CDNA - Earnings call transcript Q1 2020

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Operator

Good day and welcome to the CareDx Incorporated First Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Greg Chodaczek. ahead. go Please

Greg Chodaczek

on afternoon Chief Earlier Good quarter you joining afternoon’s Officer; currently for March Peter at Thank Chief call. Officer, Maag, CareDx and will released today. Executive available is release today, XXXX. Michael the company’s financial us website XX, www.caredx.com. Bell, you. and The thank the Financial results ending this for host

include that forward-looking get pursuant I provisions within which this would management everyone will Litigation Securities started, remind during Laws, be the Act we of of Before call to meaning of to that statements the Securities Harbor the XXXX. statements making like Private Reform the Federal Safe made are

be deemed be All contained are without our matters, statements based upon decisions, statements. in limitation, expectation to including estimates call future forward-looking various enrollment and results statements coverage of and expectations not regarding this our assumptions. trends, should financial and historical statements pricing operating examination are forward-looking Any fact that of current historical and

on risks involve you those from statements. actual cause to results by statements that undue could and materially These or place reliance not forward-looking statements. differ implied should these Accordingly, anticipated uncertainties these material

risks the Commission. business, the uncertainties Securities For and descriptions and our filings a list of associated our Exchange see with and please with

certain accordance Accepted to that XX, law provided not other Principles. information events discussion by will information, include or disclaims measures future CareDx XXXX. any projections statements otherwise. are of of April call or the in because the also Accounting with as intention information, new today, in required or financial The This a calculated Generally forward-looking this whether obligation broadcast financial conference to call revise only live or except any speaks update

in release today’s Reconciliation to found with GAAP SEC. may the measure filed earnings the directly comparable be financial most

to will call turn the Peter? I now Peter. over

Peter Maag

quarter of afternoon, review and results XXXX. to first everyone. welcome to call I’m our to for the Greg, CareDx the pleased good Thanks, you

we to globe. wanted the to take businesses. community Before moment across I the is discuss CareDx of healthcare a of a all workers essential thank part results, our healthcare of

those We best have line ourselves respect the the wherever front utmost and working them do on to for possible. support the

theme Transplant January, be and in more we proud the as chose crisis. come could it response how our has not to Proud not COVID XXXX. I more could And for of together – our team in Back be

provided came to the compared million, the $XX.X turning year-over-year. just XX% quarter XXXX, an over in digital for of patient an of XX,XXX reported of revenue quarter Now, line. results, first testing we $X.X first $X.X increase top services revenue to XX% with and the the of from increase our results, Growth primarily quarter we million that was added the XXXX. Product million of revenue

a positive we posted straight seventh the EBITDA. For quarter, adjusted

profitable, building crisis. We us have enabled and medicine precision has unprecedented sustainable platform that this business adjust a on to pivot response always of and robust in believe focused our quickly

even battle. everything. With The asked were chosen caring U.S. own no their and caregiver COVID-XX to everyone is arrival patients, this frontline of hospitals The exception avoid have and or healthcare decided the hospitals centers either affected to in visits. have hospital COVID-XX has the defer as patients of on and administrators transplant become sector visits Immunosuppressed or limit transplant procedures. non-emergency increasingly for

for in COVID-XX, quarter. the were impact did quarter Up the of were week quarter. we total experience the slowdown services Considering of to results With first the a transplant surveillance volume particularly until final we backdrop, in this our this on million in track exceed well testing strong. visits $XX down, revenue

enabling of focus. home-based the And our March launch transplant of patients we XX, support our to our RemoTraC, for remains patient. announced efforts pledge our as solution Our part monitoring on for

patients that solution hearing the to blood response in mobile visit This using RemoTraC blood as crisis. necessary their phlebotomy result were check-in labs transplant missing home-based COVID draw to draw of and appointments hospitals immunosuppressed created for patient. reduces a we Importantly, and

