Pacific Biosciences of California Inc (PACB) 2022 Q3 法說會逐字稿

Hello, and welcome to the PacBio Third Quarter Fiscal Year 2022 Financial Results Conference Call. (Operator Instructions). I would now like to turn the conference over to Todd Friedman, Director of Investor Relations. Please go ahead.

您好，歡迎參加 PacBio 2022 財年第三季度財務業績電話會議。 （操作員說明）。我現在想將會議轉交給投資者關係總監 Todd Friedman。請繼續。

Good afternoon, and welcome to PacBio's Third Quarter 2022 Earnings Conference Call. Earlier today, we issued a press release outlining the financial results we will be discussing on today's call. A copy of which is available on the Investors section of our website at www.pacb.com, or as furnished on Form 8-K available on the Securities and Exchange Commission website at www.sec.gov. With me today are Christian Henry, President and Chief Executive Officer; and Susan Kim, Chief Financial Officer.

下午好，歡迎來到 PacBio 的 2022 年第三季度收益電話會議。今天早些時候，我們發布了一份新聞稿，概述了我們將在今天的電話會議上討論的財務業績。其副本可在我們網站 www.pacb.com 的“投資者”部分獲得，或在證券交易委員會網站 www.sec.gov 上提供的表格 8-K 中提供。今天和我在一起的是總裁兼首席執行官克里斯蒂安·亨利；和首席財務官 Susan Kim。

Before we begin, I'd like to remind you that on today's call, we will be making forward-looking statements, including statements regarding predictions, progress, estimates, plans, intentions, guidance and others, including expectations regarding our Revio and Onso systems in their commercialization time frame. You should not place undue reliance on forward-looking statements because they are subject to assumptions, risks and uncertainties that could cause our actual results to differ materially from those projected or discussed, including those inherent in developing and commercializing new products. We refer you to the documents that we file with the SEC, including our most recent forms 10-Q and 10-K in our recent press release to better understand the risks and uncertainties that could cause actual results to differ.

在開始之前，我想提醒您，在今天的電話會議中，我們將做出前瞻性陳述，包括關於預測、進展、估計、計劃、意圖、指導和其他方面的陳述，包括對我們的 Revio 和 Onso 系統的期望在他們的商業化時間範圍內。您不應過分依賴前瞻性陳述，因為它們受假設、風險和不確定性的影響，可能導致我們的實際結果與預測或討論的結果存在重大差異，包括開發和商業化新產品所固有的結果。我們向您推薦我們向 SEC 提交的文件，包括我們最近新聞稿中的最新表格 10-Q 和 10-K，以更好地了解可能導致實際結果不同的風險和不確定性。

We disclaim any obligation to update or revise these forward-looking statements, except as required by law. During the call, we will also present certain financial information on a non-GAAP basis. Management believes that non-GAAP financial measures, combined with U.S. GAAP financial measures, provide useful information to compare our performance relative to forecast and strategic plans and benchmark our performance externally against competitors. Reconciliations between U.S. GAAP and non-GAAP results are presented in tables within our earnings release.

除法律要求外，我們不承擔任何更新或修改這些前瞻性陳述的義務。在電話會議期間，我們還將根據非公認會計原則提供某些財務信息。管理層認為，非 GAAP 財務指標與美國 GAAP 財務指標相結合，可以提供有用的信息來比較我們相對於預測和戰略計劃的業績，並在外部對我們的業績與競爭對手進行比較。美國 GAAP 和非 GAAP 結果之間的調節在我們的收益發布中的表格中列出。

In addition, please note that today's call is being recorded and will be available for audio replay on the Investors section of our website shortly after the call. Investors electing to use the audio replay are cautioned that forward-looking statements made on today's call may differ or change materially after the completion of the live call. Finally, we will be hosting a question-and-answer session after our prepared remarks. We ask that analysts please limit themselves to one question and one follow-up question so that we can accommodate everybody in the queue.

此外，請注意今天的電話會議正在錄音中，電話會議結束後不久將在我們網站的“投資者”部分提供音頻重播。選擇使用音頻回放的投資者請注意，在今天的電話會議上做出的前瞻性陳述可能會在現場電話會議結束後發生重大變化或發生重大變化。最後，我們將在準備好的發言後舉行問答環節。我們要求分析師將自己限制在一個問題和一個後續問題上，以便我們可以容納隊列中的每個人。

I will now turn the call over to Christian.

我現在將把電話轉給克里斯蒂安。

Good afternoon, everybody. Thanks for joining us today as we discuss our third-quarter results and business highlights. Before I begin with my prepared remarks, I'd like to remind everyone that we are hosting our first Investor Day in New York City on November 15. You can find out more about the event in the Investors section of our website. On today's call, we will first recap the product announcements we shared 2 weeks ago at the American Society for Human Genetics Conference in Los Angeles, then we will discuss our third-quarter financial results, and then I'll provide some commentary on our commercial activity during the quarter. Then I'll hand it off to Susan to walk through our quarterly financials in more detail. And of course, as always, there will be plenty of time for Q&A. When I joined the company in September of 2020, I outlined 2 important aspects of our strategy for growth. First, we needed to develop a new long-read platform that offered our customers significantly higher throughput at much lower cost.

大家下午好。感謝您今天加入我們，討論我們的第三季度業績和業務亮點。在我開始準備發言之前，我想提醒大家，我們將於 11 月 15 日在紐約市舉辦我們的第一個投資者日。您可以在我們網站的“投資者”部分找到有關該活動的更多信息。在今天的電話會議上，我們將首先回顧兩週前在洛杉磯舉行的美國人類遺傳學會會議上分享的產品公告，然後我們將討論我們的第三季度財務業績，然後我將對我們的商業廣告進行一些評論本季度的活動。然後，我將把它交給蘇珊，讓她更詳細地了解我們的季度財務狀況。當然，和往常一樣，會有很多時間進行問答。當我在 2020 年 9 月加入公司時，我概述了我們增長戰略的兩個重要方面。首先，我們需要開發一個新的長讀長平台，以更低的成本為我們的客戶提供顯著更高的吞吐量。

And second, since we believe that understanding biology is becoming a more multi-omic endeavor, we need to develop multi-omic capabilities so that we could provide the right solution for our customers depending on the biological question that they are trying to answer. At ASHG on October 25th, with the announcements of Revio and Onso, 2 groundbreaking new sequencers, we demonstrated that we are well on our way to achieving these 2 critical aspects of our strategies. Let's start with Revio, our next-generation long-read sequencer, Revio is expected to provide 15x more data output than our current flagship sequencer, the Sequel II. At the core of Revo is a completely redesigned smart cell, which has 25 million zero-mode waveguides more than 3x as many as the Sequel IIe. Revio then utilizes up to 4 25 smart cells in every run to enable the sequencing of up to 100 million single molecules of DNA simultaneously.

其次，由於我們認為了解生物學正在成為一項更加多組學的努力，因此我們需要開發多組學能力，以便我們可以根據客戶試圖回答的生物學問題為他們提供正確的解決方案。在 10 月 25 日的 ASHG 上，隨著 Revio 和 Onso 這兩款開創性的新測序儀的發布，我們證明了我們正在順利實現我們戰略的這兩個關鍵方面。讓我們從我們的下一代長讀長測序儀 Revio 開始，預計 Revio 將提供比我們目前的旗艦測序儀 Sequel II 多 15 倍的數據輸出。 Revo 的核心是一個完全重新設計的智能單元，它有 2500 萬個零模波導，是 Sequel IIe 的 3 倍多。然後，Revio 在每次運行中使用多達 4 25 個智能細胞，以同時對多達 1 億個單分子 DNA 進行測序。

As a result, the system provides up to 360 gigabases of highly accurate HiFi data, enabling researchers to not only see SMBs and indels, but also structural variation and important epigenetic data in every single run. Finally, the run time has been reduced by 20% to just 24 hours. Revio was designed with the customer in mind, including requiring fewer consumables and the ability to load the next run, while an existing run is in progress. In addition, the 20-fold increase in relative compute power leverages the latest NVIDIA GPUs and enhances base calling with Google deep consensus on board. This makes it easier for our customers to start interpreting the data directly from the instrument.

