Q3 2025 Alpha Teknova Inc Earnings Call
Speaker #3: Fortunately , the
Speaker #3: other
Speaker #3: 75% of our .
Speaker #3: 75% of our taken revenue comes from.
Speaker #3: catalog products
Speaker #3: and custom
Speaker #3: products
Speaker #3: across all
Speaker #3: other
Speaker #3: market segments
Speaker #3: has grown in
Speaker #3: the low double
Speaker #3: for the year to date
Speaker #3: And we are
Speaker #3: seeing an
Speaker #3: uptick in demand for custom reagents in these other segments of the market , such as animal health , life science tools , and diagnostics .
Speaker #3: Taken together , we remain very confident in our strategy and our optimistic for the long term . First , we have a foundational business that is predictable and growing that can support the company until the
Speaker #3: historical growth rates
Speaker #3: .
Speaker #3: we have
Speaker #3: execute
Speaker #3: operationally and
Speaker #3: commercially
Speaker #3: . And
Speaker #3: finally ,
Speaker #3: we
Speaker #3: continue to
Speaker #3: attract and onboard new clinical
Speaker #3: solutions
Speaker #3: which we
Speaker #3: in
Speaker #3: combination with our
Speaker #3: Essentials
Speaker #3: products , will allow us to can achieve a
Speaker #3: sustainable
Speaker #3: 20 to 25% top line
Speaker #3: growth
Speaker #3: as therapies and
Speaker #3: diagnostics
Speaker #3: migrate from research
Speaker #3: to
Speaker #3: commercialization
Speaker #3: .
Speaker #3: will
Speaker #3: now hand 9.6 million the call
Speaker #3: to talk
Speaker #3: financials
Speaker #3: .
Speaker #4: Thanks , Steven , and good afternoon ,
Speaker #4: everyone
Speaker #4: .
Speaker #4: Overall , we delivered
Speaker #4: great in the
Speaker #4: financial results for the third
Speaker #4: quarter
Speaker #4: of 2025 . As Steven
Speaker #4: revenue
Speaker #4: 10.5 million ,
Speaker #4: a 9%
Speaker #4: increase , and
Speaker #4: from
Speaker #4: 9.6 million in the third
Speaker #4: quarter
Speaker #4: of 2020 . For essentials
Speaker #4: . Once again , strong
Speaker #4: sales from was the
Speaker #4: catalog
Speaker #4: portion of our lab
Speaker #4: Essentials products drove our
Speaker #4: revenue
Speaker #4: growth in the
Speaker #4: quarter
Speaker #4: Lab
Speaker #4: essentials of
Speaker #4: products are 2024 . targeted at
Speaker #4: the
Speaker #4: research
Speaker #4: use
Speaker #4: only
Speaker #4: or revenue was Ruo
Speaker #4: market , and include
Speaker #4: catalog and custom
Speaker #4: products
Speaker #4: . Lab
Speaker #4: essentials
Speaker #4: revenue
Speaker #4: was 8.3 million in the third
Speaker #4: quarter
Speaker #4: of 2025 .
Speaker #4: A
Speaker #4: 16% increase
Speaker #4: from
Speaker #4: 7.2 million
Speaker #4: in the third
Speaker #4: quarter
Speaker #4: of
Speaker #4: 2024 . The
Speaker #4: Lab Essentials
Speaker #4: revenue was attributable
Speaker #4: to higher
Speaker #4: average
Speaker #4: revenue per
Speaker #4: customer and
Speaker #4: to a lesser
Speaker #4: extent , a
Speaker #4: larger number of
Speaker #4: customers
Speaker #4: . Clinical
Speaker #4: solutions
Speaker #4: . Products are made
Speaker #4: according to
Speaker #4: good
Speaker #4: Manufacturing
Speaker #4: Practices or GMP
Speaker #4: quality standards , and are
Speaker #4: primarily used by our
Speaker #4: customers as
Speaker #4: components
Speaker #4: or
Speaker #4: inputs
Speaker #4: in
Speaker #4: the
Speaker #4: development and
Speaker #4: manufacture of
Speaker #4: diagnostic and
Speaker #4: therapeutic
Speaker #4: products
Speaker #4: Clinical
Speaker #4: solutions .
Speaker #4: Revenue
Speaker #4: 1.7 million in the third quarter
Speaker #2: Good day and thank you for standing by . Welcome to the Technova . Third quarter 2025 Financial Results conference call . At this time , all participants are in listen
Speaker #4: of 2025 ,
Speaker #4: a
Speaker #4: from
Speaker #4: 2.0 million in the
Speaker #4: third
Speaker #4: of 2024 .
Speaker #4: The
Speaker #4: decrease
Speaker #4: in
Speaker #4: clinical
Speaker #4: solutions
Speaker #2: only mode .
Speaker #4: revenue was attributable to
Speaker #2: speakers presentation , there will be a question and answer session . To ask a question during the for session ,
Speaker #4: average
Speaker #4: revenue per be
Speaker #4: customer
Speaker #4: , partially
Speaker #4: offset by an
Speaker #4: increased number of
Speaker #4: customers
Speaker #2: need to press star one
Speaker #2: one on your 2025 Financial telephone . You will then hear an automated message advising your hand is raised to
Speaker #4: We expect
Speaker #4: revenue per customer to increase over time as a subset of these customers ramp up their purchase volumes as they move through the phases of clinical trials .
Speaker #2: withdraw your question .
Speaker #2: Please conference
Speaker #2: press
Speaker #2: one one again . Please be
Speaker #2: advised that today's
Speaker #4: However , this metric can be affected by the addition of newer clinical solutions or
Speaker #2: conference is
Speaker #2: being speaker's
Speaker #2: recorded . presentation ,
Speaker #2: I would there will be
Speaker #2: now a question
Speaker #2: like to
Speaker #2: over
Speaker #2: first speaker
Speaker #2: today
Speaker #4: GMP catalog customers who typically order less . Just as a
Speaker #2: Vice President
Speaker #2: of star
Speaker #2: Marketing
Speaker #2: . Please go
Speaker #2: ahead
Speaker #4: larger
Speaker #4: average order revenue size
Speaker #3: Thank you . Operator . Welcome to Tech
Speaker #4: compared to lab
Speaker #3: Nova's today's third quarter 2020 earnings conference call . With
Speaker #4: Essentials
Speaker #4: , there can be more
Speaker #4: quarter to
Speaker #4: quarter
Speaker #4: revenue
Speaker #3: today's call are
Speaker #4: lumpiness in this
Speaker #3: Stephen Gunstream
Speaker #3: Technologies President
Speaker #3: and Chief
Speaker #3: Executive
Speaker #3: Officer
Speaker #4: statement highlights
Speaker #3: and your
Speaker #3: Matt Lowell
Speaker #4: gross
Speaker #4: profit for the profit would third quarter of 2025 was 3.2 million , compared to 0.1 million
Speaker #3: , chief
Speaker #3: financial
Speaker #3: officer , who will make
Speaker #3: prepared remarks and then
Speaker #3: take your , Jennifer Henry questions
Speaker #3: . As a reminder , the forward looking
Speaker #3: statements that we make
Speaker #3: during this
Speaker #4: in the third have quarter of 2024 . Gross margin for the third quarter of 2025 was 30.7% , which is up from 0.9% in
Speaker #3: including those
Speaker #3: regarding Nova's
Speaker #3: business goals and
Speaker #3: expectations for
Speaker #3: financial performance of the
Speaker #3: company ,
Speaker #3: are subject to risks and
Speaker #3: uncertainties that
Speaker #3: may President and cause
Speaker #3: actual
Speaker #3: events or results to
Speaker #3: differ
Speaker #3: . Additional
Speaker #4: the third been quarter of 2024 . The increase was primarily
Speaker #3: information concerning
Speaker #3: these officer ,
Speaker #3: risk
Speaker #3: factors make
Speaker #3: is
Speaker #3: included in the
Speaker #3: press
Speaker #3: release . The
Speaker #3: company questions issued earlier
Speaker #4: driven
Speaker #3: today ,
Speaker #4: 2.8 million of
Speaker #3: and they
Speaker #3: are more
Speaker #3: fully looking described
Speaker #4: non-recurring 29.8% , and non-cash
Speaker #3: in the
Speaker #3: company's
Speaker #3: various filings with
Speaker #4: charges
Speaker #3: the call ,
Speaker #3: SEC
Speaker #3: . Today's
Speaker #4: during the third
Speaker #4: quarter of
Speaker #4: 2024 related to the
Speaker #3: comments
Speaker #3: company's
Speaker #4: disposal of expired
Speaker #3: current company , views ,
Speaker #3: which
Speaker #3: could
Speaker #3: change as a result of new risks
Speaker #4: inventory and write
Speaker #3: information ,
Speaker #4: down of excess
Speaker #3: future actual
Speaker #4: inventory , excluding those non-recurring and non-cash charges , the to
Speaker #3: events or other
Speaker #3: factors .
Speaker #3: And the .
Speaker #3: company does
Speaker #3: not information
Speaker #3: obligate or
Speaker #3: commit itself to
Speaker #3: update its
Speaker #4: would
Speaker #3: forward included in the
Speaker #4: have Operating
Speaker #4: been expenses 2.9 million and gross
Speaker #3: looking press
Speaker #3: statements
Speaker #3: , except as
Speaker #3: required issued
Speaker #4: margin would have
Speaker #3: law
Speaker #3: .
Speaker #4: been
Speaker #3: The fully
Speaker #3: company's described
Speaker #3: management
Speaker #4: respectively ,
Speaker #3: that in addition to GAAP
Speaker #4: in the third
Speaker #4: quarter
Speaker #3: results , non-GAAP
Speaker #4: 2024 , the
Speaker #3: financial
Speaker #3: measures
Speaker #3: can
Speaker #3: provide
Speaker #3: meaningful
Speaker #4: improvement in gross
Speaker #3: insight
Speaker #3: when evaluating
Speaker #4: margin
Speaker #4: from
Speaker #3: the views ,
Speaker #3: company's financial
Speaker #3: performance and the
Speaker #3: effectiveness of its business
Speaker #3: strategies
Speaker #3: . We
Speaker #4: by higher
Speaker #3: will therefore use
Speaker #4: revenue
Speaker #3: non-GAAP
Speaker #4: .
Speaker #3: financial measures of
Speaker #3: certain of
Speaker #3: our its
Speaker #3: results during this
Speaker #4: Operating
Speaker #3: call
Speaker #3: .
Speaker #4: for the third quarter
Speaker #3: Reconciliations of GAAP to
Speaker #4: of had
Speaker #4: 2025
Speaker #3: non-GAAP .
Speaker #4: were 7.2 million ,
Speaker #3: financial
Speaker #3: measures
Speaker #3: are management
Speaker #3: included in the press release
Speaker #4: compared
Speaker #4: to 7.5 million for the third
Speaker #3: that we
Speaker #3: issued this
Speaker #3: afternoon ,
Speaker #3: which is
Speaker #3: posted financial
Speaker #3: on both Nova's
Speaker #4: quarter
Speaker #4: of
Speaker #4: 2024 . The
Speaker #3: and the SEC's
Speaker #3: .
Speaker #4: decrease
Speaker #3: non-GAAP
Speaker #3: measures should
Speaker #4: was
Speaker #4: driven by an overall net
Speaker #3: always be effectiveness of its
Speaker #3: considered only as a
Speaker #4: reduction
Speaker #3: supplement strategies to ,
Speaker #4: in general , and
Speaker #4: administrative
Speaker #3: and not
Speaker #3: as a
Speaker #4: spending
Speaker #3: substitute for
Speaker #3: or
Speaker #3: as
Speaker #4: at the
Speaker #3: superior
Speaker #4: end of
Speaker #4: the third 7.6 million , or quarter of 2025 ,
Speaker #3: to
Speaker #3: financial
Speaker #3: measures call prepared in
Speaker #3: accordance with GAAP
Speaker #4: we
Speaker #4: had
Speaker #4: 161 total
Speaker #3: . The
Speaker #3: non-GAAP non-GAAP
Speaker #4: associates
Speaker #3: financial measures in this
Speaker #4: , compared
Speaker #4: to 165 a year
Speaker #3: presentation may differ from measures are
Speaker #3: similarly
Speaker #4: earlier
Speaker #3: named
Speaker #3: non-GAAP
Speaker #3: financial posted on measures
Speaker #4: Net loss
Speaker #3: used by other
Speaker #4: for the third quarter
Speaker #3: companies
Speaker #3: . Please also be advised
Speaker #4: of
Speaker #4: 2025
Speaker #4: was 4.3 million , or
Speaker #3: that the , non-GAAP company
Speaker #3: has posted a Financial
Speaker #3: supplemental
Speaker #4: $0.08 per
Speaker #3: slide deck to accompany
Speaker #4: diluted share , compared to
Speaker #3: today's only as a prepared
Speaker #3: remarks .
