OMIC - Earnings call transcript Q1 2024 | Singular Genomics Systems, Inc.

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Operator

Good afternoon, everyone, and welcome to the Singular Genomics Systems, Inc.

First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Philip Taylor.

Philip Taylor

Thank you, operator. Genomics the and Dalen company's Singular Drew Executive Meeter. are and Spaventa; Chief today Founder, Chief Chair Officer, Presenting Financial Officer, months Earlier for released Genomics ended X today, XXXX. March financial XX, Singular the results of website. copy the the available is A on release company's press

I of to inform predictions, begin, will XX, only today, responses Tuesday, comments plans you reflect call include like and during other our to and operating expectations and plans, and including questions strategies. May estimates, your today's would opinion forward-looking management's we that and related Before to views statements, and statements as XXXX, information financial results,

more Actual results press release described earlier these certain most by result Exchange in today may implied issued of XX-Q filings our our Form including and release. and materially recent today's are X-K differ XX-K risks Securities and expressed Form risks with and press fully or as filed and with Commission, These the a those our statements uncertainties. in from uncertainties filings and

found revise can disclaim not the cautioned on website. SEC reliance SEC's statements. filings forward-looking update or website are on place to or forward-looking obligation our statements. Investors any undue on We these to Our be

replay conference be call Please the note that this website available on for at and section. will audio Events our Presentations in investor.singulargenomics.com

With that, I'll turn the CEO, Drew call to Spaventa. over

Andrew Spaventa

updating look business. to First Earnings the It Call. forward productive on made XXXX and Singular Quarter Good afternoon, welcome we Genomics to and was another the quarter, across you progress

the focus XXXX. the our sequencing following of We update quarter a two, summary and will one, of spatial areas: on first the three, results; rest areas focus and call the an work; for on our GXX

customers. GXX some our we I'd many of sequencer. a the to throughput we spatial short experts dozens time period growing GXX many like we in topics, and the since It growing become clear. Spatial our to with is these limitation. spoken focus Before excitement quickly that have been and of is has Two at AGBT major short color in things into a in around share spatial spatial in time, segments, February. have and unveiled shift customer get In

savings is The that We not uniquely demand The accelerate and setup this to side GXX for customers point business plan also growth a for pain growing. pain the believe pain high-margin, we is suited business. point supporting that profile a has spatial. while be cost and in encouraging, the will sustainable to and addresses but strong this just the solution to address to pass for point meaning address participate potential along a

a will enable discovery spatial. and is biology. of offer perform better last better capabilities personalized in will produce of potentially The new more to drug novel will development capability and of sequencing overall that some piece effective the treatment, lead to understanding research disease and more of types faster an has that a of fastest-growing excites type directly the and and that areas diagnosis, sequencing use potential in in single The our data us cells around novel features to set

GXX we to expect In which addition from on market, GX to move are to benefit our work our focused of we the the get into supporting exciting majority customers, development to spatial. currently

as shipments, quarter of or center $X.X million first shipped our XX. and instruments core revenue. medical to academic were XX generated into during in GX apps, commercial our move total let's X the and GX X Now March labs are these quarter results. We shipments to bringing X Of

transition customers existing Many will most One supporting customers of us for important over likely on spatial to areas the our customers. of during the quarter was focus emphasis maintain to our existing time.

system see in consumables to pull-through. utilization and continue improvements We

uptick an months majority now, the for to in in usage monthly consumables systems orders highest of several April. shipments for field and are our in the with With see we tool starting

our turn let's work. to and spatial sequencing the GXX Now

designed capabilities of has will in the throughput discovery. open is novel reminder, Direct-Seq, profiling the a the is As and areas scientific include to and GXX RNA of offer which potential situ Its tissue. sequencing unprecedented of for to new novel capabilities spatial

combination targeted In be will readouts modalities the of targeted offer tissue addition, the GXX H&E section. will and in unprecedented same an scale. at state, offered transcripts, a florescent proteins all readout This of

system enable square samples per of to and flexible process labs times, XXx than is centimeters XX GXX area week existing to With turnaround single-day imaging the more designed technologies.

