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spk_0: welcome to some a lot of fourth quarter and full year two thousand twenty two earn call all participants are relentless and only mode we will say question following prepare remarks i will now through nepal over to my best advice of gilmartin group for introductory disclosures thank you today some logic really financial results for a quarter and year ended december thirty one twenty twenty two
spk_1: copy of the press release is available on accompanied by sight
spk_0: before we began i'd like to remind you that management like forward looking statements gardener call within the meaning of federal securities laws but from a parcel into the safe harbor provisions of the private security litigation or format of nineteen ninety five any statement container call that relate to expertise and our production the theater event result
spk_1: or performance are forward looking statements i'll forward looking statements including without limitation those relating tarmac and opportunity gross margin and future financial performance protein content and database growth customer base diagnostic pipeline expectations for hiring and growth in our organization or based upon up on estimates and various assumption these statements a while mercurial risks and uncertainties the coast can cause actual results or them to materially death of a know the anticipated or implied by the forward looking statements accordingly you should not be under reliant on the statement for less with the section of the risks and uncertainties associated with our business visa for a risk factor section of up once and case files
spk_0: the securities and exchange commission today
spk_1: the conference call contains time sensitive information that accurate only out of the live broadcast today march twenty eight twenty twenty three some authors of claimed any and no obligation except is supported by law to update or revise any financial projections are forward looking statements are there because the new information future events or i realized i will not and all over to tripod executive chairman of from a lot of board of directors
spk_2: for the good afternoon paid for joining us as the last time we were in the potential approach on i got the opportunity to join with something logic board and twenty twenty one and was appointed deputy chairman in october of last year the i've been shown to go or fourth quarter results and healthy for twenty forty three i'd like to address the management of leadership position we announce today roy smile and step down and board member effect is today march twenty roy has been an important contributor to the company that built the the technology and overseeing the process of becoming a public company and we like to thank him for the difference over the last six months altogether more operational loving i gave a better understanding of the company and the people given my extensive background running commercial function it was clear that some the logic was added days that is david season we're to accelerate market adoption adults age is an example of that kind of town having joined simple logic and burst you go with highly relevant and diverse experience across nathan a senior was the turning fisher scientific in the third quarter last year we promote it time to senior vice president of life sciences with ownership of all commercial activities and operations function which is about as some illogic some or you there was no not to put together with and than the rest of the man theme and or we made some really important decisions to focus the company and deliver results in a more efficient van and to talk about this is well as how he has strengthened our commercial foundation and point one and i'm confident of his peers and the board but he's the right leader or something logic as we make this important transition the helped fuel companies next chapter we are bringing some really impressive power to the simple logic board of directors with the addition of is a three bedroom jason brian cathy his time period and title peterson i'm very pleased that to grind will join the board as chairman i would make on the board and the poor choices transition i personally had the opportunity to see citizens of unmatched ability to move from strategy to tactical execution and connect the dots and between when we work together and foundation medicine since then james has further demonstrated his proven track record it expanded and diverse rules kathy his are also join on board bringing our strengths in many areas such as regulatory my old compliance quality privacy technology and public company consideration all coming from the worst experiences and the area for some allergic spoken i personally think happy deliver impressive value from the strength and much more over the last few years promote working together with the theater in earnings when it comes to people related competent be there's no one better than time carry i'm thrilled tom will also join our important part has to leadership and teams across so many companies are gaining a deep knowledge of the land good players strategy energy to see that will serve some allergic well is expanded grab the a leadership and growth weinstein companies including over eight years on the exact sciences board will bring tremendous value i don't think it's possible the be in our industry and not no title peterson the will also join our board i'm excited for the born in the company to benefit from his the unprecedented experience from twenty three years and jp morgan as managing director and lead equity analyst covering medical devices lifetime tools and diagnostics this experience is be leveraged and enriched from serving as a sea of go have another innovative life size of great company adaptive biotechnology so welcome tyco palm kathy and jason or next chapter is fueled by great leadership with some of industry pod calvin before turning over the island i want to reiterate what i said in the press release we recognize that into the dynamic time in the industry and about to one of the broader market input signal logic in a unique position having an attractive and blaming core marchionne combine with are strong balance sheet we are well positioned to pursue strategic options as mention we plan to work with our advisors and our new friends and board leadership to evaluate strategic and transforming of opportunity and will provide updates as appropriate now to the call only added to review twenty twenty two key achievement and strategic priorities looking forward great friend detroit and thank you all are joining appear on the call this afternoon i'm absolutely thrilled to have the opportunity to leave the company the the death rate of growth in evolution haven't taken on while commercial spots and building in the third quarter of last year i've encouraged by the going on them an opportunity to expand a leash and the proteomics market those were
spk_3: what to do but the mandated clear that are permitted to him driving sustainable growth while importantly brigade improve the operational discipline the cash management to this organization i'm accountable for this mandate before i die then i thought what the bag are committed players across the globe i took over daughter leadership in the second half of last year and of watch the organization undergo significant changes in that time while challenging but he has been impressive in the dedication focus and i'm confident that as we navigate through the leadership transition it will continue to remain focused on consistent execution and improving every day to meet our customers me and expand our commercial impact
spk_2: the go to the border we are employed a deliberately simple business strategy
spk_3: free and acute focus on the link innovative solutions or as bandaid global customer base of bio pharma academia and government institutions while maintaining type expense and cash discipline everything was from the strategy and is built on import business believe that it we build an efficient and profit a business that can accelerate and improved customers are the productivity we will as a company increased value for customers and importantly for you our shoulders
spk_2: we need to recognize the was all logic is a twenty five year old leading innovation company it is only a two year old commercially focused enterprise it has been enjoying to transition the company of your firmly on paper now in the coming quarters and years that people in salary with a target of getting back to twenty that combined with exiting the fear that it on commitment to help do it we did the right people and right prophecies craft is all about the team and we recently brought on a new global commercial bigger mike de mayo to add significant industry death and global experience to the commercial effort
spk_3: we had a great product we just need to do the base and blocking and tackling a commercial execution to make that probably easier and better for customers to use my get a fever doing the necessary work that building the right prophecies and the indications are that it is having an impact and of course if you can't measure it you can't manager simple getting form of metres are now in place and visible daily to monitor our forward progress twitchy commercial blow it up for after double bass pro your solution we must be cheaper to make it easier to access or technology platform can we need to diversify the number of users on it we have to strategy to do this one is to the what we're doing the luna with braved the flexibility and power
