Q3 2021 Seer Inc Earnings Call
Good day, Thank you for standing by welcome to the <unk>, Inc. Third quarter 2021 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need a press star one on your telephone please be advised today's conference may be.
Record. It if you require any further assistance. Please press Star then zero I would now like to hand, the conference over to your host today carry Mandeville.
<unk> relations. Please go ahead.
Thank you earlier today <unk> released financial results for the quarter ended September 32021.
Not received this news release or if you'd like the attitude. The Companys distribution list. Please send an email to investor at <unk> Dot bio.
Joining me today from here.
<unk>, Barry <unk>, Chairman CEO and founder.
Amit of Sudan, President and Chief operating Officer, and David Horn, Chief Financial Officer.
Before we begin I'd like to remind you that management will make statements. During this call that are forward looking statements within the meaning of federal securities laws. These.
These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.
Additional information regarding these risks and uncertainties appears in the section entitled forward looking statements in the press release issued today.
For a more complete list and description. Please see the risk factors section on the company's quarterly report on Form 10-Q for the quarter ended June 32021, and in its other filings with the Securities and Exchange Commission.
Except as required by law <unk> disclaims any intention or obligation to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise.
This conference call contains time sensitive information and is accurate only as of the live broadcast November nine 2021.
That I would like to turn the call over to Amit.
Thanks Terry.
We're continuing to make outstanding progress and I could not be more pleased with the momentum.
We approach the close up 2021 and two.
Prepare for broad commercial release in early 2022.
Coming into 2021, we will focus on four key areas first setting the pace for innovation in the proteomics space.
Leveraging the unique capabilities of our differentiated solution.
Third coupled with exceptional customer experience with transformative products and fourth holdings.
Holding strategic relationships with key customers and partners.
Of course, as always and most importantly.
We're focused on continuing to grow our incredibly talented team.
Now 10 months into the year.
We've demonstrated tangible progress across all four areas.
On innovation.
<unk> has continued to push the boundaries of our technology at the interface of nanotechnology biology, and machine learning to deepen our access to the proteome is very young.
And our unique capabilities.
The power of this technology.
Ability to enable highly robust.
Deep unbiased proteomics at scale.
As we progressed through a limited release, we're seeing an increasing number of customers planning at scale studies of 1000 samples or more.
This is fundamentally transformative as prior to <unk>.
Deep unbiased plasma proteomics studies that were done with the size range upheld the samples.
With regards to the customer experience.
The protocol has been performing exceptionally well in the hands of customers.
Customers are extremely pleased with the entire spectrum of the experience.
From the efficiency of solar and validation to training to ease of use and quality of data that we're generating.
We're really excited to see several abstracts being presented in the fall conferences and notably these data were generated within just a few months following access to the protocol for most of these customers.
On strategic relationships.
We're making strong progress with our commercial partnerships.
Two stream, Brian workflows expanded geographic footprint.
Set up global centers of excellence.
We're also expanding our supply chain partnerships through force our ability to support our growing customer base globally.
And of course finally, we.
With our team we have continued to build our organization and talent across a number of critical fronts, including operations and quality.
Product development and data.
And our commercial team.
Yes.
We are well positioned to scale our business.
We head into 2022 and broad release.
Now we continue to see a strong market response to their particular product suite.
Revenue for the third quarter was $2 2 billion with one $6 million of product related revenue, reflecting the increase in the installed base and usage of the <unk> products.
Our funnel of prospective customer continues to expand and include a broad range of global customer types, including pharma.
We added new limited with these customers in the third quarter.
And we are on track to meet our goal of high single digit number of sites across key applications in markets.
We are particularly pleased with the caliber and ambitions of these customers.
Early data was submitted by customers.
American Society for mass spectrometry.
SMS Contra.
Conference, which was last week, demonstrating how uniquely this technology enabled deep unbiased plasma proteomics at scale.
We saw customers applying technology in new ways for the first time, including novel methods, such as PMT novel analysis, such as glycoprotein Youll make and novel insights generated from deep and unbiased detection of disease related proteins.
Collectively this body of data demonstrate the power and flexibility of our technology.