and the As focus sequencing more on spatial previously bring multiomics our to heavily spatial we sequencer to work GXX to announced, and internal shifted market.

down been is implement shift heads excellent Our team this making and has to progress.

development, are progress with the In our Co-Founder protocol and internal expanding method and latest for developments early Conference of readout types covering on the modalities. improving Research the work American Diego, we tested in tissue advancing Eli for Association and talk performance At and instrument hosted collaborators. San Cancer a some combined Glezer, of R&D, CSO,

This sets included that FFPE lung, in and kidney, lymph performance samples. new human colon console, breast highlighted node, data GXX

data florescent Institute The difficult Institute. initial and the we a transcript, FFPE marrow high-quality Dana-Farber, worked marrow to At data In the projects, was technology with on Dr. and protein from X perform partner of analysis very bone XX able Wu Broad GXX for sections. addition, type. our presented an GXX Catherine H&E access we Dana-Farber bone to typically from tissue samples, biopsy provide Cancer

to larger been in sections allowing the envision single addition, In previously not have possible. processed were studies run, a that scale the researchers

RNA and ability regions growing area variable GXX' Institute, the Dr. This the direct CRISPR an screens, imaging. proteins in-situ and research. exciting worked showcased translational perform project gene perform sequencing editing At to CRISPR-based to of to we Broad Paul applicable with of H&E guide Blainey of sequencing plus

work new these expanded TAP partners. of with initial and In addition collaboration to the partners, have initiation our several and projects research we

sharing more inbound projects future. growing details to strong forward seeing list and researchers these academics, the and of with data We are leading projects. on biopharma TAP from look We potential interest in a

are of spatial has been funnel GXX. outreach upgrading institution customers interested with in presence of a team opportunities the gatherings, capabilities conferences KOL Our at through existing our building to that actively industry discussions and targeted GX and commercial

the their core held sequencing planned in prospective opportunity from latest talks, conference advances they had the existing Core customers. on sequencing the and GX academic GXX. hosted in sequencing strong was meet an presenting At Lab during on director as the Feedback meeting we spatial with recently shared with with and the panels across lab testimonial several GX. updates Minneapolis, describe current with We this ABRF our experience positive lab customer platform to multiple

their collaborators multiomics. The opportunity bring event discuss leaders existing in a working provided forward hosted to to to together and scientific develop relationships We well-attended an included GXX event and and customer which for research. advance the customers opportunities

encouraged customer are from level the early conferences discussions. We potential users and these collaborators interest by the of of coming and feedback from out

a We the for center of customer new and GXX are opportunities CROs. core strong seeing academic medical and already the pipeline across labs, biopharma

have dozens traction near-term early part Services In as of Technology funnel the projects of interest Access quarter in GXX addition, service institutions. of program with from the in the launched we second that

rest focus for our to the Turning of XXXX. areas

Initially is centered available the BX customize panel optimizing the ability to around with Our protocols. sequencing internal genes, and and ] [ methods spatial proteins focus content. our will GXX and XXX immuno-oncology be XX as platform a service the developing

research for innovative such our In advance continue cancer editing. TAP collaborations Direct-Seq and early as addition, like of profiling, areas on new and methods detection, and projects we exciting immune CRISPR to research

coming to launched expand We the early months this second in to capability Access services we support intend the the project GXX received inbound to Technology in interest quarter, and date. the

value and to for projects the be around instruments. in We and GXX commercial second demand year, of publications, enabling an technology expect KOL the testimonials technical important of service generating the half ramp milestone producing the proposition

the Lastly, system broader through interest access program operation of early a preparing access customers of access GX. with for or an The commercial their demand well of will third-party the to existing generate the are GXX. and we launch for early as feedback as upgrade select the where intent to GXX and both to number early to GXX learn incorporate get GXX

call the details our Dalen I'll Now through to go quarter first to turn over financial results. of the