XXX RemoTraC kidney, centers heart to date, to network mobile Based partners, than are in transplant Approximately more our X,XXX transplant already and expanded X,XXX on and phlebotomists. patients. offering new leaning their Notably and have have patients than we relationships from existing with more to enrolled. XX,XXX lung nationwide

in been where has as enormous most infections. greatest This the need is are areas undertaking the an there

over and quickly. the our comprising devil ago are CareDx has increased Transplant weeks the now has of extremely every Chief detail, and learning And pivoted Proud. to As President Mobile XX% volume is in always leadership from of of with tremendous phlebotomy X day. we complex Business Seeto, XX%. daily workflows, the our Reg Officer,

and continue As will to to centers some take seen the returned we return can we transplant if very effect share to and to begin soon. have return be RemoTraC starts capacity, remains at operating I’m of AlloMap. and volume that pleased It week, AlloSure this linear pre-COVID normal almost as last to growth whether anytime to to in

progress week. pleased But with we moment, for the over last the the are

is related international manage including an global COVID-XX create National we consortium partnership that are Another the initiative a Institute to of and our very proud of COVID-XX transplant Health with registry.

non-competitive having COVID-XX COVID-XX supporting immunosuppressed are on data is with patients are need transplant on of rates better we patient. transplant alarming. the this infections registry, mortality for impact the Initial With

is might so record electronic with real the and time the largest based use, in COVID-XX registry infections in and is specific is access web record dashboard. the site world. built The open analytics medical was powered captured by COVID transplant Already OttrCare, this a be in is CXXTxR.org free registry, transplant software. to XXX time are our

care done team in incredible has job. Omaha The an other

our have common response to established the crisis, internal on plans X to we In operating based operations. sense; turning COVID Now confident. compassion; and C’s:

and solutions experienced skilled multiple resourceful an Dixon, to in have by management the our patients. HR, families board. team we to supported commitment seasoned and protect We a Besides continuing talented our our of and employees place their supporting implemented have Marissa Head by

that our to pivot to as interruption operations CXXTxR.org virtual I’m to I meetings. RemoTraC, well our our successful report and update, without operational very continue comment glad would like as on

engaging ever via directors. now and and lab community coordinators together transplant We transplant advisory virtual with are administrators, nephrologist, Ds boards, bringing patients, transplant cardiologists, and the more HLA community nephrologist transplant Pharm. than

to We feedback are deeply have insights community. the advice and in indebted transplant incredible leaders the that from we received

some their for Lastly, year last we OttrCare when backbone a might digital XynManagement to have scratched form head and CareDx. acquired

like towards platforms adoption based While there. COVID-XX, always foreseen not a we data new clinical the medicine crisis interactive trend of was precision could and the have on

reality become a Now, telehealth has overnight.

engagement, transplant care. era making positioned and is capabilities, clinical decision these CareDx this With digital patient well new to lead in

a have guidance. our we announced ago, weeks XXXX we As few revenue withdrawn

While volumes will QX. an adverse undoubtedly have revenue almost come back to in normal, impact we see

X questions. As I’m year-end, thinking asking about I’m

macro be visits transplant RemoTraC successful will Second, transplant potentially orders the center continuing to in First, impact? rollout will level, when their place level. at will overcompensating there a pre-COVID COVID-XX shelter impact? reopen to lasting how have For we and when example, and mitigating the another to back way? be surveillance COVID volumes will or will third, And get

are applying C’s. our We X

recovery, caregivers. transplant a especially sense the lean and and and path to confident and in built We to we we great apply have as frontline patients in we for crisis are as respond platform have care. common the tremendous compassion, We

communication. forward optimistic providing to I progress in feel future So and updates the on XXXX about look remainder the of

CareDx not Mike hand a crisis. CFO suited our over Bell to time discuss I’ll doing Mike of He in Now, could have better is financials, job. phenomenal to Mike? this than a

