Q4 2022 Akoya Biosciences Inc Earnings Call

March 6, 2023

Yeah.

Thank you for standing by and welcome to the acquire Biosciences fourth quarter 2022 earnings Conference call. At this time, all participants are in a listen only mode.

After the Speakers' presentation there'll be a question and answer session to ask a question at that time. Please press star one on your phone.

As a reminder, today's conference call is being recorded.

I'll now turn the conference host Mr Premium Shah head of Investor Relations. Please go ahead Sir.

Thank you operator, and thank you to everyone who is joining us today on this call I'm <unk> Shah head of Investor Relations and acquired by Us guidance.

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 2022.

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 laws.

Made pursuant to the Safe Harbor provisions of the private Securities Litigation Reform Act of 995.

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 coils business. Please refer to the risk factors section of our Form 10-K filed with the Securities and Exchange Commission today March six 2023.

We urge you to consider these factors and you should be aware that these statements are 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 six 2023.

<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.

The audio portion of this call will be archived on the investors section of our website later today under the heading events.

Yes.

We would also like to inform listeners that acquire will be participating in the Cowen Health Care Conference Tomorrow March seven.

If youre not planning attend in person. Please see our Investor Relations page for webcast information for this and other recent our upcoming investor events.

And with that I will now turn the call over to Brian .

Thank you, Brian and good afternoon, and evening to everyone. We appreciate you joining us on the call today.

2022 was an excellent year for our core year capped off by a strong finish with yet another record breaking quarter.

As an organization, we delivered solid commercial execution and consistently strong revenue growth installed base growth and publication growth within the spatial biology market.

We reported record revenue of $21 $2 million in the fourth quarter and $74 9 million for the full year of 2022.

The 36% growth over the prior year.

We sold a total of 71 instruments in the fourth quarter and 237 instruments.

For the full year 2022, a 61% growth in placements from the prior year and we ended the year with an installed base of 934 instruments.

<unk> has the largest installed base of spatial instruments in the industry and we are on track to reach 1000 instruments by early this year a major milestone for the company.

Additionally, the rapidly accelerating publications volume featuring a cordless platforms now at 772 publications to date is the largest amongst spatial biology providers.

Our consistent execution large and growing installed base.

And publication growth gives us increasing confidence in the momentum of our business and the spatial biology market in 2023 and beyond.

Our <unk> product portfolio is setting the industry standard for next generation tissue analysis the.

The company was founded on the vision and fundamental assumption.

If the market requires a rapid imaging based in situ technology.

Our comprehensive tissue analysis.

Enabling the understanding of the molecular and cellular interactions at a single cell level across whole tissue samples.

In 2022, we solidified our instrument portfolio with the launch of the fusion, we expanded our footprint across all market segments and made significant progress on our long term clinical goal of impacting patient care.

<unk> brings to the spatial biology market a full suite of <unk>.

End to end and purpose built platforms across the discovery translational and clinical market segments.

Our continuity of technology reagents and methods across our entire portfolio allows us to own the biomarker journey from discovery to the clinic.

At our recent special day event in December we previewed our 2023 priorities and product roadmap and the summary is as follows.

First we are introducing platform and workflow improvements across our entire instrument line that will further advance our leadership position in spatial imaging and drive additional reason pull through across our nearly 1000 instruments in the market.

Second we will build on our commercial and partnership success and the translational and clinical markets.

Further advance our goal of improving patient care.

Third we will focus on driving operational efficiencies, including more targeted investments in 2023.

Now, let me address each one of these in more detail.

Our platform improvements include further simplification and acceleration of our workflows on both the phenotype of infusion and the piano Imager Ht.

To take full advantage of these improvements we are introducing expanded recent menus of ready made panels for both the <unk> refusing for high Plex discovery.

<unk> imager Ht for high throughput translational studies.

These new biomarker panels will be marketed under the brand name co.

Discovery panels for the phenotype of fusion and <unk> signature panels for the HTS.

Our projected reagent pull through increases will be driven by improved system capacity and throughput.

Readymade panels to increase plex and application breadth.

And an ecosystem of software partners.

To reduce the time from data to answer.

Beginning next quarter the fusion two point over lease will be rolled out it.

It is the primary system improvement on Athena psych refuse it for 2023 and results in a significant increase in throughput and workflow simplification.

This two point or release includes a multi slide carrier for parallel processing of tissue samples and effectively doubles the system throughput up to 20% to 30 samples per week.

This upgrade also supports the rollout while biotech knees RNA scope.

On the Pheno cycle refuse I'll remind you RNA scope is the industry's gold standard RNA in situ assay with.

With over 6000 publications to date and broad adoption across the life Sciences market.

RNA scope is an ideal solution to complement protein based special phenotyping targeted manner and.

To validate discoveries made with higher plex spatial transcript ohmic approaches.

And in parallel in the second half of 2023.

Introduced <unk> proprietary high Plex spatial transcript <unk> solution to support RNA and ultimately multi omics patient studies.

On the piano Imager H T. We are continuing our efforts to simplify and streamline our informatic workflow and post processing to a true clinical standard.

In mid 2023, we will introduce further improvements to the AC that moves the post processing tissue analysis steps directly onto the Ht for on instrument compute.

The result will be a reduction in data post processing from hours to minutes.

And an automated workflow for tissue and cellular annotation.

This upgrade supports our translational and clinical customer demands for rapid and standardized analysis to drive throughput consistency and ultimately adoption.

Now to enable our customers to take full advantage of these system improvements on a phenotype with fusion and the piano Imager Ht.

We are introducing our new Pheno code reagent offerings.

These panels will deliver a suite of ready to use biomarker panels.

<unk> on answering key biological questions with greater efficiency speed and comprehensiveness.

Our pheno coat discovery panels are designed to run on the phenotype of refusing or discovery based applications.

The first product launch will be protein based with RNA solutions coming later in the year.

These panels will be these panels will introduced will be introduced throughout the year on a quarterly cadence.

We will share more of the more details at this year's ACR meeting in early April but at a high level.

<unk> discovery panels will be launched as modules of 10 to 20, biomarkers, enabling our customers to mix and match modules to quickly build a comprehensive high plex panel.

Their focus on core Biomarkers and are designed to address key biological questions in oncology inflammatory disease and neurobiology.

At the <unk> Conference last month, our Korea, and our partners at Stanford each presented <unk> discovery panels with simultaneous detection of protein and RNA across large sample cohorts demonstrating great science at speed and scale.

Throughout this year and next we will continue to build out these molecules for protein RNA and multi omics applications.

Enabling high Plex and high throughput discovery.

Across a broad range of applications and customers.

For the translational and clinical markets, our Phoenix signature panels are designed to run on the piano Imager Ht.

The initial five panels were created for the rapidly advancing immuno oncology therapy landscape.

That includes nearly 6000 ongoing clinical trials, which demand pre design validated antibody panels with.

With detection reagents, and a ready to use format.

The pheno coat signature panels enable fast and scalable spatial signature development and deployment and.

And we will deliver higher revenue per sample accelerated and increased system utilization.

Reduced assay optimization time.

And will result in a higher pull through on the HG.

And now to pivot to software and data analysis.

Remind you acquire <unk> platforms already leveraged on instrument image processing and file compression.

That reduced file sizes by 34 terabytes to gigabyte.

This novel and proprietary technology enables ease of data transfer and analysis, we are standardized file format called <unk>.

This standardized format also simplifies and accelerates the development of third party software solutions.

Rather than develop and deploy a singular monolithic solution acquired.

<unk> is to partner with a rapidly growing ecosystem of spatial biology software providers.

Similar to the NIM dynamics seen in other markets like micro arrays flow cytometry and NCS.

Rapidly adopted new technologies spur parallel develop parallel development of supportive solutions.

This is especially true of software and is certainly happening now in the spatial biology market.

We already have a full range of software partners to support the unique customer needs across all of our platforms and market segments.

Both commercial and free open source partners, we are cloud based solutions and others that rely on local compute.

The growing list of partners include established industry leaders like busier farm into Collabs path AI.

The new and rapidly emerging providers like Oracle bio and enable Madison and open source software and the open source software coupons.

In addition to this rich product road map, we are progressing several initiatives in the downstream the translational and clinical markets leveraging the imager Ht and our advanced Biopharma solutions CLIA lab or ABS.

Laura.

We recently announced a partnership with adjuvant to make possible a seamless end to end clinical workflow.

Multiplex assay use in clinical trials.

<unk> will leverage agile his expertise.

And our clinical grade omnis honesty.

To support a full spectrum of multiplex assays for Biopharma.

With agile, it's ominous clinical antibodies and.

In CTX expertise.

And of course, HD platform, CLIA lab, and technical leadership and clinical grade multiplexing.

We get together support clinical assay development validation and use in clinical trials.

Getting a one stop shop for our shared Biopharma partners.

The combined strengths of Agila and acquire.

Two leaders in our respective fields.

Accelerates multiplex companion diagnostic development programs and provides a global channel for subsequent commercialization.

Our agreement with <unk> therapeutics to exclusively co develop and commercialize a first of its kind spatial signature companion diagnostic for their targeted oncology continues to advance with a clinical trial ongoing and is yet another important milestone.

And furthering our clinical menu offering.

In parallel.

<unk> continues to see robust growth and expansion of existing and new pharma partners.

We made significant progress in 2020 to pursuing the large spatial biology clinical Tam with key partnerships and developments that will continue to gain traction.

