Akoya Biosciences(US:AKYA)2023-11-11 05:49Financial Data and Key Metrics Changes - Akoya reported record revenue of $25.2 million for Q3 2023, reflecting a 34% increase year-over-year [7][19] - Gross profit reached $15.3 million, a 40% growth compared to the prior year, with a gross margin of 60.6% [7][22] - Operating expenses decreased to $26.8 million from $27.6 million in the prior year, indicating a focus on cost management [23] Business Line Data and Key Metrics Changes - Product revenue, including instruments, reagents, and software, totaled $18 million, representing a 25% increase year-over-year [19] - Instrument revenue was $12 million, showing a 27% growth, with 69 instruments sold during the quarter [19][20] - Reagent revenue reached $5.7 million, reflecting a 21% increase, with annualized reagent pull-through now in the mid $30,000 range [21] Market Data and Key Metrics Changes - The Americas market grew in the mid-40% range year-over-year, while EMEA saw mid-20% growth; APAC experienced mid-single-digit growth [42] - The installed base of instruments reached 1,132, solidifying Akoya's position as a leader in spatial biology [24] Company Strategy and Development Direction - Akoya is focused on enhancing applications and workflow efficiency through the Spatial Biology 2.0 initiative, which includes system improvements and expanded PhenoCode offerings [17] - The company aims to drive clinical adoption and operational excellence while targeting cash flow positivity by 2025 [18][25] - Strategic investments are being made to maintain operating expenses while scaling the business [8][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong growth throughout 2023 and beyond, reaffirming revenue guidance of $95 million to $98 million for the year [25] - The company is optimistic about the clinical opportunities arising from partnerships and the growing demand for spatial biology solutions [82] Other Important Information - Akoya's installed base includes 327 PhenoCyclers and 805 PhenoImagers, with expectations for significant upgrades to the 2.0 versions by year-end [20] - The company has established partnerships with leading software providers to enhance data analysis capabilities [14] Q&A Session Summary Question: Update on the 2.0 rollout progress - Management expects about 50% of both platforms to be upgraded by year-end, with no significant changes to previous expectations [29][31] Question: Insights on gross margin improvement - Gross margin is expected to improve through supply chain efficiencies and a shift towards higher-margin reagent sales [38][40] Question: Market demand and capital purchases - There is a slight lengthening in visibility around capital purchases, but the affordability of Akoya's platforms is seen as a competitive advantage [44][45] Question: Growth outlook for services business - Continued growth is anticipated in the services segment driven by an expanding installed base and partnerships with CROs [75] Question: Adoption of PhenoCode Panels - The timeline for higher utilization of PhenoCode Panels is expected to align with the rollout of system upgrades and increased CRO engagement in 2024 [79]