Q4 2021 Akoya Biosciences Inc Earnings Call
Thank you for standing by and welcome to acquire Biosciences fourth quarter 2021 earnings conference call. At this time, all participants are in a listen only mode.
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After the speaker's presentation, there will be a question and answer session to ask a question. During the session you will need to press star one on your telephone.
Please be advised that today's call is being recorded.
Should you require any further assistance. Please press star zero I would now like to hand, the call over to premium Shah head of Investor Relations. Please go ahead.
Okay.
Thank you operator, and thank you to everyone who is joining us today on this call I'm preempt Shah head of Investor Relations at acquired Biosciences.
On the call today, we have Brian Mcelligott, Chief Executive Officer, and Joe Driscoll Chief Financial Officer.
Earlier today acquired released financial results for the fourth quarter ended December 31 2021.
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 laws, which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Any statements contained in this call that relate to expectations or predictions of future events results or performance are forward looking statements actual results may differ materially from those expressed or implied in the forward looking statements due to a variety of factors for a list and description of the risks and uncertainties associated with the claim.
Business. Please refer to the risk factors section of our form S. One filed with the Securities and Exchange Commission on April 15 2021.
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.
This conference call contains time sensitive information and is accurate only as of the live broadcast today March 14th 2022.
<unk> disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise and with that I will turn the call over to Brian .
Thank you freedom and good afternoon, everyone and thank you for joining us today.
<unk> had an incredibly strong and eventful fourth quarter of 2021, as we announced powerful new spatial biology solutions reached key clinical milestones established groundbreaking partnerships and appointed additional industry leaders to our management team.
Our continued solid execution is reflected in our strong financial results for Q4, and the full year 2021 generating record revenue of $16 2 million for the fourth quarter and $54 9 million for the full year, representing a 30% top line annual growth.
In Q4, we saw an almost 70% annual growth in reagent revenue, which is fundamental to our business strategy of driving expansion of system Utilizations and recurring consumable revenue.
We finished the year with $113 million in cash providing us with a strong balance sheet with ample runway and flexibility to continue.
Continue to invest in the business.
And as a company, 100% dedicated the spatial biology.
We have adequate believe that spatial phenotyping will inevitably become the standard for analyzing any tissue sample.
Our platforms are complete end to end solutions, providing instruments reagents software and services to.
To address the spatial biology needs of our customers from discovery to translational research and ultimately for clinical use.
We now have nearly 700 instruments installed worldwide and approximately 500, mark and leading high impact publications using our instruments.
Our year over year growth in publications went from 109% in 2022.
Nearly 280 in 2021 and represents one of <unk> one of the key leading indicators.
The growing adoption of our platforms.
This adoption and demand are driven out of the simple principle that the spatial data. We provide is paramount to understanding the fundamentals of biology, and the complexities of disease.
Spatial analysis is one of the fastest growing segments in discovery and translational research with applications in areas, such as oncology and inflammatory disease neurology transplant medicine and more.
Following our IPO, we have immediately expanded our research and development efforts to accelerate the launch of new best in class spatial platforms and in parallel scaled our commercial team to drive adoption and utilization of our existing and new offerings.
Our especially at our special day in December and at the Jpmorgan Healthcare Conference in January we.
We discussed our new product offerings outline our strategic priorities for 2022 and beyond and those priorities and our key areas of focus are as follows.
First we will deliver new robust spatial biology solutions to the market.
They have the speed and the flexibility on the multiplex and capacity that our customers know demand.
Next with this increased robustness, we will provide ongoing expansion of our ready made content, including multilingual capabilities with a range of solutions for RNA.
And spatial transcript onyx.
Finally, we will continue to partner with leading industry and academic medical centers to expand on our successes in the translational and clinical trial market.
Advancing our goal to establish a <unk> platform has a robust clinical solutions.
Now one brief reminder to better align our product naming conventions with these priorities. We recently completed some product rebranding.
The codex platform has been renamed the Pheno cycle or monopoly. So because the platform platform provides unbiased high parameter capabilities as an in situ region delivery device, it's cycling reagents on and off of the tissue.
And it does so by physically integrating and pairing with our customer's existing microscopes to create one integrated solution.