In 2023.

To summarize our fourth quarter and full year 2022, we are very pleased with our strong financial and commercial performance this year.

As we continue to expand our leadership position in the spatial biology market.

As we outlined we will focus on the following initiatives in 2023.

First.

Drive the continued adoption and improvements.

The <unk> fusion is a best in class in situ imaging platform for discovery spatial biology.

Second.

Continued to deliver new applications and.

<unk> further workflow and speed improvements.

Across the full instrument portfolio to drive an increase in poultry.

And third we will continue to partner with leading Biopharma medical centers Crows in diagnostic leaders.

To drive the adoption of the <unk> Imager, Ht translational research and clinical diagnostics and.

And lastly.

Will drive operational efficiencies and more targeted personnel investments on a path to achieve profitability.

And with that I will now turn the call over to Joe to discuss our financial results Joe.

Thanks, Brian and Hello, everyone.

As Brian highlighted the total revenue for the fourth quarter of 2022 was a record $21 2 million, 31% growth over Q4, 2021, and full year revenue was $74 9 million, 36% growth over full year 2021.

Our extremely strong performance in 2022, despite a challenging macro environment gives us increasing confidence that we are in a high growth market with a strong portfolio that meets the needs of a broad customer base across multiple verticals and revenue categories.

Product revenue, which includes instruments reagents and software.

With $15 7 million for the fourth quarter and $57 7 million for the full year, representing 30% growth over full year 2021.

Instrument revenue was $11 1 million for the fourth quarter and $38 6 million for the full year, representing 35% growth over full year 2021.

We had another strong quarter with 71 total instruments sold of which 25 were <unk> and.

46 or from the image of our portfolio.

We sold 237 instruments for the full year and ended 2022 with a total installed base of 934 instruments, which includes 254, <unk> and 680 Imagers.

As of year end 2022.

Total of 120 fusion instruments have been shipped since the full commercial launch at the start of the year and we now have a total installed base of 105 for the combined cycle or fusion system sold either directly as a combined system or upgraded from a previous standalone phenotype.

<unk> instrument.

The number of combined unit is an important metric because this combination is projected to drive significant increase in reagent pull through over the next few years.

Reagent revenue was $4 5 million for the fourth quarter and $18 4 million for the full year, representing 29% growth over full year 2021.

In 2022, we experienced some FX headwinds in Europe , and Covid Lockdowns in China, which impacted our reagent revenue.

With an annualized pull through in the mid $30 range per instrument for the Pheno cycle and the image or HP, we project the pull through to increased significantly by as much as two to three times over the next several years as more cyclical fusions that are up and running along with <unk>.

Our rollout of new consumable offerings and instrument field upgrades.

With the Pinot cycling fusions shipped during the early phase of the launch for which researchers have been trained and are now actively using for projects. We are already noticing significant increases in pull through compared to <unk> with third party microscopes.

As researchers continue to become fully trained and the installed base of Pinot cycling fusion continues to expand we expect the further acceleration in throughput and application expansion to impact reagent pull through even more.

The new highly optimized fino code signature panels, and higher Plex Penal code discovery panels, which will be rolled out throughout 2023 will not only contribute meaningfully to pull through and accelerate time to answer but will also increase our share of reagent revenue as the panel.

Our wholly offered through acquire is ready to use.

We continue to target annual reagent revenue growth of approximately 40% per year for the next several years.

As the new innovations hit a commercial stride in our installed base continues to rapidly expand.

Services and other revenue totaled $5 5 million for the quarter and $17 2 million for the full year, representing an increase of 65% over full year 2021.

Our advanced Biopharma solutions CLIA lab continues to gain significant traction with large pharma and we also signed at other meaningful clinical partnerships throughout 2022, such as <unk> therapeutics and agile.

Gross profit was $12 million in the fourth quarter and $43 4 million for the full year, representing full year gross margin of 58%.

We continue to make investments in the CLIA service lab to support clinical trial enrollment, which has a near term impact on margins as we build out these clinical grade capabilities.

We have also experienced some impact on margin from inflationary cost pressures consistent with what most other companies are experiencing.

Operating expenses for the quarter totaled $29 6 million and $109 5 million for the full year.

With significant investments on business expansion efforts throughout 2022, we have laid the groundwork for the commercial rollout of the penal code panels throughout the year field.

Field upgrades for the Pheno cycle infusion partnered software expansion and a full end to end discovery to clinical workflow.

Our plan for 2023 includes making more targeted investments in areas that will generate the highest returns as we create a path to profitability over the next several years.

We ended the quarter with approximately $81 million of cash and marketable securities and $11 million and additional debt capacity.

We continue to take a balanced approach to accessing capital as needed to ensure we maintain our exceptional growth throughout 2023.

Common shares outstanding are $38 3 million as of December 31, and fully diluted shares, including the impact of outstanding options and Unvested restricted stock awards totaled $38 9 million.

To summarize we had another record breaking quarter with $21 2 million in revenue and $74 9 million for full year, 2020% to 36% growth over the prior year we.

We sold 71 instruments across the product portfolio this quarter.

237 instrument throughout 2022, and now have a total installed base of 934 instruments the largest in the industry.

The shipment of 120 fusions in the first year since the launch demonstrates the robust demand for our new instrument offering.

Now with 772 publications, featuring our coins platform as of year end 2022, we remain very confident in our ability to deliver continued growth in 2023 with the adoption of our current platform and new commercial product Rollouts.

At this time, we are providing a preliminary revenue guidance range of 95 million to $98 million for 2023, as we continue to see tailwind for our business and the spatial biology market.

We project that seasonality will be consistent with prior years with Q1, having the lowest quarterly revenue in Q4, having the highest.

Now I'll turn it back over to Brian for closing remarks.

Thank you Joe we're pleased to report a strong quarter.

Full year performance, we announced multiple exciting new partnerships and developments across the portfolio and we'll look forward to executing them throughout the year.

We're thankful for the hard work of our fellow dedicated clients as well as for the support of our customers and shareholders.

Korea remains very well positioned for growth and we're excited about the opportunities that lie ahead, as we deliver new space solutions from the discovery to the clinical markets and at this point, we will open up the call for questions operator.

Thank you.

Ladies and gentlemen, if you'd like to ask a question. Please press star one on your Touchtone telephone again to ask a question. Please press star one one.

One moment please.

Our first question comes from the line of John <unk>.

UBS Your line is open.

Hi, Congrats on the finished for the year and thanks for taking the question. Thanks, John just on the on.

The 2023 guidance.

Any color just on how to think about instrument pull through and consumable mix through the year and what's really embedded in guidance. There and then if you look back at the customers that adopted the fusion and the first half of 2020 'twenty two.

Do you think that both of these customers have now started to hit that full utilization or just how do we think about those dynamics and what's embedded just to clarify the second part of your question that youre referencing those customers that have the new.

<unk> fusion.

Yes, that's good.

Correct, Yeah, Let me, let me take that second part and Joe can give.

Qualitatively on the 2023 with the caveat that to date, we've only.

Really guided on the number I guess, what I would say in terms of the aggregate <unk> user base recognizing that we launched in March we really started shipping in bulk a year ago.

<unk>.

With really strong performance throughout the year. So if you sort of average and assume it takes a quarter, sometimes too for people to get up and running I would say, we probably don't have the majority.

Of those fiennes eichler fusion user customers at full stride, just yet given how long it takes and given that if you sort of average in that total number that we've sold.

We're probably less.

Less than halfway there in terms of full system utilization and then the aggregate impact.

Those higher throughput users have on the total region number but also on the average pull through that makes sense.

That makes sense, yes, Ed.

I guess just a follow up you ended the year with $81 million cash on hand.

Any color around the cash burn and Danielle any potential financing plans.

Yes, let me talk on that and then Joe I didn't give Joe a chance to talk a little bit about the first part of your question on 2023 $81 million cash on hand.

With $11 million additional debt capacity and again as Joe noted a more targeted investments this year.

With higher revenue so less burn so we're in a really solid cash position right now, but Joe you can add a little bit more color there if you'd like but also addressed John's question around 2023 and any additional color.

Yes, I think your answer on on cash is spot on in terms of the guidance for next year.

The $95 million to $98 million, we don't break down the guidance by individual categories, but the way we think about reagents. For example is that there will be a build throughout the year as we as.

As we rollout new new products as more and more customers get up and running on the pheno cycle of fusion.

I think you could think about pull through as being a gradual increase quarter after quarter.

That combined with the increase in the number of instruments that we sell.

What hopefully will get us to that 40% growth number for reagents, that's our internal target anyways.

Got it thanks for taking the questions.

Thanks, John .

Thank you.

One moment please.

Our next question comes from the line of Kyle Mixon of Canaccord. Your line is open.

Hey, Thanks, guys for the questions and congrats on the great great outlook as well.

Maybe like a multipart financial question to start then a follow up question.

On pull through or actually just on your last point Joe.

It sounds like it's going to continue to increase I mean, you said 30, K, though still I mean, I've heard that for a few years I feel like I mean, what's hoffman customers from really using the box is more I think that would've increased our elite accelerated kind of recently and then and you just mentioned Joe this 40% growth rate going forward.

I think like over 50, 50 mix with consumables and instruments would be good as well I mean can you kind of do that.

<unk> remains in this $30 40 kind of range. Thanks.

So the in terms of the pull through I think are you, saying, how do we get to 40% reagent growth.