Empowered customers.
And open up this market.
Throughout our first two phases of commercialization.
I've been extremely pleased with how our technology has performed in customer hands, including.
Ease with which the system has been implemented.
Robustness of how the assay performs.
And quality of data that is being generated.
We have also developed close customer relationships.
Which will enhance our ability to rapidly deploy applications accelerate market creation and got adoption as we head into broad release.
And the feedback we're receiving indicates that customers are really quite pleased with.
Whether they come from the proteomics genomics or the backbones.
We have been able to get up to speed and get going very quickly with our automated assay that requires little hands on time to provide an easy to use rapid and reproducible workflow.
It is clear that our solution is positioned to enable deep unbiased proteomics at scale for the first time.
The ability for technology to rapidly expand the discovery of new content at the amino acid peptide level is one of the most significant variable in opening up this market.
We're also uniquely solving the sampling Pablo serving the entire dynamic range of deposit portfolio.
In doing so we're not only enabled discovery of novel content unprecedented rate.
We also enrich the value that the entire proteomics ecosystem can create.
This will benefit not spec providers software providers and others, which is why so many of these companies have begun to partner with us.
As we extend our footprint globally with what is already a disruptive product. We're also pushing our next set of innovations to further extend the capabilities of the <unk> product suite will.
Continuing to expand our software features that streamline data management across our workflow and leverage the power of our nanoparticles to lay a roadmap into the future.
We are committed to driving a continuous stream of new products and product enhancements.
Enhancements.
That will set the pace for innovation in proteomics.
There continues to be a growing enthusiasm and energy a lot of that technology.
We continue to make strong progress across all dimensions of our business.
As our performance this quarter demonstrates.
We're rapidly laying the ground work for broadband in 2022.
I'm inspired by the progress of our customers' proud.
Proud of the strides were making with our technology.
And grateful for the hard work that the team is putting in everyday.
With that I will now turn the call over to Amit for more detail on our commercial progress.
Thank you.
I'm excited by our strong commercial progress as we execute against our objectives for the year and I believe that our measured approach to commercialization is paving the way for broad release customers to seamlessly adopt the party gap products <unk>.
And scale their studies.
We are already seeing increasing momentum at customer sites at the experienced the power of our technology firsthand in their pilot studies presented on those studies and re imagine what they can do in scalable future studies.
We saw the first of these customer presentations at ASML last week.
Starting with Oregon Health Sciences University Knight Cancer Institute, one of our collaborations like <unk>.
As we previously shared following their pilot study.
<unk> has obtained funding.
And he's in the process of receiving samples to initiate a large scale prostate cancer study that will include at least 500, and possibly up to 1000 serum samples.
This study would be the largest unbiased deep serum proteomics effort ever undertaken at the institute and potentially ever anywhere.
At ASML.
Sure the poster that documents results from its smaller pilot scale study.
These results and they are very positive experience with the party graphs at this stage for their fall on study, which will be highly scaled and carefully designed to a defined clinical endpoints.
Theyre thoughtful and thorough plan for this scaled study will provide a blueprint that others can follow in tackling projects of similar size and complexity.
And other collaboration customer devote institute shared the poster using to pretty graph to look at the plasma proteome Ah patients undergoing therapeutic ablation and monitoring the resultant tissue damage on a time course as a model for myocardial infarction.
This data was compared with the previous method, we choose extensive depletion and fractionation on similar samples and was published in nature protocols in 2017.
This poster demonstrated <unk> ability to dramatically reduce time and labor, while robustly and deeply sampling to cardio with increased sensitivity.
Researchers have road, we're able to detect an average of 2002 hundred proteins in each of three patient plasma samples across five time point with a total of approximately 4000 proteins identified across all measurements.
So pretty good enabled earlier detection of <unk>, a key group of proteins, whose abundance in plasma is an indicator of potential heart trauma with many more peptides per sample improving census activity versus their previous method.
They also detected new potential biomarkers using they're pretty good.
These biomarkers need validation, but theyre detection points to the promise of empower Dakota graph to identify novel content and deepen biological insights.
