908 Devices Inc.

Q4 2022 Earnings Conference Call


spk_0: good morning ladies and gentlemen and welcome to the night and wait devices fourth quarter two thousand and twenty two financial results conference call at this time all lines are endless and only mode following a presentation we will conduct a question and answer session if at any time during this call you require immediate assistance please press start zero for the operator this call is being recorded today tuesday march the seventh two thousand and twenty three i would now like to turn the conference over to kelly gura investor relations please go ahead
spk_1: thank you this morning nine or eight devices really financial results for the fourth quarter a goal you're a good to convert thirty first tweet haunted hill if he had not received news really or if you'd like to be added to the company's the to be select please send an email interview i are at night devices dot com journey through april nine away it's not chief executive officer and cofounder and joe griffith chief financial officer before he began i like to remind you that management will make statements during the call that are forward looking statements within the meaning of federal security flaws these statements about material risks and uncertainties that could cause actual results or event to materially differ from doesn't have debated additional information regarding these risks and uncertainties appeared in that section entitled forward looking statements and the actually ventilate devices issue today for a more complete looking description creepy the risk factors section of the company's annual report on form can pay for the year ended december thirty first twenty twenty two and candidates other violated the securities and exchange commission except as required by law night devices declaimed any intention obligation to update or revise anything into production or forward looking statements by the because of new information future events or otherwise that comment kalkadoon time sensitive information and accurate only up with the live broadcast march seventh trying to integrate with that i would like to them to call over to cut them
spk_2: thanks jolly good morning and thank you for joining or fourth quarter twenty twenty two earnings call dropped twenty twenty two we continued on a mission to support the critical to life applications of our customers i wanna thank our team for their dedication and commitment to serving our customers throughout the year we ended the fourth quarter with eleven point six million in revenue per year total revenue for twenty twenty two to forty six point nine million up eleven percent from the prior year for the full year or desktop revenue grew at more than two times or overall growth rate at twenty five percent in line with are expected actions we also saw strong recurring revenue contributions or than one hundred percent increase your every year while the underlying need for a product remains strong as forecasted adverse macro economic factors impair their progress in queue for as previously communicated began to see protracted capital purchasing cycles emit twenty twenty two and we continue to see them here and few one while we anticipate the industry headwind to persist through the first half of twenty twenty three i'm confident in our long term trajectory and feel we're doing the groundwork needed for both near term and long term success we're keeping a tight rein on our operating expenses joe will provide more details shortly on some recent actions we have taken in that regard we're developing and launching new products to meet the growing demand for robust analytics at the point need we're pursuing diversified and market for and spiral processing and research and importantly irritating a solid task position with multiple years of runway we've made some encouraging progress throughout the year now i'd like to provide a brief update on our progress across the five focus areas we sat for twenty twenty two starting with our first objective of driving customer adoption bergdahl stop we grew our combined rebel and zip your face to more than three hundred and fifty devices adding eighty devices over the year nearly one quarter of these placements are within top twenty pharmaceutical companies with pen accounts now each having a half a dozen devices are more this larger combined footprint across a farmer it is important as it's strength and durability the serve these customers and allowed us to broaden our conversation as we define develop and launch additional bio analytic products we have also been feeding future rebel opportunity to broadening our base of users with more rebel orders from new customers than existing when looking at the full year roughly two thirds of devices were placed with new customers desktop consumable purchases and service revenues were up your of a year or more than fifty five percent in queue for we also received our second highest number of scheduled consumable orders indicating our customers and tend to incorporate revel into their twenty twenty three priorities oh yeah it seemed the bio processing industry and specifically the preclinical process development customers become under pressure in the second half of twenty twenty two we're still feeding enthusiasm for a products and a strong underlying fundamental need for more analytics the neighbor more advanced therapeutics our desktop devices today are being used in support of advanced therapies and the forecasted pipeline of cell therapy is a key driver of are expanding total addressable market in the coming year according to the alliance for regenerative medicine there are now three thousand two hundred and twenty active clinical trials for advanced therapies up slightly for midyear twenty twenty two and there's been an eleven percent year over year increase in the number of sell and gene therapy developers worldwide at the recent advance therapies week conference in miami this january the main theme with the need to accelerate corporate investment in digitization in analytics or messaging for the need to transition analytics firm disparate offline manual instrument to outline and online automated and connected solutions right clear for a handheld we grew our mx nine awake base past two thousand devices adding three hundred and seventy devices over the years i've mentioned in this year's united states president state of the union address tragically the opioid crisis continues with best of more than seventy thousand individuals annually this crisis continues to be a major driver of customer adoption in december the washington post ran a week long series on federal said the surge in the us the first article profile the season homeland security investigations agent who uses are mx nine or wait device an overdose seems to quickly determine when a lethal batch of that more hits the streets the article highlight the crucial time loss for desk it bleeds when sample are said to a lab which can take weeks to process the is just untenable