Yes is that predicated based on yes, it's predicated based on the 30 K or does it have to expand to some other higher level.

It would have to expand but not a tremendous amount. So instead of the sort of the mid 30 range mid $30 range per instrument youre talking about kind of low 40.

<unk> range per instrument that combined with the increase in the number of instruments out there that that will get you that will get you. The reagent numbers that we're talking about so it's not like it has to go from mid <unk> to 50 in 2023 to generate that kind of number as long as the instrument number hangs in there.

Okay, and then Brian just on my first part of the question, but that was about kind of like what's prevented customers from Italy.

Cranking up their usage of.

The boxes I know you have these new products coming out that should increase poker going forward, but I mean to date, though like what's been some of the.

And if you look back historically.

On a sort of an annual basis Kyle.

As you all can keep me honest on the numbers here and granted these are somewhat contaminated by Covid I think if you go back.

Around 2019 2020, the pull through for the Athena cycle or on third party scopes went from like 20, or so up to 30 and now we're starting to see that amongst the pheno cycle users customers go beyond 30%.

So we already we're already seeing that trend. It's just a matter of Kyle as you look across the 250 <unk> that are out there.

A minority have the fusion attached to it so that's already starting to impact the overall pull through number into the mid <unk> for the <unk>. So we're starting to see that impact begin to happen already for the fusion coupled to what we've seen historically that pull through climb on a more gradual manner up to the 30 or so where it was that.

We articulated on our last few calls.

And just one other thing.

One other quick point.

The Covid Lockdowns in China did hit our reagent revenue in 2022.

That and that's part of the pull through calculation as total reagent revenue so.

If that didn't happen a reagent revenue would have would have obviously been $1 billion plus higher in 2022.

Okay. Thanks, guys I'll ask just one follow up here.

Sure very kind of thoughtful question obviously.

You did a great you had a great quarter with placements I think at least.

Seven years, or so and I think nothing it doesn't look like anything you want to slow down in terms of customer is getting kind of distracted by the.

The imager.

Kind of a launch at the end of the fourth quarter.

But what are you seeing kind of recently I guess.

The product refresh on the market I am aware of a few folks there obviously behind these these imagers is that impacting your ability to kind of get in front of customers and potentially closely off yes. It's a good question.

So with the launch of the competing imager products the cosmic.

The.

The <unk> it really hasnt impacted.

Our pipeline and our instrument performance at all the cosmic is not a new event.

Because they have been selling that throughout the year and <unk> fairly new I still think Kyle that's largely within the genomics discovery segment.

And given where we compete and discovery, but all the way through.

The translational and clinical side.

We're still really not feeling any competitive impact from them now as we launch our RNA and we start participating more and more on that genomics segment. I think we might have more color on that because I think it will be more directly competing.

Right, Yeah that last part is important Brian Thanks, a lot for that I'm going to I'll hop off thanks, guys I appreciate it thanks Carl.

Thank you.

One moment please.

Our next question comes from a lot of Mason character of Stephens. Your line is open.

Okay.

Hey, guys. Thanks for the question Congrats on a strong 2022.

Maybe just starting with reagent revenue during the quarter I think it came in slightly lighter than than we were modeling could.

Could you expand on some of the dynamics that played out specifically in the fourth quarter I know you called out some factors that weighed on this revenue in 2022, but I guess just any incremental color on on what played out during Q4 and if any of those dynamics have continued in 2023.

Yes, Joe can address that.

Theres a lot of contributing factors, maybe Joe you could talk to you a little bit of those.

Yes, I think it's pretty much what we've talked about already.

The Covid Lockdowns in China that was that was a problem from Q2 through Q4.

Some some softness in Europe with currency issues kind of held back some spending so I don't think there was any any one thing, but as we as we've rolled into Q1, we've definitely seen order volumes pick up so versus Q4 so.

So I think we're going to be we're going to be fine in 2023 in terms of reagent performance and <unk> got it.

Still a little bit of Lumpiness.

In.

And the revenue realization within each quarter, but almost certainly also on the comps from the prior year.

Got it okay perfect. Thanks, then.

On the macro environment are you still seeing an elongation in capital purchase timelines and as we kind of think about the 2023 guide has any conservatism.

Baked in around that dynamic this year, how are you thinking about it.

So I'll make a comment and then Joe can add on where we saw some expansion of.

Capital purchase.

Timelines and approval strengths was in EMEA, but it didn't have a material impact on the quarter or even looking forward. It's just really a dynamic that we have to be cognizant to manage.

And as we're including that in 2023, we did not.

But the other concept.

Concept that we did talk about was.

Still fairly anemic reagent revenue, albeit coming back slowly in China, I think we still are contemplating some of that Joe you want to add any more color.

Yes, just overall, we're not anticipating a massive economic turnaround in our in our 2023 guide I guess the guide that we've given presumes that things are kind of going to be what they are right now in terms of overall macro environment. So.

We'll obviously keep a close eye on that but.

That's kind of our basic assumption.

Got it that's helpful. Thanks, guys. Thanks.

Thanks, Mike.

Thank you one moment please.

Our next question comes from the line of Chaos Savant of Morgan Stanley . Your line is open.

Hey, guys. Good evening, thanks for the time here.

Brian maybe.

To kick things off one for you so other than scheduling where do things stand on what remains to be done for the fusion two point a rollout I think you mentioned you expect that to start into Q.

And when do you expect to be done with those field upgrades.

And then Joe as a follow up to that.

Throughput.

A fusion to portal enables I think it said from 10% to 20% to 30 samples to what extent does that sort of baked into your guide at the midpoint.

So I'll take that first part and then.

And then Joe can talk about how that impacts the guide so the two point, though is that field upgrade that will begin next quarter and there is just some final I would call it validation and verification work.

Final stages of DM development, there is not any sort of technical risk associated with that so again really standard product development methodologies and just reminding you that that's using too.

<unk>.

Is.

I'm going to meet the requirements for the multi side carrier some some improvements to the operating software and the reagents, but also as noted in the commentary the RNA scope and for and also for our future RNA. So that will all happen in Q2 in terms of for the exists.

Customers, how long will it will it take.

That's a really good question and obviously, we want to do it as fast as we can I would say the shortest would be <unk>.

Six to nine months.

Take a little bit longer than that depending upon customer preparedness, and whether or not it would interrupt existing studies.

And on your question about what is baked into the guide. So we're really looking at going from the mid $30000 per instrument on average to the low $40 on average and really there is a wide array of customers in that in that mix.

Some some do very little some are doing $200 per instrument per year. So that's really what's baked into the guide right now and it it seems very achievable from where we sit right now.

Got it okay.

And then on the on the Pheno Goa panels, similar sort of question really.

You've talked about really strong traction in <unk> as well as the upcoming launches over the course of the year on the discovery side.

How much of that is sort of like factored into the guide here.

Not a not a tremendous amount it certainly.

Part of the guide, but youre talking about.

$1 million or $2 million for the whole year.

Got it Okay. That's helpful and then.

On the multi will make Brian .

This is early access.

And in terms of that 100 Plex panel rollout can.

Can you just remind us again, how high could protein <unk> go on that panel and then by when do you expect to get.

Core detection and early access I believe this was the.

The first version is going to be sequential sections of the data is that right.

Yeah, So we'll start with sequential.

Whether or not we do early access.

Like via services.

We're still sort of debating whether or not we have to do that because again as we've talked about you will have probably by the time. It comes out 300 boxes in the market.

We just want to make sure that we're we're sort of commercially ready.

For the high Flex RNA and high Plex protein on these serial sections, but again as you noted the multi omics will come earlier in terms of how high can we go on the protein.

We sort of think there is no upper limit.

But there is a.

There is a scientifically reasonable limit and also a cost limit. So I think 100 plex is about as much as I think we think people need right now and just by comparison there has been discussions out amongst the scientific community and others as you think about comparative plex between <unk>.

And protein and Theres commentary that in terms of scientific value a protein can be say five last 10 equivalents of RNA given that sort of a direct measurement of the activity. So we added 100 plex protein is probably where we're going to stay for a while and then the RNA will be kind of somewhere similar end of that range.

First cereal and then multi omics.

Got it that's helpful and then Joe back to you for your comments around just taking a more targeted approach to investments.

Are there any guardrails that you can put around sort of opex.

Last year, I mean, I think your non <unk> opex was a little bit higher than where we were about two or $3 million is that sort of $30 million run rate.

Good benchmark to use when you think about 2023.

Yes so.

I would say.

We're going to hire people in 2023, but sort of spread throughout the year, it's not going to be a massive number of people. So I think you could look at something like $30 million in Q1, and then maybe it goes up half a million dollars each quarter throughout the year something like that.

Perfect very helpful. Thanks, guys I appreciate it.

Thanks, Dave.

Thank you one moment please.

Our next question comes from the line of Mark Massaro of <unk>. Your line is open.

Hey, guys. Thank you for the questions Congrats on a strong year.

A lot has been asked but.

I am curious if you could comment.

Some of the economics with respect to the Athena cycle, our fusion 2.0 I do.

Don't believe Youre looking to drive.

Incremental economics on that instrument relative to the one point, though.

Can you just clarify that and then.

<unk>.

I guess, what I'm really trying to determine is.

The guide does not look like there is a significant step up.

As a result of new products and so.

Joe I appreciate your commentary about $1 million to $2 million on the Pheno code panels, but.

