AKYA - Earnings call transcript Q4 2023

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Operator

Good day, and thank you for standing by. Welcome to the Akoya Biosciences Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Priyam Shah, Head of Investor Relations. Please, go ahead.

Priyam Shah

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

the A Financial the have and On the available fourth released we on Chief December for the today, Officer; XX, press ended Executive is XXXX. financial Brian results Johnny of Earlier company's Officer. McKelligon, Chief website. quarter today, copy Akoya Ek, call release

that performance materially forward-looking to statements statements include call or XXXX. relate like factors. I'd remind that future during to or the Act to are statements meaning this make federal the are from call harbor statements implied Actual in a expectations Before laws, to or we begin, of forward-looking may results Reform for those of forward-looking management you Securities in of statements. the Any the within which expressed will Litigation differ provisions this Private securities of made Safe variety that predictions due results contained events, pursuant

list the the a Securities the only should risks the the and you to Form refer our of or and X, turn obligation, section are Factors including as be XXXX. filed financial not identified the call to Events. With with today, or in aware Investors the please business, Commission, under audio as and We Brian. on in information Exchange XX, with over I'll risks the Akoya's any required and by is these statements, now filings on forward-looking annual March uncertainties and intention for website year otherwise. live U.S. and any XXXX, report or that contains Risk only except in future associated of of of of XX-K call description For call will are disclaims X, events archived the section these a that, consider urge today the December ended performance. This revise to or future broadcast estimates whether considered factors be portion heading, guarantee March the you today, statements Akoya be this The conference of law, our new projections information, update because XXXX. later time-sensitive accurate to to

Brian McKelligon

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

During today's conference the begin in giving latest full product of fourth year provide performance the into by our call, XXXX. and quarter and I review will broad a developments will I business in our advancements insights offerings. our overview

our business. an into key future outlook Following of provide the that, deeper will trends and Johnny for financials, the go

As greater cash detail will touch while call. costs we Johnny $XX.X a quarter enabling of preannounced in million, parallel gross the this we year. bottom top expenses representing the at manage and the prior JPMorgan with a record-breaking year. XX.X% in growth expansion end later continue fourth had a operating to X% fourth our Healthcare line and growth and We are to Akoya of we by the only XXXX made growth operating margin million we to revenue the year, In and substantial strong forecast, exited prior growth leverage quarter. with this more strong XXXX, our from to margin both our projecting of fall breakeven revenue XXXX of top Conference cost to our a XXXX structure, expansion year line in year, our efforts throughout annual of upon full limiting January, flow growth year expect $XX.X XX% the in to in Within portion margin strong from revenue line.

workflow Throughout to the and invested at and spatial the to strategic markets covers areas, entire nearly stands XXXX, from largest base discovery clinical. installed cumulative spectrum throughput biology expansion, in in of including menu and reagent field Our X,XXX now we simplification of key XX% contributing instruments, the the ultimately the pull-through these increases translational meaningful investments as return to from revenue the on year improved across in signs expansion our reagent we and revenue reagent fourth the software collectively grew period. continued quarter, capabilities, prior saw and platforms. In

growth period We that solutions period, over has to prior and will of adoption our that by market report achieved solidified pleased of have XXXX, leadership to peer-viewed we peer-reviewed in milestones our short Akoya a continue pay customers. Akoya utility and has year citing of as year-end important widening Akoya's a position the time demonstrating are now publications X,XXX technologies the XX% from dividends.

will has our publishing and of offerings. an the As scientifically and highlight noted, largest continue actively promote and future capabilities that Akoya to current customer base the

operating we end. discovery to clinical by provide applications. And breakeven high of our high-quality cash at with workflows spatial level deliver is noted, path end-to-end from year's the throughput clear that any finally, flow span Next, solutions phenotyping complete result, entire to solutions multiplexing. continuum a as The

efforts and been operational to deliver workflow and R&D high-value efficiencies have menu enhancements expanding an drive Our and applications. optimized of

and product partnerships. review me line key Let our X high-value briefly additional improvements recent

First, to range highest the a new in week the few a X.X our These broad industry noteworthy released capabilities, both a enhancement, translational PhenoCode throughput our the customers. research X-fold as upgrade content of upgrades of resulting and for were PhenoCycler-Fusion in main market, upgrade customers quarter. in a from the setting have expansion increase samples many upgrade a X.X and platforms XXX. In the our half revenue consumable increases to Customers platform recent spatial in fourth the PhenoCycler-Fusion multiplexing milestone, Fusion this More Akoya's to providing rollout as Like received drivers of ongoing X.X, of available year-end standard multiplexing clinical field across as of than similarly now workflow speed. XXXX. in parallel, represents menu in discovery the a up the proteins transformative PhenoImager just we capacity, twice compared across the quality. the HT establishing per X.X a process can and represents data previous X.X

groundbreaking announced We recently also X partnerships.