Michael Bell

Thank you, Peter.

as and growth a total first year-over-year primarily first quarter Turning in centers. AlloMap of XX%. Heart growth the HeartCare also AlloMap center by $XX.X was transplant for to continued and to Heart well revenue past AlloSure million, penetration interest of the Kidney AlloSure revenue was by quarters in income over adoption few due increased the as The experienced growth statement, driven Kidney. has accelerated

revenue result AlloMap, a both strong year-over-year the quarter of and XX% million. increased services of to As $XX.X in first AlloSure performance the testing

quarter product revenue increased first year-over-year million $X.X million. was our Our X% and digital to $X.X revenue

margins. our gross to Moving

margin a the gross of up sequential a margin XX% XXXX, quarter basis gross XXX of fourth were in basis, the of compared the XXXX. margins was the compared first to XX%, period to quarter On XXXX. points, For same gross approximately of

expensive the XX% cost is more The approximately of our do impact than gross XX% draw, the quarter a draws, some at lab on although future between spend done draws mix of expect $XXX on to the see to non-GAAP impacts full was a quarter. blood on depend year and phlebotomy the mobile of prior because draw gross margin We margins, for compared in RemoTraC will labs. the the ultimately RemoTraC as margins

of of quarter was first net a million XXXX. in XXXX, to loss $X.X the compared net $X.X million loss the same period of For

in $X.XX to $X.XX for was XXXX. Our net net share of loss the first per loss a per of compared quarter, quarter share the

same compared Non-GAAP to quarter $X.X in of income $X.X the million in first XXXX a net non-GAAP net the XXXX. period of was income of million

Our per income quarter non-GAAP non-GAAP $X.XX to in a of $X.XX same net first compared income net period XXXX the of XXXX. was in the share of approximately

net other As and interest, income amortization adjusted depreciation, non-GAAP EBITDA a income as income before define reminder, we and tax, expense.

quarter adjusted recorded the EBITDA revenues, million to was an COVID-XX our is impact the compared positive $X.X quarter of this $X.X For of quarter XXXX, positive adjusted Xth million the we our of first in of first of quarter consecutive on a Despite XXXX. EBITDA first adjusted EBITDA.

plan, expenses of there more were less quarter a although travel line in reduction operating In our was expenses the March. first or XXXX, in with our in

to due travel, of from We impact in-person expenditure of expect operating flat the virtual. QX to stay to switch and QX industry see in to conferences the our less

equivalents Regarding our cash XXXX, on were and cash XX, million. cash and March liquidity, position $XX.X

for operating in was $X.X flow cash XXXX annual payments first XXXX. outflow compensation the quarter operating of incentive Net performance in the to QX. The in that due quarter million was negative paid the were cash

was payments, operating these cash flow quarter first positive. Excluding our

balance, Over $XX approximately have are cash cash weeks, our and the equivalents few million our $XX currently million. cash past we to and added

X come has cash in increase areas. from The

exactly Firstly, X to at-the-market program our we million issue sell proceeds which of and net generated million. shares, $XX.X used

through by $XX.X will this Payment year. The received $XX.X November Secondly, Program. million CMS August between recouped we CMS Accelerated its and and expanded Advanced from million be

did CareDx continues also We Paycheck of our our Program, and PPP. the from forecast, also distribution Provider Based related to that expenses initial in improved positioned foreseeable be loss we CARES Relief we for flow current attributable Federal million feel Act Protection support participate position, not as future. $X.X cash well to healthcare and the received COVID-XX. to the cash Fund Note revenue on an known

on year earlier the as XXXX. uncertainty revenue business, stated to for guidance release have currently press month, we in the to Turning impact will of due providing we our be full guidance, the our – COVID-XX this not will surrounding

hand I’ll Now back to over Peter.