Other than perhaps negligible.

Revenue contribution for the Pheno cycle, refusing to Plano upgrade is it fair to say that you are baking in very modest contribution all in from new products in 2023.

I think somewhat a lot of it is thanks for the questions Mark maybe your first part so the 2.0 the asp's are the same.

Of the.

Versions built and shipped.

With and then the future without in the future versus with Dupont out. So we're not there's not a price increase because of the two point or if that was your question on the instrument.

And then yes, yes, okay and then in terms of the NPI.

You can see that these are beginning this quarter and throughout the year.

These are continuous rollouts of additional panels.

<unk> systems software partnerships and its all really centered around.

Accelerating realization of these overtime. So I think you have to maybe pull the aperture back outside of a single quarter.

And the thesis here is all of these improvements that we've outlined.

Really the drivers.

Getting that pull through.

From its current level to the low 40 to the low fifty's et cetera. So this is sort of the internal framework or OS within acquire to drive these continuous improvements from workflow to content. The software partnerships. So you can do more samples per unit time faster time to answer so the realization is not a single binary event.

But rather an aggregate overtime.

Okay that makes sense.

Yes, sorry go ahead, Jonathan to add onto that basically, saying, what Brian just said, but the $2 upgrade in and of itself doesn't generate.

Dollars, but it helps that reagent pull through.

Really where the where the dollars are going to come so it's not necessarily.

New products that are that are delivering that that revenue, but it's it's the two point no upgrade is helping us drive that reagent revenue two to a much higher level.

Right and just to clarify that reagent revenue growth target is approximately 40% this year correct.

Correct, yes, okay.

We've seen some other tools companies, sometimes have pushed pause between.

The razor razorblade contribution in the services contribution but in your case, we're really not seeing that so.

Drove a strong 65% growth year over year in services last year, I think historically you've talked about a.

<unk> surfaces target of in the 30% to 40% range.

Recognizing that you just did 65.

Are there any qualitative factors, perhaps that would suggest.

Any reasons why that growth rate is likely to moderate other than just challenging comps.

And maybe Joe you could describe kind of what's in that.

And then <unk>.

Specific commentary around the lab services specifically.

Right. So our services are going to have another good year in 2023.

What we have in that bucket right now it really the CLIA lab, which is doing projects for large pharma.

I'll, let Brian comment some more on that that's been that's been going very well, we've got a second services lab that focuses on.

No cycle or projects. So early stage discovery projects and now we also in that bucket. We also have <unk> revenue. So this is.

The <unk> deal that we signed in 2022, you've got a piece of that is in our 2022 revenue, but more will be in 2023.

The milestones and things like that that we get for doing the <unk> deal. So those three pieces are really the bulk of that services revenue. So.

2023 should be another good growth year for services and then again just to go back to.

As promised Mark So lab services includes working with the Biopharma groups.

Really to drive adoption and early translational all the way through clinical trial studies.

Those are the services that Joe just alluded to but also includes.

The revenue that's realized in doing our partnership as also as a lab serviced through <unk>, where we have these milestone based.

Milestone driven.

These revenue milestones that we achieved throughout last year and this year. That's also included within that and that helps explain mark why that number.

Has grown so much because of the success of both of those efforts.

Okay excellent and then last one for me.

Joe I think I heard you say that you are seeing volumes pick up nicely here in Q1, so reagents are off to a good start.

It doesn't seem like there is a huge.

Necessarily.

The challenge with respect to funding or budgets at the customer level, but.

Maybe can you just speak to any conversations youre, having about <unk>.

Forecasting.

Orders throughout the course of the year, and whether or not youre seeing issues with budget.

We have not seen any issues with budgets.

The only the only hiccup we had in 2022 is really things like Covid, Lockdowns, which we really can't control, but other than that other than unusual things like that.

Budgets seem to be fine and.

Yeah.

Back to normal.

And Mark a lot of what.

A lot of them the macro commentary around <unk>.

Biopharma funding.

Is really what the discussions have been around the smaller emerging biopharma.

This this year or the latter part of last year relative to 2020 in 2021.

Two comments on that that's really not.

A meaningful percentage of our customer base, we're mostly dealing with the multinational biopharma, who have seen kind of a tremendous surge in R&D spend particularly as their COVID-19 spend is muted.

So I don't really think that the Biopharma com.

Commentary is not restricted small pharma has not really impacted us and again large pharma funding in terms of the R&D has been pretty darn strong, particularly in oncology, we got clinical trials up something like.

It's like 38% of all clinical trials at 10% CAGR, which is really where we play with our HD system.

Excellent that all makes sense. Thanks for the color. Thanks Mark.

Thank you.

Ladies and gentlemen, if you'd like to ask a question. Please press star one on your telephone again to ask a question. Please press star 111 moment. Please.

Our next question comes from David Westenburg of Piper Sandler Your line is open.

Hey, guys.

Congrats on another solid print and a great guide.

I would ask Joe that commentary about the 30000 to two X three acts that can you just give us more color on what you are.

Are you talking about the entire cleanup.

It's been a cycle of fusion base or is that the one when they are alright fino cyclic.

Or is that just with the fusion and how should we think about the total base.

In that ramp.

Just to clarify on your commentary there, yes, our commentary and Thats really a multiyear a commentary that we're talking about two to three times over a.

A several year period.

Whole process is a building process quarter by quarter year by year.

Really the key to get the overall pheno cycle infusion number up is to continue to transition as many customers as possible from just <unk> to a pinot cycle infusion that's really.

We're partway through that whole process of converting those customers to encourage them to buy a fusion. So thats really a piece of the equation. If we get the majority of cycle or customers to shift to Athena cycle infusion, that's how you'll get those those kinds of numbers of.

On average 60000 70000 per year, but it'll it'll take multiple years to get there just to make sure that.

That that growth that is that is the total average amongst our FEMA cycle or user base.

Right.

Got it yes that last part thank you. Thank you.

Very much because that last part is actually going to ask about how you came up with exactly that number.

I appreciate the color now can you just one more one more part to this little part.

Are you seeing more adoption or can you talk about the percentage of adoption.

From casino cycle, or who get the microscope as this.

Almost all of them and then in terms of career retroactive placements I mean, how far do we do we had to go what's the kind of.

The goal penetration rate of that I'm, assuming it would be 100%, but could be close to 100%.

And where we are that in terms of the penetration rate, yes, I'll take that last part and then Joe can give you a little bit more color.

Youre right it probably won't go all the way to a 100% because there are some there are some labs that are.

That preferentially use some third party microscopes.

That's a really.

That's going to be a very overtime.

Decreasing a pretty small percentage of the total.

But Joe can speak to kind of where we are in in terms of the penetration.

Amongst our existing user base and kind of the attach would we see going forward for new customers.

Yes, the <unk>.

Tax rate and when we say attach rate, we mean every time somebody buys.

<unk>, how often are they buying a fusion at the same time, it's really good.

We initially modeled it at 55% or 60% attach rate, it's coming in 80% plus right now I think customers really see the value of <unk>.

Buying the two instruments together.

And so we from what we can tell.

There will be some people, who still only by a fino cycle or without the fusion, but that's going to be the minority of people. So I think 80% is a good number to go with for now.

And then for the existing installed base David were.

We're less than halfway there.

Sure.

I'd say directionally call, it 40% or so maybe 30% 40%.

As a total.

Customer base that had the Athena cycle or.

Before the fusion came out.

Now have the fusion.

So we still have a lot of headroom to upgrade existing customers.

I'm pretty sure I'll ask the rest offline. Thank you. Thank you.

Thank you one moment please.

Our next.

Question comes from the line of Tim Chiang.

Capital One your line is open.

Hey, thanks.

Brian Jo I think theres been a lot of questions just about pull through the impact of the new fusion two point on launch and also.

How that will benefit your agent business has this kind of a lag effect.

In terms of when you expect.

Ramp with the reagent side of the business as more of the.

Fusion's convert over to the two point out.

Well, yes, I mean, theres always a lag effect with any NPI new product introduction.

So the standard.

The standard kind of instrument utilization lag and I say standard because doing this for 30 years, it's pretty much formulaic where.

Customer buys an instrument initial pilot run in Q2, and the first quarter Theyre.

There are assessments happened in the second quarter, and then coming out of that into the third quarter, they start to get real productive use.

Right because thats a typical cycle for an instrument. So that's that is the that is the lag we're now starting to see realized.

On the fusion as it impacts our total pull through given the <unk> of our customers have higher pull through and then the peanut cycle as well.

So that lag is most certainly real.

And then you have you have an adoption cycle with any new application or assay on that very system itself.

So that is probably generally shorter.

Because youre dealing with an instrument that's ready to grab those new panels right away or that new applications. If it was RNA.

Sure.

So yes, there is a lag effects amongst all of these.

That's why we've talked about this.

This build over time of pull through.

Alright so.

Maybe just wanted to follow up Bryan.

You signed this partnership with Agila at the beginning of the year.

How meaningful do you think this partnership for.

What sort of impact do you think it will have on your field imager Ht instrument, yes, the impact is going to be.

An expansion of projects.

That our pharma partners implement on the HD.

That's going to be the first impact and thats not something that.

We will.

Necessarily quantify externally.

Because we're already seeing that happen and that's because.

The clinical workflow that they support and the expertise that they bring to the table and leverage that that workflow along with our expertise on the HTS that is the impact now that May result in it should result in a much more robust pipeline.