The Polaris platform.
Has been rebranded as the Pheno imager H T. As it provides.
<unk> robust high throughput imaging with.
With the best optical technology in the market and it was really purpose built to serve the translational clinical markets.
Historically, even though the pheno cycle or formerly the codex.
It is designed to integrate with our customer's existing microscopes the move.
Joining us customers were nonetheless, buying a new third party microscope.
To ensure that they had a dedicated system to run the codex assay.
Now beginning in January with the launch of the fusion system.
Customers will now preferentially choose our fusion.
Over a conventional third party a microscope.
Capturing the microscope revenue with the Athena cycle or is an obvious and core driver for Korea for this year.
The fusion contains the same leading optical capabilities as the Ht, formerly Polaris, but with a smaller footprint and was explicitly design.
To integrate with Athena cyclic.
Because of the powerful optics, a key benefit of the Athena cycle infusion combination.
Is that our customers can now run high Plex codecs experience experiments nearly an order of magnitude faster, enabling larger more meaningful studies and a contracted time to resolve.
This speed improvement accelerates time results drives expanding pull through revenue per instrument.
There isn't equally powerful secondary benefit to coupling the fusion with the <unk>.
Our customers can use the pheno slifer with diffusion.
For high Plex interrogation of tissues, and then use the fusion as a stand alone.
To run high throughput validation studies at lower Plex with a throughput of 100 samples per week.
This modular design and tunable workflow.
Enables the flexibility of our customers to do biomarker discovery.
And biomarker validation on the same platform, it's effectively two solutions in one.
We had limited.
<unk> in Q4, and the full commercial launch of the Pheno cycle. The fusion system commenced on January 14th of this year.
We're encouraged with the initial customer interest in immediate commercial success and look forward to providing updates on our successes throughout the course of the year.
Now with this increase in speed and throughput to the Pheno cycle infusion provides we're also expanding both our content menu.
And our multiplexing scale.
Throughout 2022, and going forward, you will see us launch expanded antibody content for fresh frozen for S. FTE human mouse in areas, such as cancer and inflammatory disease and neurobiology.
Now with faster speed and more content. We're also expanding the multiplexing of the codex assay from 50 markers to over 100 will share more details on this higher multiplexing level at the upcoming ACR conference in April .
Our commitment to speed and throughput capacity improvements is ongoing.
We will release additional workflow and hardware improvements that continue to accelerate our pheno cycle diffusion workflow driving the throughput from 10 samples to 30 samples per week.
We will also be introducing new assay methods to further accelerate biomarker discovery and validation. The centerpiece is the launching of our new Universal chemistry at the end of the year.
This new assay is a best of breed between our current high Plex, Codesa codex assay and our high throughput <unk> assay.
This universal chemistry will.
Well not only simplify the workflow, but will also importantly.
Enable cohesion and consistency of antibodies and assay methodologies.
From high Plex biomarker discovery studies.
To then more focused high throughput translational and clinical research programs.
So biomarkers discovered on.
On the phenotype of the infusion can then be validated on the fusion alone and then advanced clinically to the Ht of Polaris with the benefit of one consistent workflow and solution suite from a coil.
This platform uniform uniformity, enabling both high Plex discovery and high throughput validation on a consistent and cohesive platform from a Korea is an important driver of our commercial success.
It allows us to own the biomarker journey from the discovery to the clinic.
Now one final update on the phenotype of infusion system and the reagents is our commitment to providing a suite of solutions for RNA analysis, and spatial transcriptome ex <unk>.
Recall that the pheno cycle or again, it's an independent in situ reagent delivery system, moving reagents on and off the tissue it physically Paris and integrates with both of our fusion or a third party a microscope.
This modularity provides <unk> with a distinct competitive advantage.
We can develop and launch multiple assays and RNA solutions without requiring a new instrument, our new instrument redesign.
We don't have a monolithic instrument with a hardware and assays are inextricably inextricably tied in fixed.
It allows us to offer a suite.
Our spatial transcriptome solutions to meet a range of customer needs.
Our first product launch for RNA analysis comes out of our recently announced partnership with biotech me.
To automate their RNA scope chemistry on a Phoenix like the fusion system.
