- Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Nautilus Q3 2022 Earnings Call. [Operator Instructions] I would now like to turn the call over to your host [Alex Khan], Investor Relations.

You may begin.

Unidentified Company Representative

Thank you. Earlier today, Nautilus released its financial results for the quarter ended September 30, 2022.

this to or please the e-mail investorrelations@nautilus.bio. received to you'd send haven't to added be company's you news if release like an If distribution list,

CEO; Nautilus Anna and Chief Financial Patel, Joining Chief Mowry, are today Co-Founder and from Co-Founder me and Parag Officer. Mallick, Scientist; Sujal

material that These of call differ and we forward that events risks Before you looking I statements the statements cause make within or like would will begin, meaning federal from are laws. securities today involve remind the could results that to management during anticipated. uncertainties those this actual materially to

whether Nautilus information Forward-Looking any to obligation live or and forward-looking This Statements Additional is Nautilus intention new projections to uncertainties revise the titled press update of conference or statements, product any the X, the the Sujal. I'll call law, contains over release turn of future otherwise. section as accurate time-sensitive call risks or pipeline because disclaims these information and XXXX. With in broadcast, events Except as or that, issued or appears regarding of today. financial in other by November required only information,

Sujal Patel

observation our people results lives efforts purpose in milestones yield and platform, On our Good world. the of progress towards our our that thank and longer-term the everyone Alex. for focus development and us their provide growing landscape, to the to on want and some quick closer today. us improving market health and I XXXX morning, ever of Thanks for the Seattle joining expected to Their the this of value for share we'll goals. but quarter on call, our you the results of to third insight get Bay first, and a around on teams commercialization ultimate Area thank commercialization short-term continue

possible. on business. I and invader of they I'm bodies; impact gates traveling emerging excited will ability basic to peptide understand Our our tests, aligned the foresee that any and realizing about this accessible powerful our both entire patient's in the be the disease proteins long-desired objective. traditional to to day intact their analysis opportunity envision towards researchers protein and and and watch predictive heart progress desire methods methods see proteomic shift thoroughly through during Alzheimer's platform be common open make important and previously current deeply ever insights, baseline change to for for biological I in see against will other and around will to range those diagnostics a designed and to entire how their we're with state the a and is patient's example, interact, available functioning and When patient dynamic deliver potential measure physicians, significant the development. also precision health. said sensitivity begins in fundamental point cancer, ourselves of measure our we populations monitor how could genomics. of cost and of dreamed and a sequencing states, continue effectiveness exists, healthy epidemiologists whom why spot They And We more ability I'm able the of. our increase with consistently Imagine disease, to analysis for measured to Nautilus substantial explorations the the illnesses proteome uses us the fully of committed a will single-molecule a receive time, we pleased long medicine that efficiency personalized for sickness. as to from an a as of affinity-based therapeutic emerging first feedback the range important drive that wide of than by resulting Through and proteome. if yield of medicine enthusiastic the richer made for today times could their in we've we day, platform very well-being the conditions today. to research, technologies when measure team a methods. will deeper to We a comprehensiveness is and explore research the advances viral our disease in earlier, versus and designing proteomics researchers engaged. a researchers data generation the more proteome enabling approaches next frustration end research and tell Similarly, proteome By with health making that's and believe proteomic are inherent at be more driven that's world be of and recognize and place. They They limitations what's with the at in to

will progress Parag? on decades that now Before and Parag they maximize the to in believe the complementary be to make health. researchers will for down created we our my impact remains I proteome that, much to for that Parag heads and Nautilus, meaningful the on It's the development to fully a In potential patients a to turn feature platform participants. human I'll be the remain in market the took view, market will early said, mature it update the very briefly the that I we call of what an to difference our progress, in journey innovating the any call value over genomics in for game-changing decades share the indication, to methodically alike multiple to an we come. years turn over QX. development are in want With for stages update of

