Q1 2025 Nautilus Biotechnology Inc Earnings Call
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Speaker Change: Please be advised that today's conference is being recorded.
Speaker Change: I would now like to hand, the conference over to your first speaker today, John E Investor Relations.
Speaker Change: Thank you.
Speaker Change: Earlier today Nautilus released financial results for the quarter ended March 31 2025.
Speaker Change: If you haven't received this news release or if you'd like to be added to the Companys distribution list. Please send an email to investor relations at Nautilus stockpile.
Seral Patel: Joining me today from Nautilus are serial Patel, co founder and CEO Parag Malik co founder and Chief scientist and Adam <unk> Chief Financial Officer.
Seral Patel: Before we begin I'd like to remind you that management will make statements. During this call that are forward looking within the meaning of the federal securities laws.
Seral Patel: These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.
Seral Patel: Additional information regarding these risks and uncertainties.
Seral Patel: In the section entitled forward looking statements in the press release Nautilus issue today.
Seral Patel: Except as required by law Nautilus disclaims any intention or obligation to update or revise any financial or product pipeline projections or other forward looking statements, whether because of new information future events or otherwise.
Seral Patel: This conference call contains time sensitive information and is accurate only as of the live broadcast on April 29 2025.
Susan: With that I'll turn the call over to Susan.
Susan: Thanks, John and thank you all for joining us today.
Susan: One was a productive quarter for northwest as we continued to advance our mission of unlocking the full potential of the proteome, we're making solid progress across many fronts as we work to bring uniquely valuable proteonomic data to biomedical researchers across both modalities of our platform targeted pretty informed detection an area, where we're <unk>.
Susan: Rapid advancements and we'll discuss extensively this morning and broad scale discovery.
Susan: The evolution of our broad scale development activities as we reported on in detail last call continues on schedule and in a way that we believe reduces technical risk while yielding the greatest possible platform performance ahead of the planned launch of our broad scale product in late 2026.
Speaker Change: As you'll hear in more detail from parag in a few moments I will.
Speaker Change: Really pleased with the recent results of the internal verification and validation or <unk> work, we've done on the our Tau Proteoform assay, the assays reproducibility accuracy dynamic range and sample compatibility align closely with our anticipated launch specifications and with the requirements we can.
Speaker Change: <unk> to hear from potential customers and partners.
Speaker Change: As I mentioned previously our major goal in the first half of 2025 is to provide leading researchers with access to our platform for Tau related Proteoform studies.
Speaker Change: We're confident that 2025 will be the year that researchers begin to apply the platform's capabilities to ask and answer important questions about the role of Tau protein forms in Alzheimers disease and other neurodegenerative diseases.
Speaker Change: To that point, we continue to hear enthusiastic expressions of interest from customers and partners in our Tau capabilities in particular and targeted proteoform detection more broadly both public and private context for.
Speaker Change: For example, our recent genome web article quoted a well known east coast researchers speaking about the Nautilus platform as follows.
Speaker Change: I think this is just the beginning of really understanding what these different how molecules are the excitement for us is that with not lift we're seeing this at the single molecule resolution going down the road as they add to that collection of antibodies that increased complexity will tell us even more about how to.
Speaker Change: How has modified and what the consequences of those modifications could be.
Speaker Change: On a related note in Q1, we undertook a series of in depth interviews with more than 30, proteomics researchers across academia pharma and nonprofits with the goal of more fully understanding and identifying the defining characteristics of our potential customer segments and the drivers of the.
Speaker Change: Option across a number of dimensions.
Speaker Change: <unk> research focus maturity objectives expectations lab characteristics financial and organizational considerations.
Speaker Change: Through these conversations we validated that there continues to be significant interest in both the targeted pretty firm and broad scale discovery capabilities of our platform.
Speaker Change: These researchers were particularly consistent in their belief.
Speaker Change: That their inability to accurately quantify protein forms in a reproducible manner is a major inhibitor to future biological advancements.
