BNGO - Earnings call 3 2023 | Bionano Genomics, Inc.

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Operator

Good day, and welcome to the Bionano Third Quarter 2023 Earnings Conference Call. Today's conference is being recorded.At this time, I would like to turn the conference over to David Holmes from Investor Relations. Please go ahead.

David Holmes

Thank you, operator, and good afternoon, everyone. Welcome to the Bionano Third Quarter 2023 Financial Results Conference Call. is today call the Dr. Leading of Erik Holmlin, CEO Bionano. of joined Gulsen CFO by Kama, Bionano. He's today, press After financial issued market Bionano closed a the quarter results third release of XXXX. for its announcing on in driving the and can the of results website.I to obtaining made based certain like statements everyone would in Relations realized. study call can during OGM.Such OGM, copy A reduction announced the this these contemplated company's advances be clearance found product the benefits conference there Bionano's page initiatives, and publicly cost the and release and of be studies that statements in on remind expectations, Investor no these adoption may are publications from and be Bionano's annual assurances those profitability, for the commercialization and outlook, FDA be announced that of force and cash associated in results and anticipated publications revenue other about plans, forward-looking quarterly statements benefits pillars and including regarding savings anticipated and of forward-looking, timings expectations will current milestones, reimbursement of strategic benefits statements and runway, risks, due identified Bionano's Actual materially differ from factors such with the which in filed reports of a results number of statements and Bionano's press may and some are to release SEC. as X, These reported forward-looking statements statements addition, Bionano's the change.In and XXXX, November assumes accordance to on company obligation in information today, are U.S. financial update circumstances based to Bionano with no to available results supplement non-GAAP gross company GAAP, principles, expense operating and or margin. accounting accepted reporting the generally non-GAAP is should accounting isolation company's comparable or GAAP of and meant or conjunction not are for be by prepared statements any be no not prescribed as measures, rules in meaning consolidated prepared with financial read under substitute a the accordance GAAP, in standardized measures in are considered set with GAAP comprehensive financial non-GAAP have principles. These to at expense operating on issued margin gross non-GAAP Relations of to page non-GAAP reconciliations Investor and website. earlier the non-GAAP gross company's the expense company's of operating margin posted and expense earnings has of to the both non-GAAP are GAAP been the and end description GAAP identified gross which operating A of today, margin release today's be on recording Investor I'd will and like webcast available page.And call turn over conference online with also Relations the to replay An for to company's the call Erik. audio that,

Robert Holmlin

We you, everyone. accomplished QX, a to in we the Thank look and and good progress in David, lot discussing forward detail. afternoon,

of which you today the on significant Gulsen profitability extend the the in our results the to was took walking part to CFO, leadership to for to steps company we path the runway, steps of and helps financial our Kama financial cash which appointment by profitability. the Importantly, The expenses managing plan our XX, initial going operational focus together call how reduce potential and in operating facilitated Gulsen? effective expenses open of with costs. and driving the is quarter will to shorten explaining streamlined change XXXX.Gulsen the role of September by through toward in reduce is some

Gulsen Kama

and $X.X second on original earnings third $X.X growth to Bionano over systems year-over-year our XXXX, in We exceeded the our our opportunities the earnings be prerelease.The to XX we OGM the at in represents the XXX base of sold XXXX, and disciplined an flowcells XXXX. XXX to installed the systems increase board flowcells that, on me expand was million, to grew and effort we during financially in be QX, to during pleased million I'm with increase gross the XX% for QX the increase XX% year-over-year period seize a as a to goal, which X,XXX of XX% of margin X,XXX have the utilization QX year. world. of QX Erik. compared the Saphyr help line XXXX. adoption represents of of was for $X.X same quarter quarter that to XX% which achieve Thanks, with compared was end margin the base results And over the let and us.With our third share sold join To around is quarter of XXXX last call at provided XX% the ahead million XX% representing you. installed of guidance to the in quarter last Revenue quarter year.GAAP to same gross non-GAAP same period XX% which in

million excludes non-GAAP quarter Third $X.X margin XXXX in compensation. stock-based gross

our XXXX, of of implemented our raised million per net marketing year.We operating press million same million of and quarter the comprised proceeds XXXX, ATM $XX.X million $XX.X in facility, R&D charge million in X.XX $X.X impairment mainly of QX was million to share. to one-time operating split-adjusted of expense Third result related the described third release, expenses shares selling as launches. XXXX. of million an average a increase expense revaluation a in on headcount, at a GAAP down this $XX.X in as compared headcount $XX.X of related product quarter charges million to $XXX $XX.X $XX.X to compared mainly driven higher QX to was by $X.XX period goodwill basis The price in operating on in expense went compared million XXXX.Non-GAAP Non-GAAP which excludes GAAP in was XXXX QX May in $XX reductions million in

