Earnings call transcript Q1 2023

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Operator

Good day and welcome to the Bionano Genomics First Quarter 2023 Earnings Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

would from turn Investor I to conference time, Holmes David Relations. this like the to over At Please go ahead.

David Holmes

conference call Thank you, CEO Stewart, first results CFO Genomics to of the Leading operator. Good joined afternoon quarter everyone. Bionano. He of XXXX by Erik Bionano. is Dr. today Welcome is Bionano call. Holmlin, the Chris financial

release on of release results for financial Investor market today, XXXX. copy of website. After A its the close found Bionano announcing issued can of page Relations the first the a quarter be press company’s the

over like the products, I plans, quarterly commercialization its made including initiatives, System, anticipated Saphyr force, and Saphyr of Bionano's revenue call the remind statements would this in forward-looking, the products, and and strategic the technologies, anticipated anticipated to results studies OGM, NXClinical of Saphyr milestones statements Software, of obtaining of reimbursement publicly from driving anticipated achievements in other of benefits System everyone that and maybe adoption such and and anticipated announced XXXX, and release expectations of outlook, XXXX benefits Compute, during of or certain about benefits milestones, advantages and regarding Bionano's Elevate improvements for publications these timing annual Bionano’s in advances current cost reduction Bionano’s and conference to OGM. announced publications savings

as and forward-looking that to no such are realized. with change. number statements press company expectations results Tuesday, risks, release factors Xth, Bionano are Actual be based no and from differ update there the in on identified SEC. assurances in Bionano’s and are statements available the to may to statements Bionano’s materially reports obligation forward-looking which these Such based some a current assumes May circumstances will the today, information results filed upon statements These contemplated of of can due statements be and

Accepted non-GAAP measures comparable Accounting in should and as conjunction consolidated by meaning US not in Principles, reported non-GAAP Bionano’s GAAP, substitute to and be Thees accordance have considered a GAAP company read meant In is reporting comprehensive with not in expense or measures standardized financial no operating financial supplement prepared accordance with the are results or the margin. addition, GAAP, prepared Generally isolation with be to statements and gross set prescribed principles. to or in any financial under accounting of are company’s rules GAAP non-GAAP

of non-GAAP non-GAAP operating non-GAAP margin gross included margin, expense page issued section both posted GAAP on the non-GAAP the expense gross earlier company’s margin company’s Investor of end Investors reconciliations the Relations and to and of be today, An replay available for also has on description been expense audio the today’s are website. conference of at operating the recording A will operating call which release company’s webpage. gross to and and webcast the GAAP earnings of

With that, I turn over call to now Erik. will the

Erik Holmlin

you, and everyone. Thank good David, afternoon,

we and market are would light to provide the business. to take what opportunity to also report a on this like We doing the results current are QX our pleased We environment. describe today full in of

QX a Revenue business. with largest $X.X quarter year-over-year a quarterly was consecutive the the of XXXX, basis. period from XXth for the growth with Starting for year-over-year and XX% the million, increase which increase represents same any revenue represents It on quarter the also ever.

systems XX installed The by to grew XXX. base Saphyr

systems systems quarter of the that in the quarter increase the the growth that installed over During And of over this represents XXXX in quarter year. we a at addition the of installed XX first QX, of shows first first the of XXXX. last significant XXX XX% base end XX

place a it of to for have January highlights XXXX. were increase Key a consecutive year-over-year compared the We to XX year-over-year a basis this increase to in year, posters. business event OGM now proud flow that there the and of XXX first over be XX a took cells from sales XX% sold cells drove represents XXXX, -- XXXX. we're combined XXX that scientific the quarters. Quarterly X,XXX is quarter flow for in quintessential so our and average sold Symposium on XX% cells presentations which daily welcomed XX flow quarter over X,XXX altogether the community, attendees grown And first Symposium, to in countries, in have QX consistently attendance the was included record

