BDSX - Earnings call transcript Q3 2024

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Operator

Good day, and thank you for standing by. Welcome to Biodesix, Inc.

Third Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised todays' conference is being recorded. I would now like to hand the conference over to your speaker today, Chris Prinz, Biodesix, Investor Relations. ahead. go Please

Unknown Executive

audio is and from operator, call everyone. Officer. biodesix.com. Biodesix quarterly Officer; the of Today, the of today's can will Harper the Thank Relations section be third good quarter results he Executive Chief the found Scott the company's Cowie, press An by call of announcement released Robin be you, Hutton, at release morning, Chief recording Financial joined Investor website XXXX. with today results and in Leading the

call includes in results the may uncertainties that which today's differ to forward-looking the press forward-looking As filings, you statements, those factors and on made statements and to statements release cause materially from we the review today's described risks the today's SEC webcast. certain encourage in company's our contained contained actual in identify performance and events,

we In in to now of measures turn over non-GAAP Scott financial will financial call. financial the Scott? Executive like this Hutton, are non-GAAP of non-GAAP Descriptions addition, I Officer. measures call would these press to release. measures reconciliations discuss and to on Chief GAAP today's included

Scott Hutton

you you, Thank joining us thank for today. Chris, all and

improve to diagnostics. continues business foundation excellence. upon our key facilitate as as care with culture enabled operational well by the be scientific and Commercial a to built outcomes ability fundamentals of standard and execution Our has and clinical patient personalized transform been a strong

has report been solid it quarter to growth. happy that I'm And another year-over-year of

a previously, As is XXXX year of I've execution. stated

biopharma approach path deliver a margins to our lung maintaining increased strict gross key services, which and driving of through to deliver and cost revenue the X on Our test efficiencies strong adoption our disciplined continue implementing operational to on profitability. goals, team continues to diagnostic include

revenue, the quarter, year-over-year net improvement X% delivered in third in gross loss. growth we and XX% margins a XX% In

completion our sales expectations, projects. of part expansion and slightly was by of slower Southeast, driven timing team hurricanes in Our the quarter's in biopharma growth under the service

expectations fourth I moment, a lead guidance in second the and full EBITDA to will for million million adjusted half us discuss However, due to $XX revenue in in factors XXXX variety breakeven a expectation of we quarter achieve the that year to $XX of our will of and our XXXX. experience our reiterate

with is start on our overall we've an lung last year. test. third growth of of of XX% update volumes a diagnostic over of Let's component grew discussed, adoption the critical our expansion sales strategy. the quarter team as our And timely Test the

members help Our strategic approach has team that been long-term our mission advance culture, growth sales while our positively to right impacting vision. hire the and

quarter, we this territories in the focused and in In ourselves sales to fourth into teammates sales set other XXXX. upgrading up territories for further on talent and in success new quarter adding

sales members, large XX the quarter. an The of third team sales we who quarter a class had graduated contributing in training contribute early fourth in October average and will

our planned the will Given the graduation member members catching XX end of up the fourth the XXXX. sales be team and of at our team contributing between and that to the in sales anticipate number of average class, we timing quarter fully XX. of count hiring

the For average organization XXXX, members team opportunity. significant to continue build X needed an we'll quarter as per out keep of X to adding to we sales the address market

those of team States that last in I normal in members Florida hit patients, that weeks the testing observed of and physicians on the quarter forced homes their evacuate third the impact were September the affecting also local to regions. comment We hurricanes many and Biodesix and our to want X of businesses, October. the the and in United volume thus Southeastern

our future recovery, the providers service to business impact in care return minimal. to the will in While early near to be communities stages levels expect normal the health are we of these most long-term and

Before entire of the to face hurricanes. team we acknowledge the communities continue to wishes who recent devastating effects go on the Biodesix the

our thoughts patients of long teammates, providers, Our with the health of and as care are process residents recovery. they those continue communities

the year-over-year to growth this testing with announced diagnostic Lung in new quarter. driven coverages test successes our volume grew difference XX% revenue the growth by reimbursement and back and Now quarter. previously added revenue

policies We in added Centene, coverages, Blue and Health Blue and XX Nodify we existing pleased other Wisconsin. the new Shield, of adding private to tests. focused Security policies of our We're policies third Nebraska, for coverage all in quarter Medicare add more Plan and California, Blue to Shield Salon from for these remain on payer our Cross

and support setting. of at order clinical October XX,XXX the studies. excellence data in who testing lung clinical data a meeting we on and the generating annual patients quality by in presented notified our from coverage a continue conference new the test, of in CHESS Early In Boston, cohort expanded adoption pulmonology of largest New was year, to to real-world focus received initiating

are demonstrated use or into risk with prior data, rates and proportion recommended with up patients patterns high that categories presentation guideline consistent clear plans. the results diagnostic clinical that classified of national reclassification The highlighting actionable down published

This of nodules. health scientific was play educational partnership program professionals content continued with the of assessment positive our lung one to to new demonstrating role of care interactions clinical exceptional, opportunities. in interest several featuring Reception in notified testing, hundreds test was and lung leading at presentations CHESS the in the this

