BNGO - Earnings call transcript Q1 2019

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Operator

Welcome to Bionano Genomics First Quarter 2019 Earnings Conference Call. Today’s conference is being recorded. At this time I would like to turn the conference over to Ashley Robinson from Investor Relations. Please go ahead.

Ashley Robinson

Thank you, operator and good afternoon, everyone. Genomics XXXX Bionano call. results the to first financial quarter conference Welcome the Dr. be today Leading will call Erik of Officer. Holmlin, Chief Bionano's, CEO Bionano, and Ward, Mike Financial announcing the closed financial market today, issued press After Bionano results quarter first release for XXXX. a its be A on Relations website. the company's found copy the release of Investor the of can page

available no and as information the section materially today results these on result risks, statements in other based differ be statements online in today’s also update XXXX factors conference benefits expectations the like available website. which replay our and of forward-looking timing contain statements a be improvements some statements no about company the circumstances Saphyr contemplated expectations I Before everyone statements system our studies the over Saphyr realized. current of company’s the of the statements certain may assumes in conference we of investors that and Bionano benefits assurances would system begin, anticipated are Such for the and statements with obligation change. advantages and webcast call These content that and technologies, sales and commercialization An are to results current the to our the recording statements SEC. will Actual due are of study plans, strategic system. there adoption upon reports to remind of of release to our number identified audio regarding Saphyr and call of forward-looking made to can pipeline, during this these may and driving from press be filed and anticipated including will forward-looking such based

over and those For call on replay listening I'll recorded Erik call who May held is of Holmlin. the the turn the XXXX. the XX, archived to that, Erik. webcast, this With benefit to of maybe

Erik Holmlin

is for today our will to on very we and With will us you remarks, session. progress for review the this past Mike our question-and-answer our call Financial afternoon, quarter. After a have everyone. Ward, quarter join an Officer, Ashley, good call update financials. prepared I'm Chief you, me today pleased first on Thank open our the who

in Now today highlights the of to growth pleased quarter we'll We fourth from some course that strong our build it's compared like let to quarter, first the reflecting fourth compared this revenues last year. by coming million reviewing our important business a of financial to this me such off others revenue same XX% begin is of of the the XXXX, over year. space seasonal recognize that After were of our performance period increased the quarter with with $X.X and to X.X% to continue quarter.

genome And basis system interest the expectations quarter Our on for revenues growing Saphyr in the our performance reflect and this around and focused labs a in going remain translational research. seen year-over-year of continuing results we've the the exceeded analysts’ on forward. kind we world, full clinical year the analysis sales

as already diseases patients of by system ability well, to Saphyr the genomics of commercialization for quarter us needed The of with that course strategy. essentially advance of the has the discover providing to continued the this quarter our in this to this ability cytogenitics. our financing consistently ongoing our Saphyr of segments of transactions the are We variations Saphyr been application detect, and with and with genomic strategy The is market, completed its variation. within development execution featured research happy driven publications diagnose structural demonstrating translational capital demonstrating year, and highlight can target multiple its only

last year in as to studies year of relatively XXXX, the key, replace designed the number is less and care teams reliable are that on number a number errors publications will genomes fluorescence clinical test major the A using simplified currently in and such failures. of to of studies is our equivalent Saphyr the in-situ patients has hybridization provides year. rare half to and Saphyr two outdated of use karyotyping microarrays. the designed tests. hematologic to susceptible to for more These just technologies or portion to is So to Bionano analyze XXXX, obtained the is eclipsed conducting workflow human malignancies the genetic currently FISH, independent whole over using standard-of-care the standard the platform show obtained of far diseases in focus published describing that of Saphyr establish studies in inhuman certain the beginning and this publications Saphyr results those for that compare evaluate and and results as

and basis. investment sample development, addition In different market Saphyr the less a making on to system build to our have of use, continued to capabilities faster on in more we per powerful expensive in easier the applications, it

cancer, year, types advances of new like applied as our So users early-access heterogeneous launched many including several variations mosaics. hours, complex including capabilities various many increase new hours cancer. new including this XX breast, our and cancer and previous require versus find per finishes and throughput to as instrument data structural samples XX that workflow analysis and that that A pancreatic week. preparation and ovarian, prostate Bionano four in samples, successfully far leukemia, could sample in analytical updates have samples one this chip all that as important as we to have weekly protocol

us that the path historical mainly by Mike growth summary, revenue clear to our commercialization We continue in the on the XX% of year-over-year rate my to will With to it believe update as for research cytogenetics. to XX% a clinical basis for to this driven our on an for market future financials. adoption over we turn progress in that growth foreseeable Mike? the maintain is pleasure call allow

