AKYA - Earnings call 3 2023 | Akoya Biosciences, Inc.

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Akoya Biosciences Incorporated Third Quarter 2023 Earnings Conference Call. [Operator Instructions]At this time, I would like to turn the conference over to Mr. Priyam Shah. Mr. begin. may you Shah,

Priyam Shah

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

today, Officer. Earlier Akoya Executive call On quarter McKelligon, the results today, have XXXX. ended Ek, Financial Johnny September released Chief XX, the Chief Officer; we for and third financial safe Actual are statements Brian A meaning Litigation call is the in provisions securities remind that call website.Before we statements like to differ Reform laws, you or copy the management results company's during of forward-looking those of begin, expressed include the expectations this to factors. the Securities statements in contained within available federal forward-looking made on variety the press which make pursuant that release Private will relate from may Any or to the or that harbor predictions of Act statements. this events, materially XXXX. implied future due of results of to statements of a forward-looking performance are I'd

This Risk considered the update or Exchange our with contains otherwise. the events and live quarter statements, call you of year except including and broadcast today urge XXXX, on and XX-K Brian. or MedTech to these ended projections turn required with revise conferences, XX, call not filings X, with For estimates participate the of associated Diagnostics filed the are and Stephens March Piper the September Forum, subsequent you uncertainties for XXXX, section portion to forward-looking and of today, Investment investor our Canaccord these the to on information, the SEC, business, Securities including future the Report on call identified several guarantee please ended audio consider or of the with of are Events.Akoya aware should obligation, the any information factors, will XX-Q in XXXX. website upcoming X, Annual whether under archived as or including of Investors Conference, our now as and our filed only refer Investors later U.S. that future performance. Report a any and found and by The Form risks disclaims Details be accurate on X, the list to this conference intention description the financial section today, Quarterly the Conference. filings statements of law, is I of time-sensitive XXXX, in risks a be November XXXX.We that, November over Factors be Sandler for plans Events on only under Akoya's section heading Genuity in to our Commission, website.And Form because December the Akoya and can the will new XX, Healthcare

Brian McKelligon

Thank evening everyone. you, Priyam, you us appreciate and good today. or joining to We afternoon

and overview third will conference provide upon call, our our product insights begin I offerings. giving the of broad During advancements in the our you I in a today's business quarter. by developments touch latest into performance will

record-breaking quarter Following into in the had that, XX% and trends quarter. marked in XX.X% future the including previous of key a deeper Johnny of and an outlook a now gross several revenue for provide quarter, $XX.X the our year. to the will our by financials strong delve $XX.X representing growth profit year compared to growth XX% and strong million margin achievements, noteworthy for business grown business.Akoya over third period, the prior third Gross third has XXXX, million, was a representing

intellectual are the quarter top-tier contracting the products expected of attributed after also of well consistent the business growth cover to industry.Akoya's our spatial year to our to to the underway that structure can to be stands entire and versus to applications, maintain leverage of targeted, our level, at strong property market, cash our to we base discovery our by at all bottom scaling sustained prior IPO a operating portfolio.Our ongoing spatial in efforts in footprint quarter.Our this All operating team's and our customers workflows drive since cost to portion biology. clinical moving flow in commitment backed substantial spatial ensure the the the achieved unwavering that translational to growth more expenses and X,XXX a in while now as was to biomarker of are XXXX our portfolio and rapidly towards work while testament cumulative investments a year year continue of instruments, after scale expenses biology and we spring research install The incremental the a dedication line. spectrum the forward biology strategically from our to to and continues us fall for quarter allowing standard a field, to constant setting it's revenue delivering the largest positive

issue help continued end being this solutions quarter, pleased XX% increase in instruments field. is of a we protein include carcinoma the to the researchers on with in the XXX to powerful ushering the have the Spatial era over biology, across peer-reviewed and X,XXX prior more the powerful delivering mechanistic immune basis neck detailing the inaugural the of month than is over expect map next and of Queensland to variable on the Through faster comprehensively and publications done head a a of understanding testament now Biotechnology X,XXX the report at customers, using effort, the study to a the the distinct this a or volume highlights the heterogeneity at last trend great forefront tumors publications, published spatial Biology identified period. metabolic accelerating advance response.Akoya of the and team as proteome the continue.Recent clinical third expansion the signatures by of to PhenoCycler-Fusion. now We of spatial done more University study year GEN run results in of and in these are science markers panel X.X, of This of our cell of focus the in by squamous of of a