因此，該系統可提供高達 360 GB 的高精度 HiFi 數據，使研究人員不僅可以查看 SMB 和插入缺失，還可以查看每次運行中的結構變異和重要的表觀遺傳數據。最後，運行時間減少了 20% 至僅 24 小時。 Revio 的設計考慮到了客戶，包括需要更少的耗材以及在現有運行正在進行時加載下一次運行的能力。此外，相對計算能力提高了 20 倍，這充分利用了最新的 NVIDIA GPU，並通過 Google 的深度共識增強了鹼基調用。這使我們的客戶可以更輕鬆地直接從儀器開始解讀數據。

We believe Revio is poised to transform the whole genome sequencing market. This platform enables customers to take on large-scale genome projects with the accuracy and completeness of HiFi. One Revio system can sequence up to 1,300 human genomes a year at less than $1,000 per genome at 30x depth coverage or approximately $11 per gigabit at list price. And at lower coverage, several thousands of genomes per year at just hundreds of dollars per genome. At ASHG, we hosted a packed booth over all 3 days and demoed the Revio over 150x. Feedback from potential customers has been fantastic. On social media, we had more than 10 million impressions over the course of the conference, more than tenfold over other instrument providers. Some comments included one researcher calling it “the most important genome sequencer to launch since the Illumina GA2X.” And another customer who has already placed a multisystem order set "It will be a game changer in the medical genomics field.”

我們相信 Revio 有望改變整個基因組測序市場。該平台使客戶能夠以 HiFi 的準確性和完整性承擔大規模的基因組項目。一個 Revio 系統每年可以對多達 1,300 個人類基因組進行測序，在 30 倍深度覆蓋下每個基因組的成本不到 1,000 美元，或者按標價計算每千兆位大約 11 美元。在較低的覆蓋率下，每年有數千個基因組，每個基因組只需數百美元。在 ASHG，我們在 3 天內舉辦了一個座無虛席的展位，並以 150 倍以上的倍數演示了 Revio。潛在客戶的反饋非常棒。在社交媒體上，我們在會議期間獲得了超過 1000 萬次展示，是其他樂器供應商的十倍以上。一些評論包括一位研究人員稱其為“自 Illumina GA2X 以來推出的最重要的基因組測序儀。”另一位已經下達多系統訂單的客戶“它將改變醫學基因組學領域的遊戲規則。” γ

We've already booked multiunit orders from several customers and are actively discussing system orders with dozens more. With excitement around Revio, several customers have asked about an upgrade path, and we're pleased to have customer loyalty programs in place to support their transition from the Sequel IIe to Revio. It's clearly a seminal moment that we launched this paradigm-shifting sequencer as PacBio recently surpassed its 1,000th sequencer shift since the launch of the RS platform in 2011.

我們已經預訂了多個客戶的多件訂單，並正在與更多客戶積極討論系統訂單。由於對 Revio 的興奮，一些客戶詢問了升級路徑，我們很高興有客戶忠誠度計劃來支持他們從 Sequel IIe 到 Revio 的過渡。自 2011 年推出 RS 平台以來，PacBio 最近超過了其第 1,000 台測序儀轉變，我們推出了這款範式轉換測序儀顯然是一個開創性的時刻。

Over the past decade, PacBio long reads have enabled approximately 400 instrument customers to accelerate their research by allowing them to view biology in ways others can't. From assembling telomere pan genomes to sequencing some of the largest, most complex genomes on this planet, hundreds of publications over the past few years reinforce our belief that the combined accuracy and length of HiFi are unmatched. With the throughput, power and attractive price point of Revio, we are thrilled to usher in the next phase of PacBio. In addition to Revo, we announced Onso, a mid-throughput short-read sequencer based on the highly accurate sequencing by binding technology we acquired through Omnium last year. Onso is a highly differentiated sequencer due to the incredible accuracy of the SBB chemistry. Internally, we've consistently demonstrated accuracy at the Q4 levels, which we believe is more than 10x more accurate than other recently announced chemistries.

在過去十年中，PacBio 長讀長使大約 400 名儀器客戶能夠以其他人無法查看的方式查看生物學，從而加速他們的研究。從組裝端粒泛基因組到對地球上一些最大、最複雜的基因組進行測序，過去幾年的數百篇出版物強化了我們的信念，即 HiFi 的綜合準確性和長度是無與倫比的。憑藉 Revio 的吞吐量、功率和有吸引力的價格點，我們很高興迎來 PacBio 的下一階段。除了 Revo，我們還發布了 Onso，這是一款基於我們去年通過 Omnium 獲得的高度精確的結合測序技術的中通量短讀測序儀。由於 SBB 化學具有令人難以置信的準確性，Onso 是一款高度差異化的測序儀。在內部，我們一直在 Q4 水平上展示了準確性，我們認為這比最近宣布的其他化學物質的準確性高 10 倍以上。

The beta program has commenced, and we've started shipping units to our beta partners. These partners include the Broad Institute, Weill Cornell and Corteva Agriscience, who will be using their beta systems over the next few months. We look forward to these partners providing valuable feedback on Onso's performance in the field. Once the beta program is complete and we incorporate their feedback into the product, we will finalize the development and begin commercial scale-up activities. We expect to begin shipping Onso commercially in the first half of 2023. As a result of all these announcements, we've suspended our financial guidance so that we can understand the impact that Revio will have on the demand for Sequel IIe. However, at our Investor Day on November 15, we expect to share our longer-term financial targets and update you on market response to Revio and Onso.

測試計劃已經開始，我們已經開始向我們的測試合作夥伴發貨。這些合作夥伴包括 Broad Institute、Weill Cornell 和 Corteva Agriscience，他們將在未來幾個月內使用他們的測試系統。我們期待這些合作夥伴就 Onso 在該領域的表現提供寶貴的反饋。一旦測試計劃完成並且我們將他們的反饋納入產品中，我們將完成開發並開始商業規模擴大活動。我們預計將在 2023 年上半年開始商業發售 Onso。由於所有這些公告，我們暫停了我們的財務指導，以便我們了解 Revio 將對 Sequel IIe 的需求產生的影響。但是，在 11 月 15 日的投資者日，我們希望與您分享我們的長期財務目標，並向您介紹市場對 Revio 和 Onso 的反應。

Let's move on to our Q3 results. We reported $32.3 million in revenue, representing a 7% year-over-year decline with changes in foreign exchange rates driving 2% of that decline. The decline was driven by lower Sequel IIe sales. We believe some customers deferred their instrument purchases in anticipation of a new product launch and that this impact was greater than we anticipated in the quarter, particularly in the Americas region. Other drivers of the instrument shortfall included customers deferring purchases due to lab space issues and funding delays. We expect many of the current and deferred opportunities to migrate to Revio. However, we anticipate a sustained, albeit lower demand for Sequel IIe going into the fourth quarter and into 2023. Since Sequel IIe's launched nearly 4 years ago, we've advanced the platform with the IIe upgrade, significantly reduced the secondary analysis time and lower data storage needs by up to 90%. Additionally, we launched new kits that reduced DNA input requirements fivefold, seamlessly integrated methylation calling on every run and released several application protocols and workflows for AAV, SARS-CoV-2 sequencing and single-cell transcriptomics.

讓我們繼續我們的第三季度業績。我們報告的收入為 3230 萬美元，同比下降 7%，其中外匯匯率的變化推動了 2% 的下降。下降的原因是 Sequel IIe 銷量下降。我們相信一些客戶推遲了他們的儀器購買，以期待新產品的推出，這種影響比我們在本季度的預期要大，尤其是在美洲地區。儀器短缺的其他驅動因素包括客戶因實驗室空間問題和資金延遲而推遲購買。我們預計許多當前和推遲的機會將遷移到 Revio。然而，我們預計到第四季度和 2023 年，對 Sequel IIe 的需求將持續下降，儘管會有所下降。自 Sequel IIe 推出近 4 年以來，我們通過 IIe 升級推進了平台，顯著縮短了二次分析時間並降低了數據存儲需求高達 90%。此外，我們推出了新的試劑盒，可將 DNA 輸入要求降低五倍，在每次運行時無縫集成甲基化調用，並發布了用於 AAV、SARS-CoV-2 測序和單細胞轉錄組學的多種應用協議和工作流程。

As you can see, we've built a robust ecosystem around Sequel IIe. It remains an extremely reliable and powerful sequencer at an attractive entry price for customers looking to do lower throughput, long-read sequencing. Although we shipped fewer instruments than we are forecasting, we continue to expand the Sequel IIe customer base with over 40% of our instrument shipments in the quarter to new PacBio customers.

