NanoString Technologies Inc (NASDAQ:NSTG) Q3 2019 Earnings Conference Call - Final Transcript
Nov 04, 2019 • 04:30 pm ET
Thank you for standing by, and welcome to NanoString's Third Quarter 2019 operating results. At this time all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Doug Farrell, VP of Investor Relations. Please go ahead.
Thank you, operator. Good afternoon, everyone. On the call with me today is our CEO and President Brad Gray as well as, our CFO Tom Bailey.
Earlier this afternoon, we released our financial results for the third quarter of fiscal year 2019. If you have not seen that press release yet, you can find it on our website.
During this call, we will make a number of statements that are forward-looking, including statements about financial projections, existing and future collaborations, future business growth, trends and related factors, prospects for expanding and penetrating our addressable markets, our strategic focus and objectives and the development status and anticipated success of recent and planned product offerings. Forward-looking statements are subject to risks and uncertainties, many of which are beyond our control, including those described from time to time in our SEC filings. Our results may differ materially from those projected on the call today, and we undertake no obligation to publicly update any forward-looking statements.
Later this week, we'll be attending the AMP Conference in Baltimore, hope to see many of you there. And the week after that -- sorry, two weeks after that, we'll be in New York for both Stifel and Canaccord. I know we've got a number of you in the line on our calendars there.
So with that, I'm going to turn the call over to Brad.
Thanks, Doug. Good afternoon, and thank you for joining us today. I'm happy to report that our third quarter results reflect strong execution and continued commercial momentum across the business. During Q3, we grew our product and service revenue by 23%, driven by 48% growth in instrument revenue. Our core nCounter business delivered its seventh straight quarter of double-digit growth with solid results across both academic and biopharma customers. Shipment of our first commercial GeoMx DSP systems accelerated our top line revenue growth and generated resoundingly positive customer feedback. With our GeoMx DSP revenue tracking toward the top end of our previous range, we are updating fiscal year 2019 guidance for product and service revenue. In my prepared remarks, I'll provide an update on progress toward achieving our strategic objectives for 2019, before turning the call over to Tom to review the details of our operating results for the quarter and outlook for the balance of the year.
As we outlined back at the beginning of the year, our first strategic objective for 2019 is to sustain double-digit growth in our core nCounter business. We have consistently met this objective, and during Q3, delivered core nCounter revenue growth of 12%. nCounter instruments revenue grew 8% to $5.8 million, bolstered by particularly strong demand from biopharma