This study lays the foundation for future use of the <unk> graph to steady complex diseases and to scale up hundreds of thousands of samples while delivering the performance needed for translational and clinical research.
Sanford Burnham private its medical Discovery Institute researchers at Sanford Burnham demonstrated the compatibility of the car to graft product suites tend to mask tag or TMT multiplexing and popular method method to increase the throughput and sensitivity of mass spectrometry.
Using TMT researchers processed four pooled samples in quadruplet and detect at a total of 2000 and 785 protein groups across those samples.
What we believe is unprecedented reproducibility for deep unbiased proteomics shown by Cvs of approximately 15%.
Importantly, these proteins were detected across nine orders of magnitude of dynamic range and can include important classes of proteins, such as 456 cancer related proteins and at least 163 FDA approved drug targets 40, cytokines and many TNF proteins that are in.
The picogram per milliliter quantities in plasma.
This study demonstrates that the pretty graph provides deep access across the plasma proteome is highly adaptable to commonly used mass spec methods and can be a highly valuable tool for clinical and translational research a varying scales.
And finally protein metrics, a privately held company who software is employed industrywide for protein characterization.
Including quite constellation analysis, and a host of other post translational modifications or PGM use pilot data from the <unk> product suite to look at the glycoprotein, which is quite important for biomarker discovery.
Protein glycosylation is an important class of post translational modifications that can have dramatic impact on protein structure and function in health and disease.
Studying the protium at the level of amino acid and peptide resolution and identifying novel clinical forms of proteins has important implications and biomarker discovery and drug target identification.
In this study the paragraph product suite enables analysis of subpopulations of the glycoprotein them without the need for subsequent LIFO peptide specific enrichment.
Demonstrating that the protein graph not only enables deep unbiased proteomics that scale, but can also identify a large range of protein forms including those found in post translational modification.
These early results demonstrate the unique capabilities that are pretty wrapped product suite to unlock much of what is yet unknown about the proteome is specific variant and the critical role dose protein variants play in governing biology.
It is exciting and gratifying to see that once we put our technology into customers' hands.
Are able to move quickly.
Important results and generate novel insights even from initial pilot study.
Switching to our commercial progress we are well on our way towards meeting our goal of high single digit limited release customers, who coupled with our collaboration customers are forming an important base of lighthouse accounts and providing blueprint for broad commercial release to follow.
These customers represent an expanding set of customer types of application areas, including multibillion dollar companies, some with substantial R&D and commercial operations across multiple geographies, including China.
Heading into 2022, we have a growing pipeline of prospective customers across a diverse range of applications and markets and we are ramping our commercial efforts to meet this demand.
We are building out our commercial capabilities and operations we.
We are scaling our team, adding a number of highly talented individuals across marketing sales and support.
And we are expanding our commercial partnerships to extend global reach and allow us to serve a diverse customer base.
Overall I'm extremely pleased with the execution of our commercial strategy over the first 10 months of the year.
We are engaged with thought leaders and seeing a large scale projects planned or funded in record time.
We are seeing robust performance at a product in customer hands with compelling data being presented just months after customers gain access to the technology.
We are building, a broad and deep pipeline of prospects and are continuing to scale up our commercial organization to meet the opportunity.
All of this makes me very confident as we round the corner into 2022 and towards broad release.
With that I will now turn the call over to David.
Thanks, Amit.
Total revenue for the third quarter of 2021 was $2 2 million compared to $72000 in the third quarter of 2020.
The increase in revenue was primarily due to sales of products related to our <unk> product suite.
Revenue consisted of sales of pretty rapid SP 100 instruments assay kits platform evaluations services and grant revenue.
Product related revenue for the third quarter of 2021 was $1 6 billion.
Including related party revenue of $787000 and consisted of sales of SP 100 instruments assay kits and platform evaluations.
Related party revenue of $787000 represents product sales to programmatic as we expected and have described previously <unk> is ramping faster than other limited release customers, primarily due to their deep familiarity with the technology, which has allowed them to scale quickly as they interrogate hundreds and soon thousands of carefully collected.
And curated clinical samples.
Service revenue was $500000 represents the completion of a project and an agreement with a large pharmaceutical company.