如您所見，我們圍繞 Sequel IIe 構建了一個強大的生態系統。對於希望進行低通量、長讀長測序的客戶而言，它仍然是一款極其可靠且功能強大的測序儀，入門價格極具吸引力。儘管我們出貨的儀器比我們預測的要少，但我們繼續擴大 Sequel IIe 客戶群，本季度超過 40% 的儀器出貨給新的 PacBio 客戶。

In the past 4 quarters, we have onboarded approximately 65 new instrument customers. Sequel IIe’s success in attracting new users gives us confidence that the throughput, economic, and workflow improvements of Revio will even further catalyze the next wave of new customers to PacBio. In the third quarter, we were also pleased to report record consumables of $16.1 million, an increase of 10% year-over-year. We saw pull-through steadily increase sequentially as customers in China increased utilization and EMEA booked record consumable sales. Outside of new sequencing platforms, perhaps what our customers are most excited about is our recently launched MAS-Seq kit and its game-changing potential for transcriptomics and single-cell research. This new kit leverages 10xgenomics single-cell expression technology and allows customers to achieve a 16-fold throughput increase compared to regular single-cell [IsoSeq] libraries.

在過去的 4 個季度中，我們新增了大約 65 個儀器客戶。 Sequel IIe 在吸引新用戶方面的成功讓我們相信 Revio 的吞吐量、經濟性和工作流程改進將進一步促進 PacBio 的下一波新客戶。在第三季度，我們還高興地報告了創紀錄的 1610 萬美元的消耗品，同比增長 10%。隨著中國客戶提高利用率和歐洲、中東和非洲地區的耗材銷售額創歷史新高，我們看到拉動量環比穩步增長。在新的測序平台之外，也許我們的客戶最興奮的是我們最近推出的 MAS-Seq 試劑盒及其在轉錄組學和單細胞研究方面改變遊戲規則的潛力。這款新試劑盒利用 10xgenomics 單細胞表達技術，與常規單細胞 [IsoSeq] 文庫相比，客戶的通量提高了 16 倍。

Despite being an important component in understanding genetic variation in disease, we still know so little about isoforms because of short-read limitations in sequencing them at their full length. With the combination of throughput and cost improvement provided by MAS-Seq, coupled with the 15-fold improvement with Revio, we believe HiFi will be the go-to technology in single-cell transcriptomics.

儘管是了解疾病遺傳變異的重要組成部分，但由於對全長測序的短讀長限制，我們對同種型仍然知之甚少。 MAS-Seq 提供的吞吐量和成本改進相結合，再加上 Revio 的 15 倍改進，我們相信 HiFi 將成為單細胞轉錄組學的首選技術。

In response to this launch, a principal investigator from a major university told us that he believes that “It is clear that in the next few years, long-read sequencing will become the de facto gold standard in transcriptomic research.” Over the past couple of years, we've been broadening our collaborations to deliver customers turnkey solutions for understanding biology. An example is the release of the off-the-shelf target enrichment panels for long-read HiFi sequencing in collaboration with Twist Bioscience. These panels include nearly 400-gene panel covering medically relevant genes in regions that are difficult to sequence using short-read methods, including genes tied to spinal, muscular atrophy, Alzheimer's, and cardiovascular diseases. We are also offering another panel to capture 50 pharmacogenomic genes. By providing targeted panels in addition to whole genome workflows, we can address a broader set of customers across human genomics. Further, we also launched the Tandem Repeat Genotyping Tool, or TRGT target to allow scientists to fully characterize the sequence and methylation status of tandem repeats across the genome. Genetic variation in tandem repeat regions has been linked to many neurological and intellectual disorders such as ALS, Huntington's disease, and Fragile X.

針對此次發布，一所主要大學的首席研究員告訴我們，他認為“很明顯，在未來幾年，長讀長測序將成為轉錄組研究中事實上的黃金標準。”在過去的幾年裡，我們一直在擴大合作範圍，為客戶提供了解生物學的交鑰匙解決方案。一個例子是與 Twist Bioscience 合作發布的用於長讀長 HiFi 測序的現成目標富集面板。這些面板包括近 400 個基因面板，涵蓋了難以使用短讀長方法測序的區域中的醫學相關基因，包括與脊柱、肌肉萎縮、阿爾茨海默氏症和心血管疾病相關的基因。我們還提供另一個面板來捕獲 50 個藥物基因組基因。除了全基因組工作流程之外，通過提供靶向面板，我們可以解決人類基因組學領域更廣泛的客戶群。此外，我們還推出了串聯重複基因分型工具或 TRGT 目標，以使科學家能夠全面表徵整個基因組中串聯重複的序列和甲基化狀態。串聯重複區域的遺傳變異與許多神經和智力障礙有關，例如 ALS、亨廷頓病和脆性 X 染色體。

Turning to commercial highlights. In our human [jurline] applications, which again, in Q3 represented over 1/3 of our product revenue, we delivered additional Sequel IIe’s to support multiple customers in their sequencing for a large population genome-scale project in the United States. Additionally, we shipped multiple Sequel IIe even a competitive deal to a customer in the Middle East planning to launch a large population scale program. We expect this customer to transition to Revio over the next year to accelerated sample volume. As previously mentioned, we expect some customers to continue sequencing on their Sequel IIe platforms like DNA Link in Korea, who purchased a Sequel IIe to begin sequencing for the Korea disease control and prevention agency and plans to use HiFi viral to sequence 10,000 SARS-CoV2 genomes. And [the Revio] Diagnostics, a new PacBio customer who purchased a Sequel IIe in the third quarter to support its microbiome DTC test offering and could potentially scale the system to provide tens of thousands of tests per year.

轉向商業亮點。在我們的人類 [jurline] 應用程序中，在第三季度再次占我們產品收入的 1/3 以上，我們交付了額外的 Sequel IIe，以支持多個客戶為美國的大型人口基因組規模項目進行測序.此外，我們向計劃推出大規模人口計劃的中東客戶提供了多部 Sequel IIe，甚至是具有競爭力的交易。我們預計該客戶將在明年過渡到 Revio，以加快樣品量。如前所述，我們預計一些客戶將繼續在其 Sequel IIe 平台上進行測序，例如韓國的 DNA Link，他們購買了 Sequel IIe 開始為韓國疾病控制和預防機構進行測序，併計劃使用 HiFi 病毒對 10,000 例 SARS-CoV2 進行測序基因組。還有 [the Revio] Diagnostics，這是 PacBio 的新客戶，他在第三季度購買了 Sequel IIe 以支持其微生物組 DTC 測試產品，並有可能將該系統擴展為每年提供數万次測試。

We also expect AAV sequencing applications to continue to use the Sequel IIe with the addition of Sequel IIe in the third quarter, shipped to several customers in this application area. Lastly, I'd like to welcome the members of the newly created Scientific Advisory Board. Dr. Euan Ashley and Dr. Jody Puglisi of Stanford University; and Dr. Jay Shendure from the University of Washington. These were known leaders in biology and chemistry will provide critical feedback and direction to our product roadmap. We had our first meeting this past week, and I was delighted to hear the SAB's enthusiasm for PacBio's new platforms and what they believe can be accomplished in many diverse genomics applications.

我們還預計 AAV 測序應用程序將繼續使用 Sequel IIe，並在第三季度添加 Sequel IIe，並交付給該應用領域的多個客戶。最後，我要歡迎新成立的科學顧問委員會的成員。斯坦福大學的 Euan Ashley 博士和 Jody Puglisi 博士；和華盛頓大學的 Jay Shendure 博士。這些生物和化學領域的知名領導者將為我們的產品路線圖提供重要的反饋和指導。上週我們舉行了第一次會議，我很高興聽到 SAB 對 PacBio 新平台的熱情以及他們認為可以在許多不同的基因組學應用中實現的目標。

Now with that, I'll hand the call over to Susan to talk about our financial results in more detail. Susan?

