Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Akoya Biosciences Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session.

As a reminder, this call is being recorded.

I would now like to turn the call over to Priyam Shah, Head of Investor Relations at Akoya Biosciences.

begin. may You

Priyam Shah

and today operator Head to who’s everyone Investor Thank this thank call. us Biosciences. on at Shah, I joining Relations you, Akoya you am of Priyam

McKelligon, available the A the Chief our On copy Financial today, the of results Earlier on press website. released Officer. we June second today, have quarter Chief Executive and ended the John call company’s Officer Ek, financial for is Akoya release Brian XXth, XXXX.

of that begin, management statements pursuant make the Securities laws, statements are performance I’d events, statements. Harbor of this like that call results, to we this meaning Securities you forward-looking call remind Before during Safe Act predictions will to of Federal relate Litigation to contained the the future made in XXXX. statements include within Any Private or which that provisions or forward-looking are Reform of expectations

or due Actual those differ the expressed from factors. of in variety statements results materially a implied forward-looking may to

XXXX, for XXth, XXXX, and list to the a and section filed annual on refer the XX-K including and second ended the June filings Risk in December our on in Commission, with identified the quarter XXst, year filings US Form the ended today, Xth, report report please Form Xth, XXXX, with description quarterly with March filed subsequent our associated our including risks For SEC, Factors and business, risks the XX-Q Exchange Akoya’s of of the Securities on XXXX. uncertainties for august

performance. of August live considered factors only a are estimates and contains that to be statements We guarantee This are Xth, the aware as time-sensitive call not these accurate consider information should and today, you conference is you broadcast XXXX. urge of future and only these

law, disclaims archived Events. will portion today otherwise. because Investors intention on as future forward-looking section projections of financial obligation, this new the or any later call by be our of of update or heading This statements, required audio whether or revise website to or information, any except Akoya events, the under

in Canaccord on Genuity Growth investor to Events the this Stanley found be our Summit; website. under Investor plans Tools of upcoming can and quarter, section participate Morgan conferences Details Akoya our several Healthcare Conference, MedTech Genomics Conference. and UBS including the

And will Brian. turn call over the with that, I now to

Brian McKelligon

and We a Thank call, at you, or today’s us our our you and Johnny I'll On of look business Priyam financials, review and to introductions. provide our our overview more an afternoon the detailed good for evening everyone. new today. performance quarter, product provide business then appreciate trends, discuss progress, will second joining outlook.

very highlighted Akoya growth placements of had revenue record quarter year XX% over XX court. XXXX, strong prior a of and a record the second $XX.X the million, system of in by

in X,XXX Our the largest instruments, base installed is the biology cumulative spatial now industry.

unique is spatial solutions growth span stable biology translational of that and these of types and services provide Akoya's portfolio customer and market in delivering market of spatial market. end-to-end We a the the continuum to each spatial from complete to early needs byproduct a opportunities products clinical the purpose-built emerging to serve Discovery segments. best-in-class leadership of full of

has X,XXX half customers. over a power years, and the than to-date last the our XX% Akoya's two of With of these and in publications solutions transformative validated more been by

profound Initiative. this Program Breast by Atlas Biomolecular As from the our recent platform Cell advancements highlighted our the publications morning, current release HuBMAP and nature press publications markets, PhenoCycler noted driving Atlas discovering X,XXX the in in or is Human Human

biomarker to the applications. and in their immunotherapy PhenoImager see HT address robust the continue oncology translational they growing also needs, within momentum growing markets to CRO growth partners as in with our an and platform especially We biopharma in leverage

PhenoCycler-Fusion, then the Akoya's first continued , Owning clinical for a continuum with translational the driver and Akoya's applications value on long-term using setting for growth. PhenoImager is Discovery journey, validation key the the solutions HT in of sustained biomarker studies full ultimately, biomarker

discussed revenue we the the As call, while on our cost in strong growth, drive prior profitability. as move structure our business streamlining towards we're investments business to making targeted

in commercial strategy an XXXX during leading following portfolio product successful stated was and develop rapidly while to secure investments drive and solutions, have expand the position. a market of Our and to the our parallel, necessary our make and April organization IPO of to deploy expertise scale to industry-leading launches in and channels

focused our of the strategy and it improving organization's clinical large in Instrument XXXX the full biology platforms to We the central solidify Fusion as readiness on also was The launch spatial PhenoImager market. this and HT successful enhancing serve portfolio. were our instrument to

requirements Our Marlboro headquarters, and HT securing platform for meaning of system at platform quality system in the clean progress establishing lab for environment, standards, reproducibility, and here a first including our deploying clinical robustness diagnostic a our clear deal. meeting companion regulatory included our

we while financial our in objectives, all phase succeeded strategic From first of multi-year consistently our expectations the this beginning XXXX, of strategy. beating also to achieving internal during XXXX of of external performance end

initiated to growth, phase a focus on with of sustained improving this operational placement system deliver revenue. our driving strategy year, and reagent leverage, topline beginning targets The increased expansion of second while especially, continuing

and a solutions our and place the on enabling delivering a focusing reagent customers, With instrument broad our utilization higher of portfolio we and to instrument X,XXX result best-in-class initiatives as field, increased R&D now and suite applications pull-through. system boxes over are the operational and improvements workflow in in