Massachusetts given an notified including ABIP, Charlotte, and North evidence of or benefits seeing to progress American demonstrates in the and Association focus and conferences, last Broncology Pulmonology, in on Boston, in we're their continued generating patients. interest of lung of Carolina CHESS lung strong nodule health health August. and systems believe care providers, leading this biomarkers that excitement in is advantage indicator testing Interventional increased and our medical first-mover month the We Generally, at a adoption

auto integrated multicenter test announced also review chart on received blood-based new notified collect real and clinical [ ] and testing available the information patients practice of who've antibody study clinical in a X company complementary to the utility X will at Clarify least ] world. classifier [ named study follow-up. and other ClariPhy, the with The impact a X,XXX of evaluating in clinical retrospective proteomic patient outcomes years

This ] Clarify [ of test country. to focus the study patient have population subgroups test study that a performance and allows broad patients the us to clinical notified the studied the not other study XL that effectiveness real demonstrate in on cost-effective may the CDT The a to historically in across further diverse faster execute of of X been and world. in studies confirm Nodify design is uses

quarter which of through XXXX It's the and XXXX assess to progress to to the third-party also the continuing randomized a designed data trial management controlled data utility review notified We're of to the of release. in accrue We and safety scheduled study trial. and the expect interim making the clinical prospective early data release patients test first potential to XXXX. discuss complete in with interim an meet ALTITUDE, is for progress is Board

We will provide additional updates following their review.

presented ISPOR research later Nodify known Economics Spain for Outcomes new will data Professional economic ] be our this on the at health Health Society in as Finally, outcomes Meeting. test [ Barcelona, month. and and Research

contract, million not for the at to quarter. and the operational our which our Let's of scientific under but $XX.X recognized is We demand end million, second by yet revenue the our dollars move increasing as expertise. services saw business, from biopharma and $X.X to grew enabled services now up

through of Revenue third week timing into of the of resulting and an September a delay year, week in from of increasing October. quarter of excited funnel the the that shifted receipt and larger decrease the growth quarter completion first versus the sample RFPs, XX% projects. contracts about last the number a of reflecting was last project in the We're in

to This across biopharma differentiated quarter partners clinical board, all CHESS care deliver great with filled to Across and fourth platforms and use opportunities multi-omic additional sales leading that improve detection, our excellent drive the interactions and a and service an off our development team treatment customer to leverages to the to meeting personalize is the expertise insights adoption. help disease with start a offering that evaluation disease types. help research for is patient

addition risk [ ] our of as the and new study announcement quarter further team the members biopharma contributing nodule XXXX of and guidance. project of all the CHESS, data sales of presentations are newly market the the The of are large from already New class the in study completion the the graduated lung assessment. our to and the data position leader the in CLARIFY establishing momentum achievement

it me financial With that, turn the review Robin? over to let Robin to performance.

Robin Cowie

Scott, Thanks, morning, good and everyone.

in growth over from third approximately volumes. testing representing prior the XX,XXX million, $XX.X was total diagnostic quarter compared in the revenue and third from revenue million XX% for approximately XXXX Lung revenue year. XX,XXX was growth quarter million to $XX.X tests XX% tests a Third quarter XX% as increase the of $XX.X in test

quarter Biopharma XX%. in impacted was $X.X discussed. sample the timing project of Scott Services XXXX, of decrease completion XXXX by compared receipt was quarter fourth the of The of as of a third revenue quarter million end $X.X quarter third and and revenue to million biopharma the the the between in beginning services the

Our the a approximately contracted pipeline is robust, is $XX.X not revenue, recognized with yet high. million and record ended we quarter but as which

in XXXX the quarter of down XXXX. percentage second XX.X% quarter in up slightly was from Gross XX.X% the from prior in margin year XX.X%, third quarter and

spanning and the Our remain the even margins large impacted beginning of the of quarter. a by consistently third XXs biopharma quarter completion expected, upper as when from the in gross project services the end margins of fourth

direct stock expense, third includes amortization excluding the to million of for million expense XXXX, expenses, noncash during quarter $XX.X XXXX. for million quarter Operating compensation the to third $XX.X XX% and and $X.X expense the third quarter operating million depreciation compared of in XXXX and Overall, costs $X.X as increase. was compared a

an growth an office primarily operating in as to related well in testing and and and expense enhance in support Colorado quarter improvements year XXXX. laboratory, increase to expense sales drive the to increase opened the result long adoption versus our as in diagnostic sales the prior of leasehold costs product in January which Louisville, marketing is depreciation awareness increase The

XXXX net for loss a quarter of $XX.X noncash XXXX. million was million which excludes quarter of for XXXX as Adjusted X% compared third loss versus second of quarter third X% and loss of and a XXXX. $X.X the million a loss compared for the and XXXX improvement to million quarter million, EBITDA, was to $X.X or for $XX.X of third $X.X an second improvement Net million onetime items, loss the a other quarter of $XX.X the of

million Integrated $XX.X milestone to continued of which of with final payment $X.X quarter. to show We ended we of in the flow improvement which quarter, cash million unrestricted operations, from as the payments for the Last quarter, the XXXX. provided cash Diagnostics acquisition in our a third breakdown of in equivalents and excluding end the $XX.X cash million included milestone the second at compared quarter the

the was $X.X clarity, payments for Net contingent the used For the consideration. activities, million quarter third net of versus flows $XX.X quarter. as the of in $X.X million million on cash labeled cash contingent milestone operating cash are the and equivalents quarter first statement second and in the in consideration milestone

of are guidance and adjusted XXXX. $XX in expect As revenue our Scott half profitability second $XX total mentioned, million EBITDA reaffirming of to achieve we XXXX to million, the we

to this want took we good out I call Finally, some corporate morning. that actions housekeeping

