Q1 2021 Olink Holding AB (publ) Earnings Call
Good day, and thank you for standing by and welcome to the podium.
And it makes first quarter 2021 earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session lots of question. During the session you will need the press star 1 of your telephone. Please be advised that today's conference is being recorded.
Kind of any further assistance. Please press star Zero I would now like turn the conference over to your speaker today and at the women Investor Relations manager. Please go ahead.
Good morning, everyone. Thank you all for participating in today's conference call on the call from Rolling We have John Hymer, Chief Executive Officer, and Chief Financial Officer and.
Earlier today of link released financial results for the first quarter ended March that the first 'twenty 'twenty 1.
A copy of the press release is available on the company's website.
Before we begin I'd like to remind you that management will make statements. During this call that include forward looking statements within the meaning of federal Securities Law, which are made pursuant to the safe Harbor provision of the private Securities Litigation Reform Act of <unk>.
And 95.
And the statements contained in this call that relate to expectations or predictions.
Future events results or performance are forward looking statements.
Actual results may differ materially from those expressed or implied in the forward looking statement due to a variety of factors.
For a list and description of the rig.
These risks and uncertainties associated with the only isn't at least for referred to the risk factors section of <unk>.
And our form S..1 filed with the Securities and Exchange Commission on March 'twenty, 4 'twenty 'twenty 1.
We urge you to consider these factors and you should be aware that these statements should be considered estimates only and are not a guarantee of future performance.
Also in the remarks or responses to questions.
Management may mention some non-GAAP financial measures.
The conciliation of adjusted gross profit and the.
The aid and search and other non-GAAP financial measures.
And the most.
For the comparable GAAP and message.
Are available in the recent earnings press release available on the company's website.
This conference call contains time sensitive information and the fact that only some of the live broadcast today May 22021.
Oh link disclaims any intention or obligation except as required by law.
The state are revised and financial projections or forward looking statements, whether the cost of new information future events or otherwise.
And with that I will turn the call over to you.
Thank you Dana.
Good morning, everyone and thank you for joining over and its first quarterly earnings call.
Scott and I will start with prepared remarks, and then we will take questions.
I'd like to start by saying that we are very excited to be speaking for you on our first quarter. Following the IPO on March 28.
Listing on NASDAQ and racing from and $64.7 million U S dollar and gross proceeds.
And I'm pleased to be able to report that we had a strong first quarter with reported total revenue of 13.
And let's start with the.
This represents significant growth of 70% with the first quarter of 2020 on a reported basis.
We generated significant growth in both.
And service segment with reported year on year of growth of 89%.
Respectively, driven by the export platform.
On behalf of OLED I would like to thank everyone, who was involved with the IPO.
And the investment community support we are now better positioned to invest and further accelerate our plan to expand the adoption of proteomics. The held helped enable better understanding of real time human biology.
While we had the chance to tell our story for many of you through our IPO process.
Start today's call with the introduction to elite and our platform solution.
All of them and get the market leader in the emerging field of proteomics addressing overwhelming growing and accelerating inefficiencies in healthcare and drug development to day by providing clarity and mechanistic biology with our differentiated platform.
Only and is helping researchers and condition investigate protein pathways that drive the XE.
Guidance candidate and drug development and.
Outcome in drug development earlier, and more accurate diagnosis of patients ultimately ensure that the right patient receives the right treatment at the right.
Jim.
Our platform of products and services have demonstrated success and used by over 600 customers email for the country.
Our customer base includes both large and small biopharma company as well as the leading academic institutions around the world.
In addition to our customer footprint utility and value of our platform has been validated as the research product use and that's the basis of almost 550 peer reviewed publications through end of March in 2020.1.
2 papers worth highlighting are based on the explore platform, which is of particular interest due to the fact that the platform was launched less than 12 months before each of those published.
The first publication titled next generation plasma protein profiling to monitor the health and D. C is the longitude and non wellness diabetes study published in nature led by professor of must be yesterday.
And this study explore what's the platform of choice for the researches to investigate and wellness and treatment in the diabetic patient cohort.