expect quarter and savings end also XX, equivalents $XX reduce with starting see completion reduction continuation announced offering headcount. facility we to approximately realized operations cost together cost additional to runway. the May, of we in company and $XX costs Our annual included initiatives want as taken reductions reduction cost of the in have our XXXX.We of announced September concurrent in and registered discuss These million of implemented we in expand cost May force to initiated in and the savings an was to spending $XX.X reductions from securities steps million cash, October cash discretionary streamline X, On since and When cash the and to the steps private I an unrelated of the placement. XXXX. million.Now force, of to the available-for-sale XXXX savings taken the

Our extension objective found runway balance good was achieving objectives in to the provide enough financing financing.Back both the this a a we you, obtain this also capital to impact. cash to believe, meaningful managing while with Erik. dilutive We in through

Robert Holmlin

just and make pillars. a see cytogenetic as detection, with our of it's more structural call earnings aboard. as and like manner and important goals robust X we tremendous efficiently of clear techniques cell would of expeditious traditional forward, impact for we growth call. will moving alternative one, strategies efficient pillars. on and to making adoption and Union and progress Number require strategy Gulsen, for these and your navigate the ELEVATE! now need strategy powerful welcome talks, based your as data clearances. latest on shorten pleased on potential value-based in health moving accelerate reimbursement than whole be profitability. analysis outcomes hematologic from was and mentions States optical reporting an rare end-to-end strategic for medical European Thanks, cytogenetics the Genetics congratulations reach to Meeting and OGM We of OGM to regulatory with the in Annual adoption everyone and that and addressing to labs showing of now pillars. path economic health traditional result the We're by American global operate publications OGM believe widely team skills the sets were those for obtain posters, to first a genome clinical researchers, number three, Bionano.I in returned of focused the And on Great as large have United OGM. and easier be Washington, meet now great ELEVATE! Number into We thousands D.C. health and about energy as human alternative established recognized operational therapy on clinical achieving to overwhelming Society workflow utilization Human I to of Based an efficiency on malignancies, ever number expand a X directors the variance. along to in the in of two, have my talk genetics. analysis to and our gene to profitability.We're When value society have that the straightforward. I've and a to lab mapping, OGM advances important the inclusion the plan forward to of phase OGM to first economics.Our four, need of revenue clearances is the is going drive based for results as such Number guidelines discuss physicians in on diseases that will possible.Therefore, forward. path of

optical ability to strong the component with mapping began newly integrating and availability to system Stratys Automating workflow, of in of base to systems to released expected July. reporting OGM of for stages of ramp the Stratys in of in Full various testing quarter, growth as a begun. the VIA is our saw important based an program heme in Saphyr software is VIA are of the VIA early in at the now adoption our utilization expectation. component and sample workflow, production. for laboratories end as exceeded visualization, this OGM the the revenue now access commercial first to early addition our Installations really Stratys on is installation of response end flowcells and front critical In Many the back of end. the data.The XXXX genome we growth systems preparation in for has end-to-end are field, streamlining have and sold. interpretation and the increases installed of

Augusta Long driving automate systems of the workflow Our capability development we're going for plans ASHG year.Hamilton, reimbursement received amazing perform of higher of well, really STAR and important DNA throughput Stratys String isolation CMS process of field for step and the system on OGM. to track the Genomics fill as saw Praxis well, molecular through work of their labs, for for PLA market.We of or this University at DNA Automating X their they OGM to end Ionic malignancy the showing data the the around as this testing, presented an system the tests analysis isolating for labeling DNA maximum which $X,XXX.XX progress much hematologic to from possible as pre-commercial also approval for their with version is V to codes CMS. based in the ITP or ultra-high conference utilization OGM weight proprietary gap have OGM for on of brings offers also that is a after that by to progressing discussed adapt the isotachophoresis

third-party up QX number featuring influence OGM The large to the and average societies study. guidelines. the of including of on Regarding required numbers the highlight payers to data quarter XX% from of field critical from XXXX, I'd in inclusion of in the the XXXX. increasingly evaluating into saw XXX% OGM OGM of a number XX a this total growth human-focused publications.Overall, they're impact research. publications of the grew XXXX XXXX utility mass per With terrific their remarkable in were to medical of that's diseases which as demonstrates clinical we publications rare publications, QX to samples like