RNA scope is the industry's most widely adopted solution for spatial RNA with over 4500 publications and thousands of customers.
We expect to launch this middle of the year RNA scope on our system will be used primarily for targeted applications and validation studies and the lower plex range.
But simultaneously for upstream broad scale RNA discovery applications. We're also working on our own proprietary spatial transcriptome X technologies, which will enable up to 1000 flex Quebec capability.
We expect to launch this proprietary special RNA solution in 2023, and we will provide updates at the now rescheduled <unk> conference in June .
So to summarize our new product initiatives.
We have a powerful new instrument in the fusion.
When paired with Athena cycle or delivers unprecedented speed capacity and application breadth.
We will raise the multiplexing on the protein side to 100 plus.
Well add additional validated content.
And provide workflow cohesion across our portfolio with our universal chemistry.
And also offer a range of RNA solutions.
Further this new instrument solution that pheno cycle, there with diffusion allows our customers to run the fusion as a standalone system.
For high throughput biomarker biomarker validation.
Making the cyclic fusion the industry's fastest most powerful single cell base spatial biology system.
So now as we look downstream to expand our opportunities in revenue and the translational and clinical markets. We have continued to invest.
And the imager Ht platform, formerly the Polaris.
Invested to enable robust clinical grade throughput and to meet the necessary ISO and quality system certification requirements.
In November of last year.
Our advanced Biopharma solutions lab or avs in Marlborough, because where we perform lab services on the HD system became CLIA certified again this was last November .
This certification enables acquire to support clinical trial enrollment studies and will drive the continued acceleration of our clinical trial partnerships with key biopharma.
While we don't get report our Avs revenue separately, we are seeing a real expansion of our pipeline of opportunities and book projects.
And expect ABS to increasingly contribute to our topline growth.
Highlighting the growing adoption of the female imager Ht and clinical trials with both existing and new Biopharma customers.
Our partnerships are central to our success.
And the translational market and in the clinical markets.
We continue to leverage and advanced our partnerships with thought leaders at Johns Hopkins UCSF Astrazeneca and many more.
December we announced a new partnership with path AI.
To combine our advanced Biopharma solutions service offering with their best in class AI powered pathology.
The combination of ABS with path AI capabilities and expertise in digital pathology.
Will help streamline biomarker discovery and validation and identifying patients with a high likelihood of responded immunotherapies.
We expect this partnership to be a further growth driver.
All of our ABS service business.
So to summarize.
<unk> has delivered on our strategic and financial goals for 2021.
Our new <unk> system will be a core platform for our customers, enabling high plex high throughput multi omics spatial analysis across whole tissues at high resolution.
Our growing reagent menu increased throughput and speed and expanding installed base will drive pull through and reason revenue.
With our CLIA certified Avs lab, and our clinical grade Imager H T.
We will continue to accelerate clinical and advancements with partnerships across leading academic centers and biopharmaceutical companies.
We are pleased with our strong financial performance in the fourth quarter and full year 2021, and will continue to expand on our leisure leadership position in the spatial biology market as we move forward through 2022 and beyond.
So with that I'll turn the call over to Joe <unk>.
Discuss our financial results Joe.
Thanks, Brian Hello, everyone.
As Brian highlighted total revenue for the fourth quarter of 2021 was $16 2 million as compared to $12 9 million in the fourth quarter of 2020, which represents 26% growth.
Product revenue, which includes instruments reagents and software was $12 9 million compared to $10 5 million in the prior year period.
Services and other revenue totaled $3 2 million as compared to $2 4 million in the prior year period.
Within product revenue instrument revenue was $8 5 million compared to $7 3 million in the prior year period.
Reagent revenue was $4 million.
Versus $2 8 million in the prior year period, which is a continuation of the growth we've experienced all year in reagents.
We had another strong quarter with 46 total instruments sold.
'twenty, one where pheno sigler and <unk>.
45 were from the image of your portfolio.
We are including the new fusion instrument. In addition to the legacy instruments under the previously labeled Genoptix brand in its Dino immature portfolio category.
The total installed base of instruments is now 697 as of December 31, 2021, which includes 182 cyclists and 515 Fino Imagers.