The study examined and newly diagnosed patients with type 2 diabetes before and jewelry and therapeutic intervention using plasma protein profiling.
He will force found evidence that of panel of protein.
And this will be used for the early diagnosis of diabetes, including the stratification of patients with regards to response at all to met for him and treatment.
The authors concluded that the the study demonstrated the value of comprehensive plasma profiling for precision medicine and efforts.
Specific findings from the study will of course require validation among larger cohorts, but it's very exciting to see the newer platform associated with cutting edge research.
The second publication longitudinal proteomics come out of it.
Plasma from patients with severe COVID-19, Ruby the patient survival associated signature tissue specific cell death, and 7 per cell interaction.
Longitude and Atlanta analysis from COVID-19 by researchers at the Broad Institute and MGH and Boston led by Professor of my tailwind.
1 unique aspect of this study was the.
The area of sampling of subjects and both the inpatient and outpatient setting and.
Table and the monitoring of intra individual changes in circulating protein as patients move from early disease, the clinical Victoria <unk>.
This allowed not only the added for identification of potential by market markers characteristics for different disease stages, but also the examination of temporal patterns of protein expression that we're associated with the severe versus non severe COVID-19.
These 2 papers well encapsulate the scientific utility of only and the explore platform as well of the breath of the research that our platform enables.
Oh link is differentiated in the market with our disruptive and proprietary proximity extension of assay technology.
Which is used and discovery translational and clinical applications.
<unk> comprises of 3 product lines explore targeted and focused of course.
<unk> products or our service through our analysis service labs.
Each product allows scientists to the text and quantify protein by of market target with 1500 available day to day soon to be 3000, and expanding to 40.502022.
We believe that our proprietary and patented technology as the foundation necessary for broad application and large scale discovery as well as more targeted clinical and diagnostic applications.
Compared to many other technologies P A's.
Total is scalable and can enable faster and more informed decisions and research with earlier detection and the quantification of protein Biomarkers and high multiplex and high throughput.
And assay performance debt total debt.
Comparable compromise on data quality.
Our newest product is explore launched worldwide at the service offering in June of last year and robust keep operating just a couple of months ago in March this year.
Explore combined power you need to pay a high multiplexing technology with next generation sequencing readout.
The product overcome significant limitations and other procurement technology, including remarkably increased performance in high multiplexing throughput and cost efficiency.
We achieved these improvements while maintaining and maintaining the same robust transparent and thorough validation of each assay.
Generating accurate and reproducible data that can be trusted turning finding into actionable outcome.
This exciting offering from Ali has been met with excitement and.
And strong adoption from our customers.
In the first quarter explore represented more than 50% of total revenue as compared to 26% for the full year 2020.
We are pleased with explore is traction at the service offering and are very excited about the momentum and the kids business.
We are just beginning to commercialize the FERC, but we are very pleased with the initial success and positive response from the market.
And the end of April Illumina hosted a virtual meeting on and explore.
And its integration for <unk> and next week and get users.
We expect the explored the continues to be at the top driver of revenue growth Rolling and a.
A shift of the business from fee for service to a kid.
And as model overtime.
Our target and focused product and use Q PCR readout and flew dime biomarker <unk> HD system, but as we discussed during the IPO process. We are very excited to open up our order books for owning signature.
And next generation modern cost effective bench top Q PCR system for our target for.
Focus product portfolios.
Jim.
We anticipate shipments of systems to begin and the fourth quarter.
We believe owning signature will drastically lower the hurdles of adoption for our and more targeted product.
And in conjunction with the launch of volume signature. We're also very excited to start development of the new flexible product offering for our customers can briefly pick and choose up to 'twenty protein biomarker target.
This product will add a great. New addition, in our target portfolio, which we believe our customers will very much appreciate it.
We will begin selling its flexible product in 2022.
On top of that we will also open up our order books for our 3 K product already in June.
Doubling our library of validated protein by market talk.
This is an important milestone in our ambition to rapidly expand the offering in the high Tech space.
We and our customers are very excited about the expansion of our protein biomarker targets and we anticipate shipping and recognizing revenues related to the <unk> product in the fourth quarter of this year.
Thus we reported during the IPO.