spk_2: have some is going to do as market leading installed base of instruments they is the largest install base in the world and now is already significant interest from customers to utilize are combined solution what's ourselves can add a is available on ngs it will change the way growing on a week which is done and scale across the out second we're going to accelerate the expansion of of authorized site or kids business and open up more some logic authorized sites to allow institutions around the world to run
spk_3: on the some ganassi and alone last
spk_2: the type of format solution that other vendors use and we've been slow to catch up we only only launched this initiative late last year but are now in full scale launch of are authorized science program and see growth in it over the years ahead as of today we have a authorized sites up and running we we're expecting that number to more than double i pity the you across all of our by the a detachment we must continue to operate as a thoughtful partner to our customers engraving ourselves into their political translational and bowie discovery projects by helping them understand how to maximize the application of our technology in the long term we expect our positioning would
spk_3: he's kid comes to enable migration to larger multiyear partnerships we also expanding our geographic reach to better serve the needs of the global scientific community or she was focused on a devilish a foothold in a media and asia pacific in december last year tokyo based on a flight corporation signed on as the first some logic authorized site in asia
spk_2: early and twenty point three three forty two healthcare became the first announced saying in the middle east
spk_3: many or agreements or in the works with a substantial increase in our pipeline since he first announced the program
spk_2: it is critical to say the won't vote is important we must manage the business efficiently and with more get the plinth cash management and stewart the shareholder capital i'm committed to diligence and thing tight investment privatization and commercial michigan they deliver results consistently i right
spk_3: neither that on balance sheet is my lucky after and i indicated will make sure protected
spk_2: chinese provide more details on our financial performance and historic spend with some cash burn expectation later in the call there are more efficiency to drive in his business and my day one focus is to deliver them a lifetime schools business model when rather scale and run well as one of the most lucrative in the industry we will do everything operationally organically and as price that eat organically to get to that scale and profitability now let me conclude with the couple product development objectives for twenty twenty three the lookout for the launch of our ten take on a scam product is on track to launch by the end of the year which will extend our leadership in proteomic measurement capabilities
spk_3: we remain confident that our leadership and content allows our customers to discover even own biologically important proteins in a precise manner
spk_2: i work with a lunar to develop ngs proteomics products also remains on track with expectations dippolito murcia lives in twenty twenty four
spk_3: based on the pocket and disciplined approach i just described we are optimistic that we are revisioning the business for success i look forward to providing update on the strategic and product milestones over the coming year i will now turned the paul to sean blakeman see above to review our financial performance and outlook
spk_4: think that i'm
spk_3: thirty two our financial troubles or the fourth quarter and four year
spk_2: revenue for the three months and in december thirty first tweet tweet do with eighteen point eight billion dollars and eighteen percent decrease from twenty three billion dollars in the same period of prior year whether do with the all your points on to with a seven point seven million dollars a twenty percent increase from eighty one point five million dollars in the prior year fourth quarter twenty twenty revenue reflects poorly traction are kept rolling up nearly tripled not get this over keyboard from twenty one which to echo it out and said it the critical component of our strategy to return to of market growth but the current quarter it also reflects the change in our meeting on my lap work recognition with zero recognize that order versus one point nine million dollars in the fourth quarter and twenty twenty one gross margin for the fourth quarter according to wiki thirty one point one percent compared to eighty four point five percent and the fourth quarter the prior year gross margin for the four year twenty points you with the five point six percent compared to fifty nine percent in the prior year
spk_3: for your margins are in line the expectations and our fourth quarter growth margins are primarily in effect of human at the or east he i like and signal than previous articles that that the cia are courser as markings remain approximately fifty percent total operating expenses for the fourth quarter of point twenty seven or sixty point four million dollars a forty eight percent increase from forty point nine million dollars and the fourth quarter and twenty twenty one
spk_2: operating expenses for the full year twenty twenty two but you hundred thirty point one million dollars and eighty nine percent increase from one hundred and twenty one point five million dollars in the prior year
spk_3: aren't expenses for the fourth quarter of twenty twenty two or twenty two point six million dollars compared to eleven point two million dollars in the fourth quarter and twenty twenty one
spk_2: four year twenty twenty two our defenses or seventy three point four million dollars compared to three point five million dollars in the prior year phil general and administrative expenses for the fourth quarter of twenty twenty or thirty seven point eight million dollars compared to twenty nine point seven million dollars and the fourth quarter and twenty twenty one
spk_3: as to get a expenses for the full year twenty twenty two or one hundred fifty six point six million dollars compared to seventy eight million dollars and twenty twenty one the year over year increase and our expenses with primarily associated with our commercial team expansion public readiness and stock based compensation charges associated with destruction
spk_2: adjusted even after the fourth quarter at twenty twenty when the loss of forty nine point nine million dollars compared to let a justin by the loss of twenty seven point seven million dollars in the fourth quarter at twenty twenty one oh here tweet tweet adjusted cuba was a laugh at one letter to the point five million dollars compared to let a judge anybody lot of sixty three point six million dollars and twenty twenty one
spk_3: please the or press will be fun file with it as easy as it is acronym for reconciliation between gap net loss and non gap adjusted even
spk_2: and we ended the year with violent and thirty nine point six million dollars cash cash of the once the short term enough three for for your outlook when began twenty twenty three revenues in the range of even eat one million
spk_3: take it into fact the significant accounting a pack of our new that he the agreement this represents twelve thirteen percent road on apples to apples speakers have been the point of our games as we can to ramp up are just beginning to
spk_5: our guys have also driven by return of the financial wrote that our service business
spk_2: as we are starting to see the benefits of our commercial expansion with more sales reps in front of customers and international presence argue for twenty tweet you results are reflected of operations going into one so he expect similar added in terms of gross margins weeks that for your both margins and above the present range which is a result of our function or little or no in have you ever do that however it will be a big as we have been carryover heat the i people and package you one we legal right you want margins and below forty percent range with does it requires improving to drive the full your number that over fifty percent any problems we made significant extent production for twenty twenty three to reduce our casper excluded him a neighborly casper are cute three tweet tweet you burn rate was an organic high point that nearly forty million dollars and are expensive options are expected to drive that down by fifty percent to year and burn rate of a pocket between the important issue he in mind and you wanna be located cash impact of our twenty twenty two structure dials the from there that are casper and start significantly declining to reflect our food costs direction including a restructuring related items we still anticipate twenty twenty three casper and be like the one hundred and twenty million dollars as out have expressed our primary objective and twenty forty three it to continue to focus on a fine process and fiscal discipline to the commercial strategy to remove costs and for their cash
spk_3: with the opportunities and the people improvement otherwise projected about a florida for you and coming orders on our success at this point out like a to call that data three thank you john
