Bionano Genomics(US:BNGO)2021-05-14 02:55Financial Data and Key Metrics Changes - Revenue for Q1 2021 was approximately $3.2 million, representing a 179% increase from $1.1 million in Q1 2020 [34] - Gross margins improved to 33%, up 8% year-over-year, primarily due to a shift towards higher margin consumables and services [35] - Operating expenses for Q1 2021 were $12.2 million, an increase of $2.2 million compared to the same period in 2020 [35] - Cash balance as of March 31, 2021, was $362 million, supported by a $337 million capital raise [36] Business Line Data and Key Metrics Changes - The company shipped 11 Saphyr systems in Q1 2021, up from 5 systems in the same quarter of 2020 [12] - A record 2,603 nanochannel array flow cells were sold, marking a 275% increase compared to Q1 2020 [13] - The company analyzed 227 samples in its Saphyr services lab, the highest number for any first quarter [14] Market Data and Key Metrics Changes - Expansion into new geographic markets included South Africa, Greece, Russia, South Korea, and key clinical research sites in the UK and Germany [15] - Adoption of Saphyr systems by significant institutions like King's College Hospital in London and the University Health Network in Toronto [16] Company Strategy and Development Direction - The company is focused on increasing the adoption of optical genome mapping as an alternative to traditional cytogenetic methods [20] - Plans to develop assays for various applications, including prenatal and postnatal genetic analysis, hematological malignancies, and solid tumor analysis [29] - The next generation Saphyr system aims to significantly increase throughput, targeting high-volume labs [58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing commercial success and the potential for optical genome mapping to become a standard of care [39] - The company aims to grow the installed base to approximately 150 Saphyr systems by the end of 2021 [40] - Management acknowledged the uncertainty in the operating environment but remains focused on execution and growth [72] Other Important Information - The company is investing heavily in clinical studies to generate data that could influence medical guidelines for genome analysis [31] - The reagent rental program has shown promise, with some customers converting to outright purchases [49] Q&A Session Summary Question: Can you provide a breakdown of reagent rental versus capital purchase on the 11 placements in the quarter? - Management indicated that the majority of the systems shipped were part of the reagent rental program but did not provide a specific breakdown [41] Question: Can you provide more details on the sites involved in the postnatal studies? - Management clarified that there are five studies organized in four pillars, with a target of 1,000 patients across multiple sites [43] Question: What is the timeline for data collection in the prenatal and postnatal studies? - Management expects to collect a substantial fraction of postnatal samples by the end of the year, with interim results anticipated [44] Question: Will the samples analyzed in clinical trials run through the P&L line as recognized revenue? - Management stated it would be a mix, depending on the relationship with the sites, with some studies generating revenue and others classified as R&D expenses [47] Question: How is the company planning to invest its strong balance sheet? - The focus will be on driving clinical studies, expanding the sales and marketing team, and investing in the next generation product [56] Question: What is the expected gross margin trend throughout 2021? - Management anticipates marginal improvements in gross margins as revenue grows, with more significant increases expected beyond 2021 [50] Question: How is the installed base geographically distributed? - The installed base is approximately 50% in the US and 50% outside the US, with Europe contributing significantly to recent growth [51] Question: What is the competitive dynamic between optical mapping and long-read sequencing? - Management noted that optical genome mapping is often compared to traditional cytogenetic methods and sequencing methods, with ongoing studies supporting its value proposition [64] Question: What are the company's thoughts on providing revenue guidance? - Management remains conservative about providing revenue guidance due to uncertainties but expects meaningful double-digit growth in 2021 [73]