the on installing XXX at strategic XXXX.Looking mapping the Now positive into to assay meet Stratys we've milestones half remain initial end goal by systems run of our formally of the and system, that genome ahead around for received FDA FDA-cleared feedback outlined be with we XXXX. future and the to have optical previously XXXX. will engaged on we've track also continue of second process We a

malignancy of look go the of and please for the in and ahead associated questions. to which originally to million provided $XX remain Our revenue. on want reiterate updating QX toward guidance, at milestones.Operator, line to you outset remaining year heme full forward end XXXX year.And year the regarding the open of top for the I XXXX studies our planned on prenatal milestones and this postnatal the meet finally, our revenue progress the We to million $XX we line track call

Operator

question, our the from For first Instructions] [Operator from Maxim Group. it line of Jason comes McCarthy

Michael Okunewitch

This the Okunewitch is Jason. Michael line on for

is on to see to bit So just system? that? What like do on gaining the of a approval give pathway clarity for of to more need what you assay -- little the Stratys for I guess FDA I'd could to data you sort the kick off, more if produce

Robert Holmlin

Yes.

won't we in we'll engagements FDA agree specific So remains that XXXX. establish methodologies. trial in process And in with small that's currently to ongoing of XXXX. fairly we'll likely as support the and software hope the to with right a connection support of ongoing one FDA.So clearance the that premarket we position, approval conduct clinical development get fairly series those clinical study follow are but but that clinical seeking later integrated XXX(k) certain can do paths involves in the documentation are be short substantial product, system. there and be now equivalents But to of study. decide the period, clearance that convinced FDA, upon, that be trial the And to later existing We're by convinced discourse in FDA around the path product followed there that around the a now. reasonably to to to with is The discussions we the conducted the would something trial a within proper and relatively although we're that with a we is it of need standard-of-care be then part be And other engaged sometime the assay we're choose. we and would development required, aspects

Michael Okunewitch

or All provide the financing could forward. in more on the in to until bit you the on bit to do I going amount November about redemption a interest color time of amount how and and cash your would works see like full and of prorated trying amount to elapsed that maturity? the particular, utilized context balance the then redemptions right. a that understand that was of just the X. you explain then, And if feature Could on And how include is looks follow-up redeemed the more

Robert Holmlin

the it, So as with The of is conditions. overall, financing portion which and other unrestricted down regard upon then I released deal a of is you and portion to portion the convertible debt unrestricted is it which paying think, portion a restricted know, there's initial meeting restricted.

does retiring the charges top redemption and so the that and financing And feature process through restricted the on portion includes interest redemption that. initial of the retirement the include of

Michael Okunewitch

in last right. And the queue. hop one just then back All one, I'll

Regarding rate cost the that compare to and how running of the test? the materials Augusta that that gap fill got, actual does for practice that you got

Robert Holmlin

have codes reads are these those been that So by and obtained labs.

costs be don't know, margin. gap and include and process And burden a submitted what They fair the so the actually we right? is standard But fill. would application the drove considered to fully their

rate. good have So a I suspect that they margin at that

Michael Okunewitch

Congrats right. quarter. progress All this the on

Operator

from And line the Sung Scotiabank. next of for Nam the it from comes Ji question,

Sung Ji Nam

year full you're Maybe, buildup kind seeing of love on system including Stratys, expectations let's into see tracking significant there. the getting here, kicking users, of you're off next -- you then, with kind with in the of from the access would And your expect what type to hear launch? do backlog of if commercial any feedback heading for early line utilizations

Robert Holmlin

concrete it's So, bit feedback a early have little users. to from

on site. that it's it qualify us and for So, even the some brand installations just instrument, given begun, a time new takes to it have

process tell bringing that they really a about use they that So is on identified can though are is that in to throughput of focused Stratys that I indicate them that on offers. have the you need that ongoing. that labs product cases And higher variety what

anecdotally early so, a and respects believe I confidently of that let's that and regard program. it our we're the have it response sort say field.With Stratys And tremendous that exceeds the to -- delivers. to out of to high, want only I towards many XXXX, access excitement Stratys And into backlog to is will, we've expectations excited had think hope a that in course, and we, very

is Stratys. doing commercial a we're what that into a of event environment is of requests Saphyr we number product, that. have exceeded in Stratys.And more which Saphyr part would products, have of the that In And transition early traverse. model is the systems industry be that this and adopting system, we has leadership and between in XX, number especially X this commercial available, that that a the team tricky to have to we sort now team, labs of full hand interested an believe their asked paths managing the access quite of those So, raised of where be a one still they the one

our adopting customers the about are Stratys. And Saphyr so, sure system excited and for optical that's that's we're principal best they making genome whether them, is get that or mapping, focus

based And that we on guidance transition and the smoothly. so far, think provided, we've that navigating that we are

Sung Ji Nam

penetration if hematological curious customers Great. just research the over That's to you super currently just that, you And VIA then expect helpful. expect of kind of hematological launch, curious doing kind a kind from to malignancies just the -- standpoint. on of all on what software convert

Robert Holmlin

Yes.