Peter Maag

their thank closing, to of during employees In our dedication want all I this and Mike. you, time. Thank work for unprecedented hard

a takes to remaining time, And it of that transplant patient village support has other, passion throughout each this CareDx village. dedication come challenging and One our significant in care. together most our themes is our to while steadfast

joining for Thank the I for call you and questions. the open call will all

Operator

will session. go first We begin now the [Operator Brandon question comes Couillard The from ahead. from Jefferies. Please question-and-answer Instructions]

Brandon Couillard

to the there able Peter, the that your that added as some phlebotomy? surprised help old why call way? volumes. new $XXX mean, XX% on some go offset be and such spending to for this Hey, for back you I’m other starting just as And positive the now? model business economics, hear unit RemoTraC, centers avoidance backend maybe we it’s mobile operating good of lower think are compliance the I you already the might might afternoon. requirements with offsets, just of the about Is to realize

Peter Maag

Excellent Thank question. you, Brandon.

three, everything is hour there an absolutely need of think live love is them wait or to transplant two, then don’t blood X they One feedbacks. remotely patients a and with they for sometimes into back waiting really work. since center, minute Patients types or only is drive be interactions then the nurse home. in a to and I XX maybe two maybe in travel Have it. sometimes room, good, for their

well. So, patients love the that doing are for mobile those phlebotomy, especially

does in value in convinced say to – for see they’re And probably that be we they the half to the to also I mean half continue visiting just love face there face. flexible. They is think I a would they telehealth having RemoTraC, that patients But to here significant that is think What patient is center. the -half. other stay. Clinicians completely

in that center crisis going these like York, of patients are a very It’s mobile. most New clear COVID

CareDx transplant While might prepared mix. what me be it is stronger these that answer a to in individual there in centers, solutions. to other But excellent actually tells order

have we center a As by applied strategy. always center

that thing and always about think Sometimes patient allows seeking that RemoTraC schedule. we apply and the will one true surveillance direct this To us patient to communication allows by strategy been I be is very to have now monitor that patient is even. your have us a point offsetting, to

that get the a the the will You sometimes actually patient, the help interactions have might surveillance And to surveillance losing their these can true. we’re we on scheduling more go. the the and and updated we have recall few be visits that, on more regular better fulfillment closer we schedule visits, the we

that is see upside volume, blood that there all for actually us visit terms their surveillance we sure in bit get an stick So of making these their a patients to and draws. of

Brandon Couillard

what off the best from and you transplant headwind talk transplant is maybe business aware, months? sort it a terms think you of What like about normal and are Maybe It’s How in is in few just from a of what what you do of little effects high your up be? maybe level, the as a might today. timeline of activity that? maybe a far might procedures bit kind would in show delay lag your expect new some those as sense look of whether

Peter Maag

question, Brandon. Excellent

first are the in the penetrated Maybe of early overall penetration is patients. of X% we are all against opportunity. think – I still very we this all

patients there AlloSure into anywhere not to So of convert be patients. going is ability our in of shortage terms a to near

short living down donations yes, that be Especially might right term. now. Secondly, is

overall probably in member, right have is to by many If XX%, centers But back. that XX%. from swing you in some think XX% will friend organ not these an by in down centers or occurring I the a country. family maybe transplantations now transplant But are volume

back transplant they profitability, will key driver – some for anticipating the these search units first open a the are since one that actually many for normal a of actually bit that that these be And hear are centers. centers, We centers moment they a of of there coming in many of we the to these to back also that up. probably in are medical are

will that is same once all guess the happen at this regional at differences. see will we all but not My centers at time,

I So coming quickly. some complete we we out number on see would relatively will months see online back of normal, to actually a that, are centers but

Brandon Couillard

Okay.

just in with remarks, maybe the did on weeks curious you which your Lastly, Could just mention share you us a could touch little maybe disclosed AlloCell but few if you bit ago? product, you therapies? serves those who partner could offering your biopharma surveillance about that how noted that who of you talk press about more in patients you is the receiving in maybe are release. And if the

