ISPC - Earnings call 3 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to iSpecimen's Third Quarter 2023 Results Conference Call. At this time, participants are 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's website and will remain posted for the next 30 days. I will now hand the call over to Phil Carlson, Investor Relations for introductions and the reading of the safe harbor statement. ahead. go Please

Phil Carlson

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

statements. XXXX, of the Act intends, the contains amended statements Exchange estimates from Words to Act words our Securities events. Before we to anticipates, expressions forward-looking as such believes, may, like the of forward-looking and would expects, XXXX, as Section remind you of projects, similar made concerning such Section certain within of intended meaning and begin, and I that should, future of XXA today's variations XXE hopes, as call amended, management are plans, Securities of identify

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

Tracy Executive ahead. Curley, Officer. Chief Tracy, it's go Now pleasure to please introduce my

Tracy Curley

Lennox, opportunity for structure I'd enhance to our will activities today. and our Chief initiatives business then operational are this Benjamin their call related Officer. the way and of Each a operational thank responsibilities discuss of Vice take paving Revenue our processes Langlois, Chief to Good you recent will to morning, stage detail Officer; future and joining to rightsize call new Information for iSpecimen. and how Bielak, for our over our Eric within our iSpecimen. I the our like Carli President growth turn Marketing; to

Finally, X months XXXX, has September several the year, call our I X the for and will for of us operate the first XX, I can Since with advanced efficiently were new iSpecimen and questions. not our team performance review and of this financial more the initiatives high to ended open than at same certainty today allow to degree company effectively. is say a that we year. with X, September how with the have by the XX%. needed in first year we rightsizing we operating upon. company has this been and of and September, been organizations beginning towards facet week total the culminating externally reviewed driving approximately reduced of supplier our force customers the company. and our and Every a reduction Throughout is the workforce engaging were internally On and proved and

X of related compared employee monthly of including by result monthly year. first the initiative, months are XX% remainder turnover during a to this As the decrease to of cost for to the headcount approximately the the year. average expected the the for year, expenses

rationalizing the third solution decrease to This our streamlining the are order. costs receiving in the extension, to we the for by the the this for for conversion impact quarters, remainder of We We XXXX increase the the the of year. quarter additional to positive blended program. time prior quarterly of and opportunity and approximately the XXXX. other program, of for monthly interact has Next-Day compared the third of networks transformed average way the quotes first months and with Program and our monthly the the after of implementing the cost to orders Quote average a customers X issuing of quote also expenditure this completed purchase resources and All operational we has the implementation on reductions made to quarter opportunities. market expected focus After XXX% quote key purchase demonstrating significantly XX% operations year to between compared supplier reduced time recognized X between of by the

Moving side our business. of to the supplier

to have and global We manner. dedicated a resources strategic significant provider expanding network in our more purposeful

endocrine, the to addition XX in and generators. cardiovascular, expanding iSpecimen's quantity new We further expanded We cancer metabolic our the to as a of others. access on requests expanded are our we At collection network us among expansion network, building tissue in also our goal gain women's for and our and supplier focused biofluid disease hematology, high-demand populations. from sexually supplier suppliers collectively reproductive breast active the The specimens fulfill specimens of network to our availability especially cardiovascular high-quality the and new third help biospecimens and relationships categories, uterine quality within cervical, our enables neurological, of studies beginning infectious of reliable infections. the third ability which health, and quarter, over network to announced disease diverse increasing provider revenue and it of Autoimmune, to the with with pertains quarter patient to on transmitted of cancer, provider health most advance research,

this of network. our behind existing or fourth supplier have needs network, While that the of we meet relationships the needs no down we increased be supplier working the researchers. in strength scenes with And efforts quarter the winding year, reviewing suppliers longer certain our will our our our are expansion

will supplier procurement for and near- detail. and sharply our rolled iSpecimen speak revenue partners. XXXX, our will revenue-enhancing program long-term projects we to and program. this decrease coordinator we for out in opportunities supplier iSpecimen capabilities Eric In both quarter projects, embedded of our expect network, both our these these third and a X efforts While of the to sequencing meaningfully drive more strengthen

seeing extremely The demand end from of to First, DNA, RNA sequencing like cancer from for procurement launch August. potential biomarker tissue. and mutation tumor at donor researchers program we are program, highlight characterized FFPE of is the I launched would tremendous we sequence data our as of block increased this which the timely

