On November 6, 2023, NanoString Technologies Inc (NSTG, Financial), a leading provider of life science tools for discovery and translational research, announced its financial results for the third quarter ended September 30, 2023. The company reported a record Q3 revenue of $48.1 million, marking a 63% year on year growth and exceeding the upper end of the Q3 guidance range.
Financial Highlights
The company's total revenue for the third quarter was $48.1 million. The spatial biology revenue stood at $28.9 million, while nCounter revenue, inclusive of all service and other revenue, was $19.2 million. The company's cash, cash equivalents, and short-term investments balance was $97.1 million as of September 30, 2023.
Spatial Biology Performance
NanoString Technologies Inc (NSTG, Financial) reported a 350% year-over-year growth in Q3 spatial biology instrument revenue. The company successfully defended a sizeable CosMx instrument order book, fulfilling or retaining approximately 95% of cumulative orders as of September 30, 2023. Spatial biology consumables revenue also grew by 70% year-over-year.
nCounter Performance
The company recorded nCounter revenue, inclusive of all service and other revenue, of $19.2 million and approximately $37,000 of annualized pull-through. The total installed base of nCounter platforms was approximately 1,140, an increase of approximately 3% year-over-year.
Financial Outlook for 2023
The management updated its financial outlook for 2023, expecting total revenue of $175 to $180 million. Spatial biology revenue is projected to be $96 to $100 million, and nCounter revenue, inclusive of all service and other revenue, is expected to be $79 to $80 million. The adjusted EBITDA loss is estimated to be approximately $80 to $85 million.
CEO's Commentary
“The last few months have been extraordinarily productive for our team. During the third quarter, we delivered record revenue while reducing our cash burn by nearly 50% sequentially,” said Brad Gray, President and CEO of NanoString. “In the early weeks of Q4, we took critical steps to transform our financial profile through a reorganization that helps support our march to breakeven, and sets us up to achieve our goal of a first full year of profitability in 2025.”
CFO's Commentary
“We were pleased to complete the exchange transaction with the largest holders of our Convertible Notes, with these major investors showing their conviction in our business opportunity,” said Thomas Bailey, Chief Financial Officer of NanoString. “The longer-dated notes provide the window needed for us to achieve profitability prior to maturity, which we believe will support improved terms and availability of any new financing that may be required. In addition to the maturity date extension, updated terms allow for payment-in-kind interest for the first year as we work to optimize our cash burn and profitability profile.”
Explore the complete 8-K earnings release (here) from NanoString Technologies Inc for further details.