While we have no plans to enter into the service business as a normal course offering to our customers. We will continue to deploy our capabilities and unique strategically important situations, where one we want to catalyze adoption of our prototype product suite to develop a specific market or two we partner with large institutions that have significant clinical assets.
Jointly undertake an important study.
As such you may see us recognize service revenue on an intermittent basis, rather than consistently quarter to quarter.
Grant revenue from our SCR or a grant from the NIH was $10000 in the third quarter of 2021, representing a decrease in activity related to this grant in the third quarter of 2020.
Total gross profit inclusive of grant revenue was $1 2 million for the third quarter of 2021, representing a gross margin of 54%.
Gross margin was driven by product mix and the recognition of service revenue in the quarter.
Total operating expenses for the third quarter of 2021 were $19 6 million compared to $8 $5 million in the third quarter of 2020.
Research and development expenses for the third quarter of 2021 were $7 7 million compared.
Compared to $4 8 million in the third quarter of 2020, the increase in R&D expenses was primarily driven by an increase in product development efforts related to our <unk> product suite, including increased employee compensation costs and other related expenses, including stock based compensation.
Due to growth in research and development personnel and increased costs related to the expansion of facilities and depreciation of laboratory equipment.
Selling general and administrative expenses for the third quarter of 2021 were $11 9 million compared.
Compared to $3 7 million in the third quarter of 2020.
The increase in SG&A expenses was primarily driven by an increase in employee compensation and other related expenses, including stock based compensation due to growth in selling general and administrative personnel and.
In addition, we incurred increased marketing costs related to the limited release phase of our commercialization plans and increased costs related to becoming a public company.
Net loss for the third quarter was $18 4 million compared to $8 2 million in the third quarter of 2020.
We ended the third quarter of 2021 with approximately $506 6 million in cash cash equivalents and investments at this point I would like to turn the call back to me for closing comments.
Thanks, David I'm incredibly.
We are proud of our team at <unk> and the progress, we're making to transform proteomics and empowered to scientific community.
We continue to execute on our key objectives and look forward to updating you on our progress as we continue to open up a new gateway to the podium.
With that we will now open it up to questions.
Thank you.
Do you have a question at this time. Please press Star then one on your Touchtone telephone.
<unk> has been answered or you wish to remove yourself from the queue. Please press the pound key.
And our first question comes from the line of Derik de Bruin with Bank of America. Your line is open. Please go ahead.
Hello, and good afternoon.
Okay.
David can you I know, it's a little bit early but.
Any idea on the run rate pull throughs on the instruments and also just some color on what were instruments and consumables in terms of the product revenues.
Yes Derrick.
It is a little too early to talk about pull through I think.
Again, given where we are in terms of folks getting the instrument in ramping up its really.
Really just too early what I can tell you on product revenue.
Instrument versus consumable I think the way to think about it this quarter is.
This product revenue is as you'll see in the 10-Q as you break it out as.
It is primarily instrument revenue.
And then related party revenue, which as <unk> revenue is primarily consumable revenue and this is exactly what we kind of expected to see at this point given the prognostics roughly kind of two to three quarters ahead in terms of their familiarity with the technology, which has allowed them to get to the point of scale projects faster than others have simply because.
They've had a head start just given their familiarity here.
But the instrumentation is the leading indicator of the growing installed base, we have and the customer breadth.
And so we do expect to see.
That would be a lead to expanding consumable revenue ramp as those customers get up to speed with.
With the technology and the projects that we're working on.
Right and.
The related party revenue was quite a bit higher than what we thought it was going to be is that a good run rate or <unk>.
Going forward I'm just trying to.
Happy to.
Understand the importance of it but just would like to sort of get a better sense on just how to model it.
Yes, I think the way to think about that Derek at least in the short term as we expect product gnomic again, which is related party revenue to be a similar percentage.
In terms of overall revenue.
Quarter to quarter I think youll.
The other customer base broadens out and that revenue ramps I think we will start to see that decline a little bit as we move throughout 2022 and 2023.
But in the short term I would think about it in kind of a similar ZIP code in terms of percent of revenue.
Got it and just one question on some of the posters were presented.
