based mid-plex path but the team The innovation. minimal on is business, yet product the market and its an instrument laser-focused revenue franchise mix in the leader investments profitable and revenue growing, our margin provides profitability. to already R&D.Our rapidly mix based remains biology

in coming our manufacturing models, overestimate discipline loss impact cut XX% development and our research this down last reduction burn sequentially. operating reflected XXX we helped Street operational The of the eliminating month, cash not years. physicians. increased we in believe our QX, During which and expense Early yet reorganized is operations, over

in this XX the product update remarks, referred European XXX Unified to I'll from litigation. a map ongoing us prevents preliminary we our assays on in ]. CosMx countries based Genomics conclude the is injunction was despite competitor or our described the UPC, selling remain the that Importantly, we [ detection Union new that September, Patent granted publicly.To deliver force, our for on position across XXx provide IP path road have a Court reduction RNA in what to as my European an In

path. when by merits path. this heard the elements UPC of of claims in we asserted Court We proceedings case for IP denied considered week, in XXx's and a decision days. of District our court that infringement the same in expected UPC expect it in October us X on to of UPC giving U.S. our will court Appeals XXX that injunction Court filed are German ruling, the were XXx take us to company as November in our full issue next that Prognosis. The alleges forward the this in raised arguments XXx the On infringes against that the and on a related path the Germany of and both called infringement appeal we'll XXx. as the of XX, intend that in in half in in December.The trial expected merits UPC and another validity Delaware in another by appeal this XXXX. have second on second and request be from acquired appealed is they May, is validity for addressed evaluated the begin to the XXth on in lawsuit XXX place last patent to this We're be to of the GeoMx the to what patents favor the year.Next lack referred patents by present confident arguments questions our An as The well of Luxembourg the preliminary not ruled for

outcome the as we of as update course, like details you I'd through know results. of QX soon take more Tom hearing.Now to operating will, us of this We our about the

K. Bailey

for Thanks, thanks all today. Brad joining and us

quarter revenue was growth. of year-over-year third representing million, the XXXX, For $XX.X total XX%

reminder typical Spatial $X.X primarily stocking reflecting a representing removes results and other revenue We revenue durability models, installed margins instruments Biology was adjusted stock-based biology $XX.X base revenue installed installations. items installed and provide XXX of non-GAAP revenue, to was we opposed of page QX, for is and adjusted At as of continued consumables have was continued was spatial QX expenses, XXX% orders instruments QX nCounter X,XXX margin quarter XXX% XX nCounter the reflecting during refer on as gross at production information consumables release, recognition than CosMx's to amortization the differ our during QX, our representing quarter instruments biology revenue million basis, our spatial XX Investor the heavily a our was Relations our costs our shipped instrument the based planned growth more impacted revenue and consumables to XX% appreciation, was compared XX%, service which to than of QX instruments.As was instruments weighted includes to on ship platform. margins GeoMx nCounter to million, $XX.X $XX.X for of instrument Spatial approximately and higher all press to mix $X.X are the as revenue how growth well ship. pull-through we million. approximately and For service and currently of we million, Revenue growth. expected. as and number nCounter correlation base installed number million, of million, the $XX.X seasonality selling operations. other no than adjusted their $X.X on certain million, consumables.QX we which are updating was year-over-year stability which instruments.Turning can due revenue I'll revenue instruments growing prepared.QX the spatial about or those non-GAAP to spatial compensation, instrument during year-over-year. web year-over-year unit approximately Please about the accrued impact exhibits measures lower posted to a or was detailed gross with by end continuing business,

cost we offset with expect a personnel-related with be partially costs, low partially year-over-year, higher-than-planned costs. mid-XX% year, reorganization instrument of R&D lower For QX announced expense on decrease margins development was by the to a million, XXth.Adjusted production the gross benefits in offset and range October of in by software will the $XX.X the costs, full now consulting X%