spk_3: the applications for trait that know the texan are pervasive we received multiple orders for the mx last year from the department of corrections in the in the midwest and the wet a minnesota corrections official noted that the mx nine weight has been an integral tool to combat the introduction of narcotics
spk_2: into a soda state prison as a result of such impact we're continue to build a pipeline of opportunity to the progression of testing trials and pilot programs that turn into valuable enterprise accounts in twenty twenty two we saw progression with fifteen accounts in pilot programs representing approximately one hundred units of opportunity up from a low have an account at year and twenty twenty one in addition we now have seventeen enterprise accounts with more than eight hundred devices have additional combined opportunity of fifteen percent compared to your and twenty twenty one overall i'm pleased with the adoption for new and existing customers across all or product line in twenty twenty two i believe that are hand helps provide diversification in twenty twenty three amidst the more challenging bio processing macro environment turning to our second objected accelerating commercialization we had targeted growing our commercial team to eighty team members by year and while we finish the year close to this target in the middle of twenty twenty two be shifted to a more strategic investment approach given the macromarkets this included bolstering our european president through leveraging are acquisition of traits analytics now as nine away devices gmbh we have a legal at the and base of operations in germany to better server european customers and to enable direct sales and support in the region turning to our third objective developing advancing or product portfolio we were thrilled to acquire trace analytics last august would strengthen our core microfluidics technology providing us with online a sceptic sampling and biosensor technology in january we launched maiden our first online device that connects directly to the by reactor providing real time monitoring and control of glucose and lactate in cell culture and fermentation process is maven enable sell three sterile and see sampling with no volume lot or prep required this approach reduces lot costs and says operator time thereby accelerating workflows we think of maybin as the rebels body as the two devices work in concert rebel quantity thirty three additional cell culture media nutrients including amino acids in less than ten minutes rebel marriages or microscale mass spec technology while maven incorporates discreet biosensors for glucose and lacked a protection which are to analyze typical protect using mass spec both devices are simple to use and measure key process parameters leading to improve bio process control we think to reduce lab cost and up time savings of the online connecting maven will resonate well with our customers in this market and we're excited to see thing to develop it's a great precursor to our rebel online as well we are seeing commercial contribution now for maven in queue for we shipped more than half a million dollars of maven and related sampling products to sell endgame map and fermentation customers as well as the oil and partners the key take way here is that we have a robust road map and strategy of process analytical technologies the on any one product you're creating a fool portfolio of complementary devices zip chip rebel maven and another new product will now later this year which will also be exciting and very differentiated for a handheld we expanded the capability of our mx i a device in twenty twenty two to detect highly toxic and illegal pesticides we collaborate with united states for a service a division of the us the a to develop this capability that enables it's field personnel to safely conduct pesticide testing a remote illegal marrow want to grow sites rather than to wait weeks for lab results the result of this work are driving conversation now at the state level on how to better equipped responders as an enterprise and create a the awareness to enhance their safety we value such collaboration with our customers as they can lead to impactful developments and expansion of our devices are arrow module released in the spring of twenty twenty one was informed by our customers and we've worked closely with our customers on it's validation we've seen significant adoption of the success rate with hundred shipped in twenty twenty two and we credit or close customer collaboration from time to time we select the work on customer funded development efforts towards the same commercial go on outcome in twenty twenty two projects included alternate mx configuration for longer run time with enhanced communications for drone integration and in partnership with rico for integration with spot boston dynamics nimble robot that climb stairs and for vs through rough terrain with ease yet it's small enough to use indoors we saw an uptick in que por contract and license revenue timing of such projects which joel discuss i focus commercially last year was the build upon the capabilities of our existing products and we're excited to start off twenty twenty three with a new product launch and are are in the team has a lot in the hopper for both are handheld and or desktop turning to our fourth objective broadening or bio analytics platform our goal is to become a key enabler a bio pharma four point out with a text stack of connected process monetary a critical product quality attribute analysis devices that inform model that support better real time predictive outcome data from our outline rebel device enables bio pharma researchers to identify and control key process parameters in bio processing workflows our online maven device enables monitoring and importantly control of the bay cell culture ingredient glucose or yep yep cms is an offline but simple to use device that provide rapid characterization of multiple product