spk_6: operator we are now ready for q in it
spk_0: thank you as a reminder like ask the question threads press star one one ayatollah ali and franklin a now to one question and and one follow up one moment while we compile the q and a roster
spk_7: and our first call become the question will be coming from than been an alcoholic your line of open great thank you i think thing the questions are congrats on now on the new role adam and team mate viviana could you start off
spk_8: to do we were fitted in terms he oh and freshly cooked sounds like you are or country years want to clarify that my and then be on he laid out
spk_7: you know lot of the thing that you've already seen track him with or in your current role but i'm just wondering like as we look ahead you talk about making products easier to use better for customers to use them building i process is could you just maybe speak to as we think about twenty three and twenty four how you would articulate what the kind of key changes or initiatives
spk_2: you'll be deploying to are drive more efficient growth i think then you don't let me take the second part of the question first and then i'll have ended over to try to speak to the interim title in terms of the comments around naked the products as easier as really the pivot that were making from was on almost entirely and services business today to distributed solutions are really getting that kids are authorized ice business up and running another i am to mention of the relate to that are an easier to use frankly is the tactical supported by fanatics with wire around our solution but we have your is not any more complex than other innovative largely distortions out there and market at the same time i think we you're underestimating the amount of lifted the bar to get a customer up and running and competent on the platform and the last thing i would mention the think my kids abuse is really incredible properly god implies that our partner aluminum and so in part either abused is really just allowing and enabling our customers out there who have and yeah systems in house or in considering buying one to be using and ngs form as the back in rehab cause the on a crush on the first or the unspoken hey then it's try it is the the is is carpet in an and he's the right leader to further strengthen our pipeline and our performance as well as manage expenses and preserve our cash
spk_8: we felt in europe as simple as this was appropriate in the context the simultaneously pretty gone for a season strategic leaders as new newborn members okay so he i'm i'm sorry to he is
spk_2: he's a full time they are you you're not yet not conducting a simultaneous search or in addition to having item in a seat or you are get to charge of the company affected today and ceo i work and in the near term going to focus on on on board
spk_7: board members and an hour gotten to execute on our strategy terrific great and then and then maybe i'm a follow up i know troy you mentioned this at the onset unique position to leverage or balanchine a newborn leadership to pursue strategic and transformational opposite option for maximum cheryl did i cutest maybe speaker that a little bit me about it in great shape the technology
spk_9: terrific you guys should have a a real pathway had to accelerate growth hopefully but what else he got us considering with the balance sheet you guys looking to do big deal
spk_2: are you looking to be acquired maybe a little more color on what the plans are here for this county sure that the be overhauled context is it as it is as you mentioned were we find ourselves that a unique isn't fortunate position to expand our footprint further of really super attractive and growing market a proteomics and now with a strong team and and board and placing combine that with a healthy balance sheet we have five hundred and thirty nine million dollars into the dead and twenty twenty two of the board committed to the actively pursuing strategic and transformational options that leverage that any position and involved about maximizing shareholder value i you know i think that you begin to more specific standards and difficult a bit of a big the zapper as diverse possible outcomes that only be pursued it if we be that simple goal of maximizing shareholder value so we'll keep you updated the key
spk_9: milestones in as we reach conclusions i make me like going to me what more interest on the kid business and then the bay service business
spk_8: i'm new to give it a little collar on how you're thinking about of a lot of the kids that was why is there a actually dated are either a lot of technical complexity for ah for a customer to adopt the kids are you ready for prime time and it always are a lot of interest wrong in the cover boy for maybe a little collar on through a ladder calvin and how how would we think about the split
spk_2: ah implicit in your guidance for the year eighty eight eighty four between how much that will be cut generated versus the service are related thank you sure the and lead what itself the getting larger questions when i get a break out that a difference between get the service but what i would say is we still expect the services business here in twenty twenty three to be the primary driver our growth and bar business for this year it just of gave the night and that you mention that i think the company mention of in the past there was the supply chain challenges that in forgotten our way of getting the site up and running or that that so we're making incredible progress getting psyched up and running
spk_0: we built our guild application support team that really required to be the on site for about the week that it takes to get a time install trained and up and running in the pipeline is tremendous in terms of the opportunities that we have
spk_10: thank you and i like question
spk_0: one moment
spk_11: our next question will become and some than as we have of hateful your mind is open
spk_12: okay those close enough hi guys
spk_11: adam aka my will come to that welcome aboard one to ask a question about customer growth if i could adam you guys have done i'm really nice job growing out the account base
spk_2: the on the flight it's and sixty percent was over the last year but see that revenue growth is well below so where do you see the disconnect there is just the new accounts are taking time to contribute more to your less pure point on sort of underestimating the ramp up there or that that the are and shipping and it's just being offset by some that our existing and that are trending downward and and i guess with inadequate just talk to how you feel about volume growth at some you're sort of anchor pharma accounts that would be great shirt in yeah i think you a good as you rightly know we don't have been tactic job the commercial team out there building up the you base and as you would expect in the business like this the accounts that we on board come in and they come in need don't typically with a small maybe even a pilot study so fairly small amount of revenue they go through the cycle of analyzing and understanding you know how to bend used in utilize that information in the discoveries and in on and and ideally we're doing our jobs around customer retention of they come back
spk_3: and so yes that a lot of the customers that we are bored during the course of last year to really start a small accounts but we have demonstrated it's a track record though a breeding on customers and if you go back and look at customers friends and became on in the second half of twenty twenty one
spk_2: the got a fairly good demonstrated track record of increasing from a sort of land and expand the think about getting into the account and then expanding our reach within that whether that did have a therapeutic area over that moving from discovery of the trailblazing translational a pretty good track record of working for that and so that's really what the expectation is and we got regimental methods to be measuring then as it relates a mother murdered the larger accounts we still have a tremendous in a relationship with no novartis as an example
spk_11: you can choose to be an incredibly important for us and we would expect that some of the large wars the have to be long be from time to time but that's why it's so important that we diversify the customer base which is really where we've been focusing our time and effort them
spk_3: okay i'll pull and then maybe just from a strategic standpoint eminent as you think about what's most important over the next twelve or twenty four months how much of a priority d c the work being done in a precision medicine initiative
spk_2: you obviously lot of promise in clinical proteomics but as a development their the heavy lifting lot of ways for just curious how we should think about that as part of of your investment focus over the next yourself yeah i think the that i to think about that is that mirrors
spk_11: the of really as we get out of end the last year we're going to execute really on a bogus related in the life sciences died of our business now most of leave similar by obama can eat other guns and i'm getting done me to do work into that position men does medicine those types of initiatives but tourists really focused on that or are you go research market building out stronger than portal foundation we have and then continue to expand the gets business
