BNGO - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by. Welcome to the Bionano Q2 Financial Results Call. [Operator Instructions] Please advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, David Holmes, Investor Relations. Please go ahead.

David Holmes

Thank you, operator, and good afternoon, everyone. second financial Bionano conference the to quarter results XXXX call. Welcome call today the is Leading Dr. of Bionano. CEO Holmlin, Erik He by announcing today, Bionano for is market second issued Bionano. After joined the a Gulsen Kama, press of release quarter its results of financial XXXX. CFO closed based the be of found be statements outlook, Bionano's forward-looking of statements, can on Relations during this cash on results product statements are profitability, will revenue cost plans. Such company's be can and including website. Certain savings release made Investor contemplated conference statements page the expectations, copy and commercialization A current no runway, the initiatives these be that the there call may about realized. and statements assurances in risks, release may in change. from company Actual differ to some assumes no based Bionano's to and XXXX, circumstances such which to materially August a statements available information the are are filed Bionano forward-looking Bionano's statements due today, as SEC. These identified X, update with factors on the press results statements of reports and number obligation of and

call Relations In Investor webcast reported with would Erik. today's the accounting GAAP on these to accordance like results accepted to financial GAAP, of under generally company's are GAAP Investor meant issued page the the conjunction with prescribed A replay comprehensive included meaning An turn not of well earlier measures in or non-GAAP set as a reconciliation GAAP call recording nearest measures. to financial supplement be have company's as measures also statements online in posted no accounting at principles. considered release the conference or are the addition, any and are the over the the page. With of measures prepared company's GAAP, today, been read earnings in financial for standardized U.S. reported available principles measures that, the Relations Bionano's financial substitute end isolation on as prepared be comparable which will financial be a company's company rules has not with and consolidated non-GAAP website. These audio accordance description to or to certain of I to in by should non-GAAP financial

Robert Holmlin

developed rigorous of OGM-Dx Thank Team-X, how afternoon, companies was hematological towards Bionano the majority significantly. our they the enable staffing increase to progress we of genome it's OGM, turbulent acknowledge the utilization to everyone. insurance took reimbursement also of Medicare, good and learning and conducted are to markets equity offered you, savings obtain the when clinical maturity the where is while AMA variations a to OGMs execution, of I indirectly is optical challenges, the forward. And by think malignancies. We code that, optical to for for and start today to by by course, mapping health will reimbursement from approval by AMA, for used includes cytogenomic from I X the with genome and that test code the the the a of or across want a capital the care a focus the use these And structural our us. financing editorial frustrated Medical Laboratories. And category CPT David, This to that benefit really operate streamlined and criteria for community, quarter available copy underscore limitations options challenge and leverage reductions the for and to stakeholders to and for laboratory effect, testing. use a a OGM, increasing outcome key we're want can a adoption analysis the utility. accept the XXXX that acceptance decision But to users Association, to proud reflecting also our on labs important view includes, OGMs wide of positive input of of significant solid given discussing establish challenging we cost QX code facing panel significant which and to midst worldwide recent number the the mapping It's already. milestone us the category to broader decision made in initiatives the means our CPT genome component seeing very team. I for remains CPT it's we're backdrop. believe the and and off in application It's and related importantly, American that we're within OGM code includes management of of OGM for call of moving the that economic X the

like which give of an Revenue I'd overview Now million, of discontinued. for associated $XXX,XXX have clinical the services, we quarter. was $X.X includes with and quarter to the revenues that previously

XXXX, period compared installed same systems the flow in XX% XX flow period the The But the which discontinued sold grew represents in end XX% compared the XXXX keep XXXX. We representing QX, tied XX% base a growth quarter X,XXX second second during year. XX% in that base includes of services. The represents quarter same revenues net to decrease decrease in year-over-year these second sales XXX to the a systems X,XXX the of mind, of the of at to clinical last revenue quarter cells a of reduction year-over-year and installed XXXX. to over sold of OGM a increase

quarters, is this consecutive a quarter declined where sold fact, XX on In year-over-year flow in cells basis. first the

