Harrison Parsons

Harrison Parsons from Stephens Inc. asked about the expected revenue contribution and margin profile of the new AURORA EVO and MUSE Micro systems in 2025. He also questioned if the full-year guidance assumes the recent high growth pace in reagents and services will continue.

Answer

CFO William McCombe clarified that the high-ASP AURORA EVO will be the larger revenue contributor and will be supportive of margins, while the lower-priced MUSE Micro will not have a significant margin impact. He confirmed that the underlying drivers for service growth (installed base) and reagent growth (improved execution, broader product range) remain strong and are expected to continue producing similar growth rates in the second half of the year.

Harrison Parsons from Stephens Inc. asked about the expected revenue contribution and margin profile of the new Aurora EVO and MUSE Micro instruments in 2025. He also questioned if the current guidance assumes the recent high growth pace for reagents and services will continue.

Answer

CFO William McCombe stated that the Aurora EVO, with its high-end features and ASP, will be the larger revenue contributor and supportive of margins. In contrast, the lower-priced MUSE Micro will not have a significant margin impact. He confirmed that the long-term drivers for service growth (installed base) and reagent growth (customer relationships, execution) remain in place and are expected to continue producing similar growth rates.

Harrison Parsons from Stephens Inc. asked about the expected revenue contribution and margin profile of the new Aurora EVO and MUSE Micro systems, and whether current guidance assumes the recent high growth rates in reagents and services will continue.

Answer

CFO William McCombe explained that the high-ASP Aurora EVO would be the larger revenue contributor and supportive of margins, while the low-priced MUSE Micro would not have a significant margin impact. While not guiding specific product lines, he stated that the underlying drivers for service (installed base growth) and reagent growth (execution, product range) remain strong and should continue to produce similar results.

Harrison Parsons from Stephens Inc. asked about the expected revenue contribution and margin profile of the new Aurora EVO and MUSE Micro systems in 2025, and whether guidance assumes a continuation of the high growth rates in reagents and services.

Answer

CFO William McCombe explained that the high-ASP Aurora EVO will be the larger revenue contributor and supportive of margins, while the lower-priced MUSE Micro will have a minimal impact. He confirmed that the long-term drivers for service growth (installed base) and reagent growth (customer relationships, execution) remain in place and are expected to continue producing similar strong growth.

Harrison Parsons from Stephens Inc. asked about the expected revenue contribution and margin profile of the new Aurora EVO and MUSE Micro systems in 2025. He also questioned if the current guidance assumes that the high growth pace in reagents, service, and certain ex-US capital sales will continue.

Answer

CFO William McCombe stated that the Aurora EVO, with its high-end ASP, will be the larger revenue contributor and supportive of margins, while the lower-priced MUSE Micro will not have a significant margin impact. He confirmed that the long-term drivers for service and reagent growth remain in place, such as the expanding installed base and improved execution, and are expected to continue producing similar growth rates.

Harrison Parsons from Stephens Inc., on for Mason, asked about the underlying assumptions for flow cytometry market growth embedded in the 2025 revenue guidance and requested color on expected growth trends across key geographies.

Answer

CFO William McCombe stated they assumed no significant change from 2024's market conditions, which they saw as mildly negative for instruments, and factored in near-term headwinds, resulting in a back-end loaded growth profile. He expects a continuation of 2024's geographic trends, with a flattish U.S. market and better growth from APAC and EMEA.

Harrison Parsons, on for Mason Carrico, asked about the benefits seen from selling Endomagnetics through the direct sales force and the early results of the commercial reorganization in Breast Health.

Answer

CEO Stephen MacMillan highlighted the success of the direct sales model for Endomagnetics, citing its nearly $20 million in quarterly revenue. He also noted the bifurcated sales force helped drive 6% organic growth in the broader interventional line. CFO Karleen Oberton added that the commercial reorg is showing positive early traction without the typical disruption.

Harrison Parsons of Stephens inquired about the visibility into the Vega sales funnel and asked about the assumptions and potential risks for Revio's consumable pull-through within the 2025 guidance.

Answer

Christian Henry, President and CEO, expressed reasonable confidence in the Vega funnel, noting its lower cost generates more sales opportunities. For Revio pull-through, he explained the guidance is conservative, treating large projects as potential upside and assuming a pull-through in the low-to-mid $200,000s range. Key risks cited were China tariffs and NIH budget cuts.

Asked for a breakdown of the drivers behind the reduced revenue guidance (sales force turnover vs. macro) and for clarity on the expected cash burn cadence for the rest of the year and into 2025.

Answer

The revenue guidance cut was driven roughly equally by macro pressures and significant North American sales force turnover. Cash burn will be lower in H2 2024 than H1, but a significant improvement is expected in 2025 due to a delayed working capital benefit, cost savings, and planned growth. The Q4 2024 burn rate is not a good proxy for 2025.