Mike Ward

review quarter some the of from now and our first will briefly you financials. Erik good I Thank afternoon highlights everyone. XXXX

million EMEA $X.X driven by Bionano of $X.X in revenue quarter Growth to year, first million during was increase customers. quarter million market an in the total XXXX. The very for of instrument traditionally quarter, offset being the percentage to $X.X million XX, increase sales. $X.X was compared cost As million by Progresses. business X.X%. period with Regardless to the mostly a ended the increased in in tending sales our product geography, million is Asia to total to three March $X.X same or customers of year our of to recorded revenues months seasonal was Pacific. a the sales quarter increase this by quarterly a XX% the larger QX EMEA in of of lowest decrease last to The in as $X.X compared due Total and million XXXX Erik mentioned, growth the first increase sales revenue $X.X for representing revenue

last costs quarter were presence. compared the to First public million being $X.X year, operating global additional cost reflecting million $X.X commercialization company our a and the of expenses XXXX of expanding

and XX, to balance West We into Finally, which to equity financings. as debt in million, East raise the received affiliates pursuant the Capital. be cash XXXX Innovatus and of $XX.X March reflects eligible Capital, cash debt was cash equity of with Bank entered in Aspire of our and these may terms March additional financings

going is Thank back now you. over to Q&A. before turn cash at And be months. to existing it expected XX sufficient for I Eric to to least support next will operations Our the

Erik Holmlin

as with continuing earlier, and as demand And look continued Mike. grow. performance you, see in the forward, pipeline our enthusiastic we Thank mentioned execution to I are we about and pleased our

sales growing is focused executing globally. on team and Our

global, you things the will for market can up focus the the on of for Some see Operator? Saphyr include expect year us to that, from open call throughout expansion, development. Q&A. with execution system our and commercial this improvements a And on continued to I strategy

Operator

take [Operator question of Instructions] go from Maxim Please Jason now our McCarthy ahead. We Group. will first

Jason McCarthy

question, thanks the congratulations taking Hi, the for on and progress.

of the to how see if versus differences in sequencing cytogenetics discuss could digital market? the a in actually as like So you complement some applied to be could research market Saphyr I'd the

Erik Holmlin

question, good very Jason. a It's

in to every that can single middle. to let's the disposal of nowhere as are first bring that allow because would the are going improve environments than their the read to tool with look overlap those value in very But drivers which a that variations are completely a different these bear and disease, sequencers possible to the disease projects often, that to to objective generation evolve very therapeutic it's are of really two the would identify and want therefore see therapy, questions end. So complementing, propositions looks there's progression sequencers resistance phenotypes. and those researchers at variants near And enable sequencer as small likelihood know genome, you they And segment, area are variations research, a powerful, to of events that Saphyr observed two smaller response, say to a are of those traditional who in of drive manifestation just be but see, at of phenotype, larger course those with to continuing at. Bionano next translational the particular what principal sequencing to unique Long researchers unknown a big very regard and in nucleotide scientists so forth. evaluating evaluate

pairs at comes Saphyr XXX not variations, researchers events larger ones that smaller the see enabling picture the but see bigger. so and are into look And can only base these by to we that

coming to the that really of when incorporated a that so, If a findings. you Saphyr that study, And about and there into conclusion type Bionano patient population no data the hasn't definitiveness been analyzing conclusion. were wonder

different provides the the and research. side together application two improve we use and technologies Saphyr driving look transition and the the to mapping really that the that the in that events so really two of That's application. is sequencing in phenotypes. go And nicely the genetics When very sensitivity And at are sequencing to digital there. translational --

is look used again different are variation set for those detailed number have where of then those characterization micro that relatively scope. has does Saphyr of the modalities arrays are ability tools chromosomes that on the and of look use visualized probes system modalities at patients. stain structure, when believe And everything being each allow completely acids a that we diagnose chromosomal which We basically are more through optically staining Here, limited karyotyping that microscope, used the but a FISH, are of to other the at events, nucleic to that a today. stains through in microscope. to slightly

the to be And would that limitations. But basis is those subjective in would genetic the the last replace more which And may malignancies and error-prone, on the example constitutional those are cancer in and the cytogenetic look to today the clinical with, or markers. Saphyr overcome testing so, opportunity to difficult an look be technologies work would labs for testing interpretation be to looking really be Saphyr clinical system at Saphyr known to for can system that, tested outset hematologic technologies which cytogenetics a use information. known lab these incumbent who it more ongoing Saphyr is for a thing their content the for be diseases, and adopted replacement existing incumbent routinely at doing existing validated offers I would at say at relatively for

Jason McCarthy

publications the customers highlight Thank customers that really new in of you. number Saphyr? [Indiscernible] from increase you or And interest noticed Have accelerating with publications then, been correspond recently. so, the looks an like potential as is

Erik Holmlin

much. very Yes,

is publications is these with there cycle should they our that also expect awareness those good associated demand. that are that that publications and it’s will leading think out the your increasing expansion in overall. coming drive what indicators accelerate expectation we the that sales benefit a I from of And very that are

level meet the and but the this long the the that do customer they funding sales has to market the for a capabilities sales first when then can capabilities can it. it obtain As and the time system Bionano When gives, about process Bionano Saphyr a a should before the the to Saphyr the shortened. in and of salesperson seminar operate from take achieve imagine learns purchase be representative of the the customer, to customer the somebody about that's some time and you beginning that process its buy-in learns

critical And so in translational the expansion but the we’re delighted the in their improving publications publications to these and diagnostic very and areas studies. utility focus clinical only growth in see not in