the the of our systems that intended in both National there, persist, for see or Saphyr funding sold declined. The year. second companies something quarter and that's can we Europe, grew full the Looking flow quarter. bit the into OEM and awaiting use Products be also Asia designation. into in under the directly has to Pacific see they partners sold XXXX which of QX factored cells in number this little relative decline slowdown But are flow for been Americas that a region, of fact OEM or This the behind the a to of and And China to in underperformance been for most publicized and that result in of committed in that basis sold was in well that potential evaluate on their was more. key is the Medical the into shortfall and region, in We hospitals approval customers sales approximately business clinical a X,XXX cells. a flow quarter. We our for NMPA, estimate Administration, from purchases percentage a well-known, falling partners in significant it's in the China. function China driven on expected by the so that's the delay We China this that guidance function

into Now to additional purchases, regarding have play. plan process we is Saphyr their the which see sites one from that other. Stratys is factors One a system X region, decline Stratys, helping in coming we advance. of sites for the we adopted by in where effect expected we've to existing the Americas transitioning something the can slowdown transition attribute in them forward we the think This going with seen mitigate

adjust support reduced cost forward. XXXX, force of first the of as to a expecting is sales Overall, total strong processes savings half these these team are we the new and that number flow of of for we were which to sold third our connected cells the staffing number up quarter normally of would impact and levels. the second initiative, has field shepherd the XX%, reduction The

from XXX The half our and in key in Revvity grown number OGMs commercialize business in Value QX, on and XXX% Revvity, phase same subjects study unique July, in XXXX, Its of was was in of Predictive in the from prenatal with of publication Some at the covered same publications XXX NPV With part XXXX. clinical that will cases its was XXXX. And the was which XXX% research a the XXXX, Research PPV which XX% XXX%, grew market was total the which Agreement in publications publications peer-reviewed to highlights first period multisite other overall samples workflow. Publications into XX.X%. Software Marketing the the or areas of the by number half grew. has of accuracy Newborn of as XX.X%. sensitivity first Negative VIA published, first under as XX.X%, our XX a of compared for include entered period was specificity Sequencing or showed by we software total

reproducible XXX% was instruments. OGM sites, operators between Additionally, and

mapping, major We cancer, including production And advancements feedback suite have be of ship ongoing our to units released tools analysis and continued commercial to of genome which of well Stratys sequencing interpretation improve VIA X.X software enhance the entire to Version interpretation as comprehensive the the for data of important detection of around the series advancements we visualization, a are also continues system positive. Stratys These angiosomes, and reporting of NGS or and including in microarrays. cancer, types, optical and our analysis, as software. next-generation

of the through financial and XXXX our walk to like I Gulsen, looking results. Before you ahead expectations, over turn call will Gulsen? to the the who to remainder would

Gulsen Kama

Thanks, Erik.

same gross gross mentioned, in during year. QX second Erik quarter compared XX% last As for was GAAP compared the for margin $X.X million. non-GAAP XX% XX% quarter to quarter and revenue the was XX% to the margin XXXX, was

GAAP from [ of million. $XX.X XXXX reports operating the expense ] respective These quarter was and operating and second Second of million, was XX% expense $XX.X quarter decreases XX% XXXX. non-GAAP

certain million, securities available-for-sale $XX.X XXXX, of cash $XX.X was as million to equivalents and restrictions. XX, cash, Our June of subject which were

in we the million million convertible XXXX, May resulted completed debt. into May, Regarding other and we retired October April of in financing of after Concurrently, private offering, senior debt, due million. subsequently, have offerings proceeds quarter XXXX, placement fees $X.X In of company the completed $XX agent second XXXX. deducting the the and proceeds gross a convertible X secured we registered which to direct entered completed outstanding in which registered the we activity in offering expenses. In restructured of we placement a resulted balance which debentures and net our of direct $XX

of cash amount payments. In us retiring XX, significant redemption we upfront to completed direct warrants. was debt by and and senior structure exercised of $XX only warrants principal stockholder maturities of of $XX offering June milestone outstanding have deferring As principal the million, for additional Series convertible million. registered financial proceeds a to Series The of provided A aggregate B July, another are new the upon and clinical The debt secured if and flexibility XXXX, with placement million, near-term the with debentures approval. company exercisable $XX private proceeds link gross concurrent gross up potential of

statement that for be proxy will be October. Back Erik. you, to held early meeting to a of stockholders We a filing special expect in we