現在，我將把電話轉給蘇珊，更詳細地討論我們的財務業績。蘇珊？

Thank you, Christian. As discussed, we reported $32.3 million in product and service revenue in the third quarter of 2022, which represented a decrease of 7% from $34.9 million in the third quarter of 2021. Interest revenue in the third quarter was $11.4 million, a decrease of 28% from $15.9 million in the third quarter of 2021. We delivered 34 Sequel IIe systems during Q3, growing the installed base to 494 Sequel II and IIe systems as of September 30, 2022. Turning to consumables. Revenue of $16.1 million in the third quarter grew 10% from $14.6 million in the third quarter of last year and was a record for PacBio. Sequel II and IIe consumables represented approximately 90% of our total consumable revenue in the third quarter with the rest from older systems and other consumables.

謝謝你，克里斯蒂安。如前所述，我們報告 2022 年第三季度的產品和服務收入為 3230 萬美元，比 2021 年第三季度的 3490 萬美元下降 7%。第三季度的利息收入為 1140 萬美元，下降 28 % 從 2021 年第三季度的 1590 萬美元。我們在第三季度交付了 34 個 Sequel IIe 系統，截至 2022 年 9 月 30 日，安裝基數增加到 494 個 Sequel II 和 IIe 系統。轉向消耗品。第三季度的收入為 1610 萬美元，比去年第三季度的 1460 萬美元增長了 10%，是 PacBio 的記錄。 Sequel II 和 IIe 耗材約占我們第三季度總耗材收入的 90%，其餘來自舊系統和其他耗材。

Annualized pull-through per system on the Sequel II and IIe installed base in the third quarter was approximately $125,000. Consumable revenue in China continued to improve, partially offset by newer PacBio customers being slower to ramp and certain customers dealing with sample delays. Of note, global supply chain constraints related to auxiliary equipment has had an impact on new instrument ramp time, and one of the other reasons noted was a lack of nitrogen at the time of installation, which we're pleased to say will not be a requirement with our new Revio platform. Finally, service and other revenue grew $4.8 million in the third quarter compared to $4.4 million in the third quarter of 2021, reflecting our growing installed base.

第三季度每個系統在 Sequel II 和 IIe 安裝基礎上的年化拉動約為 125,000 美元。中國的消費品收入繼續增長，部分被 PacBio 新客戶的增長速度放緩和某些客戶處理樣品延遲所抵消。值得注意的是，與輔助設備相關的全球供應鏈限制對新儀器的升級時間產生了影響，另外提到的原因之一是安裝時缺乏氮氣，我們很高興地說這不會是我們新的 Revio 平台的要求。最後，與 2021 年第三季度的 440 萬美元相比，第三季度的服務和其他收入增長了 480 萬美元，這反映了我們不斷增長的安裝基礎。

From a regional perspective, Americas revenue of $16.7 million declined 14% compared to the third quarter of 2021, primarily driven by lower Sequel IIe placements as customers delayed purchases due to lab space limitations, funding, and deferred orders due to the anticipation of a potential new sequencer launch. The region also experienced lower utilization as certain customers dealt with sample shortages and as newer customers take longer to ramp. Asia Pacific revenue of $9.6 million grew 4% over the prior year, primarily driven by a recovery in China post-lockdowns. The region posted its highest consumable quarter in nearly 5 years. Lower instrument ASPs partially offset the growth in consumables.

從區域角度來看，與 2021 年第三季度相比，美洲收入為 1670 萬美元，下降了 14%，這主要是由於客戶由於實驗室空間限制、資金和由於預期潛在的潛在風險而推遲購買而推遲購買，導致 Sequel IIe 展示位置減少新的音序器推出。由於某些客戶處理樣品短缺問題以及新客戶需要更長的時間來增加產能，該地區的利用率也有所下降。亞太地區收入為 960 萬美元，比上年增長 4%，主要受中國封鎖後復甦的推動。該地區發布了近 5 年來最高的消耗品季度。較低的儀器平均售價部分抵消了消耗品的增長。

Finally, EMEA revenue of $6.0 million was 6% lower compared to the prior year period with currency fluctuations in the pound sterling and euro driving a 10% headwind. The region was most affected by FX, which represented approximately a 10% headwind compared to Q3 2021. The region posted record consumables in the quarter, particularly as a large plant and animal sequencing project regain momentum.

最後，EMEA 收入為 600 萬美元，與去年同期相比下降了 6%，英鎊和歐元的匯率波動推動了 10% 的逆風。該地區受外匯影響最大，與 2021 年第三季度相比，這代表了大約 10% 的逆風。該地區在本季度發布了創紀錄的消耗品，特別是隨著大型植物和動物測序項目重新獲得動力。

Moving down the P&L. GAAP gross profit of $13.5 million in the third quarter of 2022 represented a gross margin of 42%. Excluding amortization of intangible assets, third quarter 2022 non-GAAP gross profit of $13.7 million represented a gross margin of 42% compared to a non-GAAP gross profit of $15.7 million or 45% in the third quarter of last year. The decrease compared to the third quarter of last year was partially driven by lower interim volumes and lower instrument ASPs, partially offset by higher consumable volumes. GAAP operating expenses were $88.2 million in the third quarter of 2022, excluding change in fair value of contingent consideration of $4.3 million and amortization of the intangible assets, non-GAAP operating expenses were $83.8 million. This represents a 42% increase from non-GAAP operating expenses of $59.1 million in the third quarter of last year, reflecting a full quarter of operating expenses from Omnium and increased headcount. In terms of headcount, we ended the quarter with 771 employees compared to 728 at the end of 2021.

向下移動損益表。 2022 年第三季度 GAAP 毛利潤為 1350 萬美元，毛利率為 42%。不計無形資產攤銷，2022 年第三季度非公認會計準則毛利為 1370 萬美元，毛利率為 42%，而去年第三季度的非公認會計準則毛利為 1570 萬美元或 45%。與去年第三季度相比，下降的部分原因是中期銷量下降和儀器平均售價下降，部分被消耗品銷量增加所抵消。 2022年第三季度GAAP運營費用為8820萬美元，不包括430萬美元或有對價公允價值變動和無形資產攤銷，非GAAP運營費用為8380萬美元。這比去年第三季度的 5910 萬美元的非 GAAP 運營費用增加了 42%，反映了 Omnium 整個季度的運營費用和員工人數的增加。在員工人數方面，我們在本季度末有 771 名員工，而 2021 年底為 728 名。

Operating expenses in the third quarter included total non-cash stock-based compensation of $18.0 million compared to $26.6 million in the third quarter of last year. Excluding merger-related expenses, non-GAAP operating expenses in the third quarter of 2021 included $15.1 million of non-cash stock-based compensation. GAAP net loss in the third quarter of 2022 was $77.0 million or $0.34 per share. Excluding amortization of acquired intangibles and change in fair value of contingent consideration, non-GAAP net loss was $72.5 million, representing $0.32 per share compared to a GAAP net income of $16.5 million and a non-GAAP net loss of $47.2 million, representing $0.23 per share.

第三季度的運營費用包括 1800 萬美元的非現金股票薪酬總額，而去年第三季度為 2660 萬美元。不包括與合併相關的費用，2021 年第三季度的非公認會計原則運營費用包括 1510 萬美元的非現金股票薪酬。 2022 年第三季度的 GAAP 淨虧損為 7700 萬美元或每股 0.34 美元。不計收購無形資產的攤銷和或有對價公允價值的變化，非公認會計準則淨虧損為 7250 萬美元，相當於每股 0.32 美元，而公認會計準則淨收入為 1650 萬美元，非公認會計準則淨虧損為 4720 萬美元，相當於每股 0.23 美元分享。

Now turning to our balance sheet. We ended the third quarter with $834 million in unrestricted cash and investments compared with $899 million at the end of the second quarter of 2022. Inventory balances increased in the third quarter to $43.5 million, representing 1.9 inventory turns compared with $36.1 million at the end of the second quarter of 2022, representing 2.3 inventory turns. The increase in inventory primarily reflects purchases of revenue and on-fill inventory, coupled with lower-than-expected Sequel IIe shipments. Accounts receivable decreased in the third quarter to $22.8 million, reflecting a DSO of 71 days compared with $27.1 million at the end of the second quarter of 2022, reflecting a DSO of 70 days. Moving to guidance. As a result of our announcement of Revio, our latest high-throughput long resequencing system expected to ship in the first quarter of 2023, we withdrew all prior 2022 financial guidance. We look forward to connecting with you next week on November 15 at our Investor Day in New York, where we plan on providing additional details related to our longer-range financial outlook.