<unk> is a global and the price with the strong footprint in the U S and Europe and a rapidly growing presence in China.
During the first quarter, we were particularly pleased with our performance and the America after seeing some impact on our business. During 2020 as a result of COVID-19.
And the first quarter revenue was $7.3 million U S dollars in the Americas growing 142% year over year.
In EMEA and rest of the world revenue growth was 51% negative 41% respectively.
Scott will discuss the details of our revenue and a moment.
And is great to see that America is picking up steam to pre COVID-19 growth and also the continued strong growth across EMEA.
And we established our business in China during 2020 with the opening of our first office and Shanghai early in the year.
In China, we've been focused on getting our commercial team in place and have strengthened the business development and application science team as well as working through the regulatory and.
Ministry of issues to ensure smooth business operation for all customers.
Following the IPO OLED remains focused on investing in the business to accelerate research and development as well as expand commercial infrastructure to drive revenue growth.
We remain confident in expanding our protein library to 3000 assays later this year and for.
500 in 2022 in the high Tech space.
In parallel we are building out our mid plex portfolio of product and looking at various opportunities.
To accelerate R&D as well as product and service offerings from only.
Further the IPO proceeds may enable owning to pursue technologies and capabilities that are better acquired and built internally.
As you recall, we close and acquisition of accuracy era of Swedish manufacturer of antibodies in April 2020.
Agri Sarah had previously been supplier to owning by and by owning aggregator and we've been able to accelerate the development of antibodies and generation of new assets within the <unk> family.
The integration of equity theater has gone as well or perhaps better than we had anticipated at the time of closing and we are now actually expanding operations of the anchors and Sarah and.
New larger facility and transferring some of the early upstream EBITDA development processes the email.
We're accuracy of rate base.
In parallel we remain very open to opportunities to expand commercial and R&D efforts that will accelerate our growth and market leadership position.
We continue to invest according to our strategic plan.
Consistent with what was communicated during the IPO roadshow.
We continue to add meaningful number of hires to our commercial and R&D in particular, but we're holds what we are really growing all parts of the business and we are investing slightly ahead of the curve.
We added in 2020 with 214 employees and as of the end of March we were 270 employees.
On the run rate basis included all of the heightened personnel, who have not yet started and consultant. We are of 337 employees at the end of.
Of April.
Only in case of off to a strong start in 2021 with significant opportunity ahead.
We continue to grow to meet customer demand, we are making sure to watch our operations carefully.
1 area that we are more focused today than just a couple of months ago is our supply chain. We started to see some impacts from COVID-19 related to transportation and logistics, but we are in the gen. III monitoring developments of the Cri and managing through them as best as we can.
In summary, we.
We are pleased with our first quarter performance and we look forward to executing on our investment and strategic plans outlined during the road show as we move forward through 2020.1.
I will now turn the call over to Oscar to discuss our financial results for Scott.
Thanks, John and Hello, everyone from a store.
Mentioned earlier total revenue for the first quarter of 2021 was $13.6 million U S dollars as compared to $8 million for the first quarter of 2020.
Revenue growth was driven primarily by explore analysis services and with the service segment growing 60% year over year the.
<unk> segment was our fastest growing segment with 8% to 9% year over year growth on a reported basis and.
Analysis of services revenues for the first quarter 2021 was $9.6 million as compared to $6 million and the first quarter of 2020 kicked revenue for the first quarter of 2020 volume was $2.8 million as compared to 1.5 million in the first quarter of 2020.
Other revenue was $1.2 million for the first quarter of 2021 as compared to $7.5 million in the first quarter of 'twenty.
Looking at the revenue by geography revenue in North America was $7.3 million as compared to $3 million and the first quarter of 'twenty.
The 20 <unk>.
And EMEA revenue was $5.5 million as compared to $3.7 million and Q1.2020.
The revenue in China, and rest of the regarding both the <unk> 8 million as compared to $1.3 million and the first quarter of and to try and.
Cost of goods sold was $5 million in the first quarter of 2021, resulting in the gross profit of $8.6 million the first quarter of 2021.