China's these Medical this China. labeling Our extraction Class products X OEM registration NMPA, into will vitro National for is market Technology, or for once China. Administration, reagent partner to Beijing Bionano's -- products Genome or in allows that BGPT use, BGPT Products registration it DNA and And obtained independent in labs can registering BGPT now Saphyr. Precision sold to Tier from hospitals in working clinical registered, on X be diagnostic kits

to application genetic genome XX care of new the XX in OGM XXXX. is the of part designed at the and clinical for end research, the becoming were XXXX peer-reviewed optical at mapping which the end of our of and from support XXX disease, to genome in the mapping in describing quarter of standard human-focused described at trial genome of at human testing. to this postnatal research grew publications -- including There genetic clinical total end year cumulative publication The the first XXXX publications and of XX from our -- optical

represents the in XXXX. this substantial first advancement quarter in So now here XX a

XXX up XXXX to end of been genomes Something number remarkable to else unique the number grew analyzed, from the that X,XXX in is that's in now X,XXX literature of have into count just XXXX the that at clinical the XXXX. written and put published of

field mapping. substantial So data regarding expansion in the in genome optical

outcome research and sales growth development, market XXXX with believe which academia scientific our of We a during and data see and clinical affairs this publications and and written we variety investments our trials of enable increasing in a their customers getting programs key especially support and and as XXXX, interact in our marketing analyzed, published consortia data. to and teams that papers and generate these to sponsored clinical

that are our believe proof genome use sales opportunities of indicator solutions. publications they future and to that. optical with number growing utility and based by of growth an We and of drive sales prospects engage provide Publications and and forward, publications extension these sources teams leading our mapping important its need impactful validation the commercial robustness of represents potential OGM acceptance

transforming balancing that for strategy, strategic our and which solutions these achieving with end-to-end our with effective Elevate is cost committed essential in We our expanding growth investments recognize, to though, We prioritizes remain long-term to R&D control key profitability. building cytogenetics mapping driving third-party medical key OGM, with while partnerships, genome together while same clinical strengthen our investing community and support accept and simultaneously research and optical time, the and the payers in we strategic financial to position. at leadership

conducted our million are that operations. we And a of strike the we five to over reduce four strategic today, help quarter the to balance, review an implementation by announcing designed expenditures next approximately quarters. initiative of To cash

able seeing to also reduction our with May initiative that includes, among now our do future reduced other a X, XXXX. to We're It because a of reduction supply of for risk cost chain. new affected includes that hires of includes This things, a plans the to safety stock remainder inventory. yesterday, It force that anticipated reduction we're XXXX. decrease in we

operational believe that reduce several and includes implementation planned controls previously will efficiencies spending. of other we It cost

invest continue expect which high-priority We ongoing launches. to adoption important as to optical in the as of our prioritize well support and mapping programs, product genome new

our milestones Elevate our to We base several publicly remain track These anticipated regulatory studies, clinical the structure. operating and our XXXX advancement of and previously meet of OGM despite planned include announced product expansion changes in on these developments. installed milestones

I'd to Chris of the Stewart, an turn the key milestones first Before quarter CFO, overview year, financials. you of discussing our like to call the with these Chris? the for for remainder over

Chris Stewart

growth, strong got the start Thanks of we continued XXXX in our of and revenue installed Erik. We with Saphyr base year-over-year a expansion Systems. steady off to

do that the believe to Erik are runway. making, progress are state don't the our reflects described and taking markets the the extend challenging we we While share current acknowledge steps prudent our we price capital of

Our primary our long-term value. which executing drive the strategic believe most against focus plan, will remains on shareholder we

line million. $X.X in to announced reflects quarter revenue of million a As of $X.X preannounced the previously range Erik -- year-over-year XXXX. is was and our million first mentioned, QX revenue $X.X in our with from increase This XX% of

due first the excludes for the to XX% Non-GAAP The was margin XX% $XXX,XXX XXXX. and in production nanochannel margin improvements compensation. was the margin came array increase gross in of gross gross non-GAAP our primarily nearly both quarter from first quarter GAAP yield. stock-based in at gross double XX%, margin

the operating launches, to million first quarter product quarter $XX.X and was $XX.X expense to of mainly compared headcount, $XX.X $XX.X GAAP of million R&D with expenses. to by for million Non-GAAP expenses increases was The was operating compared upcoming XXXX. our First driven related expense marketing million in increase first quarter the XXXX XXXX.

