NEW YORK – NanoString Technologies reported after market close on Monday that its Q3 revenues grew 63 percent year over year, in line with preliminary revenues announced last month.
For the three months ending Sept. 30, the Seattle-based spatial biology company's total revenues were $48.1 million, compared to $29.5 million a year ago, beating analysts' consensus estimate of $47.2 million.
Instrument revenues were $23.6 million, almost tripling the Q3 2022 revenues of $8.0 million. The firm's consumable revenues were $18.3 million, up 10 percent from $16.6 million in the year-ago period. Service and other revenues were $6.2 million, up 27 percent from $4.9 million in Q3 2022.
NanoString's Q3 spatial biology revenues were $28.9 million, while its nCounter revenues, inclusive of all service and other revenue, totaled $19.2 million for the quarter.
During the quarter, NanoString said it "successfully defended sizeable CosMx instrument order book" amidst the ongoing IP litigation with 10x Genomics, as it fulfilled or retained approximately 95 percent of the cumulative orders for the platform.
By the end of Q3, the company said it grew its total spatial biology system installed base to approximately 510 systems, representing a roughly 55 percent increase year over year. The total installed base of its nCounter platforms was approximately 1,140, an increase of approximately 3 percent compared to the same period last year.
NanoString's Q3 net loss swelled to $37.4 million, or $.78 per share, from approximately $36.7 million, or $.79 per share, in the same period last year. This failed to meet analysts' average expectation of a loss per share of $.58.
NanoString's Q3 R&D spending remained almost flat at $17.1 million compared to $17.0 million in Q3 2022. Its SG&A expenses increased 9 percent to $36.8 million from $33.8 million.
The company finished the quarter with cash and cash equivalents of $93.8 million and short-term investments of $3.3 million.
For full-year 2023, NanoString narrowed its total revenue outlook to $175.0 million to $180.0 million, as compared to the previous range of $175.0 million to $185.0 million. Of those, spatial biology revenues are expected to be $96.0 million to $100.0 million versus the previous range of $100.0 million to $105.0 million; nCounter revenue, inclusive of all service and other revenue, is estimated to be $79.0 million to $80.0 million, instead of the previous range of $75.0 million to $80.0 million.
In conjunction with the Q3 financial results, NanoString also announced that it had reached an agreement with holders to exchange approximately $216 million, or 94 percent, of the principal amount of its convertible senior notes due March 1, 2025, for new senior secured notes due Sept. 1, 2026.
According to NanoString, the new notes have a yearly interest rate of 6.95 percent, with interest payable quarterly, and are secured by "substantially all of the assets of the company."
"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," NanoString CFO Thomas Bailey said in a statement. "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."