inventory believe FFPE characterize we for to we the this the cancer market a industry's sequence is adjacent according what critical is researchers, created to also has enable and tissue of transparency to reach to believe in embedded research. shortage market, specimens XXXX, advance expected is serving positioned of high-growth coordinator briefly mutation and to help available by iSpecimen integral largest project. an I'd characterized There to on role exclusive to iSpecimen sessions currently mutation research. needed access like touch strongly which $X.XX billion play cancer

this our dedicated on-site And is our resources the to impactful them intent to we most quarter, sites, expect significantly potentially requests project level. in enabling best on fulfill As at we mentioned higher provide additional a this to result to revenue. in call and process, last thus

by second place Our coordinators supplier of original plan sites XX the was end the in at embedded quarter. to have

coordinator have as date, to a sites a we earlier for However, projects time opportunities the we X Eric the now expand been from The sites orders Revenue pilot Chief an this slow see decision underway, fulfilling these creating the program revenue embedded introduced this I pace our for over evaluated of got program to These -- supplier chosen. turn take and like the great project with sites. Officer, organization. this growth plans be will specimen. coordinators. to the large on the We Langlois, year. expected embedding quarterly to adjacent about exclusively deal other key call order on will working as are to made To provide to in learned ensure of unique program. supplier update to success conscious supplier needs instead a revenue

Eric?

Eric Langlois

Thank Good on touch to Tracy. embedded morning, like coordinator first you, project. everyone. I'd the

lack what believe potentially this are impactful them historically priority. our the customer provide reduced resources day-to-day operations, intended revenue. a bandwidth manage much and fulfilled to Most to to of mentioned, orders, generate Tracy sites which best most we is clinical less As these additional have received specimens enable to project and sites

X be support will our These increased program. be mentioned, as and been embedded receive look coordinator supplier, have to to iSpecimen. sites part by coordinators established the but remnant, participating large to efficiency chosen next-day plans supply from product We forward have and resources future program already prospective all growth sites. to will training employed for been of our Strategic pilot lines. Embedded have bank revenue planned as sites. quote increased and improvements, our already and proven continued useful for fulfillment initial growth well the As from

with For emphasis placed we've much of sequencing program launching significant recent the occurring year quarter. this progress most the in our sequencing, procurement on a

of have become also the major serve research techniques capital companion well form market. general at precision tissues area in cancer support and not assays, medicine depth integral a network. from for role equipment various for making diagnostic of helping as been in immuno-oncology part a program the our partners breadth, possible a truly science drugs customers, at major This genomic tests, our aimed will as in the same and of Cancer-based research. characterized biomarkers be addressing bottleneck tests. life supplier collaborative the effort aimed without It's These solve therapeutic an great of

cancer, We're X,XXX collection cancer exclusive cases sequencing. commercial cancer, both been tumor special using now X. cancer, amassed next-generation types ovarian These across breast colon pancreatic our to world's thanks is cases date. samples cancer, neck tumor extend cancer, the of approaching all single-access we've to whose various cancer, prostate current processed cancer, this public comprehensive have renal We I cancer, version available in EzentaGINEWIZ, and panel the largest sequencing such and As and our cancer, lung run cancer AmpliSeq now want to melanoma. and program fully analyzed as DNA for sequence believe a knowledge, bladder samples Illumina's RNA partner commercially of cancer brain head

Lejnieks orders multipronged We've of tens to the these demand more generate the out success. cancer effort of get campaign contacts a shipped be massive process come and out We're marketing thousands and built the the has deeper program as all into the of XX Carly a to cases. are projects. we the XX that of is to research There's marketing in processed and quite shortly characterized in program and on for that already will speak will quarter. world of reaching a pipeline sales to of several fourth and to bullish embarked iSpecimen throughout

to more multipronged our provide to the turn strategy. a over Carly detailed I'll marketing of discussion Carly? Now call