現在轉向我們的資產負債表。第三季度末我們的非限制性現金和投資為 8.34 億美元，而 2022 年第二季度末為 8.99 億美元。第三季度庫存餘額增加至 4350 萬美元，相當於 1.9 次庫存周轉，而 2022 年末為 3610 萬美元2022 年第二季度，代表 2.3 次庫存周轉。庫存的增加主要反映了收入和填充庫存的購買，以及低於預期的 Sequel IIe 出貨量。第三季度應收賬款減少至 2280 萬美元，反映 DSO 為 71 天，而 2022 年第二季度末為 2710 萬美元，反映 DSO 為 70 天。轉向指導。由於我們宣布了 Revio，我們最新的高通量長重測序系統預計將於 2023 年第一季度發貨，我們撤回了之前的 2022 年財務指導。我們期待下週 11 月 15 日在紐約的投資者日與您聯繫，我們計劃在會上提供與我們的長期財務前景相關的更多細節。

With that, I will turn the call back to Christian. Christian?

有了這個，我會把電話轉回克里斯蒂安。基督教？

Thank you, Susan. It's been an exciting time for PacBio in the field of genomics. We're months away from the first Revio shipments and from what we believe represents the biggest technological milestone in long-read sequencing. We hope to see you all next week as we dive deeper into our strategy, products, markets, and financial outlook at our inaugural Investor Day.

謝謝你，蘇珊。對於 PacBio 在基因組學領域來說，這是一個激動人心的時刻。我們距離第一批 Revio 出貨以及我們認為代表長讀長測序的最大技術里程碑還有幾個月的時間。我們希望在下週與大家見面，我們將在首屆投資者日更深入地探討我們的戰略、產品、市場和財務前景。

I will now turn the call back to the operator to begin. Operator?

我現在將呼叫轉回給接線員開始。操作員？

(Operator Instructions). Today's first question comes from Tejas Savant with Morgan Stanley.

（操作員說明）。今天的第一個問題來自摩根士丹利的 Tejas Savant。

So maybe a question one for you. Can you just share some early customer feedback on the relatively high price point for Revio? And just some perspective on how you see the degree of discounting and trade-in play out here over the next 12 months, particularly in light of the macro and the worsening FX headwinds?

所以也許是你的一個問題。您能否分享一些早期客戶對 Revio 價格相對較高的反饋？以及您如何看待未來 12 個月的折扣和以舊換新程度的一些看法，特別是考慮到宏觀和不斷惡化的外匯逆風？

Sure. Thanks, Tejas. So I didn't really get a lot of pushback on the -- on what you call to be a high price point. I think people saw the incredible value and opportunity associated with long-read sequencing for $10, $11 a G at list and getting lower than that and genomes at scale. So I didn't really get any pushback hardly at all. Now we do have -- as with any product transition, there's always customers that just bought at the end of the third quarter or people that bought in 2022. And so we were very thoughtful about that and put together a pretty aggressive customer loyalty discounts that would account for them and give them an opportunity to get into Revio and still get some power out of the Sequel IIe until Revio is broadly available to them. And so what that really did was it said, if you bought in 2022, you're going to get a bigger loyalty discount than if you bought in 2021, we tried to basically recognize the newness of the system. And so far, we haven't had much pushback on that discounting scheme. And so I think in the long run, you're going to see discounting less than what we discount the Sequel IIe, but -- and we will -- but for the trade, not trade-ins, but for the loyalty discounts, I want to be very clear. It's not a trade-in program. The loyalty discounts, you will see customers that bought most recently get a very good price. And we're happy to do that because that was part of the strategy is to enable the market with a larger installed base so that we could go upgrade that installed base to Revio as quickly as possible.

當然。謝謝，光輝。所以我在你所謂的高價點上並沒有真正受到很多反對。我認為人們看到了與以 10 美元、11 美元/ G 的價格進行長讀長測序相關的難以置信的價值和機會，而且價格低於該價格和大規模基因組。所以我幾乎沒有得到任何回擊。現在我們確實有——與任何產品過渡一樣，總是有客戶在第三季度末購買或有人在 2022 年購買。所以我們對此進行了深思熟慮，並製定了相當激進的客戶忠誠度折扣，會考慮到他們，讓他們有機會進入 Revio，並且仍然從 Sequel IIe 中獲得一些力量，直到他們廣泛使用 Revio。所以真正做到的是它說，如果你在 2022 年購買，你將獲得比在 2021 年購買更大的忠誠度折扣，我們試圖從根本上認識到該系統的新穎性。到目前為止，我們還沒有對這個折扣計劃有太多的反對。所以我認為從長遠來看，你會看到折扣低於我們對 Sequel IIe 的折扣，但是 - 我們會 - 但對於交易，不是以舊換新，而是對於忠誠度折扣，我想很清楚。這不是以舊換新計劃。忠誠度折扣，您會看到最近購買的客戶獲得了非常優惠的價格。我們很高興這樣做，因為這是戰略的一部分，即為市場提供更大的安裝基礎，以便我們可以盡快將該安裝基礎升級到 Revio。

Got it. That's helpful. And then one on the consumables line, and I'm not sure how much visibility you have on there at the moment. But just curious as you think about the ramp down in Sequel consumables, particularly given some of these larger studies that are already in flight. How are you thinking about the consumables line winding down for the legacy platforms? And then on the other side of that, can you share some color on the theoretical maximum pull-through at 30x coverage in the Revio? Is it fair to think of it as a low to mid-single-digit multiple of $175,000 a year that you saw on the Sequel IIe?

知道了。這很有幫助。然後是消耗品線上的一個，我不確定你目前在那裡有多少能見度。但是，當您想到續集消耗品的下降時，您會感到好奇，尤其是考慮到其中一些已經在進行中的大型研究。您如何看待舊平台的消耗品線逐漸減少？另一方面，您能否分享一下 Revio 在 30 倍覆蓋率下的理論最大穿透率的一些顏色？將其視為您在 Sequel IIe 上看到的每年 175,000 美元的低到中個位數倍數是否公平？

Yes. Just to go backwards, yes, that's probably right. It will depend obviously on how people think about coverage. One of the things that we've found, and we've been doing a lot of work on this year is understanding what long-read coverage you need using HiFi relative to the traditional 30x metrics. And as with anything, it really depends on your application. But if you're doing population-scale genetics, large projects, you could go anywhere from 10. We've seen some customers talking about 10 and some talking about as high as 20x. So you could think about an increase in scale relative to even that 30x paradigm.

是的。只是倒退，是的，這可能是正確的。這顯然取決於人們如何看待報導。我們發現的一件事，今年我們一直在做很多工作，就是了解使用 HiFi 相對於傳統的 30 倍指標需要什麼樣的長讀覆蓋率。與任何事情一樣，這實際上取決於您的應用程序。但是如果你在做人口規模的遺傳學、大型項目，你可以從 10 到任何地方。我們已經看到一些客戶談論 10 和一些談論高達 20 倍。所以你可以考慮相對於 30 倍範式的規模增加。

But that being said, from a pull-through perspective, you talk about a multiple of Sequel IIe. I think that's the right way to think about it. When you think about what's the MAX opportunity, you can do the math. It's a 24-hour run time. And so you probably think you're using the system 50 weeks a year, and you can multiply and just start with the list price and then apply whatever discount metric you want to use for a price per genome and that probably can give you enough to do the math to figure that out. But we expect with respect to the ramp down, Sequel IIe will be – continue to be used for quite a long way from here. We will be scaling up Revio, and we will have -- I suspect we will have -- we've had an incredible amount of interest already. And so we will have a lot of customers upgrading their systems. It's too early to gauge what that ramp down in consumables might look like specifically, but that ramp down would probably occur more in the back half of next year than the front half. And so that's one thing to talk about. And I think next week at the Investor Day, we'll try to provide some more detailed color on that to how we see that playing itself out. Because you're right, it's going to be a bit of a nuanced thing for a few quarters here as we get the product launched and shipped and people convert their samples and then scale up on new projects because people are imagining things they could never do before. And that's why the world is so excited about Revio, quite frankly.

