Q1 2025 MaxCyte Inc Earnings Call
Good day, and thank you for standing by. Welcome to the MaxCyte first quarter earnings conference call. At this time, all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised.
To withdraw your question, please press star 1 1 again.
Speaker Change: Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Eric Abdel, investor relations. Please go ahead.
Good afternoon, everyone.
Speaker Change: Thank you for participating in today's conference call. Joining me on the call from MaxCyte we have Maher Masoud, President and Chief Executive Officer and Douglas Swirsky, Chief Financial Officer. Earlier today, MaxCyte released financial results for the first quarter and at March 31st, 2025. A copy of the press release is available on the company's website.
Before we begin, I need to read the following statement.
Speaker Change: Statements or comments made during this call may be forward looking statements within the meaning of federal security laws.
Speaker Change: Actual results may differ materially from those expressed or implied in many forward-looking statements due to a variety of factors which are discussed in detail in RSEC filings.
Speaker Change: Accept as required by applicable law, the company has no obligation to publicly update any forward-looking statements, whether because of new information, future events, or otherwise. And with that, I will turn the call over to Maher.
Maher Masoud: Thank you, Eric. Good afternoon, everyone, and thank you for joining MaxCyte's first quarter at 2025 for any school.
Maher Masoud: Before discussing our business performance, I would like to take a little time to discuss the current environment.
Maher Masoud: It's obvious that macro backdrop has become more dynamic since the start of the year, with headlines emerging that have an effect on our industry and the lifestyle to space as a whole. As they in our release, we have a strong first quarter and remain confident in operational focus and underlying business. [inaudible]
Maher Masoud: However, we are aware of and adapting to macro uncertainties that could affect our business.
Maher Masoud: All of our manufacturing is in the U.S., and more than two-thirds of our revenue is from the U.S. We can potentially have greater exposure in Europe and Asia in the event of tearful retaliation. But we have mitigated tear up impacts in 2025 by leveraging our global distribution network where appropriate. The U.S. Department of the U.S. Department of the U.S. Department of the U.S.,
Maher Masoud: is the management team's job to navigate through this more challenging environment, and will remain focused on X Thank you for your hard work on the plan for 2020-25 from the L.A.
Speaker Change: Jumping to the first quarter, MaxCyte reported 10.4 million in total revenue, which included a strong core revenue of 8.2 million, an SPL program revenue of 2.1 million.
Maher Masoud: We were pleased with the business performance to start the year, which was in line with our expectations.
Maher Masoud: The quarter is highlighted by continued demand for our expert platform, strong execution from our sales team, and successful progress in a great security act.
Maher Masoud: We have begun 2025 as a more agile and focused company than ever before, which is the longest adapt to the dynamic macro backdrop so far this year.
Maher Masoud: Throughout 2024, we conducted a bottom-up review of MaxCyte to optimize new product development, manufacturing, commercial execution, and capital allocation initiatives.
Maher Masoud: The streamlining of the business resulted in some workforce changes, including a reduction in inefficiencies and addition of key personnel.
Maher Masoud: These changes across MaxCyte have improved accountability and better aligned resources with the company's long-term goals. We have reduced our operating expenses and cashburn while we also increase our product offerings, best positioned the company to achieve profitability with our existing balance sheet.
Maher Masoud: Has stated earlier, the operating environment for our customers continues to be challenged, particularly as the macro environment has become increasingly dynamic since the beginning of the year.
Maher Masoud: Customers have become more hesitant to capital equipment purchasing decisions over the last few months, with a few customers reallocating R&D spend prioritized certain programs over others.
Maher Masoud: Our team has adapted well to the evolving environment so far this year, and we are confident our operational focus and highly differentiated offerings will allow us to deliver against our 2025 guidance, which we have reaffirmed today.
Maher Masoud: To summarize the core business results in the first quarter, the instrument installed base grew to 787 as of March 31st, with instrument revenue of 1.4 million.
Maher Masoud: License revenue was stable quarter over quarter and year over year at 2.5 million, demonstrating strength from SPLs as a progressive eclinic.
Maher Masoud: and we were pleased with the continuation of strong p-demand as p-revenue grew 13% year-over-year driven by activity from early stage and clinical customers.
Maher Masoud: Lastly, we have seen solid initial traction with secured DX in the first two months we have on the company or remain on track to deliver at least 2 million and secured DX revenue for the year.