Carly Lejnieks

is on and The Thank you, includes of targeted research new a our genomics approach cancer space. accounts Eric, sample launch a volume growing multipronged to of that everyone. outreach in multichannel morning, sequence existing good cancer marketing and the offerings focused and

also awareness, attending inbound To with audience. target are this lead of connections is accelerate cost-effective We the have drive Society also demand digital we of implemented working expanded in Human key underway generation is strategy global market Genomics, XX/X creation speak. an that new beginning a and American conferences, which segment, to new the from we as

confidence inbound Bielak, that platform. who are database would prospecting, call of face-to-face our iSpecimen a Ben? Benjamin increase marketing, over new We efficiencies and opportunities turn confident speak our strategy digital activities I impact platform in reach and to broaden to marketplace supporting are the will shortest integrating regarding how time. to like the cold will the now period and greater scale

Benjamin Bielak

Thank you, everyone. good Carly, and morning,

and Our search enhancing automation iSpecimen to platform updating matchmaking. in the technology the XXXX user product improving interface, functionality, efforts marketplace increasing include improve and

focus X reflect direction. the the strategies. decision moderate over investments immediate have quarter build not of continues results the product made ways business to difficult last our additional for our the year. of and move forward, innovative researchers road development to to continue work to providers. to The and our to decision in we these given we strengthen from on any value support iSpecimen team versus changes the map realizing exploration platform enhanced iSpecimen acceleration. anything, options continues QX the this like does needs If network This in change earlier While

We such providers matchmaking, with increasing content supporting our and the on cancer improving data delivering and external procurement are including newly our improved efficiency. operational sequencing areas leveraging integration quality as provider program, announced driving partners,

completed provide scale, allow for validate to I'll service a streams for to revenue the and take security call pilot our XXXX. one we to many us believe to results end enhance is of the XXXX of will XXXX. financial possible now of completion of detailed to back-end the slated of back-end for The to to XXXX. the place We expected discussion additional is the data our our update turn successful be service back the Tracy? updates company. data third these which Further, and architecture of growth in same quarter of are current pilot, phase more to period Tracy continuing compared the the of by prepare support

Tracy Curley

Ben. Thanks,

results. to Turning our

third reported million period and $X.X third The by last second XXXX XXXX, the in of quarter $X.X increased million respectively. $X.X revenue the and current second period compared in to respectively. same of we or to XXXX, XX%, XXXX $X.X quarter $XXX,XXX year the million and million in the the quarter of For X-month compared X% of or quarter

the compared XXXX, primarily X% XXXX. to effect increase of September to or The in months ended third was X months attributable settlement or the per quarter to the same change specimens from specimens mix, the in the the to year last per in specimens X XX, in by an increase in ended from the months X,XXX September months account X,XXX caused specimen in ended specimen average XX, September per per the selling in the of $XXX $XX XX, specimen to revenue The by in September XXX in offset of XX% specimen specimen specimen XXXX period XXXX increase XXXX. X $XXX ended price decrease X XX, which count was a partially

specimen September X to specimen months $XXX price months in of During to of per million selling a was revenue per the million in XXXX reported $XXX September the $X.XX XX, and or X-month revenue from in X-month period average slight The period attributable XX, decrease XXXX, XXXX. XX% September ended XXXX, during the last year. in September $X.XX per same ended to primarily the for X XX, ended decrease we period the XX, ended $XX compared specimen

by which per specimen XX% an X% increase of per by prior internally in the expenses. spectrum were September million ended was September decrease reclassify XXXX, of which specimen specimen of offset not in XX% by period of by XX, increase for technology was for XXXX, capitalize the per decrease the XX, ended to attributable or we $X.X a segment for an expenses $XXX,XXX September the months XXXX, offset This per in months impacted $X.XX same period an million The the $X.X or Cost able next and was September from X,XXX specimens X% or cost the XXXX. specimen count technology from same in to selling months cash price that increase in in during attributable X specimens to to and XX,XXX the cost increased prior XXXX per $X.XX million and ended number from the the was developed The average the this year. XX, to session XX, for X XX% X decrease year, months X the million September XX, ended specimens XXXX. a average the of same XX,XXXspestmens of months was in capitalized period $XX revenue over average $XX and comprised to therefore, specimen in the ended $XXX,XXX the in software outlay $XXX,XXX X of or in

the technology quarter XXXX for of internally XXXX $XXX,XXX amortization The comprised third of for expense the of year. the remainder developed to technology expenses third to software. $XXX,XXX the related compared were the noncash $XXX,XXX for prior was in period of same Total quarter of