We to are month and forward. this a maintain before refreshing this access for filed program ATM million a program, it $XX going have ensuring new and we prospectus our tool expires flexibility

none a up their knowledge, some of of to any pre-IPO or to sell register time. shares this pipe also to largest intend director shareholders. statement at shares and for affiliates put directors our We our compensatory our restricted resale registration

back Scott to closing for the before thoughts Q&A. it some turn I'll Now

Scott Hutton

of Overall, Robin. our in the EBITDA and the you, year gross fourth we're profitability and and steady growth for XXXX Thank execution guidance the momentum revenue solid to adjusted second quarter, for to half the helping team's leading reinforce margins pleased the building with milestone third quarter revenue full XXXX.

lung of States education it when to international both we management essence X lung lung November more awareness is the activities deadliest of to cancers, cancer. in than of X, responsibility opportunity many in deadliest screening annually off and cancer. to the and transform diagnosing cancer month, that remains next in claiming cancers the cancer to the combined. Today Time Breast, the the kicking cancer. for the cancer patients care At of encourage the and is I community we diagnosis prostate and have and and compelled lives United all the with with lung colon state Biodesix, are treating lung comes standard patients. joining am

you on will this lung Saturday, friends want get screening. X hope early. November also help family screening get day eligible and We people all and share about lung to cancer to be deadly catch screening cancer your cancer marking information We'll national with informed to

start with move now to session. let's Operator, the Q&A questions. Let's

Operator

William from question Brackmann Instructions] Blair. with [Operator first Andrew comes Our

Andrew Brackmann

play Maybe this And it interest in that over can Can the to CHESS. utilization for referenced high on metric the some your maybe just on Notify you to years? out prepared in forward year you of specific think start talk the that in that, standpoint, sort how your about resulted docs? from that in little of sort for business. has a level, going related I few Scott, just be here your at how guess remarks I you bit might ordering momentum again franchise expectations for conference evolved the last your more

Scott Hutton

Andrew. you, question. Great Yes. Thank

Boston, record third the back ourselves really it I a started. pandemic was this showed since person is stated, only the chest When year. us in in this that CHESS reminded for As we

for inform we've and to physicians upon show, So that a made huge really based educate, opportunity progress on continue Nodify. us empower our to

it the year X the When people a we back due noticed back or what Hawaii, years hiatus expectations, we last ago, a our walking a someone to peer-to-peer were what noticed in with. comes introducing as we've we CHESS, leads after friend to in trained ourselves in were welcoming ago, of were the person, X About over that reintroducing long they lot we those X and had COVID. us to into when introductions, booth a physicians

the like? And integration and had who's people and soon me now us, into we had where workflow that. met evolution heard staff think what they my up. we really The to I question's year, people the had read rep, was We questions does were, you haven't local This if papers. come of it's weren't booth. local how They what changed, with my and look lining my noticed help can rep, in a we pulling wonderful the

which historically So when we push a a really poll, adoption is a you saw that really to as shift in a consider product. from commercial wonderful

out are those expectations Our to as always it we CHESS, of at leads. hot going coming look be

comes if a they immediately a a own introduction kind sales follow-up to leads them. over are meeting. physicians their Somebody accord, call, who Every follow-up. here turn out. the on local for their of the couple one those following back ask reps an of met to We will And of in those weeks received we have rep hadn't

through reminding And practice. we're scheduled how changed market. that developing but so We proud implement of also notified a this we into advantage, follow-up can do best go then testing we we keep have a It's their ourselves, first-mover and a lot, we're it.

of and testing. each the for we a shift. interaction opportunity on so what noticed big is to at a us every meeting this And merits notified significant educate was And

go of company you're to it to, talked visit. Biodesix and during is We've if some the molecular testing, panel reference some the that competition. Limited debates biomarker of about even or was interested the a presentations in really

They we impacting care that tests standpoint, from us in to to only that encouraged referral by those in peer-to-peer professional treat growth were stop big making And that even only the a confidence gives seen But they're a so practice. And health significant the people health not not those care of lot referenced physicians our booth. a patients we've see but by are difference adoption. name.

us, early year each ability new XXXX. and those happens in is that contributing fuel the on be fourth the us growth aid now best for quarter to timing gives really thing but drive we're accounts up us CHESS to grateful and leads, in some in Andrew, Hopefully, The sets that So the see of follow part about those the we for here really leads traction up fall. growth the it those on

