Olink Holding AB (publ) (OLK) Q4 2022 Earnings Call Transcript

Olink Holding AB (publ) (NASDAQ:OLK) Q4 2022 Results Conference Call February 21, 2023 8:00 AM ET

Company Participants

Jan Medina - Vice President, Investor Relations & Capital Markets

Jon Heimer - Chief Executive Officer

Carl Raimond - Chief Commercial Officer

Oskar Hjelm - Chief Financial Officer

Conference Call Participants

Puneet Souda - SVB

Sung Ji Nam - Scotiabank

Kyle Mikson - Canaccord Genuity

Matt Sykes - Goldman Sachs

Tejas Savant - Morgan Stanley

Operator

Good morning, ladies and gentlemen. Thank you for opinionated by. Welcome to nan Olink Proteomics Fourth Quarter 2022 Earnings Conference Call. At this time, each participants are successful a listen-only mode. After nan speakers' presentation, there’ll beryllium a question-and-answer session. [Operator Instructions]. Please beryllium advised that today's convention is being recorded.

I would now for illustration to manus nan convention complete to your speaker big coming Jan Medina, Vice President, of Investor Relations and Capital Markets. Please spell ahead, sir.

Jan Medina

Thanks, Libya, and bully morning, everyone. Thank you each for participating successful today's convention call. On nan telephone we person from Olink, we person Jon Heimer, Chief Executive Officer; Carl Raimond, Chief Commercial Officer; and Oskar Hjelm, Chief Financial Officer.

Earlier today, Olink released financial results for nan 4th fourth that ended December 31, 2022, and a transcript of nan property merchandise and an updated firm position is disposable connected nan company's website.

Before we begin, I'd for illustration to punctual you that Management will make statements during this telephone that see forward-looking statements wrong nan meaning of nan U.S. national securities laws, which are made pursuant to nan Safe Harbor provisions of nan U.S. Private Securities Litigation Reform Act of 1995.

Any statements contained successful this telephone that subordinate to expectations aliases predictions of early events, results, aliases performance, are forward-looking statements. Actual results whitethorn disagree materially from those expressed aliases implied successful nan forward-looking statements owed to a assortment of factors. For a database and descriptions of nan risks and uncertainties associated pinch Olink's business, please mention to nan consequence factors conception connected Form 20-F, committee record number 001-40277, revenge pinch nan U.S. Securities and Exchange Commission connected March 17, 2022, and successful our different filings pinch nan SEC. We impulse you to see these factors and you should beryllium alert that these statements should beryllium considered estimates only and are not a guarantee of early performance.

Also successful our remarks aliases responses to questions, guidance whitethorn mention immoderate non-IFRS financial measures. Reconciliations of adjusted gross profit and EBITDA, changeless rate gross growth, and definite different non-IFRS financial measures to nan astir straight comparable IFRS measures, are disposable successful nan caller net property merchandise disposable connected nan company's website.

This convention telephone contains time-sensitive accusation and is meticulous only arsenic of nan unrecorded broadcast today, February 21, 2023. Olink disclaims immoderate volition aliases responsibility to update aliases revise immoderate financial projections aliases forward-looking statements, whether because of caller information, early events, aliases otherwise, isolated from arsenic required by law.

And pinch that, I will move nan telephone complete to Jon. Jon?

Jon Heimer

Thank you, Jan, and bully morning, everyone, and acknowledgment for joining Olink's 4th fourth 2022 net call. I'll statesman pinch a reappraisal of Olink's 2022 accomplishments, including caller operational, financial, and strategical milestones. I'll past move nan telephone complete to Carl, for specifications connected our very beardown commercialized results and guidance. And past Oskar will talk nan company's financial performance.

Q4 was different beardown 4th and 2022 was different beardown twelvemonth for Olink. Our capacity would not beryllium imaginable without nan tremendous talent and thrust of nan full organization. Olink met aliases exceeded each awesome firm extremity and put moreover much region betwixt america and our competitors.

Through subject and customer-based marketplace development, merchandise design, and industry-leading execution, Olink has go nan leader of nan modern proteomic field, creating caller insights astatine an unprecedented standard crossed nan full investigation and improvement continuum.

Over time, we expect Olink will alteration proteomics to specify a caller attack to treating disease, providing caller options for patients and each healthcare stakeholders. Proteomics is quickly becoming nan astir applicable OMNIC [ph] for researchers and supplier developers worldwide.

In nan 4th quarter, we delivered gross of $57.9 million, representing 33% maturation complete nan 4th fourth of 2021. While nan full-year 2022 revenues were $139.8 million, a 47% summation compared to nan afloat twelvemonth 2021. Once again, nan 4th was highlighted by beardown maturation from Explore Kits, and Kits gross overall, demonstrating beardown advancement successful our merchandise operation goals.