answer delivering of now solutions.This SITC, software menu, operational Cancer announced our expanded in dedicated last San at further and significant ready-to-use efforts or improvements platforms from R&D content, further the holistic driving of range transformative launching partner customers expanding solutions. Our our utilization adoption accelerating Society following for is for approach and scaling meeting, Biology in Diego, are Immunotherapy the panels application X.X our to efficiencies, sample to platforms by Spatial Akoya broadening initiative, introducing our to our This to ongoing of grounded workflow is and principles. week's and

phenotyping spatial imaging a and discovery, or with high translation, it's a diagnostic First, throughput application. whole-slide a is requirement, whether

rapid discovery study, sample needs to be project ability need to support XXX-sample expeditiously processing a or days not to to from a study. hours, time researcher's the time minutes to answer matters. to Sample weeks. translational Second, their times to complete it's a XX-sample Whether be

X.X in frequent a field new industry of specific making, customers examples investment future-proof of Spatial deliverables following: represents significant X.X rollout Biology standard scientists a include with the on recent solution our a the the phenotyping. twice now represents and astounding some the first, many as improvements milestone, PhenoCycler-Fusion expect setting upgrade are upgrades.Now, platform given spatial highest-throughput Akoya's Third, significant X-fold this speed an of establishing per X.X the can samples the resulting as spatial available similarly With the our transformative PhenoImager week, enhancement, whole-slide speed. upgrade, a discovery HT in in process workflow the PhenoCycler-Fusion increase customers market.Second, upgrade

workflow. to continues expect on commercial expand to these oncology, enthusiasm Akoya's the industry-leading the also is welcomed These Signature delivering upgrades image third-party of directly our an instrument rapid the instrument we Panels biology software analysis accelerated sample-to-answer upgrades to real-time Akoya PhenoCode not process, with Akoya but partnering accelerate.Coupling preclinical of features of expanding downstream and enhances new its with for our overall integration and to immuno-oncology, providers neurobiology our and and and PhenoCode like also expansion new to on areas key inflammation, customers, primary expedites in efficiency prioritize customers, the streamlined the resources with the open-source HT X.X instrument. analysis content of and the existing provides One into our only Panels, animal This continues its been the and while continue X.X of the ready-to-use Discovery building spatial portfolio on perform solution. rapid software adoption analysis. solutions, of have by ability real-time to the models.Given great

CLIA highlighted ensuring had our qualified the result that becoming and specific Akoya is the and of the Akoya data projects, Precision standardized as compression the catalyzes clinical ability in image Akoya a biology suite the our a format flexibility of in clinical file with Advanced analysis meet strengthen their meets of solution It to nearly software gaining offering pipeline, biomarker in spatial capabilities To efforts, Lab software we OracleBio, date, deliver presence our including requirements.At which that field have both best is X.X that was are increasingly proprietary already the we XX-fold XX to also researchers stringent industry-leading Groups.Our analysis workflow and QuPath. best manageable in The rapidly files our desktop, Akoya-derived now in continue CRO on the Solutions' solutions SITC solutions, role rapid the immuno-oncology. partners. partnerships and is market. X.X with to Diagnostic Advanced that clinical-editing Biopharma ] comprehensive cloud-based, algorithm select data accelerating open-source called have is leveraging and Companion leading software Marlborough, our software and focused have data to and pioneering a ability clinical needs has latter-stage, our format is Our PathAI, partners, to like tens efforts of includes of our to of Solutions' of early our gigabytes, aligns and Labs, expand platform provider directly significant or clear network, datasets.We Lab last central from I confident played develop high-value that a conference driving practices third-party QPTIFF. easily by cross-pollinating Spatial strong traction to This these Medicine, we requirements ABS, CROs. a the Medicine Enable biopharma the support our actively compressed expanded [ standardized providers open-source providers, and Biology and To HT and needs week mentioned, late-stage CLIA growing phenotyping of especially established delivers Visiopharm, Biopharma spatial Indica service and initiatives.