Discovery PhenoCycler-Fusion our of PhenoImager studies. the new efforts for panels throughput expand XXXX, but ready-made high and HT menu content, not initiated start Since the both translational also with with to only for HiPlex Akoya reagent for the

brand are reagent PhenoImager PhenoCycler-Fusion the the panels the of panels the signature These for included for PhenoCode and biomarker and our HT. panels part Discovery

including Akoya designed or XX the also of a while to combine The own add interest. antibodies XXXX, handful into our Discovery a modules large HiPlex of ability to their throughout antibodies the XX ability panels customers additional to of launch a have rolling and are markers, fashion modular a these panel, providing in easily catalog

signature studies, HT accelerated are HT for to utilization and immuno-oncology increased deployment scalable and designed an assay the in and enable fast resulting development The ASP translational percent. for large panels biomarker

the Along these are instruments processing and and additional of simplify data analysis. systems also improvements user making further we to the accelerate on launch and experience high-value panels, the reagent with workflow

The system parallel samples instrument improved PhenoCycler-Fusion fluidics, hardware doubles was faster software samples Fusion the includes to of with second and of X.X field XX of multi-slide upgrade upgrade enabling or This tissue effectively per the and quarter. which the throughput week. initiated carrier, more as a processing

customers significant PhenoCycler-Fusion percentage and we and upgrades upgrade customers June by a of Field R&M The support year-end. software to upgrade started expect to necessary includes our also enablement. components hardware our the first with in

both turnaround a HR to results HT On reduction processing are for July, capacity and that on in also delivering compute. streamlining in post-processing instrument the our simplification. workflow image workflow hands-on moves the PhenoImager analysis and in tissue severalfold increase, HT, directly workflow informatic This meaningful reduction In to introduced in time, we and real-time improvements the time, on we post-processing. and and

development spatial adoption a as gigabytes, next-generation image from Akoya's of instrument support terabytes Now, standardization that third-party and large-scale analogist has market a solutions bio our data reminder, the the compression biology This platform leverage to to reduces standardized of platforms our format. catalyzed single in file customers. processing delivering on sizes and

of Oracle providers, Enable customer providing the Bio, and open-source cloud, range us leading of allowing software Medicine, to serve compendium To-date, and we Indicalabs, with PathAI, have full and including requirements. Visiopharm, a our customers commercial, desktop, solutions, with needs partnered

focus internal and while continue, investments upstream. intend for we expect We our this trend to

to our network, content software from expanding sample improvements partner the utilization, instrument Coupled system to increased and menu and pull-through. will answer, drive accelerate reduce time workflow

great continue are technology relevance efforts, seeing central presence focus particularly At patient is We AACR on clinical multiplex industry and downstream, to central in and rapidly tissue clinical and are impact, in to SITC, analysis like emerging a where growing immuno-oncology. and markets. progress the translational, spatial clinical -- make biomarker and the conferences

has and these through leaders, partners lab by CRO program, Akoya transformative Acrivon, our adoption partnerships Agilent, a and forming AstraZeneca, efforts true more. delivering with including and CLIA thought led clinic-ready driving

expand We continue ecosystem. to this

ABS are development network improvements market For the diagnostic in and presence trial translational qualified impact pipeline Akoya's example, leveraging clinical companion CRO and biopharma and practices our workflow the opportunities. CRO growing service or team best amplifies network. build rapidly for markets commercial HT Lab and advance and to provider our advanced solutions This CLEAR like clinical helps and a ABS,

margins, the we improvements side the operational are exit chain our drive expect inventory On as and we XXXX. approach we to supply product to which management business, of rapidly processes and and overall in our reworking refining XX% continuous manufacturing

completed with in XXXX period side, in On minor in optimize of and a we our We profitability. achieve second company and align balance a second growth the to to in processes in the completing the the across proceeds. force XXXX reduction teams our to a after quarter rapid expense gross our offering sheet $XX quarter, the and organization million solidified better further follow-on

To initiatives we're the focused remainder review, of on XXXX. the throughout following

for and the to and for continue Discovery the PhenoImager new market pull-through increase First, workflow on further drive translation deliver improvements markets. on PhenoCycler-Fusion and speed clinical the applications the reagent the to HT

in adoption and build the to HT centers, companion goals. support to the medical PhenoImager CROs, translational clinical and continue leaders to diagnostic our and Second, markets ecosystem research diagnostic of drive expand with biopharma,

positivity to Third, XXXX. drive targeted investments operational efficiencies achieve in flow cash and

our financial over to turn I'll discuss call that, With the to Johnny results. Johnny?