spk_13: okay last one for me if i could just they can add an additional i mean on on the commercial team expansions i think for those of us that were that were thinking about the case around the time of the go was one of them more compelling aspect to the businesses in the sense that i think you had fourteen commercial folks and twenty twenty and that was go
spk_2: in case something like a good one hundred to where do you think from here the commercial team ads will be most evident when it comes to growing the revenue base is it overseas a particular application which we look for just in terms of the impact of that that commercial scale can have serbian doesn't is that we get if you're absolutely right that i didn't building out that team i think it took you don't have taken longer particular beer selective which a think we have been in ensuring we get the right professional fanboy at a time where you're really good spot right now is the relate to the team and we have in north america both from say
spk_3: sales and service and support standpoint we continue to expand here and twenty twenty three and a media
spk_0: which is a book is jerry of growth and particular focus on the authorized by front and then we're building up from you know what was effectively on a team of water to last year in a pack to a more substantial team of being selected them wanna make sure that we're targeting the markets you know they are already in a ripe ripe like proteomics but there's plenty of opportunities for us to continue to build their in a pan
spk_3: thank you one not while prepare for the next question
spk_2: and i met question is coming from brandon folliard of jaffe july is open ethics good afternoon and related question brown i'm on the news to on the novartis contract revision the a while now what you get out of the new terms and you have any better line of sight and from of the annual minimum the associated with a contract with his be higher or lower now than they are more
spk_14: yeah i write it down here and a bit the key point i want to mention as it relates to go hard as we had a long history with them and extremely deep relationship with no bars in various areas of their research areas of you know geographic areas in which we serve them and the keeping the
spk_3: we were working through that as a related to that detention right and so the problem of ago bars perspective we're we're very excited to be there proteomics provider of choice
spk_14: in over for many many years to come and we continue to try to find ways innovative ways to add value to that partnership
spk_3: okay now big one person to turn the the ready not look for the year any color consists of bathing i mean twenty two with more seats thought pattern yeah but historically iraqis have been more for que waited and if he twenty three on playing out in the how different i guess describe on your degree it may be added conservatives are needed that the give given up change
spk_15: you gone on to your habitual my down
spk_0: yeah i mean yeah i would be it'll be willing to put out there that at the service business it's ya hard sometimes to predict any get an order and we got really ill factor in a certain significant material seasonality that means have you heard in my remark that i put a key one will have blood in the family like you or you know going into this year adobe i would model and with been paid nearly a mile been going out by when he jokes and we don't expect any particular quarter the petty or we'll have a back loaded forecast now they will be it's like ramp up we are getting more that by more kids coming online but adam point out that not a huge material numbers though it's not adding the
spk_16: as you talk to them again thank you are i like question my next question will be coming from kyle my say of chemical live open guy things as a family questions our gratitude to adam
spk_2: could have been work so on hanukkah ask one i guess hertfordshire i hear about aren't like a why now and then and why now is the right time for this evolution these politicians as well inaction there's not enough to denmark and leaders i mean the company performance has been not spectacular but not really help terrible you there's a just given that trajectory you were saying like what are the main areas you want coming to improve on don't forward whether that's profitability the account productivity or diverse find he has are based on i get basically what we're not going up here guys better than what was happening the laser focused on gonna go forward thanks you know college troy at with in our announcements are grounded on we want to do the most with the resources in assets that we had and at at the center of that is something really special special sauce with with regards to our technology had some a logic and and then emphatically alley and than that technology going forward so we have a great deal of confidence in our business and i personally seen ah adam take the reins forbid last year you'll see that if you look at our corporate debt how he's been the deal on the key metrics and d the cycle the seal cycle time i a can be lengthy the but added done all the right things than his help of been those curves in terms of brain on your customers than and pulling on our land and expand strategy or in terms of the strategy of how did how to grow a that the the company going forward and has a clear plan of for that now turned over to her sure yeah thanks dr i is that the strategy it's fairly straightforward for as in terms of don't really think about to from a short term perspective we got a execute by so we had arguably too many priorities in our and we were spreading has still fairly thin we got incredibly talented and passionate employee base at the same time in other ones working on seven to ten programs and stuff to do any of them as well so he made a significant shift we really focused on the bike on a follow up are fewer
spk_3: set of priorities focus on serving our lifetimes of customers the second thing is really continue to build out the strengthen their commercial foundation i touched on that earlier terms where we're expanding geographically and housing touched on her but we need to be doing the really support our customers in both that sales and post journey
spk_16: and lastly from a strategic perspective the gives of the confidence is expanding are offering so we got the authorized strikes program up and running a great pipeline to be getting those sites installed giving customers the convenience of understanding and sample to was in boulder or running some skin as a and comfort of their own last
spk_17: as well as what we're doing with aluminum and and i'd be remiss if i didn't mention the there's been a heck of a lot of hard work going frankly for years here at some allergic to launch the ten k some skin as a by the end of this year with will continue to extend our market leadership a police to content with were highly competent to provide greater disk
spk_2: every for a customer base can a poker they've got an anatomy to home for you on on e m is kind of wondering would you have to make any threshold changes daggers to the company and a half of a in order to kind of unable and the catholic salary the decentralize good strategy and i'm right to that a thorny update on the diagnostics he knows he altered is alternatives tragedy
spk_3: was announced a month ago
spk_18: sure how i think it relates to structural changes those are well we've like those the consistent with well lady will be mentioned at the end of last year but in advance jp morgan getting worried about get on a lifetime supply of our business so we have pivoted the organization
spk_2: we're fairly early in a way it is focused on sir than a both that customer base commercially as well as ensuring the animation deprive the we've gotten in our in the pipeline and prime means when pipeline are all focused really on at life scientists course and and customers
spk_16: as it relates to the the ds side yeah i think as we mentioned will get explore a strategic options there and we did that and and at this point
spk_3: and we don't intend to only spin allergy and platform is absolutely critical to the continual and the need that many of our my former life signs and customers and the key differentiator us so we want the on the computers for their needs on that entire journey from discovery all the way through translations and clinical
spk_19: gotta on a kind of ask ask one work with create cures happy to them a couple metro to notice have ten killer long term road map here twenty five when that to pay for it happened be announced my the know adam you were with the company when of is a given out vitro you came on after i believe how excited are you guys for that i had another other companies are to god of
spk_2: they got of have your eyes on like a the feature that you know was giving your bounty could be attractive can go hard survival yeah
spk_3: and you're right i was on board when the deal was announced in close i'm extremely excited about the we're a team in san diego is dealing on
spk_0: you know in addition to strong intellectual property and other the intangible assets week we got incredibly smart group of scientists and and professional down and some diversifying an our base of operations just mildly in our eyes the border area into that team there in san diego where are you seeing
spk_2: oh some amazing as energy and and really amazing output from that game
