ISPC - Earnings call transcript Q3 2021

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Operator

Good day, everyone, and welcome to iSpecimen's Third Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management's remarks. This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of iSpecimen website and will remain posted there for the next 30 days. the and to safe the hand Relations Soss, harbor now introductions for reading will call Allison over Investor statement. I of the ahead. go Please

Allison Soss

Thank President; today's Chief call our Christopher welcome Jill Ianelli, results you, Mullan, Executive everyone, Operating Chief are call. third Officer Financial Chief and and conference on quarter XXXX Curley, operator. to us With iSpecimen's morning, Tracy Good Officer. iSpecimen’s and Officer;

from forth from those this these required changes no implied or on website undertakes except statements date results statement or SEC’s differ XXXX, These documents contains the our would I the of for to such at you expressed similar as certain events. intended estimates law. statements like Act meaning forward-looking the net numerous including conditions, as set call concerning the Section control forward-looking of Securities the future with statements of revisions available these public materially and SEC. anticipates, of factors may, many risk such made to plans, Before such of we the Actual as begin, amended, as words and Exchange registration offering proceeds and XXE after or are expressions of of and update management the the that to initial are remind Securities by the final The respect the company's of as within including company's of the recent as today's and those forward-looking well Section Words the XXXX, project, variations www.sec.gov. the of which XXA company's hopes, are IPO section company, Act statements. with by believes, to are obligation amended Copies of company expects, call, of statements. should, may subject and beyond intends, identify use the to in prospectus anticipated filed

Ianelli, Christopher iSpecimen. CEO ahead. introduce please to go pleasure my is Chris, of and it Now, President

Christopher Ianelli

on company our This second to and thank Thanks, With morning, Officer; public and on and update Mullan, progress. Good Tracy call. XXXX Allison. quarterly an quarter Financial everyone, as our Curley, are third joining with today or our earnings a our call I'm excited me Jill earnings us you provide Operating conference you Chief Chief for Officer. is

will our operational financial performance We an nine of the ended you during three providing begin by XX, September overview with months XXXX. and and

care a marketplace for on patients, will story, your to and discovery researchers related market of we datasets online platform through iSpecimen Following biospecimens open To for start science to you to our the take we life questions. technology-enabled that, search are network to the sciences those medical life company, are fresh global a line focused from that scientific patients, and is that iSpecimen instantly to develop Without healthcare remarkably from be enables for growth biospecimen gain annum. these solution and and access accelerating $X of to XX% spent health they medical that due There to and research markets, essential biospecimens in rate them play a roles procurement products. diagnostic providers. within annotated estimated for and impossible the per science of life sciences tomorrow's conduct human projected therapeutic $X with is to research. million an XX% would on life it the biospecimen strong There researchers demand annually billion

the iSpecimen hospitals, efficiently, care/supplier performance. laboratories, let more annotated relative centers their that, can by highlights bio quarter, and accelerate marketplace research. provide organizations diagnostic, supply more This while under fragmented the of using process streamlines and iSpecimen pleased from highly market science With a some available therapeutic quickly the remains and obtain its and organizations we to XXXX the in reduces same patients life costs biospecimens to biospecimens, of health vaccine to blood compared unique end agreement other XXX researchers followed XXXX procurement the report our supplier researchers me game our comments is results, a changing third biospecimen and global By them from to that grew partnered approach. at enabling organizations. XXX our in time network to under at with by suffers platform, I'm chain agreement The banks, this where entire connecting variety our comes quarter. However, issues. which second third quarter supplier of iSpecimen’s to

us organizations base as from XXXX, since of end have our the end of customers prior also at organizations orders who reached to the from up our from a having of unfulfilled jump of quarter. XXX the X% We inception, purchased and unique grow continued unique XXX September

Our XX% worldwide. companies companies of XX pharmaceutical customers top top XX XX% of include the the in-vitro diagnostic and

than more delivered inception. them XXX,XXX specimens X,XXX have We than projects our since across more to

includes XX, which users, on the we our X,XXX side nearly of September the XXXX, side our registered For of customer marketplace, reached iSpecimen users supplier and platform. both as individual