Andrew Brackmann

Perfect. just Maybe the follow-up as on here, my model. and question second

some of talking sort the think give I to year. sort of started in more How this just blocks should during to building us high-level those third about point? goal underlying second guys thinking we that of the quarter, of EBITDA drivers? Can maybe positive about adjusted you get half be you next

Scott Hutton

it's great question. Yes, a

that when half plan shared year. August believe to profitability the next to we get adjusted I I EBITDA second right. of it in You're was

worked the our testing, For do drive us the in having have fortunate for that we're margins all really in a to XX% XX% laboratory notified has us, puts where to on of we that gross range efficiencies category unique one that team nearly leaders across high we're diagnostics.

to some manage way we continue with increased be years, expand we money. gross a but margin albeit where test over minimal, grow and invest same think as Obviously, to I few we and revenues. have. are the going but to few not volumes as prudent last have to we quarters, the an only a scale, there's We're on about opportunity we really demonstrated when get that sales the with force, And is we've very We're a very, spend to associated going what in is this trajectory increased always there. improvement,

business. continue And normal big a But to ultimately, no in to great can We return. the there's going invest changes. really, it's There's course. so be

anything top You the model in to in deviates, big growth. won't XXXX fund our commercial it's see fuel about and that really that line driving engine continuing

Operator

comes question with Genuity. from Kyle Our next Mikson Canaccord

Kyle Mikson

stuff. with XQ? the relative the the dynamics biopharma from in that into is biopharma update, you XQ shifted Scott, and just you're revenue albeit decline. the shifting of thinking expecting unchanged in for driver project year also your sequential and large -- Maybe some revenue you in flush revenue that that about? third said the segment budget and increase full to kind And like any a sequentially timing in forecast like end Starting was biopharma, of XQ, to quarter revenue Are there's the of and

Scott Hutton

it order. remains I'll Kyle, great question. go in unchanged. Yes. Yes, reverse

the closer contracts, of kind the all the we into year, of get of as flooded. contracts are All

end We've of in in got was at the -- upon quarter, was queue the samples. laboratory. receipt This them it really based of really the third

just so as receipt to and X to they ran samples and have came samples did weeks. to receive left -- been samples significant that And about in, of partner. back really happy pretty quarter. biopharma in We weeks those And out. was news, from and been receiving run start of a repurposed the good with have delivered report all obviously, delayed X those run few I'm time the The

it as at looked we So just push. really a

for we We have in time. we're But be always this noted, fourth As But we'll $XX.X of At progress we and you've queue. fourth business in proud confident any under share revenue. we're Right? we that grow, feel the the know quarter, again, this excited we've got yet for likelihood quarter million at our to mindful but we that and to decreases. as the quarter, what ready the of as really present. contract, projections in look point as book time, bluebirds continues and recognized not through

That poised for really that that strong this progress confident that leverage pretty and demonstrates momentum. can up grow feel start continue and we're to can we and a and to XXXX set

Robin Cowie

exactly right. expect in aggregate talked quarter. The the be about you're second we for Kyle, And on half what track number, we to second

be different, of total mix quarter quarter but is and just fourth third a should little the Just bit the same. the

Kyle Mikson

Okay.

that's So great.

bring guidance of the it up the pretty business. because was portion and reaffirmed biopharma is So a small I

really sounds missed like it hurricane like core the was And our impact. a well. -- that said you like it like you of as business, lung kind also declined model So that

does does could time over well? last impact? question, similar just to kind the as So of recapture And -- possibly quantify that you like get hurricane that that

Robin Cowie

Yes.

And of lung. belt. hurricane highest and tobacco we're country. quarter. is know, last So the cancer really And the the the It incidence focused or impacted prevalence week Southeast the and in in the lung is of as half you the so

And our so therefore, of business. for a portion accounts very significant

So states X for impacted disrupting absolutely weeks quarter. those our

that push full year the or diagnostics We but full third $XX second that's There's the half million guidance reaffirmed keeping and year quarter, same. do -- to should fourth be $XX the lung again, why between the some anticipate that so million guidance same. part we of at about

Kyle Mikson

even evolve and one hearing do the in you and and about view CHESS the have at more last question. comments market of the guess? presented just think stuff that quick one I the for attendees what then one is Perfect. some [indiscernible] lung your given the Okay. the at And about we're you how that Scott. management? Jumping change of how from [indiscernible] like already CHESS then time, off could Does over that the some on conference. And you like screening addressable insights penetration the opportunity findings like of Anything that

Scott Hutton

to think our Yes. said see. It we've doesn't when or we they more development. what beliefs. X additional believe. want we're that's going and release and invest then had ] physicians really in what questions. we projections data long-term and to Panoptic change stated We've any Oracle X reaffirms And starting to of intrigued, It data, what to validates I [ we data, Whereas for ago, the years ask are they continue

present more every start to that and opportunity we you consistent results have the board. to each data, across which of the data, see a positive, is especially when it's So

to were new that dive of Which because physicians us the is of chart study, deeper the review allows announce those to ] reasons the that specific may questions some individual so into have. is which ClariPhy, one [ excited study retrospective we in

it's as can. So and again, us, much an we the provide for we possible, to possibly content build high data the that as think as as bar market opportunity raise

test ready the to are con. never full was or notified it biomarkers what can didn't a of con think the physicians across share adoption that's not whether pretty was set for of the pro was a one made. The and as ready. it Well, I'll I And a physician you up much was one sessions, debate debate imagine, the concession present this versus we the saw, our feedback, in the where

much wasn't of So there pro versus a con debate.