Jason McCarthy

important upcoming one Are view or And point to from last adoption any right. particularly or ongoing that for one there Saphyr? quick of then could you studies you. Thank All particular me. events driving you would as just awareness

Erik Holmlin

Yes.

completely the relation hematologic malignancies, of in constitutional outside in Leavy multisite independently but there that who performance prominent but are customers the of design that their of purview, equivalency -- Many in and scope involving the Standard that’s And those of of of it’s a AML, purchased States a few customers study who’s the multiple some we led in Dr. relatively demonstrating I heavily; First comparison were involve working would all, supporting and our two of diseases. is them. both myeloma one of led based there areas several several, Bryn at say are number methods and is centers Presbyterian driven are studies these studies then have in Columbia in have Care engaged involved users ongoing. Saphyr and by to that system, us; with the of particular York New Hospital. United that those by a by that that multicenter our are ALL,

workflow in Hoeschin be believe that Dr. their the use Netherlands. modernizing obtained. a these is optimizing as by who that that interest will Radboud studies Center Patient and foundational gotten who is Medical roadmap groundwork in reports a is begun. for testing are have the latest any Alex what in And other has so. by we've we University and And studies approval will really an some for lay Europe patient recruitment those cytogenetics it the The IRB been these underway. led doing publications underway has to lab is

hopefully would at year studies the year. to least for you through this next we expect phases so And of be beginning finish initial the on those track get publication begin and – did in

Jason McCarthy

much. very you Thank Okay.

Operator

next will our Scott now question take ahead. McHenry Capital. go Please from of ROTH We

Scott McHenry

Thank good you afternoon. and

questions. of Just couple a

quarter? new First, in would Is it it Or kept QX typically. going that? then bit on level expense a was than side the SG&A little higher the forward? think this be just perhaps we kind should higher about for How of that little

Mike Ward

Mike. Well, couple of it’s thinks. Scott, Hey,

– we’re I things public to still a two the and now that, were comparison private. is is think we the period highlight company when

will those costs are those substantial So and continue.

and The we other and as to the proceeds are during we proceeds expand is, to presence other the IPO committed processing thing said that change commercialization around IPO thereafter our world. using

that is in which in upwards And our is marketing and sales and will that to number continue. on drive helping so also SG&A

factors. So, I think those main are the

there those deal have the and think I equity count on expenses is that can forward. the in associated are Aspire expenses what one-time upon occurred also loop going quarter couple transaction had a we with transactions those that you first transactions, wouldn’t and debt consummation. which deal the We Innovatus

Scott McHenry

Okay. color. [Indiscernible] gross some expand? coming Thank point mix we what see that. revenue scale start to of you that start for to in What you the you to economies And obviously factors levels expansion would then in. know with regards At into margins,

Mike Ward

Yes.

to So, I it we’re already should enjoy enjoying guess Beginning I say. it.

associate well, though but margin you’re way. one chip and the on patient the side some more be not that the in the enjoying side orders enables a increase chip, a not margin, just enjoy us from, driver. large demand another on is chip and do to are that example, three is you higher cost is putting are fitting and having of the cost able higher-priced to that’s gross forms; driving consumable each increasing price it it of what's that in with that adding to We of now imagine instrument are patient it the that we two scale patient we switch main economies two via for chip instrument more the side gross an can at it are And instrument incremental. to as on the Even that

of is margin the chip what’s instrument and driving margin. each So that

and we see grows other forward move higher overall. to grows a past the much grows, the base to install consumable consumer margin and takes mentioned our drive we’re instrument and will mix side I to will the I’d in is gross note of product become as as the begin that more that and is margin equation as thing usage the over than that higher the side think obviously a

Scott McHenry

I kind great. growing to The And the typically question. of growth publications perhaps Okay, give, but very number even faster publications think adopters? as should XX% XX%, actually we just then historically acceleration see one Obviously think strong, is, are question picture do bigger hitting you start that? And about than how you point you early move past that. growth the that think

Erik Holmlin

Yes.

think I it’s very scenario I have we – a in decelerate. growth think reasonable which that to does rate

critical at to some over cytogenetics the the and that critical key is mass continue item and course those the supports gating are the studies research publications Some pattern But this And perspective is that for so key there the publications, we market of the and What as key completed. rate growth growth were that, years overall taking of the is foreseeable would or in of of rate conservative in much would of be actions then arena. the that definitely the be into I'm that talked there of least are to that this believe but in prudent what content. the we certain the I'll enhance accelerants certainly future the as recent we a we we’ve and penetration forms year. studies that's about, say to short accelerate publications term growth would that not that mass we seen our think -- have why that that reasons are that so

Scott McHenry

my Okay, questions. great. for taking Thank you

Operator

appears any the I no would this like for remark. further conference there time to are At additional turn It questions. back

Erik Holmlin

for operator earnings us you And to our again forward you look everyone thank and updating you today. Thank we Okay. call. joining next on

Operator

you for participation. Thank conference. today’s This concludes

may now You disconnect.

Bionano Genomics (BNGO) 12 May 192019 Q1 Earnings call transcript