X% adjusted expenses.We modestly year-over-year, expect and quarter, lower and more to same QX savings fourth EBITDA of million, show by other as result expense primarily sequentially loss trade quarter, third XX% the driven EBITDA SG&A Adjusted was was reflecting to the expenses from lower fourth the marketing-related be lower primarily or the costs is expense to compared the SG&A expected loss quarter in in lower as a fourth to personnel of decrease of quarter result We Adjusted $XX.X a the reorganization. a million. the expect R&D as expenses factors. reorganization. $XX.X about operating decrease be by in

cash short-term XX, Our million were equivalents approximately XXXX.Turning of guidance. investments as cash, to $XX and September

of spatial we This the million, to growth. year-over-year expect in the $XX be fourth updating annual $XXX and of revenue $XX million $XX range XXXX guidance quarter, to we $XX $XXX million For QX biology our to With million revenue range million are $XX to to representing XX% range, million about $XX million that revenue. includes of and nCounter million. service range revenue to

expect increasing approximately updated range $XX to improved in million million and revenue spatial margin adjusted reduction includes and range year expected margins we nCounter as expenses, to million. $XX XXXX, of loss now into to EBITDA by annual gross QX consumable Our improve $XX we of production biology total full instrument lower revenue million the our $XX $XX revenue partially of percentage the a to driven million.Given operating of sales XXXX expect offsetting Heading million $XXX gross costs. and

that also reorganization XXXX our what put models should expenses full profitability on which us the million XXXX in currently support Street profile track for in as first improved be $XX significantly XXXX, expected sequentially lower year operating at with will than We expect lower least in profitability XXXX. to compared reflect, and

our guidance amounts the comment to XX% XXXX transaction the we've more convertible interest capital years bear due about a new exchanged for old we for occupy structure. approximately X.XX% The holders included with notes the secured notes, X principal notes We will with today. I'd position annual in will when large and our The year.Finally, the our consummated provide at senior of X senior in secured notes in amount. are representing on details early from total XX like we for offer September exchange new were new

interest notes.During transaction, about potentially this first of to in XXXX. profitability $XX we for at shares the be million million granted year, as the of to warrants These of support is future part notes in option, expense investors that stock Brad kind we cash will strong want which appreciate old thank paid common NanoString's prior required may further Their provide new time.Now steps saving million company. the noteholders, achieve replacing window issuable these take profitability partnership. $XX of As We us our the convertible under improved company the to in their our and we X.X over enthusiasm longer-dated turn about we with any needed the for to maturity, closing for to to their aligned I'll the new comments. support terms availability and call believe for financing ours by improve

R. Gray

and Thanks, road closing, is biology innovative exciting forefront spatial field. technologies this and goes growth compelling In our map explosive market the at experiencing the Tom. of

series company, in seeking financial industrial convertible to have past in debt are cash operating of which exceeding a our steps and taken These We of consistently may substantially a the our company the rapidly disciplined interest. and our have cloud running manner steps reducing to include our addressing achieve profitability revenue in the the improve guidance, expenses, our profile XXXX. adjusting burn,

take a these we as our attention strong refocus NanoString, like line fundamentals investors will questions. on of we'd improvements, business.Now to your hope for the open we fresh look the With at

Operator

Your comes of first Instructions] JPMorgan. Institution the line [Operator from question

Marta Nazarovets

for to on is guidance. wanted I Vatnsdal JPMorgan. Nazarovets This the ask Marta from quickly on Rachel just

modestly versus little guide but during perhaps the I in beat guide. this call, for far line, bit can this the the is top assume updated but related how you macro-related on down If guidance, straight the year, injunction the you lowered of talk consistently to So 'XX the the Europe? a much

R. Gray

our include fact express more into recognition a reasons that higher-priced X elongation we took down the of of I'd changed And to have mean caution some the see highlighted our the of And head shutdown European just that some then towards as of of for fourth a quarter. our CosMx range second, for in as our peer well number caution from that's notes slows companies the we general, as cautious, of end XX I'd cautious revenue more and the companies.In as year we're possibility outlooks markets academic of sort selling biopharma say into emerge such cautionary things say selling end the mean, We course, guidance our now hearing I equipment. we're is long-term of are cycles we feel biology very growth #X enjoying that begun this marketplace. previous we fundamentals the year forefront about which going feel our any that fortunate the in I overall. our products sales be good countries, you really of case, primary spatial think full range. be in to first to And the ongoing revolution. outstanding. in is the narrowed full could revenue more though, cautious government we of the researchers, I that we a

Marta Nazarovets

And Are the of some of midpoint just budget assuming guide? a flush sort at clarification. modest XQ you the

K. Bailey

Yes.

is top a differences in middle a the top bottom One the budget guide between flush of budget the the the the we top at of the at -- the and the guide, of guide more more larger and and of the bottom of QX would expect guide modest flush.