First, the solutions. with Akoya's Fisher we deliver combining advanced our biology Thermo workflows Fisher partnership the by ViewRNA spatial spatial announced technology with to multiomic Thermo

Second, along announced algorithm AI spatial This allows integration we with MaxFuse, data. and methodology customers data RNA the release directly data Cloud integrate proteomic the our next-generation reinforced at analytical an to Enable of one platform. with Akoya's our Enable on learning-driven Medicine cell Medicine, single multimodal analysis, into partners

multiomic is As creating set. drive and a such sets allows single first spatial, informatically data, data platforms This This result, cell which not proteomic data our RNA-seq leverage these from solution profound independent to likely the spatial many data, Akoya's discoveries. analytical RNA-seq is approaches spatial cell new integrate to single Akoya's customers' derived to multiomic AI-based of an platforms and platforms different transformative is to using come. customers mapped

Our partnerships to market, we lead continuing across remain committed position further industry's and segments. and to end-to-end market strengthen platform the in offering the providing lead solutions improvements phenotyping powerful to spatial solutions best our the market new multiple

certainly in to horizons, While biomarker these a the discovery witnessing emerging acceleration expand conjugate the solutions also continued becoming of phenotyping spatial antibody and we efforts drug are clinical new rapidly immuno-oncology growing clinical is and central expansion downstream, technologies. of our market. Spatial utility

revenue clear we this compared services trial indication growth late-stage clinical the additional as is secure to of XX% partnerships. in Our prior our year a

key the diagnostic platform, clinical co-marketing of our demonstrated of partnership and our organizational are companion this all Acrivon Our PhenoImager partners the our with the of drivers part with expertise, HT capabilities business. Agilent expansion of

therapeutic OncoSignature Now and in designation results and Phase Device trial we Track on importantly, on platform ACR-XXX Fast designation clinical through interim ACR-XXX, Breakthrough near Acrivon lab our their for also received the forward assay HT their look future. to the run CLIA II

continue ongoing commercial support top adoption research a serves success of help expand translational trials. services Akoya's white that platforms. glove to as and partners amplifier clinical and service in our We The to advance ensure the organizations. their includes studies provides qualified contract helps qualifies offering platforms network provider Akoya these and to in our valuable lab the network on industry's

PhenoCycler XXXX translational, Allison, visionary a Anderson. These and Sharma, laureate successes initial the the provide established Accompanying scientist inform MD at him applications the X of Padmanee the Advisory Akoya's co-inventor the global his to and Directors in on as We Garry to diagnostic physician the the Board founder that of solutions. Dr. serve Akoya's preeminent and as thought Akoya's from Advisory MaxFuse James transitioned these Scientific Board well Advisory father of clinical direction Scientific will will of our be the attracted Board. of Board. Dr. Nolan, Nobel Dr. Chair Akoya's as immuno-oncology of and of biology have field inventor ongoing are has immuno-oncology efforts both in strategic role in spatial currently and expertise members revolution, new immunotherapy, and and Scientific newly of leaders humbled immunobiology join appreciative and

capital business in industry, equipment XXXX. our initiatives. like macro revolves We key observed Lastly, around sales some the least in ongoing of In first the purchases, impacting instrument X prolonged for and cycles through others our to we summary, in challenges quarter XXXX continued pressures underperformance focus persist these at anticipate China.

pull-through. First, workflow in growth in on and to revenue expand applications high the PhenoImager the to resulting improvements reagent system HT our PhenoCycler-Fusion and of continued increases implement efficiency the drive continued

care. With high-value Second, of drive our menu cash will I that, to margin efficiencies, call to gross improving now by our the our on to results. And advance partnerships achieve effectiveness discuss by third, diagnostics clinical goal companion financial Johnny focusing a over operating patient Johnny? cost breakeven continue flow to and of XXXX expansion. turn year-end achieve to delivering