to not easy pretty and not to rest we're good hey, So to going that, sat that as We're a in stop. going on say, leave job. we've it's done we that, and

in really portfolio. is invest going to it this we're to about us, demonstrate continuing that For

When digits professionals. difficulty it backlog in It's broader opportunity. we're and patients of penetration, And you've only think comes to care we as and low highlighted, penetration. creates and more to the mid-single grows market massive that screening in challenge a for still of adoption, this a with a health

happens front. see lung really cancer the we're excited to screening on So what

Unfortunately, in the cancer, XX% the say, find is lung patients. can screen best you literature to for adoption X% a in eligible those from, anywhere

we So to patients early the enough. getting are not right

[ will of So HEDIS we're drive might and a screen And lot help end that. there, to excited to adoption. the awareness about it's start this really awareness ] measures have then those lung The this of month. And that really cancer will excited XXXX, roll out bring towards about year the you awareness. and into front we're heard

with detection most outcomes diagnosis possible. leads and positive to cancer We the early lung know long-term

going we're continue on that so And to fight.

Kyle Mikson

cancer was of the just like kind screening That How does guess, for understanding over maybe But you I you've detecting do Okay. term, perfect. effect, introduction quickly, lung of about test those? to what with and just medium blood-based just the Scott, said what nodules mentioned that.

Scott Hutton

Yes.

far. is tests tests that multi-cancer what the single -- promising. far thus research screening cancer those on research products, Others fan So of include are to of that you early been related are data said, are conducted of a cancers lung and big lung. thus we're early out is focused also companies detection investing in like might a number we've that's there multiple detection blood-based the some specifically There's seen

we've those seen actual false some in more cases, positives of positives. Unfortunately, than

in But physician for eligible population, we hey, community And screen is is Nodify appropriate is and so really incidentally test I will nodules results a improvement it test detected at think because this us. screen it before both the looking benefit there's those see found need to the broad adoption. saying, nodules.

pulmonologist use we of additive. need positive you when from this to it talk think add in a test notified still referral of as do to CT and terms that enrichment, image They would a blood-based on to a in a get screening a then physicians, perspective, then referred so So would testing. screener, see result post who and they if would

confidently example those positive a XL appropriate opposite forward. out to rule in positive X rural use in test patients which time. CT over CDT, pull monitoring surveillance would would that is patient results Nodify a They'll population test through them a used and the bronchoscopy which we've manage test, to And to then the a lead on is the a notified allow

that we to us So work They can't their the plates out physicians with the tests to biggest are there. all. challenge are that going many There state take blood-based tell patients and the screening physicians it's is full. most them off, so when If already get break system.

up. do And that's remote to so detail, helpful. going Happy need hope mobile to. to can but be free time really can and greater time, in not a say, but to spend that's my I bring when go look much I in "I'm phlebotomy where the patients I Notify at positive clinic to they able I and as got or are that I phlebotomy

Kyle Mikson

Yes. perfect, That's No, great. Scott. was that

Operator

with Dan from Brennan comes question TD next Our Cowen.

Daniel Brennan

like expansion has at, the to few force steady, rep and lung above per some million. if been a revenue quarters not looks Great. Maybe just on you're sales it in $X of reps with increasing diagnostic now bit kind productivity, a

Just think how of kind kind of of about we here? you how productivity do guidance? when you And contemplate set do kind of that that from level kind

Scott Hutton

split simple in we question. we Dan, in increase really million. it's $X great perspective, demonstrated territories right can drive grow the greater where and a a that the then, reps to math territory. some the been and have at and have And it's there past, about productivity shared turn, capped their is we that Yes, We've productivity. sales modeling rep From continue to

blend think the And of so what it United is a mix a little bit do States. we a or as we'll of across

of their still sales we've the We air, build-out up in less is where west territories Southeast, cover What shared productivity the a we or individuals worked to only those the in time whether We've drive physicians. can west. there Mississippi be decreases more early spend that is large a road, it's know started with not time behind have the our cost, of way the the force amount know they on windshield it and the geography. few to because spend they going but we

as cap and and started rep, professionals $X.X progress. We haven't So seen of that per had they that been one we that's higher our confident rep much cut get we we sales of drive we're continue of north them a when make number the productivity sales We territories. not in have intentional. demonstrate We've to seen really grow can we this of out. some scale, million has more as still can to

penetration So still for with drive to this pretty productivity and than less rep linear. XX% market can scale grow continue and it's opportunity. We into higher. We stay us, sales

ago, You role a consultant associate recall aid really driving us implementing the may higher. rep we that's about to sales going started that in sales productivity also year

will So $X you'll appropriate into into to consultants. see sales head in the million rep mix. actual sales us XXXX as somewhere rep associate productivity is head $X.X we detail And we provide that versus as the million consultants on hire how sales per greater many I sales number. think But

Daniel Brennan

nascent, remains incremental strong been of Penetration right, versus has last very growth lung Revenue Great. certainly quarters. X modules. million couple

coverage. in good really got You've

good got Oracle. data You've from out there

triggers of terms growth the the top are you do rate, for in in like further wondering what Just that, inflections line think?

