Bionano Genomics(US:BNGO)2023-05-09 22:50Financial Data and Key Metrics Changes - Revenue for Q1 2023 was $7.4 million, representing a 30% year-over-year increase, marking the largest increase for any Q1 ever and the 10th consecutive quarter of year-over-year revenue growth [20][68] - GAAP operating expense for Q1 2023 was $39.9 million, compared to $30.8 million in Q1 2022, while non-GAAP operating expense was $33.6 million compared to $24.2 million in the same period [27][69] - GAAP gross margin for Q1 was 28%, and non-GAAP gross margin was 30%, nearly double the 15% gross margin from Q1 2022 [44] Business Line Data and Key Metrics Changes - The company sold 5,226 flow cells in Q1 2023, a 62% year-over-year increase from 3,225 flow cells sold in Q1 2022 [21] - The installed base of Saphyr systems grew by 19 systems to 259, representing a 47% growth over the installed base of 176 at the end of Q1 2022 [38] Market Data and Key Metrics Changes - The cumulative total of human-focused clinical research publications describing optical genome mapping grew from 23 at the end of 2020 to 108 at the end of 2022, with 16 new publications in Q1 2023 [22][23] Company Strategy and Development Direction - The company is focused on advancing clinical studies to support reimbursement for optical genome mapping (OGM) and seeking FDA clearance for clinical use [30][47] - A strategic review led to a cost reduction initiative aimed at reducing cash expenditures by approximately $20 million over the next four to five quarters [24][41] - The Elevate strategy prioritizes expanding leadership in cytogenetics and driving acceptance of OGM while investing in R&D and strategic partnerships [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging state of capital markets but emphasized a focus on executing the strategic plan to drive long-term shareholder value [68] - The company plans to hold preliminary discussions with the FDA regarding the new mapping system by the end of the year [31] Other Important Information - The company raised $14.8 million through its ATM facility, selling 9.5 million shares at an average price of $1.60 [4] - Cash, cash equivalents, and available-for-sale securities as of March 31, 2023, were $95.8 million [45] Q&A Session Summary Question: What are the next steps regarding the hematological malignancy publication? - Management indicated that additional studies may be needed to start conversations with guideline bodies for OGM [7] Question: What is the company's strategy regarding CPT codes? - Management emphasized the importance of obtaining a Category 1 CPT code for OGM and the need to present data to payers, starting with Medicare [54][56] Question: Can you elaborate on the cost reduction measures? - Management clarified that the cost reductions are targeted across operating expenses, cost of goods sold, and inventory reduction, with some reductions being recurring [91][96] Question: What are the main bottlenecks for OGM end users? - Management identified data analysis as a significant bottleneck, particularly due to the guideline-driven nature of cancer research [88][89]