We approximately for to of third million XX% million, third quarter the increase of $X.X a quarter XXXX approximately financial recorded compared $X.X revenue Turning reported our XXXX. results. to the

For is year XXXX, compared record full approximately in in than this $X.X period COVID posted Later also revenue. call same and the our Tracy the breakout of provide which XXXX for greater first XXXX, our related $X.X of months increase million, a revenue. of detailed to we non-COVID a the will achieved revenue nine million XX%

COVID-XX flow comments that seasonality year. she overall to and seasonality and some though, specifically typical year impacted both some context, additional like does Before that biospecimen this around the for provide information last how I'd and of order

those third collect to specimens. both believe both of the schedules biospecimen result this slower vacation for slightly specimen is supplier’s than specimens around second seasonality. the of of fulfillment. and the and First, quarter of the a Historically, quarter demand a summer our We is in quarter impacting requests the procurement terms couple notes for year customer abilities

third during three the In quarter third slight compared the of showed quarter year, of quarter years including second some to the four past fact, same in XXXX. our when diminution of our revenue

usual XXXX, did part research this created not which COVID-related pandemic, the the we experienced back the new in specifically last We to COVID large quarter due looking third heightened However, the globe. seasonal was a around studies at specimens, demand for year dip. of believe for to

lower provision the was specimen. remnant largely In third fact, of heightened to order our COVID-related This for revenue revenue revenue led peak third with of related a of XX% quarter clinical percentage XXXX our COVID as specimens a revenue selling price in quarter for flow. the need during approximately COVID-related meant higher per coming at which samples, average but XXXX, from of the of

price quarter decreasing. XXXX, while resulted of quarter business year revenue. to selling non-COVID increasing, a been third of But while approximately specimens will XXXX. the numbers share per with in per higher one you XX% non-COVID COVID-related as COVID-related specimens revenue revenue of percentage overall, XX%. average This the Tracy detailed has peak demand of XXXX, specimens only in more the the the to accounted compared our for related third been non-COVID Now, for quarter the price average has a during business for our of COVID specimen our after selling our later. COVID third accounted our shift also specimens from specimens of remnant

their Two, one, pandemic changes this across business the having geographically and By going supply connected expect and forward adapt bring will platform, levels. non-COVID COVID We in our believe strength easily our returned our developed model our as; more to patient the and approach, biospecimens, programs to to growth replace note the throughout quickly core even suppliers technology we And business and partner and changing that a research pre-pandemic via grow when a that strong non-COVID-related of ones. demand globe marketplace continue enabled we so diminishing with expand acutely. marketplace on on One our the iSpecimen distributed our of able We advance exemplifies continue to board access diverse continue and demonstrated to functionality COVID-XX. ability three, adapt relationships final broad to for our existing were network, the and platform. our platform. we and marketplace business such

and market. research will continue serve to as and that evolve, continue expect be to requirements adapt, We grow the protocols the of well-positioned to also we needs

the some other Now for quarter. review let's news

we our core to offerings, and made addition as growth network growing our In our progress supplier service well increasing as also with business, in data the assets.

offer Just samples introduced to need in this to July, situations. science pandemic, during in service a enhanced organizations, service the time-sensitive U.S. We they time-sensitive we and originally rapid new assist these research. biofluids custom COVID-XX researchers collection of the the human launched to and biospecimens for critical when life option urgently delivery height procure

quickly fresh the delivered our are very enhanced custom specimens. collection pleased need results the service ongoing of of collections for with to address We