但話雖這麼說，但從整體的角度來看，您談論的是 Sequel IIe 的倍數。我認為這是正確的思考方式。當您考慮最大機會是什麼時，您可以進行數學計算。這是 24 小時運行時間。因此，您可能認為您每年使用該系統 50 週，您可以乘以並從標價開始，然後應用您想要使用的任何折扣指標來計算每個基因組的價格，這可能會給您足夠的做數學來弄清楚。但我們預計，在減速方面，Sequel IIe 將——從這裡繼續使用相當長的一段路要走。我們將擴大 Revio 的規模，我們將擁有——我懷疑我們將會擁有——我們已經產生了令人難以置信的興趣。所以我們會有很多客戶升級他們的系統。現在判斷消耗品下降的具體情況還為時過早，但明年下半年的下降可能會比前半年更多。所以這是一回事。我認為在下週的投資者日，我們將嘗試提供一些更詳細的顏色來說明我們如何看待這種情況。因為你是對的，在我們推出和發貨產品的幾個季度內，這將是一件微妙的事情，人們轉換他們的樣品，然後擴大新項目，因為人們正在想像他們永遠無法做到的事情前。坦率地說，這就是為什麼全世界都對 Revio 如此興奮的原因。

Got it. And one last one for me on Omnium. Just on that price per inside value prop that you've talked about in the past question. If you think about the higher accuracy enabling lower depth of coverage, can you just share some thoughts on what that means for consumable pull-through? Or do you expect that the sample volume will inflect enough to offset some of that dynamic there?

知道了。最後一個是我在 Omnium 上的。僅根據您在上一個問題中談到的每個內部價值道具的價格。如果您考慮更高的精度可以實現更低的覆蓋深度，您能否分享一些關於消耗品穿透意味著什麼的想法？或者您是否希望樣本量的變化足以抵消那裡的一些動態？

Well, I think the sample volume will clearly have a big impact there. And I think it's too early to game out the throughput, so to speak -- or the pull-through because it's going to really depend on how the customer decides to use the system. If they use it for doing what they do today, but just with less coverage, that will result in more samples. But if they do it in a way that they want to find variants that are even deeper that they can't find with any other platform that will result in more sequencing. And so either way, it means samples coming to the platform and a unique opportunity for us in the area that we're pointing the Onso system. And so as we get closer to actual shipments, we'll try to provide as much color as we can. And then it will be one of those things where we'll get to see how our customers leverage this major advancement in accuracy.

好吧，我認為樣本量顯然會在那裡產生很大的影響。而且我認為現在討論吞吐量還為時過早，可以這麼說 - 或直接通過，因為這將真正取決於客戶決定如何使用該系統。如果他們用它來做他們今天所做的事情，但只是覆蓋較少，那將導致更多的樣本。但是，如果他們以一種他們想要找到更深的變體的方式來做這件事，那麼他們在任何其他平台上都找不到，這將導致更多的測序。因此，無論哪種方式，這都意味著樣品進入平台，並在我們指向 Onso 系統的領域為我們提供了一個獨特的機會。因此，隨著我們越來越接近實際出貨量，我們將盡量提供盡可能多的顏色。然後這將是我們將看到我們的客戶如何利用這一重大準確性進步的事情之一。

The next question comes from Julia Qin with JPMorgan.

下一個問題來自摩根大通的 Julia Qin。

So regarding the Ravio question, I was wondering if you could share a bit more color on the order book in terms of the number of instrument orders you placed so far? And what's the mix looking like between different applications, POPs, human genome, plant-animal? And how does that compare versus your expectations?

所以關於 Ravio 的問題，我想知道你是否可以在訂單簿上分享更多關於你迄今為止下的儀器訂單數量的顏色？不同應用程序、持久性有機污染物、人類基因組、動植物之間的組合是什麼樣的？這與您的期望相比如何？

Well, I think the -- I mean, to be honest, the expectations so far has blown my expectations away. And that's just -- that's to be -- that's honestly the truth. When you think about we had 10 million social media impressions last week or 2 weeks ago at the conference, it just showed me how much demand there is for long-read sequencing, how much demand there is for a new paradigm of completeness and a new paradigm of seeing the whole picture, those messages seem to resonate. And our sales team at ASHG was extremely busy, which was really incredible to see. As I've said, we do have several multiunit orders already on the books. I'm not going to share all the details today. We probably will share some more details next week at Investor Day. But even then, I think it's really all about this building demand curve and setting us in a whole new trajectory for the future of the company. And the early indication is that all of those facts seem to be bearing themselves out.

嗯，我認為 - 我的意思是，老實說，到目前為止的期望已經讓我的期望落空了。這只是 - 就是這樣 - 老實說，這是事實。當你想到我們在上週或兩週前的會議上獲得了 1000 萬次社交媒體印象時，它只是向我展示了對長讀長測序有多少需求，有多少需要新的完整性範式和新的看到全貌的範式，這些信息似乎引起了共鳴。我們在 ASHG 的銷售團隊非常忙碌，這真是令人難以置信。正如我所說，我們確實已經有幾個多單元訂單。我今天不打算分享所有細節。我們可能會在下週的投資者日分享更多細節。但即便如此，我認為這真的是關於建立需求曲線，並為公司的未來設定一個全新的軌跡。早期的跡像是，所有這些事實似乎都在證明自己。

Got it. Great. And then in terms of the legacy platform, how should we think about the residual demand here? Is the idea that you'll still keep Sequel IIe as maybe an easier entry point for new to long-read customers? And how should we be thinking about the mix of the legacy versus Revio instrument mix and demand going forward?

知道了。偉大的。然後在遺留平台方面，我們應該如何考慮這裡的剩餘需求？對於長期閱讀的新客戶來說，您是否仍將 Sequel IIe 作為一個更容易的切入點？我們應該如何考慮傳統儀器與 Revio 儀器的組合以及未來的需求？

Yes. That's a good question, Julia. So we -- in the prepared remarks, we tried to give you a little color there on the fact that there's still some applications where the Sequel IIe will be quite adequate and, quite frankly, a great platform, things like AAV. And even some of the power you get using the MAS kit on isoform sequencing, you get really nice you can get really nice scientific results. And so there are going to be applications where Sequel IIe will be very useful. We do expect, though, that Revio will become the predominant platform that we sell over in 2023. But we do expect a smaller level of consistent demand throughout 2023. And that's probably about as far out as I want to talk about right now for the Sequel IIe platform. So we're definitely going to keep supporting it, keep all of our existing customers who are using it, happy, and making sure the platform is robust and doing all things it needs to do, but there certainly is a big push in the market and strong demand for Revio.

是的。這是個好問題，朱莉婭。所以我們 - 在準備好的評論中，我們試圖給你一點顏色，因為仍然有一些應用程序 Sequel IIe 將非常合適，坦率地說，是一個很棒的平台，比如 AAV。甚至你使用 MAS 試劑盒在異構體測序中獲得的一些功能，你會得到非常好的結果，你可以獲得非常好的科學結果。因此，Sequel IIe 將在某些應用程序中非常有用。不過，我們確實預計 Revio 將成為我們在 2023 年銷售的主要平台。但我們確實預計整個 2023 年的持續需求水平會較小。這可能是我現在想談論的最遠的地方。續集IIe平台。所以我們肯定會繼續支持它，讓所有正在使用它的現有客戶保持快樂，並確保該平台是健壯的並做它需要做的所有事情，但市場肯定會有很大的推動力以及對 Revio 的強勁需求。

Got it. That's helpful. And lastly from me, could you talk about your manufacturing capacity for Revio and also respectively, and how to think about the ramping in the near term?