X we same amortization the to was the For to $X.X related was million million that year. spend million months the internally million X able period in same months remainder Total of this X-month $X.X Catlife our comprised of and to million software. of cash cash million first XX, to we technology expenses not capitalize internally This were $X.X period period technology for year. developed for comprised from XXXX technology $X.X expenses of compared prior XXXX, noncash $X.X prior $X.X the were in The expense reclassify therefore, software the of for for $X.X developed the ended of technology first September XXXX increased of the and athlete technology in expenses. the of million

in the which attributable the investment offset to quarter decreases $XXX,XXX marketing were marketplace. quarter in by of of which our the increasing XXXX, related prior were marketing $XXX,XXX and to for Sales was expense our ended online of to directly period continued biospecimen compared transformational the increase $XXX,XXX The sales technology to year's external $XXX,XXX. to of of increases in XXXX of for is related September third in expenses first XX, professional the third and half $XX increase fees made period the X-month personnel, compared expenses XXXX, more of for plan advancement payroll The XXXX. is same expenses of in hiring our partially and due

expenses X-month period were attributable same $X.XX expenses marketing For of marketing and to $XXX,XXX. marketing the to which million was sales XX, $XXX,XXX, of partially in operating expenses primarily expense and of decrease general, increases increase compared related sales to period million and and of $X.XX in a promotion external in in prior the were period-over-period $XXX,XXX advertising XXXX, by offset year. $XX,XXX, September expenses ended payroll the The during related

expenses September to decreased X XX% and period XX, XXXX, last compared $X.XX months million $X.XX for the administrative to same ended for $X.XX million the General million year. by or

for general X period, The ended from and the to capitalization company technology million lower a $X.X comprised of burn the level plans million, develop a marketplace of to the expenses -- for expenses by $X.X the million the for with ended $X.X XXXX, X remainder cash operating at a X-month during year. X primarily months ICM invest the $X.X million had million of for $X.X XXXX, of further of September and XX, months or to the For XX% XX, months the September administrative $X.X decreased XXXX. million

available-for-sale equivalents maturities total $X.X ranging and million or a of December remarks. X to our cash XX, million compared prepared of months securities of from $X.X of XXXX. XX, concludes This $X.X cash million balance September with of of million X As and $XX.X cash as to specimen had XXXX, combine

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

Operator

We question Hewitt at Craig-Hallum. will question the comes instructions] now Matthew [operator first session. answer begin from Our line of and the

Matthew Hewitt

what on you but this I look not service, feedback about Congratulations customers? days the only program the that Maybe first start early what the early 'XX. from the what QX And on been strong very has up, but excited quarter, realize sequencing it's quarter. most to has feedback? been you into fiscal as into has

Tracy Curley

for Eric going who's I'm a customers front the Eric, our the to to on It's talking That's actually please? to would Matt, this. good question. like pretty you the question, refer about question. Thanks, exciting. lines with been answer

Eric Langlois

that awareness actually received been their had And still XXX% that for we for over needs. have up to nearing Sure. we've Thanks is matched that I'd from cases the the weeks mutation of the back done question, request. that original match response thing just we've of the the Matt. out done came and initiatives of major back is actually one rate of Majority requests XX an get response couple material most case we've year people excited is characterized those look reach mean to kind of that about it's to overwhelming last over customers say those those that in able fill specific last and XX% show we this the haven't months needs. Yes. customers. those to that They to them rate. results I those

we're But recent finding fulfill most these signals. So one avenues definitely projects. seeing of is people that are was that what the to not

for so we year, niche been buckets. people think the in specific have while, they're I some calendar filling at where a this are

been want and the that like program the services, by to consistent us to these companies offering the program a the that a part are But of, then has all of telling and rates, us offer that response up really out rates, interesting. companies the great in it's kind sequencing might reach the they open sequencing services do be to interest they'd to

But data, has days. case trying now that and we going, really for the point, has early we it the everything selected, positive the lined about for runs. all preorders the been really what get is were positive. started up we're and we've that doing direction In So the overwhelmingly things beginning, to and we're have your runs to of we hunting cancers been that we have selected, the we that profiles once

all that up are to it's match right just open to the tackling right So requests the trying now, now. about looking and actual for blocking people of

Matthew Hewitt

helpful. That's

Tracy Curley

[indiscernible] is deficit program that to after This market started Sorry. on in need. some a significant where the research fill this first we was January there

so deficit that our for to tailored to are us, research that and reaffirming that. this efforts indicated And current marketing that our really we see exciting program our

Matthew Hewitt

that I we That's I imagine and margin great. scale there especially the imagine you margins be but would And color any not specific, would maybe but profile some how and would about be ASPs the maybe -- thinking in the but on they're maybe on once those best -- your of could should realize I up, sequencing the those? to start portfolio, be helpful.