Speaker Change: Customer after customer spoke of their current frustration and how the nautilus platform could be a new way to ensure a more detailed and accurate understanding of protein modifications.
Speaker Change: They were then able to draw a straight line between that better understanding and advances in targeted therapeutic development.
Speaker Change: Recent preliminary partnership related conversations with several large pharma companies academia, well known nonprofit research organizations and governmental entities also indicate significant interest in targeted proteoform analysis for a wide range of use cases, including drug targeting and drug discovery efforts.
Speaker Change: We look forward to continuing and formalizing those relationships and we will keep you apprised as we continued to move down the partnership path.
Speaker Change: Needless to say be experimental findings from our internal D&B work the results of which we hope to submit for publication in the coming months.
Speaker Change: And the extremely positive feedback coming from external sources, such as those I. Just mentioned has created great anticipation about the potential positive impact our targeted pretty firm capabilities may have on alzheimers disease, and other neurodegenerative diseases and beyond.
Speaker Change: For a more detailed update on this and our other R&D efforts, let me turn the call over to Parag Parag.
Thanks, and good morning all.
Speaker Change: As <unk> shared in Q1, we made excellent progress against our development cost on our core platform Tau Proteoform assay and broad scale proteome assay.
Speaker Change: This quarter in particular saw significant progress on transitioning both our Tau assay and core platform towards readiness for larger scale application to enable our partners to ask and answer important biological questions.
Speaker Change: Readiness was evaluated using a rigorous verification and validation DNV process of the Tau Proteoform assay as run on the latest generation of our instrument.
Speaker Change: Additionally, performed a number of pilot biologic studies with the platform, including our first ever analysis, comparing samples from brains of patients with Alzheimer's disease to control samples.
Speaker Change: I'd also like to note that the extensive foundational work, we have put into reliability reproducibility and scale across every component of our platform from reagents to software over the past several years bore fruit that was clearly demonstrated in our <unk>.
Speaker Change: Also as a reminder, the instrument that was used in this tau assay D&B is the same instrument used for the broad scale proteome assay the.
Speaker Change: The only differences between the targeted proteoform assay and the broad scale proteome assay or the consumables.
Speaker Change: Consequently, the focus on the Tau assay. This <unk> was in no small part a significant validation of our entire platform.
Speaker Change: Our verification and validation evaluation looked at a number of key customer and product requirements specifically.
Speaker Change: Specifically from customer feedback it was clear that customers prioritize reproducibility accuracy dynamic range number of Proteoform as measured sample compatibility sample input requirements turnaround time and reliability.
Speaker Change: The assay exceeded expectations on all criteria and is ready for broader application.
Speaker Change: Hello, I will describe some of the key criteria and observed performance in greater detail.
Speaker Change: The tested assay included 12 distinct affinity reagents targeting a range of locations isoforms or position specific post translational modifications of Tau, giving a theoretical maximum of 4096 pretty forms.
Speaker Change: To estimate key figures of merit, such as accuracy and reproducibility sets of recombinant protein representing a range of pretty of forms were mixed into a background substrate such as cell like state in varied ratios.
Speaker Change: Based upon customer feedback, we had set a target accuracy to 5% are less than 30%.
Speaker Change: We observed that across all runs our median percent error was approximately 10% exceeding our target by a factor of three.
Speaker Change: For reproducibility, we set our target as measured by coefficient of variation to be better than 20%.
Speaker Change: We examined different types of reproducibility, including between lane between runs on the same instrument between instruments between flow cell lots between reagent lots between sample, perhaps with the same operator and between sample perhaps with different operators.
Speaker Change: We note that such extensive testing affirms our steadfast commitment to an incredibly rigorous process to ensure that we will be generating extremely high quality data for our customers.
Speaker Change: We significantly exceeded our reproducibility targets. For example are observed across lien median CV was one 5% Likewise, our median CV across library prep replicates was one 7% more than 15 <unk> better than our targets.