John Ek

Thanks, Brian.

compared XXXX highlighted, million, revenue prior was the XXXX XX% a growth Brian the XX% from growth a Full year. same the was As XXXX. of quarter for in $XX.X period fourth $XX.X year total representing revenue million, to

services. million growth XX instruments, of total our PhenoCyclers the revenue fourth from software generating Product sold We totaled including channels PhenoImager million portfolio, for the of was were seen and across products XX XX for and revenue which $X.X instrument instruments, the and of $XX.X were strong robust year-over-year diversified portfolio quarter. and revenue, quarter. globally reagents Our

results trend near China to expect earlier, As macro and pressures this the noted our continue in underperformance and we Brian in continued impacted term.

combination of notable improvement of this to PhenoImagers. to now start increased reflecting instruments revenue the and from PhenoCode ongoing million sold with XXX at the range and and of a $XX,XXX PhenoCyclers XXXX. $XX,XXX be including remainder in instruments expanding installed the PhenoCycler-Fusion systems and per The prior X.X a PhenoCycler-Fusion portfolio. the Fusion, of the being of global growing the of models in now is a PhenoCycler new and Our XXXX, throughout the HT base combination XXX directly are shipped Approximately with both in The have being utilization the was start pull-through sold expect Fusion base instruments, utility instrument PhenoCyclers of workflows XXX for upgrade a drive we to pull-through in in a across as HTs an upgrades. delivered faster which X.X the and period. been year-end and fourth XXXX, annualized PhenoCycler-Fusions and panels both the to the a can $XX,XXX of the quarter, in in base with majority PhenoCycler of field to to half menu HT. quarter This have remaining of range. installed instrument PhenoCyclers the field faster the system. reagent panels for range high of commercial All applicable as as have high model comprises the X.X upgraded could of pull-through and we compared increased reagent total and increase expect of combined growth field installed the the since low year the the launch workflows paired This we the the XX% total fourth Fusion majority X,XXX reagent from XXXX, the now A annualized HT attributed $X.X XXXX. We are is full XXX in of

We studies The period. mix the for in pair a fourth field, revenue and through service and Fusions through in increase to an margin quarter reagents XX.X% to to the XX% and results. existing and fourth gross the quarter, addition our role planning positioning $X.X rapidly biopharma $XX.X our prior us field operations period. growth and the million utility increasing pull-through a have we warranty as other fourth from with efforts. timing upgrades value our portfolio contributed manufacturing, the a drive continuing period gross substantial our to lab supply in reagent million quarter, are their more for significant business been Services chain with approximately instrument services and in our the basis services instrument for X.X our enhance of prior strategically platforms PhenoCyclers versus and the representing and refine XXX was as revenue revenue margin customers, the segment profit Services over more totaled growth year play strong over fourth higher margin of in XX.X% points have the expanded year new prior XX% lab contribution was year quarter revenue of business partnerships. Gross across

we leader reagent As OpEx we leverage our reagents to optimization year expense that for of expect while ongoing year, the record-breaking couple margin we our awards while as year been cash solidifying with and year the on execute in strategic quarter of XX, biology. as pleased full XXXX. In Total restricted drive expect unvested cash operating top have we and line the of revenue report we manufacturing expanded has efforts, as margin of in year. indicative breakeven instruments, as efforts XXXX. a cost ended Akoya's gross to of quarter for totaled of lower and in points mix, us and quarter diluted efforts grew $XX.X equivalents. to and prior X%, the are million leverage spatial the XX% only $XX.X position we line XXXX, from prior drive million million identified and growth million, stock XXXX the the revenue installed indicating We for our a are a range basis of investments, projected XXXX with reached to $XX.X industry fully this our achieve over increases another very our spend XX.X nearly costs and throughout December our top meaningful outstanding to compared the prior further revenue growth. reduced further expansion base throughout shares options including Through revenue exceptional annually. Operating of hundred million grew XXXX. impactful gross shares, operating structure approximately operation cash $XX.X Common recent of summary, an XXXX X,XXX period, beyond now our continued $XX.X flow pattern million in exit in XX% further outstanding impact our helping

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

you, sustain As $XXX range important project throughout such, beyond we we million back are confident in as our this growth are ability cash strong million to our very providing At to revenue exit XXXX. of we goal operating time, to XXXX breakeven a guidance for we reaching and of XXXX. And Brian. and flow $XXX