Peter Maag

came, companies I establishing I our this, with think And partners, first partners model to and and The through as is truly step wanted develop we it available we because services. there’s that one make that’s trials, a meaningful to. original the pharma announce one, concept. number pharma this a clinical of to the co-develop talk think

transplant. now [non-own] a than technology these see [are a to [ph] we And We into moving present] kidney else cell focused, heart transplants a this our are [ph] the cells. a from detect as focus company therapy. transplant These engineered cell nothing to with

way, future more. talk Allo a in the a about hear us lot in So transplantation you’ll

to short service tremendously, this perspective. think research This is revenue exciting new I but is going an from more perspective, so a opportunity. testing be development from a term relationship relevant and pharma and not

So we more bear year. as communicating on be that progress the through with me, we’ll

Brandon Couillard

Thank you. good. Very

Operator

Sandler. Piper go Please Steven from The question comes from next Mah ahead.

Steven Mah

Hi, How are guys doing? Peter. you Hi, guys.

Peter Maag

the Steven, very analysts much. team. thank to you Welcome

So this capacity. hear we must be in the first that you time this

Steven Mah

Yeah. Yeah. That’s right.

yeah. welcome. You’re the first the appreciate one, We warm

Peter Maag

Congratulations.

Steven Mah

yeah. your volumes normal. for Congratulations to post-transplant Yeah, returning

physicians remarks are or as avoiding test transplant test either wanted you you your square in great that as more choice really that comments centers. more And, on that get said away by bit to little earlier to But where procedure. news. post-transplantation they’re a that the your just and are patients said would kind and closed I So that, an things I than maybe that’s elective prepared rather expect essential seen of color yeah, be

give So you and are doctors post-transplant? viewing patients can on sense us how maybe some

Peter Maag

saying, think, don’t visit. weeks transplant a of doing every Yeah, shell-shock the not in and have come bit in I of patient from centers, initially couple had we of well, your a surveillance well response last March, do that’s

in for And why caregivers transplantation, volume both you patients, important. visits of almost patients of so that surveillance I rejection to did visits which monitored led absolutely RemoTraC comment to you want be on constantly we’re is a that’s that, March. that pre-COVID maintain probably is of back surveillance elective not levels, to in and is, drop these after right so because to that it’s episode. – a that, need But

It’s more invasive is a is concept have also at and an a information why spend right true now liquid simple biopsy patient this ever. of now transplant And that biopsy a lot that’s giving value test seen and now a than significant like is, our procedure blood for taking the that, having center. in you them time

tipping balance very in The our is clearly on liquid this favor really very, biopsy.

articulated. terms it of been proposition, stronger never has and clear value in our So

So agree come see quickly back that center to again. we I with very would you transplantations will very, transplant

Steven Mah

just the going – Do given season. transplant question integrate This great. Yes you think . be protocols are same on going to you… that is follow-up And to it every a we’re thing. uncertain? RemoTraC. a is into their or going flu relatively wave second Do Okay, COVID-XX There’s centers through go to

Peter Maag

I I over the call, COVID-XX locations we the comment in see But Reg that like also different of on flare-ups Seeto, on in see year. would the will who’s that. probably country

don’t But have think local going we be COVID-XX. I So very then to and responses regional will entirely that this away. will

you approach, pivot? but center our say, be I about maybe, center and Reg, stay will would flexible we will to and to over RemoTraC by talking a So ability this

Reginald Seeto

in have RemoTraC. more I we’ve and that, than Peter seen interest surveillance lot of patients a with expressed And thanks, we being used. mean, protocols XXX Yeah, centers

So, as start future, think mentioned, part more the potentially – RemoTraC we’ll with offering, this as the current with adoption Peter I even being seeing a basis. I in that protocol incorporated on of we’ll think of