John Ek

Brian. Thanks

growth second quarter over was $XX.X second of quarter total of a highlighted, the As the Brian million, XX% revenue XXXX. XXXX for

growth robust services. Our geographies, across segments, portfolio with revenue products, customer strong and a reflects year-over-year diversified multiple

million representing million instruments over strong XX% We and PhenoImager of $XX.X Product the PhenoCyclers year instruments, prior period. another revenue, software, year reagents over including had prior were quarter, with the XX second from the total which and the portfolio. the XX% XX quarter revenue second totaled quarter, growth representing period. were was sold, Instrument growth for for $XX.X

shipped sold of PhenoImagers. total ended the commercial XXXX PhenoCyclers of an have utilized as third-party start PhenoCycler-Fusion launch total the instruments instruments, base XXXX system XXX previously instruments a at combined XXX and standalone base we includes X,XXX directly as the of and combined the XXX Fusion or total system XXX either second to that full which PhenoCycler a of We now quarter of since have installed microscopes. installed for upgrade with A a

new of and content with Approximately reagent faster we pull-through one launch, in Fusion PhenoCyclers are increased the being half drive with to workflows. combination into Fusion majority expect even combination and this sold a the years and the

our $X.X XX% half the reagent was revenue encouraging results of of second are quarter, period. year growth. the we growth seeing million driving XXXX, Reagent prior a over representing the on In emphasis first for

and annualized for The utility biopharma pull-through more Fusion annualized mid-$XX,XXX are our PhenoCode which as instrument in HT signature with launched the PhenoCyclers CROs, the range This both and both and for increasing paired and among PhenoCycler has compared pull-through in also an XXXX reagent recently up of PhenoCycler the per now range are $XX,XXX increased we the second the for target to low to panels. running HT. is HT quarter the and as see PhenoImager customers

Given in growth to the product dynamics range our ongoing pull-through growing users, the launches next reagent expansion, base annual we revenue several across new and anticipate realize designed to our end years. installed a for be this

other driving been and as are have Services expand $X.X over growth studies. base XX% revenue an services totaled and us period. for Service increase the the revenue of installed for lab warranty the and quarters scale second as segment our a past quarter, several higher our substantial million over more prior and year

for reagent XX.X%. chain the $X $XX.X COGS of periods year-on-year purchased was Gross charge product supply in expiration to quarter, second XX.X% against including to the representing profit the quarter, a million non-routine related million margin help the and materials mitigate challenges million lines. new prior global and in growth totaled enable $XX.X was gross

become part half of we with to and operation reagents first XXXX, of revenue to strengthen chain for improved made systems operational bigger strides the plan leadership mix. our In great supply our and have we planning as a

continue and second our operations and expansion to manufacturing the range will the XXXX. to We half leverage gross XX% investments scale of of in optimize margins drive our the towards

quarter million the $XX.X quarter. the compared as totaled for expenses first $XX.X to million Operating in

to profitability spend flatten XXXX structure are cost our continued business underway the to as operating efforts Our to our into XXXX. we work towards drive leverage and throughout

which revenue As second help the more falls will in substantial organization, the areas non-essential Brian portion bottom-line. quarter, and of across workforce mentioned, that reduced moderate expected we a our certain growth to ensure spend in our areas of

which expenses was of second other reduction severance in in with charges our cash, $X.X quarter in the and $X expense million Included from million this stemmed efforts.

decreased operating charges, these expenses QX QX. to from Excluding

Akoya has execution a growth. developed operating streamlined has and drive products, world-class robust infrastructure, commercial topline to

highest returns positivity investments targeted to that in focus generate will our Our work we flow plan for operating as is on XXXX cash in -- focus XXXX. the areas towards

million includes debt equivalents, cash in raise and quarter proceeds cash $XX.X second $XX.X which have the million an the and of equity capacity. approximately net quarter from in available ended We approximately additional with

robust our OpEx. We cash in burn with maintain gross resulting as expect leverage and reduced increases to operating XXXX, to flatten recognize topline we growth to throughout continue margin,

Common June impact and the shares XXth, outstanding of and of diluted outstanding including XX.X stock fully awards unvested shares restricted as million shares are XXXX. options

quarter revenue, largest the To XX% summarize, million instruments, record Akoya's spatial in over total in another now base installed the $XX.X industry. with installed biology X,XXX is base had we growth at prior a the year.