Notice that under the Sanford Burnham poster at <unk>.
These were about 15% on the broad it was around 25%.
The Cds.
Just sort of curious is like.
Can you just help me understand the comparison between the labs is like why one would have such a better reproducibility in one versus the other.
Yes.
I would just like to sort of like understanding what's the specific of experiments and sort of dealing with that and I guess are those 25% levels.
Is that is that a good range as we're thinking about what your customers can.
Huge.
Trying to put trying to benchmark it towards other methods.
There is I think as you look at.
As you look at <unk> you have to also think about the depth of the protein coverage.
Folks are seeing.
The number of samples.
Sure.
Looking at.
So for example in the case of growth.
It was three samples.
Over.
Over five time course.
And then the.
Protein sample the cost tied to putting ideas across the those samples approached 4000 individually it was north of 2000.
So thats a different kind of a readout of that.
That the burden of folks got and again, it's just a function of the sample that they use is also a function of the.
The detection and the gravy and time that they use so as you increase the depth.
Derek you would absolutely expect for that CV to widen that is normal.
So thats that we should think of it.
Okay. Thanks.
I'll get back in the queue I don't want to hog all the questions.
Thank you and our next question comes from the line of with Morgan Stanley. Your line is open. Please go ahead.
Hi, This is Neil on for David could.
Could you give us a quick update on update on medical in progress with a pretty good drop in China and any early color on what the order book looks like there.
Let me let me let.
Let me have on these comments.
On where we are with the China in light of experience maybe more appropriate.
We need to kind of way and I'll have David Lane as well.
Thanks.
So I think as we announced last last quarter to you we have signed a distribution deal with inline medical.
Really excited about getting that relationship going.
And so far the progress we've made with him has been really quite positive and strong as we mentioned to you. Our original strategy was to get go into China in the middle of 2022, So we pull that strategy, we will pull the execution of it up.
About a year.
And so the way I would think about that one is that.
We are just setting up as a distributor and we're doing it so that we can actually begin to expand on our book of business in China, and so I think you can expect to see results of that play out over the course of time, but primarily in 2022, but I'm really quite pleased with the way that the relationship has already gotten off the ground the level of engagement by enlighten and.
So that folks are up and running and up to speed by the time the quarter comes out we need them to execute.
I think that's been the plan.
I am very proud of the commercial thing that we built benefit because after that maybe just a couple of things so totally acknowledging entitled Labor market, but I think to the point that omead right given the range and caliber of people we have around the table in the commercial team already the opportunity that the company represents we haven't really had any complex.
Your difficulty either identifying recruiting are bringing a more commercial staff Vietnamese sales support our marketing so I feel really good about where we are in terms of.
Today, quite frankly, and our preparation for 2022.
Got it that's it for me. Thank you for taking my question.
Thank you and if you have a question at this time. Please press Star then one and our next question comes from the line of Tyco Peterson with J P. Morgan. Your line is open. Please go ahead.
Hi, This is Rachel and for cake. Thanks for taking the questions. So first off can you just talk about a P faced any supply chain or inflationary pressures this quarter.
And supply chain constraints of obviously gotten tighter in recent weeks that we've been hearing about it more and so could you talk about your confidence around ramping inventory ahead of the broader rollout and 22.
I'm sorry. The last question can you repeat your last question for me.
Yep, just your confidence with the broader rollout in 2022, given the recent supply chain constraints that we've been hearing about across the industry.
Got it okay.
So look today.
Our supply chain hasn't been affected by Colgate.
As we had anticipated.
A lot of these potential shortages early and work with our suppliers to insure timely delivery of the components that we need to support our customer base. So.
So based on what we know today, that's all I can speak about.
And also of the very close relationship that we have with our suppliers.
Anticipate any supply to shortage, but of course COVID-19 itself.
Is unprecedented fluid.
So it's hard for me to anticipate what may be coming around the corner, but suffice it to say the visibility that we have is one that improving side of that curve.
And so really anticipate any difficulty note.
The one challenge I would say we have is with X U S.
Where we are actually seeing some difficulty just getting there in person.
Because of challenges that.