Other quarterly highlights included profitability, different grounds number of explorer externalizations, and continued beardown capacity successful nan debased and mid-plex markets by Signature Q100 and Target. We proceed to spot an description of proteomic workflows wrong customer counts passim nan full Olink portfolio. This includes exploring users adopting nan Signature and Target platforms arsenic their activity demands, arsenic good arsenic debased to mid-plex users moving towards hi-plex projects.

As we showcased connected our investor time past November, Q4 was not simply astir fantabulous financial performance, but besides astir innovation. We proceed to make advancement successful expanding nan number of validated PA assays, and by nan extremity of 2022, we had a room of much than 5,000 cautiously validated by our marketplace Targets. Surpassing an important soul R&D milestone toward our extremity of expanding throughput and simplifying workflows pinch nan Olink platform.

Also, successful Q4, we launched Olink Insight, an open-access level for nan world investigation organization and Olink customers to stock information and insights that will accelerate nan worth created by proteomics. We besides launched Olink Flex, a made-to-order merchandise that allows customers to create mini macromolecule panels from our room while offering some comparative and absolute complication.

After achieving nan important milestone of 1,000 published investigation studies successful November, nan number of PA-based publications continues to increase, pinch a full now reaching much than 1100, covering each awesome therapeutic class from investigation and find to nan downstream objective settings.

One specified publication from Professor Charlotte Teunissen Group successful Amsterdam provides a striking illustration of large-scale biomarker find that tin beryllium utilized to place and validate macromolecule Signature utilizing 1 scalable technology, successful this case, PA.

In a study, looking astatine different stages of AD, non-AD dementia, and patient controls, her squad qualify CSF proteomes aliases group utilizing 11 Olink Target 96 panels. The find shape identified complete 100 proteins dysregulated successful AD and pinch data-driven modeling identified an eight-protein Signature and a 99-protein Signature, some discriminating AD from non-AD dementia pinch nan beardown area nether nan curves.

12 proteins were past selected to conception a civilization biomarker sheet that showed precocious capacity successful a validation study, pinch an AUC of 0.95 for AD versus controls, and 0.79 for AD versus non-AD dementia. With nan unthinkable situation that Alzheimer's illness poses to quality health, caller advances specified arsenic this will beryllium needed to amended outcomes.

In summary, Olink continues to thrust some nan subject and invention of proteomics, delivering for customers and patients crossed life sciences and astir nan world, and we look guardant to continuing this contented successful nan months and years ahead.

I'll now move nan telephone complete to Carl to supply a fewer much specifications connected nan quarter. Carl?

Carl Raimond

Thank you, Jon. First, I'd for illustration to convey nan full commercialized squad for their unthinkable efforts yet again during nan 4th fourth and nan full year, your efforts and results person been genuinely remarkable. As for nan quarter, 4th fourth maturation was driven by spot broadly crossed our customer guidelines pinch a precocious level of liking from some world and biopharma customers. We proceed to spot important liking from work providers for some Explore and Signature, while our beingness pinch work providers is still successful -- its early innings, we judge this increasing liking bodes very good for nan future.

Regarding nan year-end spending environment, during nan quarter, we noticed that nan end-of-year fund flush situation was not rather arsenic robust arsenic we had seen successful erstwhile years. However, nan appetite for proteomic spending and Olink specifically continued to beryllium strong, starring america to judge that successful our conception of omics [ph], spending remained a privilege for customers, moreover arsenic headwinds arose connected a macro basis.

Now to specifics of nan quarter's results driven by nan robust capacity of our Kit business and Explore platform, full gross grew 33% and 47% successful Q4 and afloat twelvemonth 2022 respectively. In Q4, this full was comprised of $30.6 cardinal successful Kit revenue, $23.4 cardinal successful study services revenue, and $3.9 cardinal successful other.

Once again, Kit operation powerfully improved quarter-over-quarter and for nan afloat year, reaching 53% and 39% for Q4 and afloat twelvemonth 2022 respectively. Overall Kits gross doubled successful 2022 versus 2021.

Other gross totaled $3.9 cardinal successful Q4 2022, which incorporated reduced Agrisera gross arsenic it focused connected soul Olink R&D activities alternatively than outer sales. For nan afloat twelvemonth 2022, different gross was $11.7 cardinal up 48%.

Total Explore gross of $43.2 cardinal was 75% of our full gross successful Q4 and connected a trailing 12-month ground represented 71% of full revenue. We doubled Explore externalizations successful 2022, adding 12 successful Q4 unsocial and 23 successful nan 2nd half, reaching 52 by year-end 2022. Q4 Explore externalizations were nan astir ever during a azygous quarter. These installations successful aggregate correspond astir $1.1 cardinal successful yearly sample measurement imaginable and we achieved astir $800,000 successful mean customer pull-through during nan 12 months that ended December 31, 2022.

We besides delivered 28 caller Signature instruments to customers successful Q4 and much than tripled nan installed guidelines during 2022, reaching a full of 91 by nan extremity of nan year. Signature take continues to show our spot successful nan mid and low-plex segments pinch uptake by caller and existing customers. We've besides seen an expanding number of institutions that now person aggregate Signature instruments, which bodes good for 2023 prospects.

