Olink(US:OLK)2022-11-12 00:30Financial Data and Key Metrics Changes - Olink reported quarterly revenue of $31.8 million, representing a 59% growth compared to Q3 2021 [9] - Adjusted EBITDA for Q3 was negative $1.7 million, an improvement from negative $7.5 million in Q3 2021 [36] - Net loss for Q3 was $1.3 million, compared to a net loss of $5.5 million in Q3 2021, with net loss per share improving from $0.05 to $0.01 [46] Business Line Data and Key Metrics Changes - Kits revenue grew 265% year-over-year to $13.4 million, while analysis services revenue remained flat at $15.1 million [39] - Explore revenue totaled $21.7 million, accounting for 68% of total revenue, with 11 new installations during the quarter [27][28] - Other revenue increased by 174% year-over-year, driven primarily by Signature Q100 instruments [40] Market Data and Key Metrics Changes - Revenue by geography: $12.4 million in the Americas, $15 million in EMEA, and $4.4 million in China and Rest of the World [41] - Adjusted gross profit margin for kits was 89%, while for analysis services it was 55%, reflecting a decline due to lower lab activity [42] Company Strategy and Development Direction - Olink aims to expand its protein library and increase throughput while simplifying workflows [14] - The company launched Olink Insight, an open access platform for data sharing in proteomics, and plans to introduce Olink Flex, a customizable panel-building product [12][31] - The management team is being strengthened to support growth in the modern proteomics field [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's execution despite global economic headwinds, expecting full-year 2022 revenue between $138 million and $142 million, reflecting a growth of 45% to 49% [23][50] - The company remains well-positioned for a return to profitability and continued strong growth in 2023 [50] Other Important Information - Olink's scientific community achieved over 1,000 research studies published using PA technology [16] - The company ended Q3 with a strong cash balance of $77 million, indicating sufficient capital to support its strategic plan [46][47] Q&A Session Summary Question: Explore installations and future implications - Management noted that the 11 installations in Q3 reflect strong execution of their strategy and do not indicate a pull-forward of demand, with expectations for continued growth in the future [56][57] Question: Path to profitability and capital needs - Management expressed confidence in returning to profitability in 2023 without the need for additional capital, supported by a strong cash position [62] Question: Impact of Illumina's new technology - Management indicated that improvements in NGS technology, such as Illumina's lower costs, would benefit customers by reducing experiment costs and allowing for expanded projects [64] Question: Guidance and macroeconomic factors - Management clarified that the narrowing of guidance was primarily due to FX headwinds and not a significant change in order dynamics, with customer budgets for proteomic projects remaining intact [68][71] Question: Explore installations and customer dynamics - Management confirmed that while there is variation among customers, the average pull-through numbers may be suppressed initially but are expected to grow as customers ramp up their capabilities [76][78]