NanoString Technologies, Inc. (NASDAQ:NSTG) Q3 2023 Earnings Call Transcript

So if you really – if you’re starting to draw that down, I think they were going to start to get a little concern as to maybe how the outlook is into next year. So anything you can give there would be really helpful?

Brad Gray: Thanks for the question, Evan. I think Tom in answering question just a moment ago without guiding 2024. Said that we were comfortable with where the current street models are. So hopefully that, could provide some reassurance. Most companies – carry massive amounts of backlog around while we have been. And continue grow well without it. Certainly that backlog, is a good thing in the mind of investors in terms, of providing predictability and revenue. But it’s a bad thing in terms, of the customer experience, because it provides long delays between when people want, to get their hands on a piece of technology, to get their science and when they – and when they actually can. So, we want to always keep those things in balance.

So sorry, to disappoint if we’re not going to be overly quantitative on backlog, most companies choose not to be. And we’ll provide commentary, I think, about sort of the market potential here and the ongoing growth and orders, which I think as you can see, both across NanoString’s reported results and that of our primary competitor, this is a market of extraordinary growth. I mean I think we’re seeing a kind of pace of total instrument placement that has hardly been seen in any product category, in the history of our industry. I think you’re seeing two companies simultaneously reporting greater than 200% year-on-year growth in revenue. So NanoString is neck-and-neck with our competitor and fighting for market leadership here. And I think that kind of leadership in a market of very strong secular growth is the primary thing that customers should be looking at to gain confidence on our outlook.

Evan Stampler: Got it. So, I mean if you not want to give any commentary, about the backlog, is there any you guys can say about orders in the quarter and how that kind of was up sequentially or year-over-year comparison, maybe that would be helpful in terms of framing where things are versus last quarter?

Brad Gray: Evan, again, I’m going to disappoint you here, we’re no longer and haven’t been reporting order trends, in quite some time on our spatial biology business. Other than to say, we felt really good about the order trend, it was robust and we’re pleased, with how things are going.

Evan Stampler: All right. And yes, I guess I’ll say I appreciate the help guys.

Brad Gray: Thanks.

Operator: Your next question comes from the line of Canaccord Genuity. Please go ahead. Your line is open.

Alexander Vukasin: Hi. This is Alex Vukasin on for Kyle Mikson. Thanks for the call guys. One quick question. Just to kind of dive into the recent legal proceedings. I was just curious if those have had a meaningful impact on content placements and on the order book over the past quarter? Thanks.

Brad Gray: I think your question was at the most recent UPC proceedings had an impact on the order book or the demand over the last quarter? So the answer is yes and no. Yes, within the European countries, of course, are being enjoined from selling our CosMx instrument for RNA assays, has slowed down the pace of new orders, coming out of Europe for CosMx. And we’ve experienced a handful of order cancellations from customers, who had not yet received their CosMx instrument, for RNA and of course, now could not do so. So that has had an impact. But I’m pleased to say that, that impact has not spilled over into other markets. As I mentioned in my prepared remarks, while instrument orders slowed down in Europe, the robustness of the North American markets, continue to drive the overall momentum, of our spatial biology franchise.