AXDX - Earnings call 3 2023 | Accelerate Diagnostics, Inc.

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Operator

Good day, and welcome to the Accelerate Diagnostics, Inc. 2023 Third Quarter Results Conference Call. [Operator Instructions] After today's presentation, there will be a question-and-answer session. Please note, this event is being recorded.I would now like to turn the conference over to Laura Pierson of Accelerate Diagnostics. Please go ahead.

Laura Pierson

Securities is may share the Securities contain Section of it during information meaning Exchange begin, and XXA call XXXX this forward-looking the Act we of important of that to presented of Section XXXX. Before XXE of the Act statements within

President that those and are report statements are Form December cause greater These reports SEC.It statements made that introduce in detail could and Forward-looking and during discussed projections, other subject historical and company's pleasure to not XXXX, this for in about we ended statements CEO, are our year include call to Jack my annual are with the now uncertainties risks, is facts. on factors Phillips. future the conference results materially. actual file other our XX-K to that All our XX, the forward-looking differ

Jack Phillips

to In the clinical first Thank Arc, our and our Good Arc. quarter development milestones grow and welcome everyone, Wave our Becton, with partnership initiated through third to we with platform call. you, continue afternoon, trial to quarter, hit to our earnings market continue Laura. Dickinson.Turning for the

MALDI-TOF are pressure device. devices legislation developed now FDA-cleared blood there processing reducing the of their culture and samples positive rapid preparation and overnight molecular results. tests, laboratories for FDA-cleared is by time system a labs simple of without an positive culture laboratories with be microbial have identification direct ID an value alternative under as existing downstream for the wait for to will incubation, solution load reminder, designed enforcement on-demand with an blood This for great solutions in a go for As run enables will increased automates Arc laboratory Customers that sample providing need compared using workflow thus, clinical to from the cost-competitive automated culture identification MALDI-TOF. systems.Clinical using

has and enrollment. already completed initiated one fresh clinical already site our have We trial sample

adoption first FDA which to automated the preparation. with sample the intent is seamless coming the submit months, to FDA-cleared Our over laboratory will ensure

We more quarter Wave, AST our and hopefully, achieved are good in the news several shortly.Moving making rapid great progress platform. milestones. to with We on progress come and Arc made to next-generation exciting

Wave with processing hospital throughput to X.X than labs. and systems workflow million comprehensive as susceptibility and Wave lab sample testing positive million are sample now improved existing tests Wave to and emerging reminder, scalability optimize to features.Time-to-result loading tests susceptibility from provide beta both performance all high samples our random have will from as colonies minimal will with pain the a built great includes reliability, well performed look performed we time-to-result of challenges, address As the globally. between good. in which for points, Wave continuous technicians a performed and hours segments. X over The modules menu, platform blood less easy-to-use fully on lab platforms differentiators isolated well operational customer average, Based the culture on our workflows.Key access XXX service continues love

a library data evergreen developed image comprehensive have We for analysis.

Gram-negative Most Pheno. for menu current within X.X results Our are is of well size bug approximately hours. to see the This the XXX clearance twice over on combinations. goal available is drug

of trial abstract by and shift and by produce customer all data on year, a trial significant same to for reporting deliver an preclinical Wave a economics. submit on drug-induced menu. within us seeing differentiator of followed significant Time-to-result accurate voice system of Customers system. Wave which Gram-negative produce early are system the is susceptibility their early Wave enabling testing.Marketing comprehensive single platform, allows a hours, by to has to readouts about PVC supporting continue We and scalability driven Wave, a feedback plan consolidated for labs by the excitement morphology next the what improved changes ESCMID to results. menu same well received features We X.X year-end, differentiated the antibiotic clinical is complete AST confirm shift

We submit activities with we early With about commercialization to Wave mid-XXXX to options. a the in game-changing exploring progress we this program the XXXX.Overall, to year, are begin FDA commercial will look Wave in and of the promise of the excited launch actively plans are premarketing technology. next

performance Turning to in our the quarter.