For the HD system itself.

The new panels that we're launching but also for our lab services business.

Because it is going to galvanize these additional projects.

In the service CLIA lab as well.

Got it.

Joe just one last question gross profit margins around 57% I mean is that a pretty good.

Starting number.

For 2023, and just sort of wondering how that sort of progresses is bigger.

Rolls out.

Yes, we would project that that number is going to go up in 2023.

One of the keys for gross margin is getting more reagent business. So we've talked a lot about reagents here today, that's really the key to driving that gross margin percentage higher but we are projecting that.

We're going to do better than what we did in 2022.

Alright, and your gross margins on the reagent business are around 80% that's right.

Mid seventy's yet.

Okay, Great Super.

Thanks, so much.

Thank you I'm showing no further questions at this time I'll turn the call back over to Brian Mcelligott for any closing remarks, well, yes, just we're at the top of the hour. So I just wanted to thank everybody for their time their attention their support and we look forward to following up with each of you. So thank everyone.

Thank you ladies and gentlemen, this does conclude today's conference. Thank you all for participating you may now disconnect have a great day.

Yes.

The conference will begin shortly to raise and lower Johan during Q&A, you can dial star one one.

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Thanks.

Thank you for standing by and welcome to the acquire Biosciences fourth quarter 2022 earnings Conference call. At this time, all participants are in a listen only mode.

After the Speakers' presentation there'll be a question and answer session to ask a question at that time. Please press star one on your phone.

As a reminder, today's conference call is being recorded.

I will now turn the conference host Mr. <unk> Shah head of Investor Relations. Please go ahead Sir.

Thank you operator, and thank you to everyone who is joining us today on this call I'm <unk> Shah head of Investor Relations and acquire 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 2022.

A copy of the press release is available on the company's website.

Before we begin I would like to remind you that management will make statements. During this call that include forward looking statements within the meaning of federal Securities laws.

Made pursuant to the Safe Harbor provisions of the private Securities Litigation Reform Act of 995.

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.

For a list and description of the risks and uncertainties associated with the Cortez business. Please refer to the risk factors section of our Form 10-K filed with the Securities and Exchange Commission March six 2023.

We urge you to consider these factors and you should be aware that these statements are 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 six 2023.

A quiet disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward looking statements whether because.

As of new information future events or otherwise.

Audio portion of this call will be archived on the investors section of our website later today under the heading events.

We would also like to inform listeners that acquire will be participating in the Cowen Healthcare Conference Tomorrow March seven.

Youre not planning attend in person. Please see our Investor Relations page for webcast information for this and other risks rethink our upcoming investor events.

And with that I'll now turn the call over to Brian .

Thank you <unk> and good afternoon and evening to everyone. We appreciate you joining us on the call today.

2022 was an excellent year for our core year capped off by a strong finish with yet another record breaking quarter.

As an organization, we delivered solid commercial execution and consistently strong revenue growth installed base growth and publication growth within the spatial biology market.

We reported record revenue of $21 $2 million in the fourth quarter and $74 9 million for the full year 2020 to.

36% growth over the prior year.

We sold a total of 71 instruments in the fourth quarter and 237 instruments for the full year 2022, a 61% growth in placements from the prior year and we ended the year with an installed base of 934 instruments.

Korea has the largest installed base of spatial instruments in the industry and we are on track to reach 1000 instruments by early this year a major milestone for the company.

Additionally, the rapidly accelerating publications volume featuring our <unk> platforms now at 772 publications to date is the largest amongst spatial biology providers.

Our consistent execution large and growing installed base and publication growth gives us increasing confidence in the momentum of our business and the spatial biology market in 2023 and beyond.

<unk> product portfolio is setting the industry standard for next generation tissue analysis.

The company was founded on the vision and fundamental assumption.

That the market requires a rapid imaging based in situ technology, a comprehensive tissue analysis.

Enabling the understanding of the molecular and cellular interactions at a single cell level across whole tissue samples.

<unk> brings to the spatial biology market a full suite of end to end and purpose built platforms across the discovery translational and clinical market segments.

Our continuity of technology reagents and methods across our entire portfolio allows us to own the biomarker journey from discovery to the clinic.

At a recent special day event in December we previewed our 2023 priorities and product roadmap and the summary is as follows.

Second we will build on our commercial and partnership success and the translational and clinical markets.

Further advance our goal of improving patient care.

Third we will focus on driving operational efficiencies, including more targeted investments in 2023.

Now, let me address each one of these in more detail.

Our platform improvements include further simplification and acceleration of our workflows on both Athena cycle diffusion and the piano Imager Ht.

To take full advantage of these improvements we are introducing expanded recent menus of ready made panels for both the phenotype refusing for high Plex discovery.

<unk> imager Ht for high throughput translational studies.

These new biomarker panels will be marketed under the brand name co.

Discovery panels for the phenotype of fusion and if unit signature panels for the HD.

Our projected reagent pull through increases will be driven by improved system capacity and throughput.

Readymade panels to increased plex and application breadth.

And an ecosystem of software partners.

To reduce the time from data to answer.

Beginning next quarter the fusion two point over lease will be rolled out it.

It is the primary system improvement on Athena side, refusing for 2023 and results in a significant increase in throughput and workflow simplification.

This two point or release includes a multi slide carrier for parallel processing of tissue samples and effectively doubles the system throughput up to 20% to 30 samples per week.

This upgrade also supports the rollout while biotech knees RNA scope.

On the <unk> I'll remind you RNA scope is the industry's gold standard RNA in situ assay with.

With over 6000 publications to date and broad adoption across the life Sciences market.

RNA scope is an ideal solution to complement protein based spatial phenotyping in a targeted manner and.

To validate discoveries made with higher plex spatial transcript filmic approaches.

And in parallel in the second half of 2023.

We'll introduce <unk> proprietary high Plex spatial transcript <unk> solution to support RNA and ultimately multi omics based on studies.

On the Athena Imager H T. We are continuing our efforts to simplify and streamline our informatic workflow and post processing to a true clinical standard.

In mid 2023, we will introduce further improvements to the AC that moves the post processing tissue analysis steps directly onto the Ht for on instrument compute.

The result will be a reduction in data post processing from hours to minutes.

And an automated workflow for tissue and cellular annotation.

This upgrade supports our translational and clinical customer demands for rapid and standardized analysis to drive throughput consistency and ultimately adoption.

Now to enable our customers to take full advantage of these system improvements on the phenotype, refusing and the piano imager Ht.

We are introducing our new Pheno code reagent offerings.

These <unk> panels.

Panels will deliver a suite of ready to use biomarker panels.

Focus on answering key biological questions with greater efficiency.

Fee and comprehensiveness.

Our pheno coat discovery panels are designed to run on the phenotype of a fusion for discovery based applications.

The first product launch will be protein based with RNA solutions coming later in the year.

These panels will be in these panels will introduce who will be introduced throughout the year on a quarterly cadence.

We will share more deep more details at this year's ACR meeting in early April but at a high level.

<unk> discovery panels will be launched as modules of 10% to 20, biomarkers, enabling our customers to mix and match modules to quickly build a comprehensive high plex panel.

Their focus on core Biomarkers and are designed to address key biological questions in oncology inflammatory disease and neurobiology.

Throughout this year and next we will continue to build out these molecules for protein RNA and multi omics applications.

Enabling high Plex and high throughput discovery across a broad range of applications and customers.

For the translational and clinical markets. Our Pheno signature panels are designed to run on the piano Imager Ht.

The initial five panels were created for the rapidly advancing immuno oncology therapy landscape.

That includes nearly 6000 ongoing clinical trials, which demand pre designed validated antibody panels with.

With detection reagents, and a ready to use format.

The pheno coat signature panels enable fast and scalable spatial signature development and deployment and.

And we will deliver higher revenue per sample accelerated and increased system utilization.

Reduced assay optimization time.

And will result in a higher pull through on the agency.

And now to pivot to software and data analysis.

To remind you acquire acquired platforms already leveraged on instrument image processing and compression.

That reduced file sizes by 34 terabytes to gigabytes.

This novel and proprietary technology enables ease of data transfer and analysis via our standardized file format called <unk>.

This standardized format also simplifies and accelerates the development of third party software solutions.

Rather than develop and deploy a singular monolithic solution acquired strategy is to partner with a rapidly growing ecosystem of spatial biology software providers.

Similar to the NIM dynamics seen in other markets like micro arrays flow cytometry and NCS.

Rapidly adopted new technologies spur parallel develop parallel development of supportive solutions.

This is especially true of software and is certainly happening now in the spatial biology market.

We already have a full range of software partners to support the unique customer needs across all of our platforms and market segments.

We have both commercial and free open source partners cloud based solutions and others that rely on local compute.

The growing list of partners include established industry leaders like Vizio farm into Collabs path AI.

New and rapidly emerging providers like Oracle bio and enable Madison and open source software and the open source software coupons.

Out of more.

We recently announced a partnership with adjuvant to make possible a seamless end to end clinical workflow.

For multiplex assay use in clinical trials.

<unk> will leverage <unk> expertise and.

And our clinical grade omnibus Augustine.

To support a full spectrum of multiplex assays for Biopharma.

With agile, it's ominous clinical antibodies and.

<unk> expertise.

And of course, HD platform, CLIA lab, and technical leadership and clinical grade multiplexing.

We get together support clinical assay development validation and use in clinical trials, creating a one stop shop for our shared Biopharma partners.