知道了。這很有幫助。最後，請您談談 Revio 和 Revio 的製造能力，以及如何考慮近期的產能提升？

Yes. So actually, one of the agenda items at the Investor Day is operations because I knew this question would come. And so [Mike Glover], our SVP of Manufacturing and Operations, will give you much more detail on that next week. But what you can be assured of is we've had a lot of experience with managing platform transitions over the years, this team of executives. And so we are appropriately scaling up both Revio and getting ready for Onso so that we can meet the demand. However, it's likely when we start at the beginning, we will ship a bolus of units, make sure they get into the market and are robust and doing what they need to do and then scale from there. In other words, we don't want to ship all of the demand necessarily in one quarter. We want to make sure we have a very, very smooth launch. And we've really worked hard on getting the supply chain ready for broad commercialization. I think that's one of the key competitive advantages we have over particularly the emerging sequencing companies to meet all of the demand. And that's probably all I want to say about it right now, Julia.

是的。所以實際上，投資者日的議程項目之一是運營，因為我知道這個問題會來。因此，我們的製造和運營高級副總裁 [Mike Glover] 將在下週為您提供更多詳細信息。但是您可以放心的是，我們在管理平台轉換方面擁有豐富的經驗，這支高管團隊。因此，我們正在適當地擴大 Revio 的規模並為 Onso 做好準備，以便我們能夠滿足需求。但是，很可能當我們從一開始時，我們將運送大量單元，確保它們進入市場並且功能強大，並做他們需要做的事情，然後從那裡擴大規模。換句話說，我們不想在一個季度內交付所有需求。我們想確保我們有一個非常非常順利的發布。我們真的努力讓供應鍊為廣泛的商業化做好準備。我認為這是我們與新興測序公司相比的關鍵競爭優勢之一，可以滿足所有需求。這可能就是我現在想說的，朱莉婭。

The next question comes from Dan Brennan with Cowen.

下一個問題來自 Dan Brennan 和 Cowen。

Great. Look forward to next week. Just wanting back to [Julia's] question (inaudible). We’ll obviously hear a lot more next week. But it sounds like the theoretical upside here is dramatically higher with over $1 million of potential annualized [pull-through]. And it sounds like Christian, is this early juncture saying that the actual pull-through could approximate 2 to threefold or several times what you're seeing on Sequel I and Sequel II certainly seems like a reasonable starting point. I mean, not out of the gate, obviously, but as the installed base starts using the product?

偉大的。期待下週。只是想回到 [Julia 的] 問題（聽不清）。下週我們顯然會聽到更多。但聽起來這裡的理論收益要高得多，潛在的年化 [拉動] 超過 100 萬美元。聽起來像克里斯蒂安，這個早期的時刻是說實際的拉動可能是你在 Sequel I 和 Sequel II 上看到的大約 2 到 3 倍或幾倍，這似乎是一個合理的起點。我的意思是，顯然不是一開始，而是隨著安裝基礎開始使用該產品？

Well, I think, Dan, we're not going to comment on that today. I think we have to see how things unfold. Obviously, the math being able to run 4 smart cells at a time, 24 hours a day, 7 days a week gives us an incredible opportunity. And it's actually really, really important to driving the gross margin story over time because that product mix will change where consumables will become a much larger portion. But on today's call, we're not going to speculate on exactly what that number is going to look like in terms of pull-through nor the relative revenue mix. I think we've learned -- at least I've learned over the course of my career that you have to watch the consumables pull-through for several quarters before you have confidence that you can nail down what that is.

嗯，我想，丹，我們今天不打算對此發表評論。我認為我們必須看看事情是如何發展的。顯然，每週 7 天、每天 24 小時、一次運行 4 個智能單元的數學計算給了我們一個難以置信的機會。實際上，隨著時間的推移推動毛利率故事真的非常重要，因為這種產品組合將會改變，消耗品將成為更大的一部分。但是在今天的電話會議上，我們不會推測該數字在拉動或相對收入組合方面的具體情況。我想我們已經學會了——至少我在我的職業生涯中了解到，在你有信心確定它是什麼之前，你必須觀察消耗品幾個季度的發展。

But there's no doubt that Revio gives us a new -- is an inflection point. And there is also no doubt that there's elasticity of demand in the market for long-read samples, and they're going to come from 2 spots. They're going to come from new demands for new projects and transitioning others, transitioning from short reads to long reads because the economics are such that they can see the whole picture for economics that they can afford at a scale they can handle. So I think there's plenty of samples in the world for us to go after, and we'll see how that transitions. You're right. And as you said, right at the beginning, that's not really the metric. It's really when you look out 4 quarters from launch, let's say, how are we doing at that point. Hopefully, that helps a little, Dan.

但毫無疑問，Revio 給了我們一個新的——是一個拐點。毫無疑問，市場上對長讀樣本的需求是有彈性的，它們將來自兩個地方。他們將來自對新項目的新需求和過渡其他項目，從短讀過渡到長讀，因為經濟學是這樣的，他們可以看到他們可以承受的經濟規模的整體情況。所以我認為世界上有很多樣本可供我們研究，我們將看看它們是如何轉變的。你是對的。正如你所說，在一開始，這並不是真正的指標。真的是當你在發布後的 4 個季度內展望，比方說，我們在那一點上做得如何。希望這會有所幫助，丹。

Yes, definitely. And then maybe just one other. We can look at what the [RS to S1 and S S2] happened. But in terms of the number of placements that have occurred and the pull-through that's occurred, but you talked about a whole new trajectory for the company. I guess it's a long way of saying, when we look at the growth in the installed base and how each successive box expanded that installed base by a factor, maybe one and they have twofold. Is it fair to say maybe the old playbook you throw out the window because now you're at a point where you really are maybe if not linear, you're tapping into new markets and new opportunities that you really couldn't penetrate even with the [RS CF and the S2]?

當然是。然後也許只是另一個。我們可以看看 [RS 到 S1 和 S S2] 發生了什麼。但就已發生的安置數量和已發生的拉動而言，您談到了公司的全新發展軌跡。我想這是一個很長的說法，當我們看到安裝基礎的增長以及每個連續的盒子如何將安裝基礎擴大一個因素時，也許一個因素，他們有兩倍。公平地說，也許你把舊劇本扔出窗外，因為現在你正處於一個真正的點，如果不是線性的，你正在進入新市場和新機會，即使你真的無法滲透[RS CF 和 S2]？

Yes. I think that -- I do think that it is a new playbook for sure for a couple of different reasons. The first reason is that we spent the first part of my tenure here building out a new commercial infrastructure that is prepared to hit the whole market immediately as opposed to what the company has done in the past. And I think that can't be underestimated. All of this strategy -- all of this is very consistent with the strategy that I've laid out for everyone from the first day I got here, was build a commercial infrastructure, build a multiproduct portfolio, and then collaborate with others really well so that you could demonstrate the power of HiFi, and this is just another part of that. And so I fully expect the commercial organization to leverage that to give us a stronger inflection than it's happened in the past. And I do also think that the market itself is so much bigger than it's ever been. And so -- and the interest in HiFi in particular, because it is so accurate and provides all of the benefits of completeness and structural variation and epigenetics, which are all going to be really important to disease research, then translate – and translational research into actual clinical application where we get that long-term durability. And so yes, I do think -- I think you've got to change the playbook because we've changed the company pretty significantly.

是的。我認為——出於幾個不同的原因，我確實認為這是一本新的劇本。第一個原因是，我們在我任職的第一時間在這裡建立了一個新的商業基礎設施，與公司過去所做的不同，它準備立即進入整個市場。我認為這不能被低估。所有這些策略——所有這些都與我從我來到這裡的第一天起就為每個人制定的策略非常一致，即建立一個商業基礎設施，建立一個多產品組合，然後與其他人很好地合作，所以您可以展示 HiFi 的強大功能，這只是其中的一部分。因此，我完全期望商業組織能夠利用這一點為我們提供比過去更強大的變化。而且我也確實認為市場本身比以往任何時候都大得多。所以——尤其是對 HiFi 的興趣，因為它非常準確，並提供了完整性、結構變異和表觀遺傳學的所有好處，這些對疾病研究都非常重要，然後翻譯——和轉化對實際臨床應用進行研究，從而獲得長期耐用性。所以是的，我確實認為 - 我認為你必須改變劇本，因為我們已經非常顯著地改變了公司。

The next question comes from Kyle Mikson with Canaccord.