Maher Masoud: Stepping back, despite a difficult market environment over the near term, we remain very optimistic about the film's gene therapy market and associate trends that MaxCyte's for platform health
Maher Masoud: Non-Viral Self Therapy continues to move towards engineering approaches and involve more complex therapies.
across an expanding variety of cell and disease types.
Maher Masoud: Additionally, Cell and Gene Therapy Developers and Regulators are placing an increasing emphasis on safety.
Maher Masoud: Scythe Solution, including Secure DX, is incredibly well positioned to support these trends.
Maher Masoud: Add Discuss on a last course call. The Secured DX Services platform provides developers with safety assessment of direct therapy earlier in the discovery process through on and off target gene editing assessments, which provides a range of benefits for programs. The Secured DX Services platform provides a range of benefits for programs.
Maher Masoud: With the addition of security at the MaxCyte, we can now provide ex-fuel and individual solutions to both self-therapy and gene therapy customers.
Maher Masoud: The integration of Secured Yes is going very smoothly. Customers have been receptive and interested in the Secured Yes offerings. We are seeing strong synergies and leveraging our sales and marketing teams, and we have added tremendous talent, expertise, and drug safety assessment with the Secured Yes team.
Maher Masoud: Over time, we believe that gene editing assessments will continue to become increasingly important and eventually essential to sell gene therapy development programs and their safety profiles.
Turning to our SPLs.
Maher Masoud: We continue to support our existing clients as they progress their programs through the clinic and strengthen our expanding portfolio.
In the first quarter of 2025, we signed KG Therapeutics. [inaudible]
Maher Masoud: We enter into an agreement with precision-biased sciences to acquire a license to Asia-South, bringing our total number of active SPLs to 29. We continue to steer a bus pipeline of SPL opportunities ahead of us, and expect to sign SPLs at our historical rate of 3-5 a year in 2025.
Maher Masoud: skillset of commercial and field application scientists, regulatory support with accessible FDA master file, and differential electrification technology with superior results. The forensics are offering an allows us to continue to capture meaningful economics in our SPL agreements.
Maher Masoud: In the quarter, SPL program relay revenue is 2.1 million, including milestone revenue and that came from cash Chevy commercial royalties.
Maher Masoud: During Burntex's first quarter earnings call just a couple of days ago, the company indicated that there are now 90 patients who completed cell collection up from approximately 50 patients stayed in their fourth quarter, 2024 earnings call, further more than twice that number of patients, some more than 180 patients.
Maher Masoud: have been referred by physicians to activate treatment centers to initiate the treatment process with many centers having collected cells from multiple patients.
Speaker Change: The company indicated that interest in cash Chevy continues to be incredibly high and to suck a cell disease and ban it out seeing the patient and physician communities globally. An uptake is accelerating as access and reimbursement are secured and familiarity with the process from collecting cells and infusing this truly transformative treatment grows.
Speaker Change: Burntex indicated aid patients have received their infusion of Cachevian and it itself is Q1, and reiterated that they believe Cachevian has the potential to be a multi-billion dollar product for Burntex.
Speaker Change: As we look ahead, the future potential programs we are supporting the clinic contains to grow as we head SPLs.
Speaker Change: There are eight potential proof therapies in 2027 and 2028 supported by MaxCyte and an additional potential 12 proof programs from 2029 to 2031.
Speaker Change: As a management team, we'll maintain an operational rigor in 2025 and beyond, continuously evaluating the ways to be more efficient while ensuring we prioritize investment in areas of high growth. This will include ongoing organic investments in the company, along with inorganic investments and extra opportunities, such as security X.
Speaker Change: Our management team in collaboration with our board always strategically assesses capital allocation initiatives that offer superior returns for MaxCyte and our shareholders.
Speaker Change: Organically, we're very confident that processes and roadmaps can have put in place to drive growth. Inorganically, we strive to broaden our offerings to solve critical pain points and challenge the uncertainty development. In both cases, we carefully manage our financial health and are very selective with capital allocation decisions.
Speaker Change: All in all, we are committed to deploying capital to drive value for shareholders of a long term.
Speaker Change: I would like to take a moment to talk about that, to spray the listing from the A-Markets.