Dalen Meeter

predominantly first from $X.X the million quarter during instrument of Thank and one million. purchase capital Revenue sales of million, placement $X.X quarter of XXXX on consumable up for you, recognized $X.X the made Drew. revenue was approximately

our expect as XXXX. consumables revenue was negative over first We the quarter these to from profit instruments. Gross quarter generated customers other of X time purchase shipments of compared to the $X.X instrument in first million be the million in XXXX for $X.X

support initial gross noncapital other and models of with margin to purchases, and costs associated placements. the reagent was of use higher our negative system discounts on due Our rental purchase the capital

and totals These compared million in $X.X XXXX. quarter expense QX of million by primarily XXXX million million Operating was expenses included in QX quarter. driven compensation XXXX. quarter $XX.X in first the incurred in $X.X of first noncash in the increase XXXX costs the to of severance first $XX.X stock-based The year-over-year totaled

count XXXX investments, Net cash, or million and million. loss average share $X.XX And million weighted share in million. per was of equivalents $XX.X was to cash quarter $XX share of for XXXX. in $XX.X first approximately net used the to share the the excluding first compared cash, $X.XX short-term first restricted quarter calculate The per $XXX.X or totaled of per XXXX in quarter loss

and driven the was first severance payments, benefits burn $XX.X quarter payments other million, capital the Cash compensation which for by timing working quarter than approximately items. certain the was sequentially of higher and previous

we We you, lower to savings from as measures full second to we quarter March. Back Drew. the implemented sequentially in to start expect be burn our in impact cash the quarter the cost realize

Andrew Spaventa

that solution closing, leverage needs a is like technology growing In Dalen. I'd to exciting uniquely GXX conviction GXX our compelling opportunity. spatial and to an sequencing unmet market. offer in to to positioned Thanks, the reiterate in Singular our addresses of

of impactful our have this deliver strong We product. are understanding and ability confident our capabilities a to in

this have done still this opportunity, runway work believe see product the sufficient team While is right there and we market. to to we to be to realize

Now questions, let's for open operator. up it

Operator

Matt is Instructions] question Sykes [Operator from Goldman the today from Sachs. And first coming

Matthew Sykes

what need just think capabilities it in are What mentioned are order you to the to -- areas for you focused launch, start, you on to program, feedback just believe, GXX I add XXXX GXX capabilities? do the Maybe, features some kind be do release, launch. access in those prior to you're early ready you wondering to Drew, press you the of for for to you outside looking What and from of customers to at. need add getting to

Andrew Spaventa

Matt, thanks appreciate it. question. Really the for

we're services and few running then Direct-Seq we fluorescent now, are we so service proteins where projects And services the TAP the as H&E in or XXX service. to currently, right projects dozen solicit a on. early we're genes, have So a services, are starting running also a and working

we where sell product hardening we're In order what development of optimizing as the just and fair there's work a doing where box service a kit kits, get you're it a product now can and to everything. essentially traditional right into amount and your the

bioinformatics Some has it to do with the pipeline. of

of it to Some kind with has the revised software. do of testing

the and getting As work it's kits. you And then the exact tissue across protocols box around hardening recall, different just types. there's and in same understanding different dialed

the XXX one that genes. then very the right that We're moving the we're quickly. for offering expansion of we're piece product. And spec genes now, doing And XXX QX that's to

So from XXX. to it's getting XXX

a So a user answer and productizing really getting experience. we have question kits predictable to can is where it ship short point it the your and to very

Matthew Sykes

-- just today. That's it. GXs helpful. very balancing XX are how you And you've Got shipped then got

customers How that of take future. you the are up portion in resources. still time, primary focus. needed good But are base become up the could your a that's assuming you need GXX while same running. at balancing and installed services to and for GXX the ramping you're I'm and existing so the those those support customers Those support And customers

cash So sort spending think currently on versus targets you want what in how GXs supporting the your to achieve and for resources the burn do the market launch? you GXX about of