First quarter operating $X.X primarily consideration, million an expense to $X.X in acquisition and million in amortization of intangibles, Purigen. XXXX the of in of contingent increase compensation, fair non-GAAP related $XXX,XXX stock-based value estimated excludes the

equivalents, securities XXst, March Our available-for-sale was XXXX, cash, and cash of $XX.X as million.

path need. to We the in capital have to continue been identifying raising the will be we best and proactive

equity. options this X.X evaluating actively additional QX, to we -- $X.XX. ATM In along average working on $XX.X alongside million strategies price million at on shares capital facility, selling are issuing And raised our issuing including we an of non-dilutive raise year

maintaining XXXX of revenue full year range $XX our guidance are to the We million million. $XX in

$X.X be revenue $X.X range of in to expected million. QX Our million is the to

Erik Now, I'll turn it back wrap up. to to

Erik Holmlin

Thanks Chris.

have and We revenue adoption. accelerating planned continuing we three keys growth ahead, potentially they major quarter. this launches are Looking to product believe and

the supply of think, XXXX. been field a by increases fourfold first we'll able number half sites system, Saphyr by throughput and we expect reach in This Initial end The recall, the the we to current production in of will adopt the over XXXX. that in throughput. being of mapping be that the eventually, will system gate of XX-fold as the full Systems approximately has since enable And capacity is XXXX. customers used initially first to high will of throughput increase you which our in

alongside launch in the sapphire associated we and is with processing compute to collaboration significantly go The data OGM improves speed a with cost and analysis high-throughput reduces the sapphire. time product NVIDIA. of developed server secondary data. a second It's high-throughput It

which of for software, of in and data software malignancies constitutional the will VA A will commercial version the initially available is We blood version integrate the genome XXXX. on currently analysis hematologic release year be cancers. end a also of mapping focused genome by optical The full be or whole NxClinical. named our applications anticipate will

practice. in quarter, that medical through plan seeking and research changing studies use. on for I a FDA year, path trial clearance reimbursement to beyond for clinical remains and Continuing market we of the of OGM clinical remainder stages in we IRB want of the out for advancing the to not clearing will OGM to focus second our solid the support planning XXXX, We're of submit use capital this approval point in will do tumor be year. our significant to although clinical

studies pre principal our in means our which believe be are which market XXXX in near-term Our advancing the and later we opportunity. heme, stages, postnatal is will on biggest focus

of payers. Category for hematologic the Laboratories. for at a based local avoid code We will withdrawal submitting they're for assignment typically to did determination or reimbursed following Category coverage Now Bionano focus malignancies. OGM coverage since X a to to CPT through of the coverage This by we be not X test our of Medicare which LDT our possible an developed application decision code laboratory on plan application, reimbursement

that established Coverage that code codes in or a or labs level actually procedure. the and set apply for to is we are by not succeeding And now us. determination is getting the payers them paid. coding the given see what most determine bottleneck pricing reimbursement getting to policies of amount Individual

on determinations. focus And it to important so becomes broader coverage

FDA of FDA of we holding new clearance pre-submission the system, discussions mapping support the the preliminary in by the year. with of finally, end And anticipate

annual meeting proxy become of Before And letter recently closing, vote. published and I to would our our published of which to familiar our and on inform stockholders to with you all stockholders, June you remind to XX. proposals this recently are encouraging upcoming we like opportunity these to take

solutions development value questions. evidence long-term Overall, through bringing And with believe focus innovative genome Carmen, together cost sustainable analysis our creating a to ready customers, take on data generation, our Elevate can in stockholders. to strategy, delivering while with publications controls, we we're for that, commercial succeed and we execution,

Operator

Thank you. Please comes question Jeff [Operator with Instructions] Our from Ladenburg. first proceed. Cohen

Unidentified Analyst

taking Hi. This Destiny for Jeff. actually you is on Thank our for question.

a symposia I are hear how event with Good. think big let know guess is your this start you? to for one me event. it. Glad I I you.

of maybe So takeaways from the love was? If the feedback quick the taste you know to us that I as some could a event. give well of of would as some what

Chris Stewart

Yes.