Speaker Change: In April , we announced a MaxCyte in Charlotte approval to deal with some of the aim and maintain a single listing on Nasak at our annual meeting of stockholders which will be held on June
Speaker Change: As we have stated, the company and board believe that it is no longer in the best interest of MaxCyte or it shows the continued trade on aim.
Speaker Change: I want to emphasize, however, that we are thankful to our UK-based shareholders for their support and belief on a long-term vision, and we will continue to engage with and request support from our UK shareholders in future years.
We will provide an update following the AGM.
Speaker Change: To close, we are pleased with the first four results and the progress that we have made so far this year. We are navigating a dynamic and evolving background environment and remain on track to deliver on our 2025 goals.
Speaker Change: We are optimistic about the long-term opportunity in the industry and for MaxCyte as a premier still engineering platform. With that, I will now turn the call to Doug to discuss our facial results. Doug?
Doug: Thank you, Maher. Total revenue in the first quarter of 2025 was 10.4 million compared to 11.3 million in the first quarter of 2024, representing an 8% decline. Our milestone revenue remains 1p from quarter to quarter, which can substantially impact European comparisons in total record revenue.
Doug: We reported core revenue of $8.2 million compared to $8.2 million in the comparable prior year quarter, which absent rounding represents approximately an increase of 1%.
Doug: We then court revenue, instrument revenue was 1.4 million compared to 1.9 million in the first quarter of 2024.
Doug: License Revenue was 2.5 million compared to 2.6 million in the first quarter of 2024 and Processing Assembly for PA Revenue was 3.9 million compared to 3.4 million in the first quarter of 2024.
Doug: Ansay Service Revenue, which includes secure DX, was 0.1 million in the first quarter of 2025, representing approximately two months of revenue recognized in the quarter following the acquisition in January . Other revenue was 0.3 million compared to 0.2 million in the first quarter of 2024.
Doug: Instrument Revenue in the first quarter of 2025 was negatively impacted by a difficult operating environment experienced by our customers, leading to cautious capital spending.
Doug: Upnote, 57% of our core revenue is derived from SPL customers in the first quarter of 2025, which compares to 53% in the first quarter of 2024. The percentage of core business revenue from SPL continues to demonstrate a healthy balance of early stage to clinical stage customers.
Doug: We recognize 2.1 million of SPL program-related revenue in the first quarter of 2025 compared to 3.2 million in the first quarter of 2024. This includes Maher Masoud revenue from SPL's advancing programs through the clinic and royalty revenue from sales of Cass Chevy.
Doug: Moving down the P&L, Grossmargin was 86% in the first quarter of 2025 compared to 88% in the first quarter of the prior year.
Doug: Excluding inventory provisions and SPL program related revenue, non-GAF adjusted gross margin was 83% in the first quarter of 2025 compared to non-GAF adjusted gross margin of 83% in the first quarter of 2024.
Speaker Change: Total operating expenses for the first quarter of 2025 were 21.2 million compared to 22.2 million in the first quarter of 2024. As my hair discussed, MaxCyte is constantly evaluating the ways in which we can enhance operational efficiency, and we remain focused on making targeted investments to drive long-term returns.
Speaker Change: We commerce the first quarter with combined total cash, equivalent and investments of 174.7 million and no debt.
Speaker Change: Continuing to our 2025 guidance, we are reiterating core revenue growth of 8-15% compared to 2024, inclusive of revenue from security ex, which we expect to be at least 2 million for the whole year.
Speaker Change: Our core revenue outlook assumes that the current operating environment experienced by our customers does not materially change for the better or worse. We are closely monitoring the environment through discussions with our customers and our content that we will continue to execute our plan this year.
Speaker Change: Additionally, we are reiterating SPO program related revenue guidance, which is expected to be approximately 5 billion in 2025, and which includes both expected revenue from pre-commercial milestones and commercial royalties and sales-based payments.
Speaker Change: We will not break out the components of SQL program related revenue due to confidentiality
Speaker Change: We would like to note that our SPL program-related revenue outlook is a risk-adjusted forecast that is achievable under a variety of potential outcomes across our SPLs and the planned clinical progress and commercial success of our customers.
Speaker Change: Lastly, MaxCyte remains in a strong financial position and continues to expect to add 2025 with approximately 160 million in cash, equivalents, and investments on our balance sheet. This guidance incorporates cash paid for secure DX in January in addition to other transaction related expenses.