Speaker #3: It can be
Speaker #4: a
Speaker #4: net loss
Speaker #3: accessed
Speaker #4: of 7.6 million , or
Speaker #3: on the for
Speaker #3: Investor
Speaker #3: Relations
Speaker #3: section of
Speaker #3: Nova's , financial
Speaker #4: $0.15 per diluted
Speaker #3: website . measures
Speaker #3: And now prepared in
Speaker #4: share ,
Speaker #3: I will turn the
Speaker #4: the third quarter of 2020 . For
Speaker #3: to Stephen
Speaker #3: .
Speaker #3: Thank you may differ
Speaker #4: adjusted
Speaker #3: Jen . from
Speaker #4: EBITDA ,
Speaker #4: Good
Speaker #4: a
Speaker #4: thank you
Speaker #4: non-GAAP
Speaker #4: everyone for joining
Speaker #4: measure was
Speaker #4: us for our
Speaker #4: -1.6 million for the
Speaker #4: third companies
Speaker #4: quarter
Speaker #4: 2020 Please
Speaker #4: third
Speaker #4: quarter
Speaker #4: earnings
Speaker #4: call advised
Speaker #4: 2025 , compared
Speaker #4: . We were
Speaker #4: encouraged
Speaker #4: to
Speaker #4: by our accompany
Speaker #4: third quarter
Speaker #4: results .
Speaker #4: for the
Speaker #4: third
Speaker #4: Revenue remarks .
Speaker #4: increased
Speaker #4: of 2020 . For excluding the
Speaker #4: by
Speaker #4: 9% compared to the same period
Speaker #4: impact of
Speaker #4: last
Speaker #4: year , Tech Nova's
Speaker #4: the
Speaker #4: 2.8 million charge
Speaker #4: making it the fifth
Speaker #4: consecutive
Speaker #4: related to
Speaker #4: inventory
Speaker #4: quarter of year over year
Speaker #4: .
Speaker #4: growth over to
Speaker #4: . That growth
Speaker #4: was .
Speaker #4: Now
Speaker #4: driven by
Speaker #4: for cash flow
Speaker #4: strength in sales of our lab . Essentials products . Revenue from which grew 16% . We also
Speaker #4: and balance sheet
Speaker #4: highlights ,
Speaker #4: capital
Speaker #4: expenditures for the third
Speaker #4: quarter
Speaker #4: of 2025
Speaker #4: were
Speaker #4: 0.4 million , 2025 ,
Speaker #4: extremely well operationally .
Speaker #4: compared to 0.3 million in the third quarter of 2020 .
Speaker #4: progress We
Speaker #4: prepare
Speaker #4: for technology long term , sustainable , above
Speaker #4: free cash
Speaker #4: outflow , a
Speaker #4: market growth for long through
Speaker #4: non-GAAP measure which
Speaker #4: we report as
Speaker #4: cash used in operating
Speaker #4: investments term we've made in distributor management , purchasing , integration and price optimization . We have succeeded once
Speaker #4: activities .
Speaker #4: purchases
Speaker #4: of
Speaker #4: property , plant
Speaker #4: equipment ,
Speaker #4: was 2.4 million
Speaker #4: again in growing , sustainable , revenue , double digits in catalog products , which
Speaker #4: for the , and
Speaker #4: third
Speaker #4: of 2025 , which was the same as the third quarter of 2024 . Turning to the balance sheet , as of September 30th , 2025 , we had 22.1 million in cash .
Speaker #4: majority of our lab above Essentials revenue compared to the same period last year . We have also increased and
Speaker #4: diversified our clinical market
Speaker #4: solutions
Speaker #4: customer base ,
Speaker #4: which we
Speaker #4: believe in
Speaker #4: translate to
Speaker #4: significant , integration revenue growth
Speaker #4: Cash equivalents and short term investments and 13.2 million in total borrowings . Now , for our outlook , we are reiterating 2025 total revenue guidance of 39 million to 42 million , based on persistent softness in demand for
Speaker #4: as
Speaker #4: these optimization .
Speaker #4: therapies and
Speaker #4: diagnostics
Speaker #4: move once again
Speaker #4: towards
Speaker #4: commercialization
Speaker #4: .
Speaker #4: And catalog the next
Speaker #4: 2 to 3 years
Speaker #4: .
Speaker #4: Operationally , we
Speaker #4: execute
Speaker #4: extremely
Speaker #4: well
Speaker #4: . Key
Speaker #4: drive
Speaker #4: operating
Speaker #4: and
Speaker #4: reduce
Speaker #4: costs ,
Speaker #4: such as
Speaker #4: moving to
Speaker #4: electronic
Speaker #4: batch records
Speaker #4: , automated high
Speaker #4: our for our
Speaker #4: throughput revenue
Speaker #4: dispensing
Speaker #4: solutions .
Speaker #4: lines , and
Speaker #4: adding
Speaker #4: larger and
Speaker #4: batch size
Speaker #4: customers
Speaker #4: in
Speaker #4: capabilities towards are on track and
Speaker #4: particular ,
Speaker #4: expected to be
Speaker #4: finish
Speaker #4: operational in
Speaker #4: slightly
Speaker #4: below the
Speaker #4: 2026 . We
Speaker #4: midpoint of
Speaker #4: that continues to
Speaker #4: range
Speaker #4: .
Speaker #4: are . already seeing
Speaker #4: the
Speaker #4: results from
Speaker #4: investments through
Speaker #4: from sales
Speaker #4: of our from
Speaker #4: metrics such as on time
Speaker #4: catalog products , which
Speaker #4: represents the
Speaker #4: delivery ,
Speaker #4: majority of our
Speaker #4: which allow us to further
Speaker #4: differentiate
Speaker #4: essentials and
Speaker #4: Test Nova from other
Speaker #4: clinical solutions revenue
Speaker #4: reagent suppliers
Speaker #4: in the throughput
Speaker #4: marketplace
Speaker #4: . The progress made operationally
Speaker #4: , was up at a of mid-teens growth rate in the third quarter of 2025 . As spending on discovery work
Speaker #4: over the
Speaker #4: past
Speaker #4: couple of and years
Speaker #4: given us more
Speaker #4: confidence in our ability to
Speaker #4: continues to clinical be robust in
Speaker #4: scale in
Speaker #4: technology 2026 .
Speaker #4: to more
Speaker #4: than
Speaker #4: $200 million in annualized
Speaker #4: pockets of the
Speaker #4: market
Speaker #4: .
Speaker #4: revenue without through
Speaker #4: significant additional
Speaker #4: hand , growth was minimal from custom
Speaker #4: capital metrics
Speaker #4: investments .
Speaker #4: products , which .
Speaker #4: We also
Speaker #4: remain
Speaker #4: active in pursuing
Speaker #4: modest portion of lab
Speaker #4: in
Speaker #4: acquisitions and from other
Speaker #4: collaborations to bolster
Speaker #4: the large majority
Speaker #4: of
Speaker #4: our capabilities , reduce
Speaker #4: clinical
Speaker #4: our time to
Speaker #4: profitability ,
Speaker #4: . As the macro
Speaker #4: and
Speaker #4: accelerate
Speaker #4: remains favorable for
Speaker #4: top past couple line
Speaker #4: growth
Speaker #4: .
Speaker #4: early stage
Speaker #4: small to
Speaker #4: Now , ability
Speaker #4: I'd
Speaker #4: biopharma
Speaker #4: like to turn scale my
Speaker #4: customers
Speaker #4: attention Technova
Speaker #4: to the to more broader
Speaker #4: market .
Speaker #4: and for their
Speaker #4: clinical work in
Speaker #4: As a $200 million in
Speaker #4: reminder , we annualized
Speaker #4: do not have
Speaker #4: material
Speaker #4: exposure to the
Speaker #4: . As
Speaker #4: geopolitical
Speaker #4: to next
Speaker #4: environment ,
Speaker #4: year , we
Speaker #4: given that
Speaker #4: modest growth in
Speaker #4: are
Speaker #4: predominantly
Speaker #4: biopharma
Speaker #4: in the United
Speaker #4: States ,
Speaker #4: only
Speaker #4: representing about
Speaker #4: about $1 million annually of our
Speaker #4: 25% of our total During the
Speaker #4: raw capabilities , materials ,
Speaker #4: revenue
Speaker #4: we
Speaker #4: estimate , are
Speaker #4: and low double
Speaker #4: imported
Speaker #4: digit
Speaker #4: in accelerate
Speaker #4: in the
Speaker #4: remaining
Speaker #4: less
Speaker #4: than 4% of 2024 . Revenue
Speaker #4: 75% of total
Speaker #4: revenue ,
Speaker #4: revenue , which is the not as
Speaker #4: was . directly
Speaker #4: attributable
Speaker #4: impacted by the
Speaker #4: government
Speaker #4: weak biotech funding
Speaker #4: research
Speaker #4: institutes
Speaker #4: environment
Speaker #4: and academic institutions . Nonetheless , we do have exposure to changes in biotech funding levels because approximately 25% of our total revenue is derived from purchases of custom products by biopharma customers , most of which are supporting therapies and preclinical or early stage clinical trials .
Speaker #4: . Gross
Speaker #4: margin was
Speaker #4: up over the
Speaker #4: prior
Speaker #4: year
Speaker #4: quarter , and down
Speaker #4: sequentially business
Speaker #4: as , we still
Speaker #4: we
Speaker #4: time
Speaker #4: . During the
Speaker #4: cost
Speaker #4: that normally
Speaker #4: skewed favorably . Whereas this quarter , the effect was more balanced
Speaker #4: , our 2025 remains
Speaker #4: gross margins are very
Speaker #4: sensitive to
Speaker #4: catalog products purchased by customers in this segment remains steady and growing in 2025 , we have seen continued delays in larger purchases of custom products .
Speaker #4: to the size of our business . We still believe that over longer periods of time
Speaker #4: , approximately believe we 70% of incremental revenue will flow through
Speaker #4: profit .
Speaker #4: Our gross
Speaker #4: margin target for fiscal year
Speaker #4: 2025 remains in the
Speaker #4: low annualized 30s .
Speaker #4: the biotech funding environment or
Speaker #4: Although we ended the third quarter below target spending levels , partly due to timing considerations . We continue to expect operating expenses of at least 8 million in the fourth quarter , allowing us to moderately increase our investment in
Speaker #4: trials of the
Speaker #4: expect only
Speaker #4: modest in 2025 ,
Speaker #4: improvement . In this end
Speaker #4: market . In continued
Speaker #4: 2026 .
Speaker #4: Fortunately , the .
Speaker #4: other
Speaker #4: 75% of our
Speaker #4: revenue from
Speaker #4: sales of
Speaker #4: catalog products
Speaker #4: sales and marketing
Speaker #4: and
Speaker #4: and custom we see products
Speaker #4: year . Positioning ourselves for the market's broader recovery at these spending levels , we continue to believe we will become adjusted EBITDA positive in the range
Speaker #4: across all
Speaker #4: other market
Speaker #4: has grown in the low
Speaker #4: double
Speaker #4: for the
Speaker #4: year to advancement through
Speaker #4: date period .
Speaker #4: And we are seeing
Speaker #4: an uptick
Speaker #4: in demand for
Speaker #4: custom
Speaker #4: in these
Speaker #4: other
Speaker #4: segments of .
Speaker #4: the market market , such as animal
Speaker #4: health , in life science
Speaker #4: of 50 to 55 million in expect free annualized
Speaker #4: tools , 2026 . and
Speaker #4: diagnostics
Speaker #4: together , we
Speaker #4: remain sales of very
Speaker #4: confident in our
Speaker #4: The
Speaker #4: company
Speaker #4: strategy and
Speaker #4: continues to
Speaker #4: expect free
Speaker #4: our
Speaker #4: optimistic for
Speaker #4: cash outflow
Speaker #4: the long
Speaker #4: term
Speaker #4: of less than
Speaker #4: .
Speaker #4: 12 million for the
Speaker #4: First , we
Speaker #4: have a digits
Speaker #4: full
Speaker #4: year 2025 , as we
Speaker #4: foundational business that
Speaker #4: is period .
Speaker #4: predictable and
Speaker #4: growing , that
Speaker #4: support the company until the biopharma market
Speaker #4: support the company until the biopharma market returns biopharma to historical growth rates
Speaker #4: . Second , market we have demonstrated our ability to execute operationally
Speaker #4: and returns commercially and finally , we continue to attract and onboard new clinical solutions customers , which we believe in combination with our lab Essentials products , will allow us to achieve
Speaker #4: .
Speaker #3: Thanks ,
Speaker #3: Matt this
Speaker #3: . We believe
Speaker #4: a sustainable to
Speaker #3: term
Speaker #3: outlook for our end
Speaker #4: 20 to 25% top line
Speaker #3: markets remains
Speaker #3: positive , and
Speaker #4: growth as
Speaker #3: committed to
Speaker #3: helping our press
Speaker #4: therapies Second ,
Speaker #3: customers accelerate the
Speaker #4: and
Speaker #4: diagnostics demonstrated our migrate
Speaker #3: introduction
Speaker #4: from ability to
Speaker #4: research to
Speaker #3: of
Speaker #3: therapies
Speaker #4: commercialization .