So then Chaubey, genome richness by beginning that of that away data created this think we're mapping observed over the when has the Alka what represents say that really enthusiasm, is I it's of if of really the was look there. goes they year, taken the of blown an in event Officer, presented an throughout place days event community. and and event externally Chief are progress and our that participation people putting all they're by the at Medical incredible And you the level the optical that four a culmination it together, this

ever was And biggest the not this and disappoint. did certainly year

that us and given incredible posters presentations and and was talks I the with present were that XXX substantial think of posters number combined. were the blow number of away

So incredible. itself But what the it is volume content from the a really participation difference. was standpoint, makes and a

And bio-processing an to so entire we day QC. dedicated had sell

this area so us. new And a for is

samples therapeutic optical studies, the therapeutic the mapping so replacement and Our and cell genome a clinical of effects much of classifying the at but applications process. cocktails in therapeutic evaluating research the looking well through manufacturing gene not methods acting target actually as and again in as traditional in genomes for development stability editing, is cytogenetic as

in talks therapies. We attending this that's stem -- And cell this huge so topic. to forward a to had was dedicated conference totally be for this later leap on us. summer several a we'll dedicated Boston

area was is so symposium expect – an were where There two days And genome to dedicated two uptake optical mapping able of to we see showcase and it. to significant full oncology. this days

incredible. that we two many solid them these because that hematologic results And had presented in malignancies was talks are amount spanning in of the days. being and so together are we that talks And tumors had

aligned clinical And X,XXX that or the with so were published so it's XXXX. genomes in

for thing a that critical when at recognized being that's impact the data last other very genetics cell broader at that And now hematologic specifically would of throughout focusing so editing, malignancies, new stem these the I the the cell bioprocessing that is And Bionano communities are in that community, really cancer is on. say which or is, constitutional we're see important seeing -- the brand the is really one, this the looking which oncology part we community and of totality industry, are we look QC therapeutics presented, massive gene pharmaceutical and advanced we and

Unidentified Analyst

ask going to us to the and Wow, sites I about that's fascinating. Well, how then know somewhat get talking maybe a if able I there to were throughput system actually which more. to access, a be early you Are that you one be gate. you system? higher could said give you even access access, early are number? And are this determining yes, able would

Erik Holmlin

you process to of way that's And on it's And numbers the is the I determining need throughput. any Part of a introduction, this I think the market. And put feedback right there. about of did really in out the access, really like program sites the to high to based process it kind called for course, of but premature think from critical is of Yes, get it. early these that's course, it, the idea. early

really have to optical so targeting require it paces. familiarity with substantial put they volumes sites that sample that that its this we're them would So system throughput genome mapping have and through higher can

the head it be I conducted, out really nail we this think is very is we've to that with on you can be more development instrument. hit and the excited quarter. significant the could already what the And rolling for and But the we've tell that design demand I

Unidentified Analyst

in you nice and congrats so quarter. back I'll a on Thank much Awesome. queue jump

Erik Holmlin

Destiny. Thanks,

Operator

it Brisebois Thank moment Francois you. Please with comes our One Oppenheimer. proceed. the next question from line of

Unidentified Analyst

for Hi. taking This questions. is Dan on Thanks for Frank. our

Just in have Just are Could the happen first is the X codes coverage now? in code to more, your for regards line me. what right to attaining on to confidence X CPT for are. you you you view with focusing one view, since thoughts needs going worth your curious CPT down mentioned broadening CPT what your this in getting share