spk_0: thank you back a close race q and a session i like declined the car over to add on pass for housing remarks please go ahead right thank you so much operator and thank you everyone just for lipton onion i get a special thanks to the investment community are dedicated employees and of course our customers thank you very much the by it precludes great conference call think you off joining you may disconnect now and please enjoy the rest of your evening
spk_1: you welcome to the melodic fourth quarter and full year two thousand twenty two early call all participants are relentless and only modes we will say question following prepared remarks
spk_0: i will now through the ball over to my best advice of gilmartin group for introductory disclosures
spk_1: thank you today some logic really financial results had a corner and year ended december thirty one twenty twenty child copy of the press release is available on the company's website before we began i'd like to remind you that management will make forward looking statements garden nepal within the meaning of federal securities lot but from a parcel to the safe harbor provisions of the private security litigation reform act of nineteen ninety five and he statement containing call that relate to expectations are production the future events river or performance are forward looking statements all forward looking statements including without limitation those relating to market opportunity gross margin and future financial performance protein content and database growth customer base diagnostic pipeline expectations for hiring and growth in our organization or based upon up for an estimate and berries assumption
spk_2: these statements involve material risks and uncertainties the coast could cause actual results or them to materially the other know the anticipated or implied by the forward looking statements accordingly you should not place undue reliance on a statement for with the list of other risks and uncertainties associated with our business please the a risk factor section about one and case filed with the securities and exchange commission today the conference call contains time sensitive information that accurate only out of the live broadcast today march twenty eight twenty twenty three some order to claim any intention obligation except the fired by law to update or revise any financial projections are forward looking statements are there because the new information future events or i realized i don't i found all over to tripod like get it from and from a lot of board of directors for the good afternoon for georgina known as the last time we we were in the potential approach on i got the opportunity to join with something logic board and twenty twenty one and was appointed deputy chairman in october of last year the been shown to go for a fourth quarter results and open for twenty forty three i'd like to address the management of leadership tradition we announce today roy my first step down feel and board member effect is today march twenty roy has been an important contributor to the company developing the technology and overseeing the process of becoming a public company and we like to thank him for the difference over the last six months altogether more operational loving i get a better understanding of the company and the people given my extensive background many commercial function it was clear that some the logic was about it stays that is the season we're to accelerate market adoption adaptation is an example of that kind of town having joined simple logic and first you go with highly relevant and diverse experience across nathan a senior was with thermo fisher scientific in the third quarter last year we promoted and to senior vice president of life sciences with ownership of all commercial activities and operations function which is about half of some illogic simply there was no not you to put together with and in the best of the management team and or we made some really important decisions to focus a company and deliver results in a more efficient manner to talk about this as well as how he has strengthened or commercial foundation and five one and i'm confident of his peers and the board but he's the right leader or something logic as we make has been for the transition the helped fuel companies next chapter we are bringing some really impressive talent to the symbol logic board of directors with the addition of a three bedroom jason brian cathy his time period and peterson i'm very pleased that to grind will join the board as chairman i will remain on the board and support cases transition i personally had the opportunity to see cases the unmatched ability to move from strategy to tactical execution and connect the dots in between when we work together and foundation medicine since then jason has further demonstrated his proven track record it expanded and diverse rules crappy his are also join on board bringing our strength in many areas such as regulatory leave old compliance quality privacy technology and public company considerations all coming from the worst experiences and the areas the some a logic spoken i personally think happy deliver impressive value from the strain and much more over the last few years from promote working together with the field genetics when it comes to people related competencies there's no one better than time carry i'm thrilled that will also joined aren't born time has strengthened leadership and teams across so many companies while gaining a deep knowledge of the land good players strategy and adjacent see that will serve some allergic well is expanded grab the a leadership and growth weinstein companies including over eight years on the exact sciences board will bring tremendous value i don't think it's possible to be an argument three and not no title peterson the will also join our board i'm excited for the born in the company to benefit from his the unprecedented experience from twenty three years and jp morgan as managing director and lead equity analyst covering medical devices like phones tools and diagnostic this experience is be leveraged and enriched from serving as the sea of go of another innovative life a great company adaptive biotechnology so welcome tyco palm kathy and jason or next chapter is fueled by great leadership with some of industry pod calvin before i turned over the adam i want to reiterate what i said of a press release we recognize that is a dynamic time in the industry and about to one of the broader market it put some the logic in a unique position having an attractive and growing corn larkin combine with are strong balance sheet we are well positioned to pursue strategic options
spk_3: as mentioned we plan to work with our advisers and our new friends and board leadership to evaluate cheated and transforming of opportunity and will provide updates as appropriate now from the call them read adam to review twenty twenty two key achievement and strategic priorities looking forward great baby fraud and thank you all are joining appear on the call this afternoon i'm absolutely thrilled to have the opportunity to leave the company the the death rate of growth in evolution haven't taken on while commercial leadership responsibility in the third quarter of last year i've encouraged by the only woman an opportunity to expand a leash and the proteomics market there's work to do but the mandated clear that are committed to it driving sustainable growth while importantly brigade improved operational discipline the cash management to this organization and accountable for this mandate before i die then i first what the bag are committed players across the globe i took over water leadership in the second half of last year and i've watched the organization undergo significant changes in and time while challenging the team has been impressive in the dedication and focus and uncut
spk_2: after them that as we navigate through the leadership transition it will continue to remain focused on consistent execution and improving every day to meet our customers needs and expand our commercial impact to with the board we're employing a deliberately simple business strategy for you and acute focus on the link innovative solutions to our bad day global culture monday's a bio pharma academia and government institutions lol maintain type expense and cash discipline everything was from the strategy and is built on import business believe that it we build an efficient and profitable business that can accelerate and improved customers are the productivity
spk_3: we will add the company increased value for customers and importantly for you our shoulders
spk_2: we need to recognize the also large is a twenty five year old leading innovation company it is only been two year old commercially focused enterprise
spk_3: it has been sure you can transition the company of your firmly on paper now in the coming quarters and years that people will accelerate with a target of getting back to twenty percent probably road exiting this year that a document them to help do it we did the white people and right prophecies access is all about the team
spk_2: and with recently brought on a new global commercial bigger mike de mayo to as significant industry death and global experience to the commercial effort we had a great product we just need to do the base and blocking and tackling a commercial execution to make that probably easier and better for customers
