On November 9, 2021 NanoString Technologies, Inc. (NASDAQ:NSTG), a leading provider of life science tools for discovery and translational research, reported financial results for the third quarter ended September 30, 2021 (Press release, NanoString Technologies, NOV 9, 2021, View Source [SID1234594900]).
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Third Quarter Financial Highlights
Product and service revenue of $36.9 million, 23% year-over-year growth
Instrument revenue of $14.5 million, 13% year-over-year growth. Instrument revenue includes:
$8.5 million of GeoMx Digital Spatial Profiler (DSP) instrument revenue, 14% year-over-year growth
$6.0 million of nCounter Analysis System instrument revenue, 11% year-over-year growth
Consumables revenue of $18.0 million, 32% year-over-year growth. Consumables revenue includes:
$4.5 million GeoMx DSP consumables revenue, 224% year-over-year growth
$13.5 million of nCounter consumables revenue, 10% year-over-year growth
Service revenue of $4.4 million, 24% year-over-year growth
Cash, cash equivalents and short-term investments of $369.9 million at September 30, 2021
"NanoString’s Spatial Biology franchise is having a banner year, as we continue to build on our leadership position in this dynamic market and pursue our mission to map the universe of biology. Our GeoMx DSP instrument orders grew approximately 40%, as our Whole Transcriptome Assays using next generation sequencing readout appealed to customers across both discovery and translational research. We’ve highlighted the power of our new CosMx Spatial Molecular Imager with a newly-released dataset and manuscript that demonstrate in situ imaging of lung cancer samples using both the largest number of RNA targets and currently the only workflow compatible with formalin-fixed paraffin-embedded (FFPE) tissue samples," said Brad Gray, President & CEO of NanoString. "Meanwhile, our nCounter franchise posted strong instrument placements, while consumables revenue continued to be impacted by residual effects of the pandemic."
GeoMx DSP
GeoMx Installed Base: Grew installed base to approximately 225 GeoMx DSP Systems at September 30, 2021, as compared to approximately 100 at September 30, 2020
Spatial Organ Atlas: In October 2021, released an annotated reference dataset of whole transcriptomes from six organs spatially resolved using GeoMx DSP, providing a publicly-accessible database for understanding organ structure and function
GeoMx Publications: Increased cumulative peer-reviewed publications to approximately 70 as of September 30, 2021, with approximately 10 new publications during the quarter
CosMx Spatial Molecular Imager (SMI)
Branding: Introduced the ‘CosMx’ branding for our SMI platform. Together, CosMx SMI and GeoMx DSP represent a compelling portfolio of technologies that span the continuum of applications in spatial biology
First Public Dataset: Released the first high resolution dataset generated using CosMx SMI, including RNA expression from almost 1,000 genes mapped at single cell and subcellular resolution within eight FFPE non-small lung cancer specimens
Technology Publication: Published a manuscript in the online journal BioRxiv describing the CosMx SMI technology, performance specifications and applications of the platform
nCounter
nCounter Installed Base: Grew installed base to approximately 1,030 nCounter Analysis Systems at September 30, 2021, as compared to approximately 915 systems at September 30, 2020
nCounter Antibody Drug Conjugates (ADC) Development Panel Launch: In October 2021, launched the nCounter ADC Development Panel, a specialized gene expression tool that is designed to provide molecular insights into important biological questions and challenges of oncology therapies
nCounter Publications: Surpassed 4,900 cumulative peer-reviewed publications utilizing nCounter technology at September 30, 2021
2021 Outlook
The company updated its revenue outlook for 2021, with results expected as follows:
GeoMx DSP revenue of approximately $49 to $50 million, as compared to previous guidance of $48 to $50 million, driven by instrument orders trending to the top end of the company’s 40% to 50% expected annual growth range
nCounter revenue, inclusive of all service revenue, of $91 to $94 million, as compared to previous guidance of $95 to $97 million, due to reduced consumables utilization caused by the residual effect of the pandemic
Total product and service revenue of $140 to $144 million, as compared to previous guidance of $143 to $147 million
The company reiterated its full-year outlook on gross margin, operating expenses and adjusted EBITDA.
Third Quarter Financial Results
We have elected to present selected non-GAAP, or adjusted, financial measures, including Adjusted EBITDA. These adjusted financial measures are calculated excluding certain items that may make it more challenging to compare our GAAP operating results across periods. Such items may include collaboration revenue, stock-based compensation, depreciation and amortization, or one-time charges such as transaction related fees and expenses or restructuring charges and severance costs. A reconciliation of adjusted financial measures to the nearest comparable GAAP financial measure can be found in the notes and table at the end of this press release.
Supplemental Information
As a supplement to the table above, we have posted to the investor relations section of our website, at www.nanostring.com, supplemental financial data that includes our adjusted financial measures as compared to the nearest comparable GAAP financial measures, for the third quarter and the nine months ended September 30, 2021 and for each quarter of and the full year of 2020.
Conference Call
Management will host a conference call today beginning at 1:30 pm PT / 4:30 pm ET to discuss these results and answer questions. Investors and other interested parties can register for the call in advance by visiting View Source After registering, an email confirmation will be sent, including dial-in details and unique conference call codes for entry. Registration is open throughout the call, but to ensure connection for the full call, registration in advance is recommended. The link to the webcast and audio replay will be made available at the Investor Relations website: www.nanostring.com. A replay of the call will be available beginning November 9, 2021 at 7:30pm ET through midnight ET on November 16, 2021. To access the replay, dial (800) 585-8367 or (416) 621-4642 and reference Conference ID: 2826727. The webcast will also be available on our website for one year following the completion of the call.