ISPC - Earnings call 1 2023

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Operator

Good morning, and welcome to iSpecimen First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Tracy Curley. Please go ahead.

Unknown Executive

Thank you, operator. welcome First and Conference XXXX everyone, Call. morning, to Quarter iSpecimen's Results Good today's Curley, Chief is Benjamin us call With on Tracy Information and Bielak, Officer; Chief Eric Officer. Langlois, Revenue Chief Officer; Executive

contains as of of I as begin, XXXX amended of Act concerning management remind today's from like Before the of events. Exchange certain the the of we statements meaning would forward-looking within XXXX XXE Securities XXA future you and and to amended, that Section call Section made Act our Securities

such may, filed forth control anticipates, numerous to are These of the of the and Words as intend, statements. in should, plan, the those Factors section the Risk subject expressions hopes, such company's conditions, company, projects, including believes, of many similar intended expects, forward-looking are the variations to document of Actual identify estimates the which SEC. Form for set by the and December statements the Copies beyond to by words XX-K are after The ended with such may forward-looking differ this this for results of website except required XX, SEC's call, expressed materially statements no or from revisions statements. of or year update obligation undertakes those date changes on implied XXXX, at law. available company as are these www.sec.gov.

ahead. Now it is Tracey, my pleasure to introduce Officer. Please Tracy Curley, Chief go Executive

Tracy Curley

you financial current March and joining call. begin performance today's thank ended X everyone, for operational then the months and XX, business of Good activities discuss a for morning, review I will XXXX. and with our

a year-end of upon begin for the me call were also our review touched with quick open in number then We which the to call Allow March. of will QX XXXX filing, during a questions.

to appointed CEO, position Chief was Officer. Revenue and Eric I permanent Langlois was named January, of In the

team titles, plans XXXX, our I an closely initiatives iSpecimen and setting the and challenging Eric the with and that were titles, for with to new entire our communicated execute XXXX strategic at respectively. iSpecimen new since stage been of have have have end XXXX. we been identified and we and XXXX, with Armed Although working exciting key the

realigned experience. is efforts customer customer Eric the team overall base our to our improve and commercial the of increase leading recently

include constraints our responsibilities of of supporting which business, innovation, productivity New required scalable growth. supplier well and as addressing collaboration and as lines are also to drive across profitable all

internal to that I a initiatives number of in business. the resolve time results expectations, were researchers launched am outcome, revenue resulting These revenue year-over-year. a to we increase which line $X XXXX report approximately of positively new lower to in XX% until frame. our in the of with pleased operational cycles inefficiencies the QX March-April QX reflect QX contributed million, kick also do our as is seasonality typically in than budget not Historically, revenue QX

developing in iSpecimen approximately is of technology To technology. investment XXXX. our significant we of support during and investing $X.X in first committed quarter these a the efforts, to made million

first in investment be technology front half the continued of loaded in Our heavily XXXX. will

in user the the updates, improving are efforts all matchmaking. updating we leveraging report significant pleased increasing and I'm to to remain interface, to iSpecimen marketplace efforts XXXX and our track. search improve and include investments Our platform technology these complete data on automation technology To functionality, enhancing processing pipeline. date these our

of the data the will specimens collections the completed to This our locating in improving accelerate confidence first we same to electronic project, be partners our we of medical provider is specifically locating First, patients level integration with XXXX. achieve and record reduce prospective costs with which process our patient and expected are integration to half first in donors. have

of currently is Second, performing technology an marketplace capabilities. team the overall our search

their buy marketplace reevaluating consistently our search. to or user a starts procure because with when our wants all functionality search are specimen, We it

matches ensure user building the of major help ensure between and which This overall and best to best standards, results help algorithm supplier are will will possible researchers providers. life considerable network. levels more to researchers We our science the interface matchmaking and modern enhancements between automation, scale our new provider

to this expect of also release We first the work the in of XXXX. phase half first