organization In patients increasingly cells This researchers. the biofluids exposure the cancer More well than visibility numerous added global thousands biopsies, come publicly XX and work, European We It the for across the the histories. in new for development annotated and towards hard cancer to commitment another help from Russell Index in XXXX important registered selections U.S. in team the of with the we U.S.-based biospecimen to reconstitution. forms selections medical tissue we Effective blood comprehensive advancing recently, a research. wave other The development more cells and is identified provide as categories to index donation liquid our cancer announced plasma donors broadening of our increasingly increase dedication that medical a research. investors their we achievement network with Microcap that whole such also September, the to our part access the suppliers as offer organization, in assays. was about with Russell patients, biofluids, of as Russell specifically of partnership throughout connection for represent also iSpecimen inclusion late and help us marketplace. offerings the of stem/immune numerous expanded controls. held healthcare comprehensive expanded October, and solid indexes our blood will tens healthy this, entire added trust Additionally, and biopsy and included tissues, growing cancer offering both offer of reflects as liquid new of network centers of biofluids blood, we to the of of to launched and in country accelerate family an data abroad. a company. with a Related annotated specimens detailed, supplier August, with XX of to iSpecimen This

initiatives, revenue offerings strategic of which sustain the our we long-term same we investments against plan further our will time, marketing within are of we our relieve data to reach we important opportunistically supplier usership service number to refine iSpecimen to to broaden our These of specifically increased long-term, believe agreement, our ahead, the supply our constraints sales strategies expand through the to penetration in to increase sales enable and growth model the to momentum under grow increase and us continue extend the make our continue our market Complementing value growth. to our and components our marketplace. At to strategy, and procurement Looking the execute our users value to assets. and capabilities. which organizations expand expand to current platform this, on provide we registered will technology and

to are We on achieved and forward have our what keeping future about progress. already you excited updated we look

the financial review pass will our Tracy? on Curley, to Now, call who Tracy I'll results.

Tracy Curley

same XXXX. XX, for Chris, XXXX, results of for a the $X.X quarter for three and million morning, Today everyone. in compared to million review I'll XX% our financial reported approximately compared the September months Thank nine good the increase third XXXX. third the to of We $X.X XXXX, of revenue approximately you, quarter ended periods and

results has boosted of the our already demand. were COVID-XX for increased third Chris by As mentioned, XXXX specimen quarter

this third typical, and XXXX the what consider our activity year. normal of would for While more during the biospecimen quarter period reflecting results we procurement were of demand

third For revenue non-COVID-XX Complementing the compared the numbers XXXX. was quarterly revenue was these the approximately or quarterly quarter of million, our of third for of in revenue XX% for the third approximately to of our XX% related $XXX,XXX COVID-XX or XX% XXXX. number XXXX, $X.X XXXX quarter of compared quarter revenue, revenue related approximately of approximately to by $X.X or third which specimens XXX $XXX,XXX accession the the the third to compared X,XXX the specimens, of decreased of accession X,XXX represented current or to COVID-XX specimens, quarter XX% of revenue. during The approximately third during related approximately approximately XX% quarter million year for specimens revenue XXXX, of quarter of period,

year. the the or same a specimen in prior price period specimen increase in to change However, in favorable the mix the resulted an of average in compared selling XX%, approximately per $XXX

ended the period a $X.X period nine-month September last of the $X.X XX% increase. approximately compared million XX, same XXXX, during During approximately year, we revenue reported million to

has full and expecting ended historically XXXX the which XX, Our for revenue, XXXX results exceeded XXXX, period nine-month for we as million approximately is September revenue the end are company. for strong $X.X typical was our to

$X.X the period. to nine was September XXXX XXXX, approximately ended of XX% or approximately $X.X the for million, months million compared For revenue or related revenue of XX, revenue, comparable XX% non-COVID-XX our

reminder in a comparable of XXXX, or compared $X.X XXX months million approximately first period of of XX,XXX XXXX. XXX% approximately nine our XXXX, specimens, months XX% September had was the As X% session approximately the XX, of current related ended during Again, $X.X or no as revenue revenue. compared revenue for first for of XXXX, COVID-XX to related to to the The quarter accessioned revenue. revenue increased nine million was XX,XXX months non-COVID-XX during XX% of XXXX. approximately ended Specimens or year related nine XX, COVID-XX a for by the specimens the September of approximately specimens reminder, we the revenue quarter