Fourth quarter reagent revenue was on the higher end of our projected range and the performance gives us confidence in our recurring revenue, becoming a core driver of our topline growth.
Our annualized pull through on a year to date basis exceed $30000 per instrument for both the cyclical and the Pheno imager each tee.
We have a wide range of usage among customers with our highest sigler users achieving annual pull through of $175000, whereas the high volume Fino imager. Each P. Users are consuming 200000 per instrument.
Gross profit was $10 2 million in the fourth quarter compared to seven 9 million in the prior year period.
This resulted in gross profit margin of 63, 3% an increase from the 61, 3% in the prior year period.
Increase in gross margin percentage is a key goal for the company as we continued to drive growth in our reagent business.
Total operating expenses were $27 million as compared to $11 1 million in the prior year period.
Approximately $3 8 million of the Opex was for non cash items, including depreciation and amortization and other noncash expenses.
In line with our strategic plan the increase in Opex was part of our investment in the business. Following our IPO as we hired aggressively in all areas of the business, including our commercial and R&D teams to continue to drive market share growth.
In 2022, we plan on making more targeted investments. So we project that opex will not grow at the same rate it did in 2021.
We ended the year with $113 1 million of cash and cash equivalents as of December 31.
This gives us several years of runway to continue to make key investments in the business.
Common shares outstanding are $37 3 million as of December 31.
Fully diluted shares, including the impact of outstanding options and warrants totals $45 million.
To summarize our full year 2021 revenue was $54 9 million a 30% increase over 2020.
Included in that number is almost 70% growth in reagent revenue, which is a critical metric for our business.
In addition, we sold 147 instruments in 2021 versus 118 in 2020.
We remain confident in our ability to deliver strong growth in 2022 and are providing a full year 2022 preliminary guidance range of $69 million to $71 million.
Our base business has hit a stride of continued growth and Furthermore, we expect contribution from multiple additional new revenue drivers we have highlighted on this call.
Now I'll turn it back over to Brian for closing remarks.
Thank you Joe.
In summary, we are pleased to report a strong fourth quarter and a strong first full fiscal year results as a publicly traded company.
Thankful for the hard work of our fellow dedicated of coins as well as for the support of our customers and shareholders.
Our Korea remains very well positioned for growth and we're excited about the opportunities that lie ahead, as we deliver new spatial solutions from the discovery to the clinical markets.
And at this point, we will open the call up for questions operator.
As a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound key.
Please standby, while we compile the Q&A roster.
Our first question comes from the line of Kyle Mixon of Canaccord Genuity. Your question. Please.
Hey, guys. Thanks for taking my questions congrats on the quarter.
Alright, so I want to start on the fusion platform first dose infusion cycle infusion announced in mid December can you talk about like the excitement or the demand so far from customers and maybe even like new prospects and then given most of your placements probably occur at the end of at the end of the quarter. Historically could you just talk about maybe you think there was like any risk.
Freezing the market there a bit late in 'twenty, one early 'twenty two.
Yes, so to take those maybe in reverse order.
We didn't we didn't do a lot of forward announcements of the fusion M. We were working on it behind the scenes. So there wasn't I don't think there was any real kind of freezing the market. We did reveal some details to selected customers under NDA.
So no I don't think there was any freezing impact now in terms of quality, even if you obviously, we can't speak to the numbers, yet and we will at the end of Q1, the feedback and the demand.
On the fusion with Athena cycle has really been strong extremely strong.
It is it has resulted in new prospects, while there is an opportunity for existing customers to upgrade most of the activity has been really new demand from new customers and I think what we're hearing Kyle is is the rationale behind our investments.
Behind what we're aiming for leveraging the existing whole slide capability in an unbiased manner now with speed.
That's been a real driver and as alluded to during during the call. There is another driver beyond just speed and plex, the modularity and the fact that this is our platform of future investment I think is giving our customers the confidence that the system is future proof. So it's not just the specifications that driving interest out there.
Modularity and the fact that this is our foundation for investment going forward. Those are some of the key drivers. So it really it really has been a strong Q1 in terms of demand creation.
Okay that was great. Thanks, Brian .