and on become simplification summary, in our margin, centered solutions, front, focus drive efficiency a adoption year-over-year. chain meaningful direct our dedicated is and their the for our manufacturing more continued being revenue they have on as of the the improvements exit overall growing is to of percentage and effort amplified.On key our anticipate demand we overall these With XXXX.In clinical reagents. larger robustness operational to initiatives. more promotion a our rapidly meet we increase as Akoya-based XXXX In margin studies platform on is we focus of biomarker XX% our gross further This supply remainder above in reagents drives strategic for X which parallel,

And and drive the targeted I the third, goals adoption our on network positivity towards that, qualified in focusing clinical our driving over applications improvements of with accelerating to discuss Johnny and in offerings, and both executing our with investments in usher our the X.X, clinical PhenoCycler-Fusion on reagents growing to programs flow by driving achieving expanding efficiencies lab, excellence biomarker on financial and HT.Second, and further CRO markets. ABS translational improvements, as improving XXXX.And late turn clinically-directed manual pull-through our leveraging operational financial workflow cost-effectiveness our to partners we service upgrades, of provider results. sustainability expanding including and through PhenoCode through adoption enhancing PhenoImager working and and and Spatial call to top-tier First, cash with efficiency support the our biopharma workflow Johnny? Biology strategic network system increased late-stage and will

John Ek

XXXX a million, growth $XX.X XXXX. in As third for to compared Brian highlighted, period quarter total was of revenue the the XX% same

strong year prior and representing instruments, robust the was the and revenue reached quarter, million representing revenue million of revenue, growth and services.Product period. year-over-year growth including Our the third quarter, achieved prior totaled across products the Instrument XX% third over for $XX XX% channels growth globally in period. $XX year our diversified reagents, software, a portfolio over

for PhenoCyclers the and sold at HTs to During period. and now third the X.X since the a XXX base prior includes we stands expanding PhenoCycler XX XX XXXX, annualized Fusion to PhenoImager base quarter, PhenoCycler reflecting and reagent are with start increased quarter, upgrade microscopes.The PhenoCycler-Fusion of million of that as X,XXX in PhenoCyclers the because PhenoCyclers full were the both is XX base of installed being ongoing year-end.Reagent or at increase installed version directly year The from have system, menu workflows to and an combined third-party total have applicable a the revenue as sold drive total we instruments, portfolio.Our an of upgraded PhenoCycler-Fusions total which which panels utilized and approximately now combined have reached the PhenoImagers. combination instruments, that XXX and launch the sold XXX in million a compared are system low-$XX,XXX majority increased with PhenoCyclers of HT, XXX will HT. expect of the we the XXXX, our supply expand the reagents a now be half the a pull-through quarter, combination a third-quarter attributed previously from PhenoCycler with commercial were and of to improvement this and shipped instruments We standalone instruments A XX% been segment for and pull-through, by $X.X their install per X.X field upgrade. Fusion, current installed project reagent of the the faster strategically upgrades and Services studies.Gross period, pair Fusion growth growing growth we range for our for year totaled to both PhenoCyclers, of play was notable higher-scale third our $X.X X.X profit annualized role paired base mid-$XX,XXX chain, and planning, our expanded through instrument the our with positioning as was revenue quarter. HTs.As the enhance usage.Service with quarter, prior warranty for more substantial increase revenue instruments in to rapidly XX.X% an continue the range. significant This margin in and over lab the the period. in year we was services can have in a XX% representing in revenue XX% million gross for more a as prior increase pull-through and drive and the Fusions mix third to customers the $XX.X workflow refine growth field This utilization as capabilities, additional our continue of a to other which the is us and over the utility operations, the to

further continue our contraction Throughout million we gross optimize indicative compared to have we period, spend our we the to leverage $XX.X and million while indicated. or top-line consecutive be our meaningful in our of a year as pattern the flattening reduced had exit As previously XXXX, prior for we we we operations manufacturing we the investments, growth. our quarterly spend, totaled had XX% as expenses as which XXXX.Operating of expect to quarter $XX.X above margins, expansion drive project in