Andrew Spaventa

good another It's question. Yes.

that manageable. Fortunately, systems having XX a support is there just geographically, all in from are out standpoint, the U.S.

systems, they're series running well point. is a XX We've this other done of current upgrades. The at thing really the

to now been few strong uptime time the months Obviously, across the but network has the we've some last for mid-XX%. the the systems, harden had in really

able and So the FAS nearly They're and to pretty kind we're And from minimally we're of well. level an all that calls not standpoint field support up of now. service we running working FSC them seeing pretty once were.

even know and GXX. existing we critical. transition resource every and half About said, maybe of do being think, is understand will the That we that customers, more, to

the of and for FSCs that to coming. spatial kind the we also those maintaining kits important expanded current is so them train infrastructure support So happy, customers start that to but sets keep pretty support skill we that are

one about stay possibly we've number a This capabilities network given lean with also of at can. very huge of the is the We're we the existing headcount the of not line to instruments existing in as support expanding So a it's where in And it. point. to it's thought stability customers lot area trying upgrades as and GXX. this

Matthew Sykes

squeeze Got could Dalen. it. And you, one I for more if in

Just you the mentioned quarter I the know of in million. $XX.X burn

be in it cost How 'XX be lower as through cadence full savings to move that will the course kicking over the we expect we start year? because the the cash You of should of thinking of year QX about burn of and sort in. the

Dalen Meeter

we the of burn that associated out was in March. right. we the talked some yes, Matt, that year-end in implemented the little it paid with The well of accruals QX, previously reduction you're was some as as a about higher severance as bit

savings those of the operating of to we of XX%. then through the an of about last being to of we a year And at the bulk But of would sequentially, The XX% talked from there lower the be ramp expected as from the little kind savings that I second expense of half to course of with realized the call, well. perspective. rest the reduce in headcount the range to kind looking expect expenses bit probably in QX March kind that's forward. the we're how on year kind start

Operator

Cowen. Dan Brennan question TD next is Your coming from from

Daniel Brennan

funnel, us today, the updated just you that's to Can the the Just program? us on the of you time Maybe quarter just us how say, update from TAP give first kind sense, a last one. at changed? maybe

Andrew Spaventa

to, Thanks Happy Dan. Yes. question. for the

There's XX to of even funnel. is the funnel specific So and One segments. segment I have service remember pretty verticals on quite We don't what into XX, them divide point academic said the services. there's time, based somewhere is core there's deep and where different enough there. where don't number a one X of is we're starting services in There's projects, biopharma X we're a deep kind a in you. trying deep. into segment. funnels each the customization. the for those last projects the I that a track. funnel if to segment. The I then we're funnel And CRO we on There's But minimizing a know prioritize

proteins. be So that we offer as a panel immuno-oncology trying many a service customization. standard. Very without soon, We're XXX to find fit gene it XX with will projects within that panel

people those all tissue again, there's, of point, a those and group actually to things. are, form. the And of each design they've of project. request one and looking a type, scoping project of We're that really We're at submitted deep a kind types where panel

the that we're we're early with access for the through system interested it's early Separately, we have we kind of work volume the much was expected, GX funnel the an over based funnel, and still access, the early placement funnel have GXX. choose going customers will appetite and and to be criteria GXX the a It with customization And prioritizing needed. people that that in operation have of now the a dozen on, well and of are or how again, us. to of won't largely samples

since easy customers in customer wait also upgrade system. already relationship of and then way there's early with early access, the existing and into an existing in a likely there's And that to us that's familiarity want an number an for the access

very of be a a work encouraging. and done, lot to of So but tracking lot

Daniel Brennan

commercially that you the remind with just to So still when look guys just of Matt when you us to like launching in make of be is would terms Is progress prepared, guys you can it of would be commercially? to discussed -- kind like specifically need assuming in what you occur? -- some it 'XX,