In summation to nan beardown capacity from some Signature and Explore, successful nan 4th quarter, we besides introduced Olink Insights and Olink Flex, which let for a much customized proteomics investigation process and some addressing eager customer needs. We position continued merchandise improvement for illustration this to beryllium a cardinal differentiator for Olink arsenic a leader of nan modern proteomics era.

In summation to continued finance successful our soul merchandise improvement gait and capability, we are besides actively monitoring outer finance opportunities, including bolt-on M&A to augment our antibody antigen improvement and proviso concatenation capabilities. We are focused and disciplined successful our valuation of outer opportunities and we judge it is imperative to find a partner, who shares Olink's taste committedness to invention and worth to customers.

Investing successful talent, remained a apical privilege successful 2022 arsenic well. We started nan 4th fourth pinch 548 labor and reached 582, upon entering nan New Year, including 208 afloat clip labor connected nan commercialized team.

Lastly, arsenic you recall, we provided 2023 guidance, conscionable complete a period agone and we are reiterating that guidance today. We expect afloat twelvemonth 2023 reported gross to beryllium successful a scope of $192 cardinal to $200 million, representing maturation of astir 37% to 43% complete 2022. In 2023, we expect different twelvemonth of beardown execution successful nan sizable and expanding proteomics marketplace that offers important runway for Olink's growth.

I'll now move nan telephone complete to Oskar to supply further financials.

Oskar Hjelm

Thanks, Carl, and hello, everyone. As we announced past month, gross maturation was beardown erstwhile again successful nan 4th fourth of 2022, up 33% connected a reported ground and up 37% connected a changeless rate basis. For nan afloat twelvemonth 2022 reported gross maturation was 47% and changeless rate maturation was 53%. We proceed to put successful statement pinch our strategical plan, reporting adjusted EBITDA of affirmative $14.9 cardinal for nan 4th fourth of 2022, arsenic compared to antagonistic $1.4 cardinal for nan 4th fourth of 2021.

Full twelvemonth adjusted EBITDA was antagonistic $3.9 cardinal successful 2022 versus antagonistic $18.5 cardinal successful 2021. Clearly demonstrating nan inherent leverage successful our business model.

As Carl mentioned, astatine nan extremity of Q4, we had 52 externally placed gross generating Explore installations, moreover pinch a important number of caller externalizations successful nan 4th fourth and 2nd half of 2022, mean customer propulsion done complete nan past 12 months was a beardown 800

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in quarter-to-quarter propulsion through, which could beryllium further impacted by our customer spending seasonality. Overall, though, we expect continued maturation complete time.

Driven by a very beardown capacity from Explore arsenic good arsenic Target, nan full Kits gross for nan 4th fourth doubled to $30.6 cardinal arsenic compared to $15.3 cardinal for nan 4th fourth of 2021. Analysis Service gross for nan 4th fourth of 2022 was $23.4 cardinal versus $23.7 cardinal for nan 4th fourth of 2021. In statement pinch Olink's extremity of driving merchandise operation to Kits.

In addition, while year-over-year study services gross declined 1% successful Q4 2022 connected a reported basis, it grew astir 30% erstwhile adjusting for nan completion of nan UKB project. The operation of Kits versus study services proceed to amended quarter-over-quarter from 42% of full gross successful Q3 to 53% of full gross successful Q4, pinch a kit operation for each of '22, representing 39% of full gross expanding from 28% for nan afloat twelvemonth of 2021.

Led by waste of Signature Q100 instrument, different gross was $3.9 cardinal for nan 4th quarter, arsenic compared to $4.7 cardinal for nan 4th fourth of '21. Full twelvemonth 2022 different revenues totaled $11.7 versus $8 cardinal for 2021. As Carl discussed, different gross was impacted by Agrisera and our strategical Focus connected soul Olink R&D activities alternatively than outer sales.

By geography, gross during nan 4th fourth of 2022 was $31.9 cardinal successful North America, $20 cardinal successful EMEA including Sweden, and $6 cardinal successful China, nan remainder of nan world, including Japan. The year-over-year gross successful EMEA decreased 1% for nan 4th fourth connected a reported ground and grew astir 40% erstwhile adjusting for nan completion of nan UK Biobank project.

By surface science gross during nan afloat twelvemonth of 2022 was $66.5 cardinal successful North America, $57.7 cardinal successful EMEA, and $15.6 cardinal successful China and nan remainder of nan world. Consolidated adjusted gross profit was $44 cardinal successful nan 4th fourth of 2022 arsenic compared to $26.5 cardinal successful nan 4th fourth of 2021. Full-year 2022 adjusted gross profit totaled $97.9 cardinal versus $61.3 cardinal for 2021.

The adjusted gross profit separator for Kits was 87.6% for nan 4th fourth of 2022, arsenic compared to 85.1% for nan 4th fourth of 2021. The full-year 2022 adjusted gross profit separator for Kits was 88.4% versus 86.4% for 2021.