Maher Masoud: Declose, MaxCyte remains positioned to execute on our 2025 outlook. We remain committed to operating efficiently and spending diligently throughout the year to best support our customers and deliver long-term value to our shareholders. Now I'll turn the call back over to Maher.
Maher Masoud: Thank you, Doug. We're pleased with the financial result and progress that we have made so far in the year, including any grain secured yet extreme commercially and operationally. I want to thank everyone at MaxCyte for their hard work and dedication for buying the highest quality of offerings to customers.
Maher Masoud: With that, I will turn the call back over to the operator for Q&A. Operator?
Maher Masoud: Thank you. At this time, we will conduct the question and answer session. As a reminder to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
Please stand by while we compile the Q&A roster.
Speaker Change: Our first question comes from Matt LaRue with William Blair. Your line is now open.
Hi, good afternoon. We spoke about the
Speaker Change: Sort of more recent introductions of a certainty into the macro environment.
Speaker Change: Largely sort of on the geopolitical and funding categories. What about, you know, from? [inaudible]
Speaker Change: A regulatory standpoint. There's been a number of FDA leadership guideline.
Speaker Change: and Personnel Changes over the last three months. And just curious, you're taken on that as well as what you're hearing from customers about potential upsides or downsides based on what's come out so far.
Speaker Change: Yeah, absolutely. Great question, Matt. Nice to hear from you again. Let me take that on. So obviously it's a little bit early right now to tell the outcomes of many regulatory risk or changes.
Speaker Change: Patential Regatory, you know, hurls I could call about. We're not hearing any of that. The long-term health or benefits is intact. The value proposition for cell gene therapies I think is just as strong today with those changes that they were in the past. We're not seeing any modifications or just wanting to progress more customers than that.
Speaker Change: and then a few things as well. I mean, the industry is a whole but self-gent recognition, which is what I've been saying repeatedly is the path of the future for medicine and really for curative medicine.
Speaker Change: Arm, a line-screwed gen of medicines, we're putting out a note as well, where they have talked about...
Exactly these changes that have taken commissioner and as well as with the new seabirdhead and a few things worth highlighting that, which is...
If you look at Dr. McCarty's position,
Speaker Change: He's mentioned, he's focused on cures and meaningful treatments, meaningful, you know, you know, treatments for diseases that have not been treated before as well as he supports the regulatory pathways for rare diseases.
Speaker Change: So you see the positivity as well from the new FDA Commissioner.
Speaker Change: And one thing I want to highlight as well, just to indicate, this aligns with what Secretary Robert Upcandy has indicated the past. In fact, a few days ago, he came out and there was a, you know, from HHS, there was a CMS, there was a video talking about the CMS pilot program on sickle cell disease specifically.
Speaker Change: where R.F.K. actually mentioned life-changing gene therapies and transforming diseases for sickle cell disease.
Speaker Change: So I think we see this as just a continuation of why the challenging therapy space is that the Forth Home Medicine, we don't foresee any regulatory risk. We're not seeing anything from our customers in terms of any regulatory hurdles.
Speaker Change: and we look forward to continuing dialogue with that, the commissioner as well as the head of Cebu and we have a chance. We see this as a continuation of the great progress
Speaker Change: Okay, great. And then, maybe just one for Doug. I'll see you at an ounce to be...
Speaker Change: The Rift and Operational Review at the end of December . And so I like to sense for how much of those effects were realized in the quarter versus what anything I commit though we might to my cost containment standpoint throughout the year. And then just in terms of the delisting, if there's any way you couldn't...
Speaker Change: You're going to give a sense for a cost you're incurring today with respect to maintaining dual listings that you would not have to incur if you moved to a sole listing.
Speaker Change: So let's take the first order, with respect to the aim, if you're listening, you know, if we're successful there, I think the savings will be the magnitude of several hundred thousand dollars.
Speaker Change: to get recognized sooner than they're paid out. So from a casual point of view a lot of that was in this quarter.
Speaker Change: But I think if you look at the cash position of the company in general, we look at where we're even spending money, they don't know, you know, net of...
Speaker Change: Will disclose this in almost a million dollars worth of transaction-related expenses for the secure transaction that shows up in our financials' first expenses. If you net that stuff out, I think we're showing a clear trend for better control of our spending but can't quantify exactly.