and the revenue continue installed base, while driving rapid expansion pull-through growth increases. reagent We of our meaningful

growth. and cost help improve organizational advantages critical operating to while topline implemented maintaining leverage, have We changes to robust drive recognize margin gross efficiencies, improvement,

to we over volume growth very continued -- confident ability of growth featuring in an our Akoya's now X,XXX, platforms with remain XXXX. in finally, And deliver publications industry-leading

Currently, our for $XX we to spatial range of in XXXX we revenue market. business tailwinds million to biology guidance see as reiterating million $XX the for our are continue

Now, I'll turn to it remarks. for Brian back a Brian? few over closing

Brian McKelligon

We're fellow the near-term year and hard developments thankful of the across pleased portfolio, dedicated a and the report we drive our flow. on to as Johnny. support and customers throughout multiple announced well you, of to as clients We're shareholders. look as exciting strong execute the to them the for new work our quarter, we'll business positive cash Thank

to as the that and space remains we about growth, Discovery from very lie excited markets. solutions for the Akoya the well-positioned clinical new deliver we're ahead opportunities

this at open the we'll call questions. for Operator? point, And

Operator

[Operator you. open. Mikson Kyle, question line Instructions] Canaccord Thank Kyle from with is Our your comes first Genuity.

Kyle Mikson

Hey thanks on guys. the Congrats Thanks for the questions. quarter.

-- ask no first Fusion. I I about want all, first, instruments great first strength stuff some of mean, to yes, here. So, problem. I kind just of

how of Fusion kind PhenoCycler-Fusion What's now, PhenoCycler? And then the of the And rate bundle pull-through from going every was going combined Fusion characterize be the instruments? this you point right then kind X.X, Thanks. right? to attach to for would forward,

Brian McKelligon

me So, let yes, answer in serial. those

to is not than still So, PhenoCycler-Fusion as with Cycler the the sell way the more the XX%. while Fusion on standalone not is and calling rate attach third-party. It pull-through we PhenoCycler out a Fusion well over that when dose a relative the common we're

range, If at, they're Kyle, XX you that PCF maybe XX customers. just that our all are to top look above fivefold mid-$XX,XXX

third-party to those than is elevated at what the of which look we're why are total using base, PhenoCycler-Fusion as with a upgrade. huge to So, continue pull-through about opportunities the consistent cyclers, expecting, installed half that we is well above going attached with XXX, PhenoCycler forward Fusion, scopes, to it's more little those

And far over cutting into time. manufacturing that's X.X, as the as

second the into So, those upgrades do manufacturing tail we'll and towards upgrade through more those then half on a focusing still as of the end field probably cut year, them away. the probably right field

of So, a a bit little hybrid.

Kyle Mikson

driving revenue being What is it projects? strong. Fusion Yes, the or What's that? and well? any time, that pretty done Is work other HT the our there by was not it model, And higher mainly was really work service but as helpful. was on of than kind

Brian McKelligon

just Johnny, It rolled includes what's you Yes. our remember chime can kind so line. as certainly into services we don't yet lab warranty, both in, that really well carve as that out. of services

really a it's of So, both. combination

to the customers the both CLIA of with CDx. advancement in both scale larger board, ABS base, strong lab Growing lab latter Acrivon which kind through when our the and are means the is and services CLIA with projects But continued Acrivon continued partnership this across especially performance. biopharma with it's you of of which have our ongoing higher also instrument revenue, installed terms the our continuing warranty at includes the advance

Kyle Mikson

thought in. great. going right, was chime Johnny to All I Okay.

question I of borders success of maybe the the on like last like So, kind outside was are more curious immuno-oncology. if any publications company's of your recent outside I/O? veering

like the be is case kind I/O forward you could well? a to aspect spatial of wildcard therapies main use like as if clinical that an the important therapeutic do And like like going as remain going for targeted or think like the

Brian McKelligon

good really question. a it's Yes,

market I oncology our look lot dermatological go. immuno-oncology publications PhenoCycler, the Kyle, think where the we case and of the and Discovery it, of segment as inflammatory more disease like generally, including of a And the when products we at of areas segments diseases. a take answered in outside

by translation still clinical On dominated that That said, on in noting the repair. HT the damage largely the I/O. it's DNA new it's side, worth therapeutic leadership in is Acrivon targeted

So, not I/O. in that's

the for there at of for headroom look that, space oncology Kyle, expect But much that I I/O in as still we're still of so with market, advancement you some say translational would there's the the clinical time sort pipeline. I near-term,

Kyle Mikson

Thanks Brian. awesome. right. All guys. Thanks

Brian McKelligon

Thanks Kyle.