Speaker #3: , diagnostics
Speaker #4: I will now hand the
Speaker #3: products that
Speaker #3: improve human
Speaker #4: call over to Matt
Speaker #3: health
Speaker #4: to talk
Speaker #3: . We
Speaker #4: through the
Speaker #4: financials
Speaker #3: will now take your
Speaker #4: .
Speaker #3: .
Speaker #5: Thanks ,
Speaker #5: Steven , and
Speaker #5: good customers ,
Speaker #5: afternoon ,
Speaker #5: everyone believe
Speaker #5: .
Speaker #5: Overall , we delivered
Speaker #1: At this time , we will conduct the question and answer session . As a reminder to ask a question , you will need to press star one one on your telephone and wait for your name to be announced .
Speaker #5: great financial
Speaker #5: great
Speaker #5: results for the third quarter of 2025 .
Speaker #5: As Steven
Speaker #5: noted ,
Speaker #5: revenue
Speaker #5: was
Speaker #5: 10.5 million ,
Speaker #5: a
Speaker #5: 9%
Speaker #5: increase
Speaker #5: from
Speaker #1: To withdraw your question , please
Speaker #5: in the
Speaker #5: third over to
Speaker #5: quarter Matt
Speaker #1: press star
Speaker #5: of 2020 . For .
Speaker #1: one one again . Please
Speaker #1: stand by while
Speaker #5: strong sales from the catalog through the
Speaker #1: we compile the
Speaker #1: roster .
Speaker #5: our
Speaker #5: Lab Essentials
Speaker #5: products drove our
Speaker #5: revenue growth
Speaker #5: quarter
Speaker #5: .
Speaker #5: Lab essentials products
Speaker #5: are targeted at
Speaker #5: the noted , research
Speaker #5: use only or
Speaker #5: Ruo
Speaker #5: market
Speaker #5: include both catalog and custom
Speaker #5: products
Speaker #1: The
Speaker #1: first question
Speaker #1: comes
Speaker #5: . Lab
Speaker #1: from the
Speaker #1: line
Speaker #5: revenue
Speaker #1: of
Speaker #5: 8.3 million
Speaker #1: Matt
Speaker #1: McIntosh
Speaker #5: in the third quarter
Speaker #5: of 2025 .
Speaker #1: of
Speaker #1: Inc. .
Speaker #5: A
Speaker #5: 16%
Speaker #1: Your
Speaker #1: line is conversations now
Speaker #5: increase
Speaker #1: open
Speaker #5: from 7.2 million in the third
Speaker #1: .
Speaker #5: Hey ,
Speaker #5: good
Speaker #5: afternoon
Speaker #5: quarter .
Speaker #5: . Appreciate you taking my
Speaker #5: The
Speaker #5: questions .
Speaker #5: increase
Speaker #5: Maybe just to
Speaker #5: in Lab
Speaker #5: Essentials
Speaker #5: start .
Speaker #5: attributable to
Speaker #5: Just given
Speaker #5: higher
Speaker #5: recent
Speaker #5: average both revenue per
Speaker #5: around
Speaker #5: customer and
Speaker #5: MFN ,
Speaker #5: tariffs and just
Speaker #5: to a lesser
Speaker #5: extent , a
Speaker #5: announcements around
Speaker #5: larger number
Speaker #5: of customers
Speaker #5: Onshoring
Speaker #5: capacity and pharma
Speaker #5: production
Speaker #5: . Clinical
Speaker #5: solutions
Speaker #5: . Products are made
Speaker #5: conversations trended
Speaker #5: according to good
Speaker #5: Manufacturing
Speaker #5: thus far
Speaker #5: into the
Speaker #5: Practices
Speaker #5: or
Speaker #5: GMP
Speaker #5: year
Speaker #5: ?
Speaker #5: quality
Speaker #5: standards , and are
Speaker #3: Yeah .
Speaker #3: Thanks, ramping up, Matt.
Speaker #5: primarily used by
Speaker #5: our increase in
Speaker #5: customers as
Speaker #3: I
Speaker #3: would
Speaker #5: components or
Speaker #3: say , you
Speaker #5: inputs in
Speaker #3: know ,
Speaker #5: the
Speaker #5: development and
Speaker #3: like the idea
Speaker #5: manufacture of
Speaker #3: of these leading
Speaker #3: indicators , whether it's
Speaker #5: diagnostic and
Speaker #3: biotech
Speaker #3: funding
Speaker #5: therapeutic
Speaker #3: or the MFN
Speaker #5: products . Clinical
Speaker #3: but we're not yet
Speaker #5: solutions
Speaker #5: revenue
Speaker #3: impact
Speaker #5: was
Speaker #3: from the impact customers . So I
Speaker #5: 1.7 million
Speaker #3: think there's
Speaker #5: in the third
Speaker #3: optimism
Speaker #5: quarter
Speaker #5: of 2025 ,
Speaker #3: across the
Speaker #3: .
Speaker #3: But time , the
Speaker #5: a 13% decrease
Speaker #3: actual
Speaker #3: actions of
Speaker #3: maybe
Speaker #3: purchasing nice more , ramping up
Speaker #5: from
Speaker #5: 2.0 million in the third quarter
Speaker #3: purchases , we have
Speaker #5: of
Speaker #5: 2024 .
Speaker #3: why ,
Speaker #3: you
Speaker #3: know , we've been here the
Speaker #5: The
Speaker #5: decrease in
Speaker #3: and we
Speaker #5: clinical
Speaker #3: sure that
Speaker #5: solutions
Speaker #3: we're
Speaker #3: cautious
Speaker #5: revenue was
Speaker #3: . And
Speaker #5: attributable to lower
Speaker #3: seeing that
Speaker #3: when are still these things start to
Speaker #5: average revenue
Speaker #3: happen , if they're
Speaker #5: per customer
Speaker #3: sustained for
Speaker #5: , partially
Speaker #3: an are extended
Speaker #3: period of time
Speaker #5: offset .
Speaker #5: by an
Speaker #5: increased number
Speaker #3: , we believe it'll
Speaker #3: impact this sort of the emergent
Speaker #5: of
Speaker #5: customers was
Speaker #3: therapy
Speaker #3: side . But
Speaker #5: . We
Speaker #5: expect revenue per customer to
Speaker #3: this point
Speaker #3: in moment . time , I
Speaker #5: increase over
Speaker #3: you know , we're seeing
Speaker #5: time as 13% decrease a subset of these
Speaker #3: some nice
Speaker #3: growth in the
Speaker #3: large pretty
Speaker #5: customers ramp
Speaker #5: up
Speaker #3: We're actually
Speaker #3: seeing some
Speaker #5: their
Speaker #5: purchase quarter volumes as they
Speaker #3: in some of the emerging therapeutic companies that
Speaker #5: move through
Speaker #5: the
Speaker #5: phases
Speaker #5: of
Speaker #3: have been
Speaker #5: clinical
Speaker #3: purchased
Speaker #5: trials
Speaker #3: by larger companies . But those that are
Speaker #5: . However , this metric
Speaker #3: constrained
Speaker #5: can lower
Speaker #3: by
Speaker #5: affected by the
Speaker #5: addition of newer
Speaker #3: are
Speaker #3: operating
Speaker #5: clinical
Speaker #3: in a way that
Speaker #5: solutions or
Speaker #3: they're
Speaker #5: GMP
Speaker #5: catalog customers who typically
Speaker #3: rationalizing
Speaker #3: pipeline or
Speaker #5: order .
Speaker #3: slowing Is there
Speaker #5: less
Speaker #3: things any down at the
Speaker #3: moment .
Speaker #3: So
Speaker #5: . Just as a
Speaker #5: reminder , reminder , due to the
Speaker #3: At this point in time, there...
Speaker #3: has been
Speaker #5: larger average due to the order size in clinical solutions compared to lab Essentials , there can be more quarter to quarter
Speaker #3: conversations about
Speaker #3: ramp
Speaker #3: spend
Speaker #3: their
Speaker #5: Fair
Speaker #5: enough .
Speaker #5: lumpiness in this category
Speaker #5: I'd also
Speaker #5: like to get a little bit of an
Speaker #5: update
Speaker #5: on the
Speaker #5: Ruo plus
Speaker #5: onto income in highlights gross profit for
Speaker #5: It's been ,
Speaker #5: you are not
Speaker #5: know , quite ready a
Speaker #5: little over a year since
Speaker #5: the third quarter clinical of 2025 was 3.2 million , compared
Speaker #5: the third quarter clinical of 2025 was 3.2 million , compared to 0.1 million in solutions the third quarter
Speaker #5: put into
Speaker #5: Is there
Speaker #5: on
Speaker #5: efforts are trending ? There
Speaker #5: ?
Speaker #3: Yeah , their it's an important part of our
Speaker #3: portfolio and it
Speaker #3: fills a really
Speaker #5: of 2024 .
Speaker #3: nice gap for us
Speaker #5: Gross
Speaker #5: margin for the third
Speaker #3: lot of
Speaker #5: quarter
Speaker #3: effort and
Speaker #5: of
Speaker #5: 2025
Speaker #3: investment
Speaker #3: into
Speaker #5: was 30.7% , which is up from 0.9% in the third
Speaker #3: this new
Speaker #3: facility
Speaker #3: . We have facility , but a lot of
Speaker #3: customers that want to use
Speaker #3: the new facility , but are not quite ready
Speaker #3: for GMP .
Speaker #5: quarter of 2024 . The increase was primarily driven by 2.8 million of non-recurring and non-cash charges during the third quarter of 2024 related to the disposal of expired inventory and write down
Speaker #5: quarter of 2024 . The increase was primarily driven by 2.8 million of non-recurring and non-cash charges during the third quarter of 2024 related to the disposal of expired inventory and category of excess inventory onto
Speaker #3: a great landing spot for them where they can get their products made in the facility . They get a lot more flexibility in their formulations .
Speaker #3: They get sort of an improved quality that is very similar to GMP , but not quite all the way to GMP .
Speaker #3: not the exact same as GMP , right ? So for us , it allows us to get a little bit of a price premium for using that facility , but some actually
Speaker #5: , excluding income
Speaker #5: those non-recurring and non-cash charges , the gross
Speaker #5: 2.9 million and gross margin
Speaker #3: controls
Speaker #5: would
Speaker #5: have been by
Speaker #3: around
Speaker #3: the the
Speaker #3: changes they want to make and get their products to them sooner . So this is a really nice landing spot .
Speaker #5: respectively , in the
Speaker #5: third
Speaker #5: quarter
Speaker #5: 2024 , the
Speaker #3: We're seeing customers come in here. Those will sit in. Thank you.
Speaker #5: improvement in gross margin
Speaker #5: from
Speaker #5: 29.8%
Speaker #3: lab essentials business because it's part of their research . Use only . And
Speaker #5: 30.7% was
Speaker #5: driven gross primarily by higher
Speaker #3: obviously to migrate them to GMP . And we see .
Speaker #5: revenue profit .
Speaker #3: customers
Speaker #3: sitting in that , in
Speaker #5: for the third quarter
Speaker #3: that pathway
Speaker #5: of
Speaker #5: 2025
Speaker #3: right now
Speaker #3: .
Speaker #5: were 7.2 million , 29.8% ,
Speaker #5: great to hear . I
Speaker #5: compared
Speaker #5: to 7.5 million
Speaker #5: appreciate the
Speaker #5: context . I'll leave it
Speaker #5: there
Speaker #5: .
Speaker #5: for the third
Speaker #5: quarter
Speaker #5: of
Speaker #5: 2024 . The
Speaker #5: decrease
Speaker #5: was 29.8% to driven by an
Speaker #5: overall net 30.7% was
Speaker #1: Thank you
Speaker #1: .
Speaker #5: reduction in driven general ,
Speaker #1: Our next
Speaker #5: and primarily
Speaker #5: administrative
Speaker #1: call
Speaker #5: spending at the
Speaker #1: comes
Speaker #1: from the
Speaker #1: line of
Speaker #1: Brendan
Speaker #1: Smith
Speaker #5: end of the
Speaker #5: third quarter of
Speaker #1: of TD
Speaker #5: 2025 , expenses we
Speaker #1: Cohen .
Speaker #1: Your help drive line is
Speaker #5: 161 total
Speaker #1: now open
Speaker #5: associates
Speaker #1: .
Speaker #5: to
Speaker #5: 165 a year earlier
Speaker #6: Thanks , guys for taking the
Speaker #6: Appreciate all the color
Speaker #6: on actually there are any
Speaker #6: the
Speaker #6: funding
Speaker #5: . Net loss
Speaker #6: , environment
Speaker #5: for the third quarter
Speaker #6: impact
Speaker #6: or that you're
Speaker #6: potential seeing impact into next
Speaker #5: of
Speaker #5: 2025
Speaker #6: year .