a The increases specimen test approximately of non-COVID-XX resulted XXXX $XXX in demand mix were increase or revenue nine-month prior demand research for for with specimens an in period. and However, in patients more in to periods the compared in price sales results areas. seasoned continue specimen the the selling for year's a non-COVID-XX due primarily in from average per XX% three specimens increasing an and to change team,

by offset those the number compared decrease COVID-XX a for accessioned number million, of period average attributable the million a mix the X% changing cost $X approximately specimen same in was was XXXX, over quarter the for project in for XXXX approximately XX% demand offset average the specimens both a prior which $XXX,XXX the year in opportunities partially significant the requests for the quarter XXXX, were cost COVID-related compared XXXX the mix per in to $XXX,XXX research areas. period XXXX. specimen accession specimen significant than same specimen to increasing increase is average Technology to which a a the in nine-month by per the $X quarter the cost approximately continue XX, same to to still to of being XXXX, during expenses per year's specimen XX% expect for specimens in related the of we period. the by attributable XX% same approximately current per for The an the opportunities period cost period of the in XXXX. impacted of average we revenue XXXX, Cost decrease specimens in a was of normal to approximately Simultaneously, were quarter of revenue $XXX,XXX encountering period. to expect decline. to to lower in and approximately nine-month September third $XXX,XXX XXXX. result yielded revenue, continue by we third increase third for see compared the to third While This replaced of current Cost increase compared specimen in prior was non-COVID-XX of of for ended

decrease nine-month approximately primarily offset for period were the to depreciation in XXXX, million expenses were we of operating to ended For approximately in in year. company's allowed $X.X XXXX million increase development technology The the last that in expenses during project and to were a XX, amortization, technology and the increases September same partially and capitalize. related by $X.X an maintenance expenses not period compared

were IPO $XXX,XXX moving in spend and quarter of we to the of of area this for may approximately and for the forward. $XXX,XXX compared recall, third more earmarked from XXXX, Sales approximately you portion expect for the third marketing our do are proceeds As expenses to technology, XXXX. a quarter

the approximately XXXX period For half XXXX period external related $X.X XXXX, year. to of XX, and of first the were during staff additional compared expenses to of half hiring marketing ended and second were approximately XXXX the increases sales same in $X.X nine-month during September the million, efforts. the last million The marketing expenses in and

area more and costs. the historical the related compared quarter forward. associated of expenses, approximately software, and in this of spend to The General third developed approximately increase internally of related million increase quarter administrative moving becoming and and public attributable amortization payroll expenses continue to to expect which be expect insurance in of XXXX XXXX. in higher for in were for cost expenses resource expenses an also third was human director company, this and continue and an $X.X increase We We to costs officer to to in are related company, increase expenses year-over-year primarily million. accounting and licenses, the we related increase iSpecimen $X and to of increases other insurance, do general facility across public than an legal to a expenses will in board software administrative on due a annual currently the be basis, levels, being approximately classification to estimating $XXX,XXX

and to of XXXX, period cost general insurance during associated expenses, and human related and related public facility increased a last $X.X to and increase was across and payroll accounting and developed period increase primarily in September expenses, nine-month related million, the For compared director licenses, XX, administrative resource to officer insurance. the an The cost expenses general was expenses increase attributable internally becoming ended in year. $X.X million company, same increased increase expenses, the to and in software related software, costs costs administrative and approximately approximately legal board amortization

which stock did and was units, not offering cash is in in costs a costs. expenses of of and to qualify form approximately million provided legal such increased the recur as restricted accounting consulting that $XXX,XXX of employees $X approximately and payroll to expenses special all bonus, expected not remaining related the to the as Additionally, future, for IPO increase

September XXXX. on of XXXX, to XX, balance our cash compared $XXX,XXX XX, a approximately balance was million, approximately As cash $X.X December of

I read prepared you been filed our with to the This SEC. recent For details, encourage most remarks. our further concludes which has XX-Q

call open questions. like I'd please Operator, Now for to go ahead. the

Operator

you. Thank

session. begin [Operator question-and-answer from We ThinkEquity. the Instructions] will question now first The with comes Mahajan Priyanka