Operator

you. Thank

next with UBS. Baranowski Lucas question from comes Our

line is open. Your

Lucas Baranowski

John terms Hi case yet I guys. the past, changing here today? ramp is do on at about of for anticipate the coming This of And the full aren't you've In the Sourbeer or utilization. is majority quarter two? that that customers talked PhenoCycler-Fusion Lucas at in how you UBS. in guess, still

Brian McKelligon

like, improved capacity, it, when and upgrades about software to capacity. on, speaking, feel life and the with is rare, I field bookends, full what do Yes, then of with we John, I for partners. full think any it's just improvement said, think we feel That we more these do panels we'll some talk more tool call operate at system upfront the sciences like the generally

capacity is mid-XXs but what higher We that your next pull-through similar do and grow feel over number. we a from suspect full a rate of again, at is expect. we couple years to to percentage larger of idealized, at more Lucas, your shift customers, the continue this running a gets now, the to of frequency a going that begin having a I median larger pull-through an is like, to getting

Lucas Baranowski

into upgrade my I of end in on helpful. your Is provide The going guess you That's And terms going it customers? leads there how has both started things any clearly question. can know how of what other X.X also hearing very commentary you that from now. then Thanks. you're that's on kind are of and

Brian McKelligon

pretty it's think, I Yes, early. Lucas, still

started June, the just upgrade noted of the we there's install I That's really in box. in it is it of the things we well. doing works for. simple As terms robustness a one and look of -- upgrades. commentary, we Number extremely out But in field those going two

the people turn having per can they where thing is the look ramp more now utilization you week multiples second samples lot prepping And per because it is, for realized day. a are

too still that. about that given the upgrades half think second to it's I and our realize to pretty former, into as optimistic a we're little bit XXXX. that optimistic for Lucas, benefits early, accelerate robustness, But those the and ability we're those

Lucas Baranowski

guys. commentary had. Thanks. Great That’s all I

Brian McKelligon

Lucas. you, Thank

Operator

you. Thank

Our with Vatnsdal from next Rachel question comes Chase. JPMorgan

line open. is Your

Rachel Vatnsdal

Great. for and Thanks Hi good the taking guys. questions afternoon.

off, of to China, just I the by first I co-revenues. talk about XX% believe, total is So, want of some roughly geography. performance

of walk And We've are the of players heard other did out? a How us then through the was tool weakness from instrumentation of are the from lot peers quarter? or programs? government how of seeing retail. the orders impact you stimulus this and on trending? China Can any some kind benefit from recent What in play sector you

Brian McKelligon

great So, question.

XX% don't is speaking, of of is out probably While China little -- the is China that. it that majority total. we and our now about a than it's Generally less call bit specifically, APAC

through these of on a the material loans, the because capital China. obviously, negatively, interest-free happening impact some example, in APAC we that for were pullback of see purchases did And of

impact it So, our it did capital APAC purchases. negatively did

able APAC to benefit and a talented China. and Asia-Pacific in said, they're of realize got in really we've and outside That growth some team nimble

impacted wasn't the So, for where to scale on it topline our while it quarter. yet pain, materially we and our a did performance feel the

Rachel Vatnsdal

quarter? performance, looks And Great. obviously, on stepped margin there, like bit for then of it walk Thank us you the of just some that the you gross margin just Can solid kind some drivers down through placements a color. this gross sequentially.

next on And heading margins gross then year. into just

more this the Thank more and tax next talked this have of for rages should translating you. becomes about expansion how year, of guys as that about think basis business? You a XXX consumable-focused points we in to

Brian McKelligon

it's talk margins great allow and quarter. little we'll maybe Yes, in Johnny, question, And to this a money Rachel. dynamics unique man, bit about the a some the of

John Ek

It really Yes. quarter. Thanks this unique was Brian.

we Our changed standard continue really margin product, as the really we margin. to -- on downside, for hasn't that expand sell-through

this ago end QX. that had tail took where was we saw expired was some of And the we a years a for the sort expiring supply inventory What global at item quarter in lockup. of the chain or to year charge sort purchased of we this non-routine inventory two

launching QX. in we products of of -- sort adoption and really, that were QX a the middle expire And high in came new that to mode, and sort as of inventory

that so took in and charge And QX we cleaned that up.

But to And we'll couple and expect, half mentioned of we we've in I to hundred your -- into of see the expect sort mentioned, a XX% basis call, answer the of then mentioned on end as of we XXXX second range. as that exit points question, and into XXXX. of expansion, Brian the

of our As we're certainly up larger related should portion expansion as in and to it the efficiencies on. continues and to make addition that that we that shift, operational to margin -- improvements shift internal working as a revenue expect reagents

Rachel Vatnsdal

from Great. you. Thank That’s it me.

Brian McKelligon

Thanks Rachel.