the year ended to an the ability $XX.X million and XX.X another highlighted, stock cash towards indeed of to cost spatial XX, outstanding prior installed revenue has well cash our position unvested with reached a with facility, approximately of are over XX% industry bringing report of total leverage in quarter additional on base marking summary, the are shares draw leader instruments, debt Akoya's impact biology. quarter Brian diluted as options $XX.X our growth drive Common profitability restricted now efforts million. to the our are structure as existing and our awards, XXXX.In to period. $XX.X underway.We million, strong available business and September fully solidifying record-breaking $XX.X to outstanding shares, with we capital equivalents of our including the As million million thrilled X,XXX the exceptional

organizational also our all remains strategic implemented Our efficiency, realize biology.We've reagent of increasing installed and while spatial enhance achieve focus gross to important changes top-line on strong improvement, driving growth. across expansion maintaining cost margin systems pull-through the while and the of revenue base, growth scalability drive our advantages, rapid to

strong driving growth beyond, are and As our cash the flow XXXX. such, of while positivity sustain XXXX throughout to ability confident in we goal towards in

pleased to the the our given we are revenue to $XX are range guidance to XXXX direction the in biology favorable trends of Brian. million, reaffirm market.Back of and our you, We million dynamic business $XX observing spatial

Brian McKelligon

growth, and Well, as fellow business the thank we the strong as the Akoya to you, to We're cash forward Akoyans, report flow. of Johnny. about support We're as point, a ahead deliver from pleased for questions. well-positioned we year to solutions positive throughout as towards lie to we're operator our of the quarter, customers the this remains executing look we markets.At hard well over on and remainder clinical for work objectives the shareholders. our thankful the dedicated the we'll for the call drive new the our spatial excited Operator? turn that for and opportunities discovery of strategic

Operator

Morgan Instructions] from [Operator of or the Tejas line Savant question Stanley. from comment comes first Our

Yih-Ming Tu

This is Edmund.

to or progress, think, both on here? it's the mentioned little the the the be upgraded you guys on in expect Just by of start, change what be had software it Has you changes, previously something. to XX% just would upgrade platforms about X.X I that rollout for I been year-end. call noted expectation there PhenoImager caused a because any or faster a recall

Brian McKelligon

don't I any there's think change.

of I expectations kind approximately year-end could we across think what so had been. of certainly by have expected. that's what potentially accelerate, is our XX% board It kind the

line in it's planned. So with really had what we

Yih-Ming Tu

I won't you you mentioned could, would be designing year? that to the would fact RNA you've X.X given isn't assume of Brian, chemistry it next be look of provide plan initial XXX on fair you is until be more be some Would And to the have RNA -- co-detection could And releasing experiments this capable customers what the more targeted context you range rollout, until that capability? a that scale panel provides going mid-plex so like? XX think, if for panels on it. color it samples, Got on to the the it anything RNA

Brian McKelligon

with at little more on be strategy near That's an hold And right. RNA At as our the protein rollout, the objective is we're specific details a to more RNA high at Edmund, bit providing the detail high-plex to look analyte in announcements some RNA a to then, absolutely point. profiling. complementary on future, level, so our of we'll to going our off respect this

Yih-Ming Tu

And then, the question. final

clinical-driven Brian, the Is that On the call, right rollout something you mentioned some ongoing that's on improvements workflow the HT. from now? X.X

Brian McKelligon

study. a primary of of the tertiary X.X parts meaning the parallel, sort couple having really it of good kind There's what It's to to the ready the informatic doing you call which is question. analysis, data rollout that. a analysis come by for simplify off does Overwhelmingly, meaning, in your get of forthcoming That's is workflow to -- our out of some the to some That we're of that expertise meaningful.There's one. additional as improvements workflow Acrivon leverage understand of part your going also partnerships. be of with of our sort and part improvement value coming able certainly partnership that's

some reagents, reporting And cetera. include of improvements, workflow things et of kind those additional

with pipeline improvements partners second So, of projects and but our biopharma downstream. I farther and move our within our conversations clinically are, relevant order many those really embedded see farther and we as opportunities think, of more