I commercial portion anticipated for the new of progress the BD, opportunities in were While preparation long-term results. secured to David develop to a Pheno Financial We quarter systems our launch.Now, third Chief our David? preliminary large our our to partner, customer to continues turn for Wave the contracted than review and like funnel. less Officer, quarter, the new successfully contracts would base Patience, it over to

David Patience

a good implementation. In you, Thank Pheno everyone. ended We backlog instruments quarter XX Jack, the contracted revenue-generating and third instruments. installed quarter, U.S. Pheno and X afternoon, base the pending of of XXX a new instruments with

in XX for customers than $X multiyear more rapid million contract period approximately $X secured were million quarter.Net in we positive during extensions year. and quarter approximately million and $X.X year-to-date. existing prior million testing same to susceptibility the compares culture $X.X blood Additionally, sales to the for the the This

depreciated million of million million manufacturing fair adjustment year. and advance $XX.X in which million the expenses to for This margin million decrease expenses Reductions million the were in prior notes. same and $XX.X Our prior prior quarter the of the income the XX% quarter next-generation were million was year-to-date. $XX.X for reported and opportunities spend in approximately $X.X million increase approximately $XX.X expenses for period XX% $X.X and derivative and compensation, $XX.X continues was the to the result our million the our inclusive driven sales year-to-date. This adjustments expenses, for in excluding period. $XX.X noncash for increase excluding Reductions compares revenues consulting million same compared inconsistency expense R&D XX% the capital result quarter $X.X $X.X for quarter in year-to-date to compares compares quarterly the over noncash inventory, and stock-based by liability to period. secure for administrative the development.Our our year-over-year, to is period This year-to-date, convertible SG&A to third-party SG&A and compares year-to-date. $X.X $X.X stock-based XX% noncash This has lower $X.X year. and a to $XX.X revenues period excluding the for quarter and Wave expenses.Research same million as of of value driven revenues expenses, in included lower million and a Gross million, to period. but million in consumable R&D million nonoperating $X.X of were expenses, the compensation, million are been program, instruments.Selling, in general the to service-related prior through $XX.X year-to-date. related were expenses $XX.X to for and which $X.X prior and million in was a employee-related by year. lower This lower development million and

per net net of income was approximately share share $XXX,XXX the approximately a in net of $X.XX for GAAP of net loss had $X.XX and year-to-date, Our for resulting the year-to-date. quarter loss million we per quarter, $XX.X income while a

for for back quarter was Our with $XX.X the you, net the million.Now $XX.X cash and cash excluding $XX.X compensation million and Jeff. million operations, quarter and ended stock-based expense loss quarter the from $X.X of investments Net used year-to-date. noncash we to million was

Jack Phillips

would Thanks, Q&A for the now David. open like We analysts. to from up lines our

Operator

now Blair. begin question We comes the And will with Brackmann the session. William question-and-answer first from Andrew

Dustin Scaringe

so talk about you for could current to Andrew. if same on with important this how why the on and results and care? Wave, are Wondering that standard on patient of Wave Dustin color more provide compares shift

Jack Phillips

take Jack, happy is problem. This Yes. one. and no to I'm that

perspective, just leader for in the around hours blood really put in it of time-to-resolve culture example, and for Pheno is the X to time-to-result. U.S. So rapid in positive today, market

shift move the again, the solutions can volume the much to -- and look XXX out. often close being traditional When into you old are days results of market, really isolate that that on solutions it's and other before market, window market, market we're It's with so the within the same globally. tests realized as be same the age of million we reported some about on the at And reporting. higher

solutions the And market is are the actually it's are time propositions value key that's day next in hours, those today. Wave of to dramatic X.X what much it get customers greater in I the isolated mentioned, turnaround the patients can than therapy standard to care one the so we're same And blood shift. than day.And on of quicker automated faster shift. as that much is both results positive what definitely colony impact seeing of culture the and get is optimal looking of All allows for clinicians of sooner because you for for where today. what and patients the And on testing same

about the in talk market, we talking now the as Wave so we're Wave many about proposition. to customers value and And out

relative several in always period. there's top that's automation, on the the point the one menu, from things value customers While clinical access, drug time-to-result of things shift random to is to that et cetera, of the bug, list same

Dustin Scaringe

bit you just talk maybe Then a how And with velocity geography. partnership, stage guys progression wondering the that's can about if customers? BD funnel varying little and by maybe on then the

Jack Phillips

to that Happy take as one sure. well. Yes,

funnel make BD to also a to working planned up be but that progress standpoint continue to in. new comfortable we want in get was for in the and many on sales happy we're that susceptibility the and first the reps building are a The just And We still acknowledge selling very had along. delayed. had they're new quarter active brought very speed, we building, in but so disappointing placement they with taken with it's funnel the through for Several on the And sales having new continue coming funnel. to more were, of From -- comfortable to were that delayed. bringing rapid progressing those deals good us. our those, in fact, all, instruments contracted of Pheno. funnels standpoint we time I quarter contracted opportunities, partnership.Absolutely, from some progression still testing, planned we and They're

You mentioned in each geography.

