ISPC - Earnings call transcript Q1 2024

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Operator

Good day, everyone, and welcome to iSpecimen's First Quarter 2024 Results Conference Call. [Operator Instructions] 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. Please go ahead.

Phil Carlson

operator. you, Thank and Call. everyone, iSpecimen's Quarter First Good welcome Conference XXXX morning, to With Curley, Senior is and call us today's on Tracy Operations. Officer; Leslie of Chief and Chief Hoyt, President our Vice Financial Officer Executive

December Words Before numerous of which beyond Risk we remind today's meaning XX-K conditions, which management to contains amended company, call statements. such the of XXE of Factors is company's identify forward-looking materially estimates amended, events. forth forward-looking of our Section Copies words the many like Section forward-looking the expressed filed ended concerning section from intends, the within in are may to are expects, These in you XXXX Securities of statements Exchange and differ implied Act control with for expressions intended those such that subject hopes, from may, certain statements year the as XXXX, XXXX www.sec.gov. set as results made I plans, begin, would to Securities the Act XXA of and of as SEC. including anticipates, at the projects, similar should, such future by believes, the of on website available of or are the XX, Actual the document statements. those this of SEC's variations

update or except or revisions to statements changes date these no by required as call, obligation law. of the The this company undertakes after

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

Tracy Curley

specific in Hoyt, customers, Operations, we Vice will in scale I today's over XXXX. for who will provide leveraging advancing business. success to researcher Senior XXXX, half turn of create and biospecimen process. second the joining for quarter thereby achievements our our with a specifically undertook supplier to we continued on initiatives are our the our update in these our iSpecimen about largely provide to On to and and runway call. initiatives for transform continuing the the President on how will In of Good the infrastructure to I morning, streamlined advance these operational interacts Leslie call, an first operational call which thank focused you of way growth procurement and value partners speak our then the enhancing

I quarter and the call will for first questions. Finally, for our financial review the results open

a in second capital and in Strategically to reducing As on areas strategy costs noted undertaken the financial quarterly reduction Compared fourth quarter revenue setting of earnings has half realigning stage technology to the we expenditures we for resulted opportunities, on to our XXXX success capabilities we our and in operational our growth spending by a and resources measured operational conference core burn. our XXXX, to disciplined in XX% the our our XX%. cash are reducing quarter first during focus strategically compensation of beyond. call, reduced ensure market long-term focus cost and our have by by XXXX key various we and

to improved $XXX,XXX million year compliance $X.X quarter rate were ago. fees onetime little these per with charges, associated which was quarter and from our $X.X franchise legal the Without we first in million been offering. over cash the ATM of which XXXX, used a burn where million tax month, for $X.X a onetime expenses, would addition, have In attributable the our or significantly approximately is consulting and of included events,

competitive in drive growth our to foundation marketplace business, strong Now position diligently opportunities. strengthen line network our uncovering increased to on and the scale have secured we a maximizing our focused and are online value potential of we that our additional top supplier

of amount Quotes ratio. Next-Day we quarter order our of reduces fourth to purchase time and from quote share Program, conversion opportunity the success our the of which XXXX, quote the In improve significantly to

had the impact it is the flow sales to our providing benefit program to their and has on successfully strengthening this research. advance Given scientific incredible our customers

with working as suppliers to this strongest it simply size expanding improving advance program better entire Next-Day with and Program, in the President quality role the network our the of effort the suppliers market. to of supplier in supplier engage Next-Day our highest Leslie offer goal creating Senior are the Program of has Quote many with played process, our in in our aligns that network We participate and throughout network our capability. developing This Hoyt, opposed diligently of in the the an reshaping quality Operations, the integral supplier to Vice XXXX. to Quote

Leslie like Leslie, please greater I delivering the in most returns to to have financial biospecimen for go with produce and the time the review how made process are turn reshaping of now we the achievements to sought first the over real the they iSpecimen. call biospecimen ahead. goal procurement in and quarter after operational would highly

Leslie Hoyt

Thank you, Tracy.

adapting made report quarter, demand. in our focusing to am we As the business today's first lean unnecessary to have deepen to continuing incredible over advancing recontracting operations with pleased model to are costs Tracy suppliers relationships mentioned, supplier network biospecimen quality progress cutting capable quantity. by increasing we on and our that To with and streamline a efficient that our of end, biospecimen I

initial both network strong supplier Quotes Next-Day seeing our and are results Program We initiatives. refresh from