Speaker Change: We've heard extensively from our customers about the importance of reproducibility to them for a number of reasons.
Speaker Change: The primary driver of customer demand for high reproducibility as it is generally perceived as an indicator of high quality reliable data.
Speaker Change: In addition, it enables customers to expand the size of their cohorts rather than spending valuable runs on technical replicates.
Speaker Change: Furthermore, low Cvs make it possible to observe in a statistically significant manner small but important biological differences.
Speaker Change: Reproducibility, particularly across operators in instruments is critical when generating datasets for training AI.
Speaker Change: One of the key Differentiators of our platform is it's dynamic range. While you will often hear people talk about across analyte dynamic range, such as the ability to measure both high abundance proteins alongside low abundance proteins.
Speaker Change: Within analyte dynamic range is often more important.
Speaker Change: Within analyte dynamic range describes the ability to measure in a given analyte accurately across a range of concentrations.
Speaker Change: For example, if an analyte has 100 fold difference between samples are you able to accurately measure 100 fold difference.
Speaker Change: Or does it instead appear to be solely a factor of five.
Speaker Change: This sort of compression occurs within TMT base mass spectrometry studies the.
Speaker Change: The consequence of this is that large biologically impactful differences in abundance cannot be accurately measured leading to effect sizes that are inaccurately compressed and thereby missing important biology.
Speaker Change: Additionally, on the low end small changes in abundance may not be well quantified obscuring researchers ability to find important biological differences.
Speaker Change: During our testing we observed within analyte dynamic range exceeding four orders of magnitude on our platform.
Speaker Change: This was well beyond our expectations and several orders of magnitude better than current methods.
Speaker Change: As remarkable as this early dynamic range is we anticipate significant advancements as we continue to mature and evolve the assay.
Speaker Change: Regarding sample compatibility and input.
Speaker Change: We applied the assay to a human cell line.
Speaker Change: Ips CS Organoid humanized mouse brain and to human brain samples.
Speaker Change: We demonstrated excellent data quality across this wide range of sample types.
Speaker Change: Regarding sample amount the assay was shown to be performance with as little as 10 micrograms total protein input that contained 0.03% Tao.
Speaker Change: Lastly, I'll note the performing of the NV study on this scale required a massive number of instrument runs.
Speaker Change: It allowed us to evaluate factors, such as instruments and software reliability as well.
Speaker Change: The instrument and software were highly performance with reliability, well above our target of 80%.
Speaker Change: Through the process, we also significantly accelerated and matured both the instrument control software and the data analysis pipeline software.
Speaker Change: This result speaks to the increasing maturity and readiness of what will be our core commercial platform.
Speaker Change: These results will enable us to provide clear guidance around performance specifications for our Tau pretty affirm assay and to engage in significant partnerships in drug and biomarker development.
Speaker Change: As part of such a partnership we performed our first pilot study of human Alzheimer's disease brain.
Speaker Change: The proteoform landscape of.
Speaker Change: Alzheimer's disease has become of increasing interest given the recent attention drawn to Tao <unk> hundred 17 serum assays and their potential for improving 80 diagnosis.
Speaker Change: Furthermore, the field has generally hypothesized the importance of hyper phosphorylation of Tau is a critical aspect of disease progression.
Speaker Change: But how that hyper phosphorylation manifests as a single fast correlation on a significant portion of tau molecules or instead as combinations of many modification is not widely known.
Speaker Change: It is anticipated that the order and timing of multiple fast correlation could generate a unique TTM code that could help us better define the most critical drug targets for a D. As well as provide biomarkers that can be used not just for diagnosis, but also for prognosis and.
Speaker Change: As a biomarker companion stratify patients, which may respond to a given therapy.
Speaker Change: This study, though very early is already showing an intriguing new look at <unk> in.