Just international travel brings to our team in order to get there.
And then to install and really had a good customer experience.
But again, we're managing those things so in the us feel very good.
About where we are in terms of both the balance of 2021 and heading into rugs in 2022, and then as far as X U S. I think we'll have to see how that plays out, but Sony industrious on complexity for us.
Okay.
I think about it.
Perfect. Okay, and then last name for me. So I appreciate the commentary around that $500000 of service revenue could you just give us some more color on that project with a large pharma company and how did that service product come depression, and then it sounds like that product is complete. So can you talk about any feedback that you received from that large pharma partner.
Yeah, Let me go.
Talking much about the specifics of the these projects, but limited when we feel comfortable giving as much color.
Sure.
So.
The specifics of this project is again this is a.
Is a customer and since you are a customer would actually be a service project is really interested in getting going with a reasonable sized project pretty quickly and getting results back in a relatively fast turnaround time and as we've told you.
We anticipated this which is why we're looking to actually set up and stand up the service centers of excellence and now we have potential candidates at centres of excellence among our actually existing early access is a rather limited release customers, but it is going to take us a little bit of time to get them all completely set up to the point that there can process. These numbers of samples and so.
This was really temporary issue, where the customer wanted to have data very quickly on a large sample study.
And we felt very comfortable that we could execute against that which is what we did and as David mentioned.
From time to time, there are going to be these types of projects where for strategic reasons from a timing reason for perhaps confidentiality reasons under part of customer we ended up being the best execute or of those types of projects for those customers will be opportunistic in those instances because our primary business is not as services model that is what we want.
Other people to do but from time to time circumstances are going to put us in a position to be the best if you will site to take care of you on the project, but but the way I think about these things are these are largely often times four runners of future demand for similar type or larger scale projects.
That's great. Thank you.
Thank you and I'm showing no further questions and this does conclude today's question and answer session, ladies and gentlemen, this asset that's complete today's conference call. Thank you for participating you may need us connect everybody have a great day.
[music].
[music].
[music].
Good day, Thank you for standing by welcome to the Sphere, Inc. Third quarter 2021 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need a press star one on your telephone. Please be advised today's conference may be record.
If you require any further assistance. Please press Star then zero I would now like to hand, the conference over to your host today carry a minute ago.
Investor Relations. Please go ahead.
Thank you earlier today do you ever released financial results for the quarter ended September 32021, if you've not received this news release or if you'd like the attitude. The companys distribution list. Please send an email to us.
Bester, a theory that buyout funds.
Why don't you say from here or a week, there Bob Chairman and CEO.
Oh and founder.
Oh, Sudan, President and Chief operating Officer, and David Horn, Chief Financial Officer.
Before we begin I'd like to remind you that management will make statements. During this call that are forward looking statements within the meaning of federal securities laws.
These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.
Additional information regarding these risks and uncertainties appears in the section entitled forward looking statements in the press release issued today.
For a more complete list and description. Please see the risk factors section on the company's quarterly report on Form 10-Q for the quarter ended June 30th 2021, and then this other filings with the Securities and Exchange Commission.
Except as required by law here disclaims any intention or obligation to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise.
This conference call contains time sensitive information and is accurate only as of the live broadcast November nine 2021.
With that I'd like to turn the call over to Amit.
Thanks Terry.
We're continuing to make.
Outstanding progress and I could not be more pleased with the momentum.
As we approach the close up 2021.
And prepare for broad commercial release in early 2022.
Coming into 2021, we were focused on four key areas.
Setting the pace for innovation in the core yogurt States second.
Leveraging the unique capabilities of our differentiated solution.
Third coupled with exceptional customer experience with transformative products and fourth.
Holding strategic relationships with key customers and partners.
Of course, as always and most importantly.
We will focus on continuing to grow our incredibly talented team.
Now 10 months into the year, you have demonstrated tangible progress across all four areas.
On innovation.
Team has continued to push the boundaries of our technology at the interface, our nanotechnology biology and machine learning to do.
Deepen our access to the proteome there yet.
And our unique capabilities.
The power of this technology.
Ability to enable highly robust.
Deep unbiased proteomics at scale.