Andrew Spaventa

Yes.

earlier customers on commercialization. Right pull and expectations of few So those appropriately. units continues pull of it broader the if with year, we of broadly, version we're go a next people take essentially access happen placements few more get early probably revenue-producing about extend towards box, But to of more to year. happen way in and around early kind going year. may end running units. we set QX, of be quite start the an kind learning is how quickly the access in planning those and right we this it to in will depending early There'll to next on and the first bit us support, of and X QX demand want be access early thinking we these the that can how maybe be to And we'll up now, QX the a up. be more do to lot commercialization for to a And will would learning we're access now, months get services and X over able more as

it customer-driven. So be will largely

unique kind that this go. there's right to We're us something is run it now. people I We're think that alternative I think here offerings the of spatial we pool very have more want of pretty what's samples. willingness lands, a is the demand gauge to to think a little customer that take and bit is benefit. clear given But where to that's And a bit little in of is sequencer And high going of that's it's kind lack something a spatial, the translate in there where to of earlier. providing stronger as an lot to incremental we'll very not throughput the unique that's eyes I providing something about valuable different.

Daniel Brennan

when have a the on you out And or ones. the versus the of -- of in other publications either comparing maybe of or couple you interest on standalone players? performance think do or just GXX in kind when then the have you of your first market sense the some maybe maybe customers quick Any a

Andrew Spaventa

Yes.

said, panel. in I want the to to process XXX of our getting panel. gene XXX And I commercial the still think we like we're get to from

think the engaging And academics. result a lot of there I up a this end service we'll of to -- them service QX. a by we as publications running as in those projects that of probably quarter into lot expect with, are and we're the have that

those to And and publications imminent. to So once on up panel gene to year is start the we'll be really get see -- get start publications platform. we running, think intent which later and XXX I the that with again, work the people this would pretty

Daniel Brennan

come And maybe last overtures how made about spatial way, just on has us just it the about have allows can in about ability some what one of performance? just or form. to remain you kind Illumina But for this would that -- in? the looking of is when that platform shape you GX as new remind differentiated And kind interest enter of you just Unclear how do potential think to occur. maybe kind and chemistry this to

Andrew Spaventa

Yes.

-- I into speed kind able scale and the we're to that people foundation one The down readout on in reason the work started the And reduced as of things really sequencing go and offer originally And thing. be spatial. few back on comes of a think work spatial to PX. there's want spatial applying that. It really it's quite a can't and run to that it. XXXX for

think what enabled offer be know have the us very were really unique. few us for we things to we that I A fortuitous of will

SBS And do part the in chemistry. done. tissue. our years very tissue. been going It's the of it fast. work It's nature the X It's is of that's very well well It not really chemistry. to very on optimized last things It's developed low those That's concentration. now of over to work been that. we've very It's sticky. One in works

development, imaging being fast. and that to spatial, very have speed side, all And flow the instrument, X X instrument on a there's the doing with the multiple and offer SBS able those all a so together offer in colors, on chemistry working those an a things really also we context. things That applying unique. area Z to really image really And cells, just in instrument stack allowed of large in design to able chemistry flexibility. to spatial to being And across lot has works and method being us able key something image behind well innovation a that's

that of It's There's amount not barriers. the spatial. as a and There's deep filed a application we one also modality on thing. IP use sequencing tremendous in of

standpoint. others I think be feel there it's feel at time, the good standpoint we a this that but at confident pretty in that So offering We unique product from a profile technology And move point. pretty IP about in not that an point and it. in won't

Operator

and This your as conclude well webcast. today's conference session does do thank you call We for as today's question-and-answer participation.

at thank wonderful You for you a time, and participation. may again, your And disconnect this have day. once

Singular Genomics Systems (OMIC) 14 May 242024 Q1 Earnings call transcript