Priyanka Mahajan

Please it. collection in cancer Has custom the service. Is Just mechanics the expanded technology enhanced the space? its it of describe network company biofluids based? wondering the

Christopher Ianelli

I’m going supply heads up to Jill question. that She let answer development.

go So Jill. ahead,

Jill Mullan

Yes.

couple a to to iSpecimen. So ability is custom things. the specimens for the enhanced services, internally collection One do us at of collect

recruit site and very the bring intersecting mobile So specimens quickly so the who care using patients our also be collect to them. with help allows to phlebotomist them us have health to we we patients ability that. the may to phlebotomist can the and send from otherwise site, now out to from systems. collect We're And with not

other be providers health to piece same participate of be those also to patients. is it may health able They the The with services care research. in system, not but to care connecting providing

So access patients quickly. it's to gain more to a for way those much us

Operator

from [Operator Instructions] The next Securities. Revere question Lieberman James with comes

James Lieberman

that in You're Can times. developing for have and short of the backlog? of You million adapting time how terms approximately a for business derive have the Would $X.X your you're in model period you I orders to received clearly the you said figure? deal million $XX.X a that really accomplishing that conclude year of purchase great mean XX%? from or

Jill Mullan

No.

a so share to So But the million We this we this quarter number plus our $X.X or -- conversation, I our of backlog approximately public release. I'm backlog in a it. don't is happy press with minus. put think ended

orders. the against backlog yet we've is have but of in the that up obviously taken not those shipped So samples made orders

prior from million a that we POS backlog carried $XX had in came forward. So in, the year

the against in, eight POS point backlog and previous revenue, revenue against quarters the we've rolling the then in of something dollars the million backlog shipment shipments in remains that what taken forward. So includes

James Lieberman

valuable how you out it to that How that? Is give ship? color it plays some view Can backlog and how do you it?

Jill Mullan

the will we aging the look the what backlog. the so is with requests at we the of specimen types the beginning evaluate in backlog at backlog do and of typically Yes, along the of quarter,

months that we in of samples a example, have longer. depending most So know requests the next we backlog, of the course as ship are If ship that take and would we upon in collections collections time. we estimate bank those those there, period we prospective have can relatively things that for will quarter. of weeks, can the are And the collections, sometimes or in an if over years the short

the them look collection samples. we'll collection estimate ship at by making been collection collection what we to -- what the rates, by be have against will those what rates think expect So we collection we against where

what a against backlog for bring call to a we what in backlog book gives with we that turn, then future us associated current request those our what turn that which then that indicates need revenue think that will to backlog also quarters. of ship there's do is book targets the can into do many sense quarter us analysis in good a recognizing it the that we So and them quarter, we will in that actually of forward have going be

James Lieberman

color sense characteristic some would idea business third of was does stronger into seasonality to described to this of fourth was seasonality be give an nonetheless the going trying be of quarter as was to there but lighter, or the that quarter number to the a good that? tends it and the quarter, get where And

Jill Mullan

Yes.

So is spend trying to before budgets And in this the of typically, we due fourth do the see quarter. folks part end a year. to stronger

the historically, our so fourth quarter has been quarter And for the year us. of best

Operator

queue. CEO questions to time, the to Mr. in remarks. and call at further closing over And President I for no turn like this I'd Ianelli, the show Christopher

Christopher Ianelli

many conversations you we Thank for have of with on call interest look having events many the at everyone and upcoming joining you. We continued iSpecimen. thank to today's seeing forward and again to us of you in follow-up for to scheduled. your I'd like that

wish November day. and Biotech scheduled we reminder, Wednesday, final November that, Pharma are XX. Conference Specialty care. give Craig-Hallum Alpha virtually you a virtually Conference Take everybody and a on a good on XX, I'll to And A.G.P.'s & attend thank As the Select with

Operator

disconnect. conference a does you this for may participating call. Have Thank today's now gentlemen, you day. and and good conclude Ladies

iSpecimen (ISPC) 6 Nov 212021 Q3 Earnings call transcript