As we progressed through limited relief, we're seeing an increasing number of customers climbing at scale studies of 1000 samples or more.
This is fundamentally transformative as far as you see here.
Deep unbiased plasma proteomics.
Don willing to size manage upheld the samples.
With regards to the customer experience.
The project has been performing exceptionally well in the hands of customers.
Customers are extremely pleased with the entire respect to up yet.
From the efficiency of solar.
And validation to training to ease of use and quality of data that we're generating.
We're really excited to see several abstracts being presented in the fall conferences and notably these data were generated within just a few months following access to the project.
For most of these customers.
On strategic relationships.
We're making strong progress with our commercial partnerships.
Two stream, Brian workflows expanded geographic footprint.
Set up global centers of excellence.
We're also expanding our supply chain partnerships to force our abilities to support our growing customer base globally.
And of course.
Finally.
With our team we have continued to build our organization and.
It caused a number of critical fronts, including operations and quality.
Product development and data.
And our commercial team.
Yes.
We are well positioned to scale our business.
We head into 2022 and broad release.
Now we continue to have strong market response to the reported product suite.
Revenue for the third quarter was $2 2 million with $1 6 million of product related revenue, reflecting the increase in the installed base and usage of the paragraph products.
Our funnel of prospective customer continues to expand and includes a broad range of global customer types, including pharma.
We added new limited with these customers in the third quarter.
And we are on track to meet our goal of high single digit number of sites.
Applications and markets.
We are particularly pleased with the caliber and ambitions of these customers.
Early data was submitted by customers to be.
American Society for mass spectrometry.
Hi, Matt.
Conference, which was last week, demonstrating how uniquely this technology enabled deep unbiased plasma proteomics at scale.
We saw customers applying technology in new ways for the first time, including novel methods, such as PMT novel analysis, such as glycoprotein Youll make and novel insights generated from deep and unbiased detection of disease related proteins.
Collectively this body of data demonstrates the power and flexibility of our technology.
Empowered customers.
And open up this market.
Throughout our first two phases of commercialization.
I've been extremely pleased with how our technology has performed and customer here, including.
Ease with which this system has been implemented.
Robustness of how the assay performs.
And quality of data that is being generated.
We have also developed close customer relationships.
Which will enhance our ability to rapidly deploy applications accelerate market creation and got adoption.
Heading into broad release.
And the feedback we're receiving indicates that customers are really quite pleased.
Whether they come from the proteomics genomics or the backbone.
We have been able to get up to speed and get going very quickly with our automated assay that requires little hands on time to provide an easy to use rapid and reproducible workflow.
It is clear that our solution is positioned to enable unbiased.
Scale for the first time.
The ability for technology to rapidly expand the discovery of new content.
Or peptide level is one of the most significant variable in opening up this market.
We are also uniquely solving the sampling Pablo surveying the entire dynamic range of deposit portfolio.
In doing so we're not only enabled discovery of novel content unprecedented rate.
Also enrich the value that the entire proteomics ecosystem and create.
This will benefit not spec providers software providers and others, which is why so many of these companies have begun to partner with us.
As we expand our footprint globally with what is already a disruptive product. We're also pushing our next set of innovations to further extend the capabilities of the <unk> product suite.
We're continuing to expand our software features that streamline data management across our workflow and leverage the power of our nanoparticles to lay a roadmap into the future.
We are committed to driving a continuous stream of new products and product enhancements.
Enhancements.
That will set the pace for innovation in proteomics.
There continues to be a growing enthusiasm and energy a lot of that technology.
We continue to make strong progress across all dimensions of our business.
As our performance this quarter demonstrates.
We're rapidly laying the ground work for Barclays in 2022.
I'm inspired by the progress of our customers' proud.
Proud of the strides were making with our technology.
And grateful for the hard work that the team is putting in everyday.
With that I will now turn the call over to Amit for more detail on our commercial progress.
Thank you.
I'm excited by our strong commercial progress as we execute against our objectives for the year and I believe that our measured approach to commercialization is paving the way for broad release customers to seamlessly adopt the party got products suite and scale their studies.
We are already seeing increasing momentum.