Robert Holmlin

Gulsen. Thanks,

in the ahead fewer with converting operate traditional need QX employees to on need value our to of the the is the on OGM. year, on one expenses to hand with the balancing Looking other, and cytogenetics reduce remainder full to focus and the realize to potential the

Regarding and expenses, October in that them continued then XXXX, XXXX, of reducing in in of XXXX. March we of May began and

non-GAAP relative Our this plan was savings realized annualized March the the ago. annualized a same first by period to progressing is reduction we're $XX quarter of in million and be expenses XXXX to in reduce operating The XXXX second $XX.X to the in XXXX, to of or million. evident the of operating a well in expense total year quarter million $XX XX% expected towards non-GAAP fully goal expenses to of are in the as non-GAAP compared

extending the will it remain as vigilant impact to results. our streamlining savings. has recognize, towards operations In And management potential future this, we and to initiatives, do addition further we those the

to. we that something pay will that's attention close so And

still are other to quarter. blame process this it face streamlined in China of some for to areas of we be challenges partially of may and operational to overcome being the business the and able We not model, the our adapting in

on continues and change. in up focus organizational team business be execution that of from shoring areas any management other Our might to commercial coming the gaps

ongoing development growth planned market the to support to and efforts to Our reimbursement. continue advancements include workflow driving in efforts

support is the have that improvements important compute this processing developed to which year. for computational In sample are plan time higher slated quarter, advancements additional to in high-performance collaboration a customers. system, to We Stratys the our NVIDIA throughput release on we with workstation the fourth for analysis data

challenges genome We isotachophoresis optical that system. with addressing the on isolation using come technology DNA Ionic the are mapping

and compute developed new believe Ionic's isotachophoresis this OGM as and be We the completed using as Ionic newly a been in the positive, sample precommercial is number fourth X planning days. We're X different it a which of the the on to technicians. sites evaluation samples Feedback reduce OGM X/X Stratys a currently year, of have enhancements of on to likely by of is specific and for more DNA has to validation same Ionic at commercial underway. we few full answer workflow isolation of quarter, the to product molecular includes release will workflow in to the and cartridge, weight ultrahigh system ability the labs processed later with enable

program Our more really appeared trial the continuing trials constitutional advancing pre- this the is study the postnatal clinical and and on Heme like supporting July. publication studies from that publication focused data of

alone, and the In School in in findings karyotyping cost karyotyping the to so and optical presented they than otherwise Dr. week such time genome of that Heme preliminary testing evaluated by The and Cancer cases and situ Medical negative Phillip report from X the or Genomics to were Louis. St. days relating were Harvard of karyotyping the and Consortium mapping combination as this a lower detected sample Michaels optical lower that showed fluorescence at was from hybridization turnaround fact, standard trial of than mapping meeting when FISH. The interim results of clearly data pathogenic genome care in was FISH. XX% readout

So XXX that our And systems track this progress of to remainder year, we is an XXXX. on of some remain we're continue goal in of -- with having the for to incredible Heme of XXX Stratys OGM to trial forward. And guidance XXX Saphyr end in reflects the going of invest of to upgrades base the installed will regard the installing and meet process. we the this to by seeing,

genome we're growth given at And given $XX in million therefore, we previously. we China, $XX third that the slowdown end range that expect year to revenues range slower our efficient see to believe may committed in XXXX, we field running full cytogenetics $X.X revenue further million optical -- growth But down And the and at than we the and with genome we of adoption preservation optical of expect we're million. half first pleased mapping to full lower will cost. In an as that of organization, to management revenues disciplined transform of we the million guidance a more $XX and result the adjusting and the to we $X.X made up We cash from experiencing some the our of be more cash end targets to are expansion the have XXXX and be the we year quarter believe expense in of any with reductions. profitability to from understand million $XX in I'm that and remain continue closing, progress in mapping. to million. And

that, for please And ahead and with the so open operator, go questions. line

Operator

first [Operator Co. Thalmann Cohen from Instructions] Jeff And from and our Ladenburg question will come