The combined strengths of Agila and acquire.

Two leaders in our respective fields.

Accelerates multiplex companion diagnostic development programs and provides a global channel for subsequent commercialization.

Our agreement with <unk> therapeutics to exclusively co develop and commercialize <unk>.

The first of its kind spatial signature companion diagnostics for their targeted oncology continues to advance.

With a clinical trial ongoing and is yet another important milestone.

And furthering our clinical menu offering.

<unk>.

<unk> continues to see robust growth and expansion of existing and new pharma partners.

We made significant progress in 2020 to pursuing the large spatial biology clinical Tam with key partnerships and developments that will continue to gain traction in.

In 2023.

To summarize our fourth quarter and full year 2022, we are very pleased with our strong financial and commercial performance this year.

As we continue to expand our leadership position in the spatial biology market.

As we outlined we're focused on the following initiatives in 2023.

First.

Drive the continued adoption and improvements.

The <unk> fusion is a best in class in situ imaging platform for discovery spatial biology.

Second.

Continued to deliver new applications.

<unk> further workflow and speed improvements.

Across the full instrument portfolio to drive an increase in poultry.

And third we will continue to partner with leading Biopharma medical centers Crows in diagnostic leaders.

To drive the adoption of the <unk> Imager Ht translational research and clinical diagnostics and lastly, we will drive operational efficiencies and more targeted personnel investments on a path to achieve profitability.

That I will now turn the call over to Joe to discuss our financial results Joe.

Thanks, Brian and Hello, everyone.

As Brian highlighted the total revenue for the fourth quarter of 2022 was a record $21 2 million, 31% growth over Q4, 2021, and full year revenue was $74 9 million, 36% growth over full year 2021.

Product revenue, which includes instruments reagents and software.

With $15 7 million for the fourth quarter and $57 7 million for the full year, representing 30% growth over full year 2021.

Instrument revenue was $11 1 million for the fourth quarter and $38 6 million for the full year, representing 35% growth over full year 2021, we.

We had another strong quarter with 71 total instruments sold of which 25 were <unk> 46 or from the piano imager portfolio.

We sold 237 instruments for the full year and ended 2022 with a total installed base of 934 instruments, which includes 254, <unk> and 680 <unk> Imagers.

As of year end 2020 to a total of 120 fusion instruments have been shipped since the full commercial launch at the start of the year and we now have a total installed base of 105 for the combined cycle or fusion system sold either directly as a combined sit.

Or upgraded from a previous Standalone fino cycle instrument.

The number of combined units is an important metric because this combination is projected to drive significant increase in reagent pull through over the next few years.

Reagent revenue was $4 5 million for the fourth quarter and $18 4 million for the full year, representing 29% growth over full year 2021.

In 2022, we experienced some FX headwinds in Europe , and Covid Lockdowns in China, which impacted our reagent revenue.

With an annualized pull through in the mid $30 range per instrument for the Pheno cycle and the imager Ht, we project the pull through to increased significantly by as much as two to three times over the next several years as more <unk> fusions are up and running along with our.

Our rollout of new consumable offerings and instrument field upgrades.

With the Pheno cycling fusions shipped during the early phase of the launch for which researchers have been trained and are now actively using for projects. We are already noticing significant increases in pull through compared to <unk> with third party microscopes.

As researchers continue to become fully trained and the installed base of Pinot cycling fusions continues to expand we expect the further acceleration in throughput and application expansion to impact reagent pull through even more.

The new highly optimized phenyl code signature panels, and higher Plex Penal code discovery panels, which will be rolled out throughout 2023 will not only contribute meaningfully to pull through and accelerate time to answer but will also increase our share of reagent revenue as the panel.

Our wholly offered through a coy is ready to use.

We continue to target annual reagent revenue growth of approximately 40% per year for the next several years.

As the new innovations hit a commercial stride in our installed base continues to rapidly expand.

Services and other revenue totaled $5 5 million for the quarter and $17 2 million for the full year, representing an increase of 65% over full year 2021.

Our advanced Biopharma solutions CLIA lab continues to gain significant traction with large pharma and we also signed other meaningful clinical partnerships throughout 2022, such as <unk> therapeutics and agile.

Gross profit was $12 million in the fourth quarter and $43 4 million for the full year, representing full year gross margin of 58%.

We continue to make investments in the CLIA service lab to support clinical trial enrollment, which has a near term impact on margins as we build out these clinical grade capabilities.

We have also experienced some impact on margin from inflationary cost pressures consistent with what most other companies are experiencing.

Operating expenses for the quarter totaled $29 6 million and $109 5 million for the full year.

With significant investments on business expansion efforts throughout 2022, we have laid the groundwork for the commercial rollout of the penal code panels throughout the year field.

Field upgrades for the Pheno cycle infusion partnered software expansion and a full end to end discovery to clinical workflow.

Our plan for 2023 includes making more targeted investments in areas that will generate the highest returns as we create a path to profitability over the next several years.

We ended the quarter with approximately $81 million of cash and marketable securities and $11 million in additional debt capacity.

We continue to take a balanced approach to accessing capital as needed to ensure we maintain our exceptional growth throughout 2023.

Common shares outstanding are $38 3 million as of December 31, and fully diluted shares, including the impact of outstanding options and Unvested restricted stock awards totaled $38 9 million.

To summarize we had another record breaking quarter with $21 2 million in revenue and $74 9 million for full year, 2020% to 36% growth over the prior year.

We sold 71 instruments across the product portfolio this quarter.

237 instruments throughout 2022, and now have a total installed base of 934 instruments the largest in the industry.

The shipment of 120 fusions in the first year since the launch demonstrates the robust demand for our new instrument offering.

Now with 772 publications featuring a coin as platform as of year end 2022, we remain very confident in our ability to deliver continued growth in 2023 with the adoption of our current platform and new commercial product Rollouts.

At this time, we are providing a preliminary revenue guidance range of 95 million to $98 million for 2023, as we continue to see tailwind for our business and the spatial biology market.

We project that seasonality will be consistent with prior years with Q1, having the lowest quarterly revenue and Q4, having the highest.

Now I'll turn it back over to Brian for closing remarks.

Thank you Joe we're pleased to report a strong quarter.

Full year performance, we announced multiple exciting new partnerships and developments across the portfolio and we will look forward to executing them throughout the year.

We are thankful for the hard work of our fellow dedicated the clients as well as for the support of our customers and shareholders.

Thank you again, ladies and gentlemen, if you'd like to ask a question. Please press star one on your Touchstone telephone again to ask a question. Please press star 111 moment. Please.

Our first question comes from the line of John <unk>.

UBS Your line is open.

Hi, Congrats on the finished for the year and thanks for taking the questions. Thanks John .

On the on the 2023 guidance.

Do you think that both of these customers have now started to hit that full utilization or just how do we think about those dynamics and what's embedded just to clarify the second part of your question Youre referencing those customers that have the new.

<unk> fusion.

Yes, that's correct, yes, let me let me take that second part and Joe can give you.

Qualitatively on the 2023 with the caveat that to date, we've only.

Really guided on the number I guess, what I would say in terms of the aggregate <unk> user base recognizing that we launched in March we really started shipping in bulk a year ago.

<unk>.

With really strong performance throughout the year. So if you sort of average in the assume it takes a quarter, sometimes too for people to get up and running I would say, we probably don't have the majority.

Of those peanuts eichler fusion user customers at full stride, just yet given how long. It takes you given that if you sort of average in that total number that we've sold.

We're probably less.

Less than halfway there in terms of full system utilization and then the aggregate impact.

Those higher throughput users have on the total region number but also on the average pull through that makes sense.

That makes sense.

Ed.

I guess just a follow up you ended the year with $81 million cash on hand.

Any of those color around the cash burn and Daniel any potential financing plans.

Yes, let me talk on that and then Joe I didn't give Joe a chance to talk a little bit about the first part of your question on 2023 $81 million cash on hand.

With $11 million additional debt capacity and again as Joe noted a more targeted investments this year.

With higher revenue so less burn so we're in a really solid cash position right now, but Joe you can add a little bit more color. There if you'd like but also address jon's question around 2023 and any additional color.

Yes, I think your answer on on cash is spot on in terms of the guidance for next year.

The $95 million to $98 million, we don't break down the guidance by individual categories, but the way we think about reagents. For example is that there will be a build throughout the year as we as.

As we rollout new new products as more and more customers get up and running on the Pinot cycle of fusion.

I think if you think about pull through as being a gradual increase quarter after quarter.

That combined with the increase in the number of instruments that we sell that's what hopefully will get us to that 40% growth number for for reagents Thats, our internal target anyways.

Got it thanks for taking the questions.

Thanks, John .

Thank you.

One moment please.

Our next question comes from the line of Kyle Mixon of Canaccord. Your line is open.

Hey, Thanks, guys for the questions Yeah, Congrats on the great great outlook as well.

Maybe like a multipart financial question to start then the follow up question.

On pull through actually just on your last point Joe.

It sounds like it's going to continue to increase that I mean, you said 30, K, though still I've heard that for a few years I feel like I mean, what's hoffman customers from really using the box is more I think that would have increased at least accelerated kind of recently and then and you just mentioned Joe this 40% growth rate going forward.

I think I'll go over a 50 50 mix with consumables and instruments would be good as well I mean can you kind of do that.

<unk> remains in this $30 40 kind of range. Thanks.