Speaker Change: In particular, our analysis of the Proteoform landscape of a patient with extremely aggressive disease showed the distinctive presence of molecules. The demonstrated a more complex phosphorylation pattern that has ever been reported a result, not achievable on any other platform.
Speaker Change: With the conclusion of our <unk>, we look forward to continuing to support our partners and their efforts to make significant progress in combating neuro degenerative disease.
Speaker Change: We anticipate submitting a manuscript summarizing our Vod and biological pilot work this quarter.
Speaker Change: Moving on to our broad scale efforts as we noticed on our last call. We reported that we will be optimizing our assay configuration to better align with the characteristics of our pro library.
Speaker Change: These optimizations include the fluorescent labels used within our platform the chemistry used to attach probes to these labels the chips surfaces themselves to maximize specific binding and the buffers used during binding and measurement Q.
Speaker Change: Q1 saw steady progress on improving our broad scale assay configuration.
Speaker Change: The recent data on the evolve configuration continues to be promising this.
Speaker Change: This progress represents a critical step on the path to achieving the milestone of quantifying a significant number of proteins from a complex sample lifestyle likes it.
Speaker Change: With that I'll turn the call back to <unk>.
Speaker Change: Thanks for the update parag.
Speaker Change: As you've heard me say on previous calls to deliver a range of long discussed and long desired improvements in human health, We believe biomedical research needs, a dramatic acceleration and target identification and therapeutic development.
Speaker Change: Just on the results per Arne just reviewed and a range of our other current development efforts. We continue to make good progress pioneering a fundamentally new approach that holds the potential to overcome the limitations of mass spec and peptide sequencing based analysis methods.
Speaker Change: In doing so we anticipate unlocking the value of the protium, both in targeted pretty from analysis and broad scale discovery something we continue to view as one of the most significant untapped opportunities in biology today.
Anna: For a report on our finances, let me now hand, the call over to Anna.
Anna: Thanks, Joe.
Total operating expenses for the first quarter of 2025 were $18 8, million% to 13% decrease compared to $21 $6 million in the first quarter of 2024. This year over year decline reflects our continued focus on disciplined execution and cost efficiency across the organization.
Anna: We are also benefiting from the absence of nonrecurring costs incurred in the first quarter of 2024 as well as reductions in stock compensation and normal variability in timing of research and development spend this quarter.
Anna: Research and development expenses for the first quarter of 2025 were $11 $5 million compared to $12 $9 million in the prior year period.
Anna: General and administrative expenses were $7 $3 million in Q1, 2025 compared to $8 $7 million in the prior year period.
Anna: Overall net loss for the first quarter of 2025 was $16 $6 million compared to $18 $7 million in the prior year period.
Anna: As mentioned in our last call we anticipate the launch of our platform in late 2026 to ensure our cash runway extends well beyond that point, we made the decision earlier this year to reduce our head count by approximately 16% impacting all areas of the business.
Anna: We recorded limited onetime costs associated with this reduction in Q1.
Anna: And I expect to see the majority of the benefit reflected in our operating expenses over the coming quarters.
Anna: That benefit will allow us to invest in additional development activities, while keeping our expenses relatively flat in the coming quarters.
Anna: We continue to expect our total operating expenses for fiscal year 2025 to be below 2024 levels, while still allowing us to focus our resources on key development milestones and strategic priorities.
Anna: Turning to our balance sheet, we ended the quarter with approximately $193 million in cash cash equivalents and investments.
Speaker Change: They're the $206 million at the end of 2024.
Speaker Change: With our more streamlined cost structure, we continue to project that our cash runway will extend through 2027.
Suzhou: With that I'll turn it back to Suzhou.
Speaker Change: Thanks Anna.
Speaker Change: Nautilus, we're building something fundamentally new a first of its kind platform that can enable large scale protein measurement in a way that has never before been possible.