Q4 2022 adjusted gross profit separator for study work was 66.9% arsenic compared to 50.2% successful Q4 2021. The summation successful study work separator successful nan 4th fourth of '22 was owed to nan completion of nan UK Biobank task earlier successful nan year, and continuous improved operational ratio successful nan work lab. The study services squad has performed tremendously good complete nan past mates of years pinch nan transportation of nan UK Biobank task and nan continuous efforts to amended ratio successful operations.

As we participate nan 4th quarter, work margins reverted to nan much normalized levels of work historically. Full-year 2022, nan adjusted gross profit separator for study work was 60.1% versus 57.3% for 2021. The adjusted gross profit separator for others was 40.6% successful Q4 of 2022 arsenic compared to 34.1% successful Q4 of 2021.

Total operating expenses for nan 4th fourth of 2022 were $34.9 cardinal arsenic compared to $33.1 cardinal for nan 4th fourth of 2021. Full-year 2022 full operating expenses were $125.1 cardinal compared to $102.9 cardinal for 2021. The summation successful full-year 2022 was mostly owed to continued finance successful Olink's commercialized organization, investigation and development, and further nationalist institution costs.

Operating expenses are surgery retired arsenic follows: Selling expenses for Q2 of 2022 were $13.4 cardinal versus $12 cardinal for Q4 2021, administrative expenses for Q2 2022 were $13.9 cardinal versus $11.8 cardinal for Q4 2022, and R&D full $6.6 cardinal and $8.7 cardinal for Q4 2022 and Q4 2021 respectively.

Other operating nonaccomplishment was $1.1 cardinal successful a 4th arsenic compared to different successful nonaccomplishment of $600,000 successful Q4 2021. Net income for nan 4th fourth was $5.4 cardinal arsenic compared to a nett nonaccomplishment of $8 cardinal for nan 4th fourth of 2021. Net income per stock was $0.05 arsenic compared to a nonaccomplishment of $0.07 per stock for nan 4th fourth of 2021. The nett nonaccomplishment for nan afloat twelvemonth of 2022 was $12.9 cardinal arsenic compared to a nett nonaccomplishment of $38.3 cardinal for nan afloat twelvemonth of 2021. The nett nonaccomplishment per stock was $0.11 arsenic compared to a nett nonaccomplishment per stock of $0.43 successful nan afloat twelvemonth of 2021.

We ended 2022 pinch $75 cardinal successful rate and rate equivalent, aft nan adjacent of nan 4th quarter, we successfully executed a superior offering that raised $95 cardinal pinch some our rate equilibrium pursuing nan financing to much than $170 million. With respect to our rate balance, we will stay focused and disciplined pinch nan usage of nan equilibrium expanse and expect to run wrong our profitability guidance.

Including our scheme is nan acceleration of finance successful respective soul strategical initiatives specified arsenic nan further description of our macromolecule room and plus development. Additionally, we will proceed to measure outer opportunities to augment our capabilities to execute our semipermanent strategical goals.

As we participate 2023. The outer opportunity group continues to germinate pinch some value plus readiness and pricing seeming to beryllium much reasonable than successful anterior periods. As pinch our erstwhile investments, we thin to stay focused connected delivering worth to our customers and shareholders complete clip pinch a continued subject astir nan usage of our equilibrium sheets.

Now to our guidance. When considering nan continued beingness of aggregate macroeconomic headwinds this year, Olink expects different beardown twelvemonth of maturation pinch industry-leading maturation successful 2023. We expect 2023 full-year reported gross maturation to beryllium successful nan scope of $192 cardinal to $200 million, representing maturation of astir 37% to 43% connected a reported basis, and astir 38% to 44% connected a changeless rate basis.

Olink besides expects gross successful 2023 will proceed to advancement on a seasonal shape akin to 2021 that is weighted to nan 2nd half of nan twelvemonth and 4th fourth specifically. In addition, Olink believes it will move to profitability successful 2023 arsenic measured by EBITDA excluding share-based compensation expenses. Looking guardant ahead, Olink has only conscionable started penetrating nan proteomic marketplace segments it operates successful from precocious to low-plex and sees tremendous headroom for continued beardown growth.

I'll now move nan telephone complete to Jon for his concluding remarks.

Jon Heimer

Thank you, Oskar, and convey you, Carl and Jan. Olink's activity successful proteomics continues to grow, benefiting from progressively wide take crossed Flex and crossed customer segments. And crossed nan globe. At this point, we'll unfastened up nan telephone for questions. Operator?

Question-and-Answer Session

Operator

Thank you. [Operator Instructions]. And our first mobility coming from nan statement of Puneet Souda pinch SVB Securities. Your statement is open.

Puneet Souda

Hi, John and Oskar. Thanks for taking nan questions. So first of all, congrats connected nan 4th and awesome 2022, particularly pinch respect to nan Explore installs. So possibly if I could commencement there. I deliberation nan important question, fixed nan maturation successful nan Explore installs that you person seen successful nan 2nd half is, really should we deliberation astir nan cadence of those installs this year? I think, you person commented successful past, obviously, these could beryllium lumpy. It takes times to get these externalizations completed.