Scott Hutton

basis at of a as our in sales we large on health what with They're themselves. selling. We introducing to And look systems. work care on do they're knocking and kind bottoms-up networks integrated one is some day-to-day product of doors, we reps way Yes. refer it the the large

there's across We progress lots time great lot to of spend making on system. entire have down We're a tops and us that a front. so we for adoption from working think broader an of opportunity

been where I those can of make to get haven't or we anticipate disclose to expect any additional Just announce we'll a progress. really able point fully and

provide Those would greater XXXX beyond. for inflection and in points us

Additionally, we it earlier. little talked about bit a

think got in invest just continue development. you to I to data

continue the to not think order and to can test I but we educate, do inform empower anything only expand utilization. continue physicians to also to

inclusion. And will, we've horizon, you for And so the But this Nodify. more with on guideline become one past. we if of that think physicians broader stated the sits there in comfortable utilization us, the out will is

their XX CHESS I'll not have pulmonology that in XX Our and partners or years state guidelines updated within years. again, ACCP,

So we a not differentiation and is there. think guidelines enough there's updated included us. And scenario a we've they've there. where not data big out that we put think This

to confident helpful, guideline and I for read knowing which of point us. Is data grow with Dan? those that would the nice guidelines that are those CHESS in the individuals be in at we the as some in They've the involved for experience we're meetings. that guideline scale, a also inclusion publications are continue that have They time attend So in point Nodify. inflection and think so updated us, establishment,

Daniel Brennan

Yes. Yes, that's great.

Operator

Your Sung Nam next question comes from Ji Scotia Bank. with

Sung Ji Nam

test Maybe see It's per Robin. to one the revenue really growth. for nice

might on based have? you that of have like private there kind prior could any may our cash forward based payer wondering model, Or going quarter. of the periods? been was seems this think if of type guys funnel onetime it opportunities I record cadence we a I from on anticipate collection

Robin Cowie

that for Thanks quarter. it's very question. to the report I'm all current happy

unusual items from from impact prior no periods. So onetime

how reimbursement So day-to-day been to our several have able correct. wins you to impact It's that last ASPs, with are started quarters quite we've announce over the best our really ASP. pleased really of the one

Sung Ji Nam

is on my just Scott ClariPhy. follow-up for then And or Maybe ] Robin. [ Great.

potentially clinical overlooked about curious, entails? characteristics you been before? underrepresented looking patient Just may have talked just Curious you that kind population. cohort, about that the at of Are guys what also different

Scott Hutton

different the I Ji. It's Yes. of really lenses. through answer it yes. we is And a at think question. in good The Sung look couple short, way a is, Thanks,

as So the conjunction with utilization chart in of that or one looking is that scans. alongside PET really notify of review part we're at

are know from with they pulmonologists the results scan. so a and population, disappointed many get patient And PET frustrated we this in

of of negatively is results. Coxybelt some [ going And because to positives, located ] they're if those PET histo geographically, related region, the or be it impact be where false that it in in could they're can to

So really result. as we charts PET against at pull looking those the nodified performance

lot CHESS at and a questions think value. the going that big we one so to And of was be we topics of great the of that's received,

other test at to start But performance of when consider patient the race ethnicity. questions a then We we populations. across about subgroups different of different lot you the look get and

expect seen what demonstrate and fully dive performed we've our the with deeper ability to subgroups, it exactly in consistent of standards test that into And which perform populations to how we to date. to different or those so will highest the

tip But this of the is really the iceberg.

review up those long I chart that happening other than point to the deduce already XX,XXX at X-year we've what a charts, patients add is them time outcomes term a X,XXX we greater targeting analysis a at is highlighted quickly go time key. thing it the X-year of think and this upon to we've based enrolled to with clinically patient with That's X- point. ended into can X-year can we

today same But starts, know, ALTITUDE wait the as we X the patient clock years. that's and do to We'll within any enrolled we in have ALTITUDE.

that answer. us not questions that valuable. there's at meaningful we was expanding We about it looked handful as think of and a those we we it are of part can and So said, really questions It's utilization. for think

those It's have. Is more about of physicians Ji? clinical answering questions some that Sung helpful,

Operator

Bonello Our next from comes Craig-Hallum. Bill question with

William Bonello

couple of things. Just a

can answer your you I volume you to -- right. loan sure just Robin, about up, in clarify Just start I was QX, your on understanding wasn't I expectations

Robin Cowie

Yes.

We expect had we to said in that end in million $XX year, the we'll total. that million up where $XX before for full

that mix quarter fourth expect the half diagnostics. With the biopharma, and you the second same matter between no to number similar it is and we lung how third

still So in point. we at where the would aggregate, be we look at same if thought you we're back

even quarter. of tests despite a third expect the push don't we shift some So of from the

William Bonello

Okay.

in be you So QX? just but maybe want to don't are thinking I are that up volume sequentially you lung thinking mean, and you should -- say,

Robin Cowie

are. Yes. Yes, we

William Bonello

Okay.