Destiny Buch

what In guess really system? I I of what count? Stratys Or Destiny the is head is is quick just I this guidance, This regards transition part know, to of lower want is lower is portion And on of to to what that that -- attributable a to that it actually to the based staffing? attributable mostly lesser had for Jeff. questions. is couple on your

Robert Holmlin

you, China, accounts shifted kind think at down of for million. by the Yes. for I look probably if Thank And $X the it question. you Destiny, range I that underperformance the mean, of shift. we

so possibility underperform China over remainder anticipating of And the the that to we're year. the continues

-- So these full definitive connection of I year. in these connection the I'm be other of over the probably in because can ironed underperformance, most those with more really year up driver. not and not I transient with feel some think some China the remainder first out catching is shifting guidance of guidance are like the and effects

Destiny Buch

in myeloma? the just these other to some All the you to sense. what say from That of I how market results within multisite makes offerings of right. multiple expand the findings broader implications would general? And leverage planning Okay. you're the study are wondering then was and advance product And in

Robert Holmlin

Yes.

Okay.

on clear be things. couple to want I So a of

the I is about came about talk So scripts quarter key. here a that about publication that spoke multiple let myeloma really there's across indication. out our that spoke in not a hematologic outstanding which came se, is important because that's the I that out in addressing really something the And malignancies per board. But it's multisite publication me covering And myeloma. study, in multiple

form But for And canonical myeloma. so treatments refractory growth be are of example. effective standard one And that for to hematologic to type of multiple its myeloma to there in is characteristics Cell the a care malignancy. karyotyping, tends cell growth lab. testing, significant is multiple is required of cell the perform

alternative powerful. that not cell an be And indication rely would on is an where growth so very cell myeloma and does culture multiple

really study it AML, where leukemias multiple certainly, are only potential at think mapping And believe I labs in results also potential this this so genome is ALL, that but optical look when we means there in for for like significant, CLL, and not CML, adopt multiple you other the myeloma, that the can myeloma.

that were really significant mapping utilization. optical existing for results of get at setting. it results fundamental used within trial grow so this expands results And conference, those look and malignancies. When adoption preliminary multiple in a myeloma the they indication hematological or are presented That's start it's because trial significant new in the being to a opportunity the on benefits really a we clinical because sites for at to genome health basis at their outcome economic the

months. this insurance be coverage study And so roles and X, decisions those benefits next key are in the being XX to will are that play made quantified in going in XX,

but how as impacted and many results results well those as most standard to not does care, much only have we've by getting say, results. gotten at are and as the works much well, so study how OGM better trial better, study of trial it but or how subjects seen well are things And like as patients of these that now our work

very significant. both So are

Destiny Buch

it. Got

And up I'll I system. there any parties, on Ionic it. is you full -- still like other then et launch noted QX. in there Is track believe appreciate in interested backlog looking can I you provide just the maybe with what us? anything Okay. And for you're of for there finish terms the commercial detail cetera.

Robert Holmlin

you're welcome. Yes,

So recall, that weight brought exceeds other Biosystems. acquisition proprietary the molecular ultrahigh options where gives technology the I available of a really for us Purigen today. into that mean, isotachophoresis, the it Ionic you through that think performance I of company with -- are And isolation DNA if any system,

and so And field so contribution optical with we've like going units key been value much molecular can positive. customers done this hands technique get that in time really labs isolation genome more and of critical much same mapping that And to that's been on the testing pre-commercial that the DNA high at you get of on adapting the weight the workflow is of quickly, a for that process has reduction less or very ultrahigh single volumes, proposition enjoy that it's standardized, is they time sort because errors. using standardization workflow the in are in right, every any is workflow

conservative really performance, we terms But customer building have are that, genome board. that think tends a not now on of in increasing to which I having so can be we interest are are of timing. expectations, it that only all who product showing at to meet bringing until customers in sure mapping but We these make operating in scale, want and a about product, who sales their pipeline. the keen everybody terms the is have benefits many the said they who And but we're optical are volume, adopting Saphyr, Stratys

Destiny Buch

I got it.

you much, so Erik. Thank Okay.