So, conversion that timing there's mean the be one is majority, will using cases to revalidated substantially I on lab think their that a platform. because to of labs on dependent I but software vast of progress convert. would they're it, little the The do substantially bit all, want depending be to new to going doesn't expect it's a the all reasonable the how in some need that

the will everybody menu perhaps bringing expectation align they on other items or pick us, that that time is in the with so, But would running. for revalidation be And and applications adopts. other that right point they

that, will believe And the so, yes, be case. we that

Sung Ji Nam

And OEM a traction see China, lot your great me, it. to customers then lastly of Got on there. gaining from

macro cap, headwind those Just kind environment the of companies curious, the of given China. and a increasing kind seeing lot in the environment, of larger

of year of just from your Just love standpoint, to would are China? curious, what expectations perspective of your heading next kind in kind Bionano I kind hear into

Robert Holmlin

we We've reiterated been guidance, includes with that good you interest to we're reports in guidance can well. What companies China. space. -- other progressing watching sales that a and the it's and year the question full of Yes, is great tell I

cause that clear research it's us but headwinds off continue that our genome that get come of spending applications applications, us China.And to we're for very numbers, in so, is clinical we're are research, that there research. very, those that basic some optical mapping as there would academic of to for going to and opposed not close And to rationalizations has seen to the seeing pressure progress thinking on one used healthcare

comfortable why guidance. And that's we so were reiterating

revenue to of we're we're the China there's others mindful that a are and facing quarter. headwinds aspect mix. going through this whole course, the sort of carefully global Of But

Operator

Jeffrey of Thalmann. next the for it Ladenburg from question, our And line from comes Cohen

Jeffrey Cohen

from questions few a So, our end.

firstly, So, you purchase pre-use placed the what as tell or seeing Could more becoming or any right front sales, you that is and recent newer far Saphyr? or talk maybe quarters? far us more leases, could you're less that from you systems been for have about as arrangements as an flexibility a have the on of sales as obstacle

Robert Holmlin

go-to-market the So, systems do for access the Saphyr mirrors we many model in respects what early system. the for

is And so, And in the we're program there's But purchase higher. early. a flexible the model. pricing what the on purchase distribution, and again, rental the seeing terms of it's and

So probably distribution seeing see system. terms the statistical for significance in we what really of Saphyr well the it's the of is the we're established. what to comparable not observations that is But

rental and purchase. some some So

Jeffrey Cohen

guess other? perhaps of at Got line reduction of you reduction you where off see the may Okay. those walk $XX than a as for I a far to savings expected about 'XX? it. R&D. in And commentary I item you're then, more see talking outline some mean, Gulsen, you're some and which as and how going through perhaps SG&A XX% savings we're can for the looking the Could us it, us pronounced perhaps million of

Gulsen Kama

is actually headcount as a sold And the some it is $XX actually So, it big said, small, of pre-release, cost in goods from small. we of the relatively and savings, million most And it was you in talked of SG&A. of it our R&D in the announced -- part savings, area, coming terms of the is reductions. proportionally about

back savings see to area.Now, So -- big that can in through with you achieve looked on that did the and have every from portion a can P&L combined we we the will the of line where item we ones come else May, savings.

was untouched. think but don't anything varies, it there's So, that I

the majority for is So from the exact reduction. give you to hard headcount but me guidance, certainly

Jeffrey Cohen

us, then a as and sense And it. lastly pro well. cash us give Got Okay. see Q the shares just forma for hit of please? you could I

Robert Holmlin

described refer it's X/XX, you Q. think I And we best think to cover of Yes, which if the the cash I million. of as was balance the $XX.X

Operator

Frank for of your question, And the line from next Oppenheimer. comes Instructions] it [Operator from Brisebois

Daniel Hultberg

Dan This Frank. for is on

in who is of Just they I they program, XX you also those early about or a know too all terms users also, to already are field? just users quick Stratys. regarding XX were mentioned early the one it's not? are systems And currently, talk that the feedback, all in out are currently users, of but Saphyr access

