NanoString Technologies ( NASDAQ: NSTG ) stock fell ~19% premarket on Tuesday after Q3 revenue missed estimates and the company reduced its FY22 revenue outlook.
Net loss widened to $36.69M, compared to -$31.26M in Q3 2021.
Total revenue declined -20.48% Y/Y to $29.54M, and missed analysts estimates.
Product and service revenue fell -20.2% Y/Y to $29.47M. Collaboration revenue was $75K, compared to $226K in Q3 2021.
"The third quarter and year-to-date 2022 have presented challenges as our business mix has continued to evolve, and we have taken steps to streamline our cost structure while maintaining our investments in spatial biology," said NanoString's CFO Tom Bailey.
Revenue from Instruments decreased -44.65% Y/Y to $8.02M, while revenue from Consumables declined -8.02% Y/Y to $16.58M.
Services revenue grew +10.45% Y/Y to $4.86M.
Research and development expenses declined to $16.99M, compared to ~$19.18M in Q3 2021.
Outlook :
NanoString said total product and service revenue is expected between $125M and $127M, compared to previous guidance of $140M to $150M, reflecting an order mix that is weighted more heavily to CosMx, with material CosMx revenue recognition expected to begin in 2023.
Cumulative orders for ~140 CosMx systems expected by the end of 2022, representing a total revenue value of more than $30M.
"With our strong balance sheet and 2023 revenue backlog, we expect improved profitability in the future and to reach cash break-even with our current financial resources," added Bailey.
The company now expects adjusted EBITDA loss of about -$100M, compared to previous outlook of -$75M to -$85M.
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NanoString slumps 19% as Q3 revenue falls, cuts FY22 revenue outlook