Third, we development. not at are front-end stopping

architecture completion streams half of the pilot. are pilot as updates for growth updating validate expected to the a us for in completed possible will our security additional data well be of of company. We as are also successful revenue the our and back-end a enhance data back-end scale, of as pilot data-as-a-service XXXX. to support second to first set prepare the as The our allow service many and service A

half Finally, the evolving procurement and efforts. of our using expected matchmaking matches result to researcher process provided our and we the continue our This in project is which supplier better, interactions the insights researchers streamline in algorithms, second faster are and be expected XXXX. to supplier completed by to reducing for is

undertaking adjacent are revenue sequencing As amendment. we several for on focus projects opportunities, we revenue enhancement

We and coordination, coordinators are visibility, supplier iSpecimen sites utilization fulfillment. increased identification, facilitate at embedding also specimen select on-site project to

projects is well. our revenue-enhancing very of progressing sequencing One

We for samples several anticipate QX performing have initial This first the end revenue launched throughout the we the and batch is XXXX starting this our levels first runs XXXX. of project. from of of pilot with modest at approximately XXX anticipate

very revenue-enhancing well. also progressing our iSpecimen on-site projects one coordinators Another is of project

ramp We to opportunities more are business planning have add sites where XX to of and up online XXXX the site continue to are substantial. a and the coordinators end pipe QX approximately by

revenue increased second half in related this the starting of project expect We XXXX. to

line sites. and of Our through focused structure remanence internal integration is significant creating supplier operational with project revenue enhancing business processes on a improving

and leveraging the are going a suppliers as platform intended. to ensure review process properly both are buyers integrated also through and We

related projects to the in QX We expect revenue increased XXXX. starting

the very be planned for achieve effects of and Additionally, further exciting build-out XXXX. This by milestone is technology will end in to market or an critical remnants us. order

allow meaningfully our efforts to expect revenue XXXX. starting of us contribute cash then with should will projects, improve cash combined We flow of our half accelerate by enhancement becoming second end the business efforts the in to to flow revenue neutral and towards positive by the XXXX. This XXXX our core

successful, marketplace be ensure with bioassessments, their adjacent platform use are must so be additional fully our of that we a comprehensive biospecimens suppliers researchers desire and for ease can can opportunities that search unlocked. solution utilize able to provides To

While effect we yield. work ourselves towards investments this vision, prepare will can and focused our we everything are we market doing technology for to the on operationally that

as excited on the you to path achieving today. We the be diligently are we've iSpace forward outlined very initiatives to on execute this the for

of the I'll Now move to quarter first XXXX to the same on financial results in for XXXX. compared our discuss period

for reported to quarter was the to first XXXX. approximately specimen assessment March $X increase $XXX an during XXXX, X,XXX last in count The in months the X XXXX, $X.X XXXX selling revenue XX, the million by increase session XX% million for first price or the increase specimens $XXX period to of of compared $XXX per revenue, The XX% XX% decrease in XX, to XXXX. increase was a in approximately ended months quarter March X offset of for year. ending a the from attributable of from we X,XXX specimens For for the first average primarily in approximately of the approximately quarter same

decrease quarter the $X.X million of from was for a of revenue approximately XXXX, of XXXX. first X% of the Cost quarter first

prior the decreased the period of the session per cost The the quarter increase prior year. over XX% a of was there in XX% compared same specimens the same in number during to average period by year. in Although specimen the

approximately for on to $XXX,XXX for For revenue period our approximately $X.X same quarter of million prior spend first the technology XXXX, in the we increased the year.

the our level million outlay will to The remainder able classified amortization capitalized $XXX,XXX expenses software directly comprised that of of technology enable to continued was This as expenses. expense record cash our XXXX, capitalized of developed increase marketplace in related in transformational noncash of plan online is be for approximately approximately not first technology to was the be industry. $X.X advancement therefore, the internally quarter were investment software. of related developed spend of and approximately of The the which technology technology internally comprised for to of $XXX,XXX XXXX of and

as Total first the quarter expenses up expenses were and from of quarter of for the our first and team, for XXXX. for of increase professional Sales more expenses, XX% The expenses. first the and facilities professionals sales marketing, year. period $XXX,XXX payroll approximately technology approximately a prior $XXX,XXX XXXX compared was utilities primarily for related result XXXX, quarter to fees, approximately expenses general approximately $XXX,XXX increases in were offset attributable the sales marketing external to developed in operations by for decreases and of hiring the same $XXX,XXX in newly