Erik Holmlin

that Well, disease available constructed there that is for be I around was way think, code a will application do And we that, important how it CPT and Dan, one for the it's ultimately genetic that's for that it to optical genome I X one happens. our mapping. for And oncology. Category suspect when be

that if we And is of other mapping they're It's to go. we meeting a utilization. these to are they all variety thought definitively that have might mapping not and -- evaluate volumes groups those optical the to but together. -- put criteria, the together AMA applications, room where of of criteria optical had genome believe more speculate genome What variety there that And a of objective. that come that criteria we in some

application Now an we're a make for manufacturer. CPT when we code, the

don't those so all And volumes. we know of

And so to the application that as our of limited. is part specify ability

forward is will they've much what genome PLA that and to applications volume in activity go utilization believe as easier for settings so into and done, And apply out and codes, those of bring labs mapping going make the is really to as more due we more through. public which and amount it optical the these already of

a specific or genes to of applying a called variety on I which own, are would the of analyzed basis. it's codes. their or what codes, a for say, using analysis are PLA set proprietary or regular gene existing processes, that and through either being laboratory are

be the that's but they'll CPT driving the familiar front methodology, is becomes the what value focus coverage. is what we're first, code is process see which of on, of utilization, and for when the that and code Medicare to of only with data payers so get and applications, in going important these And they not

CPT road. so important. system. mapping the are And adopting I will They're going systems available the out to them FDA important be FDA when cleared eventually They're down of that certainly think codes versions cleared, get be are labs to going are there using and

of see unlocking is focus now we on plenty coding Our because coverage right happening.

Unidentified Analyst

That's helpful. the are? the of year? wondering you publications with And regarding What what bodies the next guideline terms terms OGM malignancy with additional Like steps? in of steps came that of publication need in three conversations next studies hematological do them. starting first are the out make to I’m the

Erik Holmlin

No, it's a great question.

I evolve something basic routinely into that's used mapping genome think tool optical the regularly and that from translational a research to strategy in research.

I we're what think the data now that the critical to recommendations associated is folks are that becomes recommended something field key the part massive of that's with of of care into with seeing eventually out, call societies. what medical gets standard getting that lot it a work a data. And these who to involves I teams in strategy component of make

of these earlier Cancer some came last if about a but So publications really Anderson look Center. amazing summer we from the of coming others. that quarter out publication this are have was three There you that at that MD talked are we sites, out, European

an States. set of National affiliation Health several have here, United the Organization, with Network World All or And as agencies those in authors guidelines. the agencies have guideline Comprehensive these of Cancer such setting those these authors affiliations NCCN

by leaders accelerating opinion working with the a process. key who of already are affiliated there, And it's way so

Unidentified Analyst

going those in hires were in the board? a finally any the anticipated or be just for specific makes of remainder to across department That decrease me, hires one quick for And sense. as new Okay. the XXXX,

Erik Holmlin

making on really that it's hiring sure critical think team, prudent think the expanding I it's to basis. it’d just about we're the need be wherever and a effort I -- an

from it's hitting department really specific the but reduction a we've singled goals here standpoint isn't process milestones hit staying expense to or which there team, an And reiterated our is track a on of that So out. today.

Unidentified Analyst

question. taking Great. Thanks my for

Erik Holmlin

You’re welcome.

Operator

with you. Our next from go comes of question Thank [Operator Instructions] Please Michael Okunewitch Group. the line ahead. Maxim

Michael Okunewitch

on quarter. question for Thank the congrats taking guys. Hey, you my and

and think to I that recently most OGM talk And improvements the start as made saw the I just with I'd guys about process out workflow. to and guess step. streamlining bottlenecks have currently like workflow for a analysis and we talk about So at you all and you're what bit end-to-end working you view users to currently the on? what you ACR main streamline OGM Can the with via optimize as further end efforts

Erik Holmlin

And great a that impressive. Michael. acknowledge I thank did was who want name pronouncing So you, job to Carmen, of your

if AACR it. you So along. challenging you area and I particular, a cancer research at really to on in there's really elements two build appreciate focus is in where starting to an And momentum. following calling cancer think we're research, look with I

