Illumina, Inc. (NASDAQ:ILMN) Q4 2022 Earnings Call Transcript

Joydeep Goswami: Yes. I mean, Francis, just to dovetail on that, right, David, you had asked about, yes, there are cash constraints with people trying to reduce cash burn. But it’s important to understand that, A, sequencing is at the very heart of the value that these companies are generating and even academic institutions are generating, right? So they want to do more sequencing because sequencing gives them answers that other technologies are not giving them and at scale. I think the second point that Francis mentioned is really important, right, that when they look at their cash burn, something like the X or a NextSeq 1000/2000 actually allows them to reduce their expenditure elsewhere, like things around storage or compute or other things, right, and allows them to redirect their investments more positively into areas that add value.

And that’s a really important point as you think through. And then the third thing is just what they’re doing in elasticity, demand elasticity or new applications that Francis and Susan and others have pointed out earlier, which is moving to things that they have not done with the NovaSeq 6000s or any other instruments before, which really then pulls through the elasticity that we are expecting to see starting in 2023 but really picking up in 2024 and beyond as the Xs become fully entrenched.

Operator: And with that, that is all the time we have for our question-and-answer session. I would now like to turn the call back over to Salli Schwartz for any additional or closing remarks.

Sallilyn Schwartz: Well, thank you for joining us today. As a reminder, a replay of this call will be available in the Investors section of our website. This concludes our call, and we look forward to seeing you at upcoming conferences and other events.

Operator: And this concludes today’s call. You may disconnect.