Operator

Your Cowen. TD next comes question from

Kyle Boucher

This is on the I quick a here had gross exiting on profile one for margin just Dan. Kyle 'XX.

that prepared year of Is you pre-'XX said bigger as we 'XX? possible How revenue. range consumables think back portion overall margin low where some about benefit sort of remarks were You should in the it to become in relative range? we that to in XXs should the a next could that get we gross see

K. Bailey

been year in low range think beyond. way a improving, get the improving and most But that to range in we more is Yes, to and early and mix consumables and now. towards models, about Kyle, that in think for we'll guide good where the which of of production next think I company I that for explicit year the Street with kind would costs hope back XXs track our are XXXX That's historically, has the commentary.

Kyle Boucher

between just Or cash any cash be to we and can get in towards need position then? the How you XXXX, there and should rates needs. are to about be then position? you you as on that profitability confident your And burn move would now closer that thinking

K. Bailey

still could break around even will existing to we've you the the support see So or both business taken nothing process resources that expect And we has reduce our approach our objective cash is that. to thought to get that and changed. with costs, on actions

before year, as Street relative models next be expenses we get general high are in we Next we mentioned, year. where about the think to million started operating will $XX

that, the In to transaction opportunity the really pick with the great get us additional interest changes did year the we some we on path next us gives ourselves the offers support to just next addition to as that from noteholders to business to make which a year, profitability. noteholders

and of to together all on is existing So franchises our where stability resources. position Brad our those get of cash factors be really of combined we long-term we the need we good feel put mentioned what what for is a spatial robust opportunity on nCounter, top really to a think us in

that Our is on perspective unchanged.

Operator

the from Baird. comes question next of Your line

Catherine Ramsey

what Brad, year? end at the next mentioned carry at here. to XXXX. into of Schulte And the third What end expecting you Catherine it be backlog of do backlog was expect to the CosMx the you CosMx your quarter?

R. Gray

longer CosMx. reporting quantifying backlog our on no are publicly We that

not to a I'm I'm position you satisfy sure So in on that.

a of continuing -- mode say down are We to I'll work the in backlog.

a know, we receive an their that year As situation accumulated backlog you not enormous to to customers want that that's instrument, to we a preorders continue. CosMx require up wait of some to

instrument the quarter core backlog We subsequent. their same the the a order to they are able or either working be down to receive situation instrument during where steadily would that customers the

the trajectory on. So that's we're

We carry delays customer long that certainly will will but backlog to backlog in receipts require be XXXX, of we continue into instruments. don't want to it

Catherine Ramsey

million But to ] from come full your growth OpEx needed I you appreciated. give underwrite going to side, on most profitability bridge of would And Any being then the And comments R&D? Street revenue is is with is the outlook be 'XX, XXXX that full recognize sort get top what kind on leverage high. [ just of then could line profitability year probably your $XX in there? Street the of year you to

K. Bailey

comment say right models the in reserve get we Street but comfortable now into that kind revenue we're on think I with more we we we'll can think we'll XXXX. generally where as side I explicitly are guide of until XXXX, that,

most out most leverage R&D that of of side, we're of a occurred. in million OpEx the On is is number of the reorganization of which activity the where out that talking and about combination operations, $XX

about operation I but our your little you're models, R&D if most number, thinking of down, of take business, of reported side it it the just which better of gets the that out sold. and updating OpEx So gross comes bit of supports then margin goods cost of taking of a out would