I limited of the bit I EMEA is different happy that in in model Phenos say EMEA overall that's But EMEA. and the the a had opens don't new which I quarter, in month so, days BD's prepared is.And in over agreement this what their signing in The business successfully mentioned and to tender tenders responding them we the was ability within at it that So U.S. while, that we now early for markets much to was were in same that thing around Pheno believe challenges a on they're contract really a in door EMEA the is and really respond or very the our to add would a for quarter, successful there what type have in past tenders BSI BD remarks. one to. really the the only to Arc the environment, the about tenders with I'm EMEA

Dustin Scaringe

are we should And that been then and yourself between upcoming look if team already, going of out you at milestones about the cross-trained here and there has look execution it's integration Most major more forward. BD, for.

Jack Phillips

David? you Do want one, to take that

David Patience

David. This is Dustin. Sure,

with so together. And infection to the still market We're the process. months separating bringing organizations and aligning solution working themselves about a that comprehensive in bringing X really X first offering together the bringing from mentioned, Jack together. the together, pretty is has By X portfolio sales training every bloodstream is that learning other in as players BD been day. the together We're

that so we message be But out. bit will are a little a big portfolio. responding very very to this are and have seeing we longer And taken to liked a comprehensive those it's would favorably. indications and early come Customers really it's successful than

very So, aligned as sales we're leadership come the about then accelerate happy the very with organizations seeing. both the The we are progress excited and much aligned together. we're what and BD organization we're very that are are X seeing organizations much in very

Dustin Scaringe

one last for us. One

long-term a that does ago? OpEx going just the few quarter, how came versus that spending your you you months where about laid out plan forward? given And Just are compare how in thinking

David Patience

Great question.

and And seeing pivoted well we sales in both strategy commercial so we as BD synergies agent, with as in Europe as well. our now that realizing as were to we hoping as SG&A the the bring commercial are to,

supporting delivering the the of so And more marketing what of BD on quarter-over-quarter on also as we're the well OpEx we taking coming fruits BDs in we're focus effort, the our down as both are and sales as overall, sequentially we seeing our partnership. strategic which seeing as Wave refine but X seeing and priorities, that funnel, are

accordingly. And and X our focused burn so very the as we next quarters, refining initiatives cash move those we're into strategic on

Dustin Scaringe

question from Next Alex Nowak of Craig-Hallum. is

Albert Hu

for Hu Albert on is Alex. This

some on let's give us and Arc know you updates latest the you on can pathway for, I just mentioned enrollment, So, here but approval the timing? say,

Jack Phillips

sure. Yes,

So, we're with towards what to on the everyone Arc U.S. just driving remind in

trial We has clinical U.S. trials That for very is enrollment. completed are in site in going the well. currently One Arc

market The in really will is validated are the for prep submit MALDI conjunction basically what to And solution looking U.S. be opportunity a used do here for platform is workflow incredible an one a submission will underway. give And still our the that in solution have FDA other device the we MALDI only us that sample in market for coming months. in with the in the the to

about excited MALDI be very FDA approval.Again, reminder, started U.S., Bruker pre-subs well XXX(k) and a BD for that of continue those relative the use as Biotyper. done So, validated it is the the distributors trials is as the in with with. we've well. clinical something what Class platforms already This BD main will II work is to obviously to all and the the because be Arc a go will And one that's for

excited Arc really also And that. would I EMEA. make about comment about then we're So, a in

in We But say Arc market And EMEA on EMEA. things today, some we EMEA. I'm to and we've slowed fix several had on BD which starting traction in that happy market. deals got as Arc. Arc to Arc the several gain of in business are Again, well. opportunities with on that evaluations closed down for have for are We've going for is Pheno to overall,