quality attributes over twenty twenty two we worked with leading institutions focused on developing and implementing new bio manufacturing processes and connecting our devices to the needed workflows our collaboration with uk based cp i as demonstrated the value of outline cell culture media analysis to inform beating strategies for improve cell growth dp i process engineers use real time data from the rubble the optimized nutrients resulting in increase in tighter by up to forty percent and a reduction in toxic metabolite accumulation and a significant reduction in design of experiment times in our alliance with em back in industrial academic consortium researchers are leveraging rebels outlined in forming power to develop predictive cell culture media feeding models for improved product quality and reliability we've also been working with t academic research institutions such as emory university where researchers are developing novel microbes library for carty cell therapy and are using rebel to inform beating strategy to control and optimized t cell activation in other user meeting in september mit research cheers underscored rebels value in their ability to rapidly monitor profile nutrient consumption of recumbent a be producing cells in a profusion process at conferences and in publication customers such as boehringer ingelheim biotech the food and university and university of connecticut highlighted zip zip high resolution and high sensitivity that is comparable to l tms method but with much faster separation and minimal sample volumes most recently in a paper published in the journal a pharmaceutical and biomedical analysis scientists from regeneron pharmaceutical noted that a zip zip c e m s system is an alternative and complementary method the more traditional chromatography and that i see a method to support the characterization of charge variance in different types of therapeutic and about it charge right analysis is critical for understanding the structure of biotherapeutics during drug development and product release we always delighted to hear our customers and collaborators out the value or death up the purposes in characterizing process and product attributes as we focus on creating a complete portfolio a complimentary products and finally turning to our fifth objective laying in omics foundation aside to seek to understand how protein and metabolites orchestrate a cell function is a rising demand for accelerating mass at the workflows which is critical when working with large sample set as we've shared previously we partnered with the university of washington and thermo fisher scientific to evaluate the coupling of our prototype microfluidic chips with very fast i entrap mass specs for proteomics application in december in collaboration with their partners we presented a poster at the world who pull conference that demonstrated the prototype chip ability to deliver increased sensitivity ten times faster than traditional name scout liquid chromatography we're excited about the research progress we made in twenty twenty two with eat advanced microfluidic chips and look forward to continued scientific progress this year overall watch you for twenty twenty two presented challenges you progressed are pull your objectives and we remain confident about the value of our technology platform and the as and we see for real time analytics at the point of neat with that have turned the call over to joe for more detail on our financial thanks kevin starting with our full your results total revenue for the full year twenty twenty two was forty six point nine million up eleven percent and forty two point two million in twenty twenty one product and service revenue from and else was approximately twenty nine point five million for the full year twenty twenty two compared to twenty nine point two million in the prior year product and service revenue from desktops was fourteen point nine million for the for your twenty twenty two growing twenty five percent year over year and in line with our expectations of two times or overall growth rate recurring revenue for the full year was fifteen point seven million compared to seven point eight million and the prior year period of presenting growth one hundred and one percent recurring revenue growth was driven primarily by handheld accessories and consumables including the arrow module service revenue across both handheld and us desktops and the for consumables many relate to rebel kits license and contract revenue for the full year twenty twenty two was two point four million compared to one point one million in the prior year period licensing and contract growth was driven by incremental funding secured in the fourth quarter of twenty twenty two related to exploratory commercial work are doing with partners which expect to conclude and twenty twenty three gross profit for the four year twenty try to was twenty six million as compared to twenty three point two million in the prior year period
spk_4: gross margin was fifty six percent for the for your twenty twenty two as compared to fifty five percent to the prior year period
spk_2: this point recruitment as you think i have to twenty twenty three we expect are gross margins excluding stock based compensation an intangible amortization to be in the mid fifties prior periods we can do they expect that was scale will be able to expand or gross margin to the high fifties operating expenses for the four year twenty twenty two or sixty one point four million as compared to forty five point three million and the prior year period this increase was driven primarily by an increase in personnel related costs including an increase in stock based compensation or four point five million net loss for the for year twenty twenty two was thirty three point six million compared to twenty two point two million in the prior year well we're pleased with our world results beer that given shared experience to slow down and coupons with that contact let's look more closely at our fourth quarter results revenue for the fourth quarter twenty twenty two with eleven point six million compared to fifteen point eight million in the prior year period he called and que for twenty twenty one we had a large ship the next night away devices to the us army which totaled approximately eight million making that my usual period to compare and revenue from our mx nine away product for the fourth quarter twenty twenty two which seven point one million which included fifty five and next