Next-Day purchase compared Next-Day provided to quotes as remnant Quotes specimens as XX% quarter of qualified Quotes QX of first including Quote. orders QX well all Program and biobank the for continues all XX% In with to The originated lines as XXXX XX% Next-Day quarter-over-quarter. across The continues business, XX% grow Program, and collections orders all and XXXX, Quotes. of QX total percentage Next-Day Quotes, to XXXX. prospective in increase in XXXX of quotes as Next-Day in customers the to qualifying for

XX% purchase XXXX prospective from of quarter the XX% XXXX. fourth Overall, is for growth stronger sales Quote significant XXXX, XX%, Also, greater the orders. rate from Our Next-Day value quarter order business. Program our Next-Day XXXX. fueling that first XX% prospective Next-Day QX clearly of conversion Quotes value quotes, in in Next-Day growth of dollar converted conversion opportunities in Quotes metrics rate to Program which line highest the of Quotes by increased all Next-Day to of means fourth Program year-to-date is quarter of our compared Next-Day prospective the into growth. was demonstrate purchase as These the than In The an overall Quotes XXX% value Next-Day Quotes in dollars purchase of collections the Quotes sale. driving returned improving orders

refresh. network Higher

consistent lower and are Program, part over Quotes size the size our that focused we supplier suppliers, contracts suppliers the XXX providing of were growing network that not provider tied we specimen to terminating of represent with both supplier quality suppliers. in network, reduced manner or XXXX January supplier as terminated Next-Day strategically benefited supplier on our As current highest contracts a us our collaborating sites refresh, to reducing human of the from network the sites The our value the XXX and/or parties. quality XXX in of

resources. opportunities program, as supplier As embedded potential part with of we network additional see coordinator we to have our expand capability the evidence of program expansion identified supplier refresh

our more and better we the our of been new successfully to capabilities on supply breadth the those doing best them position, to types Next-Day biospecimen in discovery will orders, of before allowing an fewer capabilities, services efficiently us increasing end working how greatly identified inventory understand the the of are specimens suppliers manage, even customers. specimens these Quote have customers optimize their provide with capabilities have some remaining our added we offer enhance a with to closely and the our our to Program. With that to working competitors suppliers remaining suppliers, so quality so, in diligently in-depth existing of competitive with suppliers their and fulfilling is to including realignment Achieving The data. highest partner goal and the product We've contracts and we By their quote. can to can use cases, with to pricing the we goals renew collaborate marketplace. transfer begin with

key forward, is the we move the files component refresh of we network of number supplier monthly a inventory receive As suppliers. specialized and increasing initiative from

market allows fuel with Quote vastly This Program. sales our biospecimen enhanced to capabilities way medical In to is Receiving operations, Next-Day the well stronger existing the we serve collaborations due short, to choose grow improving data capable greater intended customers and specimens offering community allow automation and directly. suppliers to on to suppliers. inventory from our us are to

technological over back I Tracy will marketplace. the made iSpecimen the to call to discuss the advancements turn to now

Tracy Curley

fueled relied advancements. technology quickly on This The team's Program Thank we of is the organizational and the sales keen iSpecimen powered opportunities our accurately fueled Quotes has customer's the of Next-Day suppliers Leslie. model a proprietary success network our by kept by on and growth heavily efficiencies Despite global of staffing to last the technological ability by eye a year, to you, have over determine provided technology. inventories and capabilities and request. feasibility by our matchmaking changes

our on This discussed deliberate and intelligence operational and enhancing of the customer has benchmarks quotes preempt orders to in technology, teams proactive to emphasis conversion respond assisted sales, capacity amplified approach business performance. acumen of significantly for development markedly marketing, our new has demand. setting earlier, through Beyond site proprietary strategies our the improved to purchase

revenue enhancement I now would to to discussion like our turn the initiative.

have the the our and rollout Program, growth to a has sites, Our our of supplier These long-term coordinators. program. impacted over plans currently tied network Next-Day embedded due the them. key Quotes support coordinator of to each We sites our coordinators very embedded for to have remains been by have of refresh priority which program moved X at embedded strategic all growth

to refresh with is additional suppliers partnership coordinators our as sites on in supplier we goal in network Our place work program. embedded

Our remains sequencing driver. growth initiative cancer important longer-term an

have are paraffin-embedded inventory tumor access significant is having mutation characterized that to find research. Now difficult in potential and FFPE cancer these support significant created due tissues. fact the to extremely that value to cancer of hold to they formalin-fixed, There we biospecimens

a pipeline Through opportunities XX new from in new our year-end, quarter As mentioned confirmed million our new have pipeline internal we business due diligence, now approximately That totals we ongoing of established existing the fourth call $X.X across projects. had of at XX customers. and in we orders XXXX.