Compared to cost of goods sold of $3.5 million and the first quarter of 2020, resulting in the gross profit of $4.4 million and the first quarter of 2020.
Adjusted gross margin improved to 6% to 7.6% compared to 62, 2% last year the.
The increase of 540 basis points was due to an improvement in the production efficiency, leading to lower inventory variances, we typically see and improving gross margin throughout the year.
By segment adjusted gross profit margin for analysis services for 64% for the first quarter 2000 and to 1 as compared to 6% to 6% in the first quarter of 2020.
The decrease in adjusted gross profit percentage compared to the first quarter of 2020 was primarily due to the increase and lab personnel and temporary reduced efficiency and the labs SP, we're introducing the explore service offering.
Adjusted gross profit margin for kids was 8% to 3% for the first quarter 2021, as compared to 44% in the first quarter of 2020.
The improvement in adjusted gross profit percentage for kit was due to an improvement and the production efficiency, leading to lower inventory variances and reduced level of scrapping in 2021.
Adjusted gross profit margin for other was 64, 6% to 3% for the first of all at the center, 1 as compared to 6% to 7% in the first quarter of 2020.
All other gross margin decreased as there were certain larger low margin projects related to a specific kols that was recognized in Q1.2021.
Total operating expenses for the first quarter of 2021 for $22.4 million as compared to $9.1 million in the first quarter of 2020.
We continue to invest according to our strategic plan and what the communicated during the roadshow, adding a meaningful number of hires to our commercial and R&D teams in particular.
But we are really growing or parts of the business and we are investing slightly ahead of the current.
We ended 2020 with 214 employees and of the as at the end of March 'twenty 'twenty..1 we were 270 employees.
On the run rate basis, including all hired personnel, who have not yet started and consultants. We were 337 employees at the end of April which a lot of opportunity <unk> had for the opening and we are investing accordingly.
Operating expenses of broken out as follows sales.
Sales and marketing expenses for the first quarter of $5.7 million as compared to $2.7 million in the first quarter of 2020.
General and administrative expenses for the first quarter over the $12.4 million as compared to $3.9 million and the first quarter of expense of 20 <unk>.
General and administrative expenses and the first quarter of 2021 and shoots approximately $4 million kind of all the expenses related to our IPO.
The $4 million relate the 2 management fee to semi equity and $2.7 million relating to intangibles amortization stemming from the purchase price allocation. Following some of equity this acquisition of <unk> and 2019.
Research and development expenses were $4.2 million.
Versus $2.6 million for the prior year period.
And other operating income and expenses were negative <unk> 1 million in the first quarter of 2021 as compared to $7.1 million of income and the first quarter of 2020.
Net loss for the quarter of first quarter of 2021 was $14.3 million as compared to $11.1 million in the first for trucks and transit.
Net loss per share for the first quarter of 2021 was the most of the 48.
As compared to a loss of 7% and <unk> and the first quarter of 2020.
Adjusted EBITDA for the first quarter of 2021.
It was negative $3.7 million as compared to negative $1.4 million and the first quarter of 2020.
We ended the quarter with the $191.4 million of cash and cash equivalents as of March.
Much of 31 and 2.1 following the IPO, we repaid all outstanding debt facility.
Moving to our outlook for the rest of the year, we expect revenue for the full year of 2020 of them to be and the range of 90 million to $92 million, representing 6% to 6% to 70% growth over 2020.
Now I'll turn it back to John Thank you.
Thank you Oscar.
In summary, the first quarter of 2021 was the very exciting time at the link or our dedicated team our customers and of our shareholders.
We continue to see robust adoption and appreciation from the market on our portfolio of products and service.
Our successful IPO has positioned us to invest further in our business and continue to deliver strong operational and actual.
The result, this year and deal.
This point, we will open up the call for questions.
<unk>.
Ladies and gentlemen to ask the question you will need to press. The Star then the 1 key on your Touchtone telephone to withdraw your question press the pound key please standby, while we compile the Q&A roster.
And our first question coming from the line of plenty of photo with SBB Leerink Your line of faulting.
Great. Thanks, and thanks, John and congrats on a first quarter definitely a strong 1 and.