Speaker #5: was 4.3 million ,
Speaker #6: Actually just
Speaker #6: wondering if you
Speaker #6: could maybe
Speaker #5: or
Speaker #5: -$0.08 per diluted
Speaker #6: really any more
Speaker #6: color there on actually the
Speaker #5: share ,
Speaker #5: compared to
Speaker #6: expected Yeah .
Speaker #6: product
Speaker #5: a net
Speaker #5: loss
Speaker #6: could kind of come
Speaker #5: of
Speaker #6: in some of
Speaker #6: these different
Speaker #6: scenarios
Speaker #5: $0.15 per diluted
Speaker #6: that compensation . You're talking
Speaker #5: share ,
Speaker #5: for the
Speaker #6: about for the
Speaker #5: third
Speaker #5: quarter
Speaker #6: possibility of a
Speaker #5: of 2020 . For
Speaker #6: more
Speaker #6: protracted biotech
Speaker #6: slowdown
Speaker #5: adjusted EBITDA
Speaker #6: . It's
Speaker #6: wondering if there are any specific
Speaker #5: , a non-GAAP
Speaker #5: measure was .
Speaker #6: that
Speaker #5: negative one
Speaker #6: portfolio that
Speaker #5: point
Speaker #6: seeing particular
Speaker #5: 6 million for the
Speaker #6: interest in and what
Speaker #5: third quarter
Speaker #5: of 2025 ,
Speaker #6: for those into
Speaker #6: next year .
Speaker #5: compared to
Speaker #5: -2.2 million the
Speaker #3: Yeah . So ,
Speaker #3: Brendan , if you're
Speaker #5: third quarter
Speaker #5: of 2024 .
Speaker #5: Excluding the impact of the
Speaker #3: we typically
Speaker #3: the custom
Speaker #3: biopharma , is
Speaker #5: 2.8 million charge related
Speaker #3: that correct
Speaker #5: to
Speaker #5: inventory for
Speaker #3: ? And how we
Speaker #3: see that
Speaker #5: . Now , for
Speaker #3: changing
Speaker #3: time
Speaker #3: .
Speaker #3: ?
Speaker #6: More . Yeah . More
Speaker #5: cash flow and
Speaker #5: balance sheet
Speaker #6: into
Speaker #6: next year you're
Speaker #5: highlights ,
Speaker #5: capital
Speaker #6: if after is
Speaker #6: you're if you're sort of , you
Speaker #5: expenditures for the third quarter
Speaker #6: confident
Speaker #6: that
Speaker #5: of
Speaker #6: the
Speaker #5: 2025
Speaker #6: rev mix that
Speaker #5: were
Speaker #6: you're seeing now could kind
Speaker #5: 0.4 million , of
Speaker #6: of continued compensate for
Speaker #5: compared
Speaker #5: to 0.3 million in the third
Speaker #6: any
Speaker #6: potentially
Speaker #6: biotech funding slowdown , just kind
Speaker #5: quarter -2.2 million
Speaker #5: of
Speaker #5: 2020 .
Speaker #6: wondering if there
Speaker #5: For quarter
Speaker #6: are specific
Speaker #6: products within
Speaker #6: there
Speaker #5: free cash
Speaker #6: that you're next .
Speaker #5: outflow , a
Speaker #6: you know , seeing
Speaker #5: non-GAAP
Speaker #5: measure which
Speaker #6: special say interest into
Speaker #5: we report
Speaker #6: next year that
Speaker #5: as cash used in operating
Speaker #6: could help
Speaker #6: drive that
Speaker #5: activities .
Speaker #6: ?
Speaker #3: maybe I'll
Speaker #5: Plus
Speaker #5: purchases
Speaker #3: think what
Speaker #5: of property ,
Speaker #5: plant and
Speaker #3: of , you know ,
Speaker #5: equipment ,
Speaker #3: obviously entirely there
Speaker #5: was
Speaker #5: 2.4 million
Speaker #3: could
Speaker #3: be and
Speaker #3: expect some ,
Speaker #5: third quarter of
Speaker #3: continued
Speaker #5: which was the
Speaker #3: conservation
Speaker #5: same as the third quarter of
Speaker #3: of media capital
Speaker #3: and the
Speaker #5: 2024 . For Turning to
Speaker #3: biotech environment ,
Speaker #3: particularly we're around
Speaker #3: emerging markets over
Speaker #3: next . You know , I
Speaker #5: the balance sheet , as
Speaker #3: don't actually ,
Speaker #5: of
Speaker #5: September 30th ,
Speaker #3: 6 to 12 months .
Speaker #5: 2025 ,
Speaker #3: We're very
Speaker #3: fortunate
Speaker #3: that see a 75% of our business is growing
Speaker #5: we
Speaker #5: had
Speaker #5: 22.1 million in Plus cash .
Speaker #3: double increase digits .
Speaker #5: Cash
Speaker #3: And we're
Speaker #5: equivalents and
Speaker #3: actually interest seeing
Speaker #3: it
Speaker #5: short
Speaker #5: term and
Speaker #5: investments
Speaker #3: entirely across the board ,
Speaker #3: across every market
Speaker #5: 13.2 million in
Speaker #3: segment . And where
Speaker #3: actually all three of our
Speaker #3: primary
Speaker #5: total borrowings
Speaker #3: product
Speaker #3: lines have agar
Speaker #5: . Now , for our outlook , we are reiterating 2025 total revenue guidance of 39 million to 42 million , based on persistent quarter
Speaker #3: plates ,
Speaker #3: cell culture ,
Speaker #3: media
Speaker #3: and custom
Speaker #3: buffers . So
Speaker #3: we're
Speaker #3: we're
Speaker #3: pretty
Speaker #3: about
Speaker #3: that side of
Speaker #3: and how well
Speaker #3: we're increased performing
Speaker #3: there . We do
Speaker #3: see a
Speaker #3: increase in
Speaker #3: on actually the tools and
Speaker #5: clinical
Speaker #5: solutions clinical . Products from biopharma customers in particular , we now expect to finish slightly below the midpoint of that range . Revenue from
Speaker #3: we
Speaker #3: supply that , you a
Speaker #3: Number of products, know both for the...
Speaker #3: that custom
Speaker #3: into before .
Speaker #3: clinical
Speaker #3: trials
Speaker #3: . And so , you know , the
Speaker #3: combination of of having
Speaker #5: our catalog products , which represents the majority of our lab
Speaker #3: this
Speaker #3: sort
Speaker #3: of
Speaker #3: clinical
Speaker #3: customers
Speaker #3: right
Speaker #5: essentials and a Products from small portion of clinical Solutions revenue
Speaker #3: now as
Speaker #3: we go through
Speaker #3: this
Speaker #3: period really good
Speaker #3: predictable
Speaker #3: baseline
Speaker #5: , was biopharma
Speaker #5: up at a mid-teens . Growth
Speaker #3: that that is in the double
Speaker #5: rate
Speaker #3: digits .
Speaker #5: in the
Speaker #5: third
Speaker #5: quarter to of 2020 .
Speaker #3: know
Speaker #5: Five , as
Speaker #3: , that is
Speaker #3: very
Speaker #5: spending on
Speaker #3: similar
Speaker #3: to the business
Speaker #5: discovery work
Speaker #3: here
Speaker #3: We made a lot of these investments that grew
Speaker #5: be
Speaker #5: robust in certain pockets of the
Speaker #3: between 2009 and 2019 ,
Speaker #5: market . On the other hand , growth
Speaker #3: 12%. You know, we're back.
Speaker #5: was Revenue minimal
Speaker #3: to that level . If not higher at times . So we feel like we're
Speaker #5: custom
Speaker #5: products , which
Speaker #5: represents
Speaker #5: a
Speaker #5: modest lab
Speaker #5: portion of
Speaker #5: lab
Speaker #5: essentials , and the large majority portion of
Speaker #3: in a
Speaker #3: really good spot to , to to let the
Speaker #3: rest of .
Speaker #3: strategy play out on the therapeutic side . And we're
Speaker #5: solutions revenue . As the
Speaker #5: macro environment certain remains favorable for early stage small to mid-sized biopharma customers
Speaker #3: working on bringing
Speaker #3: on more of
Speaker #3: these customers in these other market
Speaker #3: segments
Speaker #3: .
Speaker #5: and for their
Speaker #5: clinical work in
Speaker #6: Got it . Makes sense . Thanks ,
Speaker #5: particular
Speaker #6: guys
Speaker #6: .
Speaker #5: As we look ahead to
Speaker #5: next represents year , we expect modest growth in
Speaker #5: custom a
Speaker #5: biopharma
Speaker #1: Thank you
Speaker #5: products essentials , and
Speaker #5: representing
Speaker #5: about
Speaker #5: 25% of our
Speaker #1: Our next
Speaker #1: question
Speaker #5: total solutions
Speaker #1: comes growth
Speaker #5: revenue revenue and low
Speaker #1: from
Speaker #5: double digit
Speaker #5: growth in the environment
Speaker #5: remaining
Speaker #1: with
Speaker #5: 75% of total
Speaker #1: William
Speaker #5: revenue , which
Speaker #1: Your line is now
Speaker #5: is not as mid-sized
Speaker #1: open
Speaker #5: impacted by the
Speaker #1: .
Speaker #5: weak biotech
Speaker #5: funding
Speaker #5: environment
Speaker #7: Good
Speaker #7: afternoon
Speaker #5: . Gross particular margin
Speaker #5: was
Speaker #5: up we look
Speaker #7: Your
Speaker #5: over the ahead
Speaker #7: on 2026 .
Speaker #5: prior year
Speaker #5: quarter and
Speaker #5: down expect
Speaker #5: sequentially as
Speaker #7: You know ,
Speaker #5: we custom
Speaker #5: explained
Speaker #7: revenue
Speaker #5: at the products time .
Speaker #7: growing , well , a could help double digits
Speaker #7: and modest growth in 25% , that seems to suggest
Speaker #5: second quarter , several
Speaker #5: cost
Speaker #5: categories that
Speaker #7: something that is around
Speaker #5: normally
Speaker #5: fluctuate skewed
Speaker #7: point . So I
Speaker #5: favorably
Speaker #7: guess
Speaker #5: . Whereas this quarter ,
Speaker #5: effect was more
Speaker #7: is that
Speaker #7: math
Speaker #7: right ? And Thanks ,
Speaker #5: balanced
Speaker #7: then on the on the clinical
Speaker #5: , our
Speaker #5: gross margins are very
Speaker #7: solution side
Speaker #5: sensitive to the effect of
Speaker #7: , you've called out a
Speaker #7: times this year the
Speaker #5: these
Speaker #5: fluctuations
Speaker #7: growth in the be number
Speaker #5: due to the
Speaker #7: of
Speaker #5: size of our
Speaker #7: I know
Speaker #7: that's a with metric you update annually ,
Speaker #5: believe that
Speaker #7: but
Speaker #5: over longer
Speaker #7: maybe
Speaker #5: periods
Speaker #5: of the
Speaker #7: if you
Speaker #5: time
Speaker #7: could help
Speaker #7: is
Speaker #5: ,
Speaker #5: approximately second quarter ,
Speaker #7: tracking new
Speaker #5: 70% of several
Speaker #7: customer earnings
Speaker #7: acquisition
Speaker #5: incremental
Speaker #5: revenue will categories flow
Speaker #7: to
Speaker #5: through to gross
Speaker #7: perhaps years
Speaker #5: profit . fluctuate
Speaker #7: and your
Speaker #7: own
Speaker #5: Our gross margin target for fiscal year
Speaker #7: expectations this
Speaker #4: Yeah .
Speaker #4: Thanks ,
Speaker #4: Matt
Speaker #5: in the low
Speaker #5: 30s .
Speaker #4: . Yeah , obviously , you
Speaker #4: know , it's a little
Speaker #4: bit early to
Speaker #5: Although we ended the third quarter below target spending levels , partly due to timing considerations , we continue to expect operating expenses of at least 8 million in the fourth quarter , allowing us to
Speaker #4: be
Speaker #4: really
Speaker #4: with
Speaker #4: precision
Speaker #4: on the 2026 . And we'll
Speaker #4: certainly do
Speaker #4: that in our rest
Speaker #4: next basically call when we report year end
Speaker #4: earnings
Speaker #4: But thought it
Speaker #4: might be
Speaker #4: useful to provide
Speaker #4: some
Speaker #5: moderately increase our investment in sales and marketing compared to last year . Positioning ourselves for the market's broader
Speaker #4: high level
Speaker #4: thoughts about where
Speaker #4: we see
Speaker #4: things been today .