Parag Mallick

Sujal. Thanks,

We against and to in make core scientific continue goals progress QX. engineering our

has capacity progress methods a consumable a on platform. being processes prism significant scaling in push our scale experimental Experiments of advancing good The The of in scale focus ensuring integrating this major and Platform in of our components increasing the a of to the in scale to president make routinely experiments supporting while analytical readiness, of future. the This ability reagent effort Our to put of methodology. reagents. the development develop quality to valuable particular in we Ken been to the substantially with & accelerated has has our us critical continuing of experience involving demonstrate tremendously to with continue experimental particular of customer reagent suite been Concurrent readiness the and customer new and and leadership Kuhn commercial today on our and perform consumables. quality vice advance our instruments, are consumables. strong and instantiation Development, of software our many dozens cyclable hardware enable our commercial focus Reagent

software We instrument are of the to UI perspective and the both making committed system use to that a the from robust is and UI. easy

expect the you We detail future deeper to initiatives, additional quarters. instrument, provide we assembly report componentry, its to on assurance and in as quality

leading of platform. continue thank transition I in we to ensuring of experienced charge elements specifically posture Godwin, to who are has a professionals team successfully commercial regard, we In built all to want a as across of our manufacturing the and effective that Additionally, who SVP availability. that Operations, and for our full for Mary build reliable are our sharing cost-effective outstanding the and and team towards Sujal platform the know scientific reach I consumables thank underpinnings the out speak efforts. Mary I systems highest-quality, way the at of we possible. through the QX, proteomics community, her In when manufactured most with scale, continued I their to to in broader objective

of community similar we our and and creative envisioned. In Nautilus transparency U.S. is back well-known addition I'll the the a KOL platform belief going openness, spur led valuable and the anecdotes that the has and demonstration interest the setting proteomic With to with in immune began of among to Sujal. cultural conversation increased previously observation that and One that Europe platform be system a surveillance. That the clear and turn suggestions These immune activation innovation creativity might my of reinforce the that, dynamics to in applications to recent our to commitment suggestion a system reflection conversations led platform on as spurred have Nautilus serving immune frequently particularly broader the community. of and that proteomics tremendous such as call not to in with exciting the biomedical COVID responses. both

Sujal Patel

efforts Thanks, development Parag. We as scientific remain most singularly focused way on forward possible. in driving most predictable efficient, our and the

opportunities. currently impact on time, and focused quarter, I revenue focus short-term to on making we science. creating at to mentioned on maximum ultimately marketplace this on As make the biological ourselves By are the positioning development we choice are believe we possible the not last

building technologies instrument, we platform, advancing XXXX. analysis portfolio continue Nautilus, middle expect world-class a fundamental At to software focused platform we're field cases proteome many that are our launch the in our We and aims that of on to the to to and protect in of fundamental to proteomics. patent believe consumables

arrays; platform, including applications building our and preparation proteome identification our processes and probes; proteome-level consumables; sample biometrics] key and to and directed our our instruments those example, methods; research assay and For arrays, to methods; for and patents data of proprietary our protein applying patent protein questions. for processes and critical chemistry biochemistry are our scale components our proprietary [noble

expect the to U.S. seek and global our commercialize platform. in is IP we in protection foreign strategy Our we where reach markets in as

current the families Our and past portfolio near over reflects pending doubling patent abroad, this a filed in over and U.S. XX includes the year.

and to macroeconomic strike while ensuring business, I the balance of conditions the and right aware innovation lead of future that team management in we capabilities. exist runway committed our we extending are remain my we commercialization in and investing which As the currently acutely

and our are cash extends do executing ability confident well our to are that into We our XXXX. plan so on in actively

that, let QX call a the our me financials. at to for Anna? more For look on Anna over hand

Anna Mowry

expenses quarter $X.X for were were Total approximately of by that start financial XXXX results quarter driven growth will in the million spending year. the XXXX compared $XX.X public continued operating XXXX third translates the year. in increase our development million the in last of compared last growth and quarter To result for third development the Research to of and third was increasing third I compared That we $XX.X million supporting last third recap. Overall, to of of was third approximately of by million XXXX $X.X Sujal. quarter expenses costs a million Overall, $XX.X personnel quarter were a loss a $X.X $X.X Thanks, to administrative platform. the company. approximately of third million the of $XX.X year. for as compared second primarily our last of my million of X% net our the year. as year quarter in quarter. enter sharing operating to to for efficiency XX% the of That the General year-over-year. comments quarter was million our decrease for in of expenses X% quarter of third in

