Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $37.2 million, slightly above preliminary estimates and consistent with internal expectations, but down from $38.8 million in Q1 2024 [7][25] - Instrument revenue decreased by 42% year-over-year to $11 million, primarily due to lower REVIO system shipments [25] - Consumable revenue reached a record $20.1 million, reflecting a 26% year-over-year growth [11][26] - Non-GAAP gross profit was $15 million with a gross margin of 40%, up from 33% in the prior year [27] - Non-GAAP net loss was $44.4 million, or $0.15 per share, compared to a loss of $71.4 million, or $0.26 per share, in Q1 2024 [30] Business Line Data and Key Metrics Changes - Instrument shipments included 12 REVIO systems and 28 VEGA systems, with cumulative shipments of 282 REVIO and 35 VEGA systems [9][25] - Academic and research institutions represented the lowest percentage of instrument shipments since the REVIO launch due to funding pressures [10] - Consumable demand from academic and research customers remained stable, indicating resilience in usage-driven spending [11] Market Data and Key Metrics Changes - Americas revenue decreased by 8% to $16.3 million, impacted by government funding headwinds [26] - Asia Pacific revenue decreased by 9% to $11.6 million, although consumables showed strong growth [26] - EMEA revenue increased by 11% to approximately $9.3 million, driven by strong REVIO placements in hospitals and clinics [27] Company Strategy and Development Direction - The company is focused on expanding HiFi sequencing adoption and enhancing the REVIO platform through the rollout of Spark chemistry [39] - A restructuring plan was executed to narrow strategic focus and reduce operating costs, aiming for a non-GAAP operating expense reduction of $45 million to $50 million by year-end [13] - The company paused development of the high-throughput short-read sequencing platform to concentrate resources on long-read sequencing technologies [16][50] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains challenging, with uncertainties around academic funding and potential NIH budget cuts impacting revenue [12] - The company adjusted its full-year 2025 revenue guidance to a range of $150 million to $170 million, reflecting a $5 million decrease at the lower end due to tariff uncertainties [12][32] - Management expressed confidence in strategic direction, citing strong customer interest in long-read sequencing and ongoing innovation [12][39] Other Important Information - The company ended Q1 2025 with $343.1 million in unrestricted cash and investments, down from $389.9 million at the end of 2024 [30] - A licensing agreement was announced with the Chinese University of Hong Kong to enhance sequencing workflows [19] - The company achieved a Net Promoter Score of over 50, indicating strong customer satisfaction [21] Q&A Session Summary Question: Can you discuss the clinical opportunity and its potential to offset concerns around academic funding? - Management highlighted significant opportunities in clinical diagnostics, particularly with the PureTarget panel, which has seen adoption by major customers [42][44] Question: What are the expectations for REVIO and VEGA placements in 2025 guidance? - Management indicated that REVIO shipments are expected to decline year-over-year, while VEGA is anticipated to grow in unit placements [48] Question: What factors influenced the decision to pause the development of the high-throughput short-read sequencer? - The decision was based on macroeconomic conditions, competitive advantages in long-read sequencing, and significant R&D progress in that area [52][54] Question: How does the company view the demand trends in EMEA? - Management expressed confidence in the EMEA market, noting strong funnel visibility and growth potential [95]