spk_3: to use get a fever doing the necessary work that building the right prophecies and bogey indications are that it is having an impact and of course if you can't measure it you can't manager simple getting formula metres are now in place and visible daily to monitor our forward progress twitchy commercial blow it up for double bass pro solution we must be cheaper to make it easier to access or technology platform and we need to diversify the number of users on it we have to strategy to do this one is to the what we're doing the luna with when the flexibility and
spk_2: some in to do about market leading installed base of instruments there is the largest install base in the world and now is already significant interest from customers to utilize are combined solution lots are still the same ebay is available on ngs it will change the way growing on the research is done and scale across the world second we're going to accelerate the expansion of out of authorized site for kids events and open up more simple logic authorized sites to allow institutions around the world to run some ghana cafe and around last bit did the kind of format solution that other vendors use and we've been slow to catch up we'll be formally launched this initiative late last year but are now in full scale launch of about authorized science program and see growth in it over the years ahead as of today we have a authorized sites up and running and we are
spk_3: expecting that number two more than doubled i pity the you
spk_2: across all of our bio pharma detachment we must continue to operate as a thoughtful partner to our customers engraving ourselves into their clinical translational and probably discovery projects by helping them understand how to maximize the application of our technology in the long term we expect our positioning would be
spk_3: his kid comes to label migration to larger multiyear partnerships
spk_2: we also expanding our geographic reach to better serve the needs of the global scientific community or she was focused on a devilish a foothold in a media and asia pacific in december last year tokyo based on a like corporation find on the first some logic authorized site in asia early and twenty point three three forty two healthcare became the first are now saying in the middle east many or agreements or in the works with a substantial increase in our pipeline since he first announced the program
spk_3: it is critical to say the won't vote is important we must be manage the business efficiently and with more get the plenty cash management and store to shareholder capital i'm committed to doing from spending time investment privatization and commercial michigan they deliver results consistently iraqi
spk_2: neither on balance sheet is my lucky access and i indicated will make sure protected
spk_3: johnny provide more details on our financial performance and historic spend with some cash burn expectations later in the call there are more efficiency to drive in his business and my day one focus is to deliver them a lifetime schools business model when run a scale and run well is one of the most lucrative in the industry we will do everything operationally organically and as price that in organically to get to that scale and profitability
spk_4: now let me conclude that a couple product development objectives for twenty twenty three the lookout for the launch of our ten case on a scam product is on track to launch by the of the year which will extend our leadership and proteomic measurement capabilities
spk_3: we remain confident that our leadership and content allows our customers to discover even or biologically important proteins in a precise manner
spk_2: i will work with a to develop and she has proteomics products also remains on track with expectations to fully commercialized and twenty twenty four
spk_3: based on the pocket and disciplined approach or just described we are optimistic that we're revisioning the business for success i look forward to providing update on the strategic and product milestones over the coming year
spk_2: i will now turned the call to sean blakeman see above to review our financial performance and outlook think that i'm thirty two our financial results for the fourth quarter and four year revenue for the three months and in december thirty first tweet tweet do with eighteen point eight billion dollars an eighteen percent decrease from toy breed billion dollars in the same period of the prior year
spk_3: well i do with all your point one to with ninety seven point seven million dollars a twenty percent increase from eighty one point five million dollars in the prior year fourth quarter twenty twenty revenue reflects early traction are kept rolling up nearly tripled over keyboard from twenty one which to echo adam said if the critical component of our strategy to return to of market growth but the current quarter it also reflects the change in our mutual bio lab bilateral recognition with zero recognize that order versus one point nine million dollars in the fourth quarter and twenty twenty one
spk_2: gross margin for the fourth quarter of twenty twenty thirty one point one percent compared to eighty four point five percent and the fourth quarter the prior year gross margin for the four year twenty can you with the five point six percent compared to fifty nine percent in the prior year
spk_3: for your margins are in line expectations and our fourth quarter gross margins are primarily in effect of human after the or h i like and signal in previous articles
spk_2: that that the cia or courser as markings remain upright approximately be that the percent
spk_3: total operating expenses for the fourth quarter of a point to meeting or sixty point four million dollars a forty eight percent increase from forty point nine million dollars and the fourth quarter and twenty twenty one operating expenses for the full year twenty twenty two but you hundred thirty point one million dollars and eighty nine percent increase from one hundred and twenty one point five million dollars in the prior year
spk_2: our expenses for the fourth quarter of twenty twenty two or twenty two point six million dollars compared to eleven point two million dollars in the fourth quarter and twenty twenty one four year twenty twenty two our defenses or seventy three point four million dollars compared to wait three point five million dollars in the prior year
spk_3: self general and administrative expenses for the fourth quarter of twenty twenty two or thirty seven point eight million dollars compared to twenty nine point seven million dollars in the fourth quarter and twenty twenty one
spk_2: as you get a expenses for the full year twenty twenty two for one hundred fifty six point six million dollars compared to seventy eight billion dollars and twenty twenty one the year over year increase and our expenses with primarily affiliated with our commercial team expansion public readiness and stock based compensation churches associated with restructuring adjusted even after the fourth quarter order twenty twenty two when the last a forty nine point nine million dollars compared to that adjusted by the loss of twenty seven point seven million dollars in the fourth quarter of twenty twenty one oh here tweet tweet adjusted ebitda was a laugh at one letter to the point five million dollars compared to let a judge anybody loss of sixty three point six million dollars and twenty twenty one
spk_3: please the or press the we've been filed with it as easy as a good afternoon for reconciliation between gaap net lot and non gap adjusted email
spk_2: and we ended the year with violent and thirty nine point six million dollars cash cash of the month of short term enough three four for your outlook when project twenty twenty three women still in the range of eighty four million it into that the significant accounting impact of are you that he the agreement this represents twelve in present road on apples to apples basis of in the point of our games as we get any to ramp up are distributed our guide to the awful get my return of the financial growth in our service business as we are starting to see the benefits of our commercial expansion with more sell breaths in front of customers and international presence
spk_3: our keyboard tweet tweet the results are reflected of operations going and you want some expect similar edit
spk_2: in terms of gross margins weeks that for your both margins and above the present range which is a result of our function or little or no in have you ever do that however it will be a big as we have been carryover ethiopian full impact and he one we called right you want margins and below forty percent range with that have a question for me to drive the for your number back over fifty percent any problems we made significant extent production for twenty twenty three to reduce our casper excluding him a really casper are cute tweet tweet you burn rate was an organic point pointed elite forty million dollars and are expensive options are expected to drive that down by fifty percent to year and burn rate of profit between the
spk_6: your knowledge and important you
spk_0: he the mining you want the was in cash impact of our twenty twenty two structured items the from there that aren't hash brown star significantly declining to reflect our food costs action including a restructuring related items we still anticipate twenty twenty three casper and be like the one hundred and twenty million dollars and i'm expressed our primary objective and twenty forty three it to continue to focus on a fine process and better discipline to the commercial strategy to him with costs and project cash