Maybe just turning to the financials.
So obviously the readiness revenue was really strong during the quarter and this year obviously.
So pull through was great.
Could you talk about the ASP on the instrument side I mean, it seems like it's kind of declining a bit I mean, how should we think about that.
Going forward in 'twenty, two and so forth and then also what happened in the fourth quarter any kind of bundling things like that just curious.
I'll, let Joe speak to the details on the Asp's I don't think we saw any ASP contraction, but Joe can confirm so Joe.
Yes.
Pes have been consistent all year, it's really just a question of mix of instruments sold. So there was there was a solid quarter of cycling.
<unk> sales and.
That really drives your overall ESP, if you're comparing it to prior quarters. So there's no inherent change in asps in any one of our instrument types.
Okay got it thanks for the clarification and then Joe on Opex obviously.
Pretty pretty high during the quarter.
First out the stock based comp I think almost $4 million or so so that makes sense.
I guess a couple of questions about that first what's a good way to think about Opex going forward and then there was a accounting adjustment during the quarter a change in fair value of contingent consideration could you just talk about what that was related to because there's a little bit higher than previously was like about three.
Three to four times, what it was in the past.
Sure, Yes, so opex in Q1 is going to be lower than it was in Q4 Q4 had sort of these unusual items a lot more noncash expenses going through like stock comp and this contingent consideration item.
So it'll be lower in Q1.
Probably $24 million or so in total opex of which $3 million of that would be non.
Noncash things like depreciation and amortization and stock comp.
So.
Thats, what im projecting for Q1, and then the contingent consideration item is an item that we.
Every year, we have a revaluation Donald Lu.
Long term liability, we have to perkin Elmer so we owe them a royalty over over a 15 year period.
That's a long term liability gets revalued at fair value every year by an outside firm and so it's just a noncash charge you have to you have to.
Welcome to the new fair value at the end of every year. So.
Nothing really to worry about there.
Got it Okay makes sense and then just kind of just add.
Qualitatively and to reiterate what Joe said during his section. So we were we were successful in second half of adding.
A lot of great key talent to R&D and into our commercial organizations, but as Joe noted during his.
His section as we get into 2022, it's going to be a lot more targeted.
In terms of our additional investments in Opex.
Okay got it that sounds appropriate and just a quick one for you Brian .
So the focus on spatial biology informatics among the constituents is obviously steadily increasing can you just take a moment to remind us of the benefits of approximately <unk>.
The ecosystem that can create and the enhancements you aimed to make over time, and then of course as yet that platforms.
Kind of competitive positioning versus other portals out there.
Yes, what we're trying to do is we're trying to make sure that we have a recognition.
Mission that Theres, a lot of great inventions in investments that third parties can and will continue to make an analysis. So as part of our effort to migrate our existing desktop informatic solutions to the cloud and layer it on us as a collaboration system.
Within approximate we're also really actively working with third parties through our API to allow those to plug in so just as we spoke about with path AI not directly in line with your question as a partner to extract meaning we will invest to build out our informatics platform. So that our customers have a go to solution.
But really actively seek out partnerships, where we can have.
Well real powerful third party solutions that can plug in because look our aim is to get them to the answer as quickly as possible. So that as that is how we think about our informatics solutions and proximal more generally.
Alright, Thanks, Brian Thanks for the questions guys. Congrats again, thanks Kyle.
Sure.
Thank you. Our next question comes from <unk> <unk> of Morgan Stanley . Please go ahead.
Hey, guys good evening.
So maybe Brian just to follow up on that earlier question on on the fusion here can you just give.
Give us your latest thoughts on how many of those you expect to sell a standalone versus in conjunction with the codecs and.
Any sort of quantitative color on the order funnel euro and how that split might evolve with time.
So yeah.
We'll.
Refrain from anything quantitative at this point what was the first part of your question Josh.
I was just curious as to how many were sold standalone fusions versus in conjunction with.
But the codex.
Yes, so only only as we noted on our call only a handful were shipped.
In Q4 and kind of what we're modeling.
Going forward as an attachment rate.
Maybe half the time or a little bit more of that is when somebody buys a fine of <unk> then.
