Q1 2024 Akoya Biosciences Inc Earnings Call Transcript
Key Points
- Akoya Biosciences Inc (AKYA) reported a 23% increase in reagent revenue from the previous year, totaling $7 million, driven by strong sales and an industry-leading installed base of 1,213 instruments.
- Services revenue grew by 5% to $6.2 million, indicating steady growth in lab services business.
- The company successfully launched a new manufacturing center of excellence in Marlboro, Massachusetts, which is now fully operational and expected to drive increased margins and expand available applications on platforms.
- Akoya Biosciences Inc (AKYA) announced strategic partnerships with Shanghai KR Pharmtech and NaraCare, enhancing its market presence in China and providing personalized therapy selection for melanoma patients.
- The company has maintained a strong focus on operational and clinical objectives, including receiving Fast Track and breakthrough device designations for ACR-368 therapy, which shows promise in addressing significant unmet treatment needs.
- First quarter results fell short of expectations with total revenue of $18.4 million, a 14% decline compared to the previous year, primarily due to weak instrument placements.
- Systemic pressure on capital expenditures continued to affect the business, including elongated sales cycles and increased scrutiny on capital purchases.
- Revenue shortfall was also impacted by temporary product availability issues due to the transition to the new manufacturing center, affecting reagent fulfillment times and delaying instrument purchases.
- Certain pharmaceutical partner lab services revenue recognition was deferred to the second half of 2024, contributing to the revenue shortfall.
- Despite efforts to streamline operations, Akoya Biosciences Inc (AKYA) faced challenges with inventory management, leading to a $2 million inventory write-off from discontinued legacy instruments.
Good day, and thank you for standing by. Welcome to the Akoya Biosciences First Quarter 2024 Earnings Conference Call.
(Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker, Priyam Shah, Head of Investor Relations. Please go ahead.
Thank you, operator, and thank you to everyone who's joining us today on this call. I'm Priyam Shah, Head of Investor Relations at Akoya Biosciences. On the call today, we have Brian McKelligon, Chief Executive Officer; and John Ek, Chief Financial Officer. Earlier today, Akoya released financial results for the first quarter ended March 31, 2024. A copy of the press release is available on the company's website.
Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the
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