Brian McKelligon

as as the for forward drive developments we to of remainder report Thank throughout to hard look flow. product and We're thankful pleased you, across call a Johnny. executing our excited the as multiple towards Akoyans well the well the markets. At point, support customers we as solutions shareholders. dedicated Akoya and very positioned the clinical for new Operator? this remains discovery that will of the opportunities fellow for in open to spatial and questions. positive year the We're work our portfolio. of cash We objectives our business strategic we're exciting quarter about ahead strong new announced on lie our growth deliver the we for

Operator

line [Operator Instructions] of comes from Guggenheim. Subbu question Our the first Nambi from

Subhalaxmi Nambi

think manufacturing And the is I takes, is as year? of in want about big quarterly think And margins. pressure? does puts cover transitory will term, should this margin topic bring pacing the bringing and benefit first in-house. about a term, I your for throughout gross The one gross these we this How margins? In long towards near And to the follow-up. lot gross one how progress have then reagents a we

Brian McKelligon

This for positive the X Johnny gross speaking, you, some thank I'll the is of let your margins were I'll Brian. a of dig Subbu, things. one question. -- Largely really let mix. maybe quarter Number function for details. the is the into

one revenue revenue year a You That quarter in that that or had one large was a fourth we the over able of our of with that of number putting the also are at our to advancements in the infrastructure the efforts obviously, we've now those and was so. higher a reagents and the second we're lot contributor significant expansion reagent the been And a much their step in saw our reagent basis. of last margins. And where revenue is a lot programs clinical result significant a place cost as leverage really -- service of took up. we're

bottom does it the So, revenue grows, as to start to that contribute line.

In terms manufactured are longer-term all contribution. And manufacturing now really the maybe built color we internally. and the the that facility that the And were reagents the put is then to beginning other on out, some just of in-house, gross throughout shelf there, specifics are the on bringing margin for let the is I'll year. give of margin personnel really Johnny driver gross

John Ek

hundred point some ABS As to a mentioned, margin a lifted the as you that milestones Brian we basis which, in QX in can see had healthy couple in from achieved business, contribution XX%. QX

gross in XX%. that of the you operating, exit the ABS sort of the XX%, sort Our and operating margin, exclude was really if

bit year, of linear of we by the pacing. as the so which transitions would factor sort over of it course. Brian a at of as an that. But and gross efficiencies be from ratably will in-house move It the and look pretty may highlighted, some impacted mix, operation, be year. also achieve ABS the I to certainly events It scale to begun much revenue of expect that the And so is operating have lumpy happen, we how move of as start a really time from through that through it's we a and margin, more manufacturing in-house as more will -- any

happen a than reagents which As maybe it's it established are linear the kind stronger to mix happens where instruments, hundred quarter allows of pacing baseline to we 'XX. exit, basis will through from of the that year, cetera, a our move. our But exiting so couple we've points for to relatively have get et movement a generally,

Subhalaxmi Nambi

at you reagents, year lastly, expect First, guidance? PhenoCode I'm Discovery what in Regarding, you contribution is panels, in embedded point year? largely would these full the CRO increase then accounts guessing, material? which expected the year the Signature to in an what this the penetration second, is and again large of reagents in your you And expect more do contributions become and pharma And

Brian McKelligon

Yes, it's a good question.

think I beginning we're strategy. content benefits the our some Subbu of to realize, of

think services, half think we're studies. When we're Biopharma is very immuno-oncology. to doing question to think ABS, be beginning why on I Those do Solutions large-scale yes, going your an studies, to scaled least for of our to that at there ready-made I at on going our specifically throughout content the within our throughout panels, where we're biopharma, to HT the CLIA second respect that group. our Advanced the and a of going our it's signature realize targeted to it's to year. to on year. around question lost. and see And CROs So, your really or be One when -- the I efforts, get we start -- run -- -- we to contributors on I now to us reagent one benefits. get some those may referring expect where it the the be continue clarification say With point panels of accelerant we're I we continued expansion lab Subbu really field think be expansion are some to don't

lab really is ABS or So, synonymous. services

Subbu. So, thank you,

Operator

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

Kyle Mikson

Congrats Brian more, quarter. kind want break guidance and down on of Johnny. the the I to a little

that could some though even increase given to on upgrades? of of this $XX,XXX year? inflection here, the be. and like of that it could sounds these or at the another by then year So, great what in launches And year, least then slow by 'XX assumptions And the this there. seem placements the services, At tailwinds to least seem most a communications that's on like end recent seem pull-through, down the be be backlog point to the

are China, talk until Just point? going that maybe obviously, you in of you at about about course, this that second the thinking issue to then, of year? like And the XQ, visibility an be half have but how