R. Gray

then on We've build $XXX where the Catherine. I said a just in think on now. always thought models maybe breaking XXXX midpoint and that of about million our revenue should right million was just And and are be that Street between $XXX type Tom's of business Yes answer, even. range to we

think So our with consistent I past commentary. it's

Operator

next Your line comes Stifel. question from the of

Evan Stampler

of I I I pretty I backlog are are for I guide I on visibility going aren't previous think in especially a -- think is giving little of focused bit is peers that you're the people people This the kind dig something Evan with -- but guess, bit down Dan. a want much bit situation. bit people to are on. into little to mean, a maybe too to I here, that, that your different a deeper be question. think the little understand

similar to can like commentary said this kind going commentary going how big felt think I to is and up comfort I were. probably of was kind how give And of year going I year. the the to something that so exit with we to you of you -- give you is that where to previously shape next like lot exit to as there people hear year have we're any the backlog, you're

you -- down, to as get is year. if next think a So you're really into starting the if maybe were draw to start they to going outlook concern little that how I to

helpful. be So there really anything you give can would

R. Gray

market orders, and here commentary, both overly on ongoing think provide the So to sorry choose think, I we're industry. in the disappoint, our a and of across market the of to of can been see, backlog, competitor, category a total placement of product seeing of be which to results our not I any and has not instrument that be growth. companies mean you we'll I hardly potential pace as NanoString's going primary seen I about extraordinary growth and we're this sort reported history quantitative most in think is of that kind

XXX% think growth I than in two simultaneously greater year-on-year you're reporting companies seeing revenue.

thing is and a outlook. that competitor think of strong leadership should kind So with I customers on that market confidence is NanoString very for the leadership be here. at of gain And market growth secular neck-and-neck our to primary and fighting looking our in

Evan Stampler

orders how would I the comparison, any mean not you maybe if sequentially versus any want quarter in about say be terms quarter? that where can to about kind is in up was there are and backlog, or year-over-year commentary of guys things give you the last of helpful that framing

R. Gray

on trends are our quite going in about was again, I'm to pleased we things to trend, with some longer reporting business. how and felt than time order we're going. and Other been robust we're the spatial say, it order good biology haven't Evan, here, really disappoint you no

Operator

Your next of from question comes Genuity. the Canaccord line

Alexander Vukasin

on This Vukasin quick question. is Alex Mikson. for One Kyle

Just just to I was book had recent those on dive into proceedings. on the the the quarter? of past a content have curious impact legal placements meaningful and kind order if over

R. Gray

slowed think the course, European had at is demand within proceedings assays So most yes the are of orders not from customers UPC cancellations impact RNA question yet Yes, over their last of answer who received the the the for on and down selling your recent of do the enjoined order a could course, from book quarter? coming countries, and experienced or CosMx of for out the CosMx handful instrument an for CosMx order and instrument new was Europe had has being of we've now I our RNA not pace no. so.

So had markets. into to impact an other I'm pleased not that impact.But has that, that has spilled say over

our orders franchise. instrument the down spatial slowed markets As Europe, of to the remarks, in biology of in continue robustness American I momentum North mentioned drive while the overall prepared my

Alexander Vukasin

just one, the question off wanted of to kind And build I last there.

future on that some coming guess initiatives been some there like or to like headwinds curious in micro I marketing how or just anything you just placements efforts, near into sort? are the have intend whatnot, that in play grow 'XX. given So of

R. Gray

an in we're frame. cycle out said extraordinarily to market -- new X XX-year I nature answer mean are often method question, and has of secular science. time a maybe revolutions form biology in Well, of a to of over a earlier of we're a growth, And play that they seeing as that that kind the these declared of year, spatial I extraordinary adoption major a new

the here. So, cycle curve of we're right adoption of part the steep in the

which already the the There's in will GeoMx shipment interest driver So of we the interest launches map plex for tremendous the Proteome important road available have XXx spatial other CosMx the a biology of resurgence the that most XXXX.Of assay, quarter.And will exciting other which put higher technology to growth plex we and on plex most be of keep I very a in top of our launch think support technology a first panels the on customers that at of momentum them course, that, continued side, RNA GeoMx and customer than series at our IO important driving those interested become product than higher is XXXX then in forefront. that secular the offered to the is XXx that is in launched platform. protein by companies recently should our The and in Xx competition. of will Atlas,