And a data looking really Outside really the process. what present of variants and but mapping when to and doing of it's a very of set, is what lot in the And utilization somebody that those itself, that can guideline-driven, out the process not in be research manual different of reasons a analysis are analysis. list that called guidelines. the tedious one is variants data sample, comparing this simply called, data certainly process it's is specific the complicated to these goes at analyze of are is it's in cancer calls the that a so

hours we've laboratories. and It developed our clinical to in I can a this our own in of And because and part part do LDT that Bionano as take it of as we studies know laboratories hours do.

new that use work and software, our process. our beginning so which And to with, is team automates

guidelines something We're talking able then automated still by want save it's decides panels in so fashion but through that how here, they're these about the and user-driven. and research they to time. varied are driven a calls user sift so And product the construct that's much to an

to tend in going a flow people the the only time answer. doing process research, this in cancer cost savings It's savings the who from sample matter of but expensive it's most to be people are because analysis not

So bottleneck. data analysis is a huge

is our extremely analysis optical about sequencing. compared is unique for existing to that's next-generation mapping something streamlined software even And genome data

to optical bioinformatics FISH making team fluorescence situ whole karyotyping, or the the really data. genome really micro all hear hybridization comparable that that We that process mapping, analyze we're same is to time rates teams labs it that in the have it's today, with it's to and exists just the And NGS routine have adopt fast.

it is analysis we're a bottleneck, first diseases then in and later constitutional data quarter year. via So Malignancies, with Hematologic in genetic addressing this this and

a is isolation by then that was and a and technology that we commercialized the isotacopheresis, for last bottleneck other something sell marrow around November. acids nucleic paraffin-embedded reagents developing DNA isolation and invented and protocol, optical And currently for The work Purigen addressing a mapping is we're starting company that that's product Purigen with acquired from genome will which of tissues, formalin-fixed including we're cartridge with we bone samples. blood and

So with kind cancer. able it applications in of will be work to and genetic our existing disease

genome And front end, so a which is really mapping the just the process optical challenging end, which because unique is guideline-driven. we're really back it's for streamlining

they say volume but -- substantial your XX% throughput. addresses -- whereas a global somewhere So great Saphyr ultra-high number and lab, those total portion XX% that between the processing smaller I they of make volume, are it depends a throughput basis, a for that labs, laboratories the up And that of throughput of on and the then a process of need we on number would labs about right? much XX% laboratories, of estimate

is high-throughput need. mapper so going And to this that address new

robust And market more in it overall the making demanding. really is end-to-end And significant streamlined, the I that's automated, what so elevating we're fast. substantially think ways, and process

Michael Okunewitch

one just get I'll in hop queue. to All really for answer. right. like and Yes. then more Thank the I'd you back that comprehensive

understand just a of coming five more the on the And those better is quarters you provide measures. reduction, basis, from? just recurring terms four me or annualized just million, bit granularity Could to that on are an is those $XX help over expenses that cost are in So that. where

Chris Stewart

Sure.

operating different cash both half three be So down of goods reduction inventory savings And areas. And recurring. year through isn't from across again, inventory the QX. and expense, to in in We an cost it's the of OpEx reduction. second the targeting expect we're sold do those

investments increase and be changes, we our other our until such as financial The time can position appropriate. again reductions as will recurring

Michael Okunewitch

you Thank quarter. in And right. once again, All very much. progress the

Erik Holmlin

Thanks, Michael

Chris Stewart

Thanks

Operator

will Thank this for you. hand And no see in Holmlin questions final to back I Erik I further comments. session. it

Erik Holmlin

to making you, participating in progress Well, course. Thank that much. look the you with you updating I quarter along And thank want here following today. and Carmen, the all we second for very great. and Thank forward we're everybody in of due to

Bionano Genomics (BNGO) 9 May 232023 Q1 Earnings call transcript