Singular Genomics Systems, Inc. (NASDAQ:OMIC) Q4 2022 Earnings Call Transcript

Drew Spaventa: Yes, it has. I think we — we talked about Max Read being a technology that can serve other types of short read applications. So internally, we have kind of re-prioritized our road map on kit development. Single-cell RNA will be the first Max Read application. And beyond that, we’re looking at a traditional RNA-Seq application to develop. And then we have a list beyond that we haven’t really decided on, but there’s another couple of applications that are using the academic environment that lend themselves to short reads. And then I think to the point you’re getting at, yes, the reception, specifically at AGBT and the nature of how our funnel has grown from, say, Q4 to now, we’ve seen our funnel in terms of a qualified lead more than doubled in the last 3 to 4 months. And a lot of that — those additions to the funnel are academics who look at the Max Read kits and say that solves a unique solution for me, and that’s really a motivator or driver to adopt.

Matt Sykes: Got it. And just maybe one last one. Just sort of on the ramp this year, thanks for the color on sort of the cadence in the beginning of the year. As you kind of prepare for ramping in the back half of this year, what’s sort of like the, sort of, initial installed base that you’d kind of look to have to get sort of the comfort that things are kind of inline, performing well? You’ve taken care of a lot of the clear issues. And on the manufacturing side, you’re ready to scale up. Like is there sort of a target number that you’re looking for that you want to get to? Or is it more just about, just the collection of feedback you’re getting?

Drew Spaventa: It’s a good question. I think if you go back to the comments and the color we provided, I think it was almost 6 months ago now, on being able to do 2 to 4 units per month moving into this year, we don’t think it’s going to be necessarily 2 to 4 units per month every month, especially in the first half. We think it’s going to be lumpy. Like I said, we took some time to implement change in the first half of this quarter. But if you think about that 2 to 4 as an average over the whole year, I think we expect to be somewhere in that range, just back-end loaded. So again, I think we feel really good about where we are, but it’s definitely going to be one of those situations where we monitor and learn as we put the next wave of instruments out and gauge appropriately.

So I think — hopefully that gives you an idea. On the low end, 2 to 4, you’re in the low 20s and the high-end, you’re up into the low 40s, mid 40s. So I think somewhere in the middle of there is ideally where we would be, but it’s hard to articulate where that will be, just given the fact that we are going to make sure we pace our deployments with making sure every customer has success and the instruments are performing as we like.

Matt Sykes: Got it. Thanks very much and congrats on the revenue milestone in Q4.

Drew Spaventa: Thanks.

Operator: Thank you. Thank you. Our next question is coming from Dan Brennan with Cowen. Please post your question.

Daniel Brennan: Great. Thanks, guys. Maybe the first one, Drew and Dalen. So just — I know you’ve given a lot of color so far, but what is it that is specifically pointing you to the lower end? It doesn’t sound like it’s demand. You say you want to delight your customers. Is this something about what’s going on with the first product in the field and the training and it’s taking longer or there are issues? Just kind of what is pointing to the lower end?