during on will growth instruments finally, active biology, tremendous with the guess, I maybe product the specific and our I offerings XXXX be in So in the in number drivers XXXX combined we key secular and instrument side.And that XXXX. then, becoming be interest just think utilizing of should placed consumables of a CosMx spatial compelling

to expect remarks. to the And of Tom see which benefit that expanding so prepared that his we the that way expect has gross our also in margins in consumable alluded -- drive spatial to we growth,

XXXX, big think X the rapidly and GeoMx spatial catalysts, the the the of those I our biology installed base. CosMx IPA growing So are activation utilization and consumer

Operator

next question comes Instructions] of [Operator UBS. line the Your from

Unknown Analyst

Christian John. the terms you you give by put of et that, if in work guess, the that's how out to jurisdictions I working, can maybe injection. shift have how in the customers their off can cetera? previously any been, reception if kind not was I update just maybe guess you I and on samples even CosMx affected customer well rounds having Europe. it's on wondering possibly quantify some, You you could starting I guys say know for to in CROs of like

R. Gray

Europe obviously a constrained to market-leading science work in we to so to continue molecular of they spatial benefit it the think European from Yes, our want on offerings flexible our competitors. imager. less tragedy be for We content would science were if

as flexibly where groups shipping get either located, as I processed those with our success we those modest we've them So to to help so samples that. technology we're to NanoString And working by access injunctions. to can said no CROs samples had be there's had can or on

I customers be of is too say, And a out been NanoString litigation scientific customers have and to for of that. And marketplace.I I quantitative how maintain in think to can community in choice don't figuring in our do that. supportive process think really our overall, the our number the still I'd very to the the of rooting succeed are company. best about

our a primary And are CosMx less major account or The the it's our XX kind the overall XX% mix. of issued about are say technologies and part of to of of types think the UPC activities we just reminder, important whatever backlog. enjoined. fact those of that results markets think that countries The demand injunction. sale jurisdiction UPC of going part time that is this driver growth overall our continued I not the as those of commerce I into to be nations fair -- at for of only overall our from a will be modest

it's while it's market. the obviously of should -- a it's not shape one So the overall change headwind, that overall

Unknown Analyst

And primarily your mix -- on academic you biopharma some terms then changing levels, maybe been isn't looks that there? mix. also if then throughout that a seeing anything previous a but switching the gears, But over CosMx the guys revenue of I color biopharma material side? academic, still hasn't cycles like instruments, been in geography us buying like makes it driver becoming just where academic is of the primary the that from time, seeing And on and what then bigger sense. for been and demand purchasing you pie. you that mix can it's from most primarily have have Or on know CROs China -- are have give CROs, up more the sales Is are slowing actually that of you to just been

R. Gray

and take China then to ask slide I'm biopharma the me let Yes, Tom take the to piece. going

it.CROs say and in yes, of are we're CosMx to not a On in cash-constrained are, technologies, the communities see biopharma I that they up yet, technologies reluctant spend XXX% pleased companies spatial equipment. to single more a adopters to companies they're on biopharma front, internally overall, biopharma capital starting ticking research system to piece scale smaller, and want the increase be technologies I but the from access alongside slower tick yes, who are we right believe biopharma cell cell interest translational that avenue sure single think, very $XXX,XXX great especially to an up see for of been non-spatial biopharma I'd would the community. have

CROs on take been you So those great really the for avenue a to us to spatial maybe segments of China question have trend? biology market.Tom, bring the can

K. Bailey

new it. whole any We've doesn't periods. less just a from been last -- trends China, the and for if It's it consistent a look say hasn't percentage think, in it macro from It's sales China remiss us in you -- and it total the of draw last in our any does trends business been it overall But of a of would I as have it's as our several revenue On itself, -- was just it too pretty at dollar our effort of sales over and the to sales portion just XX% quarter. would to draw got I -- we China. just revenue. consistent macro there. our than relatively be, I And be what our with we're small would

Operator

next line the question Stanley. Morgan from comes Your of

Unknown Analyst

is This Edmonds.

we been lately? about of quarter? driver Just continuing been you lower call you're how ask ASP ASP has still the given Was trending the your 'XX, but how be have noted this third CosMx last quickly, meaningful a the margins on thinking tactics. you of in wanted to discounting And the ASPs improving, gross should that Brad, CosMx in some

R. Gray

I'm that going answer question, Tom let to Edmond.