Speaker #4: And
Speaker #4: you're right ,
Speaker #4: kind of in couple of
Speaker #4: these we've kind of
Speaker #4: focused
Speaker #4: on
Speaker #4: two components of the business .
Speaker #5: recovery at these spending the effect of these
Speaker #4: The 25% we've been talking
Speaker #4: about in custom
Speaker #4: biopharma and
Speaker #5: continue to fluctuations due
Speaker #4: the
Speaker #5: will
Speaker #5: become to
Speaker #4: rest , seeing basically
Speaker #5: adjusted gross
Speaker #5: EBITDA positive in the range
Speaker #4: . And
Speaker #4: as
Speaker #5: of
Speaker #4: Stephen in the
Speaker #5: 50 to 55 million in
Speaker #4: his
Speaker #4: comments ,
Speaker #4: we updating that have
Speaker #5: revenue
Speaker #4: the market environment
Speaker #5: .
Speaker #4: has been
Speaker #4: relatively
Speaker #4: last couple
Speaker #5: The
Speaker #4: of
Speaker #5: company compared to
Speaker #4: quarters
Speaker #5: continues to last
Speaker #4: in that custom
Speaker #4: biopharma , or
Speaker #5: cash outflow of less than 12 million for the full year 2025 , as
Speaker #4: also known as
Speaker #4: bioprocessing
Speaker #4: in our
Speaker #4: business
Speaker #5: we have communicated revenue previously , based on reasonable assumptions about future growth and spending , plus current liquidity , we believe that we do not need to raise additional capital
Speaker #4: and
Speaker #4: we are
Speaker #4: not seeing any
Speaker #4: indicators yet
Speaker #4: that that's going to be
Speaker #4: changing in
Speaker #4: the near
Speaker #4: term . But we'll be ,
Speaker #4: of
Speaker #4: course , updating that
Speaker #4: view
Speaker #4: every quarter , and we will
Speaker #5: to . execute on
Speaker #4: have some more data points
Speaker #5: our
Speaker #5: organic
Speaker #4: next
Speaker #5: growth
Speaker #5: strategy
Speaker #4: call
Speaker #4: Obviously
Speaker #5: . With
Speaker #4: But on the other hand ,
Speaker #5: that , I will turn the call
Speaker #4: we as
Speaker #5: back
Speaker #4: just highlighted
Speaker #5: to Steven
Speaker #5: .
Speaker #5: .
Speaker #4: the rest of
Speaker #4: the business is
Speaker #4: performing really well . And and
Speaker #4: Thanks , Matt have communicated previously , . based We on believe the reasonable long term outlook assumptions for our about end future markets remains growth and positive , spending .
Speaker #4: don't see
Speaker #4: that changing
Speaker #4: the near
Speaker #4: and we are committed Plus to current helping our liquidity , customers we accelerate the believe that introduction of we do novel not need to therapies additional capital to , diagnostics and other execute products that on improve our human health organic growth .
Speaker #4: term . And overall that's a
Speaker #4: great thing development to have .
Speaker #4: The diversity
Speaker #4: in the
Speaker #4: portfolio ,
Speaker #4: to have the
Speaker #4: , you
Speaker #4: know , even
Speaker #4: though they're and
Speaker #4: working in different
Speaker #4: We will now strategy take your questions . With that , I will turn the call . back to Steven
Speaker #4: directions at the moment . But
Speaker #4: think in
Speaker #4: general , you
Speaker #4: that's
Speaker #4: kind of
Speaker #2: Thank you .
Speaker #4: the
Speaker #4: math
Speaker #2: At
Speaker #2: time , we will conduct the
Speaker #4: we
Speaker #2: question
Speaker #2: and answer session the long
Speaker #4: the moment
Speaker #2: . As
Speaker #4: . And
Speaker #2: a reminder to ask
Speaker #2: a question , you
Speaker #4: of the overall
Speaker #2: will need
Speaker #4: development
Speaker #2: to we are
Speaker #2: star one one on your
Speaker #4: of you know , the
Speaker #4: the
Speaker #2: telephone and wait
Speaker #4: clinical
Speaker #4: solutions
Speaker #2: for your
Speaker #2: name to be
Speaker #4: business , we
Speaker #2: announced novel
Speaker #2: . To
Speaker #2: withdraw
Speaker #4: been adding
Speaker #2: your and other
Speaker #2: question , please
Speaker #4: there , and we will be
Speaker #2: press star
Speaker #2: one
Speaker #2: one again .
Speaker #2: Please stand
Speaker #2: by while questions we compile the Q&A
Speaker #4: at
Speaker #4: the end
Speaker #4: of the life year kind of where
Speaker #4: those numbers
Speaker #2: roster
Speaker #4: land and
Speaker #2: . Thank you .
Speaker #4: for the year .
Speaker #4: Once we're once
Speaker #4: we're
Speaker #4: done ,
Speaker #4: we continue
Speaker #4: increases
Speaker #4: of the
Speaker #4: Although , you
Speaker #4: the as mix can sometimes
Speaker #4: change you know
Speaker #4: markets , as Stephen
Speaker #4: was pointing
Speaker #4: out , could be
Speaker #2: The first question comes
Speaker #2: from the line
Speaker #4: , you know ,
Speaker #4: some , it's
Speaker #4: differences
Speaker #2: of
Speaker #2: Matt
Speaker #4: in life
Speaker #4: sciences
Speaker #2: McIntosh of
Speaker #4: and
Speaker #2: Stephens , Q&A
Speaker #2: Inc. Your line is now open .
Speaker #4: . And
Speaker #4: course
Speaker #4: , versus Yeah I'll just biopharma , for add Matt example . that , But you know in on that either particular case , we're thing when happy to we talk about onboard those increasing I think it's customers and have them particularly as a positive statement that you know , we're increasing despite , customers with you know , significant revenue companies that potential going forward .
Speaker #6: Hey , good afternoon . Appreciate you taking my questions . Maybe just to start . Just given the recent rhetoric around MFN , pharma
Speaker #6: tariffs and
Speaker #6: just the
Speaker #6: subsequent
Speaker #6: announcements
Speaker #6: around
Speaker #6: Onshoring
Speaker #6: capacity and pharma
Speaker #6: production
Speaker #6: , how
Speaker #6: have Stephens ,
Speaker #6: customer
Speaker #6: trended
Speaker #4: But team's we'll see how we executing really finish the well . year There . But of course there's always .
Speaker #6: thus far into the
Speaker #6: second half of this
Speaker #3: Yeah I just add
Speaker #6: year
Speaker #6: ?
Speaker #3: Matt
Speaker #3: that you know on that particular thing when we talk do .
Speaker #4: Yeah . Thanks ,
Speaker #4: Matt .
Speaker #3: increasing I think
Speaker #4: Mark
Speaker #3: it's that particularly
Speaker #4: . So I would
Speaker #4: say
Speaker #3: a positive statement that we're
Speaker #4: , you the know
Speaker #3: increasing despite , you know ,
Speaker #4: , we
Speaker #4: like the rhetoric
Speaker #4: idea of these
Speaker #3: companies that within we
Speaker #4: leading indicators ,
Speaker #3: supported kind
Speaker #4: whether it's
Speaker #4: biotech the
Speaker #3: last
Speaker #3: year are really no longer in
Speaker #4: funding subsequent or the
Speaker #4: MFN results .
Speaker #3: existence in
Speaker #4: But we're not
Speaker #3: So we
Speaker #4: yet seeing
Speaker #3: have to
Speaker #3: overcome
Speaker #4: impact from the
Speaker #3: that
Speaker #4: customers . , how
Speaker #3: then add new
Speaker #4: So I have
Speaker #3: ones . So
Speaker #4: think there's customer
Speaker #4: optimism across the
Speaker #3: I feel like the teams
Speaker #4: board . But
Speaker #3: there . But of course there's always
Speaker #4: the
Speaker #4: actual second half of this
Speaker #4: actions of maybe purchasing more ,
Speaker #3: more we can do .
Speaker #3: of year
Speaker #3: we'll give you guys
Speaker #4: purchases , we have not yet seen , which
Speaker #3: a
Speaker #3: update on that
Speaker #4: is So
Speaker #4: why ,
Speaker #4: you know , we've been here
Speaker #3: .
Speaker #8: Okay . And obviously we're now . a
Speaker #4: before and we
Speaker #4: want to make sure
Speaker #4: that we're we
Speaker #4: cautious and
Speaker #7: You know ,
Speaker #7: within kind of
Speaker #4: seeing that ,
Speaker #4: you know , when these
Speaker #4: things start
Speaker #7: new
Speaker #4: to happen , if they're sustained
Speaker #7: modality
Speaker #7: world
Speaker #4: for an extended period of
Speaker #4: time results ,
Speaker #7: , you know ,
Speaker #7: gene armat , therapy ,
Speaker #4: , we believe
Speaker #4: it will seeing the
Speaker #7: call it like
Speaker #7: a just kind of a grab
Speaker #4: this
Speaker #7: bag within your of
Speaker #4: sort of the emergent
Speaker #4: therapy side .
Speaker #7: clinical updates throughout the
Speaker #4: But at
Speaker #4: this point board in
Speaker #7: year ,
Speaker #7: some
Speaker #7: quite positive , particularly
Speaker #4: I
Speaker #4: would
Speaker #4: say , you know , we're seeing some
Speaker #7: in some subgroups recent
Speaker #4: growth in the large
Speaker #4: pharma .
Speaker #7: therapy
Speaker #7: indications , some perhaps more
Speaker #4: We're actually not
Speaker #4: seeing some yet seen ,
Speaker #4: seeing some yet seen , nice which is
Speaker #4: growth in some of
Speaker #4: emerging
Speaker #4: therapeutic before
Speaker #4: companies
Speaker #7: And obviously
Speaker #4: that have want to make
Speaker #4: been
Speaker #4: purchased by
Speaker #7: we're now
Speaker #4: larger companies .
Speaker #7: a bit a year or so into some of the fast
Speaker #4: But those that
Speaker #4: constrained by
Speaker #4: capital
Speaker #7: efforts , whether
Speaker #4: operating
Speaker #7: it's fast track
Speaker #4: in a way that they're
Speaker #4: they're
Speaker #7: it might
Speaker #7: be ,
Speaker #7: just
Speaker #4: rationalizing pipeline
Speaker #7: group . What's
Speaker #4: or slowing
Speaker #4: things
Speaker #4: down at the at
Speaker #7: your
Speaker #4: So
Speaker #4: at would say , this point
Speaker #4: in time
Speaker #4: , that has been
Speaker #7: subgroups
Speaker #4: limited
Speaker #7: , and do
Speaker #4: . Conversations pharma .
Speaker #7: you have
Speaker #4: about
Speaker #4: ramp up
Speaker #4: and spend nice
Speaker #4: their growth
Speaker #4: .
Speaker #7: have an opportunity
Speaker #7: to
Speaker #7: participate in these , in
Speaker #6: Okay . Fair
Speaker #7: these programs , and
Speaker #6: enough .
Speaker #7: how has that
Speaker #7: affected
Speaker #6: I'd
Speaker #7: either
Speaker #6: also like to still
Speaker #7: their 48 , demand or how they're
Speaker #6: get a little
Speaker #6: bit of an
Speaker #7: working with you
Speaker #6: update on capital the
Speaker #6: rules
Speaker #6: initiative .
Speaker #7: ?
Speaker #3: Yeah , I think it's
Speaker #6: It's
Speaker #3: also fair to say it's been a
Speaker #6: been , you
Speaker #6: know , they're call it a little over a year since that's been
Speaker #3: for us where we have some that
Speaker #3: have done
Speaker #3: quite well
Speaker #6: put into
Speaker #6: place . the
Speaker #3: participating in some
Speaker #6: update
Speaker #6: on how the
Speaker #6: efforts are trending ?
Speaker #3: of those programs
Speaker #6: There at
Speaker #3: and some
Speaker #6: ?
Speaker #3: that that we had are , are ,
Speaker #4: Yeah ,
Speaker #4: it's an pretty
Speaker #3: are really
Speaker #4: important limited part of our
Speaker #3: constrained . Recently
Speaker #4: portfolio and
Speaker #4: it
Speaker #4: fills up and
Speaker #4: a really
Speaker #4: nice gap for us in
Speaker #3: . I know at the
Speaker #3: end
Speaker #3: of
Speaker #4: That, you know.
Speaker #4: we put a Okay .
Speaker #4: lot
Speaker #4: of effort and investment into this
Speaker #3: did
Speaker #3: talk about the number
Speaker #3: of clinical
Speaker #3: with 48 ,
Speaker #4: new
Speaker #4: facility .
Speaker #3: of have
Speaker #3: which
Speaker #3: 39 were and biopharma
Speaker #4: We have a lot
Speaker #4: of customers
Speaker #4: that want
Speaker #4: to use the new initiative . facility but
Speaker #3: . Of those , 39 that were biopharma related ,
Speaker #4: for
Speaker #4: GMP .