night away hand held device shipments the top revenue for the fourth quarter twenty twenty two was three point three million this included pens the chip interfaces three rebel devices and i first made and shipments this represents a decline a desktop revenue or twenty three percent and was primarily due to a decrease of rebel to placements after certain part with growth and service consumables mainly really to rebel kids and product revenue from maven and related sampling devices in fact desktop service consumable it's revenues were up more than fifty five percent for the fourth quarter life under contract revenue for the fourth quarter twenty twenty two was one point two million compared to zero point three million and a your period gross profit was five point nine million for the fourth quarter twenty twenty to thirty nine point one million for the prior year period gross margin was fifty one percent for the fourth quarter twenty twenty two as compared to fifty eight percent for the prior your period the because and gross margin was largely due to fewer device shipments total operating expenses for the fourth quarter twenty twenty two were sixteen point three million compared to twelve point seven million in the prayer period that loss for the fourth quarter twenty twenty two was nine point eight million compared to three point five million and the prayer period we ended twenty twenty two with a hundred and eighty eight million in cash cash equivalents an additional fifteen million a debt outstanding i can imagine we're maintaining our disciplined approach to capital deployment were being proactive in efficient learned as much as we focus on our product innovation market penetration and commercialization efforts a man with these efforts here and twenty twenty three we recently reduced or headcount by approximately six percent and expect or headcount to remain relatively flat for twenty twenty three as we prioritize roles and responsibilities across the organization
spk_1: we are two hundred and twenty seven employees as of december thirty first twenty twenty
spk_2: you're talking to keep operating expense growth below ten percent between twenty three excluding expenses related noncash stock based compensation and intangible and cash consumed from operating activities excluding working capital for the for your twain twenty to increase modestly to twenty four million compared to seventeen million and the prior year period the increasing cash used was primarily relate the her expansion the key focus for us is running a business with an eye toward profitability we have multiple years of cash runway and a well capitalized to support a long term growth objectives looking ahead and twenty twenty three expect revenue to be in range of forty eight fifty two million representing growth of to present to eleven percent over four year twenty twenty to seven percent growth at the midpoint i've of the test earlier your continue to see protracted sale cycles cycle more conservative capital budget particularly in the bio processing and market but you expect to continue to the first half of twenty twenty three and that anticipate a similar signaller trying to twenty twenty two at this point or like turn a call back together for causing comments thanks joe for twenty twenty three we continue to focus on our core wrote objectives first grow revenue by penetrating new account and radiating across large bio pharma account as well as progressing handheld device pilots to enterprise scale back advance and broaden our product portfolio with simple smart and connected devices with an emphasis on bio analytics solutions and finally heard lay the only foundation to address emerging proteomics and the pebble omics opportunities we believe nine away devices is uniquely positioned to capture the opportunity in front of us we have multiple new product releases in the process analytical technology space building a complimentary device portfolio with the first rd lodged in january and a second later this year we have a diverse offering with our handheld devices in the brand space we believe we can help will continue to be critical with rising geopolitical uncertainties and the ongoing that know crisis
spk_5: and finally we have a strong cash balance with the runway be on twenty twenty five as we have remained efficient and thoughtful on spend and headcount working to ensure expenses are not outpacing or revenue growth
spk_6: with that will open it up to questions
spk_0: thank you sir ladies and gentlemen we will now begin the question and answer session if you would like to ask a question please press star followed by the number one on your telephone keypad if your question has been answered and you would like to withdraw from the queue please press star followed by the number two and if you are using a speaker phone please lift your handset before pressing any case
spk_2: your first question will come from matt larue at wm blair please go ahead
spk_1: he good morning my question and telling you that is gonna bit more detail on the the head charges you seen or with and by a process and anything your copy by company to certain didn't we for the different taken different levels of them had whether or not
spk_2: which features what yours he specifically i call up will be charging pop a snob method for was not biased but an additional detail as he will twenty helpful area have too much of it yeah for sure i don't think our our observations are are too much different from what others are seeing out there were obviously selling our products into the preclinical process development spacesuits and not the gmp space or here largely and and yeah sweet me as we will we be forecasted in in are cute recall we are seeing those customers just under under more pressure and and we just overall see deal velocity slower there in that starting in the second half of last year and think that you're taking longer and and we're just seeing people are being more thoughtful but the investment of the the cash and that that them that you're that prolong purchases and and cannot evaluations and and steps and it i don't think you've seen a change in the underlying the me and particular to think about against therapeutics and and where the world's going in the need for more process control to support those more advanced therapeutics and a your we habit a good foothold in in top form of but your
spk_7: right or we do have a substantial number that are that are small biotechs as well so she always seen some pressure with those customers or up across border