Operator

you. Thank

Massaro question BTIG. Mark with Our next comes from

open. Your line is

Mark Massaro

Thank guys. you. Hey

bit what's consecutive think services love to driving it had, with you XX%, six quarters hear how little sustainable that is now believe, which exceeding and maybe see. is? revenue great and other a you've So, I'd I to more

levels growth growth rate the five consecutive of time? for has other revenue your rate On or think hand, revenue reagent some lagged of will as that for will do quarters. to to pretty materially sort the you start you topline your think inflect the other reagent much drive and curious when line revenue services similar I'm growth

Brian McKelligon

suspect XXXX, bit. XXXX, change $X.X close suspect XXXX, just those in high you'll million, million; the in $X.X that's No, I trends of million. to you if little $X guide of we're a we in to I don't releases Mark. question mean good up doing the level to back or start getting it's see $X kind per last this look while years I a quarter; so, about over we're three to million granularity,

continuing function. step that we're So,

the And have these I there, more year recent to offerings to a if X.X impact. begin suspect as PhenoCycler third-party. dominant growth we're throughout a their beginning percentage as that becomes larger that we'll lot Mark, PhenoCycler-Fusion of start becomes full roll to out realize And

I that's think look would I how probably overall, So, that at Mark.

And contributions on but the our is growth combination side, that, services realization really Acrivon. then partnership continued the for a both revenue of of growing productive certainly, base, and a both lot of the of the installed with the most Mark, the of the ABS advancement

So, hopefully, you that gives some color.

Mark Massaro

very that's helpful. Yes,

have guys you going lot RNA with panel. the got scope. X.X Obviously, the So, on a upgrade, the signature you've

rolling panels think and -- we more think As out, is XXXX the in XXXX more of the beyond? which the the which half be time will new back to do in of and of think kind you product do material off, you to rolling material become likely which launches most about of take

Brian McKelligon

to tell Yes, like I phrase. really you, Yes.

on I we that and towards think end how think, and think really of HT look at the Mark, is as the XXXX, that me, it. panels I -- sort signature I get into this -- it's again, I the of for XXXX

scale. period to of a I there's partners a have go, those because bit is implementation at and our they way to full and validation a material then and evaluation, those be biopharma there's CROs, opportunity think Mark, an the with get limited

projects. larger-scale for evaluated being are These

I that's have then have roll a to where something line impact at -- at the in gradual a step I more look like that's one function time. you the product of the So, kind over look X.X

Mark Massaro

for Okay. me. Thanks. That’s it

Brian McKelligon

Mark. Thanks

Operator

Thank you.

Our next from with Morgan comes question Savant Tejas Stanley.

line Your is open.

Edmund Tu

you on Tejas. taking questions. Thank is This guys. Hey Edmund my for for

Brian McKelligon

Edmund. Hey

Edmund Tu

Hey.

here. wanted to competitive first The touch on just dynamics question, the

that Ruger starting in making your and proteomic hard how conversations? are announcements does side? customer sales dynamic And push a come the you the on With game, them with with this them protein across side, see competitive the change acquired tax to

Brian McKelligon

great Yes, Edmund. it's a question

I it -- well, think ways I Edmund. at look maybe two three

potential to early impact. side look I the think little Lunaphore a it's for Bio-Techne on bit

look you Discovery the the spatial endorsement at at an attention if market, out narratives as value and of I lot paid of think -- to of transcriptomics. think spatial has coming Bio-Techne, the of at look inappropriate our the which and of kind Bruker investments I it so I and proteomics been a colleagues

narrative and coming the Bio-Techne. out our at think investments of and I colleagues Bruker

as I more proteomics to discovery the power accretive think a true engine. even of spatial

eye so continue a towards towards multiomics. And we're our road to going

at think particularly I it. little being resources as bit Bio-Techne. the impact, too of early that's the we relates how So, A look it part additional for to Lunaphore

Edmund Tu

as now, Got then helpful. And your it, a dynamics of side, the X,XXX peers. litigation competitive the on that's super with between X,XXX by are announcing on plex lot transcriptomic to next the there's going switching But and of both them year. now

side RNA have changed wondering So, updates X,XXX-plex has if the for And I was on all? internal your any transcriptomic you chemistry? at guys this your view your to approach

Brian McKelligon

prior calls and targeted feel opportunity we as ADPD we there's the the more for of competency customers, last think really really our look and friends articulating space and base, huge market for opportunity XXx talked today, Conference, the plexes. for about for after I go core installed We'll in a example, ahead the we've multiomics in at fashion. let for Yes, and think think our proteomics certainly like these and side, been NanoString at our we in as that in much just we at exists our that I us, higher go

XX, samples the in capturing Our a ability in to experiments velocity, XX sample to focus our XX week churn really, giving Edmund, two. customers the experience to through per is or time, XX unit on

a the question, why a the so expensive time versus on be And very that's the right focused result in something that reasonable may answer giving amount a we're amount long right sample. protracted of them per of for content in time very

of more plex, this mid-plex So, transfers. multiomic focused in thousands kind range, and in we're thousands Edmund, of that higher

Edmund Tu

Thank answer. you. Great

Brian McKelligon

Edmund. Thanks

Operator

you. Thank

Capital next Tim question Our One. Chiang comes with from

is line Your open.