It looks like the revenue guidance definitely ahead of the consensus numbers prior to the quarter. So the first 1.
If I could ask.
And what if you could provide explore versus the target kids I don't know if that was provided during the call and.
How should we think about the.
The service I mean service speech was.
It was pretty meaningful versus what we had and our numbers. So wanted to just get a view of how should we think about service worst of kits throughout the year, obviously, the explore product of the new product of getting out into the market and customers have a little bit of.
Buildup time in order to build their capabilities to bring this product and but wanted to get a sense from you of how should we think about modeling that for the for the full year.
Sure no.
Thanks, very much for Nick.
So we have not charged for the greater details of the difference between the explore and target kits, but the.
From bad.
And that we.
Had a significant growth and in the business.
And in this quarter compared to the quarter and 2020.
And.
So exactly to your point, if you revert to the explore kids business, we launched that offering as you know in March so towards the end and 1 of the third month in the first quarter and 2 point as well debt there.
The process for customers the setting out however.
The market as we just said that we've had a very strong reception from the market and is.
Offering and we are looking at a very strong pipeline of customers to internalize it and so we remain very confident in the projections and our plans for this year and.
Pete and very very confident and.
And with where we're at and.
Where we want to be towards stemming of the year.
Okay. That's helpful.
On the and I really appreciate you providing full year guide, but on the second quarter just wanted to.
Get a sense from you in terms of the factors, we should be considering obviously COVID-19 is ongoing right now, but you obviously and delivered a strong growth here and the first quarter U K biobank of the starting and correct me if I'm wrong.
The second quarter third quarter phenomenon more than the fourth quarter. Obviously, we appreciate the fourth quarter seasonality is usually very meaningful for you.
So given those considerations.
And what can you give us for the in terms of the second quarter and how should we be thinking about that in terms of modeling.
Right.
Yes, you're correct, we will actually be able to receiving the first batch of samples from UK biobank today.
But we will probably complete dose or 7 data until the third quarter. So we will start seeing and of collecting revenues from the third quarter.
And we.
As we pointed out the the guidance for the year. It remains intact to what we just communicated and we are remains very happy where the business is that where it's going and to your point as well.
Especially in the Americas, you'll see a fantastic growth over the last year and that.
We had a very strong business in Europe last year.
Despite COVID-19 going on but now we see.
America is really picking up steam.
And the which we foresee will continue throughout the year, obviously, COVID-19 testing and that stuff is still around but.
But we are still very hopeful and optimistic for.
For for of the situation, we're in and what we're looking at the head.
Okay.
Sure I'll take that and.
And last question, if I could squeeze and John and.
In terms of.
The product pipeline, you have 3000 of product.
The protein panel coming up here 4500 after that.
Can you give us a sense of where do you stand in terms of validation of that and other things that you need to do in order to launch those products and anything you can provide.
Sort of.
And therefore of.
4500 product and really appreciate you, providing some details around the flexible product offering with that sounds really interesting.
If you could just maybe just briefly elaborate as to what that what is the target market for that.
Product for the 2000 thirteen's or so thank you very much.
Sure. Thanks, Good question Puneet.
Yeah, No. We're very excited too as we pointed out the open up the order books for the <unk> product here in June. So obviously that is of very strong signal that the development is going very much to plan and debt we are now.
In the later stages of the product validation, which we think the very important aspect and piece of oral free net.
And provides very robust data quality and you can trust and the media and acumen and so this is very high validation, which is totally unique for OLED in this market and we put a lot of the emphasis and focus on that so and the.
<unk> product is according to plan for and ask a product is also.
Progressing to plan, where we're now and the antibody generation phase for that to develop targets to ramp up from the 3 to 4.5 K.
And most of last you mentioned the flexible operating we.
We will be launching here or start developing 1 of other and start selling and 2022.
No.
And as I also mentioned that we will be launching the Sigma and start taking orders for the signature platform here in June as well all of this can also sort.
Validating the fact that it.
It goes according to plan and on timeline and so forth.
And to collect as cutoff of collecting revenues and in the fourth quarter.
And when we look at that market.
And what we think.