So the in terms of the pull through I think are you, saying, how do we get to 40% reagent growth.

Yes is that predicated based on yes, so predicated based on the 30 K or does it have to expand to some other higher level.

It would have to expand but not a tremendous amount. So instead of the sort of the mid 30 range mid $30 range per instrument youre talking about kind of low $40 range per instrument that combined with the increase in the number of instruments out there that that will get you that will get you the reagent numbers that were.

Talking about so it's not like it has to go from mid <unk> to 50 in 2023 to generate that kind of number as long as the instrument number hangs in there.

Okay, and then Brian just on my first part of the question, but that was about kind of like what's prevented customers from Italy.

Cranking up their usage of.

The boxes I know you have these new products coming out that should increase both of us going forward, but I mean to date, though like what's been some of the.

And if you look back historically.

On a sort of an annual basis Kyle.

As you can keep me honest on the numbers here and granted these are somewhat contaminated by Covid I think if you go back.

Around 2019 2020, the pull through for the Pheno cycle or on third party scopes went from like 20, or so up to 30 and now we're starting to see that amongst subpoenas cycle users customers go beyond 30%.

So we already we're already seeing that trend. It's just a matter of Kyle as you look across the 250 <unk> that are out there.

A minority have the fusion attached to it so that's already starting to impact the overall pull through number into the mid thirty's for Athena cyclic. So we're starting to see that impact begin to happen already for the fusion coupled to what we've seen historically that pull through climb on a more gradual manner up to the 30 or so where it was that.

We articulated on our last few calls.

And just add one other thing.

One other quick point.

The Covid Lockdowns in China did hit our reagent revenue in 2022.

That and that's part of the the pull through calculation as total reagent revenue so.

If that didn't happen a reagent revenue would have would have obviously been a $1 billion plus higher in 2022.

Okay. Thanks, guys I'll ask one follow up here.

Sure very helpful question, obviously.

You did a great had a great quarter with placements I think at least.

Seven years, or so and I think nothing it doesn't look like anything when we slowed down in terms of customers getting kind of distracted by the.

The imager and I'm, just kind of like launch at the end of the fourth quarter.

But what are you seeing kind of recently I guess these product refresh on the market I am aware of a few folks are obviously behind these to these imagers is that impacting your ability to kind of getting in front of customers and potentially close deals yes. It's a good question.

So with the launch of the competing imager products the cosmic.

Yes.

The <unk> it really hasnt impacted our pipeline and our instrument performance at all the cosmic is not a new event.

Because they have been recently on that throughout the year and <unk> fairly new I still think Kyle that's largely within the genomics discovery segment.

And given where we compete and discovery, but all the way through to.

The translational and clinical side.

Alright, yes that last part is important Brian Thanks, a lot for that I'm going to I'll hop off thanks, guys I appreciate it thanks Kara.

Thank you.

One moment please.

Our next question comes from a lot of Mason character with Stephens. Your line is open.

Okay.

Hey, guys. Thanks for the question Congrats on a strong 2022.

Maybe just starting with reagent revenue during the quarter I think it came in slightly lighter than than we were modeling could.

Yes, Joe can address that.

Theres a lot of contributing factors, maybe Joe you can talk to you a little bit of those.

Yes, I think it's pretty much what we've talked about already.

The Covid Lockdowns in China that was that was a problem from Q2 through Q4.

Some some softness in Europe with currency issues kind of held back some spending so I don't think there was any any one thing but.

As we've rolled into Q1, we've definitely seen order volumes pick up so versus Q4 so.

So I think we're going to be we're going to be fine in 2023 in terms of reagent performance and <unk> got it.

Still a little bit of Lumpiness.

In.

In the revenue realization within each quarter, but almost certainly also on the comps from the prior year.

Got it okay perfect. Thanks, then.

On the macro environment are you still seeing an elongation in capital purchase timelines and as we kind of think about the 2023 guide has any conservatism.

Baked in around that dynamic this year, how are you thinking about it.

So I'll make a comment and then Joe can add on where we saw some expansion of.

Capital purchase.

Timelines and approval strengths within EMEA.

It didn't have a material impact on the quarter or even looking forward. It's just really a dynamic that we have to be cognizant to manage.

And as we're including that in 2023, we did not.

But the other concept.

Concept that we did talk about was.

Phil fairly anemic reagent revenue, albeit coming back slowly in China, I think we still are contemplating some of that Joe you want to add any more color.

We'll obviously keep a close eye on that but.

That's kind of our basic assumption.

Got it that's helpful. Thanks, guys.

Thanks, Mike.

Thank you one moment please.

Our next question comes from the line of Chaos.

<unk> of Morgan Stanley Your line is open.

Hey, guys. Good evening, thanks for the time here.

Brian maybe.

To kick things off one for you so other than scheduling where things stand on what remains to be done for the fusion two point or rollout I think you mentioned you expect that to start into Q and then by when do you expect to be done with those field upgrades and then Joe as a follow up to that is the increase in throughput.

Two final enables I think it said from 10 to 20 to 30 samples to what extent does that sort of baked into your guide at the midpoint.

So I'll take that first part and then.

And then Joe can talk about how that impacts the guide so the two point, though is the field upgrades that will begin next quarter and there is just some final I would call it validation and verification work sort of the final stages of the development of Theres, not any sort of technical risk.

Associated with that so again really standard product development methodologies and just reminding you that that's used to know.

As.

Going to meet the requirements for the multi side carrier some some improvements to the operating software and the reagents, but also as noted in the commentary the RNA scope and for and also for our future RNA. So that will all happen in Q2 in terms of for the exists.

Customers, how long will it will it take.

That's a really good question, obviously, we want to do it as fast as we can I would say the shortest would be six to nine months it could maybe take a little bit longer than that depending upon customer preparedness, and whether or not it would interrupt existing studies.

Some some do very little some are doing $200000 per instrument per year. So that's really what's baked into the guide right now and it it seems very achievable from where we sit right now.

Got it okay.

And then on the on the final chord panels similar sort of question really.

You've talked about really strong traction with <unk> as well as the upcoming launches over the course of the year on the discovery side.

How much of that is sort of like factored into the guide here.

Not a not a tremendous amount it certainly.

Part of the guide, but youre talking about.

$1 million or $2 million for the whole year.

Got it okay. That's helpful.

On the multi domain front Brian .

This is early access.

In terms of that 100 Plex panel rollout can.

Can you just remind us again, how high could protein <unk> go on that panel and then by when do you expect to get.

Co detection and early access I believe this was the.

The first version is going to be sequential sections of the data is that right yes.

Yes, so we'll start with sequential.

Whether or not we do early access.

Like via services.

We're still sort of debating whether or not we have to do that because again as we've talked about you will have probably by the time. It comes out 300 boxes in the market.

We just want to make sure that we're we're sort of commercially ready.

For the high Flex RNA and high flex protein on these serial sections, but again as you noted the multi omics will come earlier in terms of how high can we go on the protein.

We sort of think there is no upper limit.

But there is a.

There is a scientifically reasonable limit and also a cost limit. So I think 100 plex is about as much as I think we think people need right now and just by comparison there has been discussion amongst the scientific community and others as you think about comparative plex between R&R.

Hey.

And protein and Theres commentary that in terms of scientific value a protein can be say five last 10 equivalents of RNA given that sort of a direct measurement of the activity. So we had 100 plex protein is probably where we're going to stay for a while and then the RNA will be kind of somewhere similar end of that range versus <unk>.

Real and then multi omics.

Got it that's helpful and then Joe back to you for your comments around just taking a more targeted approach to investments.

Are there any godrej else you can put around sort of opex.

Last year, I mean, I think your <unk> opex was a little bit higher than where we were about two or $3 million is that sort of $30 million run rate.

Good benchmark to use when you think about 2023.

Yes, so I would say.

We're going to hire people in 2023, but sort of spread throughout the year, it's not going to be a massive number of people. So I think you you could look at something like $30 million in Q1, and then maybe it goes up half a million dollars each quarter throughout the year something like that.

Perfect very helpful. Thanks, guys I appreciate it thanks.

Thanks, Jeff.

Thank you one moment please.

Our next question comes from the line of Mark Massaro of <unk>. Your line is open.

Hey, guys. Thank you for the questions Congrats on a strong year.

A lot has been asked but I.

I am curious if you could comment.

About some of the economics with respect to the Pheno cycle or fusion 2.0, I don't believe youre looking to drive.

Incremental economics on that instrument relative to the one point, though can you just clarify that and then.

I guess, what I'm really trying to determine is.

The guide does not look like there is a significant step up as a result of new products and so.

Joe I appreciate your commentary about $1 million to $2 million on the Pheno code panels, but.

Other than perhaps negligible revenue contribution for the cycle are refusing to Plano upgrade is it fair to say that you're baking in a very modest contribution all in from new products in 2023.

I think somewhat a lot of it is thanks for the questions Mark maybe our first part so the two point, although the Asp's are the same.

Of the.

The versions built and shipped.

With and then the future without in the future versus with Dupont out. So we're not there's not a price increase because of the two point or if that was your question on the instrument.

And then yes, yes, okay and then in terms of the NPI as you can see that these are beginning this quarter and throughout the year and as these are continuous rollout of additional panels.

Upgrades to systems and software partnerships and its all really centered around.

A accelerating realization.

These over time, so I think you have to maybe pull the aperture back outside of a single quarter.

The thesis here is all of these improvements that we've outlined.