spk_2: okay on a nathan civically
spk_8: in other not there for a couple months be deduced maybe add any colorado come early conversations with potential customers are they're responding to the austrian whether they're feeling ill glucose lucky enough to move the needle and then even pikachu what their
spk_2: populations are about so the amplified to that that make an offer of the time yeah yeah for sure every week we were excited about maybe we just launched it in in early january we did have some first sales of about half a million dollars will bit more of have made them related products into for as as we're prepared for that launch and getting for the out there are publicly of events therapies conference in in miami and it it's a it's a we're just developing the funnel now right and we'll work through that and having these conversations i think it is a very into the product for to go to get it goes for to that call it bread and butter and lights glucose lactate very complimentary to rebel we think given as as rebels buddy we also think about that as a prelude to rebel on as a while rebels leveraging art for microscale that spectacle g e bay been using discreet biosensors for glucose in lactate again which are to analyze that are difficult to jack using our mascot technology and the maven is bringing the a sceptic settling technology which is a critical enabler on for online connectivity and and we do get that about that online connections of devices is where that future is going to just reduces lab costs operator time and and we'd be that resonates well and market specially where where we talked about some of the pressure some being labor and some dangerous
spk_7: the tighter us them the overall so we think it's great precursor the to double online and individual conversations have been struck
spk_2: okay if i could squeeze one more am it you never show up for cabin just as were thinking about the build for the year
spk_7: what wouldn't be what are you from passionate about what they're looking for and getting factors to make purchasing decision that thing for some of the the larger byproduct companies are so nice you'd be stuck eating and there's maybe mandate relative one their lapping tough card when it comes to get any cycles
spk_2: moving up the and executive change to make decisions actually him what can i get key swing factors that might help get people them to stop moving on and make a person's gun yeah who and didn't work we may be a different dynamic than that be stocking world there because again what being used in that preclinical process development cited you know and and and in our conversations you'd be a good still i think is causing just some conservatism there and that i'd say that during these times really and focus with the get to make them successful and to have them show better outcomes are getting a the the new technology guy changing the way they do things and and so i think that's been going well and in fact we got some recent commentary that in in some cases we've we've or customers have been seeing significant tighter increases by employing a rebel so we're looking to really capture by that and and really looking to use that as as leverage point to wide op rebel now and there's also a couple other in points that that we look towards as we think about twenty twenty three the consumers and service revenue for the desktops were up about fifty five percent for que por and and the quarter also contain that the highest
spk_7: the second highest number of voters are we gotta received for scheduled consumable are so these are orders that are meant to ship over twenty twenty three and and that to us means that people are getting back to work in and incorporating rebel into their priority so we see those as as positive indicators
spk_0: great and seven
spk_2: your next question comes from penny soda at s v be securities please go ahead he hires that thanks for taking the question so maybe just a clarification one for
spk_9: and joe maybe you know he can you quantify was the army contribution here in the quarter i mean i appreciate the tough comes from a last year but just wondering what was the army got growth and maybe units or the ex army growth that you're seeing and what of that mean for amex and nine away
spk_2: ramp and twenty twenty three absolutely that's funny so you're right though there were no us army to buy shipments out in cuba where we concluded those into three are there was that eight million had when for to for now relate to the device revenue and you poor twenty twenty one of the year to queue for trying to wait to it was in there was approached me two million and consumables accessories are shipped to the us army mainly the us the arrow module and that feel that we mention that we secured and two three to continue to see shipments there are now we're we're in to continue to work on the senate press count that we think they're our future opportunities it will recognize a service revenue overtime or under two vices has been deployed the last eighteen or twenty four months and in a dog with sit there could be other branches of them us army the editors handheld devices in the future so we turn the page yeah we did about three hundred seventy and max nine away of placements for twenty twenty two and city opportunity to build on that despite the approximate hundred units with the army and twenty twenty two
spk_10: at and i think if you if you add to that john and think about the the contributions outside side of the army rated that that out of that fifteen point eight in the week we saw growth with about fifty percent from two for your of year due stands army if you will sands army devices
spk_9: and got it the three help of and then
spk_3: you know a story please be speaking you know heading here and to twenty twenty three mean you have more products than you have had before of with may than than and tracy to as well so