Operator

the UBS. or of next from Baranowski line comment comes from Our Lucas question

John Sourbeer

calling. on quarter. Sourbeer Congrats John Actually, the

XX% start exiting rate to year. off just it sounds the on maybe the margin, first like So, gross

Just there on takes some what cash flow? any to of on thoughts just positive a margin and the path the improvement puts on color and the

Brian McKelligon

that? take Johnny, want Yes. to you

John Ek

way to really margin you XX.X% of think operate results Sure. we've been gross preparing is business where the our we when do. of Yes, As we saw, the QX is indicative

in those next see we're We to we in some advantage of to that putting improve initiatives take supply as improvements year chain, place our capability, efficiency. bring which in-house now expect the manufacturing drives

and to quarters, some and on and gross that. things headwind margin You'll like was in prior yields excess recall, of the scrap related

that a higher gross putting margin on our supplement as cost allow coupled taking will mix changes relate to that the we're the revenue place our us, gross for more improve or time fact action which it which product over as to reagents, margin items, so, with year margin. we're next the of that And many those in efforts are over will so, to

John Sourbeer

of call. pullback apologies, But talked a demand, about maybe the was purchases. late with some And China, capital market a you the I broader a little like I think quarter little joining last bit some

there updates even on thoughts just any the Just out next as quarter you to year? look and on fourth market the

John Ek

a it's good really Yes, question.

look solid growth XX% as growth a are think across numbers. segments, year-to-date, I a full XX% market I those growth think year-over-year we the and obviously

bit, in year-over-year. said, in and As the at still below year. us the to to the the the performance expectations into the XX% in to been ability grow pretty this little for our The out we the grow what's board drill the growth Americas. that to and us year-over-year, grow business, market certainly others, in strong really market a Like mid-single-digits APAC been a range enabled year-over-year coming of to we've continued the the in strength EMEA Americas.EMEA But the it's continue hope we've really APAC at. of team some continue at that's that in across get quarter the APAC, challenge. And to interesting given Americas, well look been in mid-XX%. is largest to is has That mid-XX% doing able able

Operator

Our question of Sandler. Instructions] Westenberg [Operator from or comment from the Piper line David comes next

Unknown Analyst

This is [ John ] on for Dave.

any environment, [ you in capital impacting capital considering feel the helping equipment? like have equipment you more do you? rate platform, do think So, you affordable ] that that that's that's And Aptec a interest the

John Ek

around I more we're seeing diligence mean, purchases. capital certainly,

it's our helps. certainly to that where And like hasn't our So, think to perform. I a around impacting ability there's certainly do affordability the a It lengthening and of slight visibility platforms gotten ours. point platform

a we number want at as groups, meaningful that samples that's allows of customers, our CROs opportunity whether unit the other leverage costs, And over it or business CROs our instruments our the core really per at they're research-based think, labs look look helped of for particularly throughput to has do users. that the on them XX, that across samples coupled PhenoCycler-Fusion, XX on the week to HT can and a take platforms allowed service continue samples it's XX affordability The time areas of to XXX we to amortization us throughput unit day, those as really is, I grow and you amortizing think being a the way and the as a to that multiple a true or you samples XX offering. really as per our samples in platforms time.It's about where used fact business.

Unknown Analyst

And giving should I'm when you're but aware towards it. other any XXXX that Got that factors there not are any looking that? revenues, guidance to macro consider we forward

Brian McKelligon

the I think in terms just environment. than don't our peer anything macroeconomic different group, of

in strategy of terms magnified subsequent years, this importance solidify gross our and investing been really invest look certainly at generally, holding and I really solid multi-year second environment. XXXX our to growth, see think you at it's alluded really with our while about going Johnny be to at expenditures I top-line us, in half.So, really forward see our you'll that's to same really we 'XX, plan. the that holding think, And commercial in growth level and margin. and And team the our of the for continue as continuing 'XX to, 'XX a to expenses what consistent we're to while That thematically, then, in feel time, portfolio. revenue as like 'XX, in in has it's 'XX

XXXX. we think continue will that so, And strategy into

expenditures continued growth still guiding it's add we're half with top-line noted, real as anything So, eye that? in specifically, 'XX while again equivalent thematically, to you to a to second reiterate.Johnny, towards to not