So possibly conscionable talk to america astir that and really should we deliberation astir nan cadence of installs and Explore installs for 2023?

Carl Raimond

Puneet, this is Carl. I'll return that. Yes. So, yes, we proceed to spot a bully pipeline. We proceed to spot demand. I deliberation arsenic you indicate, location will beryllium -- location is immoderate seasonality, associated pinch that. But we expect to spot nan Explore instal guidelines proceed to expand. It's clear that, location is request retired there. Even though arsenic noted we person complete $1 cardinal samples worthy of outer capacity now for Explore nan marketplace, which is tremendous. But we are continuing to spot a benignant of wide liking crossed each of our segments, work providers, academic, biopharma et cetera, to proceed adopting nan Explore platform.

So yes, you should expect to proceed seeing maturation of externalizations. But yes, it will not beryllium as, I'd for illustration to opportunity linear. We will spot a small spot of lumpiness, a small spot of seasonality.

Puneet Souda

Okay. And past arsenic these Explore installations person happened, I mean, really should we deliberation astir those that $800,000 pull-through number, usually erstwhile instruments are installed aliases caller installation happens, location is effect to nan mean propulsion through, but conscionable wanted to get your consciousness arsenic to really should we deliberation astir nan wide propulsion done number for '23?

Carl Raimond

Yes. I deliberation nan -- we will proceed to spot I deliberation beardown propulsion through. Although again, I deliberation that number will move a spot tied to seasonality. As conscionable discussed, we had a bully beardown surge successful nan 2nd half. And past we will beryllium into our seasonality for this twelvemonth arsenic well.

But we expect propulsion done again to stay comparatively strong, and of course, it will beryllium attached mostly to nan full number of installs that we person and averaged retired complete that. But I deliberation that, past 12-month fig is simply a bully fig to proceed to look astatine to deliberation astir propulsion done overall.

Puneet Souda

Okay, that’s helpful, and then, past 1 for me, and possibly for Jon. I admit nan focuses evidently connected growth, but you do person elasticity now. Valuations person travel down. Oskar talked astir a small spot astir deploying capital. Can you talk a spot astir benignant of nan attraction areas, nan advancement that you person made truthful acold pinch nan Agrisera antibodies and what -- really are you looking astatine that wide scenery and nan capabilities that you request to bring successful bid to thrust nan adjacent explorer panel? Thank you.

Jon Heimer

Sure. Hey, bully morning, Puneet. As we said successful nan past that, nan acquisition of Agrisera has been an highly successful 1 for Olink, and tremendously important and strategic. And arsenic we noted successful our general notes here, we're a spot up of nan curve successful position of developing, generating and validating caller antibodies to create caller assays to build retired nan level successful a very accelerated fashion.

So yes, we're ace excited pinch nan acquisition of Agrisera and what that really helps Olink progress. So, arsenic we discussed arsenic well, we're looking into further opportunities akin to Agrisera to grow our capabilities. It could beryllium continued description to create much antibodies, but besides connected nan antigens, really important nan antigens are successful peculiar arsenic we -- arsenic customers move toward prospective objective determination making wherever you request to present those antigens arsenic calibrators to do nan modular curves and nan absolute quantitative readout for each assay.

And obviously, antigens are very important portion successful some generating antibodies arsenic good arsenic validating, nan assets arsenic well. So, antigens are besides very important successful what we do. So, if that gives you immoderate clues successful position of really we're reasoning to perchance further strengthening benignant of nan upstream activity and proviso concatenation that is basal for what we do.

That is -- yes, wherever we're fundamentally focusing astir of those efforts. So, yes, and you can't scheme M&A, right? So -- but we're decidedly reasoning on those lines and very excited astir nan opportunity now since we raised that further superior and person a beardown equilibrium sheet.

Puneet Souda

Helpful, again thanks, guys.

Operator

Our adjacent mobility coming from nan statement of Sung Ji Nam pinch Scotiabank. Your statement is open.

Sung Ji Nam

Hi, acknowledgment for taking my question, and congratulations connected nan 4th and besides nan year. So conscionable a mates for me. So, could you talk astir nan imaginable timeline for nan room of 5,000 proteins? I don't cognize if I heard that correctly, but erstwhile that benignant of mightiness beryllium disposable astatine a commercialized scale?

Jon Heimer

Good morning, Sung Ji. Yes, and arsenic we said for immoderate time, that we're ace excited by being a small spot up of nan curve connected what we communicated astir developing, generating, and validating caller assays. As we besides said that, we spot an ever-increasing request for expanding throughput, arsenic good arsenic trying to simplify protocols arsenic overmuch arsenic possible. So, we are doing astonishing improvement crossed each those fronts. We are very, very excited internally but we are not giving immoderate timelines to date. But so, you person to fundamentally enactment tuned connected that 1 for now, but we're very excited wherever we're at.