Fantastic offering and very strong portfolio for that market with a more targeted panels, where customers wants to look at a bit fewer proteins.
The very extreme high throughput system, we would explore.
But in addition to that we also see that that's more of a.
Wants to be able to pick and choose a bit from a per.
Pre validate the library of assays, so that it's exactly and what we're providing the.
And the PAA is unique and its ability to multiplex. We can also provide.
Sort of.
Flexible offering and the higher multiplex them, well and the technology can help from that market as well, we will be very much focused on influx of inflammatory markers, where we which we know and represents the biggest piece of debt.
Aside from the flex.
The market of the more protein analysis, so customers will be able to pick and choose from a pre validated library of.
The industry, a few hundred targets and.
And.
And the select which proteins they want to.
And to us and.
And we will rapidly turned that around and deliberate and those those products, which we think will really complete and the offering and the very very attractive to that's not what it means the flex market.
Excellent thanks, guys.
And our next question coming from the line of Matt <unk> with Goldman Sachs. Your line is now open.
Thanks for taking my questions.
And congrats on the on the first quarter.
I just wanted to talk.
A little bit about sort of new versus existing customers I know, there's the explorer launch is very new but obviously youre getting probably a lot of feedback and seeing potentially some new customers and a lot of them are coming within analysis and then we will likely see it is.
Show up and the kids business, but could you just talk about the trend of new versus existing customers and and.
Of particular as it relates to explore and other products.
Yes, Thanks, Matt.
Yeah.
Yes, and I think the amazing opportunity that we are providing this industry here is the ability to complete the mic husky on mix perspective with proteomics on the same underlying platform. The piece of research group solar to have the in house I E. The alumina and the overseas and next week.
So I think it's Fantastic example of that is the seminar and we actually lumina hosted.
Catering to their internal sort of community of customers to those genomic customers that not in able to add proteins in the scene.
The smooth the way in the past so that it's 1 segment of the market, where we are very excited about and who we believe also see very great value. In addition to and proteins to complete the multi omics perspective to provide much higher and better clarity on.
Non real time, human biology, driving debt research.
So.
As we look probably later in the year, it's a bit early with the launch of Keith.
In March right to look at that.
Mix of existing customer base versus new customers, but equivalent point and the direction I think that.
The us being able to offer the proteomics tools for genomics usage, we will definitely be well and such area. We can talk to later in the year.
Got it thanks for that and kind of related to <unk> question, but just given that we're and may now and the east just started selling the explorer and March any sense for trends for the for the explorer kit that.
And that you can give us and then and then lastly, just.
Any feedback on pricing or any anything from customers on that and in relation to explore as you continue to roll that out.
Sure.
Yes, no I mean.
It's a bit early to talk about specifics I think we are very excited by the interest we see from the market. The pipeline. We're building the discussions we have.
Everything in the works on many of these customers wanting to bring the explore platform in house.
As we've been able to increase multiplex being utilized the tremendous advancements we've seen and GFS.
Bringing prices down and we also see strong excitement and interest on that perspective, as well from from the customer base.
A bit early to comment on specifics, but we feel very solid adult where we're at and we're super excited about all the excitement debt.
And the market and our customers are sharing with us around the export platform for sure.
Great. Thanks, John and very helpful. I appreciate it.
And our next question coming from the line of Tejas Savant.
And with Morgan Stanley Your line is open.
Hey, guys good afternoon.
So the 1.1.
<unk> for you John just to.
The start things off on the guide.
Is there anything that you're embedding in terms of the residual COVID-19 impact and the customer base and all of the supply chain here I know you called out sort of potential supply chain issues picking up a little debt and youre doing.
Youre sort of putting in place that for us to deal with it but it would be great. If you can elaborate on that specifically on the kit side and then if you can share some color in terms of the trends you saw in terms of the order book and April and May and that would be sort of effect as well.
Sure Yeah no. Thank you.
Right no. So obviously, we have the pandemic going on right and we have seen some strains on the supply chain and.
Especially around very simple and products like plates and tips for quite pending and for example, so we're obviously extremely on top of that very proactive we.
We have.