John Ek

an through forward grow yet, Those I to focus. the rate it's And focus think gross rate. future. continuing improving at the that's not hold meaningful to critical that's then it's areas ratably investment. the how X No, And It's It's exactly to look are of It's year. for continuing given we a off right. at for us. the margin but your 'XX appropriate point, to guiding revenue

Operator

from line or of the comes from question next JPMorgan. comment Vatnsdal Rachel Our

Unknown Analyst

] Marta [ on the is JPMorgan. Rachel quarter. from This for on Congrats

to Just macro, dig you and more wanted the with flush ] color a the And bit Maybe are of your falter you to provide just for of can [ XQ assumptions assumptions. into XQ? placements light sort in on budget XQ. some assuming little clarify,

Brian McKelligon

Yes.

-- typical top-line it's I quarter, flush. seasonality, think question, QX about to budget QX.Yes, guidance we terms up good that do step right in our explicitly the fourth your relative guide heard it's a flush, And while XQ So on and now of question. a expect really I don't like in we on budget

event I or for think us, it's a either not flush it's not. a obviously, binary where

add in us, up a CapEx think being muted step dynamic And of our a I up, be to anything? fairly sort our going expectations think for of amongst in freeing is we're of to this meaningful of money because similar customers. XXXX thinking want environment typical more I the is similar.Johnny,

John Ek

only would map on we we expect thing for is add you as that's guidance, year. No, our how of think the you get and right the full is, QX which And I reiterated it. I guidance, do where we think into

Unknown Analyst

can raise seeing 'XX? for year, your from And able to then, were any your year? then, in competitors And we What expectations how you are terms of you pressure pricing much this pricing? pricing are this discuss

Brian McKelligon

increase, price this to 'XX, within Nothing year anything you rates, Yes. it'll I'd interest fiscal scale 'XX. the price economy it'll say, that's a but be a range. of that? fair think increase add outlier.Johnny, into account, an what standard to think like we similar and want I of sort is Taking obviously, in be

John Ek

years environment, high price. on price the And in think, I be I get able what seen to we've pressure appropriate. to we're and expect we mean, not increases with seeing, we're seeing No, what inflation prior that meaningful are

your of not a with that that's major question we're anyway. think part seeing in we're That's the I is item field. working not

Operator

comment from Kyle next of line Canaccord comes question from Our or Genuity. the Mikson

Kyle Mikson

far? update you talked of on or Brian, guys year us we maybe when your ago Because, remember genomics for like market? push like, quarter. so, Yes. talk I you Congrats can mean, on kind like, about a the as the into you -- about, RNA I like, so think ahead more gone And this are into, as that still? about how XXXX? we of I really, I going kind into are proteomics lean pull has like, thinking how and to look time, guess, first the strategy really mean, multi-omics just whole you back you

Brian McKelligon

Yes.

I term, a have it's absolute multi-omics importance to think, longer of solution. Kyle, still

earlier, really us, absolute at as think look talked -- we RNA as analyte. for complementary think I an I we look at we

in immense spatial and as XXX-plex and the the the a an value spatial proteomics.And example realization how a to Biotechnology study that growing in were it really publication XXX-plex the you discovery multi-omic to be of PCF I GEN out of recent that lot of the can that out realized discoveries we're seeing, -- comments, Just was able we proteomic that, with alluded on a mean, highlight of that. I much think, get does gotten opening

we at in committed RNA, not, on at at concordance absolutely the a going Kyle, more coming highly ideal still as not it's level, look more where importantly methodology. give it. So, a it color transcriptional RNA the we're at complementary to But as the look strategy either but approach, a analytes noted or to it's where probably looking to used bit complementary as to approach a Still at might high most look months. translational, earlier, leveraging little it translational be protein

Kyle Mikson

to on that your back of bit, kind just in maybe sense guess, it was sort to And I today. noisy and was, Okay. and make I bread a of asking butter? focus pull clarify what just Does pretty market