Steven Mah

That’s have expect a about down give expense us we quick, for sense time, great. slow you this think real I if trials? and helpful. how should and to the one Okay, you Mike. enrollments timing Can year? And R&D clinical on Do

Michael Bell

up well going think OKRA enrollment are I slow to patient the probably is that to – and we’re as centers, yeah, ramping down. Steve, going SHORE center And enrollment as probably obviously, slow on down in Yeah, near-term. OKRA on the

be think, see in up. In to volumes slight will those QX, that we remarks expense in conference on operating I in – our slowdown costs the yeah, be So I QX, R&D pick savings a will line if relatively study we with savings costs, of back you mentioned that like travel QX. there clinical costs, before, those also until will because in the on and the expect expense one

Peter Maag

we – right it a – remarks, think, but up me prepared running of done to soon it gives me many now, because opening actively XX in OKRA gives and – would of that, not just it enrolling, reported as I they’re QX, this centers great job. sites in But have our the because number a also not as the chose Steven, stressed medical has up. of are these We team report like probably

and and We anticipate OKRA. full pretty up is sites running we’re XX have that going proud XX running on steam. up to will And OKRA to – actually

Steven Mah

right. much. All Thanks Great. very

Operator

go next The ahead. Nowak Alex Craig-Hallum. Please question from from comes

Alexander Nowak

on obviously testing biopsy. previous made, on a I and in mean, about afternoon, gold spite to of here. you the highs. comment go the COVID is standard back on the congrats Peter, seeing wanted biopsy return congrats QX to I Good the And levels everyone, here. Great.

a – rid distancing conference centers conference. talk virtual a of about adjusting for getting largely lot a hosted recently guidelines of biopsy. their And and protocols there’s social You

this But CareDx, near- to long-term? be biopsies CareDx. I’ve from both a imagine, got this the big beneficial So could any almost and is to the is in there way boost completely just away for how quantify shift

Peter Maag

organ the patients X a The Well, XX first transplantation. specific I very opportunity would think, the years bit to heart, I transplant receive this first significant. this XX on year heart the would is – little – in biopsies is say, after

franchise. now as So this to grow think about there’s we’re ample out on the right for HeartCare, rolling opportunity heart us

there centers ratios invasiveness On do might transplant the kidney that many use transplant site, and because not not kidney the reward biopsies, the high. are of be risk actually as

see XX% transplant only protocol biopsies. of doing we centers So routine

those would something yields. is centers low say protocol follow transplant now, we see has where know are up would right probably I very everything routine of to about very, replaced biopsies these biopsy, And just XX% basically on. to many because XX% you’re if We biopsies this showing checking okay,

the and the where still on less, the you opportunity. reward But we significant strong. little a bit So up risk biopsy side, do lot goes still, of ratio creatine] doesn’t For to there, yield. then also and – heart think a a seem Kidney, maybe you [assume [ph] be cause, no have then biopsy, I but on have

Many they an in have patient might first AlloSure, a transplant centers biopsy. the and before come now do do

see that So clearly is We to just the think, total confirmation of proposition approach testing. our I the significant. as blood-based value

Alexander Nowak

Understood. these positioning the to you your And centers will from you more think side, this sell could flip access how even limited? potential transplant make be to sticky restrictions actually on do now are post-COVID the force And really sales business in competition? the where world, Peter,

Peter Maag

on Well, the This that probably is you are now, is time preoccupied. best product. I minds products limited. – it’s right our tell not to launch Access will business, now right

your not is routine on time And different something so daily new best to doing and the do. probably

can another its have CareDx yes, think out I first So really advantage. mover build we quarter where

I positioned extremely there. are very well So think we

of there’s also mean, we or interactions. conference. video significant the lot have by a account a our On business front pivoting, video don’t that the individuals where team And, has our think are I we is and shifted, spend hours in model going transplant have not in day the calls out managers I field, video of and

information education. substantial now are distributing Our for sharing webinars and

office more than type traditional company. of now, a like – office So looks diagnostics a virtual telemarketing right our

think making that really we field I us to entire as our there, patient face of on every it’s just I’d access and AlloSure, in, now, applaud the technology. been ready. leaning quickly, being so team the let’s force. But right it, pivoting have field And needs gets it’s So AlloMap sure all our for – that