So that's helpful.

there heard were mentioned you Scott, maintaining call QX, out of should to there biopharma mean, reasons we just what so calling I've you why from was the more the elaborate QX confidence else is comfortable some salespeople. with in in beginning the on have that Is delayed to productive QX? Well, there you be guide anything will sort at I of on QX. I think feel And

Scott Hutton

referenced that know minimal you, glad that were we're you hear Bill. And hurricanes safe. reside from from you impact you Great the to Florida, and in Yes. had some we of the so impact, and

able execution their sales territories to that we still the been us, and same productivity, look perspective, this and see rep really at For year, onboarding we've individual progression from those then return. on their an

invest we have sales that continue in confident force room to of expansion. feel plenty we to So

So data November right? some that's papers, additional some out. publications here [ additional Block, There share. O'Kane, Chief are always really our help, to Officer; really gives or in it. But It deliverable there's that will team. coming no De ] Those be Karen execution. still about leading our of ] Sales, that and Commercial is Head about December. This Mark really [ it's them us

significant team, addition We sales a class training. a the You that referenced went through to highlighted large it.

field. already those now. Happy the to X They're out that to in share are contributing individuals XX

And so number up. rep brings that it sales

perspective, per may performing So X to $X but a from get the addition year. have math million annualized contribution in on an sales $XX from significant XX we'll the that rep those we to to they basis, annually, million throughout had

William Bonello

felt slowly? to you'll there than candidates moved it Or you just mean That's catch helpful. And maybe had who just on you that anything, the more people, up, you you more then that were there like Is sort more what of I and reasons expected. really of slowly with? sounds hiring, mix of but was have move comfortable had the the slightly timing

Scott Hutton

culture Yes, it's still will that right really if We and on side like slightly. right? of so we answer the feel I adamant every yes, there board each fit. we question. have will I say always the teammate is feel -- I good the short that a would And we being impact don't ever bring that slow on the

can take a a thrive. that time be potential can And success they we long career. not but good ensure lot to have so they only earning a that can great of have a And they're fit here, they

we wouldn't completed were SG&A proceeds sales net and we You quarter started to stated raise QX without we exit frame. until fund we or expansion, fund recall, fund with that bringing that when we return time very were QX that may in be without seeing we back try added SG&A or early that raise time kind hire in a raise as Traditionally, because the to begin return. were hiring for being because on increased going of the impact the we about didn't expense want negative the professionals so the the we the we have to some slow them going at May back sales force then to we don't hinted May off April, intentional the so of

still compromise through our And and were really made onboarding then off. want to We who set process, we training didn't So just us our go a that process. that we decision want we hiring. to in vetting

we And once that disclosed started was pulling them class back it we've so that on forward in QX, and and had us was really delayed gets think ripple just I track. that's we that that large slow a we effect there were why now

exit about XX year somewhere range. to the is, in way the it XX think I the think to we'll So

the start XXXX. split where of you year. reps, and XX of then that we'll earlier in hiring sales call that's If QX it, cadence difference the And begin we'll

William Bonello

one That's last one. just then And Okay. really helpful.

backlog, and what have for anything sense of we is tell to are this contracts of convert far to off nature XX% those revenue, about How time of do it the biopharma to convert think might to what revenue of of us we a you XX% you like thinking, converts kind that? On the gosh, of can how sort and about do period? revenue sort it over of bookings

Scott Hutton

great it's a Yes, question.

in time going I be get What at that is we revenue time XX% will is share it achieved the way of think generally, of that XX% see is of revenue will frame. XX- X-year to a going be you're achieved be to it in horizon. to XX-month really look somewhere this we the a over we when that to XXX% kind

little nature all time. different. analysis period down breaks the upon over can send depends it they retrospective cadence a all analysis really this it bit a regular a is where And bulk? we the study. samples in It prospective on samples of Or where of bank get patient to, in is They're lengthier a a

see it definitely recognized again, to we look drops different. all that XX% it XXX% that them any frame little We all in to XX%, significantly. XX-month the X-year at So you then years, likelihood But XX- within off a state further in think they're aggregate. achieving goes then time I of If it than of and a horizon. XX% X bit can yes, time of

William Bonello

helpful. That's Okay. really

you not are they milestone, some to of they or not. of upon kind which determine working will the are the projects phase So company with move whether hitting pharma of contingent that then

Scott Hutton

phases That's development way about a this I bridging to the them. phase. across correct. for aren't Yes, we within of think is think We're

to results them kind So start to look we with them, Phase as that's a our and phase. and of to they to next deliver they contract and it going move inform educate at to say, we help as they X, that us move whether on the

you customers, for, nice million $XX.X and The dollars contracted customers built in see on new we We also good early, that existing that blend, when across we ourselves then development are individual received part track progress they that. biopharma kind embed have progress. yet customers that within news see And and significant is franchise. of their [indiscernible] we development and of do, that then effort discovery where not payment and existing