Albert Hu

The especially -- especially spread. they're need or after about to antibiotic for resistant -- government, vocal, more the bacteria pandemic prevent the

a So, to to need CDC HHS help solution at all? is to working enforce there a the a pathway requirement or potentially with phenolic

Jack Phillips

for that question. Thanks Yes.

to CDC And I has were a in many of of this. that CDC. they so they this pandemic say would the recently the They priority. made industry, work refer of silent absolutely, had and you meeting part we this at continue members the -- highlighted to that major and is actually this recently, on a

of Strategy of really attended a susceptibilities with right continuing doing and really quicker. address meeting perspective several about it the along members was other therapy industry rapid sepsis diagnostic on get Marketing we Our address can all the and patients from by to diagnostic the Head to ultimately how it for focus and on much AMR, providing testing

It And it's work continue CDC. so yes, to to a big we focus. continues be a focus, the and with

Albert Hu

us provide environment And you can rapid systems? on color the microbiology for competitive some

Jack Phillips

suffering. patients inadequate -- it's think, really the completely Today, elevate I mean change this. diagnosing testing I mean it's is and is competition really in current with I and again, the Yes. forth are good providing I always turnaround of thing. for say a so -- times it to need mean testing. and a susceptibility methods a helps antibiotic I the that

will mentioned positive obviously XX going the another with get we are coming though, in market, as whole as continue the not positive market we take Pheno and area there's And what to as offering a look that XX coming into of blood, turnaround the I in focus as naming story market.I be very isolate proven to us well. the into we'll look to because Wave approved obviously so market. get Wave with and solution then than a really limitations look The at to there, that, also won't be we players that times, doing menu menus. this looking there's only blood still most will the several with at competitive we as names and emerging we time those old market is menu of isolate diagnostic but And Wave. and platforms years much turnaround to competitors the obviously, into And looking are are beyond but the forth. provide slower look be a is associated so a But standpoint, at on and believe, from with not as still only at lot

Albert Hu

question Okay. Awesome. And last from us.

you heard would we quarter. we commentary BD boost -- partnership BD on when some see BD do the the installed So, the partnership think do see materially think we the you bases? materially But last partnership would positive

Jack Phillips

question. better was the of Yes. actually I quarter since a we've mean, would had quarter we contracted it's better it a had quarters -- a best had this and than We say fair last quarter, -- I in new 'XX. one quarter deals.

So, we contracted did several customers new then.

-- This increase. they're their than of outside continues again, exactly, of Pheno velocity clearly. a sales number to their work say team they but and and part forecast, less But off and funnel of the while they And to U.S. to salespeople, focus of was kicking opportunities the big in quarter they just their BSI Arc it's BD their going. their hard on training the year and meetings is the that, campaign. And have sales a continues

so expect on in. the BD improvement And bringing new number is continue to that we to quarter-over-quarter see opportunities of

Operator

would This question-and-answer Mr. over to remarks. the closing I our like concludes Jack turn conference Phillips session. back for to

Jack Phillips

just summary, the everyone, a highlight today. few for like Yes. to Thank you, and In thanks things. time I'd

winning FDA data successful antibiotic we quite a submission FDA all, will I the to tap today, really the and not by much technology thank successful and the And performance team, wonderful The test like continued It's for into testing Diagnostics. one. and This day. approval we and talked confirm more providing in isolate we'll to management that is after allow year.Secondly, but program. on for -- bloodstream it's game-changing all closer sometime is And innovative again, data that. Accelerate industry is next just Thank incorporating leaders Arc support go finally, then into coming and and Customers clinical PVC. our moving submission good remain over million a Wave progress susceptibility trials track significant bloodstream make of be behalf a quarters, commercially system good Wave. market not next a continue looking solution total testing, for Wave Arc for that we with well, have in beyond our market. First your only progress the anticipate us and as will well you partnership. PVC, our as made infections.On rapid on XXX I'd BD you Pheno a infection, months to submission entire with And the have to for interest their of and a approval continue solution to

Operator

for The today's now conference is attending presentation. Thank you concluded.

You disconnect. may now

Accelerate Diagnostics (AXDX) 9 Nov 232023 Q3 Earnings call transcript