Alexander Nowak

elaborate That’s the program advance understood. work? And CMS? good hear. that Mike, million Absolutely, $XX then, on payment what with really, just to it you Just And does can is program? how

Michael Bell

Yeah, is Alex. companies well, request providers an program – of from Medicare expected X up The months’ payments of CMS. that can worth to advance

So their provided August to And that that then November, was recoup year. would to around per – us. during That amount is start back $XX.X CMS August they and projections, million. current between this

just So the every pay they do in time advance we would paid that would period, and would medical test they’ve the not us they us. money, a that recoup

Alexander Nowak

Got it.

So balance as revenue a prepaid I the sits item? sheet on assume that

Michael Bell

be just sit time. as withdrawn will of cash, won’t over will the It sort just but balance as and on revenue, sheet it down that get then

Alexander Nowak

it. Got

good and luck everyone here. thank again, Okay, you to Well, understood.

Peter Maag

Alex. Thank you,

Operator

comes Cooper ahead. question The from next Andrew from Please James. Raymond go

Andrew Cooper

lot’s versus questions. like likely patients RemoTraC? of are that a who adopting little new the in the not? of difference for what so Is patients of more I’ll I maybe there between whether is that? wondering quick. any it’s was are difference to I there any what this says, on it are color protocols give do or or anything been level want of kind or could folks thanks it – you covered, guys, bit Hey if Is is kind between A But them keep transplant

Peter Maag

But about your has going to response worried to Seeto They’re many been answer our more hand think, like They’re over center. specifically. are about the I house. Reg leaving I’d to transplant Yeah, worried question a into patients worried. to

Reginald Seeto

one they surveillance with today, patients where greater but segment we’ve these talked those on now are the currently also mean, where, but brought we’ve into from majority patients Yeah, surveillance, need RemoTraC. thanks. the I are new as to being being of we of about, seen model a seen segment who on patients

there’s X So segments. been specific

Andrew Cooper

Peter, something, what just around sort digital to added still add opportunity there or to you’ve conversation, telehealth you opportunity do yourself that’s it’s of that, is But what there that given then, perspective? started sort telehealth. a to And physicians to potentially what would tying an Okay, comment with want in of RemoTraC tie on helpful. partnering you’ve now side in, face look said, to some RemoTraC And the kind face and developed and like? have that your to with capabilities whether of maybe done from provider the the to

Peter Maag

Well, about the opportunity he simple And makes sees patient be and patient also I think information when think relatively at when that I the patient workup. doctor, is this the ideal. receives having his would fingertips plus blood that AlloSure, that the on that entire continuum he that journey, decisions

making. that center, video, the with sure the and that to the with into Unfortunately, has in on on right? what time to make sounds workflow do transplant relatively to That has a simple of decision the even of that as at simple button sure the is a the – all has integration that difficult of incredibly information patient can terms at making medical that patient electronic turn – the diagnostics actually [ph] clinician do record as [Zoom]

think this And are So will of really workflow, the in lot become new era. we I the a a things there but is standard. in

that available. are tools, completely on to center. help see I even predictive think a maybe clinicians patients they – smart which will have our have to decide the can ask algorithms clinicians want to we into or televisit patients they come to they information which And with and

and the seen some patients will really will patients need nurse other the specialists some only maybe by And to attending. have be

the and think integration our decision-making clinical line. the can we OttrCare I can with So We – into down with that our we solutions, started program. really support smart i-BOX

has think a We’re very early through has become COVID-XX. boost on I gotten this, – e-health a but

guess stay. And is is that here my to this

in the future, advantage So approach mode in offering, integrated the as a our is transplantation. competitive building offers having a we’re more CareDx potentially

Andrew Cooper

Great, thanks. it I’ll there. leave

Operator

next question… The

Peter Maag

you. Thank

Operator

Oops, sorry.