organization basis. over of count pipelines. at for levels this year all a Our expenses communicated scaling costs of from same development. the total on the quarter count were by and time, expense operating we as continued increase development half a on first our the our the to are personnel grown fueling next head higher only last that result At Those expenses year-over-year head of a and previously result we've We XX% quarter our expected additions hiring related second stages compared modestly half management. focus levels same as approximately to of

commercial every towards a our levels spending is in We expenses dollar million. and ability measured equivalents and the investments, our $XXX $XX come. increase our increases will million ended expect quarter be in we and months approximately below the today anticipated. the these cash doing for that that invest total expansion which burn better in run maximize with us of still makes cash hard XX are and we approximately in we And the long the represents company While a cash, commercialization. will to to operating previously additive to to be levels XXXX preserves trailing confident to progress It beyond, our view QX work

strong will certainly continue While focus our we increase position into forward, runway achieve to levels extending this progress burn that, customers will deliver I scientific our proteomic to Sujal. With believe of platform back going XXXX. anticipate We a will our cash well type to that and cash it we turn that to on in believe of puts new insight. the to us enable

Sujal Patel

forward for that on Thanks, single-molecule makes gold At protein a to access to our the I'll health sets the world. Anna. you to team lead call a revolution by new have doing journey standard happy the a operator. Nautilus, turn a proteome. you meaningful on every the difference a in updating around in the a platform and millions mission, way. mission that, a we're building step look We're along along so of the providing proteomics lives analysis We're to With and Operator? committed to to ubiquitous and back

Operator

from [Operator comes Instructions] Our Stanley. Tejas question Morgan Savant first with

is line Your open.

Unidentified Analyst

questions. seeing this the elaborate [Yugal] Tejas. rising on for And your ensure could on readiness for macro, to our for challenging then is Amidst inputs taking Hello, you of inflation, key the on Thank call cost action in targeting commercial launch you are you mid-XXXX? the supply chain plan systems?

Sujal Patel

this of business is I it's a don't financials morning Yugal, take Sujal. these since mix Good why Yes, and here?

we've businesses universe, you're acutely to of the coverage looking supply it things, because into having we issues supply We're say - issues first implications of of today, team side how have And things you earlier part constraints and into managing to who reagent that an operating through both really side experimental supplies got issues. and past. side we're lead impact in question with the of of deal experiments. moving to supply of our have companies part the has our addition what with those - just mature is We're hardware and has same. we're inputs our I'd and long-lead-time the of can. We're your in for and get as day-to-day, the what on in markets doing on parts supply and the really constraints us, the you respect have go where major chain on as So relates to various are And on various reagents of And planning have the throughout things, times aware, instrument. that, hardware ahead. at supply to we we're chain. ordered throughput operating parts mitigating to seen a And your things

list dynamics side that of on impact the but workforce the item manageable, On terms as isn't certainly is any a the we there inflation seeing certainly for our it's but that on workforce. things our use. watch and things, supplies in us the I'd well what has material both of And are of procure, say range we that impact a changing of that impact of it isn't across inflation that front we wide

Unidentified Analyst

the data. Got opening during use it, was be will population-level super value then samples? technology that sample be with And And volume and much just - proteomic suited a helpful. separate this follow-up, required the remarks, run? would platform's How you generating for biobank mentioned per

Parag Mallick

nanogram Mallick. This readily quantities are is end question: biobank to and platform We anticipating take one. I'll Parag makes that amenable the the high microgram required of it samples. answer of To low on low in protein to which your

Unidentified Analyst

thank Okay, so you much.

Operator

Cowen. Max One with Masucci next question question, our next our moment from comes for

open. is line Your

Max Masucci

thanks good taking for Hi, morning, the questions.

but XXXX, that picture also year? as timing keeping sights How our be milestones and balance our any of development are we we about, understanding a throughout the fluid, should I we whatnot bigger to is and So product or guess, turn still should readouts just updates that be data the radar? versus checkpoints just there question thinking on