Brian McKelligon

top RNA It's #X having then the great would amongst is the a to et is, way our to our flexing, characterize getting at continue complementary, layering workflow, continued to #X priority The be simplification, in towards on be solution. throughput, deliver workflow and the as priority. priorities versus cetera, multi-omic RNA workflow improvement, I it

Kyle Mikson

helpful. I Okay. so mean much to but there, into go great. That's that don't was super detail

efforts I guys think you're improvements you mentioned meaningful making to reagents. for achieve margin

pull us into So consumables deeper that well now, for improve kind couple as so by like you or something forward statement looking a I as cetera. and and exactly Can expect underlying meant just could we've business next we and you dive would that through the margins in et just well? pull what year be really meaningfully of that to kind through, been can tell that feel that quarters for what of a margins while or that as

Brian McKelligon

Yes.

of addition the parts additional time are the with we releases, and of software I think additive. with is that. one faster higher continued enabling with part all That's growth that more of And sort compounding that X partners, than PhenoCode components becomes through the of talked the additional maturation and so sort obviously X.X the of and to of Part panels, throughput So, one. answer easier. that

of is, in part gross some more control I and antibody just fact, external third-party than take improving of did.The and amongst custody on terms components this includes conjugations suppliers reagent is margins, third-parties to In chain reagent and all rather that the of relying ourselves. of second of beginning a fulfillment

time And bill from so, the is to shortened. shelf customer

internally And externally that. of so to do amount both is the that make investments we to have and

supply we chain, panel and So, simplify the take overall streamline antibody down of that and cost custody of for individual on. chain that goods an while drops or

Kyle Mikson

given is install PhenoCycler using microscopes standard over be I'd that the transition couple than the kind or curious the Fusion. rather to past hear just of of legacy years. base

Brian McKelligon

bit a still are little It's question. It's good third-party. a XX% over on that

that XXX or rounding look them out so about of them, to up PhenoCyclers So the a attached a at Fusion XXX you little bit, there, it. XXX if of I'm are about have

with their as next go see So almost we that's And proportion. it through we Fusion. about of the cycle sold is every year, going

those then that's PhenoCycler X, throughout existing next part scopes year. upgrade So third-party of to X.And part continue sort we'll

So your hopefully you that answer. gives

Operator

question from comes next Chiang of comment or line Capital the Our Timothy from One.

Timothy Chiang

being last obviously a pretty guys presence you just SITC week, there. at had big Brian,

you you a little the pretty well. mean, big I conference? Fusion leverage SITC lot reception a post talk of of rollout had bit that? sort the X.X positive How did guys you do responses? well-attended You a Could as about a get of

Brian McKelligon

publications. at Yes. I positive huge booth, the but that not some the events at is there poster to, also response, been might the have response a of mean, only to you

that #X for simply targeted customer get a current leads most that an Tim, immuno-oncology. really thing, of field our base is number it of oncology, the think high in amongst out platforms is you the I the of audience qualified

that market on in more PhenoCycler-Fusion, a leads.Obviously, presence, companion it, emerging size in the you that X.X get lot second that market the in get have of increase clinical the clinical in and the given have researchers of multiple absolute our diagnostic thing conference, quality the our we the but SITC at large HT an but that the is X.X, And across it massive only PhenoCycler-Fusion out #X there's researchers you that both the visibility and visibility. is translational leaders segments, because interest benefit the not rollout So, discovery not that the high out of with interest are absolutely that of opportunities. just only get

I'd getting biggest say, visibility market So continuum, is that second value. that the across entire

Timothy Chiang

your question your And Obviously, supply I road, from. gross gross this margins where maybe you XX% some down is Johnny. benefit quarter, that at you mentioned to margin the efficiencies and a you're follow-up just mean, chain get can Johnny? for starting

John Ek

it's So, of several margin over I think, mentioned, comprised evolve sort as of I efforts gross will that time.

are sort of to margin quickest improvements cost and chain. first on Our the supply

as initiatives As Brian north our reagents, how more becomes improving. annuity as we past. for as there that next X,XXX clearly the a that A as couple margin revenue becomes about hundred I even of increases right the leverage drive something see think the years, margin right?I points that several fully well margin that in per now, sort the of more of to field move as near margin as or custody things, of or I've sort But basis weighted have this moves heavily year can see moving. those more we of reagents, and said of a moves already started more is make again, long-term we towards in becomes, some you as mentioned, will That the margin, chain of and pull-through box, it's well instruments the that important term, continues XX revenue to talking now. drives improvement shift, we're but that margin have that in the as cost we north mean, making