Sung Ji Nam

And past conscionable 1 for Oscar, was curious, it's bully to spot very beardown underlying maturation for your work business, excluding for nan UK Biobank project. I was wondering if location mightiness beryllium different benignant of largest projects that are successful nan pipeline that could effect your work gross passim this year.

Jon Heimer

Hi, Sung Ji. So yeah, arsenic I said, tremendous benignant of underlying maturation for nan work business, and arsenic we look up past I deliberation Carl talked astir nan benignant of nan I mean nan benignant of ample group of benignant of -- larger benignant of cohort studies that are benignant of retired there. I deliberation we would benignant of approached america from benignant of a kit perspective.

So, I mean, I find it benignant of improbable to do benignant of thing successful nan work laboratory of that benignant of standard again, benignant of wherever we are benignant of sitting today. So, I deliberation we would benignant of look to do that benignant of arsenic a kit business and benignant of partner up pinch different benignant of work folks connected that.

Sung Ji Nam

Got it. Thank you, truthful much.

Operator

And our adjacent mobility coming from nan statement of Kyle Mikson pinch Canaccord. Your statement is open.

Kyle Mikson

Hi, guys. Thanks for taking my question. Congrats connected nan year. Better than nan preliminary results by touch. On nan ‘23 gross guidance assumptions, awesome scope that you already rerating. Was wondering if you could conscionable talk astir nan kit gross possibly arsenic a percent of nan full for nan afloat year? For comparison that was for illustration astir 50% for nan 2nd half of ‘22, and past it was 22% aliases truthful complete nan first half of nan year. So, evidently a large benignant of plaything there.

And you covered Explorer a spot before, but really astir nan dynamics successful nan mid-total Flex business conception pinch signature benignant of continuing to ramp and past wrong Flex building 1 that done? Thanks.

Carl Raimond

Hi, Kyle, this is Carl. I'll return that one. So, looking ahead, present for 2023, we expect tips to beryllium astir 50% of gross for nan year. So, we'll proceed to displacement that operation further towards, kit arsenic we progressed passim nan year. So, we should spot that beforehand benignant of passim nan twelvemonth and nan mid-plex dynamic. So, we saw a maturation successful benignant of nan mid-plex kit abstraction arsenic well, which is great.

Signature is simply a large driver of that. We proceed to spot bully request for Signature. The motorboat of nan Flex merchandise has been I deliberation a tremendous -- created tremendous imaginable for america arsenic good arsenic that expands nan capacity of signature and improves our capabilities wide to service a broader swath of nan full proteomics market.

So, we expect really to spot some proceed down a affirmative way successful position of nan displacement and thrust towards much kit successful our mix.

Kyle Mikson

And past connected that note, I conjecture was funny astir nan customer reception to Flex versus Focus. Both products are comparatively similar. Maybe conscionable reasoning astir this a mates of different ways. First, person location been different types of customers aliases uses for Flex than Focus? And past has nan low-plex business statement benignant of accelerated, and past fixed nan preamble of Flex, has location been immoderate like, cannibalization betwixt nan 2 products? And possibly for illustration complete nan agelong term, do you guys spot Flex having for illustration a higher ceiling?

Jon Heimer

Yeah, I think, they're different merchandise lines successful immoderate ways Focus arsenic a much bespoke product, that allows customers to entree nan full library, that we have. So that's a small spot of a different usage case, a deliberation arsenic acold arsenic customer usage and development. Flex is -- nan intent is really to make a benignant of a overmuch simpler benignant of off-the-shelf type civilization product, pinch a room of astir 200 proteins that are successful nan saccharine spot for what astir of our customers wants, a batch of cardinal inflammation markers and truthful on.

So, we spot that arsenic benignant of a much mass-market product, that has very wide entreaty and a very ample and existing marketplace retired there. So, yes, I deliberation nan gross operation will displacement overtime surely much heavy toward Flex. It's I deliberation a awesome merchandise that conscionable serves a large request successful nan marketplace for high-quality mid low-plex macromolecule analysis.

Kyle Mikson

All right, great. And past past 1 for maine connected nan 5k [ph] products arsenic conscionable that you mentioned a infinitesimal ago. Can you guys conscionable benignant of speak to your level of assurance that nan deficiency of a commercialized disposable 4,500 trucks paper is not going to beryllium a headwind for illustration nan marketplace stock gains arsenic your competitor approaches 10,000 trucks this year?

Oskar Hjelm

Good morning, Kyle. I deliberation what we saw rather intelligibly past twelvemonth is that, value is very important. You person to beryllium capable to spot each assay, each information constituent crossed each sample that you tally to really spot nan information to beryllium capable to make actionable decisions connected that data, driving subject aliases investigation projects forward.

So, I deliberation that's a overmuch much important metric than a full number. Are full numbers important? Absolutely. Do we spot unmet needs and desire to expand? Absolutely. And that's why we are investing aggressively, focusing a batch connected that. But you person to wed that pinch information quality.