Tim Chiang

to are getting gross Brian, thanks. and the three a Johnny pushes pulls And the see more CRO I then Hi for second about follow-up talk customers, medical biopharma year. question you've half initiatives the centers, a bit had you I just one? little of year in provided for what the you the on know the remainder of Could margins.

Brian McKelligon

good Tim. that's Yes, a question

the what number As whether think that about and It's penetration pull-through. we in HT, catalyze one our we in the pillar workflow, about do talked investing terms side, about PhenoCycler-Fusion think it's biopharma we to Tim. need I what do on system in of utilization to full or it's the for

So, it's technician-friendly.

the of sample manner. simple to streamlined through HT and a get modules out a friendly the on the technician the compute in easy that PhenoCycler-Fusion on ready the Sample with panels box, workflow X.X, very both with onboard

And available side file through come a analysis then data in to to of terms and number the options other you of out a third-parties. compressed with

I core simple look tech workflow game go, and on what for have versus technologies having some investing sort the on of think strategy in biopharma skin our a to that to in ready end-to-end debt. customers that's

So, one. I number sort of think we're there, and that's

what think like and And them doing we is best as best we what having them partners downstream, done network we're internally two with I enabling our look higher with we've have practices to really CRO around network think gotten number I practices. the utilization that's CRO CRO with our in really

that available to those looking worked are of number biopharma to projects, with. they So, including they've when options historically have our a outsource partners them,

biopharma penetration think that's how on focus I the Tim. I So, would side,

Tim Chiang

No, inventory your right and have guess, color, what gross been, that I right? would probably way if Johnny, would around margin stripped I Brian. charge, that's $X Is to have million the know out it, but out is this taking don't look absolute the at XX%? I good And that, then, if

John Ek

there's that exactly nature -- this That's purchased always it. inventory was look a when and tracking, just is to have in of obsolescence you're be way at Yes, timing of time pretty to chain unique These -- the the supply element expiry the was right it nature, while or of world, the you'll right. perspective. an the from

all experience, dating, then expiration what margin the the expect, now that And -- to leveraging fully strengthened things that would we're you operational inventory including driving management inventory. really, our with we to planning, excess strong we've sort resource and strong who folks ERP have tracking, make operations leadership those of sure of are

charge, back which we we're be. of why we that's this year, in half of XX% range think at the excluding said, you like so should is that we And sort where the the said range,

depending margin of moves Mix instruments, imagine, down, on service. up a revenue, bit or reagents, you'd or little as

revenue So, that's margin. real our then we have if factor a can view predict we of a that always good well,

While do that specifically which from by we break out as impact going will why reagents, perspective, we we those don't we're line, a is to certainly, product margin we push that will what drive margin drive for that grow margin, up. reagent

Tim Chiang

it. Got

that’s Thank you guys. Okay, helpful. very

Brian McKelligon

Tim. Thanks

Operator

you. Thank

with question David next Piper Our comes from Sandler. Westenberg

line is open. Your

David Westenberg

my taking for Hi, thank you questions.

that lot launched -- products you last the on would think a pretty So, drive couple the of I utilization. year have years a significant in of would

there specific content as launched, is growth versus good you you little ones -- have want than ones look that you've reagent to contributors the been were So, less we any highlight that expected? at to that a

Brian McKelligon

of on XXXX, which David, out if I over don't would what a while rolled on there's the question additional a I side. years, we and think topline, think contribute platform mostly really of that -- good PhenoCycler good a the there's you back, yet. in I impact don't call was out look XXXX it's did in because to two David. last was there anything pull-through lot And anything XXXX would bolus content the

our And for the see I the I some panels HT is you as start year we'll impact. full discovery of then and look signature where that think to panels XXXX, think at balance between

panels might more of consistent get X.Xs more that the gradual those get pull-through panels for think than -- really I third-party And see realize signature with to explicitly call Massaro's step is versus rolling we the as would PhenoCycler-Fusion Discovery as going the we Fusion we rollout. the on what question, as the I think we're we Mark for something function more

David Westenberg

Got you.