Speaker Change: The revolutionary innovation carries its share of challenges, we're making solid progress and quarter by quarter getting closer to making our vision a reality I am grateful to our team our partners and our shareholders for their continued support as we work to bring this potentially game changing innovation to the biomedical research community.
Speaker Change: With that I'm happy to open the call up for questions operator.
Speaker Change: Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Speaker Change: These standby as we compile the Q&A roster.
Hugo <unk>: And our first question comes from Hugo <unk> with Morgan Stanley. Your line is open.
Speaker Change: Hi, This is Jason on for Hugo Thank you for taking our questions.
Speaker Change: Just to start off last quarter, you talked about golf finding at least one tower lay a partnership in the first half of 2025 is one of the milestones to track our progress.
Speaker Change: So could you just provide some color on the discussions are ongoing do you still remain on track to announce a partnership in upcoming months. Thank you.
Speaker Change: Yeah. Thanks for the question. This is vigilantly I'll take that one yeah. So on the last call. What we said was that one of the one of the progress milestones that we expect with respect to our Tau efforts with <unk>.
Speaker Change: With the final one partnership on these new capabilities in the first half of the year and conversations with with partners continue to go very well and we have a number of partnerships.
Speaker Change: And collaborations that we're discussing both with organizations on in the pharma world as well with organizations that are in the nonprofit and academic research World and we continue to expect that.
Speaker Change: That in the first half of the year will sign an initial partnership and we expect that as we move through the year, we'll continue to make progress based on some really interesting conversations that are going on.
Speaker Change: I think that.
Speaker Change: In terms of what type of partnership will find first Mike I'm not sure, but my guess is that we'll find one on that.
Speaker Change: The nonprofit academic research sites first as it takes a while for pharma to really see.
Speaker Change: What the capabilities are given that this is a brand new capability that has never been seen before.
Speaker Change: And we haven't yet published any of that data and so I would say that it's going to take us probably a tad longer on that side, but in terms of excitement in both market segments. We're seeing a lot of excitement in terms of the capabilities that we have and then we're also seeing a lot of interest from these potential collaborators and partners to think about other biomarker.
Speaker Change: Outside of Tau as well and so we're trying to.
Speaker Change: Figure out what our roadmap is going to look like and how we're going to prosecute these sales as we move through the year.
Speaker Change: Great. Thanks, and if I may ask a follow up so the tariffs have been very topical so with the recent tariff announcements by the U S Administration can you talk about your supply chain exposure, especially the China and your flexibility in sourcing locally and just given there is some time before you launch commercially in late 2026 are there any plans to source more of a matter of.
Speaker Change: Factoring locally thank you.
Speaker Change: Hi, there this is and I can definitely give you a little bit more color. There as you might imagine. This is something we're monitoring very closely we haven't yet seen any effects in our ability to support a source our materials and components, we haven't seen any change in our prices.
Speaker Change: That being said I think we have the ability to mitigate this somewhat.
Speaker Change: Cause we source from a variety of locations, including.
Speaker Change: Including in the U S and in the event that we need to.
Speaker Change: Adjust or prioritize as needed our priority will be to make.
Speaker Change: Make sure that we can continue to get what we need with in their spending targets that we anticipated at this point you know the scale of what we are building them, we're not expecting huge.
Speaker Change: Requirements that would be impacted by the tariffs we're seeing today.
Speaker Change: Thanks, I appreciate the answers.
Speaker Change: Standby for our next question.
Matthew: And our next question comes from Matthew <unk> with Goldman Sachs.
Speaker Change: Hi, This is <unk> on for Matt Thanks for taking my questions.
Speaker Change: What are the economics of the targeted protein pretty uniform partnerships and are there any revenues or costs associated with them that we should be expecting.
Speaker Change: Hi, Good morning. This is central so I think that's one.
Speaker Change: We are still looking at a fairly wide range of potential business models for both Tau and other future pretty of forms and those business models can span a panel that we run as a service and it's on a price list all the way through.