XXXX. comparable million were expenses of to General quarter for first $X.X quarter the of million is approximately approximately and XXXX, for $X.X the administrative first which

single ranging XXXX. XXXX, approximately X cash maturities equivalents ended $X.X into a with quarter million securities totaled available-for-sale approximately $XX reduce of million combination to and containing million all the $X.X approximately During securities March risks purchasing bank, cash we of as XX, and approximately months. the in million investments to our March from of diversified for of of associated X $X.X T-bills by available sale cash of The XX, at

a cash than December of million receivable the increased sufficient burn expenditure $X.X quarter from to our our balance anticipated conversion of flow and of XX technology spend the slower-than-planned our the $XXX,XXX. our believe equivalents at of of capital our The cash This next quarterly for to we cash for was months. XX, together cash $XX.X will cash $X.X usual operations, to least million meet and of as and remarks. This accounts with We higher concludes million approximately capital working approximately burn Compared approximately prepared for the requirements cash be XXXX. was to approximately first due XXXX. cash

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

Operator

The Craig-Hallum Matt question the from Hewitt first Instructions] comes with line Capital of [Operator Group.

Matthew Hewitt

are your relating that you a in for from that? seeing a Are up, and pharma any so, decline impact companies. what is of biotech biotech you if question. any, first creating? the seeing a If small headwind to from funding broader Maybe impact kind What, customers

Tracy Curley

in at to it We is are. Seattle. And concerning a I'm us. actually conference

And Slide me. a seeing the last. for going don't talking we thing. long in they're is this to of So And with same X.XX know companies it's here, the lot like how

payments concern to to receivable. time a from seeing PO. we're So a us. slower it to lower accounts get is We're seeing on quote

that we've with boutique that were then customers bankruptcy. have notification smaller our also life my several got and legal companies science in of QX We

for accounts. so our had we increase And doubtful to allowance

are you Eric, more are are can about I if quote little talk PO that, we we see a things the also specifically can seeing bit faster. online. lot internally is to of Laanglois over to turn overcome our from bit there Officer, Eric if Chief a little conversion it to we So that that a doing can Revenue

Eric Langlois

I the saying. norm rolling now, I think was the Yes. to what me their Yes, projects. a been mean, larger Tracy I'd the bit just kind of year. number of companies is a beginning requests. the of was in slow seeing we've of increase echo an in We're bank what seeing surprise Right of which

off for ready So available spectrum people are the that that of shelf and kind are looking immediately.

adjustment just some early low longest projects getting certain pushed type are than And part of slower a to be together. seems the being collection off and getting into We multi-cohort time. That so have hearing be just would pushed of at -- companies see possible starting biggest the the is larger lot that of that year past, on out just very the are their future run times, perspective kind projects they quarter. projects in would the the

the So significant most just I'd that's ground, probably we're thing on seeing. the say

Tracy Curley

layers ], before And earnings before they a fact they're Craig I in. get it's lot opportunities but come record we talked [ because the bit stopping about we review PO. that adding to with companies QX, they forward additional are the interesting for Last And move projects. a did right little of record quote, had call, of

part I that think of the seeing. roll that's we're as well slow

Eric Langlois

part that's is of top -- up that an other the Yes, meant amount to XXX%. aggregated approximate I The of funnel the almost mention yes.

all decision process, So customers request it's the that. qualification the and asking that of slower not moving vendor than these those or things is making not are [indiscernible],

Matthew Hewitt

maybe And then on project embedded the realize it's early days. a coordinated. question new I

your from seeing First one of you're What are in opportunities has you in, been first initial kind site? getting what the feedback that even that partner?

