Akoya Biosciences(AKYA) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $18.8 million, a 25% year-over-year decrease compared to the prior year period [16][40] - Full year revenue is now expected to be in the range of$ 80 million to $85 million, down from a previous range of$ 96 million to $104 million [11][47] - Gross margin improved to 62.3%, up from 60.6% in the prior year period, attributed to operational efficiencies [19][43] - Loss from operations was$ 8.3 million, a 28% improvement over the $11.6 million loss in the prior year period [20][44] Business Line Data and Key Metrics Changes - Instrument revenue totaled$ 5.7 million, a 53% year-over-year decrease, with 35 instruments placed in Q3 [17][40] - Reagent revenue was $6.3 million, an 11% increase year-over-year [18][41] - Services and other revenue totaled$ 6.5 million, a 10% decrease year-over-year [18][42] Market Data and Key Metrics Changes - The total installed base increased to 1,299 instruments, a 15% increase over the prior year [18] - The company continues to lead in publication volume, with 1,578 publications citing its platform technologies, a 47% increase from the prior year [21] Company Strategy and Development Direction - The company is focused on advancing its companion diagnostic pipeline, which is expected to contribute significantly to growth [13] - Akoya aims to be the preferred platform in the spatial biology market, supporting a return to top-line growth in 2025 and beyond [16] - The company is actively evaluating a range of strategic alternatives for sustainable growth and profitability [39][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite current challenges in customer spending and capital equipment funding [10][11] - The company is addressing temporary challenges through organizational restructuring and operational efficiencies [10][12] - Management noted that the macro environment is the primary driver of current volatility, rather than competition [64] Other Important Information - The company has introduced several new reagent product offerings, including the PhenoCode IO60 panel and a 24-plex mouse panel [27][30] - A significant multi-institutional study, MANIFEST, was announced, utilizing Akoya's platforms for cancer immunotherapy research [22][24] Q&A Session Summary Question: Can you provide cash burn expectations for the next several quarters? - Cash burn for Q3 was in the $8 million to$ 9 million range, expected to decrease in Q4 due to margin expansion and operational cost reductions [51][52] Question: What are the implications of the upcoming principal payments? - The interest-only period has been extended to March 2026, allowing more time before principal payments begin [54] Question: Can you discuss the confidence in reaccelerating top-line growth next year? - Confidence is based on recent reagent introductions and a robust clinical trial pipeline expected to contribute meaningfully to revenue [60][61] Question: What are the dynamics affecting the sales cycle? - The sales cycle has lengthened by about 35%, primarily due to funding availability rather than competition [82][84] Question: Are there competitive pressures affecting the business? - The company is competing for research dollars in shared services and core labs, with meaningful weakness observed in this area [119]