Speaker #3: 23 were selling gene
Speaker #4: And that's
Speaker #4: it's a great been
Speaker #4: landing spot
Speaker #4: for them place .
Speaker #4: where they
Speaker #4: can get their any update
Speaker #3: gives you the idea
Speaker #4: products
Speaker #4: made in the how the
Speaker #4: facility . They get a lot more flexibility in
Speaker #3: exposure that we
Speaker #3: had at the end of 2024 . I
Speaker #4: formulations . They get
Speaker #3: don't think it's changed therapy drastically . Matt . But I think there are some there
Speaker #4: sort of an
Speaker #4: improved
Speaker #4: quality that is
Speaker #4: very in that
Speaker #4: similar to we GMP ,
Speaker #4: but put a not
Speaker #4: quite all the way
Speaker #3: that are
Speaker #3: later
Speaker #4: to
Speaker #3: stage that
Speaker #4: GMP .
Speaker #3: are
Speaker #3: actually executing
Speaker #4: At a
Speaker #4: price that's not the exact same as GMP , right ? So for us , it allows us to get a little bit of a price premium for using that
Speaker #3: the plan . There's some
Speaker #3: that have
Speaker #3: been acquired
Speaker #3: and
Speaker #3: and
Speaker #3: are kind of
Speaker #3: the , you
Speaker #3: new know ,
Speaker #3: .
Speaker #3: Party is
Speaker #4: not
Speaker #4: actually
Speaker #3: actually running
Speaker #3: those and executing
Speaker #4: committing them
Speaker #3: those . And there's some
Speaker #4: to
Speaker #4: some And it's
Speaker #3: there
Speaker #3: that , you know , I
Speaker #4: more controls around the the changes they want to make and get their products to them
Speaker #3: would say they're more
Speaker #3: sensitive or more specifically an
Speaker #3: mRNA
Speaker #3: the sort of
Speaker #4: sooner . So committing this is a really nice landing spot .
Speaker #3: sensitive
Speaker #3: gene therapy areas that have been both
Speaker #4: We're seeing them to customers come in there . Those will sit in that lab essentials business because it's part of their research . Use only .
Speaker #3: good
Speaker #3: , positive and
Speaker #3: negative
Speaker #3: over the one for me past , past year . So we're kind of , you
Speaker #4: And
Speaker #4: the goal some there is obviously to migrate them to GMP . And we
Speaker #3: know , as a company , gross
Speaker #3: you know , our specialty
Speaker #3: is making these
Speaker #4: see a lot some of customers actually sitting in
Speaker #3: custom small
Speaker #3: batches of reagents
Speaker #4: that , in that more pathway
Speaker #3: not
Speaker #4: right
Speaker #4: now
Speaker #4: .
Speaker #3: to
Speaker #3: therapeutic .
Speaker #3: We're kind of margin participating in all sides of that market , if that
Speaker #6: It's great to hear . I appreciate the context . I'll leave it there .
Speaker #3: makes improvement sense
Speaker #7: Just the the last
Speaker #7: one for me of the , gross
Speaker #7: margins year projects you to date
Speaker #2: you
Speaker #7: up about 600 basis
Speaker #2: Our next call
Speaker #7: points . terms of go And that's despite clinical solutions being flattish , slightly
Speaker #2: comes a lot of from the line of Brendan Smith of
Speaker #2: TD
Speaker #2: Cohen . actually Your
Speaker #2: line is now
Speaker #2: open
Speaker #7: down forward year to date . So large scale driven
Speaker #2: .
Speaker #7: Great . Thanks , guys ,
Speaker #7: for taking That's
Speaker #7: the
Speaker #7: questions .
Speaker #7: you
Speaker #7: Appreciate
Speaker #7: referenced Matt , a number
Speaker #7: all the color on . Actually the funding , environment ,
Speaker #7: of I guess
Speaker #7: impact and potential impact into next year . Actually just wondering if you could maybe give really
Speaker #7: completed
Speaker #7: and process cost , and planned projects continue to efficiency . I
Speaker #7: any more color there on
Speaker #7: know scale is a big low piece . Is that kind of the right gross margin improvement trajectory to think about or some
Speaker #7: actually the
Speaker #7: expected
Speaker #7: product
Speaker #7: mix
Speaker #7: that could
Speaker #7: kind of come in some
Speaker #7: these
Speaker #7: different scenarios
Speaker #7: that might
Speaker #7: of the projects variable you reference more or less impactful in terms of go forward ?
Speaker #7: that
Speaker #7: compensation . You're talking about for the possibility of a more
Speaker #7: protracted
Speaker #7: biotech Great .
Speaker #7: slowdown
Speaker #7: . It's questions really just
Speaker #7: wondering if .
Speaker #4: Yeah , I think thank you for
Speaker #7: specific
Speaker #7: products
Speaker #7: within that
Speaker #7: portfolio
Speaker #7: particular interest
Speaker #4: highlighting those initiatives . cost Matt . We are
Speaker #7: in and what maybe your
Speaker #7: expectations
Speaker #7: are for
Speaker #7: those into next
Speaker #7: year . give
Speaker #4: working
Speaker #7: Thanks
Speaker #4: on a lot of
Speaker #7: .
Speaker #4: things ,
Speaker #4: things already profile that
Speaker #4: So , if you're asking
Speaker #4: things we're
Speaker #4: still working .
Speaker #4: about like ,
Speaker #4: on for
Speaker #4: what type of mix that
Speaker #4: next year
Speaker #4: product product
Speaker #4: mix we
Speaker #4: . I would say , you know ,
Speaker #4: typically
Speaker #4: sell into the
Speaker #4: custom that might biopharma ,
Speaker #4: key
Speaker #4: is that help
Speaker #4: correct drive
Speaker #4: for
Speaker #4: margin projects performance
Speaker #4: ? And how
Speaker #4: we see that
Speaker #4: changing over
Speaker #4: time
Speaker #4: . ?
Speaker #4: multiple
Speaker #7: More . Yeah .
Speaker #7: More
Speaker #4: just in
Speaker #7: specifically like
Speaker #4: single
Speaker #7: into just next year
Speaker #4: quarter
Speaker #7: if you're if your
Speaker #4: this
Speaker #7: confident
Speaker #7: that
Speaker #4: know , high fixed cost , low
Speaker #7: you know you're
Speaker #7: the
Speaker #7: rev
Speaker #7: mix maybe your that you're
Speaker #4: variable piece cost
Speaker #7: seeing expectations are now could
Speaker #7: kind of
Speaker #7: compensate
Speaker #4: mix in our
Speaker #7: for Thanks any potentially
Speaker #4: cost
Speaker #7: protracted .
Speaker #7: biotech
Speaker #4: that we
Speaker #7: funding
Speaker #4: have
Speaker #7: slowdown , just asking about
Speaker #7: kind of like , what
Speaker #4: , where again , we've
Speaker #7: wondering if type of there are specific
Speaker #7: products product mix within
Speaker #4: 70% of incremental
Speaker #7: there
Speaker #7: that you're sell into
Speaker #7: kind of , you
Speaker #7: know ,
Speaker #4: revenue flowing
Speaker #7: seeing special interest
Speaker #4: through the
Speaker #7: into
Speaker #4: projects
Speaker #7: next year
Speaker #7: that could help
Speaker #7: drive over
Speaker #7: that
Speaker #7: ?
Speaker #4: . You know ,
Speaker #4: Yeah , maybe
Speaker #4: we'll
Speaker #4: I'll think I
Speaker #4: we'll
Speaker #4: change that about a little
Speaker #4: think what specifically like
Speaker #4: bit . But cash , I would
Speaker #4: say overall that 70% of cash
Speaker #4: know , obviously
Speaker #4: is going to be still
Speaker #4: there could
Speaker #4: thematically the
Speaker #4: be and we
Speaker #4: expect some ,
Speaker #4: some
Speaker #4: piece
Speaker #4: . So
Speaker #4: conservation
Speaker #4: of
Speaker #4: capital
Speaker #4: as you can see though , from quarter to quarter , there is variation against that 70% . I would
Speaker #4: in protracted the
Speaker #4: biotech
Speaker #4: environment of
Speaker #4: , particularly around
Speaker #4: emerging markets
Speaker #4: over the
Speaker #4: You know ,
Speaker #4: I don't kind of , know ,
Speaker #4: say that the 70% is production .
Speaker #4: 6 to 12 months .
Speaker #4: We're very
Speaker #4: most realizable in the when we talk about cash , 70% of cash dropping through , sometimes due to other types of
Speaker #4: fortunate
Speaker #4: that 75% of our business
Speaker #4: is Yeah , growing
Speaker #4: double
Speaker #4: digits . And we're think I
Speaker #4: actually
Speaker #4: seeing you're after
Speaker #4: it is almost
Speaker #4: across the
Speaker #4: every
Speaker #4: market
Speaker #4: segment . And we
Speaker #4: actually all
Speaker #4: three of our primary some product lines of agar
Speaker #4: accounting But
Speaker #4: for I
Speaker #4: plates , cell culture ,
Speaker #4: inventory
Speaker #4: and
Speaker #4: and production , we can see
Speaker #4: buffers . So
Speaker #4: some of the
Speaker #4: variations that
Speaker #4: we've seen . This quarter . And the
Speaker #4: we're pretty
Speaker #4: excited
Speaker #4: about the
Speaker #4: the that
Speaker #4: side of the know , business and how
Speaker #4: last quarter . As two examples in each way . But I think I think overall , we still have
Speaker #4: well we're say performing
Speaker #4: there .
Speaker #4: We do
Speaker #4: a very high fixed
Speaker #4: in
Speaker #4: on
Speaker #4: actually the
Speaker #4: tools and almost diagnostics
Speaker #4: and
Speaker #4: side
Speaker #4: and that is going to allow us to continue
Speaker #4: we
Speaker #4: supply a
Speaker #4: driving Reif strong
Speaker #4: performance into
Speaker #4: number of
Speaker #4: products , both for
Speaker #4: next Craigholme year ,
Speaker #4: the discovery
Speaker #4: , but also in
Speaker #4: growth that
Speaker #4: that
Speaker #4: expecting
Speaker #4: into clinical
Speaker #4: . Hello .
Speaker #4: trials . And
Speaker #4: so ,
Speaker #7: Okay .
Speaker #4: you know ,
Speaker #7: Thank
Speaker #4: the
Speaker #4: combination excited
Speaker #7: you
Speaker #7: .
Speaker #4: of
Speaker #4: of actually
Speaker #4: having the
Speaker #4: this
Speaker #4: sort the
Speaker #4: of business
Speaker #4: number of clinical
Speaker #4: customers
Speaker #4: right now as we go through this
Speaker #4: period
Speaker #1: you . Our
Speaker #4: with interest this
Speaker #1: next
Speaker #1: call Thank
Speaker #4: predictable
Speaker #1: comes from the line
Speaker #4: baseline growth diagnostics
Speaker #4: that side that is in the double
Speaker #4: digits . And I where will say
Speaker #1: Reif Korman with
Speaker #4: , that is very
Speaker #4: similar to discovery but the
Speaker #4: business that also in was here
Speaker #1: . Your line is
Speaker #1: now
Speaker #1: open
Speaker #4: We made a lot of these
Speaker #1: .
Speaker #4: investments that
Speaker #4: grew
Speaker #4: between 2009 and 2019 ,
Speaker #4: 12% ,
Speaker #9: taking the question .
Speaker #9: You talked are about process
Speaker #4: you
Speaker #4: know ,
Speaker #9: improvements , taking
Speaker #4: we're we're
Speaker #4: back to that increased
Speaker #9: effect
Speaker #9: in we're
Speaker #4: level . number of If
Speaker #4: not
Speaker #9: 26 . Are there
Speaker #4: higher at times .
Speaker #9: any other
Speaker #4: So
Speaker #9: areas
Speaker #4: we
Speaker #4: feel like we're in a
Speaker #9: looking to
Speaker #4: spot
Speaker #9: drive ? More
Speaker #4: to , with to to
Speaker #9: efficiencies ? Thank you
Speaker #4: let this the rest
Speaker #4: of our
Speaker #4: strategy
Speaker #4: play out on growth , the
Speaker #4: therapeutic
Speaker #4: side .
Speaker #9: .
Speaker #3: Yeah ,
Speaker #3: of course . I mean this
Speaker #4: And And I will
Speaker #4: we're say
Speaker #3: constant theme
Speaker #4: working that , you
Speaker #4: on bringing
Speaker #3: here
Speaker #4: on more
Speaker #4: of
Speaker #4: these
Speaker #3: You know , since
Speaker #4: customers in these
Speaker #4: other that was
Speaker #3: since we
Speaker #4: market
Speaker #3: started on
Speaker #4: segments before .
Speaker #4: .
Speaker #3: journey about five years
Speaker #3: ago , we map
Speaker #3: these
Speaker #7: Got it . Makes
Speaker #3: processes that we felt
Speaker #7: sense . Thanks , guys
Speaker #3: like
Speaker #7: .