Placed orders, we're monitoring very closely and we ensure that we have what we need and stopped et cetera, et cetera et cetera.
But it's just a.
A pandemic going on a lot of Covid testing and sort of put this everyone knows right. So we just wanted to point to the.
The fact that it's the strain on the supply chain in our industry.
However, we don't feel that debt.
Has any bearing on the guidance that we're on top of all of it and being very proactive to handle that so so we feel.
Very comfortable all of them.
But just wanted to highlight that fact that there is such strength.
And just sort.
And sort of commented on just recently and we are very excited about all of the discussions we have we see a huge.
Tailwind for Brookdale and makes it the next on mix that will drive the size of the thing in this industry and we are very strongly position that the key player there so hence.
We feel very good about where we're at and where we're heading and the remainder of the year.
Got it.
Helpful and.
Then in terms of just.
The.
The UK Biobank work I know you mentioned you.
Got the samples and hope to start generating revenue and the third quarter, but can you share some color and any sort of follow on conversations with other kind of like population for youll mix customers and the pipeline or does it still remain very or need for that.
At this stage.
No on the contrary to the lot of discussion about such strategic projects and initiatives, it's a bit too early to be specific in terms of which cohorts and players and so forth but.
That's a very important element of the whole industry that we.
Collected these important <unk>, we populate them with a lot of genomic data and now we need to add the next very important and perhaps the most important omics omics to that.
Because the mix so hence brookdale and mix is what people is looking at as that has now become ready.
And the available at scale cost through put quality and so forth. So I think.
That is something that.
For sure.
And in the lot of discussions and something we will.
Hopefully be able to talk much more in detail on and.
And at later calls.
Got it got it helpful and.
And then.
To sort of a 2 part of your 1 on your analysis service expansion plans clearly.
As was mentioned earlier and the call analysis service came in higher than where I think most street models for.
So just just.
Seeing that and how the offering is resonating with customers here.
Can you just elaborate on plans for expanding that service outside of outside of Europe, particularly and the in the U S. And then in terms of the clinical strategy can.
Can you just share of what Youre seeing in terms of customers looking to bring panels to the clinic and your own internal efforts as well.
Sure.
No.
In us we see a very rapidly growing demand for proteomics and the whole linked in particular, we need to beef up and ensure that the we can deliver to net growing demand as you know we're extremely focused on.
Pushing the the kids business and the more decentralized manner, and which is sort of the.
A very strong focus of ours and the launch of of the explorer kits here and in March and and all of the discussions, we're having with customers and the market and building the pipeline and all of that but obviously, we need to ensure that we can meet the demands of both legs of the.
The business for sure.
And the second part of the question.
Regarding the clinic. So we're super excited to see how <unk> is progressing we know they are closing in on <unk>.
Launching their <unk> offering and the multiple sclerosis space.
Fantastic I think initiative with the hopefully hopefully will really make a serious impact for patients with multiple sclerosis and ensure that.
Each patient and gets the right treatment of the right time.
And it's great to follow the progress in clinical trials, the club, where we see the expansion and use of own link and many clinical studies and so forth. So.
Obviously the starts the whole process with casting that brought net and discovery too.
Identify these novel Biomarkers that can drive those insights and then take them into the clinic as well so.
Proteomics and still early days, but despite that we see a lot of fantastic traction too.
Awards for clinical use so we are equally excited and that departments.
Got it and 1 final 1 for me for Oscar Oscar $22 million, and Opex and <unk> should we essentially be thinking of that as the baseline and growth from that number sequentially through the remainder of the year.
Yes, I think sort of looking at sort of you know we've been up from providing.
Providing any guidance on sort of opex and operating margin, but I think if you look in the.
And the details you would see that the 22 million is sort of impacted by around 6 million of.
IPO related and non recurrent expenses sort.
No.
Subtract from from the underlying cost base and.
And then.
And we sort of we've talked about the sort of June the roadshow and and also during the call.
We continue to invest in.
In the organization to sort of execute.
Commercial ramp up and build up continue to vest and in R&D to pursue.
Of this opportunity and doing that.
At the high pace.
Okay.
Got it very helpful. Thanks, guys and congrats on the solid first quarter out of the gate.