Really the drivers.

Getting that pull through.

From its current level to the low 40 to the low 50, <unk> et cetera. So this is sort of the internal framework or OS within acquire to drive these continuous improvements from workflow to content to software partnerships. So you can do more samples per unit time faster time to answer so the realization is not a single binary event, but rather.

In aggregate over time.

Okay.

Yes.

Yes, sorry go ahead, Jonathan to add on to that basically, saying, what Brian just said, but the two upgrade in and of itself doesn't generate dollars, but it helps that reagent pull through.

Really where the where the dollars are going to come so it's not necessarily.

New products that are that are delivering that that revenue, but it's it's.

The 2.0 upgrade is helping us drive that reagent revenue of two two a much higher level.

Right and just to clarify that reagent revenue growth target is approximately 40%. This year correct correct, yes, okay.

We've seen some other tools companies, sometimes have pushed pause between.

The razor razorblade contribution in the services contribution but in your case, we're really not seeing that so you drove a strong 65% growth year over year in services last year.

Historically, you've talked about.

Surface surface is target of in the 30% to 40% range.

Recognizing that you just did 65 are there any qualitative factors, perhaps that would suggest.

Any reasons why that growth rate is likely to moderate other than just challenging comps.

And maybe Joe you could describe kind of what's in that.

And then.

Pacific commentary around the lab services specifically.

Right. So our services are going to have another good year in 2023.

What we have in that bucket right now it really the CLIA lab, which is doing projects for large pharma.

And I'll, let Brian comment some more on that that's been that's been going very well. We've got a second services lab that focuses on pheno cycle or projects. So early stage discovery projects and now we also in that bucket. We also have CTX revenue. So this is.

The Acura bond deal that we signed in 2022, you've got a piece of that is in our 2022 revenue, but more will be in 2023.

Milestones and things like that that we get for doing the <unk> deal. So those three pieces are really the bulk of that services revenue. So.

23 should be another good growth year for services and then again just to go back to as promised Mark. So lab services includes working with the Biopharma groups.

Really to drive adoption in early translational all the way through clinical trial studies and those are the services that Joe just alluded to but also includes.

The revenue that's realized in doing our partnership.

<unk> also has a lab service through <unk>, where we have these milestone base.

Milestone driven.

These revenue milestones that we achieved throughout last year and this year. That's also included within that and that helps explain mark why that number.

<unk> has grown so much because of the successes of both of those efforts.

Okay excellent and then last one for me.

Joe I think I heard you say that you are seeing volumes pick up nicely here in Q1, so reagents are off to a good start.

It doesn't seem like there is a huge.

Necessarily.

Challenge with respect to funding or budgets at the customer level, but.

Maybe can you just speak to any conversations youre, having about forecasting.

Orders throughout the course of the year, and whether or not youre seeing issues with budgets.

We have not seen any issues with budgets.

Really the only the only hiccup we had in 2022 is really things like Covid, Lockdowns, which we really can't control, but other than that other than unusual things like that.

Budgets seem to be fine and.

No.

To quote normal.

And Mark a lot of what.

A lot of them the macro commentary around <unk>.

<unk> pharma funding.

Is really what the discussions have been around the smaller emerging biopharma.

This this year or the latter part of last year relative to 2020 in 2021.

Two comments on that that's really not.

A meaningful percentage of our customer base, we're mostly dealing with a multinational biopharma who have seen kind of a tremendous surge in R&D spend particularly as their COVID-19 spend.

Is muted.

So I don't really think that the biopharma.

Commentary is not respected small pharma has not really impacted us and again large pharma funding in terms of the R&D has been pretty darn strong, particularly in oncology, where you've got clinical trials up something like.

It's like 38% of all clinical trials at 10% CAGR, which is really where we play with our <unk> HD system.

Excellent that all makes sense. Thanks for the color. Thanks Mark.

Thank you.

Ladies and gentlemen, if you'd like to ask a question. Please press star one on your telephone again to ask a question. Please press star 111 moment. Please.

Our next question comes from David Westenburg of Piper Sandler Your line is open.

Hey, guys. Congrats on another solid print and a great guide.

I would ask Joe that commentary about the 30000 to two X three acts that can you just give us more color on what you are talking.

Are you talking about the entire cleanup.

It's been a cycle of fusion base or is that the one when they are sorry pheno cyclic.

Or is that just with the fusion and how should we think about the total base.

In that ramp.

Just to clarify on your commentary there, yes, our commentary and Thats really a multiyear a commentary that we're talking about two to three times over.

A several year period.

This whole process is a building process quarter by quarter year by year.

Really the key to get the overall fino cycle infusion number up is to continue to transition as many customers as possible from just <unk> to a pinot cycle or fusion, that's really we're partway through that whole process of converting those customers too.

Encourage them to buy a fusion.

So that's really a.

Piece of the equation, if we get the majority of <unk> customers to shift to a pinot cycle infusion, that's how you'll get those those kinds of numbers of on average 60000 70000 per year, but it'll it'll take.

Four years to get there, but just to make sure David.

That growth that is that is the total average amongst our fianna cycle or user base.

Right yes.

Got it yes that last part thank you. Thank you.

Much because that last part is actually.

Can I ask about how you came up with exactly that number.

Yes.

I appreciate the color now can you just one more one more part to this little part.

Are you seeing more adoption or can you talk about the percentage of adoption.

<unk> 15, a cycle or who get the microscope is this.

Almost all of them and then in terms of career retroactive placements I mean, how far do we do we have to go what's the kind of.

The goal penetration rate of that I'm, assuming it would be 100%, but could be close to 100% and where we are that in terms of the penetration rate, yes, I'll take that last part and then Joe can give you a little bit more color.

Youre right it probably won't go all the way to a 100% because there are some there are some labs that are.

That preferentially use some third party microscopes.

That's a really that's.

That's going to be very overtime.

Decreasing a pretty small percentage of the total.

But Joe can speak to kind of where we are in in terms of the penetration.

Amongst our existing user base and kind of the attachment we see going forward for new customers.

Yes.

Tax rate and when we say attach rate, we mean every time somebody buys.

<unk>, how often are they buying a fusion at the same time, it's really good.

We initially modeled that at 55% or 60% attach rate, it's coming in 80% plus right now and I think customers really see the value of buying the two instruments together.

And so we from what we can tell.

There will be some people, who still only by a fino sigler without the fusion, but thats going to be the minority of people. So I think 80% is a good number to go with for now.

And then for the existing installed base David were.

We're less than halfway there.

I would say directionally call, it 40% or so maybe 30% 40%.

Of the total.

Customer base that had the Athena cycle or.

Before the fusion came out.

Now have the fusion.

So we still have a lot of headroom to upgrade existing customers.

I appreciate I'll ask the rest offline. Thank you. Thank you.

Thank you one moment please.

Our next question comes from the line of Tim Chiang of capital One your line is open.

Okay. Thanks.

Brian Jo I think theres been a lot of questions just about pull through the impact of the new fusion two point on launch and also.

How that will benefit your reagent business has this kind of a lag effect.

In terms of when you expect a.

A ramp with the reagent side of the business.

As more of the fusions convert over to the two point out.

Well, yes, I mean, theres always a lag effect with any NPI new product introduction.

And.

So the standard there.

The standard kind of instrument utilization lag and I say standard because doing this for 30 years, it's pretty much formulaic.

There <unk>.

Customer buys an instrument initial pilot run in Q2 and in the first quarter.

There are assessments happened in the second quarter, and then coming out of that into the third quarter, they start to get real productive use.

So thats a typical cycle for an instrument. So that that is the that is the lag we're now starting to see realized.

On the fusion as it impacts our total pull through given the phenotype of our future customers have higher pull through into the <unk> cycle as well.

So that lag is most certainly real.

And then do you have you have an adoption cycle with any new application or assay on that very system itself.

So that is probably generally shorter.

Because youre dealing with an instrument that's ready to grab those new panels right away or that new applications. If it was RNA.

Yes.

So yes, there is a lag effects amongst all of these.

That's why we've talked about this.

This build over time of pull through.

Great and.

So maybe just wanted to follow up Bryan.

You sign this partnership with Ashland at the beginning of the year.

How meaningful do you think this partnership will.

What sort of impact do you think it will have on your field imager Ht instrument.

The impact is going to be.

An expansion of projects.

That our pharma partners implement on the HD.

That's going to be the first impact and thats not something that we will.

Necessarily quantify externally.

Because we're already seeing that happen and thats because.

The new panels that we're launching but also for our lab services business.

Because it's going to galvanize these additional projects.

In the service CLIA lab as well.

Got it.

And Joe just one last question.

Gross profit margins around 57% I mean is that a pretty good.

Starting number for 2023, and just sort of wondering how that sort of progresses is bigger.

Rolls out.

Yes, we would project that that number is going to go up in 2023.

Alright, and your gross margins on the reagent business are around 80%.

Right.

Yes, mid seventy's yet.

Okay, Great Super.

Thanks, so much.

Thank you I'm showing no further questions at this time, let's turn the call back over to Brian Mcelligott for any closing remarks, well, yes, just we're at the top of the hour. So just I wanted to thank everybody for their time their attention or their support and we look forward to following up with each of you. So thank you everyone.

Thank you ladies and gentlemen, this does conclude today's conference. Thank you all for participating you may now disconnect have a great day.

Q4 2022 Akoya Biosciences Inc Earnings Call

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