Speaker #3: , are
Speaker #3: inefficient
Speaker #3: we're we've put the
Speaker #3: it
Speaker #2: Thank
Speaker #2: you
Speaker #3: really
Speaker #3: track
Speaker #3: and
Speaker #3: identify those , those
Speaker #2: Our next
Speaker #2: question comes from the line of our
Speaker #3: areas . So
Speaker #2: Matthew
Speaker #2: Leroux
Speaker #3: looking at
Speaker #2: with
Speaker #3: Now
Speaker #3: there's there's a couple of different kinds . Right .
Speaker #2: William Blair . Your line is now
Speaker #3: So
Speaker #3: on the
Speaker #3: operational
Speaker #2: open
Speaker #2: .
Speaker #3: side
Speaker #3: at labor and direct
Speaker #3: labor
Speaker #8: Good afternoon
Speaker #3: But of course if we can get more
Speaker #8: . Matt . Your
Speaker #8: comments on 2026 . You know , if you've got
Speaker #3: the same
Speaker #3: fixed
Speaker #3: drives a lot of a lot to the
Speaker #8: 75% of the revenue growing with double digits
Speaker #3: bottom
Speaker #3: line
Speaker #3: and will
Speaker #8: and .
Speaker #8: modest
Speaker #8: in
Speaker #8: 25% , that
Speaker #3: same number of , say
Speaker #8: seems to the line
Speaker #3: , headcount as
Speaker #8: suggest of
Speaker #8: something Matthew around
Speaker #8: 10% as a starting Leroux point . So
Speaker #3: we ramp
Speaker #3: up in operations .
Speaker #3: up in operations . revenue But then . And in
Speaker #3: fact ,
Speaker #8: I
Speaker #8: guess
Speaker #3: you
Speaker #3: know ,
Speaker #3: you heard in the in the transcript , we have 161 employees at the end of Q3 . You know , there was a time where we actually over 300 with a similar revenue amount .
Speaker #8: , is
Speaker #8: that math ? Right . And then on the on the
Speaker #8: clinical solution
Speaker #8: side ,
Speaker #8: you've called out a couple
Speaker #8: times this Matt .
Speaker #8: year the growth in
Speaker #8: the number comments of
Speaker #8: customers . I know that's a
Speaker #3: So , you know , significant work has gone into driving efficiency across the board . And we won't stop that as we go forward .
Speaker #8: metric you
Speaker #8: update if you've annually ,
Speaker #8: but got
Speaker #8: maybe just if you 75% of the
Speaker #8: us how
Speaker #8: tracking new customer acquisition to
Speaker #3: So , you know , there's efficiency in the operations , but then there's efficiency in all the other supporting
Speaker #8: perhaps 10% as a years
Speaker #8: past starting and
Speaker #8: your own
Speaker #8: expectations this year .
Speaker #5: Yeah .
Speaker #3: So a lot of a
Speaker #5: Matt
Speaker #3: lot of people
Speaker #5: . Yeah
Speaker #3: here
Speaker #5: , obviously , you know , it's a little
Speaker #3: , a can lot of
Speaker #5: bit
Speaker #5: early to couple
Speaker #3: processes
Speaker #5: really
Speaker #3: being
Speaker #5: commenting customers .
Speaker #3: optimized
Speaker #3: around One is how do
Speaker #3: metrics . And not
Speaker #5: precision on 2026 .
Speaker #3: even
Speaker #3: rolls all
Speaker #5: And we'll
Speaker #3: the way to the and
Speaker #5: certainly do
Speaker #3: commercial side . continue that Right . How do
Speaker #5: that in just
Speaker #5: our next
Speaker #5: call
Speaker #3: we do going more with the same number of
Speaker #5: when we
Speaker #5: report year end
Speaker #3: people
Speaker #3: ? And ,
Speaker #5: . But
Speaker #3: so , you
Speaker #5: thought
Speaker #5: it might be relative
Speaker #3: know , it's just
Speaker #5: useful to
Speaker #5: provide
Speaker #3: a mantra
Speaker #5: some past
Speaker #3: here more than
Speaker #5: high level
Speaker #3: else .
Speaker #5: thoughts
Speaker #5: about where
Speaker #5: we see year things today . And
Speaker #3: probably
Speaker #5: you're ?
Speaker #5: right , kind of
Speaker #5: in these
Speaker #3: , you know , it would take us a long time to go
Speaker #5: we've kind of focused on
Speaker #5: these two
Speaker #3: into all the
Speaker #3: details here . , commercial But I think you
Speaker #5: components of
Speaker #5: the business .
Speaker #5: The
Speaker #3: kind of see that from a
Speaker #5: 25% we've been talking about and
Speaker #3: company . You
Speaker #5: custom commenting
Speaker #5: biopharma and
Speaker #3: we have like two major focuses .
Speaker #5: 75% of the
Speaker #3: One is how do we drive top line and continue that going forward as we wait for these customers to come all the way through the therapeutic pipeline , as well as then how do we
Speaker #5: . And
Speaker #5: as
Speaker #5: Stephen .
Speaker #5: outlined
Speaker #5: in his
Speaker #5: comments , and we
Speaker #5: have
Speaker #5: the market
Speaker #5: environment has
Speaker #3: continue to
Speaker #5: relatively
Speaker #5: stable the last
Speaker #3: processes ,
Speaker #3: processes , whether the
Speaker #5: quarters
Speaker #5: in
Speaker #3: it's line of operations
Speaker #5: that custom biopharma or
Speaker #3: , commercial
Speaker #5: also known as
Speaker #3: HR , you name
Speaker #5: bioprocessing
Speaker #3: it
Speaker #3: .
Speaker #5: in our
Speaker #5: business
Speaker #9: Thank you
Speaker #5: . And
Speaker #5: we are
Speaker #5: not 75% of the
Speaker #5: any strong
Speaker #5: indicators yet that that's going to be changing
Speaker #5: near
Speaker #5: term . outlined in
Speaker #5: But we'll be , of course ,
Speaker #5: view
Speaker #5: every quarter ,
Speaker #1: Thank
Speaker #5: and we will
Speaker #1: you . Our next
Speaker #5: have some
Speaker #5: more stable the
Speaker #5: data points
Speaker #1: question comes
Speaker #5: here . By
Speaker #5: the time of our next
Speaker #1: from the recovery line
Speaker #5: call
Speaker #1: of Mark
Speaker #5: . Obviously
Speaker #5: . But on the other hand ,
Speaker #1: of
Speaker #1: Btig .
Speaker #5: we as Stephen , just
Speaker #1: Your
Speaker #1: line is
Speaker #5: highlighted the rest of the
Speaker #1: open
Speaker #5: business is performing
Speaker #5: really
Speaker #1: .
Speaker #10: Hello . This is
Speaker #5: well . And and
Speaker #10: Vivian . Mark . Thanks for taking the questions .
Speaker #5: similarly
Speaker #5: , don't see strong that
Speaker #5: changing
Speaker #10: I'll
Speaker #5: in the
Speaker #10: keep it
Speaker #5: near term .
Speaker #10: to one . about how
Speaker #5: And that's a great thing to
Speaker #10: So I
Speaker #5: have . The
Speaker #10: think you
Speaker #5: diversity and the
Speaker #10: touched
Speaker #10: on
Speaker #5: portfolio to
Speaker #5: have the
Speaker #10: , maybe some
Speaker #5: two pieces
Speaker #10: incremental
Speaker #10: spend on the
Speaker #10: sales organization .
Speaker #10: force just trying to get ahead
Speaker #5: , you
Speaker #5: know , here by the even though they're
Speaker #5: working time of our
Speaker #5: in different
Speaker #10: of a , you know , recovery
Speaker #5: directions at
Speaker #10: in
Speaker #10: funding .
Speaker #5: the .
Speaker #5: moment . But yes , I
Speaker #10: Could you
Speaker #5: think in .
Speaker #10: just
Speaker #5: general ,
Speaker #10: us where
Speaker #5: you
Speaker #5: know , Stephen , that's that's
Speaker #10: Salesforce sits today and kind of at what levels
Speaker #5: kind
Speaker #5: of
Speaker #5: the math
Speaker #5: that we see
Speaker #10: you might .
Speaker #10: feel ?
Speaker #10: Rightsized .
Speaker #5: at the similarly
Speaker #5: . And
Speaker #10: .
Speaker #3: Yeah .
Speaker #3: And
Speaker #5: in
Speaker #5: terms of the in
Speaker #3: people often
Speaker #3: talk to us about
Speaker #3: how many people you
Speaker #5: of
Speaker #5: the
Speaker #3: field . And we
Speaker #5: clinical
Speaker #5: solutions business ,
Speaker #5: we have been
Speaker #3: broadly as a commercial
Speaker #3: organization . So
Speaker #5: adding two pieces
Speaker #5: customers there ,
Speaker #5: we will be
Speaker #5: reporting
Speaker #3: , you know ,
Speaker #3: talking about modest
Speaker #5: at the
Speaker #5: end of the
Speaker #3: increases here , as we've overall said since
Speaker #5: year kind of where those
Speaker #5: numbers
Speaker #3: the beginning of the
Speaker #5: land know ,
Speaker #5: for the
Speaker #3: We're we're talking
Speaker #5: year . that's
Speaker #5: Once we're
Speaker #5: once we're
Speaker #3: couple
Speaker #5: done and
Speaker #3: headcount here and
Speaker #3: there .
Speaker #5: continue that
Speaker #5: to see
Speaker #3: But
Speaker #3: again , back to the last comment . A lot of these are process
Speaker #5: increases see at
Speaker #5: of
Speaker #5: the of the larger
Speaker #3: improvements that we're
Speaker #5: size in terms
Speaker #5: customers , although ,
Speaker #3: driving
Speaker #3: efficiency .
Speaker #5: mix
Speaker #3: So I think what you'll
Speaker #5: can
Speaker #5: sometimes change
Speaker #5: between the end
Speaker #3: see over the course of the next year is , you know , less
Speaker #5: markets ,
Speaker #5: as have Stephen was pointing
Speaker #5: out
Speaker #5: , could customers be
Speaker #5: , you know ,
Speaker #3: than I'm ten headcount
Speaker #5: some reporting differences
Speaker #3: increases
Speaker #5: in
Speaker #5: sciences
Speaker #3: overall for
Speaker #3: entire commercial
Speaker #5: and
Speaker #5: tools
Speaker #3: organization , including
Speaker #5: and
Speaker #3: customer support and
Speaker #5: of
Speaker #5: course , versus
Speaker #5: biopharma
Speaker #3: marketing .
Speaker #3: And
Speaker #5: , for to see example .
Speaker #3: field
Speaker #5: But in either
Speaker #3: sales
Speaker #3: .
Speaker #5: case , we're of the
Speaker #5: happy to onboard
Speaker #5: those larger size customers and
Speaker #5: have customers . them
Speaker #10: Thanks for taking the question .
Speaker #5: , customers
Speaker #5: with between
Speaker #5: significant the end revenue potential
Speaker #5: going
Speaker #5: forward .
Speaker #5: so yeah
Speaker #5: looking
Speaker #5: good .
Speaker #5: And and the market and
Speaker #5: the makeup of it
Speaker #5: is , is and
Speaker #5: maybe changing
Speaker #5: a little tools bit , but
Speaker #5: we'll see how
Speaker #5: we of
Speaker #5: finish the year
Speaker #4: we supported So last year are really no longer in so yeah , existence in it's many ways . Right . looking So good .
Speaker #4: we have And to the and the overcome that and the barrier and then add makeup of it new ones . is , is maybe So changing I a little feel like the bit .
Speaker #4: more we can
Speaker #4: And at the end of the year we'll give you guys
Speaker #4: a about better update on
Speaker #4: .
Speaker #9: Okay
Speaker #9: .
Speaker #8: You know ,
Speaker #8: of the new
Speaker #8: modality
Speaker #8: world
Speaker #8: , you
Speaker #8: know , many ways .
Speaker #8: gene Right . therapy , there's
Speaker #8: been
Speaker #8: I call
Speaker #8: it like
Speaker #8: a kind
Speaker #8: of a grab barrier and bag
Speaker #8: of
Speaker #8: clinical
Speaker #8: updates throughout the
Speaker #8: year , executing really
Speaker #8: some well , quite , quite
Speaker #8: positive , particularly in
Speaker #8: some
Speaker #8: recent And
Speaker #8: gene at the end
Speaker #8: therapy
Speaker #8: indications , some
Speaker #8: perhaps
Speaker #8: more better
Speaker #8: negative
Speaker #8: bit a year or so
Speaker #8: into
Speaker #8: some the
Speaker #8: of the fast
Speaker #8: track efforts , whether
Speaker #8: it's fast track or
Speaker #8: whatever it
Speaker #8: might there's
Speaker #8: be , been I
Speaker #8: customer group . What's your
Speaker #8: exposure
Speaker #8: like
Speaker #8: to those
Speaker #8: various quite ,
Speaker #8: ? And , you
Speaker #8: know , do you gene
Speaker #8: have
Speaker #8: customers that
Speaker #8: have an negative opportunity to participate in these in these
Speaker #8: programs ? And how .