spk_2: you know can you may be start to us about sort of how should we think about the the growth on the life sciences side of the business especially when the rebel and i'm you know you talked about a strong order book here as well on consumable so in a sort of how should we think about that but within the context with guide and then i'm kevin up just wondering where the six percent reduction in the workforce was does that change anything on the commercial and failed aspect for rebel and maybe maybe i'll start and it to job and then talking about the six percent production but over the quarter with replace thirteen desktops of over the quarter not included about a half million dollars that of new products are maven and and related so eighty devices over the year not and putting made in in that number answer we're really focused on expanding that product portfolio as you mentioned and and we have that strategy to to really focus on the process analytical technologies and said what's that at really now allowing us to drive conversations that a different level because now they're these are not disparate products as you know these are all interconnected very complementary to one another and it's allowing us that to raise up that conversation a as a partner to our to our customer so so was rebels is one thing it and that the strategy as a point to having multiple product serving that market segment we think is very can be very positive over the long haul is there as we think about you know kind of even trace may be expanded yeah home more broadly across a portfolio yeah we we set the guidance and come to that kinds of seven percent and pick about the letters to cheat that we consider the low end of course but made things would you wouldn't be going on fever and a sword spend a lot time ensuring the midpoint set up properly and how can you cheat at high end as we marched to the year so you'd line of sight and to what we contemplate it as we sit that guy in that a lot of analysis on the run rate assumptions for each of our channels and today was seen customers working through the contracting and return the process
spk_11: he to take a few quarters including some of these opportunities are in the guide but we have diverse precipitation not just read one even with our handouts and the forensic space as because as options to navigate as we see some your term pressure and the by oppressing space so you can see some product nick ships
spk_2: but i would say is we we think about you one you seen some continuing our slowness but good rep activity and conversations and so taken some time to close but directly we're likely to see our growth rate into one similar full year range of stuff and good ground to cover up with work maybe i can hit for a moment he died the six percent reduction to yes we're not sussex production the six percent reduction of our headcount in and really that that nothing more than maintaining our are disciplined approach to to how we deployed capital we've we've always been quite thoughtful and in that regard and if you look at our or casper numbers so we hope it it tells you that story and we want to continued to drive efficiency and and being a lean organization so group were being proactive to to focus on what banners the product innovation market penetration and are in our commercial efforts that but we did reduce headcount by bob six percent and now expect the headcount to remain approximate a flat for the or twenty twenty three as we prioritize rosemary sponsor abilities or across the organ wheatley spread that impact across the company a handful in the commercialization more focus within the marketing and be decided things and keep in mind right we grew very quickly or the idea of and and now we're two years in and and we just see areas to optimize and are organizations
spk_9: so we've been very careful or to consider impacts are on a commercial objectives and and we'd love really good good position
spk_0: and don't be a really as you know again being good stewards of catch with the just absolutely don't want are expensive to the outpacing are or revenues in the short term
spk_12: help how output as thanks that's it for me your next question comes from dan areas at steve off please go ahead
spk_13: a guy is that evans damper on for them
spk_7: thanks for the questions ah me weakens start with
spk_13: sleeping macro head when the see in bio pharma is having a pretty good confidence that things will get better in the back half of the year it is something in your conversations with with customers that that gives you confidence and in that outlook
spk_2: it is it ties the feeling of his plan and you hope that things get better the but it or are you see seeing she's and brings use currently in in within your conversations that is my first question yeah you're absolutely happy to discuss that have as yet woodworker of course not the only company are talking about some macro impacts and many that the by processing companies in space have been booked bill ratios that that are can be less than one that that they been outs for the first half and twenty twenty three and and i i think we we see that the similar conservatism across that the customer base and obviously we don't have that level a backlog seat and more directly with us i would say we we are seeing some positivity it's and and some positive early signs out of these customers and as we set up a couple watching for indicators there on that we do our or second highest number of consumable orders on on the books which indicates there that playing get to work here in twenty twenty three and and prioritize or rebel so we are we are seeing that but yet we are just in picking the context to the guide and and are competent there were copland up and they are cognizant i should say that we changed our our guide and into three with the with the ebbs and flows through the timing of the the us government and and macro impact overall and out we had to get at it in front of it at that time but so we're now taking it a very thoughtful stamps or pressure or to make beings to the upside if you well and and we're not guiding to recovery we have not seen so we don't want another situation like in in two three where we had to take down that guy we're we're giving that best few weekend that possible but we believe is achievable here and twenty twenty three or with some room to the outside and and improvement as we progress three twenty twenty three and and see those customers and getting back to work in and adopting and i would point out that beyond the biasing headwinds we've seen things lesson a bit compared to keep three are handled and and uniqueness about nine or wait is that we do have diversification of markets with their hand held that and and and also of course that the new products we mentioned one of which is out in another coming in and frankly some geography or word been investing in in the immediate area and and we're starting to see that