Tracy Curley

Eric. let I'll

talked desperately. when to So this need them, with they this like site first -- sinusoidal. increase we has stream We We revenue you. want were to

Matt. experience. them. into been talk it's Eric working so of think the And really with details can exciting what learning And we're from I more that

Eric Langlois

Yes. Absolutely, Tracy. Yes.

in commercial much in with more the in and in So that once focus sites we and thing I able these executive resources. for level, the system. we're streams. COVID. out They much involved growth coming What from gotten are And the they're resources hospital day-to-day, we plans found they're the is revenue higher past, of meetings need be conversations have a for have it's when it commercial dying a a a unless really we main we much interested alternative go found, sense these more operate seeing bench, resources them major and to bringing that these looking just to that Tracy nationalized into supply to

a in to first So FFPE for system resources time, the massive a remnant they picking site long of very searchable to win any these they of but samples been put help had lined into resources pathology site had with also they up, that archive lack case kind even struggled format. -- our we that again, very, a in they've with and

find then interested -- prospective asked. been conversation, just we're in very we've So through and collections. come never actually out They've the really to

pilot look for materially there's also us. different themselves So affect and when you for at that, like X amount a be may generated revenue papers that of the

And that. of all by it wants some resource, having that

viewing this looking pushing is been How are And at we're How doing been lens of assessments, there, projects time want have what forward through feasibility at just other much to will also the additional them they bring do. they the sites, far? us? way? have their So the for then what on generated turnaround and so what opportunities we're that revenue much looking

this behind finding to all we're force receptive bar what So is But that's they're conversations. none, driving it.

surgical complex some logistical kind of to or sites coordinator you see think like an need able much to projects. of you that things fresh And patients, really on-site be tissue more do

get they're right do to the have really a just resources. picking pretty So diligent the all taking much to it, and right job open the of to and profiles you ones

they to Some they could to in they the them facts of haven't what what going what are based phase, purely able but not. other been of and weaker be ones are available, have be do

Tracy Curley

would We're to this and say a give things. is coordinator somebody slightly There's I going different prescribed be at a that to job our and conversations embedded so about to of arterial curtain do. successful what do what then It's going And And lot also going what site you you doing activities be these need to the not be program. every with actually then you with the is that the they do. sites every can description going that approach. they're will

Matthew Hewitt

margin here. one year? XX% kind gross the QX of the a Or we from not may rest really in up recur last maybe then Obviously, the anything And anticipate nice quarter kind should Was year? there hit sticking that for or perspective. at that of of of quarter a north margins gross this

Tracy Curley

as Yes. PLC. those get for a get convert the little say margins those quotes to one I strategies bit don't at we we if I you're are was just looking on our to going of think to our unlocking to that. to PO as one quotes hard of can

You down else that has the of a margin might that. you goes to revenue Anything, see say? as bit goes of up cost want our Eric, because

Eric Langlois

to obviously No, dollars actually. try quotes. something There's that just the authorized when thing little of is there I of doing No, need of was on kind to Yes. push have I've our a we same millions you [indiscernible] unexpired bit. actually when just going because already going them

we So on feedback pricing. gotten have

is wallets. So as the up so whole market tightening the

but the so on going have a side. bank mostly probably the we're little on give only to margin And to

more that a you come back core the up. last effect might and itself. movement, collections, more say, So around it a that think or we temporary margins boost as a that then So back if see prospective we [indiscernible] seeing X of lot quarter right midyear, unlock the fix and

Operator

This Instructions] I would closing to conference like to Tracy for the [Operator our Curley Q&A concludes any turn back remarks. session.

Tracy Curley

the everybody day, all questions. was Matt Have a phone his everybody. that great to Thank you, like just really thank on and especially operator. today of I'd great for

Operator

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

disconnect. now may You

iSpecimen (ISPC) 4 May 232023 Q1 Earnings call transcript