下一個問題來自 Canaccord 的 Kyle Mikson。

It's Kyle Mikson from Canaccord. I guess just starting first with the fourth quarter and then going to the new products, [salon 4Q [. Just any qualitative comments, Christian, on customers that were in your 4Q or even like 1Q '23 signal-to-order funnel that you think have converted to Revio like will convert? Any pull guidance? So the fourth quarter could be strong, it could be live for sure. I guess if there is a shortfall, how much of that do you expect will be the macro pressures versus select delayed instrument purchases?

是來自 Canaccord 的 Kyle Mikson。我想剛從第四季度開始，然後是新產品，[沙龍 4Q [。克里斯蒂安，對於您的 4Q 甚至像 23 年 1Q 信號到訂單漏斗中的客戶，您認為已經轉換為 Revio 的客戶是否會進行任何定性評論？有拉指導嗎？所以第四季度可能會很強勁，它肯定會出現。我想如果出現短缺，您預計宏觀壓力與選擇延遲購買的工具有多大？

Yes. Great question, Kyle. I think I'll start with the -- how does our fourth quarter funnel look today versus it did 2 weeks ago. And I would say that Revio has -- everyone is going back to see if they can find the additional capital or many people are trying to find the additional capital so that they can purchase Revio -- and so I think there is an impact there. There still is Sequel IIes in the funnel that we expect to close in the fourth quarter, and we're pretty confident we'll close as Sequel IIe, not reviews. And whether they get across the goal line every quarter is a new adventure. But we're seeing a base level line of demand for Sequel IIe but obviously predominant demand for Revio. We've got lots and lots of quotes in the -- out there already. And it's a real testament to our commercial operations group. They were ready to go as soon as I got on stage at the [Novo], and we were quoting effectively that night already, which was pretty cool.

是的。好問題，凱爾。我想我將從 - 我們的第四季度漏斗今天與兩週前相比如何。我會說 Revio 有——每個人都回去看看他們是否能找到額外的資本，或者很多人正試圖找到額外的資本以便他們可以購買 Revio——所以我認為那裡會產生影響。我們預計將在第四季度結束的漏斗中仍有 Sequel IIes，我們非常有信心我們將作為 Sequel IIe 結束，而不是評論。他們是否每個季度都能越過球門線是一次新的冒險。但我們看到了對 Sequel IIe 的基本需求線，但顯然對 Revio 的需求占主導地位。我們已經有很多很多的報價了。這是對我們商業運營團隊的真實證明。當我在 [Novo] 上台時，他們就準備好了，而且當晚我們已經有效地引用了，這非常酷。

When I think about Q4, Q1, that we still have -- we're doing all of this under a pretty negative macro backdrop. We still have inflation tiers and interest rates have gone up a lot. So people that are leasing their systems, that's getting more expensive for them. Europe continues to be challenged just all around even – and as Susan pointed out in her remarks, Americas in Q3 -- it wasn't really a great quarter for us in Q3 for principally macroeconomic and the whisper that new products were on the horizon. And so we had to manage that. We knew that day was going to come -- and we felt very strongly that if we could announce the new products in early in Q4, that would give people time to get their budgets ready for next year. So there was a lot of strategy behind figuring out how to do this in Q4 if we could. And so that's where we are. I think I answered your question in a pretty[circuitous] way, but it is a combo of macro factors still going to be overhanging us. I think well into next year, I don't really see that. The one bright spot is I do think China is starting to open back up. We talked about strong consumables there and there's definitely strong demand for Revio in APAC, no question about it. So we'll see how that goes

當我想到第四季度和第一季度時，我們仍然有——我們是在非常負面的宏觀背景下做這一切的。我們仍然有通貨膨脹等級，利率已經上升了很多。因此，出租他們的系統的人，這對他們來說變得越來越昂貴。歐洲繼續受到全面挑戰——正如蘇珊在她的講話中指出的那樣，第三季度的美洲——對於我們來說，第三季度主要是宏觀經濟和新產品在市場上的傳言，這並不是一個很好的季度。地平線。所以我們必須管理它。我們知道那一天將會到來——我們非常強烈地認為，如果我們能夠在第四季度初宣布新產品，那將讓人們有時間為明年的預算做好準備。因此，如果可以的話，在第四季度弄清楚如何做到這一點背後有很多策略。這就是我們所處的位置。我想我以一種相當[迂迴]的方式回答了你的問題，但它是宏觀因素的組合，仍然會影響我們。我認為明年會很好，我真的看不到這一點。一個亮點是我確實認為中國正在開始重新開放。我們在那裡談到了強大的消耗品，毫無疑問，亞太地區對 Revio 的需求肯定很大。所以我們會看看情況如何

Okay. That was great question. And at ASH, there was a lot of excitement and demand, I guess, for Revio and Onso based on the last 2 weeks since the announcement, can you just talk about like the customer types that you think Revio has unlocked beyond the legacy Sequel IIe user base? And then with respect to the synergies with Onso, how does the dynamic that I just mentioned to help you get in the door there? So are any of these incremental customers like obvious users of a platform like [Onso that] wouldn't have been a touch point for you previously?

好的。這是一個很好的問題。在 ASH 上，我猜 Revio 和 Onso 在宣布發布後的最後兩週內有很多興奮和需求，你能不能談談你認為 Revio 在傳統 Sequel IIe 之外解鎖的客戶類型用戶群？然後關於與 Onso 的協同作用，我剛才提到的動力如何幫助您進入那裡的大門？那麼，這些增量客戶中的任何一個是否都像 [Onso that] 這樣的平台的明顯用戶，以前不會成為您的接觸點？

I think it's a little bit of everything. Basically, we're just broadening our reach and our footprint pretty generally across the space. But I can take a specific examples of population-scale programs that are either underway or being contemplated now that, wow, Revio should be a bigger part of that than they ever thought maybe PacBio should be or if we'd be even in the game at all. So I would say that's one really exciting area. I do think that continued translational research in rare and undiagnosed disease. This gives better price points, faster turnarounds, better – more data. And so I think that there's real opportunities there. And we have had a lot of customers ask us about 2 things. The Revio Sequel IIe bundle because that's a short-term program that we have, so people can get into Sequel IIe.

我認為這只是一點點。基本上，我們只是在整個空間範圍內擴大我們的範圍和足跡。但是我可以舉一個人口規模計劃的具體例子，這些計劃要么正在進行，要么正在考慮中一點也不。所以我想說這是一個非常令人興奮的領域。我確實認為在罕見和未確診的疾病中繼續進行轉化研究。這提供了更好的價格點、更快的周轉時間、更好的——更多的數據。所以我認為那裡有真正的機會。我們有很多客戶問我們兩件事。 Revio Sequel IIe 捆綁包，因為這是我們擁有的短期計劃，因此人們可以進入 Sequel IIe。

We've had some interest in that. but also interest in the Revio-Onso bundle. And what's cool about that is that at list price, it's still cheaper than some of our competitors' larger systems and gives you best-of-breed capabilities in long and short reads. And I don't think that's lost on customers. I see -- I think they have a view of, “Wow, if I can get best-of-breed solutions and then from one company that it's actually a pretty intriguing opportunity.” We'll see how it actually plays itself out as we get on so closer to actual shipments. But there definitely is a lot of excitement about that.

我們對此有些興趣。但也對 Revio-Onso 捆綁包感興趣。最酷的是，以標價計算，它仍然比我們的一些競爭對手的大型系統便宜，並為您提供最佳的長讀和短讀能力。而且我認為客戶並沒有忘記這一點。我明白了——我認為他們有這樣的看法，“哇，如果我能從一家公司獲得最好的解決方案，那麼這實際上是一個非常有趣的機會。”我們會看看它是如何發揮作用的隨著我們離實際出貨量越來越近，它本身就出來了。但肯定有很多令人興奮的事情。

This concludes our question-and-answer session. I would like to turn the conference back over to Todd Friedman for any closing remarks.

我們的問答環節到此結束。我想把會議轉回托德弗里德曼的任何閉幕詞。

Thank you. As a reminder, a replay of this call will be available on the investor website -- section of our website. Thank you for joining us. This concludes our call today, and we look forward to seeing you next week at our Investor Day in New York. Thank you.

謝謝你。提醒一下，本次電話會議的重播將在投資者網站上提供——我們網站的部分。感謝您加入我們。今天的電話會議到此結束，我們期待下週在紐約投資者日與您相見。謝謝你。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。