spk_12: a often and having more conversations with nato month member countries given the geopolitical landscape self good amount of confidence i would say for us here at as we sit here today and and will will keep cheaper again we don't want to be or tapping a a a recovery that that we haven't seen
spk_14: gosh you know that a super helpful ah and then i mean you get you did talk a lot about consumables of how amish as i used the nation is improving and you shall again also have a nice kind of a book there ah
spk_13: you know he to talk about this of bugs in in a of the i pad me the ip oh yeah talked about you know one kid per month ah for users and then having that kind of move up over the course of a year to up to you know me want to have two kids a month you guys house where are your are your kind of on a
spk_2: average you are with with customers there and in terms of that ramp yeah yeah absolutely so you're right we've been focusing on that call it target of of roughly one kid per month for active users are on average we certainly do have users that are at a higher number of jets than that will focused on those users refocused on understanding their their message their use case and how the trumpet that are to the world we reported in two three that we're tracking at that time closer to about a half a kit per month for for these active users i don't think we're dating material the report here as a difference or to that but maybe we're seeing some slight improvement and and will keep you poke poke your posted on that but the our focus really it's on those initiatives to to drive it over to long term and we're working with the experts and space we talked about some of those in a prepared remarks in including rcp i including users that that is that spoke publicly are are critical mass usually eating and in september and were really working to be engaged with are installed base with the regular cadence application and service and we've been layering on and twenty twenty three now he account aspect to the act and and were really implemented in programs to work with customers to share their success the helped drive that utilization as they see the benefits and and i just heard the other day in fact that one customers saying a fifty percent increase in tighter their process was attributable to rebel and so we're still trying to understand that and and work with these customers but just example of of the conversations that we think are important to be having now that will help drive that that number of utilization the one kids and beyond overtime and haven't made me to build on that to and in you know the rebel is just one element of a recurring revenue about we did see significant growth you know what bugs me a hundred percent now returning revenue for the full year and thirty five percent of a product and service revenue is in return of nineteen percent and the primary drivers were a service revenue for both handhelds and desktop
spk_12: contribute about forty five percent of that one hundred percent pie and the handheld a url accessories and consumables contribute about forty percent in the rest how was the remainder was from growth on a desktop and symbols and overall or are encouraged by the building desktop returning revenue and twenty twenty two which grew quarter over quarter each quarter and twenty twenty two and it's a pretty big piece about story even with a lot of me have kicked legalization today
spk_13: tasha know that that's super helpful
spk_15: and then maybe just want one last one of them sneak it in on the hand hounds i'm obviously now you have been the army contract rolling off i think is did spend a lot of time talking about yourself one on the nixon by existing and new cars result was all sounds
spk_13: really good great and there be and at the end of your commentary talked about ah any be able to grow the placements of enjoyment and twenty twenty three year over year so maybe you can talk about ah know how much i'm if you know if what's the betting guidance reflect
spk_2: ill i guess from purchase orders versions you know the you think that you might be like can expecting from a cell phone on her and how that sounds hollow olives today gives you confidence in him the outlook a group or recall before a lot and work and of you're working through don't have a lot of a backlog and in focus on kind of the opportunity ahead of us and and utilization of our salesforce to close i'm on deals so conflated with under the guidance for an inch includes moderate unit growth across all or devices with stronger growth in the back half of the year as but you are just stops yeah we're focusing on that broadening of the portfolio products as a whole with one salesforce driving or desktops and one touch to the customer and more were taken through with right metrics or to focus on as we have all your and twenty twenty three but are finding that as you broaden our product portfolio special me to subside with a variety of products and his piece the placement is not always maybe the best metric nine twenty twenty two and much of watching a third of our revenue was not from price placements but from recurring elements in also right now we think the best way to think about his growth of about dollars instead of placements but we are so fucking the street and we did he have passed it's just a stress to growth on the youtube based this even with the army devices and twenty two the secret on youtube based for each other products of handouts and desktops na see other your place up and and maybe they have an act that a little bit on the enterprise account funnel you're right we we talked about some in the prepared remarks there but we we saw an increase the pitching accounts and better in the pilot program that are representing about of hundred units opportunity that's up from eleven accounts of he had in in twenty twenty one and and and we have now seventeen enterprise accounts that represent as we estimate about a eight hundred devices that additional opportunity and that's up about fifteen percent and i compared year and twenty twenty one so we have plenty of funnel to work with and and are having great conversations or hand prospects and existing customers who are looking to go out devices and us army as you know is is that a large example of enterprise account but there are other customers in that i've been with the twenty two one hundred plus devices and this data