Operator

Thank you.

question comes from Mason comment line of Stephens. the or Our next Carrico from

Mason Carrico

already Sorry, if asked. been up these front all X right. that's ask have I'll

First, we should services strong taking has obviously growth really be anything how year. are forward? for business Growth this there there about that outlook thinking going been you the Is the Or into and of do keep segment we've consideration model to that you really business been to the momentum year? continuing? that demand seeing thinking when expect we're about how your next

Brian McKelligon

Yes.

as On I there's install obviously But drivers, the the services alluding warranty drivers expansion biopharma continued front, of But are to our of solution advanced out, revenue. the material and current partnerships obviously base say, that level that don't think think, you're our growing I revenue, service real at that I'd X growth diagnostic we guide to, but report service granularity. the some and companion qualitatively of business.

opportunities board those partners we the and higher biopharma CDX really growth services opportunities, focused and and on continued taking in-house product incremental service we year.The to beyond. segments, would commentary, are both a into And with with software services, growth some leverage begin turning qualified CRO giving revenue services as probability those across next contributors, say, and I we is, I increasingly shots thing this them warranty increasingly our our in the of the partner from workflow also I have Mason, clinical continued expect other and the the working lab really us amplifier So, noted the model. say have in to the in reagents translational through expect network more higher more upsides while the more those of partners we partners in our provider as given to have X.X and really are the trials, are at solidified opportunities 'XX improvements.So, we point across with to incremental CRO an we clinical while will would those our ongoing, and research more of that a we and that CDX with

So, your it that's but fits took how it. think strategically, how question with about we in some liberties on

Mason Carrico

the use? And if thinking higher when is panels are here. X more PhenoCode utilization CRO adoption How rolling that's regular your No, some could helpful. of how I begin about trended of take those and customers until you into could the timeline

Brian McKelligon

in your of to CRO good really to cycle upgrades we systems That's having the in And to embedded Panels question. to into build our release the in, XX's discovery want locked ready those latter about the both utilization. question the drive really PhenoCycler, rolling panels on really with a it's kind of our a network that to higher those desire leverage the explicit panels, HT panels service we've weighted PhenoCode And this that those Panels, because the our Signature were the whether strategy. because what or network, on Signature of have that of part talked ] second-half provider have having place qualified grab sort and on [ is 'XX.So

like to revenue to, All of top-line year reagents the to as the reagent that realized begin you're XXXX going that does point as growth. feel really are when alluding to, we and those continue to contribute

Operator

closing questions in for I'd back At to remarks. turn I'm queue. the like you. no time, McKelligon to this the showing any Thank Mr. additional over conference

Brian McKelligon

Yes.

while intention. systems, said, reiterate in Just a questions, they're #X forward very obviously, help so at to opportunity. your we growing really and to foremost, path later-stage we our partnerships continue simply, translational content reagents securing basis in positivity.And really flow maintain the clinical better cost revenue our look growing X-fold. overall everybody our #X, we is cash workflow, for your portfolio solutions to time, line, and and #X, is own growth up and I think reagent both continue and level in themselves have we to time, the first time go both to our are very provide confident invest to to I reiterate a and thank are real that of drive top in in that point this of And what your excitement really faster. Johnny as seeing continue the invest answer portfolio, easier to will get upgrade while our And in operational that out software margins that to same clinical our to excellence those priorities, increasingly

real And in existing so, the upside years that financial our look at we'll model. to forthcoming as

in real the you is X to we something for this forward everybody all the Those that, market of that our TAM really the seeing thank are legs near-term. and I strategy.And clinical the sort look think with that to of time will growth your soon. really I prove

Operator

concludes in conference. participating thank today's This Ladies you the program. and gentlemen, for

now You have disconnect. day. Everyone may a wonderful

Akoya Biosciences (AKYA) 8 Nov 232023 Q3 Earnings call transcript