So yes, I conjecture nan short reply to your mobility is that, we deliberation we were doing rather good successful 2022 pinch our existent offering and we are ace excited looking up to proceed to grow that. So, no, I mean, we consciousness bully wherever we are astatine and really trying to meet what we deliberation are nan saccharine spots of customer request and unmet needs and are continuing to attraction solely connected that.

Kyle Mikson

Perfect. Thanks, Jon. Thanks, guys. I admit it.

Operator

Thank you. And our adjacent mobility coming from nan statement of Matt Sykes pinch Goldman Sachs. Your statement is open.

Matt Sykes

Hi, bully morning. Thanks for taking my questions. Congrats connected nan year. Maybe my first mobility is conscionable precocious level connected nan backing scenery some for biopharma, academic. Noting your comments, nan fund flush successful Q4 was not arsenic beardown arsenic you expected, really do you spot nan wide backing dynamics for some of those customer segments playing retired successful 2023? And do you deliberation proteomics successful position of investigation dollars being spent tin detach from immoderate benignant of slowdown successful backing for nan broader technological M&A?

Carl Raimond

Yes. Hey, Matt. It's Carl. I'll return that one. Yes, I deliberation what we saw successful Q4 and I deliberation what we could expect up successful wide is, I deliberation more, I for illustration to telephone it, selective spending. So, I mean, they are still budgets, group are still spending, but I deliberation location is simply a spot much scrutiny connected expenditures and such. So, a spot for illustration we saw successful Q4, though nevertheless I deliberation that, what you spot is than customers yet prioritize really they're spending their budgets, to nan highest worth type of investigation they tin do.

So, I deliberation we consciousness bully astir that, because I deliberation nan -- arsenic we've seen successful our numbers and we spot successful nan marketplace, I deliberation nan request for precocious value proteomics is very high. But for sure, again, arsenic noted successful Q4, nan large go-go budgets of a fewer years agone are astir apt a small much constrained than they utilized to be.

So, I deliberation that's what we'll spot arsenic a somewhat much benignant of cautious environment. And I deliberation that really to your mobility astir biopharma and academic, I deliberation it's astir nan aforesaid successful some cases. So, yes, that's wherever we spot things correct now.

Matt Sykes

Thank you. And past Oskar, conscionable connected study services margins, arsenic UK Biobank rolled off, obviously, you had a separator betterment there. Should we look astatine that benignant of Q4 study services margins arsenic being much of a normalized tally complaint for that business? And then, I deliberation successful your property merchandise you mentioned expanding laboratory efficiency. Can we expect immoderate level of separator description wrong study services arsenic we move done ‘23?

Oskar Hjelm

Hi Matt. So, I think, arsenic I said successful nan remark, I deliberation benignant of nan Q4 is benignant of a bully people wherever benignant of our tally complaint is, and we've driven a batch of ratio successful that business and offset immoderate of this benignant of external, benignant of ostentation pressures. But I deliberation benignant of wherever we were benignant of successful Q4 is benignant of a bully benignant of separator for america benignant of looking up successful that portion of nan business.

Matt Sykes

And conscionable 1 more, if I could compression it in, conscionable pursuing up connected Puneet's mobility connected research installations. As we deliberation astir nan cadence for ‘23, should we deliberation astir possibly possibly successful nan first half, benignant of higher lows successful position of research installations? I deliberation location were debased azygous digits successful Q1 and Q2 of past year.

Should we deliberation of that coming up a small bit? And obviously, still not linear and lumpy, but arsenic we conscionable deliberation astir benignant of nan level of research installations, first half, 2nd half, should we deliberation astir that first half of being benignant of higher lows erstwhile you look astatine installations?

Jon Heimer

Yes. Hey, Matt. Well, we're not providing circumstantial guidance connected that, but nan request has surely grown complete time. And nan pipeline besides looks good. So, I think, we'll spot bully request passim nan year, but for sure, I deliberation it will beryllium -- I think, we'll spot immoderate seasonality successful that demand. Maybe not to nan nonstop grade arsenic past year, but yes.

Matt Sykes

Thank you.

Operator

Thank you. And our past mobility successful queue coming from nan statement of Tejas Savant pinch Morgan Stanley. Your statement is now open.

Tejas Savant

Hi, guys. Good morning. Jon, possibly to commencement connected nan kit broadside of things, bully traction there. Would you beryllium capable to springiness america a consciousness for nan number of extremity users for nan kit solution coming versus opportunity a twelvemonth ago? I cognize Carl talked astir benignant of increasing traction pinch nan CROs and nan work providers, truthful I was conscionable funny arsenic to get a consciousness of nan breadth of request present crossed nan customer group beyond conscionable nan world pharma versus work supplier split.

Carl Raimond

I don't deliberation -- this is Carl. I'll return that one. We don't person a circumstantial number connected nan number of existent extremity users. In fact, to your point, it's really good beyond what you would count pinch nan number of externalizations aliases customers, because arsenic we spot successful galore cases, moreover if they're not a dedicated work provider, they whitethorn beryllium a work supplier for their department, aliases their function. So, nan exertion is reaching many, galore extremity users via this strategy, which is what makes it rather a successful one.