Sujal Patel

question this is Good and maybe, Sujal. I'll this here. morning take Max

so frame XXXX, to you're just you context, that first. in about So think that, when I think kind of

of of intend the begin the our we're on XXXX. platform XXXX. in the largely selling business track in consumables indicated selling previously to we selling launch launch that software instruments, product We middle to and And have our to model moving and fully middle

of in along that, as of what be is unique describe six us use. leveraging should decode approach more And to looking we quarters, method to the plus be we're submitting should of quantity XXXX, and proteins our kind journey XXXX, able you be for proteins, two for how our that quarters a for follow that of you on looking that to papers publication so decoding total those with you able decode, XXXX of the we're

show instrumentation. us the looking enables of program as really science that deeper moving early try customers are about to platform technology papers our You through out more launch for getting look posters our have our showcase commercial launch. and and be a we we major year, pricing, into talks. you as And should the where year and disclose service, our shows ready that are full we we and our a program, which And that and access before start opportunities as number our XXXX, there off to of for with is to, start at the meetings

sorts And look that so you for for indicative that in I of of the that middle are XXXX track should milestones that are on think launch. those XXXX we're

Max Masucci

at great. think station panel a recently. Sujal proteomics conference in participated you That's I And a

I alongside So a at would the high we're and in but great to really and complement spatial thinking platform Nautilus about here, still to opportunity of the how know level, days versa? vice you're be hear early it just sort

Sujal Patel

a great talk get proteomic to lot a When platforms it's they a describe the we they biological And future. Yes, customers, I about analysis think question, like this. insight from range that to would of of Max.

exquisite protein blood the a huge and in what serum. sensitivity of to dynamic to my that cell, what they sample because and a and and is First inside of quantities, in range want do number answer they there proteins molecules foremost, want that question of with are inside

range inside sensitivity proteins? And comprehensive those of were those answered the if you what understanding do questions. of because measurement, modified want those you next dynamic the first platform's After a and have design. cell. How And range. that splice important are have increasing is customers have single spatial. After is our Can that you've to hallmark to proteomics? a have the you modifications, you to After understand understand so question want modifications did, forms huge are come the function to an question, Well, those proteins which cell those customers of proteins from. proteins of that, cell a

particular and biological and so that we creates us. customers' map askings biology And insight, of innovation long And long-term us, to understanding on a the think huge for this that deeper a continues deeper for the drive road there's opportunity deeper. of

Max Masucci

of in down road you a a or unlock there about further how just similar on announcements opportunities, recent the that And question in NGS particularly And differently, on those NGS going look complement two partnerships of your the side, the could particularly could just seeing more insights pursuing, the the that's to is bit I or you spatial? as given view of Illumina. or I be platform how are Great. from some direction I breakthroughs you're of I think the about if should the whether alongside like NGS-based platforms, of collaborations that as still guess guess, ask sort genomic that there in complementary sort it's opportunity we're note, bit a data, at and any opportunity of longitudinal you'd proteomics you a view think obviously sort some But growth in - interested fashion? the sort of - we correlating

Parag Mallick

is This that, I'll Max. take thanks, Parag.

to many that our as And to many people for proteomic drive that customers to able to of complete metabolomic. genomic to our from think be years the I all get levels the And regulation possible make of of most heard view that key as easy integrate we've the that one of it information transcriptome, are in biology. are theses the is interested what biology how works. is there for

can point different. spending are not our The And for looking proteome lot dynamics it's energy journey actively make as particular so clear at. should customers? the the time a ranges we're and dynamic How that's different. that that just correlate. genome, we entirely to are that of I'll very an the transcriptome comment easy area very that The

interesting biology important there's and And layers. a tremendous of biology amount between so the

the support at degradation able from And intercede the to where studies find whether the or and or to movement in from in key it's the point proteome be proteome so, we're transition the excited different proteome is of at really those to parts transcriptome cell. to

Max Masucci

of Okay great. Well, question thanks. abstract know so a I it's color. I appreciate bit all an the

Parag Mallick

Thanks Max.

Operator

Sachs. moment One comes question, next for from question next Matt Sykes Goldman from our our

is line open. Your

David Delahunt

guys, Hi Dave is this Matt. for on

making the us a being cost sounds progress been you effective you're that So you're more in for and you areas like in at hiring the it have tell structure. growing labor doing the Could team seeing reasonable about effectively, what for? market