spk_7: with the opportunities for the people improvement otherwise projected about and florida for you and coming quarters on our success at this point out like a trying to call that data
spk_8: freight baggage on operator we are now ready for q and it
spk_20: thank you
spk_8: as a reminder like that the question transplant i want one ayatollah ali and franklin the can now kill one question and and one follow up one moment while you papa vacuum and a roster
spk_7: and our first call become the question would be coming from then running up and how your line of open
spk_2: great thank you i think thing the questions are congrats on the on the new role adam on team viviana could you start off just do we visited in terms feeling the pressure lisa sounds like you are open for years want to clarify that mine and then be he laid out you know lot of the things that you've already seen traction with or in your current role but i'm just wondering like as we look ahead you talk about making products easier to use better for customers to use them building or a process is could you just needy speak to as we think about twenty three and twenty four how you would articulate what are it kind of key changes or initiatives you'll be deploying who are drive more efficient growth
spk_8: terrific then you don't have limited the second part of the question first and then i'll have ended over to try to speak to the interim title in terms of the commons around naked products as easier as really the pivot that were making from was on almost entirely and services business today to distributed solutions are really getting that kids are authorized a business up and running another i am to mention in the relate to that are an easier to use frankly in the technical supported by fanatics with wire around our solution
spk_7: what we have your is not any more complex than other innovative solutions out the market at the same time i think we you're underestimating the amount of lifted the fire to get a customer up and running and confident on the platform and the last thing i would mention the think my kids abuse is really incredible properly
spk_2: got in life a partner aluminum and so in parties have used is really just allowing and enabling our customers out there who have ngs systems in house or considering irvine one to be using and ngs form as the back and rehab
spk_7: twenty on effects on the first or the unspoken hey dan it's try it is within the borders in carpet in in and he's the right leader to further strengthen our pipeline and our performance as well as manage expenses and preserve our cash
spk_8: we felt in own as simple as this was appropriate and the contact the simultaneously pretty gone for season strategic leaders as new board members okay so he and i'm sorry to he is
spk_2: he's a full time they are you you're not yet not conducting a simultaneous search in addition to having adam in a seat or you are get him to charge of the company affected today and ceo a work and in the near term we're going to focus on on on boring our new board members in an hour again to execute on our strategy terrific great and then and then maybe i'm a follow up i know troy you mentioned this the onset unique position to leverage or balance you the new board leadership to pursue strategic and transformational opposite option for maximum cheryl did i cutest maybe speak that a little bit mean about it in great shape protect our
spk_9: he terrific you guys should have a a real pathway had to accelerate growth hopefully but what else he got considering what about she do you guys looking to do big deal
spk_7: are you looking to be acquired just maybe a little more koran what the plans are here for discounted
spk_8: sure i didn't have to be overhauled context is it as it is a dimension or we find ourselves that a unique is unfortunate position to expand our footprint further of really super attractive and growing market proteomic
spk_3: and now with the strong team and and board and placing combine that with a healthy balance sheet we have five hundred and thirty nine million dollars into the dead and twenty twenty two of the born committed to the actively pursuing strategic and transformational options that leverage that any position involve
spk_2: all about maximizing shareholder value i you know i think that beginning to more specific standards differ golightly the they make the zapper as diverse possible outcomes and only be pursued it if we be that simple goal of maximizing shareholder value so we'll keep you updated it key milestones in as we reach conclusions i make me like going to me what more into some kid business and then the bay service business
spk_0: can you give it a little collar on how you're thinking about of a lot of a catholic what why is that the role actual dated are either a lot of technical complexity for ah for a customer to adopt the kids are you ready for prime time and it always or lot of interest wrong and to cover by for maybe a little collar on the a ladder calvin and how how would we think about the split
spk_10: ah implicating your guidance for the year eighty eight eighty four between how much of that will be kid generated versus the service or related thank you
spk_0: sure the and lead limits itself the getting larger questions when i get where out got that a difference between get the service but what i would say is we still expect the services business busier than twenty twenty three to be the primary driver or growth and bar business
spk_11: for this year it just some of those gaining item that you mention i think the company mention of in the past there was a supply chain challenges that regarding our way of getting the site up and running or that that so we're making incredible progress
spk_12: getting psyched up and running
spk_11: we built our application support team that really required to be the alongside the about the week that it takes to get it's time install trained it up and running and the pipeline is tremendous in terms of the opportunities that we are thank you and i like question one moment
spk_2: on next question will become and some than as we have of hateful your mind is open okay that was close enough hi guys adam aka my will come to that welcome aboard one to ask a question about customer growth if i could adam you guys have done i'm really nice job grilling out the account base the gonna fly to sixty percent was over the last year but obscene that revenue growth is well below so where do you see the disconnect there is it just of the new accounts are taking time to contribute more to your less pure point on sort of underestimating the ramp up there or that that they are contributing and it says being offset by some that our existing and that are trending downward and then i guess with inadequate just talk to how you feel about volume growth at some samir sort of anchor foreign accounts that would be great sure again yeah i think you're a good as you rightly notably don't have been tactic job the commercial team out there building up the campaign and you know as you would expect in the business like this the accounts that we on more come in and they come in need of typically with a small maybe even the pilot study so fairly small amount of revenue
spk_3: they go through the cycle of analyzing and understanding and i haven't been used in utilize that information in the discovery
spk_2: and in ideally we're doing our jobs around customer retention as they come back
spk_11: and so yes that a lot of the customers that we are bored during the course of last year to really start a small accounts
spk_13: what we have demonstrated his track record though a bringing on customers and if you go back and look at customers friends and became on in the second half of twenty twenty one
spk_11: got a fairly good demonstrated track record of
spk_2: increasing from a sort of land in expanding the think about getting into the account and then expanding our reach within that whether that did have a therapeutic area over that moving from discovery of the translation the and translational a pretty good track record of working through that he so that's really what the expectation is and we got right matter to to be measuring then is a relate the even some of the that the larger accounts we still have a tremendous in a relationship with no novartis as an example you can choose to be incredibly important for us and we would expect that some other large orders the of the be won't be from time to time
spk_11: but that's why it's so important that we diversify the customer base which is really where we've been focusing our time and effort them
spk_13: okay i'll pull and then maybe just from most strategic standpoint eminent as you think about what's most important over the next twelve or twenty four months how much of a priority
spk_11: the work being done in the precision medicine and issues
spk_13: you know obviously lot of promise in clinical proteomics but as a development their the heavy lifting lot of ways for just curious how we should think about that as a part of your investment focus the next yourself