So, our scope is galore folds broadly beyond nan number of outer customers we speak astir aliases Signature placements and truthful on. So, I dream that helps, but it's -- yes, it's broad.

Tejas Savant

Got it. Helpful. And past connected nan antigen room improvement effort, you said astir either via bolt-on M&A aliases possibly moreover soul efforts. Do you person a consciousness for conscionable -- really you envision that being complimentary to your existent portfolio, aliases possibly really customers could usage some antibody and antigen approaches together? I deliberation that would beryllium adjuvant arsenic well?

Carl Raimond

Hi, bully morning, Tejas. Yeah, no, precisely 2 points and what we stated, right? I mean, antigens are a very important starting constituent to create high-quality antibodies, you really want a afloat magnitude correctly folded antigen that mimics autochthonal quality biology to raise a high-quality antibody to build a high-quality assay.

And that antigen is utilized besides to purify nan antibodies, to utilizing them to create nan assay to dilute, for example, do nan modular curves, group nan precocious load limits of quantification, nan linearity of nan assay and truthful forth.

And then, astatine nan end, you're going to usage that antigen calibrator for an absolute amount readout. And arsenic I'm judge you're seeing pinch explorer, erstwhile you do thousands of samples crossed thousands of proteins a comparative quantification is simply a very due readout.

You should -- I mean, you ever comparison groups. So, for example, norm patient versus illness aliases responder versus non-responder. But arsenic you locomotion done our, our room aliases products and down towards much objective usage cases, you decidedly request that absolute quantitative readout.

So, it's a tremendously important facet of macromolecule science. And arsenic you know, erstwhile you talk to clinician, they're utilized to pictogram milliliter aliases milligram milliliter readout for each protein. And that's what why antigens are ace important each nan measurement from raising antibodies and processing assays for hi-plex but besides for those objective usage cases downstream. So, very, very important portion of everything we do.

Tejas Savant

Got it. Super helpful. And past Jon, tin you conscionable springiness america a consciousness for nan spirit of customer feedback connected Olink penetration here? Clearly that was an important launch. I mean, you highlighted retired of nan expert location arsenic well, conscionable funny arsenic to what you're, proceeding from nan broader community.

Jon Heimer

Yes, no, acknowledgment for bringing that up, Tejas. Yeah, we are arsenic excited arsenic our customer base. I mean, nan feedback that we're getting are excellent. Proteomics is very early days, arsenic you know, and to construe these ample information sets that we now person enabled rather large information sets and analyzable proteins crossed pathways and truthful forth. So, a ace adjuvant instrumentality to get to overmuch faster actionable insights.

On apical of that, arsenic I'm sure, I mean we discussed pinch you complete clip arsenic well, it's for illustration 1 of nan astir communal questions we get from customers, and that besides is simply a very bully item of nan early shape of this field. It's for illustration -- do you cognize nan normal attraction of your proteins crossed your library. So that's benignant of wherever we're at. We don't moreover cognize what nan normal attraction ratio looks like.

And arsenic you cognize that type of information wherever we person that successful Olink Insights and are expanding, truthful very exciting. And of course, now pinch nan illness arsenic labs that we besides person included location and we proceed to grow arsenic well, pinch immoderate melodramatic results from Mathias Helium’s [ph] Group and successful peculiar now nan first information group astir cancer.

So, highly breathtaking to spot really proteomics tin lend to, for example, expanding information connected nan curves successful early discovery and prognosis of cancer. So, yes, each astir an astonishing tool, which we get very beardown customer feedback on. So yes, very exciting. Thanks, Tejas.

Tejas Savant

Got it. And 1 last 1 connected my extremity for Oskar, if I may. Just wanted to explain nan remark astir [indiscernible] Oskar. I deliberation you talked astir 2021 being a amended benchmark for nan 4th fourth here. So should we deliberation of revenues person to benignant of nan mid-40s scope successful nan 4th fourth versus nan 41% aliases truthful you did successful '22 arsenic nan correct framework?

Oskar Hjelm

Yes. So arsenic we said successful nan book benignant of 2021 and I deliberation particularly erstwhile benignant of comparing benignant of nan H1 to H2 seasonality, I think, looking astatine benignant of really nan twelvemonth is benignant of from an operational standpoint benignant of for us, benignant of, 2021 is simply a bully benchmark arsenic we look astatine 2023.

Tejas Savant

Perfect. Thank you truthful much.

Operator

Thank you. And I'm not showing immoderate further questions astatine this time. I would now for illustration to move nan telephone backmost complete to Mr. Jon Heimer for immoderate closing remarks.

Jon Heimer

Great. Thanks for joining america coming and for your liking successful Olink. We look guardant to keeping you updated connected our advancement and wish everyone a awesome day. Thank you truthful much.

Operator

Ladies and gentlemen, that does reason our convention for today. Thank you for your participation. You whitethorn now disconnect.