exact projects were of win stated resulted direct previously, not being not we in requested. had a outstanding that the the several As having found markers result

program the this accepted proposition, this Given value for customers, targeted to are still the will our working to continues marketing updates further as and provide we be we program. by and pricing plan well upgrade

our financial I will to turn results. now

a the XX, quarter from X,XXX ended count due the quarter specimen was For XX% XXXX. $XX ended of to months in the was the which caused XXXX for of million in from March first revenue by in specimen XXXX March effect XXXX. the the of XXXX specimen the revenue for ended the to per count compared was quarter XX, to XX, change in in March XX, specimens price to $X decrease million partially to offset ended The decrease per mix, specimens average X,XXX March quarter XXXX. in $XXX ended selling The increase specimen a specimen months March months specimens or specimen March primarily approximately in X XXXX, decrease per X,XXX approximately $XXX approximately X in the XX% per specimen or the XX, X ended by XX, $X.X

or decreased million XXXX. the for XX, approximately for months Cost to XXXX months from $X XX% million the X $XXX,XXX approximately $X.X X March of March revenue ended by XX, ended approximately

during the in the decrease XX% of number a accessioned quarter ended was XXXX. March specimens there XX, Although

quarter same XXXX. specimen quarter per the XXXX, $XXX year or to XX, per per $XXX by specimen XX% March specimen period, the per March increased $XX ended Over the from average ended the XX, specimen for for cost prior

of prior Technology amortization March the related in of of increased and $XX,XXX, X% $XX,XXX professional in approximately quarter $XX,XXX was expenses operating internally expenses software period general XX, offset approximately in year. XXXX, increase approximately by to the same $XXX,XXX increases related the decreases $XXX payroll $XX,XXX approximately headcount The of ended approximately and partially $XX,XXX. from to or approximately for developed for of and expenses by approximately $X,XXX, and fees were which

in the $XXX,XXX approximately to The the XX% Sales attributable decreases prior XXXX, expenses payroll approximately year. March in and of ended by primarily and by external $XX,XXX, for from of advertising which marketing and to approximately in expenses general increase were approximately to $XXX,XXX, of quarter for was or related sales $XX,XXX. operating XX, $XXX,XXX approximately partially promotion $XX,XXX the decrease expense related and period expenses approximately expenses decreased marketing marketing of $XXX,XXX offset same and an approximately

$XXX,XXX XXXX, professional to March The million $X.X approximately quarter in XX, was from to taxes $XXX,XXX, March increases ended and $XXX,XXX, partially approximately offset amortization expenses attributable General million of $X.X expense and approximately insurance $X,XXX. ended $XX,XXX and in administrative costs the were and utility approximately increased compensation which fees of of or approximately depreciation approximately expenses expenses by of approximately quarter approximately for XX% increase debt $XXX,XXX approximately XXXX. facility XX, bad $XX,XXX, $XX,XXX, and the of operating approximately decreases for of general and

had and XXXX. with $XXX,XXX XXXX, approximately December maturities and of a as approximately total approximately X million balance to of for $X.X X months $X available-for-sale of cash As combined XX, cash securities equivalents iSpecimen cash ranging March compared XX, of of from to a $X.X million million of

our franchise fees, use with compliance of attributable XXXX, of offering. to the was which onetime fees quarter For first and million consulting of million associated aftermarket $X.X legal cash charges, included $X.X tax and our

charges, As or over where $X.X a rate which for our I without improved onetime month, would ago. been these million $XXX,XXX burn year a little is from the we mentioned quarter were approximately earlier, significantly per have

or we as time March in shares also stock Also, to of an of to time through purposes. capital offering $X.X an agreement. and and seek with sources may on statement. entered earnings mentioned investments further through equity X, XXXX, issue common price fund registration for our into to may sell last We offering million up aftermarket our corporate we from shelf general aggregate call, other additional We public funding

monthly an of and quarter Reductions XX% operations same streamlining compensation when which approximately key period resources reduction XXXX, through months focus ended in first the in in market was in resulted our X costs prior compared rationalizing continuing XXXX in XXXX March XX, estimated the to opportunities. workforce to and on possible the the after of year, in

add network, position reduce our number projects improve customers our and to while Next-Day operations. and steps and financial we While Program, as additional in reduce long-term of continued revenue current just enhancement strategy increase to taken revenues and expenditures of discussed, to continuing the our ensure suppliers to have our funding manage suppliers to is Quotes our through

prepared concludes our remarks. This

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

Operator

question from Matt Hallum from [Operator Capital. Craig Instructions] Your first Hewitt comes