spk_2: yeah i think the that way to think about that is that mirrors the of really as we announced at the end of last year we're going to execute really on are bogus related the life sciences died of our as it's now most definitely similar by up on account of either a guns and i'm getting government who do work into that position does medicine those types of initiatives but tourists really focus on that for are you go research market building up stronger than portal foundation we have and then continue to expand the gets business
spk_3: okay last one for me if i could just sneak in and an additional i mean on on the commercial team expansions i think for those of us that were that were thinking about the case around the time of the i go was one of them more compelling aspect of the businesses in that sense that i think you had fourteen commercial folks and twenty twenty and that was going
spk_0: is something like fifty two hundred to where do you think from here the commercial team ads will be most evident when it comes to growing the revenue base of it overseas
spk_3: the killer application which we look for just in terms of the impact that that that commercial scale of can have
spk_2: serbia doesn't is that we get it you're absolutely right but i didn't building out that dream i think it took you don't have taken longer particularly beer selective which a think we have been at ensuring we get the right professional on board it takes time where you're really good spot right now is to relate to the team that we have in north america both from sales and service and support standpoint we continue to expand here and twenty twenty three them via a which is a focus dairy of growth and particular focus on the authorized by front and we're building up from you know what was effectively you know a team of water to last year in a pack to a more substantial team will be selective don't want to make sure that we're targeting the markets you know that are already
spk_14: right right like proteomics but there's plenty of opportunities for us to continue to build their in a pack
spk_3: thank you will not while we prepare for the next question next question of coming from brandon collier of jaffe july is open and thanks good afternoon when it's a question i'm on use tabs on the novartis contract him he a while now what you get out of the new terms and you have any better line of sight and from don't the annual minimum associated with their contract with his be higher or lower the help make before
spk_0: yeah they write it down here and that the key point i want to mention as of the likes to know hard as we had a long history with them and extremely deep relationship with no bars in various areas other research areas of in a geographic areas in which we serve them and the keeping the we were working through that as a place to that's deep bench bright and so the problem of a job our perspective we're we're very excited to be there by the only provider of choice
spk_16: in her for many many years to come we continue to try to find ways innovative ways to add value to that partnership okay now didn't one person to turn the the ready not look for the year on any color chances of facing a me twenty two with more seats thought pattern yeah but historically iraqis have been more for que waited and if he twenty three i'm playing out and yeah how different i get describe on your degree it may be added conservatives are needed that the be outlawed get another change or gone on to your habitual my now
spk_2: yeah i mean yeah i would say it'll be moly gonna put out there that at a service business is your heart sometimes to predict and you get an order and we got really ill factor in a certain significant material seasonality that means have you heard in my remarks that i put a key one was bloody if a family like you or you know going into this year adobe i would model of with been paid nearly a mile been going out by when he jokes and we don't expect any particular order the petty and we'll have a back loaded forecast now they will be it's like ramp up getting more than my work has coming online but adam point out that that a huge material numbers though it's not adding this you talk to them again thank you aren't one question next question will be coming from kyle mike say of california live open guy things as and family questions our gratitude to adam could have and work so on hanukkah just ask one i guess hertfordshire i hear about aren't like a why now and then and why now a the right time for this evolution these politicians as well emotion there is not enough he denmark and leaders i mean the comedy performance has been not spectacular but not really tell terrible you there's a just given that trajectory you were saying like what are the main air raise you want coming to improve on going forward whether that's profitability the account productivity or diverse find the has are based on i get basically what we're not going up here cause better than what was happening the laser focused on can go forward thanks you know college troy it it in our announcements are grounded on we want to do the most with the resources and after that we had and at at the center of that is something really special special sauce with with regards to our technology had some a logic in and then emphatically alley and van
spk_3: and that technology going forward so we have a great deal of confidence in our business and i personally seen
spk_16: adam take the reins forbid last year you'll see that if you look at our over deck al he's moved the deal on the key metrics and indeed the cycle the same cycle time i a can be lengthy but added that done all the right things than as help ah of been those curves in terms of bringing our new customer and and pulling on our land and expand strategy a in terms of the strategy of how did how to grow a that the company going forward and has a clear plan of for that now turned over to her sure yeah they've right
spk_2: i did the that the strategy it's fairly straightforward for it in terms of don't really think about it from a short term perspective we got executed by so we had arguably too many priorities it out and we were spreading are still fairly thin we got incredibly talented and passionate employee base at the same time in other ones working on seven to ten programs and stuff to do any of them as well so he made a significant shift narrative really focused on the bike on a follow up are fewer
spk_3: set of priorities focus on serving our lifetimes it's customers the second thing is really continue to build out to strengthen their commercial foundation i touched on that earlier cubs were we're expanding geographically and i also has gone but we need to be doing the really support our customers in both that resales and post bells journey and law
spk_18: happily from a strategic perspective the gives of the confidence is expanding are offering so we got the authorized rights program up and running a great pipeline to be getting those sites installed giving customers the convenience of understanding and sample to as in boulder or running some skin as a and comfort of their own laughs
spk_2: as well as what we're doing with aluminum and and i'd be remiss if i didn't mention the there's been a heck of a lot of hard work going frankly for years here at some a allergic to launch the ten k some skin as a by the end of this year with will continue to extend our market leadership as it relates to content which were highly competent the provide greater discoveries
spk_16: or a customer base how can upgrade these guys and anatomy to swap for you on on he and his kind of wondering that would you have to make any structural changes daggers to the company and a half of a in order to kind of unable and because like salary the decentralized good strategy and i'm right to that a hernia paid on the diagnostics he knows tree altered passages alternative strategy
spk_3: i was announced come up again
spk_19: sure how i did it relates to structural changes those are well we've like those the consistent with well maybe we'll be mentioned at the end of last year but in advance of jp morgan meeting worried about get on a lifetime supply of our business so we have pivoted the organization
spk_2: fairly early in a way that's focused on serve and of both that customer base commercially as well as ensuring that the animation deprive the we've gotten in our in the pipeline prime minister pipeline are all focused really on that life scientists course and and customers as it relates to the the ds side yeah i did as we mentioned will go explore strategic options there
spk_3: and we did that a and at this point
spk_2: we don't attend always been allergy and platform it's absolutely critical to the on and the need that many of our my former life signs and customers are the key differentiator forth so we wanted the only continue to support their needs on an entire a journey from discovery all three ventilation and clinical
spk_0: gotcha on it i got a scarf one war with great cures happy to them palmetto couple metro to notice every a ten your long term kind of run that here twenty five when that to pay for it happened be announced my adam you were with the company went of his agility and out vitro you came on after i believe how excited are you guys for that i had another other companies are the county that
spk_2: add a kind of have your eyes on like a the feature that he was given your bounty could be attractive can go hard
spk_0: sure i'll yeah
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