Speaker Change: You know, how much of the cost savings are, you know, we're not thinking about it that way. Some of these have been readabested. I think in general, you know, when you take away the strategic items that that we work down is manifested by the secure acquisition and the trends on expenses are good. [inaudible]
Okay, thank you.
Thank you. Thank you.
Speaker Change: Our next question comes from Julie Simmonds with P.N. Mayor Libraram. Your line is now open.
Julie Simmons: Thank you. Hi guys, just a couple of questions from me. Firstly on the operating environment generally, clearly you touched on the regulatory side. I was just wondering whether there was anything specific that you're seeing either in sort of funding or changing strategies from your customers that's worth talking about aside from the regulatory bit.
Speaker Change: Yeah, absolutely, Julie. You know, so one thing I think we highlight on one highlight is we are seeing some constring on the cathach spending. That is that is where we are right now. Nothing that is in any way where you some nothing that prevent that you know concerns us in terms of the yearly guidance. [inaudible]
Speaker Change: In fact, we've done a review of all of our, you know, for the year instrument sales, we feel confident in the guys for the year and the ex-cune against the final of the pipeline that we have. But we are seeing some hesitation in terms of a larger cap expense from our customers.
Speaker Change: In terms of rationalization, we saw from one of our SPL clients and customers as well, where you saw Kerrywood came out and indicated them for their CB10 trial, they're going to rationalize their program.
Speaker Change: to really focus on B. Summalling this experiences also going after the St. C. B. 10 for a loopless indication.
Julie Simmons: But that's part of our business, Julie, and that's in essence what we've talked about in terms of we expect some customers to rationalize as a type of funding environment. And it's expected, it's actually part of the guidance.
Julie Simmons: And we set for the year knowing that we're going to have the structuralization that we had last year and probably this year as well. So nothing really, don't worry.
Julie Simmons: But we are seeing some cautiousness and cap acts spending that we expected and that we're not seeing an increase of it, but just something we've seen since that's probably a little bit of a difference from the beginning of the year.
Julie Simmons: Last time out so I think we're able to at least hold the pricing if in fact if our product mixes and you're seeing sort of differences in terms of the mix of products that we're selling but I don't think pricing pressure has been an issue.
Lovely. Thanks so much.
Yeah, thank you, Julia.
Speaker Change: Thank you. Our next question comes from Mark Massaro with BTIG. Your line is now open.
Mark Macero: Hey guys, thank you for taking the questions. I wanted to start with a question on your secure acquisition.
Mark Macero: It sounds like you're doing a good job implementing or integrating it. I'm curious since this has an opportunity for you to expand to work within Vivo customers.
Speaker Change: Can you just maybe add some context to that? Obviously, your electroperation technology has been used for your ex vivo folks. In what ways do you think secure can move you more into the fold in vivo and in which particular focus areas?
Speaker Change: Yeah, absolutely. Mark, great question. So obviously, we are very excited about Secure DX, let me reiterate that.
Speaker Change: Indicate that the future for them this year and then the rest, you know, in the future years.
Speaker Change: We feel as though we have the opportunity to really expand into the entire cell and gene therapy space in the IU administration.
Speaker Change: Right now, if you look where we are, we're the premier technology for ex-people and non-vlogging editing.
Speaker Change: But now with the chance that we're doing it, Secured X's current customers and prospective customers are in the individual space and particularly there's two areas that allow us to get into which is not just those that are using AAB delivery but also LMP delivery as well.
Speaker Change: That's something that in the past we've never had that ability to really enter into that customer base and now we can.
Mark Macero: with Secure DX, but that's something else for us as well, Mark, which is, I've talked about in the past, electric fraction, LNTs, AAVs, they're not just competing delivery systems, they're also complimentary.
Mark Macero: where it potentially can allow us to also capitalize on those complimentary delivery customers as well. So really, it gets us into that space that we haven't really been into before.
Mark Macero: and allows us to work across the sounds in therapy space for safety assessments, whether you're doing a V delivery on P delivery, or all the pressure on X Pivo, doing gene editing safety assessments, knowing where the nomination confirmation sites are, especially now where there is more scrutiny on safety and ensuring that we have...
Mark Macero: Life-saving therapies that have gone through the scientific rigor of the safety assessment, let's play the entire songs in therapy space, and we're excited about them Mark, I hope they answer your question.