Speaker #8: has that
Speaker #8: affected
Speaker #8: either their
Speaker #8: demand or how they're working with track you
Speaker #8: ?
Speaker #4: Yeah , I
Speaker #4: think
Speaker #4: it's or also fair to say it's
Speaker #4: been a grab mat
Speaker #4: bag for or whatever
Speaker #4: us where we have some that
Speaker #4: have done
Speaker #4: quite
Speaker #4: well within your in
Speaker #4: our customer
Speaker #4: participating
Speaker #4: in some of those
Speaker #4: programs exposure like
Speaker #4: and some to those that
Speaker #4: are , various are , are
Speaker #4: really
Speaker #4: constrained
Speaker #4: recently . I know at
Speaker #4: the customers that
Speaker #4: end
Speaker #4: of
Speaker #4: 2024 , we did
Speaker #4: talk about
Speaker #4: the number of clinical
Speaker #4: customers we have is
Speaker #4: of which
Speaker #4: 39 were biopharma related
Speaker #4: . Of those ,
Speaker #4: 39 that were
Speaker #4: biopharma related , grab bag
Speaker #4: 23 were
Speaker #4: selling gene
Speaker #4: therapies . So that
Speaker #4: kind of gives you the and are idea
Speaker #4: of the
Speaker #4: exposure
Speaker #4: at the end of 2024 .
Speaker #4: I don't think it's changed
Speaker #4: drastically .
Speaker #4: Matt . But I think there
Speaker #4: are some
Speaker #4: there that
Speaker #4: are 2024 , we
Speaker #4: later stage
Speaker #4: that are actually
Speaker #4: executing the
Speaker #4: plan . customers we have There's some that
Speaker #4: been acquired
Speaker #4: and
Speaker #4: are related of the new
Speaker #4: . Party is
Speaker #4: actually running those
Speaker #4: and therapy .
Speaker #4: executing So that
Speaker #4: those . And there's kind of some
Speaker #4: there that , you know , I would say they're more
Speaker #4: sensitive or more an mRNA or some of the sort of the of
Speaker #4: sensitive gene
Speaker #4: areas that
Speaker #4: have been , you
Speaker #4: both positive
Speaker #4: and
Speaker #4: good
Speaker #4: , positive and
Speaker #4: negative
Speaker #4: over the
Speaker #4: past ,
Speaker #4: past year . So we're
Speaker #4: as a company because , you
Speaker #4: know , our
Speaker #4: specialty is making
Speaker #4: these
Speaker #4: custom small batches
Speaker #4: of reagents
Speaker #4: that are
Speaker #4: not
Speaker #4: tied to a therapeutic . We're kind of
Speaker #4: participating
Speaker #4: all or
Speaker #4: sides of some of that market , if that
Speaker #4: makes
Speaker #4: sense
Speaker #4: .
Speaker #8: Okay .
Speaker #8: Just positive and
Speaker #8: the the
Speaker #8: last
Speaker #8: margins year to
Speaker #8: date because , are up about 600 basis points . And that's despite
Speaker #8: clinical
Speaker #8: solutions
Speaker #8: being
Speaker #8: flattish ,
Speaker #8: slightly that are
Speaker #8: down
Speaker #8: in process and planned projects to continue to improve efficiency . I know scale is a big piece . Is that kind of the right
Speaker #8: gross a
Speaker #8: trajectory to
Speaker #8: think about ? .
Speaker #8: Or some Okay .
Speaker #8: referenced more or less impactful
Speaker #8: in are
Speaker #8: ?
Speaker #5: Yeah ,
Speaker #5: think
Speaker #5: thank you for highlighting those initiatives . Matt . We are working on a lot of things we've already completed , and things we're still working on for next year .
Speaker #5: fixed
Speaker #5: mix in
Speaker #5: our
Speaker #5: cost
Speaker #5: we completed
Speaker #5: have and
Speaker #5: Or again , we've
Speaker #5: talked
Speaker #5: about this
Speaker #5: 70% of
Speaker #5: incremental the
Speaker #5: revenue flowing
Speaker #5: through the driver
Speaker #5: . You
Speaker #5: know over we'll
Speaker #5: we'll
Speaker #5: change that a quarters , not
Speaker #5: little
Speaker #5: bit . But I a
Speaker #5: would say
Speaker #5: overall that is going to
Speaker #5: be still , is
Speaker #5: thematically the
Speaker #5: strongest , you
Speaker #5: . So
Speaker #5: as you can see
Speaker #5: though
Speaker #5: , from profile
Speaker #5: quarter to
Speaker #5: quarter , there is
Speaker #5: variation
Speaker #5: against talked about that 70% . I
Speaker #5: would say this
Speaker #5: that the
Speaker #5: 70% is
Speaker #5: for the
Speaker #5: most
Speaker #5: realizable in the
Speaker #5: when we talk
Speaker #5: dropping
Speaker #5: through
Speaker #5: , sometimes due to
Speaker #5: other strongest types of accounting
Speaker #5: for
Speaker #5: inventory and
Speaker #5: We can see some of the variations
Speaker #5: that we've seen . This quarter . And the last quarter as to examples in each way .
Speaker #5: think I think overall , we still have a very high fixed cost makeup and and that is going to allow us to continue driving strong performance into next year , commensurate with the growth that we're
Speaker #5: expecting
Speaker #5: .
Speaker #8: Okay .
Speaker #8: Thank you
Speaker #8: .
Speaker #2: Thank
Speaker #2: Our
Speaker #2: next cost call
Speaker #2: comes makeup from the line
Speaker #2: of
Speaker #2: Korman with
Speaker #2: . Your
Speaker #2: . Your line is commensurate with the
Speaker #2: now
Speaker #2: open we're
Speaker #2: .
Speaker #10: Thanks
Speaker #10: for
Speaker #10: taking the
Speaker #10: question . You talked about process
Speaker #10: improvements , taking effect in 26 . Are there any other areas you're looking
Speaker #10: to drive Thank ? More
Speaker #10: efficiencies ?
Speaker #10: you
Speaker #10: .
Speaker #4: Yeah . Of course . I mean this is a constant theme
Speaker #4: here of
Speaker #4: . You know ,
Speaker #4: since Craig-hallum since we started
Speaker #4: on
Speaker #4: this
Speaker #4: journey about five years ago , we map out a lot of these
Speaker #4: processes that Hello .
Speaker #4: we felt Thanks for like
Speaker #4: inefficient
Speaker #4: . And now
Speaker #4: we put the it
Speaker #4: infrastructure and the
Speaker #4: systems in
Speaker #4: place that
Speaker #4: we can you're really
Speaker #4: track
Speaker #4: and identify
Speaker #4: those , those areas . So
Speaker #4: we're
Speaker #4: always
Speaker #4: looking at is a
Speaker #4: efficiency . Now
Speaker #4: there's there's a couple different kinds .
Speaker #4: Right . .
Speaker #4: So
Speaker #4: on the
Speaker #4: operational
Speaker #4: side , this
Speaker #4: you know you
Speaker #4: can look at
Speaker #4: labor and out a lot of direct
Speaker #4: labor
Speaker #4: savings
Speaker #4: . But
Speaker #4: of course if we can get more
Speaker #4: output with the
Speaker #4: same .
Speaker #4: fixed And now cost ,
Speaker #4: right . That drives a
Speaker #4: lot
Speaker #4: of a infrastructure and the
Speaker #4: lot to systems
Speaker #4: the in place
Speaker #4: bottom that we can
Speaker #4: line .
Speaker #4: And will allow
Speaker #4: us to keep the
Speaker #4: same number of , say
Speaker #4: , headcount as we
Speaker #4: ramp we're
Speaker #4: up in always revenue and
Speaker #4: in
Speaker #4: fact , efficiency .
Speaker #4: you know ,
Speaker #4: you heard
Speaker #4: in the in the
Speaker #4: transcript ,
Speaker #4: we
Speaker #4: have
Speaker #4: 161 employees at , you know ,
Speaker #4: the end you can look of
Speaker #4: Q3 .
Speaker #4: You know , there was a
Speaker #4: You know , there was a time where savings we were
Speaker #4: actually over .
Speaker #4: 300 with a similar revenue
Speaker #4: amount . output with
Speaker #4: So ,
Speaker #4: you know
Speaker #4: , significant work has gone into cost
Speaker #4: driving that
Speaker #4: efficiency
Speaker #4: across the board . And we
Speaker #4: won't stop
Speaker #4: that
Speaker #4: as we allow us to
Speaker #4: go keep the forward .
Speaker #4: So , you know , there's
Speaker #4: efficiency in the
Speaker #4: there's
Speaker #4: efficiency
Speaker #4: in all
Speaker #4: the other supporting
Speaker #4: as well . So a lot of a lot of it infrastructure
Speaker #4: here , a lot functions of processes being optimized around
Speaker #4: metrics . And that as even even rolls all the way to the commercial side . Right .
Speaker #4: How do well . we do more with the same number of
Speaker #4: ? And , and so ,
Speaker #4: you know , it's just IT a mantra here more than anything
Speaker #4: else . infrastructure And probably , you know , would take us a long time to go into all the details here . But I think you
Speaker #4: kind of see that from a company
Speaker #4: . You know , functions we have like two major
Speaker #4: focuses .
Speaker #4: we
Speaker #4: drive
Speaker #4: top line
Speaker #4: forward as
Speaker #4: we wait for
Speaker #4: these
Speaker #4: customers to and
Speaker #4: way through the
Speaker #4: therapeutic
Speaker #4: pipeline
Speaker #4: , as
Speaker #4: well as anything
Speaker #4: then how do we
Speaker #4: continue And to optimize our
Speaker #4: processes , whether it's
Speaker #4: operations
Speaker #4: HR , you
Speaker #4: name can it
Speaker #4: .
Speaker #10: Thank
Speaker #10: you know ,
Speaker #10: .
Speaker #2: Thank you
Speaker #2: . Our
Speaker #2: next optimize our question comes from
Speaker #2: Mark
Speaker #2: Massaro of
Speaker #2: Btig .
Speaker #2: Your line is now open
Speaker #2: .
Speaker #11: Hello . This is Vivian . Mark . Thanks
Speaker #11: for taking . the questions . I'll actually just keep it to one . So I think you touched on briefly maybe some incremental spend on the sales
Speaker #11: force
Speaker #11: just trying to get ahead of a
Speaker #11: in
Speaker #11: funding .
Speaker #11: Could you Massaro just remind
Speaker #11: us where your
Speaker #11: sales
Speaker #11: force
Speaker #11: sits
Speaker #11: today now
Speaker #11: and kind of at what levels you might feel right
Speaker #11: . Thanks
Speaker #11: .
Speaker #4: Yeah .
Speaker #4: And
Speaker #4: people actually just often talk to us
Speaker #4: many
Speaker #4: people you have
Speaker #4: in the
Speaker #4: field .
Speaker #4: And we think about
Speaker #4: it much briefly more
Speaker #4: broadly as
Speaker #4: a commercial
Speaker #4: So
Speaker #4: we're talking
Speaker #4: about modest
Speaker #4: increases here .
Speaker #4: As we've
Speaker #4: said since
Speaker #4: the beginning remind of the year ,
Speaker #4: where we're
Speaker #4: talking maybe a couple headcount here and there your
Speaker #4: But
Speaker #4: again , back
Speaker #4: to the last
Speaker #4: comment . A lot of these are process improvements
Speaker #4: that we're
Speaker #4: driving
Speaker #4: efficiency .
Speaker #4: So
Speaker #4: I
Speaker #4: think what have in the you'll
Speaker #4: see over
Speaker #4: the course think about
Speaker #4: of the it next
Speaker #4: year much
Speaker #4: is more
Speaker #4: , you
Speaker #4: , less
Speaker #4: than
Speaker #4: ten headcount we're
Speaker #4: increases
Speaker #4: for the entire
Speaker #4: commercial
Speaker #4: organization , year .
Speaker #4: including
Speaker #4: customer maybe a
Speaker #4: support and
Speaker #4: marketing .
Speaker #4: And
Speaker #4: field sales
Speaker #4: .
Speaker #11: Understood . Thanks
Speaker #11: for taking the
Speaker #11: question
Speaker #11: .
Speaker #2: showing no
Speaker #2: further questions at
Speaker #2: this
Speaker #2: time the
Speaker #2: . Thank you for your
Speaker #2: participation in today's
Speaker #2: conference .
Speaker #2: This does
Speaker #2: conclude the
Speaker #2: program .
Speaker #2: You may now disconnect
Speaker #2: . Understood .