Half the time theyre going to buy a fusion in some cases.
<unk> have.
Preferences of their third party microscopes, and they standardized on them and so that that oftentimes.
<unk> makes it easier for us to integrate with third party and we will see how that tracks over time take US you know it.
It could be higher we've decided to come out with a fairly conservative number and as we look back historically as I alluded.
The percentage of time that a customer was buying a third party a microscope anyway prior to the fusion was probably around 60% to 70%. So we're leaving some room there given some potential institutional requirements for certain third party microscope types.
Got it that's helpful and then.
Then.
As you think about sort of.
Bookends for the pull through you are on the fusion, Brian I mean, any any early sort of like signs around how that might be trending here.
And as customers start to ramp here in January and February .
There is no there is no quantitative or a real qualitative data yet we just launched January 13th just starting to ship those get those out get those installed.
So as of right now we will start to see that data as it comes through given the increased speed increased flexing.
Driving more samples per week, but with that increased flexing more dollars per sample. So it's too early to have anything quantitative because we're literally Josh just shipping and installing at this point.
Got it fair enough.
And then Brian as as you.
Progressed into March I was curious in terms of just customer activity levels by type. So you know in the academic customer base did you see any sort of like a slow start to the quarter Thats ramping here in February and March.
And also on the Biopharma side, any kind of like a slower sample intake during the pandemic. That's now sort of essentially back to normal and for Joe on a related note are you with.
<unk>, assuming full normalcy on a go forward basis in your 22 outlook.
Yes, so to take those into reverse order right now, we're seeing sort of business as usual so no real hangover effects.
<unk> here there are some access or maybe an instrument or two but but nothing that's fundamental to our numbers in terms of access to the customer's ability to sell instruments.
And Theres nothing atypical about this Q1 versus other Q1 s, you, usually always have a a bit of a.
A walking start in January regardless of broader.
Hello through vehicle political things, but our quarter is progressing as we had expected, but again to the second part of your question we are not modeling in.
Any impacts of Covid anymore on our business, we have the access.
And we think the customers have the access to our systems.
Got it very helpful. Thank you thanks, Dave just.
Thank you. Our next question come from Julia Qin of J P. Morgan. Please go ahead.
Hi, good afternoon.
In terms of your guidance for the full year shall we assume that you're expecting the same answer to that mix between <unk> and fusion and the rest of the inkjet portfolio as we saw in <unk> and then in terms of fusion.
At a different ASP could you remind us what the price point and how to think about the imager portfolio AFP trends going forward.
Yes, let's take those in reverse order the imaging portfolio going forward.
We are end of life two of those historical instruments within the synoptics portfolio overtime. The mantra in the vector. So the imaging portfolio is going to be the fusion <unk>.
And the H T, formerly the Polaris that as the imaging portfolio with the fusion as noted being able to integrate with Athene recycler excluding the.
The fusion Julia and we can layer that in Portage us his question on attachment.
It's been fairly equivalent maybe one or two more here or there over the prior quarters in terms of the number of HTS and the number of Pheno cycles, we've sold.
That's likely going to continue going forward, there's some ebbs and flows as I noted and then layering in the attachment of the fusion to those fee in a cycle or is really is added revenue on top of us selling for example, morphine a cycle as in the prior year. So those are the dynamics.
Got you very helpful. And then in terms of consumable pull through it sounds like your current guidance does not embed a lot of you know.
Meaningful contribution from the RNA menu expansion and proprietary reagents, yet, but as we think about the long term potential I think you previously set a path towards 50 to 60 K pull through on both platforms over time is that already embed the benefits from that.
Your line R&D menu and proprietary reagents or Dallas represent incremental upside.
So those the projections of the growing pull through do include RNA, New reagents increased speed increased flexing $1 per sample so our projections for driving pull through on a per instrument basis do include those assumptions.
Got you great. Thank you.
Thank you.
Thank you again to ask a question. Please press star one and you touched on telephone again Thats star one on your Touchtone telephone to ask a question.
Our next question comes from the line of David Westenburg Piper Sandler Your question. Please.
Hi, Thanks for taking my question and congrats on the good numbers here.
So a.