Brian McKelligon

So, those if I and let know. think all got I me I Kyle, don't

are So, field going to the upgrades. X.X isn't slow placements, those down

companion of a more the we think I our the upgrades. pull-through. that think strongest And will just revenue to terms contributor even was percent is those in of reagent significant make course taking projects type strategy -- installs of half. realize one you acceleration CDx in in It having going securing that a really the their our the on It saw they're of clinical do to that deals. in portion it the as we is in those lot powerful we see achieve additional the nature a much products value. of confidence we're bump clinical our your portion services because later-stage, the of and business contributing of stage. queue, probably projects question, quarter-over-quarter, we the being see of securing. we're do diagnostic to solely growing business partnerships of trial number think we'll year, much higher of that that They're XX-plus indicator for of we continue we of future. the And And higher-value later a reagent They're us is will near give climb. The assays second that can of our saw externally goal that that the

Kyle. I got So that's you asked everything think, of I sort commentary, the I on everything -- think about,

Kyle Mikson

Yes.

have sense you if half on also of the year? any back China the on Just

Brian McKelligon

think in look goal you there assume breakeven, within count not challenging. lab And flow to that with aspirational half a pretty so something achieving is peers, incremental could we cert got is diversified if of advantage just portfolio we're first revenue of it's And I we've put still from cash the as and profitability operating Look, recovery, not takes that many at risk. our services context to reagents that going the be consistent on. goal to But at half. our our Yes. second we that going instruments. to of aim it's do of that It's

top So, margin that goal require business trying a the very a be and having goal line changes doesn't environment. we're to significant balanced in in current

Kyle Mikson

that's the Just a for of Enable, ecosystem a to the partners too, like quick many one you unique Enable, heard you So, of partners, out Nolan the kind differentiated I on talking a software like definitely through of just of like if that. side wondering just from with with that. other MaxFuse clinical just one-off curious that just walk first bit you in more, perspective. other algorithm just addition maybe solutions about Garry Could then on And clinical double that? right? kind about have that roll click

Brian McKelligon

least data leveraging RNA-seq a the MaxFuse on using call, the spatial image ChatGPT researchers. protein as say, brain, high-plex and effectively, those I And Look, allows that sense would this by you at I think qualitative I bring. play you non-spatial allows MaxFuse the near of do to single and some these for discovery your it with cell kind to largely can power algorithm sort data with have do. simple the of data, at We way term, and PhenoCycler-Fusion that sorts of approaches you my informatically in of you of that if algorithm. is or Kyle, I a take creators, the noted really you look the the make what tool

parties Akoya's It allows data set to internally data is data that the our everybody exist one on time, for not do validated PhenoCycler-Fusion X and multiomic that rather astounding pretty a at third a has and a whether deep would done sets study Nature I encourage or quite that they Dr. really single Nolan your make to it spatial. this So, the it cell, but extent. this. papers to go read customers leverage large it's to with to leveraging

to informatician this many to at think we'll So, manner I our do -- of a do continue as a additional others and get of Enable implement in skilled to approaches is type partners come that user-friendly these vehicles or knowing like look approaches regardless. can

Operator

next come the Instructions] line [Operator Savant Our Tejas of Morgan Stanley. from question from

Tejas Savant

things done in in kick third quarter. almost, off sort came that I that in a right. fourth some Can bit Or driven I well? just competitive of macro purchase Specifically, decision high-XXs, in think getting that the to if of you've out sequential in the placements remember, it in any I here, was through Even on little just think the Brian, Was walk it over basis, quarter, you a light landscape shift by there Lunaphore. questions mean, been one dynamic? China was entirely the on called and those as you we've cycles elongated here? I is the us

step down you could dynamic that sequential in in So, just -- placements. parse curious as the if out any to

Brian McKelligon

It's you was certainly driving mean month we thank former in quarters were what becoming it. X. saw in Tejas QX I question. for QX the the backloaded increasingly that's Tejas, and

largest -- that is that's largely the So driver dynamic, the largest there.