Anna Mowry

one, of Eric the some on take I'll that hires. can in Sherry] leadership that able recently. with year and you we've additions the brought make And senior Dave, see to more really been in We've some Ken and yes. [Win and earlier great

of really, to call, a and the in said that count non-personnel-related down costs we've the not second increasing additive - I'll bringing to way We've a by as so head inflation we've down our costs increasing earlier that make the our also our of count, And made The costs what methods. very been just head head to point, do with our been we've some and by of I take our the we've talent down reiterate year-over-year, by bringing experimental but developing business. able cheaper As just materials, done we've sure our able our raw your is grown done non-personnel-related repurposing count. do what XX% that is spending, to and while production much. to bringing spending been on that points yields,

room growing team, as created grow basis, to a things operating the so. to we're of operating of for us overall costs a All have transform also quarterly these without but how on the business

Sujal Patel

take me your Dave, half your And question. let of - other

that market say that companies, have just I is. bit labor companies, seeing labor larger would importantly You would in terms other on is but we're with of a more seen tight asked And opportunity is market of loosening we how little that. even about what the And the some say reducing I mostly the specifically. are market staff,

way potential present at at see of they super we're conferences, more continue and basically high-quality, our talent that future inflow of telling advance and what that to continue to of are coming the impact. even we an I'd say Nautilus want there's that's and bigger us to the science And our doing. work experienced just great, we As they

David Delahunt

fantastic. publications the could call or on you could horizon? terms anything And a we in of out That's forward particular look events to, in

Sujal Patel

after our is is meetings two another that collaborator for meeting, the And the that a events biggest so the up proteome. radar the human HUPO our HUPO the And and Anderson decoding to us to proteome at really science, continue that, organization. and HUPO maturity us for is that talk posters improvements be we Meeting, is I coming will to in will that's have us our great of the of we Yes, MD are a from and highlight And version here opportunity put in December the is our your addition think World number platform showcasing in that And path World number of just I in about months in where places to be joining science. our U.S. March December. then six of in will at that HUPO. would

put the are I'd those two So your that on radar.

David Delahunt

guys thanks Fantastic,

Operator

for Jefferies. our moment question, next question with Couillard One from Brandon next comes our

open is line Your

Matt Kim

Brandon, Hi, Matt taking question. for is thanks for this on the

think of the blueprint two how about potential but of the posture? the manufacturing commercialization noted to So you're curious to customers? advancing transition to also feedback in to incorporating you're instrument from of the in some you're kind look also those advancing progress while feedback you forward getting commercial Sujal, move on as the enthusiastic I'd of instrument balancing just that some of lock You posture making thoughtful XXXX, the their manufacturing to over be to the and both

Sujal Patel

that's a Yes, question. good

us for think balance I the fairly simple. is

in continues that assay that customer. inform And are how prioritize to lot us to market customer where killer applications to it interesting our important terms helps areas a are be out the our the get we continues of to help the timely think going to for of XXXX. applications in feedback develop insights identifying technology biological are that and fully most when we science the first I us

an point, very think, shortly six instrument are this settled. capabilities the I And instruments very I January. years requirements at years turn six think that, here from Nautilus in perspective, officially old, in, well will and

that is going a of doesn't will lot I think final pretty so process and certification, through the progressing of It's customer in. qualification a have be levels moving and well-understood And in that's the development XXXX that and process shipping of instrument nicely. input we really it's middle various and

Matt Kim

Super thanks. XXXX and any And then a to to you the would see Thanks. we opportunity? accelerate of come investment curious, you out potential look another is are also topic of areas kind investments forces be balance but up actually I'd development, in want lot management. in expense as that's there competitive beyond, that where any make

Sujal Patel

out recession I that I the will a but I into I improving know but transform what said, and will business; as of never, And you Matt, and posture be end going but head to to the smart. expenses. really of an our fool are be yields going there is far was would of we in I about a improving Yes, that hardcore that us mean, operating hunkered the how reagents, CEO expenses we're I very really this benefits accelerate, of We're in financial opportunity our being constricting where the the felt crisis; won't last a and our sure be beyond undoubtedly we way, very And be deep. our really opportunity hardcore to for into never down. won't really, came the the case, tell the a the public say, recession, Oh, because their say company don't while being never recession with in we're Nobody recession being quality. we and operating it not being is refined our here We our We as to used stronger. way development, that it is And our way does, we're for and commercialization. costs. any tight

Matt Kim

thank Great, you.

Operator

conclude does showing at any And conference. this I'm questions also today's this further not And time.

You a day. may now disconnect. wonderful have And

Nautilus Biotechnology (NAUT) 1 Nov 222022 Q3 Earnings call transcript