Bionano Genomics, Inc.

Good day and welcome to the Bionano second quarter 2023 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to David Holmes from Investor Relations. Please go ahead.

Thank you, Michelle, and good afternoon, everyone. Welcome to the Bionano second quarter 2023 financial results conference call. Leading the call today is Dr. Eric Holman, CEO of Bionano. He's joined by Chris Stewart, CFO of Bionano. After market closed today, Bionano issued a press release announcing its financial results for the second quarter of 2023. A copy of the release can be found on the investor relations page of the company's website. I would like to remind everyone that certain statements made during the conference call may be forward-looking, including statements about Bionano's annual and quarterly revenue outlook, strategic and commercialization plans, anticipated benefits or improvements to Bionano's products, including the SAFIRE system, NX Clinical Software, or VIA, SAFIRE Compute, and the timings for release of such products and impacts of such products, anticipated milestones for 2023, the advantages of the SAFIRE system over current technologies, BioNano's anticipated benefits, and the timing of those benefits from its announced reduction in force and other cost-saving initiatives, the anticipated effects and benefits of BioNano's Recent reverse stock split and associated increase in authorized shares available for issuance. Achievement publicly announced 2023 elevate anticipated milestones. Advances in obtaining reimbursement of OGM and BioNano's expected expectations regarding study results and publications and anticipated benefits to these studies and publications in driving adoption of OGM. Such forward-looking statements are based upon current expectations, and there can be no assurances that the results contemplated in these statements will be realized. Actual results may differ materially from such statements due to a number of factors and risks, some of which are identified in BioNano's press release and BioNano's reported files with the SEC. These forward-looking statements are information available to BioNano today, and the company assumes no obligation to update statements as circumstances change. In addition, to supplement BioNano's financial results reported in accordance with U.S. generally accepted accounting principles, or GAAP, the company is reporting non-GAAP operating expense and non-GAAP gross margin. These non-GAAP financial measures are not meant to be considered in isolation. or as a substitute for comparable GAAP measures, should be read in conjunction with the company's consolidated financial statements prepared in accordance with GAAP, have no standardized meaning prescribed by GAAP, and are not prepared under the comprehensive set of accounting rules or principles. A description of both non-GAAP operating expense and non-GAAP gross margin and reconciliations of non-GAAP operating expense to GAAP operating expense and non-GAAP growth margin to GAAP gross margin are included at the end of the company's press release issued earlier today, which has been posted on the investor relations page of the company's website. An audio recording and webcast replay for today's conference call will be available online on the company's investor relations page. And with that, I will turn the call over to Eric.

Great. Thank you, David, and good afternoon, everyone. We are very pleased to provide a full report on our Q2 results as well as the business overall. We've had a great second quarter with overall global support for optical genome mapping or OGM on the rise, including important steps forward like recent approvals from the Israel Ministry of Health for the use of optical genome mapping in blood cancer research and OGM reimbursement for heme malignancies in the Ontario province in Canada. We've had several transformational product releases this quarter and more are expected in the second half of the year and we believe that these products will act as accelerants for our growth and start to bring new customers in from the sidelines who have been waiting on these products which will catalyze our entry into new segments of the market, like the high-volume segment. I think as everybody is aware, we also affected a 1 for 10 reverse split of the company's common stock. This step is a part of a process of elevating BioNano's stock price, which we believe will make it more attractive to institutional investors and will enable us to restore compliance with NASDAQ's listing requirements. I want to thank the stockholders for their support of this initiative. This step was an important one that we believe will provide us with flexibility as we look to extend our cash runway through the management of our expenses consistent with the initiative we announced in May of this year and providing us with more choices as we consider future financing options. We will now move forward and let the performance of the business speak for itself. For the business update, revenue for the quarter was $8.7 million, which exceeded our guidance and represented a 30% year-over-year increase compared to the same period of 2022. The Sapphire install base grew by 22 systems to 281 during the second quarter of 2023, which represents 43% growth over the same period last year. Something that stood out in the quarter was the consumables volume. There were 7,062 flow cells sold in the second quarter of 2023, and that represents 108% year-over-year increase compared to the second quarter of 2022. We announced two important products that we have been investing in and developing for some time now. They will play a significant role in accelerating the adoption of OGM on a global basis, and particularly for labs that run medium to high volumes of samples. The first is Stratus. Stratus is a powerful new mapping system designed to provide four times the throughput of SAFIRE when it's first released, and we expect that to increase. that will be in the field as part of an early access program over the course of the second half of 2023 and will ramp to full-scale commercial availability in the first quarter of 2024. The second product is VIA, which stands for Variant Intelligence Applications. VIA replaces NX Clinical by including optical genome mapping data alongside next-generation sequencing data and microarray data and now includes a powerful workflow for heme malignancies. VIA addresses serious bottlenecks in the application of optical genome mapping to various applications in hematologic malignancies with a simple and integrated workflow that drives visualization and interpretation and reporting across multiple data types including optical genome mapping, microarray, and next generation sequencing. We also released new kits for the ionic purification system which feature new chemistry for nucleic acid extraction from FFPE and tumor tissue. Now these kits are designed to provide samples that will be sequenced And we are still working on developing the optical genome mapping compatible kits for ionic. And we expect to have those in the field later this year. This quarter was a tremendous quarter also for publications on OGM applications in human clinical research. There were 32 publications validating the utility of optical genome mapping for applications in clinical cytogenetics research. We also submitted the second constitutional post-natal study manuscript that is developed through our clinical trials for peer review. We expect that to be published soon. Overall, publications featuring optical genome mapping are up 57% year over year. Finally, we announced the 2023 winners of the BioNano Innovator Research Program, which we established to fuel novel research using optical genome mapping. The three winners from Stanford University, Hospitals for Sick Children in Toronto, and Duke University will receive a SAFIRE system and optical genome mapping reagents to continue their projects, which we believe will open new areas of utility for optical genome mapping and be a big part of driving future adoption and growth. Before discussing key milestones for the remainder of the year, I'd like to turn the call over to Chris Stewart, our CFO, for an overview of the second quarter financials. Chris?