Matthew Hewitt

Next-Day with of kind remarkable accelerate kind will in Quotes. curious, up, just about, conversion How sustainable? the customers, increase Maybe as several how a more first as of we your I'm people progresses? add should is the think rate on growth embedded those especially or that year that you drive

Tracy Curley

to that. for on a thanks smile Mela? because Leslie really I'm I do that, over to bit excited to Matt, we face my believe have it's are about huge it talk we going little more about this. And turn sustainable. a

Leslie Hoyt

are conversations where to moving banks then better towards Program. our will they can to more them how our can all remnant and have our towards agree, Quote Matt, are we way provide sustainable and Quotes us. them Quotes more as each and more able business we will meet every program, data. their banks is directly. to nice planned supplier getting and Next-Day are we us X inventory. work all are and we and to I they inventory in Tracy absolutely files those We're the Those Next-Day continue working network look fronts Customers market where understand Next-Day be to to refresh specimens. is and data of on our remnant operate We are grow at you. with with And data through and to supplier ability

their entire whole perform you with sites their we and it's understand prospective supplier ability into trust On our capabilities and allow adequately. where little will, and do contracts, they And prospective to bit partnering program. understanding the those a what It's and if different. side, sites, we

and X last to so. added in months have to the that We X sites program, continue we'll do

sustainable business plan extremely forward. in yes, the going So

Tracy Curley

embedded coordinators helpful And prospective those be area. for us embedded coordinators in -- those sorry, a most will

Matthew Hewitt

your whatnot. samples? on remaining things of providing their the they capable Kind weren't fantastic. of Or supply that increase data That's Are how in to or or are some suppliers, access with to change of that prior the similarly, suppliers maybe does XXX able the sites? reduction

Tracy Curley

question. That's good a

questions, because were these suppliers, we and they the You having always have really we're the have conversations remaining we've good XXX we more finding are capabilities with answer been energized about plus that aware out excited is Matt. existing But than of.

are them it's we Leslie, And good. of right robust the a can than -- the while network, add I that our of size if we're are so to contracting you able maybe supplier that And expand existing to with of because those having more conversations bit more we're little now. capabilities these

Leslie Hoyt

And ability we supply types capabilities. because capabilities their in actually their renew process. in understand companies the able the say services be time their to and more XXX% across grown of relationship them is able reason breadth to them as their we with suppliers. and I company every on have the almost Tracy. -- with for and to understand of we're to pricing, been to and to through those have grow provide be now Yes. to used agree, specimens, and would our it's marketing less to that be different that focus different known suppliers access We we feasibility sales from time for case the understand have have We why our those

recontracting you will, and We are specimens, already with probably halfway of through this greater suppliers. have less supply process of a if

were projects supplier I'll representing they much weren't quality under we to able time us reason we that true efficient and They in with these is thing were working is really of weren't we that that supply suppliers were other on last working contracts the The way that the say nor expectations. is specimens terminated where that. deliver with an

recontracting contracts lost terminated the gained much lots So on and on process. not the

Matthew Hewitt

But supplier just back Are of started demand be queue. one flu the here helpful. front an to necessary and data? those you of I'll If samples to so, maybe And seeing have has work that samples. one, the been I'm on some if network hop capabilities then ramp of your would for quite opportunity on you? headlines And the curious great. that side obtaining a sort and bit up creates Any already in color hitting with you of types the bird last recently. their already That's purchasing

Tracy Curley

population we unfortunate and this flu, for our So specifically? any -- opportunities us. for but flu of We lot a know had or that that for are cost general for unfortunately bird know like always an us the for opportunity fortunately Leslie, year are do samples you

Leslie Hoyt

yet. I yet wins on I demand Tracy. agree, not have that. to with bird that right we'll not certainly and market from of and We're have the usual I but demand follow call. threat any different after heard up demand getting flu, us. But follow -- B A this the flu seen I we'll up on

Operator

[Operator Curley, show call queue no the like Instructions] at to Ms. turn I'd questions further I CEO, the to closing this for remarks. over in time. Tracy

Tracy Curley

everyone call will quarter advancements I'd the support. growth. our joining made on and for a this your like operational thank play today us our future for again continued believe We role to in significant

of We procurement biospecimen with business the and are large, rapidly at effectively by biospecimen connecting the more and suppliers changing landscape our industry researchers.

successful, rollout Program With of and Quotes our day. continued and that. long-term Next-Day about really the have excited proven that, we And this a look thank you, program. we you forward of with updating has to capabilities are Our great

Operator

participating. you for Thank concludes conference today's This call.

a disconnect. Have day. You may good now

iSpecimen (ISPC) 7 May 242024 Q1 Earnings call transcript