Thank you.
Our next question coming from the line of some genome with BT and <unk>. Your line is now open.
Hi, Thanks for taking the questions Congratulates, congratulations on the quarter as well.
And just maybe starting off with obviously you guys are seeing a lot of strong momentum, especially with the explorer kits and explore and general.
But was curious if you have any insight into kind of the customer activity levels across the different geographic regions relative to pre pandemic levels.
And if that is hard to tease out, but given just obviously strong growth and North America, and and still decent growth and in India.
A little bit I think and pressure in the and China rest of the World region. If you could kind of talk about what you guys are seeing from the customer activity level relative to pre pandemic levels that would be helpful.
Sure. Thank you.
No and obviously the Super excited to see the Americas back to pre COVID-19 growth or accelerating from that to be honest, so fantastic first quarter from from the Americas and the.
A great shout out to our fantastic team they're delivering.
Our very strong results.
But I would really see the same thing about the EMEA to be honest I think.
Our EMEA team did wonders throughout.
2020, and delivering solid growth during a pandemic and.
The <unk> building on that growth in 2020, 1 as well is fantastic to see.
So and as to your point I mean each day.
Early days for Us in Asia.
The.
We are just getting established and setting up the business processes as we said maneuvering the human genetic regulations in China too.
Ensure smooth operations for our customers and ourselves and that region.
So it's a little bit early of course to say too much about debt, but a lot of excitement there as well and we know that they are looking.
And very closely on what goes on and the west of the more of them adopting similar types of strategies in the research as we see led by a member of it gets and EMEA.
Overall.
Very excited and perhaps mostly around the fantastic momentum and build up and growth of announced in the Americas to pre COVID-19.
Maybe the aggressive growth.
Gotcha Super helpful. And then just you know obviously 2 of publications that are related to explore very impressive already.
And then you talked about the strong pipeline of customers could you kind of talk about kind of characterize each of these customers any surprises there in terms of potential.
Potential customers that are interested in the in the P E application and we'd love to hear of kind of what Youre seeing currently.
Yes.
Yes, and no real surprises.
I think it's pretty evident to this research community net.
And we really need to add proteins for this mix of items.
Proteomics technologies, and very high multiplexing with high sensitivity the high specificity validate the date in the high throughput cost effective manner.
No. It hasnt been there and obviously now it's here and people are excited and then bring it and so it really goes across the mix from the industry to academia CRO and core labs across those domains to.
And and.
And this extra free porting Omega 2 to the mix of the.
And all the opportunities they have to conduct of the research so no real surprises related to draw the very.
A lot of excitement and interest.
And the offering and and the capabilities.
Bring to the table.
Great and then lastly from me.
The impending launch of the 3000 protein library, obviously very exciting there just kind of curious how should we think about that transition in terms of from the customer standpoint are there customers that are kind of actually of holding off until that's available before starting some of the project.
And how they incorporate that from the 1500 and then moving on to the 3000 and then beyond.
Yeah, great. Thank you and we know we're super excited as well and there's a tremendous milestone for us.
So 1 of the beauties in how we present our product.
It's very simple to start over the first 500 and and the next 1500 on top of that so I wouldn't say that the customers sort of holding off the rather start building and adding to that mix. So I think that's of great.
No.
Solution and offering that we provide that you can really add to the mix rather than have to put example, really around samples with new offerings and so of course they suggest additions so.
And I wouldn't characterize it and its rather debt.
Yes, fantastic customers are excited and they want to get more proteins and expand and they can build on to the data set that they have or are generating.
Great. Thank you so much.
Thank you. Thank you.
Ladies and gentlemen, that's all the time, we have for questions I would now like to turn the call back over to Mr. Jon Hamm of for any closing remarks.
Thank you very much operating and thank you everyone for listening in today, we are obviously super excited with the for the first quarter and the strong excitement and.
Opportunity all of them.
And grew 8% in this very important research community. So thanks, everyone for joining and we look very much forward to speaking to you soon and again, how does the fantastic day.
Ladies and gentlemen that does conclude the conference for today. Thank you for your participation you may now disconnect.
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