William Bonello

helpful. Okay. That's really

Operator

question Thomas Capital next Markets. with comes Lake from Street Our Flaten

William Bonello

appreciate you taking our questions. I

on hurricane we've a had. discussion the Just follow-up

Milton or X.X So weeks after Helene. so came

happening. October, was But So at there on? customer from hurricane How samples? as generating that actual X perspective of challenges some a first this. parts weeks the and about of to the you couple there still There's evacuations did the one lingering thing and then long look go

Scott Hutton

There saw coincided Yes, was with was all Thomas, question. CHESS. I was. interesting And great that we What about think definitely it it. also

saw was early, were some saying, help up to I and back we I've to coming physicians us to to and get my in CHESS got So need what we leave family. hey, need Boston, when

that teammates of our even some had were impacted. We

to impact Florida. that track they We when start they're not in you time. It in representation that see many also year, just that immediate. get the There of if Biodesix us happen in State is have -- that happy for safe. kind we they're pretty the all a team Florida. report doesn't back know then the indication live Biodesix over in got can to assume this are we seen XX evacuate so in, we've gives a it can others lag. hurricanes that back team we an community I'm but Helene when We've and But significant them members of

significant. and and state hearts trying is where We inland would this, access limited. out to date, I impact the to Carolinas, track monitor our is, and the do greatest the be but to impacted flooding pretty to still think is was all up going that there go note I that those of we're more that into even

we us, can the So track best do for we to those physicians.

scheduled ability We track continue but them. individual working we'll have that's the patient don't those an necessarily to in practices, to with support

the way pulmonology Thomas, think months offices are out advance. we know of I booked look patients at it, a most in backlog is and we there's that

return, they they to full as a to. have back return So schedule already

back day. they the We given can really how or a can major missed to that a add if quickly those push kind patients physician or The office that any bolus those is queue. a don't related on you see into will. number of question weeks few last It's take visits that catch-up, over of were

weeks. few we to to and over that the kind what's days improve and last on one, that going their assessing report of our continue So one reps sales work have us seen begin we're to within communicate happy by They the territory. and recovery

be to little a we'll support at that don't But impact. into there's all. most continue start a lingering impact always those patients practices impact. will think bit state to But We long-term don't as us QX we'll we're see importantly, And that there again. they we excited treating a and those of

Thomas Flaten

where average rep certain your only were And added that be. little we you a not but much, productive was number but in comments, mentioned too upgraded sales to you Scott, prepared you'd parse thing your territories, you thinking reps bit also the below not and of

Or that in? territories add is those you all versus of to quarter, territories? that new X when a should X it of going per blend -- upgrades we new be reps think are to So are coming

Scott Hutton

net. is it's Yes. that The goal

X it So to X be additions. will

So we're very proactive.

We're culture a We're being very of Biodesix the company the things transparent. exceptionally competitive. we're growth about best One passionate. within

what team we we members and high rank. we they expect, They like. performance honor have the They sales what their to because help just know that know Our looks know physicians patients. right that's have but not where these treat because expectations,

what earning start or a of they all usually see you wherever that potential they'll year anticipated can are, teams later the so the across that. their entity is at some in we maximize with try sales they'll of year, to another professional beginning a if they the so for This commercial depart year. here new looking And traditionally alternative, is that

were we little so And a more proactive.

that some us certain third we addressed to to we XXXX that be dedicated was we in that had make so the And in because with quarter territory. a professional going fully productive wanted sales in underperformers

the that's So with in you QX. Very what where stand a bit excited of saw team. little about we

So a was that's why few number you territories as we is hires. a that little new those with bit of off backfilled stated, those

look and have make for so QX to X, X been up how addition at really of that that in And we already last addressing feel QX was net done need to over we we've like we X and an the where to weeks. -- so the this say that's and from -- few

Thomas Flaten

update if one, issues? Advantage Robin, I Medicare the just And on it. one Got may. final any

Robin Cowie

continuing record. The just work to X It them change payers. a to is back It's great and remains a We're now, other a still like to little feel go it's in great news it the question. forth on hasn't Unfortunately, broken backlog. really with bit like it. X no groups. expanded and I

expansion. no So

payment work backlog. of We good other to the addressing see the we're continue and to out advantages, continuing Medicare on

Operator

further at And any this for questions remarks. to turn time. back call showing not like following Scott any to I'm I'd the

Scott Hutton

large It's an and and we we the diagnostics. of greater pulmonology we believe for at have management team best payer nodule exciting have underserved and Thank robust and adoption in lung commercial and an Biodesix, you, With status economic clinical body first-mover the population. time operator. here focused momentum for this data, ever-increasing clinical

my to labs. mission, forward look we've our vision our pivotal culture. to call. What and members In all we updating next you and gratitude progress on and to the team our closing, I full on express shown in and is unwavering XXXX the office remarkable want year view year, a belief at as Biodesix dedication earnings We to

contributions and Thank positive entire you. impact daily Our on around collective and are patients' truly commitment for making I'm a lives, efforts. the center team's thankful

Operator

presentation. Ladies and does this today's gentlemen, conclude

You may wonderful disconnect, have and now a day.

Biodesix (BDSX) 1 Nov 242024 Q3 Earnings call transcript