lot them largely I with result of of think and we'll of think I is, is sort the the how getting visibility and having going. a marketing see being because just integrated they're the Bio-Techne that competitive dynamic more coming I really And shakes power. quarters Lunaphore question visibility a out think, on over

Tejas Savant

environment, weeks, here just well. European some around and academic continuing resolution a budget terms Horizon couple then questions inbounds U.S. in over the you've as of and last the just in the cracks of And few had in

lot peers. over-indexed like are a your obviously You spatial guys there, of

academic you're the moment? So, curious what customers from to what just baking hearing as into the at guide you're your and

Brian McKelligon

into we've market what capital prior a on I think the certainly say, in to the Tejas, Yes. were commentary Kyle, of to and would continuation QX I feeling really that similar pressures guide QX we to our my is all tried bake side. existing

our to like now. be little perhaps approach. Feels resolutions more that's decade. over It's for I we've living in just on So, bit continuing think questions a been going and a acute NIH budget the

control our at platform I how Tejas And immuno-oncology, macros, we're opportunities, I the are and utilization so arenas our that prone areas where of being which of the looking that's is is of as less realizing kind impacted by clinical our successes it. on to some advancing we're in noted well-funded What which reagent is in call. think are and the in the on

on going the to of are we're those to macro are, for some focus areas. again, prone continue these to significant and us. They less dynamics So, ROIs

So areas any mitigate key that pressures. instrument focus be our of to will

Tejas Savant

I and about perhaps optimizing focus next but of will see know solutions, year is happy final years in over map, operating for we Brian little growth, how one cash the driving pretty are development then cetera. the product bit 'XX Johnny, breakeven a you, And to for Brian, for by shifted Johnny. the breakeven in it existing be sort like of road cash year-end. XXXX one one, obviously, should But fair couple flow And consumables one you've think that not et of assume to full people guys? But you 'XX, flow the here? to first

Brian McKelligon

the first first the part and then take second. I'll Johnny, So,

partnerships, whether determined. publicly be finish speak So, our simplifications you to those think additional the product of workflow and we not priorities, over year and or throughout is this development to line on can getting clinical focused getting

there that have a is will we now. think company. platforms, are are correct, system menu longer we one of the But of in have terms that the areas Number X IVD-grade I an is So for priority term really you're products. because opportunities ensuring that

solidified. So, map that is it's that, ensuring road

scale, at extreme, On database are market, other we -- large-scale studies. is to large-scale a the done we to place going upstream be in discovery biology going where spatial are already studies, at the

a So, sets, reagents they spatial leverage they that true able is other seen algorithms can and the larger going that do at there powerful to studies place getting to getting larger tools like to these where large MaxFuse in the having direction and go is we've market. be place can are which sample to at all And this support a that, the scale. instruments where elasticity life go, sciences data is

the there easier and samples. be and use affordable make systems You faster, will to more more

us. development of full platform term, So longer X those are the for additional avenues Tejas opportunities

John Ek

certainly or 'XX, we to we XXXX, top margin. obviously haven't on question your to Tejas but guided don't And expect line move to

really, full strong, which absolutely cash be to in a expect from sort those be drives to full ops to maintaining that's 'XX, a flow good year positive. able which flow from do, it's cash continue a We expect of grow. OpEx, reasonable continue about ops, to to year And we

So -- If expect and build the and building blocks themselves. where continue sort we that's that maintain it target, absolutely. of OpEx our to, to we execute

Operator

comes the Sourbeer of question next from UBS. Our John from line

John Sourbeer

I guess, you're initial you and more feedback I from there? talk could the on seeing is ViewRNA was the Thermo little capabilities? announcement on if wondering what any assays. just a demand And customers with the bit multiomic

Brian McKelligon

Yes.

protein for I to time, think us high-plex our complementary order, for in the look we John, that's at for reverse thank and of the your technology on as question platform you kind RNA something PhenoCycler-Fusion.

high a resolution are It's that. that's So, on platform. RNA solution level theme. that cell is really plex to And suited ViewRNA do is an we really a amplified focused with consistent perfectly integrating resolution technology the that single at

And and out. so that just to We we're integrate it. beginning announced roll just stuff

a is right hard of work now. So, the happening lot

those more of be technology a probably RNA strong. our -- is think we'll talking some at AACR. And the have for details complementary to about demand from I customers

it ViewRNA own addition leverage data equally not solutions. we'll people their a how implementation, algorithmic out, MaxFuse both data, the just get think informatically-derived how do like I important and transformative publicly plays on multiomic to see John, approaches I but perhaps, available represent think but

both So, important. I think are

John Sourbeer

in opting Fusion follow-up, with have a as you And who started customers 'XX.