K. Bailey

QX pricing a QX, overall so Yes, million necessarily had quarter. just our and any pricing that puts was rise I lower how $XXX a ASP. shipments bit continued that's the than shook in to us been It coming sort the all little these wouldn't popularity ] really what expect over to a little the competitors in driver It's across rising continue there a were pressure, prices the in bit ASPs those list over this out just that's less broad in position the of marketplace, planned. We products of originally where expected would quarters have we're of bit as on these for say key as as during up instrument. to well still we isn't [ up due than originally is

number as I next if it a we should I up, good modeling but QX alone, year. probably into on models next were think I think in for where ASP we your $XXX go as use you year, for based So were get could million

Unknown Analyst

could upcoming was health a little for next I'm And your year, expectations the guess panel, then your deciding guys I panel out at panel. to are plex XXXX figure on with panel, human mouse XXXX know what panels use? have switching XXXX some looking users are how wondering if I and guys CosMx your XXX you the to guys panel usage? I a the gears IO trying you bit or you of provide panel a to color mix which have

R. Gray

new plex does as that time, the remarks every important characterize plex higher And of result, huge in Scientists somehow paranoid they of that miss out. scientists plex more a they'll panel is provide better. a what or missing Yes, is don't prepared cannibalize lower if I include fear their a insight. my generally Edmond, seen a consistent that gene having we the we've most with foam where panels. panel, are tend to as it And that's

there So couple lot thought run interested transition very demand mentioned, to the at panel great customers plex we would be that a a faster that's panel are just for take most when the customers market, it's they're panel, initially as panel translational human bring developed will for do plex XXXX science IO the could we a accounts XXX XXXX that may by, of that panel that of sure system, you most to market. plex the because to price it by most it's making our than well There's followed the they're XXXX a what of been on see that I'm not majority coming missing for higher mouse biology. demand Human that because of as towards plex our type and X be focused the premium more of even it.But plex human in important panel rapid would cost The we we demand panel. virtually effective. so biology, is the I popular today sure for far on good expect

Unknown Analyst

consumable I expectations to growth should are be And immuno-oncology we guess, strong about, the good early for your upcoming hear the for Atlas how Proteome contribution your it's this year? then, GeoMx. revenue in Brad, a What feedback in for thinking 'XX? GeoMx And

R. Gray

really a question, good Yes, it's Edmond.

feedback IO Proteome of protein atlas panel will a to there's samples, is very plex premium off change the nothing of we we're average of priced until a world. than is the going GeoMx. quantitative it's average really XX price half less Atlas. half much transcriptome with that for been That because protein popular will of XXXX guide. a the the like say, think than transcriptome Historically, unit to it Atlas. whole our our I providing do but application But price our in on on at revenue because at our unit hold I whole less the It's

interest that well in the new too But And update has little excited provide acquiring early think and that. to base resulted installed that capability. it's this quantify for I'm from existing about and a more bodes our an We'll instruments the our call so resurgence I detail. potential pull-through early in GeoMx on February on

Operator

questions will closing further I queue no now this turn at to time. have call over the We in remarks. Farrell for Doug our

Doug Farrell

joining again today. Thanks for us

replay the That you The use Thanks callers hours dial from If please X ID now. XXXXX. did of is be call. please conference our international in callers, miss again. posted call, XXX-XXX-XXXX. any portion about Domestic should concludes a XXX-XXX-XXXX,

Operator

may conference for concludes Thank you This your participation call. now disconnect. you and today's

NanoString (NSTG) 6 Nov 232023 Q3 Earnings call transcript