Great color on the upper limit customers of 200000 in annual pull through are you willing to give us a flavor of the customer types in terms of what.
What they might look like pharma biotech research and in terms of where they are at and maybe the clinical research or any kind of.
Any kind of profile that allows us to kind of think about how is this possible with the rest of your customer base.
Yes, so the upper limit customers on the HTS side.
Includes crows.
And leading academic medical centers that have established ongoing programs that's not surprising so in the case of CRO like we have through advanced borrow Biopharma solutions group a number of established big pharma that are.
That are leveraging our platform in the case of the Ht Your Polaris and leading academic medical center. These are groups that have established scale translational program with routine sample flow.
So those sorts of dynamics are the dynamics that I think are growing and our ABS growth as an indication of the formula.
On the on the the higher numbers for the.
Kodak's not a fan of cycling theres, a number of different types of groups.
There is groups that are building Atlas type programs, where they're building out large reference datasets.
Those groups that are servicing multiple other.
As a core of multiple other groups internally and as an aside.
Leveraging speed going forward is certainly going to help our ability.
To place our instruments in these core labs, because more samples per unit time aside how they run their business.
And there's other groups that are really digging deep and leveraging our platform to understand the basis of the disease for example, Bob Schreiber.
It's one of those groups that you're using out of wash, you're using our platform in mouse models to better understand.
Our response to immuno therapies. So its the kinds of things David I think that you would expect but hopefully that gives you a little bit more color.
No. It was very helpful, particularly on the codec side so.
It's going to take me a little while to learn the rebranding, but I get it.
Alright, So I wanted to continue with one of our Julians question about the pull through and then kind of long term assumption because you are launching a pretty good amount of content. This year end.
Between the Universal chemistry, the RNA stopped so I mean like I intuitively think about that but I think youre also.
Adding on the microscope should also add to what the customer can do so can you talk about the pushes and pulls in and then in the two year three year trends in consumable pull through that maybe make us think that maybe it's not that I mean, maybe there is a maturity or there is a youre good.
More placements and there's a maturity cycle involved in it and when those additional placements I mean any color.
Color can help us out here. Thank you.
Yes, so I think when we talk about.
Forthcoming RNA speed improvements increase in flexing additional content, that's sort of flywheel of more samples at a time and more dollars per sample. These are as you've noted. These are solutions that are just getting into the market.
So those capabilities are not currently embedded maybe speaking first on the discovery side and the existing pheno cycle. Their installs. So they will rollout over time and so we have we have a maturation of the current.
Customer base in the field to leverage these but also.
Incrementally as we add new feed of cycles with fusion over time that will become a higher percentage of our installed base.
So you might have and this may be an oversimplification of a bit of a bimodal user base between those who are on the stand alone fee in a cyclic versus those new customers that habit with infusion and so you might have we might anticipate a higher pull through with those early and first pheno cycle, the fusion customers as compared to a standard fee in a cycle of a customer.
So those those are some of the key drivers on a pull through per unit basis, but still in aggregate by the growing installed base of those those new customers are going to contribute more and more over time in terms of growing our total reagent revenue.
I appreciate it that's great color and then just a quick one it's kind of an extension or the opposite of what he just asked and that is is there any standalone opportunity for the fusion microscope and I'm just talking about maybe some of those previous.
Placements that didn't have a microscope that they acquired a third party and then they say you know what this functionality is a lot better with that.
The fusion microscope so.
Any any thoughts on standalone in that case.
That wraps it up that's a great question and you're calling out something that we probably could spend more time on the diffusion really is an incredibly powerful microscope. As we noted it's got the same underlying image acquisition speed.
And capabilities as the Polaris now the H T system, but it's just on a smaller more affordable footprint. So a fusion standalone is really attractive to a segment of the translational and clinical research market segment that does that don't think they need that kind of scale and throughput at the H T system. The former polos provides.
So it has all of the same capabilities as the Ht is the plus but again in a smaller footprint that's more affordable so that isn't obvious customer for the fusion stand alone.
I appreciate it good job on the quarter.
Thanks, David Thanks.
Thank you and ladies and gentlemen that does conclude today's conference call. Thank you. So much for participating you may now disconnect.
Okay.
Okay.
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