Robert Holmlin

that's that a production in So, can field, say is our all what based It's on issue. I out are timeline. not we XX just -- demand not and the

that that's when it's the and they're new folks segment what unable users, the so, really their of hands when brings new produce out. to that the product raising see labs. now, there optical in it have excited board they start limitations coming and that industry, OGM to this of mapping adopt volume was Stratys With go genome about them, to connection to plans Stratys the because them, Saphyr component it that So, -- for and sort we within a current to I a we who what actually actually value implement the utilization -- see that developed address the they is and And throughput their is market that adopt think but little to higher the majority customers, really Stratys we to of has.And on of of customers. kind introduced bit of regard the a of important, good. unique folks the a we We cycle composition are is this that and are

developed of yet think a product we that, indicates that segment So, right for that penetrating. I not the market the we're that

currently to who Stratys new But the really new will customers, the sidelines. we conversion Saphyr see to think of I Stratys on bring is are time, users over purpose systems. the Now, in of

Daniel Hultberg

Okay. me. And for one a last

the time rare give to, sense also, from Would Human an feedback that, conference call started to You you're notable the labs' there ago? say a area highlighting Genetics that adoption where year the that you applications, is increase attended. this Could increase a a say in us versus seeing of say, the there? And particular you you OGM that in diseases presentations publications, around? related Any clinical included you noticing that color OGM are any basic research? increased compared

Robert Holmlin

Yes.

of from research, towards one genome ASHG last if lot year orientation conferences heavy say So, really the the conversation in this translational but of we that be talking year, it to we are our well.And ASHG all of that regular research. of I've what premier around I And clinical genetic a the around from the would the as clinical those there. presence in understanding there of based think in year there's translational anecdotal meetings, clinical is is of techniques that of somewhat really research this is a world. environment I has time differentiated are is mapping It that we're course, compare every others of takes the who my that diseases. place folks fall. the The that observations, optical observations of but are in kinds intended And reviewed throughout are folks about -- and to on is here observation this used that

happens a of reveal the because where research really standard in tested the a about in be patient care didn't and may the half workflow any program enrolled useful way. subsequently by time, a Now information. gets that That

going complex things that's to optical genome kind example disorders. is was other came poorly genome in important? meeting So of research that Therapeutic spina that's on understanding. on.The defects, the kind tube explain what's amazing an that really And incredible And disorders. use bifida these diseases mapping unlocking other new optical mapping neural is and Why is are that up is to like our that's understood. genetics applications. incredibly of the research very of going An

some as disorders be basis abundance these new treatment that of program, So, the developed But of information.And posters, mapping Bionano on presentations, this regular see types of in featured amazingly so, very the can we of of organized. sessions them talks, of prominently. we these an optical genome part

observation community, really that year ago, our is to with if was compare you optical that mapping just is regard And to of it genome that part the So, mainstream. beginning. a

ago, was that to a important there there regular was were a that new.And is think something dedicated on of views. industry-wide last it in the genome are I'll number was session optical intended publications program that but mapping, comment represent to year that really the a I thing

with methods. teams a when like genome mapping, was out lab this that that discuss and start scientists reason optical entire of talk commercial we're does starting to they of after goes not by of a to genome mapping the understand that, out meeting, genome fit look those & all which I genetics doing.And then, tone alongside to should the leap course, different the Thompson use it?" optical covers for you and about answers step talk lab of all written before around optical is the us. but that, the it important of optical the is, questions genome and publication that was publications, in rather huge is says, forward kind awareness tools.So manual, Thompson to the we my able time that ninth these so It's the is them. I'm mapping." So meet edition, was of A what about, that genomics that significant review many, for mapping there researchers do year the other we came all get to when ago they inclusion incredibly the edition, the the were the you is advancement that earlier in this out Bionano year, a here mapping and they're something into the that optical "Hi, at genome a really around question and who only algorithms really spell preeminent right would came extensive and And publications set what of an But And publication "Where of many community. now to the forward that

So, thanks me about talk for to a it. giving chance

Operator

And further you. questions conference Erik there closing time. to the back remarks. now for at this no CEO, are Thank like Holmlin, I to would turn

Robert Holmlin

I to today. the full with then this and finish here our the We're share the Kyle. everyone fourth and Thanks, year you joining after of excited quarter appreciate year end results call. out

today. very you thank joining much So, for

Operator

for This concludes participating. today's you conference call. Thank

disconnect. now may You

Bionano Genomics (BNGO) 8 Nov 232023 Q3 Earnings call transcript