Mark Macero: Yep, that's super helpful. And then I wanted to follow up with a two-part question. I guess
Mark Macero: The SPL revenue for 2.1 million certainly came in above my expectations, curious if it came in before your expectations as well, recognizing you have a...
Mark Macero: Full year guide for five, but I'm just wondering if the timing came in earlier. And then the second question is on sort of the makeup of the revenue drivers this year.
Mark Macero: You know, recognizing instruments are likely to remain under pressure this year. Do you see a similar trajectory of perhaps low double digit growth and consumables steadily progressing throughout the year? Or how should we think about that?
Speaker Change: Yes, Douglas, do you want to take that question? Yes, so...
Speaker Change: terms of the mix of revenue. Let's take a quick, let's back up quickly talk about secure right now. This is a new addition to the line items for core revenue, right? So we've got asset service revenue, which is now included.
Speaker Change: and in terms of, you know, recognizing, you know, on reports deliver, so there's some revenue recognition timing issues there, but that business is off to a good start. In terms of the mix, obviously instruments were a little down for the quarter, but we are, you know, paying very close attention to that. That is one of the key drivers of the forecast and looking out in the later quarters to, you know, assess our ability to get.
Speaker Change: To get within the guide as we've provided, we feel comfortable with that in terms of what can take away from the revenue mix within or revenue and extrapolate out that for the year. That's tough to say. Obviously, you know, license revenue is pretty stable. Usually we've talked about a couple of headlines that we've faced in that area the last time that we've had an earnings call. [inaudible]
Speaker Change: But Instruments is an area where we see an opportunity to drive growth from this point. This is a long point for us on Instruments. That's part of that was a product mix. We saw a lot of ATXs for instance. It's still a capital. You know, people bring very cost to the capital spending decisions. But we do feel good about the work that we've done to really understand the cost of our buying process and decision points and all the information that we have in our CRM. So we feel very good about. Thank you.
Speaker Change: The guidance in terms of the mix, you're gonna have to wait and see. We don't obviously
Speaker Change: Gives guidance broken down by five of these areas, which certainly don't give quarterly guidance as well, which are servals back to your first question, which is, you know, were we surprised? You know, we modeled how if not the SPL firm-related revenue, we really take a look at a variety of potential outcomes there and score, you know, when these things could occur, what's the probability? And it's a basket of things that sort of spits out the number that we're comfortable providing these guidance, whether it came earlier in the year, [inaudible]
Speaker Change: and then expected. I don't know if that's really the case. We really don't break it out by quarter. There's clearly some milestones in there, some milestones that we anticipated that would happen in 2025. There's also obviously a component that's for our global digital cash javvy. We just don't break that out as well.
That's helpful. Thanks, guys.
Yeah, thanks, Mark.
Speaker Change: As a reminder to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.
Speaker Change: Our next question is from Brendan Smith with TD Cowan. Your line is now open.
Speaker Change: Hey guys, this is Chad Wiatrowski on for Brendan Smith. It's given the priority to invest organically as you are. Can we expect any new slow related to new products or product enhancements this year? And can you also just help paint the picture of what MaxCyte could look like in the next five to five years as you continue to expand beyond electriceration? Thanks for the question.
Speaker Change: Yeah, absolutely. So Chad, nice to hear from you and great question.
Speaker Change: Obviously, we indicated last year some of the strategic conditions that we took on and really removing some of the efficiencies was meant to do a few things for all of which is
Speaker Change: So yes, we do have a health care bus product pipeline we're working on and that we believe that we'll have launch products this year.
Speaker Change: I can't give obviously for competitive reasons what those products are [inaudible]
Speaker Change: But we believe they're meaningful products that allow us to expand to them.
for the Space Wing right now.
Speaker Change: That really is complementary to our current electrician technology and allows us to give our customers a complete workflow from early discovery all the way to the clinical commercial, which is when differentiates us from any other company, which is where we're allowed, we have the ability to work with 29 SPL clients that privilege of working with them.
Speaker Change: So, we'll work on products that allow us to really begin to truly increase our total address of the market to increase that sales as well.
Speaker Change: and we'll have launch boxes here within our current operating expenses and our current financial health.
Speaker Change: In terms of, about, you know, the inorganic growth, we're always looking at the inorganic growth opportunities allude to that on the call today. Along the lines, but we don't secured yet, as we see opportunities for us to grow in the Selonzean therapy space, where we have highly differentiated parts, but secured yet offers us.