Tracy Curley

Yes, than Matt, our go are business. back, margins better core

Eric Langlois

has with collaborative no been Yes, able that's them and that of the kind part, been end. I customer value the are program share effort, We're is a at part to on material proposition to really to to little we've communicating that of us access back cost base to our to the agreeing our suppliers upfront. structure the most of truly with mean right? the interesting

a So really commercial partner, with good using feel collaboration sequencing a there. because partners, in pretty but that And we're then commercial we quality certainly, certainly we're getting the getting sense. it's we're value like

the market So to sell and overall, when market. we these samples

the they're improve Tracy we best going only have As of are margins over the said, to and some time. that

Matthew Hewitt

that you've you year. to still the and -- this flow get you on that initiatives end side expected Excellent. reduction track? both And implemented you some then cost neutral quarter, the that on of with call, the of that programs the cash to the implemented, new as well last some on year, as plan? that you've the Is this that services Is mentioned by new conference of still

Tracy Curley

should where earlier we're in that. about the been to we October, Yes, just October. comments finished do more doing position ourselves exactly the we that good needed accounting pleased have probably we really are really, But question, of looking we're for and yes, from end my through a be close that I to explicit -- that Matt.

flow that believe There So goals. I goals cut positioned revenue to very but and to revenue answer are give we coming neutral. we cash need be October. that well to to obviously through down, working are is those on the we get meet results expenses the But hard we're side, expense don't met, guidance, those and we're seeing for

Matthew Hewitt

work, on as on product streamlining back service the new the half great. lifting one and of it, the and and the the then weighted if quote some well of cost maybe heavy of that's to obviously, as last organization now the one lot This is I the That's characterize lot been side has more then of the sequencing. I'll next year, both launches a a but way back don't queue. know and in And day hop required -- with

look 'XX, your delivering on start going the to how addition required organization to launches? some of year? is year, about focus we still these some Next services? and new growth about to thinking driving As some fine-tuning new should more of to there be fiscal that's next Or we in product be

Tracy Curley

Yes.

growing be effectiveness. an and efficiencies organization So and and competencies core their always I assessing should that believe

we then dust okay, because still the lot sort got let see, and be bet to And a need we've X to had where begin to we'll of going find did there's do to of a do some just you So little now tweaking stuff. bit, things be improve. else and to

the of got definitely, year lead that XXXX especially also to going in half, And where investment in half need for the going improvements But we of so year, as technology about well. next still we're be. now growth, now it's our even we've the work is see build-out to that they though on, purposes, this on first revenue all some that operations marketplace some we're and blowing second platform

the believe, way in of the our our all generate areas for company dimes really it's and all value around, shareholders. ability I for operations to So

Operator

a free. at That's line have we Lieberman of the And instructions] coming [operator question Securities. further Revere James from

Unknown Analyst

the quickly. momentum really coming the in and that by such and you to and see incredible impressed investments results the focus I'm you're brought good so by there building

your add congratulate I on So want made. I you've that efforts, to the I'm narrative. to progress to confident and your just you extremely on want overall

Operator

again. once Thank you

seems There at to be time. questions this no further through coming Okay.

our closing So the comment. floor the hand back for I'll to speakers

Tracy Curley

I would the call like today's again and into including to your iSpecimen my all getting myself everyone joining wait morning. the for thank continued we interest for call that us for on apologies in and encounter also this

So really sorry about that.

you believe have and look forward that, with we see, growth is day. progress can a our and you great from maximizing With in We As opportunities, our strong for successfully the will which we are see operational to thank the updating efficiency progress. really marketplace. making strategy, business executing you, our strategy, that access we our value growth continued new our

Operator

now you. concludes the much Thank all for This you very conference. attending. Thank

You may line. now disconnect your

iSpecimen (ISPC) 2 Nov 232023 Q3 Earnings call transcript