Speaker Change: New engagements with partners, where we work together on joint development related to the assay on Tau and then on the other end of the spectrum.
Speaker Change: There are some partners who are interested in thinking about how we could create a whole new assay with their antibodies with a different target and so what we're doing is spending time prioritizing based on our resources at areas, where we want to go.
Speaker Change: How we want to prosecute various potential options within that range and I think that as this technology matures over the next year year and a half two years, what we'll see is we'll see us product tightening more of it and getting it on the price list or that it's more accessible to the.
Speaker Change: So the customer base, but today each of these engagements is being considered as a as a one off as we're learning now what we're trying to prioritize when you think about 2025 is not revenue and gross profit what we're trying to prioritize is working with partners, where we can jointly demonstrate the significant power.
Speaker Change: Of being able to measure complete intact protein protein forums and do it in a way that's scalable and as productive as Rob mentioned in our prepared remarks highly reproducible.
Speaker Change: And so.
Speaker Change: When we think about the types of partnerships that we want to find for example, the one that I mentioned that we will we expect that will sign in the first half it's really about demonstration right now and showing the world what is possible when youre able to measure full party of forms that single molecule resolution and with that there isn't a lot of focus for us on an <unk>.
Speaker Change: Revenue and we don't we don't model revenue right now.
Speaker Change: Okay. That's super helpful. And then you mentioned new developments in the labeling approaches starting last quarter could you talk through how those helped you get probus platform ready and then any additional color you can give us on key development targets you expect to meet over the next several quarters.
Speaker Change: Sure all of this is parag I'll take I'll take this one.
Speaker Change: Our main goal as we mentioned before was too.
Speaker Change: It was really in two areas. One was that we wanted to update the configuration of the platform to better match the probe characteristics that we had.
Speaker Change: The.
Speaker Change: Our progress in Q1 was was very much as expected and were on track there and we started performing basic experiments with the new assay kind of the duration.
Speaker Change: This is the sort of change that that takes a couple of quarters to work through and so as we move through the year, we'll definitely provide updates there, but generally so you can think about what the targets are you should think about expanding the rage of decoding increasingly complex samples.
Speaker Change: Starting with tens of proteins and then the coating small portions of life say, it's fractions of <unk> and ultimately full life seats and ultimately as I as I mentioned in the prepared remarks.
Speaker Change: The change in configuration is really limited to the consumables.
Speaker Change: Great. Thank you.
Speaker Change: One moment for our next question.
Sogou Namby: And our next question comes from Sogou Namby with Guggenheim Securities.
Speaker Change: Hi, guys. Its parmesan perceiver, thanks for taking our questions I guess, just a follow up on partnership interests. What milestones are still left FERC converting partnership interest I guess put another way what are the main factors that you're hearing from potential partners, causing them to remain on the sidelines at this point.
Sogou Namby: So.
Sogou Namby: Let me kind of walk through what the anatomy of any engagement looks like this first step with with partners and potential collaborators, whether they're pharma or academic types of institutions is to really.
Sogou Namby: Explain how our assay works what capabilities, we are able to bring to the table and really evangelize why measuring entire intact proteoform.
Sogou Namby: Is important and necessary and one of the things about any brand new technology or method is that it's it's it takes a little bit of time for people to get the light bulbs turn on because they never ambition that you could measure pretty of forms like we're able to do and so step one of these engagements is really about.
Sogou Namby: Asian once they understand the power of it is investigating where the programs and activities that are going on what are the areas of research where they want to focus and how does that intersect with our desires and then from there it moves more towards the nuts and bolts. How many samples are available what what's the work we're trying to do how much of the <unk>.
Sogou Namby: Cost are they willing to help cover.
Sogou Namby: And those sorts of nuts, and bolts I would say that the conversations you mentioned what keeps them I would say the excitement is universal across all of the customers no. One wants that sit on the sidelines, but everyone has a different pace, that's going on and particularly in pharma.