some have X.X you And to runway users could you just think upgrade. go? guess pull-through utilization? have XX% at these here I the longer full you for about talk Now, is think term hit where you the of that What

Brian McKelligon

pull-through. asked Kyle about bit specifics on little a now realize I

or high-XXs as the as So, we year kind pull-through X/X the now, the that right year. on last this PhenoCyclers of sitting of Fusion. And of at John, kind the We we are get we exited all so. probably have look somewhere about those noted, upgrades the And through like in of most we'll Johnny high-XXs with around exited as system, year. throughout

continues into Xx I number. XXXX, think that high-end line at our throughout think that get doing average users XX, plus pull-through are I easily XXXX that realm. operating Many So, XX, we trend and of to XXs, can

particularly for really us users is seeing, amongst really John, an to to more. all even of with the there's think we're I the them. What So, our pressing start curve raise PhenoCycler-Fusion to need plex the real X.X opportunity press on level a

And that more XX, XX, at samples. you're So, they're and doing pull-through XX X.X users with are plex the PhenoCycler-Fusion that's why the users. highest

all that about X.X. moving those to of up it's customers So,

Operator

line Our of question Massaro Instructions] BTIG. from Mark [Operator next the from come will

Mark Massaro

first XX% preannounced calls million think January, on my you million, XX%-plus. $XXX strong it In talked a one is guidance. I I guess the XX%. to $XXX in XXXX. to on about for Congratulations your

macro maybe in if stronger you're obviously, in with just So sense that. cycles? or be been for just can to in to And other I'm Obviously, with territory curious a then give geographic that's the for pressures the related somehow elongated you a you environment factoring XX% us respect China or might line sales demand U.S.? regions. the

for So, have that this on should think just give year? sense you how perhaps us anything a geographic we And growth? about

Brian McKelligon

and those question appreciate do time. Mark. your I'll Yes. I thanks, your and

you across America, trends Korea the of 'XX. for then to was high look terms will if as there. our EMEA North growth It stay And low-XXs, geographic team think in don't 'XX. to sort at I to single-digits. Australia, in in the that it to its compensate probably realm. et these because high cetera, be And through of to get in -- it'll go noted, the Korea, the in strongest. continue APAC. And South growth the was strongest contraction Japan, year-over-year I able was of was kind was And regions, meaningfully So, the think and regions, XX% we think you in change the of most and was APAC like pivot other Mark,

I think those trends continue into 'XX.

I when largely are secure intended those embedded to do really like occur, additive services think a be when additive those more you're to if even to though, Acrivon, growth of more Mark, additional that's of portion Acrivon certainly, But our range. And the do, biopharma, for CDx One pressures a thing in low those large-scale of being expectations we'll for pronounced. right that with within like those we clarify account that would terms partnerships our and end may range large of and the our is guide. deals, that. another continued be if business. There

your So hopefully, answers questions. that

Mark Massaro

last should And demand tuning our could -- then And Obviously, with seeing this think you're into models, terms up then about little as the customer Discovery Signature in any what my we're reagent growth? to for question, you about PhenoCode maybe a X,XXX a zero we how you're where in panels? year way and year is of bit systems. coming about

for a growth you us prior to might relative how reagent give sense think years? track Just

Brian McKelligon

of how give Yes. I be much guide to Johnny product I'll speak don't Mark, to detail we it's in is saw it driver QX terms are a so would basis. in to want million going from because dollars was let But $X.X that our say, QX. on quickly, we reagents growth as probably $X.X because you million largest I think moving and in

year. solutions the to market. many not benefits beginning of And see of trends the workflow the that those maybe you we throughout put on So, continue the we're linearly realize think can then we

don't add want the that's specifics know look of at on any I reagents. to color I Johnny, that. And if you would more So, terms in how

John Ek

that the of moved $X-plus No. and per is taking $X which focus these expect million that of help we steps. into as goals quarter in And back of well 'XX really million said, that what 'XX, sort Only -- highlight continue. natural drive It's certainly, call million have will $X will that sort to be margin and an think you we to it 'XX. important it that in the to exited look say obviously, to I range in to 'XX in was sort