Operator

Martinez-Montes from come our question And Eduardo H.C. from Instructions] [Operator will Wainwright. next

Eduardo Martinez-Montes

CPT when with I and in question guidance? that your that to in recent you expect would regarding changes forecasted the reimbursement you be should revenue, announced, and had a the guys see code

Robert Holmlin

question we like the questions your frequently there and Yes. most side, for question. It's talk is get reps want with code what States -- get what's to a CPT they when is in thanks folks Thanks, the buy this. that Eduardo, they that interesting frequently? most is, on the question the United And for the the sales ask

is now helps purchase an in And turned for the application to its seen process. publication great, a of And have so really we've of we but affirmative it's start definitely with answer process. and that code it the accelerate some their to and the code, accounts question, acceptance the and already anecdotal, which the acceptance sales

near-term careful want I Now putting of about driving a a of on revenues. CPT emphasis be to sort of code lot sort

assumes code, code. steps currently have other plan there a other revenue we'll but that the And those Our first are include are steps of that required. pricing

So CMS connection of the is of clinical conducted appear and in this And on what fee application, question and lab is just meetings with their schedule. code in they've will doing normal at schedule the price? beginning that, XXXX. And of the series effective process in our so the the become is a and

And sometime think number pricing And Laboratory what are Proprietary Analysis up we'll impact. [ so there. of There ends at soon. the out ] priced have getting PLA see that I a an are can code codes, that

And good so would where marker for CPT that's pricing hopefully I of the a see we that, the code. think

show needs up next year. And be and then to early by needs price it get on payers. determinations to there coverage then clinical lab made fee schedule this So

the so is and working something it, of that And we at that's end applied Medicare XXXX. for on

Medicare evaluating OGM early those contractors coming coverage determination. also probably So making will administrative to determinations we be be and expect XXXX. coverage out Other

really now And that to the lot ready unfolds, them process mapping and code gain in their and are genome CPT existing it's just more to more they're finalized. think coverage. once and a reimbursement is bring smooth in, going over I a customers this So from to convert of bringing and and confidence workflows it gradient will optical as pipelines to OGM of getting pricing

in utilization as unfolds longer it is adoption term in coverage the certainly, term XXXX. near then by so And the affected in and

Eduardo Martinez-Montes

really this forecasting VIA of had software-as-a-service role Revvity play more And the with that recent getting like and your if kind the the regarding again guys and That's deal in great. you congrats as on I well? code. question deals insightful. might kind That's and another envision of

Robert Holmlin

Revvity want I And think that a our thank And provides variety pretty clear critical into there Revvity and sequencing it NGS variant has analyses presence how for I a comprehensive data. certain from they so insights VIA be mean, of about I to the and the Sequencing you. data works. conduct. offering Newborn deal, Research, that software types next-generation are from of software, the Well,

to And genome And technically we're it's limited doing mapping. what optical not with to new so complementary highly just screening. that's

we not So can that what doing. we lot imagine go NGS and as see that being after, Revvity utilization attractive software is and it's the That's market examples of of significant can software a analysis for of drive our but can provide that would there other where significant revenue a accordingly. But you value. are

deals so end revenue I see OGM meaningful that, the of that your today And of say are would for the yes, is potential other contributors answer is line to to product. and software sales high-margin we the the a margin, top I mean, for applications user the very question and outside software

is provide So that revenue driver, potential and we of provider, software driver value going growth a a as life solutions the sciences a significant forward. a source

Operator

Thank that to does Holmlin today's any you. to the now And like over back conclude Erik for question-and-answer conference session turn I'd closing for remarks. conference. our

Robert Holmlin

Crystal, and you updating on we to next you, look you afternoon. thank who today, call report. Thank joined forward the to everyone our Good has and

Operator

concludes This you. participation. you today's Thank Thank conference your call. for

have a now disconnect. day. wonderful may Everyone, You

Bionano Genomics (BNGO) 7 Aug 242024 Q2 Earnings call transcript