Peter Maag

on. No, go

Operator

Next HC from question comes from Yi Chen go ahead. Wainwright. Please

Yi Chen

Thank my taking you for question.

capacity throughout what support question year? is is RemoTraC the if COVID-XX of in testing the First persists volume

Peter Maag

of being scaled sense capacity I draws blood we able more them. would testing coming an have probably our would question. draws our than we’re into lab. That’s the And lab on capacity we doing to we’re say, having in excellent the manage always blood volume. think I have But unlimited alongside

So of fashion. or being in any form don’t think constrained CareDx capacity

Yi Chen

you have reinstate evidence And to Okay. then, do guidance? to what revenue need

Peter Maag

Yi really why anticipating I thinking Chen, a a bit good that’s I’m I question. That’s of that it. gave And how about was question,

places of forecast who it’s if to difficult in First incredibly be second anticipate those waves there’s different will United And where be. there to I a personally knows second that in be will all, going wave? the States.

they be transplant locations more than in CareDx were to would be there’s significant If where others. in impacted volume

really is phenomenal devil weeks. in all has how job, the first States the successful the RemoTraC across to we update the team be a been centers few is one happy patients. That’s that second on seen. can the phenomenal roll I’d but be And And a to detail, has and out success in The in for United done all you that.

just are for and that is And the transplant actually there transplant one there from really yesterday in back are where centers from normal? an Detroit getting opportunity that is down going capture heard to the significant a around, COVID. last to there I is Michigan, Clinic is us Cleveland

are more doing now actually than transplants before. they And

up the And to individual back So come that’s and difficult when we transplant to forecast. how do back be, transplant volume? incredibly centers will question stream on are overall

right us that, as to withdraw can guidance way let now. we I again. prudent after to the all, saying soon But think we’ll know it’s about think as you guidance think I for

Yi Chen

of had Last quarter. significant over on question digital is, potential Could you stream? it. revenue quarter color other quarter the Got growth in revenue provide this first more and the

Michael Bell

acquisitions Chen, from the that is, quarter-over-quarter year. Well, because comes revenue made the we why that last Yi reason

So Xyn was August. May in OTTR in acquisition acquisition and was the the

in there first the revenue like-for-like was So no of… quarter

Yi Chen

compared first fourth year, the mean, I No, of quarter to the last not quarter.

Michael Bell

Oh, the fourth quarter.

Yi Chen

yeah. quarter, Fourth

Michael Bell

Yeah. Xyn coming I mean, the from and both well, we’re of some from new business OTTR contracts business. getting that’s that the

crisis when digital we year. had $X we I – think expected the revenue guidance around out said and million before there, we business for to the COVID revenue for the be

line quarter first was with the So in that.

slower get an slowdown maybe could the to a Whether not impact. because making would have there of that, adopt at decisions or a to in that platform quarters centers new remaining some be

that. we what for and remainder So, first of year. good, we’ll have the But, very quarter the pleased see to were yeah, really was with happens

Yi Chen

Thank it. Okay, got you.

Operator

question-and-answer I any Maag Peter This turn closing back conference over like to the remarks. concludes our would for session. to

Peter Maag

much so you a to quarter first to out us doing. looking part update of shout And for for I’ll us And the thank the for our we’re of forward that I’m being with so very Proud. Transplant much you community call. allows end thank progress. much Well, joining what to to do continue you

day. much bye-bye. very every transplantations you Thank focusing and We’re on

Operator

The Thank for today’s conference concluded. has attending now presentation. you

You disconnect. may now

CareDx (CDNA) 30 Apr 202020 Q1 Earnings call transcript