You know, off target, Janiting, off target, set, miss death [inaudible]
No one else really out there could compete with. [inaudible]
Speaker Change: We're always going to be looking for those type of opportunities [inaudible]
Speaker Change: Dan Stratovich, Growing in the Soundjane Therapy Space, which we believe is the future of medicine.
Speaker Change: Again, we're always doing it in a very smart and thoughtful way, ensuring that our cash balance sheet is always at the forefront of where we aren't really ensuring that our path profitability is something that remains maintained with those types of transactions. So,
Speaker Change: On both fronts, we'll have fire launches here and we'll continue to look for those opportunities but at the same time we're going to look at a very thoughtful way ensuring that it only grows our areas.
and our financial health and only grows our total adjustable market. But at the same time we're very confident that this is what we have. We have a very healthy
Unknown Executive, Maher Masoud, Douglas Swirsky
Thank you. One moment for our next question.
Speaker Change: Our next question comes from Dan Areas with Steeple. Your line is now open.
Maher Masoud: afternoon guys. Maher, one of the themes coming into this year was just this idea that the pipeline final with any industry was starting to open up again.
Maher Masoud: After this period where it narrowed because companies were getting to save money given the financing environment you mentioned asset prioritization earlier in your prior and your prepare to mark is your sense that we're starting to swing back towards. Thank you very much.
Maher Masoud: Portfolio Narrowing, again, a bid where our company is still holding the line in terms of the scope of what they're working on.
Speaker Change: You know, so the angry question we saw it, we saw that.
Speaker Change: Earlier last year, we saw that rationalization of programs that companies are working on.
Speaker Change: You know, obviously, the beginning of the show has changed, what we thought was maybe the expansion of that breadth of programs.
Speaker Change: for that one program. We're not seeing that with any other customer dull. So it's we obviously where we're keeping a close eye and we'll update if we do see it. But as of right now, we're not seeing a re-expansion of programs but we're not seeing a continued rationalization other than that one has built customer that we saw.
Yeah, but at the same time, we also mentioned. [inaudible]
Speaker Change: Therapy there. So we saw that, that rationalization, but we're not seeing too much more, we're not saying Spanish, we're kind of seeing the, I would say status quo, status quo is what we're seeing from the end of last year then.
OK, that's good.
Speaker Change: Did try to get you from one quarter to the next. Now that feels a little bit less okay, so can you just touch on what the drivers would be on the incremental step-ups if in fact you feel comfortable with modeling that way?
Thanks.
Yeah, so, um,
Speaker Change: We do feel comfortable modeling it out that way. It's not because, you know, it's first off we said at the beginning of the year we're really not anticipating the market to really get better. The guidance we've provided sort of is based on where the market is now. Recognizing that you can make a point that this market slightly different than it was seven weeks ago when we spoke. [inaudible]
Speaker Change: But we do see when we look at our models that we do have some incremental growth, particularly at the back end of the year, and that's really more of a reflection of specific identified opportunities within the pipeline and some initiatives that we've made within this sales organization. And so we feel very good about it. As you know, leases have been relatively consistent.
Speaker Change: You know, P.A.'s, you know, we can model that out based on, you know, on pull through and run rates, you know, for, for, and in a variety of different ways. It's really instruments with the hardest piece before casting again when we look at, we do look at specific identified opportunities. [inaudible] know, you know,
Speaker Change: This tends to build the revenue later in the year. Do I think that that's based on, you know, purchase, purchase decisions that are because the market is expected to improve, improve? That's not how we've addressed this and modeling this out and discussing. We actually do have a weekly call here.
Speaker Change: with the commercial team, where members of the county finance and operations team sits down with the commercial team and we really do go opportunity by opportunity to understand, you know, where those specific, you know, sales can manifest itself and that's a, so that we can come to this call with the confidence that we've got the right guidance in front of the busters.
Yep. Okay. Thanks, Tom.
Maher Masoud: Thank you. At this time, I am showing no further questions. I would now like to turn it back to my hair for closing remarks.
Maher Masoud: Thank you, operator, and thank everyone for joining us at today's call. We look forward to hearing, speak with all of you and hearing from you again on. Next time, he's calling a few months.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.