So, I major revenue contributors. there any of mean is framework kind way the as that adoption of to

here, experiments I'm kind that helpful? years, that the And so So, couple just dabbling then is are bigger or as I and going data get have on. of think of next -- about I at worth over grow reagents thinking they we in to and and first go of how this mean, are bigger would I you be

Brian McKelligon

downstream discovery Yes, methodologies I the generally adoption speaking, different market. there's for two versus transition market two different for think -- the

in really in targeted clinical that it specific evaluation I/O. do like latter study signature of about XX side, deals a samples XX large-scale on have mind. to panels scale a they On the They is because

validation that So, we're phase. of at evaluation kind

Assuming about are then large-scale of Those a they functions. step large or where you're and a reads clinical large orders function in prospective lock talking orders retrospective David, study. get we step through bolus those, big a want to kind for of of

you're up. wind larger down about side, projects as say and I'd really talking migration the wind Discovery a to on panels then back And

So, point those I would dynamics are the to.

think more the because acutely topline probably more the to side. benefits are will panels PSP big in a ASP, latter, I such I realize the on Discovery think than respect that that we'll bump average With in

David Westenberg

you. up different different I good And you point. that a that platforms user of mean have again, characteristics. there's Got two two bring kind

going talk then -- focus about and I just on to maybe I'm other. the the maybe one off-line, or So, can

kind mean, using kind just are let's the last I question. of I and mean, what content my or customers be terms of to that projects or in those of what So, the with not? go full what the it are PhenoImager, just -- will customers characteristics capacity, And that of

Brian McKelligon

two if what So, made any panels a these building to generally so do gives our need at and highest lot are they're user us up already because their around them in that excitement we made. is and are increasingly of and panel types. to lot signature lot of current that's you customer I/O, because of of have HT A customers, CROs a remove look

clinical directly So, that for institutions large-scale a it academic CROs percentage working in their institution across are biopharma as are trials. significant of our

those base. two customer So, are the largest

I earlier say signature so these on content is designed. panel a And Imager these I the really immunotherapy for is question, are HT in would lot still the which appropriately think, the think side of Kyle, from space, are I I/O, immuno-oncology why

David Westenberg

the Got And it. quarter. job you guys. on great Thank

Brian McKelligon

Thanks David.

Operator

with our Mason last Thank Carrico Inc. from Stephens And question you. comes

open. Your is line

Mason Carrico

Hey guys.

be gets Any prioritized have first? Are based would accounts first? it you upgrades, you upgraded color Fusion who Is the the On there on schedule? highest customer great. utilization targeting customer location,

Brian McKelligon

Yes.

I'd have, say, loosely. We

So, or are that additional it Those And not capacity, case only weeds, -- we're utilization have scaling. have it's the in customers need that mostly is really need first. bandwidth. Mason. usually or people they the the but have that higher scale not includes looking are and that That at they those want the the it, high to get

But that multiple with largest slide software the market there it have the the the because that's supports a put and in new the hardware also area customers imageable makes our -- tissues for it easier on we going well. lot to certainly productivity their upgrade as

Mason Carrico

CDx how from it, could your could the shaping that's up, as of the the see a And pacing ABS half serve in there back is within helpful. you the And potentially positive additional Got thinking about Acrivon then pipeline data study when opportunities? CDx business, how next announcement? are we catalyst,

Brian McKelligon

question. a it's Yes, great

last they're that the second but only Your I to-date one announced report that now a tough wouldn't sort going at yes, because answer I one money in Acrivon that is But not half. of do it's urine probably attract the will least for and explicitly. deflect has question to results to Acrivon one

will to that be hear. So really interesting

success because then we've and things the to our partnership study. of we've is ongoing as retrospective happened from studies of Acrivon, of our gone expertise retrospective-prospective reasonable with that number seen, projects, one size pharma. an larger studies to because the What's ongoing Agilent larger a our exploratory to Mason, our even Mason, with think I of at

think equally I downstream. farther we're to capacity, that frankly, migration what from nature. excited and It's trial even we're nature those closer those a types project of assays. work clinical the exploratory in And the it's farther is getting additional to in of moving think our addition seeing to Mason I leveraging and studies So, about

Mason Carrico

guys. That’s Thanks helpful. it. Got

Operator

the questions. to Thank like Brian no remarks. I'd over back further to turn call closing you. There any for are

Brian McKelligon

nothing And drive operational results so those Listen, attention We really two I our and utilization on our by additional drive translational to system time, clinical appreciate to on. Johnny other everybody's our to articulated well continuing our deliver excellence detail. on path opportunities. that forward we certainly profitability as is as think, pillars. really priorities close look excited advance to We're to and to

and conversations and thank all time and So, seeing for your you look you soon. your we to following attention again up all forward

Operator

you concludes you Thank day. and participation. Everyone, a disconnect. program for have may great now your the This

Brian McKelligon

Thanks Michelle.

Akoya Biosciences (AKYA) 7 Aug 232023 Q2 Earnings call transcript