spk_16: this were really working with each of these customers to get budget allocation and in funding for purchase we're seeing some activity on the contracting procurement side which is which is very good at put some of these opportunities and and we do think and still mention we can have posited unit growth and the that we have really considered the status that that we just met
spk_17: ancient between july in in our in our guidance that we have provided today
spk_7: but i thank you so much for the help shit
spk_2: thanks your final question will come from jacob johnson at stevens please go ahead hey good morning everybody you maybe just her it to go back and to me than half a million a fountain in for here is that a good proxy her and how he should think about twenty twenty three and then the other question i'm a manager i'm curious to see think about man vs taligent therapy is could you maybe compare and contract the opportunity for maven vs rabble in terms of and market especially considering ah you launch may veneta a felon gene therapy hoppers the yeah i agree and heavy jacket the talk to some of that and el pass them to to jokes appears as if i get vacation to twenty twenty three that you asked for yeah i think maven has brought up like ability certainly interest from from a lot of the customers to eat shell and gene therapy particularly folks like looking at these closed loop systems if you
spk_9: will answer good traction and conversations and building the pipeline with them
spk_2: certainly with with map customers that that are measuring glucose in lactate taken a in fetch backs the actors a daily and and would prefer to not be drawing samples and and taking it out in their pt lab and and having this as a pro that just in their continuously streaming up every two minutes glucose and lactate and in some cases lot
spk_4: interest their taxi control based on that the glucose concentration and and the last thing i would say it's also received conversations in the fermentation market with the with the related sampling products and probes it's there's also values or to measure these parameters there
spk_7: in different name and your we did ship or first handful of mavens into for them for the official launch and total revenue for the maiden and related sampling devices so it's not just made was approximately six hundred k or into for know if consumables or but also related settling devices through our serial with oh yeah i'm partners
spk_2: are there were looking to build on going forward so we see maiden as as a twice my tree growth driver as he will have a full year or settles opportunity but it was based on the technology to our trace acquisitions your for the full year your perform a basis trace was about one point eight on point nine million and see growth on that overall business
spk_11: as because he points country
spk_18: at effects from at your and heaven and then they just as a higher level question for you kevin
spk_2: you know you're not alone in at eighteenth of weakness and instruments including kind of the prices analytics be it but it seems like but the long term opportunity it coming at some point i'm just here is what you think the inflection point and for you and maybe that are like probably didn't would expire or point out industry will be and maybe on upon your homage to the thing is gonna be driven by things he can control like new product launches than kind of the technology catching up to two what your has mostly eight vs and of customer demand had to move towards continues manufacturing and and this for financing
spk_7: yeah i think you're you're you're right i mean the future to us looks bright it it the timing i think in the near term and and where we see it it's really a couple of quarters
spk_13: there's no change in strategy here and in fact we're very excited around having beaten products coming to have that more complete operating and and that strategy of of beyond rebel the whole suite of products that fucking in that process and with the gold space yet the need to us has has not changed a i think those customers are are requiring such device
spk_2: is particularly it as that pipeline at their peak excuse to more more advanced modalities so from an inflection point you will see where rat as we get through the the year and and look as we get some traction with these new products but we're excited for who were we're going over the the long term data and just if i think one last one in just three rebel placement in the in the quarter i think it's a that prior answer that that maybe a pythons aren't the right way to think about the here but just anything to call out the three in forcier and and maybe how we should think of it is that right way to think about the first half of the year anything can assist epic to the fourth quarter yeah you're right i mean we we certainly did not replace the number rebels into for that would have expected and i know some of you my track the peers biotech lay off track or in the summers watch to show up there as that you might also while it for bio processing equipment showing up on auction sites as a gauge i know are a team is looking to buy gear from that in the aftermarket and house and as a civil and like that that we sitting dollars personally but keep in mind that was not possible or months ago and now it just wasn't there for i don't like the seen our customers having your options but some are i certainly do not like seen rebels have included in an auction and i did see that one situation so i think this is or an industry phenomenon more than a nightly a phenomenon but done yes two three eyesight you for rebels
spk_18: oh we're short of expectations minute or two trillion yen and innate take again the where we're looking at it is just that complete set of desktop devices which rate which we did place thirteen in the quarter and including that half a million of the new mavens and and eighty devices over the year and and that we're really looking this as a strategy
spk_0: ian and not the beyond rebels are really expanding that portfolio and and building off of the rebel and driving those conversations and complimenting rebel with that the case of made and looking towards things like online sampling so yeah i think right now needs leader times we just have to be working on the fundamentals which is getting his customers
spk_2: successful to the news customers are demonstrating such tiger improvements quality improvement time savings cost savings and a all that will help lead towards that inflection point that that that the answer
spk_0: make such as i say the question can injure

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.