Mark Massaro

that one in. certainly on comments. recent can M&A. progress to of Great There's Actually, breakeven if expectations sneak 'XX, getting by cash of flow ahead decent operating been a year-end from year I a amount more

it's you? smaller. there, environment flow as you're been just the are you even broadly. variety it's of corner to maybe breakeven, might tuck-in assets to the about But certain if are Some will, And larger, the turn that about of been they M&A some be there cash if enticing of out speak, to

Brian McKelligon

Yes.

couple Mark. a got M&A, buckets of I think you've of

find think I kind Olink activity to falling continue And think then synergies as larger really like driven into those they're deals way business. some you've companies a trying got I to these got that's buckets. around you've deal, of capitalize the the to X

terms It's #X priority continue our of -- then then need reagents delivering biopharma in Mark, 'XX, and on in that us, just for we of that the center what with our stack. for expand have think need additional technology growth really we securing I and everything the at our to to business. we

at of resource of that our are and be trying So, an with is better need we method. would that opportunities head there's M&A. nothing to and kind on said, That immediate reasonable a always keeping John swivel in do a looking that

Operator

[Operator And come the Instructions] Vatnsdal our from JPMorgan. of next from will question Rachel line

Rachel Vatnsdal Olson

for potential this rate and downside And model for year hundred placements earlier placements. then Should you year. on sources that case this us we instruments that your what run few upside on base walk just assumptions year? around are of want what of I you to the a well? of follow-up about year a this are the So, talked Can past, XXXX? questions through per the kind In some as of in

Brian McKelligon

Rachel. you, Thank Yes.

Your right. numbers are

get in to with expand our think content capacity roll as And we We solutions out. as certainly increased we X.Xs hundred more continue is the that. reagents wouldn't our get the I I software their a fully upside upside, then the think MaxFuse fair. have as utilized and we couple think prominent the more on become deal probably I specific like on panels still

year additional they as or our base tried deals. to continue like secure -- hopefully noted that would into upside. whether partnership portfolio But And we not be additive there's I baked additional much feel certainly financial be to to realm. partnerships fundamentals come, this line, that year. around clinical our think We've assumption when also upside there. top advance significant have of a do next So, it's to significant our I to and CDx not source would in I earlier, that of we to have opportunities

Rachel Vatnsdal Olson

the on push bit macro a to little want just I then more. backdrop And

XQ about those continued talked to purchases. impacting capital pressures equipment some of have You how macro

continued you then was purchase X? January So were there that budgets geographies capital how had customers reset talk that highlighted about of and by of other Jan into were spending, have an kind this can has you well? of some as China February, backdrop macro impacted weakness And trend from the as some any but these of that area on notably

Brian McKelligon

in as effectively think, budget up it's about some your Obviously, not really I our you top own line. that's point, beyond And to we drives rate where I like have I that can just would increase approval the purchases, our ASP. capital earlier, just also an issues the noted circles I do exchange around internally but it's -- with But macros, many and tightening, diligence Rachel, think really purchases. capital impacting

So, the play. in those are large-scale dynamics

Rachel Vatnsdal Olson

you And trends, trended walk could those of in January through some then far? on conversations just so us how and January-February February

Brian McKelligon

in expectation than year. continue guide, I'm to give that say, mean, and to rest guidance year QX will QX the have on of the half in saw the into hesitant second we other full I QX market as specific Yes. trends and any an we our

Operator

in I'm Brian remarks. Thank McKelligon queue. not the call back I'd questions any the like for over to closing turn further any to showing you.

Brian McKelligon

Well, to you, you. Yes. everybody hosting Victor, us. time. thank for Thank Thank your you for

a opportunities as we'll part to next with additionally have of successes we we'll and also I realize and real that a product our and to noted, continue to the But again, that all portfolio for calls. benefits movement company cash and a and by flow and research-based noted, with strategy clinical-based expansion we the those for the year that margin ultimately of I our of contributors. leap our product operating core advance as reagent of the being, Akoya, seeing to breakeven hitting end with continue think significant future share as us with you from we're demonstrate being take to the continue along growth as

you thank time, soon. up and I So, your to each you following of look forward with for I

Operator

does today's the program. participation conclude Thank in This your you for conference.

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

Brian McKelligon

Thank right. you. All

Akoya Biosciences (AKYA) 4 Mar 242023 Q4 Earnings call transcript