Sogou Namby: The pace is a little slower right now there is there is a lot of turmoil in the external markets Theres a lot of questions about different therapeutic programs and.
Sogou Namby: There's different capabilities and different areas of focus for each of them and so we're working through navigating that process now what I would say is that.
Sogou Namby: While we enter Q2, we have a number of conversations that are in process.
Sogou Namby: But many of the conversations are still in those earlier exploratory phases as we're trying to figure out who we want to partner with with the limited capacity and bandwidth that we have.
Sogou Namby: With the goal of being able to demonstrate to the world with the greatest clarity.
Sogou Namby: The power of this type of technology is and so that's kind of the phases that we're at now hopefully that's helpful.
Sogou Namby: Great. That's helpful. And then separately do you think theres any blind spot still at this point that could impact commercial launch.
Speaker Change: Perhaps you want to take this one first and then I'll chime in with some comments since the commercial launch is largely due to the home product.
Sogou Namby: Yes.
Sogou Namby: I don't I don't believe so I think we I think we understand the work that's in front of us and we are executing efficiently to get through that work and as I noted before.
Sogou Namby: <unk>.
Sogou Namby: Part of part of that work is a ramp of demonstrating capabilities.
Sogou Namby: And so we look forward to sharing those at a.
Sogou Namby: At the upcoming meetings.
Sogou Namby: Human Proteome organization meeting for example.
Sogou Namby: In Toronto, this year as well as as well as through.
Sogou Namby: Forthcoming publication submissions as well.
Sogou Namby: One other point I'll just me.
Sogou Namby: <unk> mentioned that one of the key reasons that it was so important for us to go through this verification and validation process with our tower assay was because it's the same core platform. It's the same and mobilization of individual molecules.
Sogou Namby: The.
Sogou Namby: The same way that you you flow in reagent and detect and much of the software stack is identical and so.
Sogou Namby: Successfully getting through that and frankly exceeding our targets there gave us a tremendous amount of confidence in the end to end platform.
Speaker Change: Thank you Paul one thing Thats the schedule. The one thing I'll also add is that.
Sogou Namby: When you think about.
Sogou Namby: The factors that are that play into a successful commercial launch having a product that is highly reliable. The cvs are low it does what it's supposed to do.
Sogou Namby: All of those things are critical and then the other thing that's critical is that the products positioned in the marketplace and the customer excitement is there and.
Sogou Namby: On our earnings calls you've heard me talk about in the past that Nautilus is a company that does a lot of customer research spends time with hundreds of customers and really understands the market requirements. How do you think about our product our price point and what types of ramps that we would expect to see.
Sogou Namby: In consumables, we spend a lot of time with customers and in Q1, we embarked upon a study to go and go at about 30 or 35, new customers, who did not know nautilus before into an in depth set of conversations with the goal.
Sogou Namby: Continuing to reinforce our competitive differentiation and our price point as we head into 2026 launch, particularly in light of the fact that given our delay markets have shifted a little bit and what I can tell you from just the very early feedback that I've heard from those conversations is that our.
Sogou Namby: Our value proposition is resonating as strong as it ever has or even stronger.
Sogou Namby: And the thing that has changed since the last time, we went and did a formal round of customer.
Sogou Namby: Interviews and research is that really were telling us.
Sogou Namby: More balanced story now both about broad scale proteomics and about measuring protein forms at scale all within the same platform and so from from what I'm seeing from that data and we're going to continue to work through that through the year here I think that that the products the excitement for our product types.
Sogou Namby: Its capabilities all of that is squarely in the sweet spot for what customers are looking for and I think that that plus getting the right product is going to give us when we get to the broad scale launch is going to give us a blockbuster product, which is what we've expected for a long time.
Sogou Namby: Yes.
Speaker Change: I am showing no further questions at this time. So this does conclude the question and answer session. Thank.
Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
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