FLGT - Earnings call transcript Q1 2022

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Operator

Good day and welcome to the Q1 2022 Fulgent Genetics Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Nicole Borsje. Please go ahead, ma’am.

Nicole Borsje

Thanks. to call. Genetics, welcome financial quarter and conference results afternoon the first Fulgent XXXX Good

concludes. call will are Weiss, company's of the Please the contain call The is Chief questions replay and to prove On the and Investor available access today audio Perthuis, website, available company's audio represent Financial be Paul Executive of the Brandon shortly this Investor call its of incorrect. prepared Officer; forward-looking fulgentgenetics.com. be your Kim, visit Relations section press forward-looking views statements assumptions, Officer; in release answers management's company's An the Dr. financial Commercial which the the Larry Chief will after These Chief discussing on Officer; today's to Ming to estimates Medical may call website statements. Officer. Hsieh, results current remarks based Chief replay. Management's and section Relations on

the the a per useful accordance measures to most quarter company's year Management company's discussing or the a to with on income XXXX prepared in accordance Exchange it the today financial of of for like the results is turn income forward-looking discussions risk to income how may for any to predictions share comparable measures in financial to, these in statements in in to earnings prepared from differ prepared those forward-looking any by the may more actual and in GAAP. the IR with Accepted Commission, may of materially with in reflect United of these and the per events, the GAAP. and not forward-looking rely share, XXXX, it cause these presented With obligation results reasons, Generally release of in future or is per changes that event, with the are actual management's has financial calculates and GAAP what should to including statements. cause available review the including As XX-K share, a Accounting circumstances forward-looking filed including information, of to the from financial update results statements, changes related statements. fourth future which any may directly company today assumes not remarks, substitute actual contain statements non-GAAP understanding States the The forward-looking over factors to risks, contained or filings that previously December of income superior including various description Securities some or described but I'd website. company's for expectations. make detailed may the remarks not the Please described more these the for, should see discussions forward-looking company's they result, viewed forward-looking these the financial of as Listeners earnings be in company to now measures they as statements on for to Please be Ming. call non-GAAP results described actual including different statements listen Principles measures. reconciliation its should subject those the investors uncertainties, and ended and Company's and results actual implied be press financial discussions differ that Management's results XX, believes to in because and the discussed no that, matters to

Ming Hsieh

as today had quarter the Then before provide strategic Chief announcements. from Larry to and some financial update terms quarter Dr. I year discuss market as Officer, good Thank joining call results, in an products XXXX thank Perthuis, Weiss you turn of some very for over And CSI We discuss first results. the go-to start much, Nicole. you Good to Commercial very well call a our updates. to afternoon. our the strategy. to exciting our will our will Brandon cover highlights expansion

a grown results versus Finally, which financial quarter, guidance last XXXX. million environment Paul quarter in demand the and strong of for and to fourth code again XX% meaningfully second in compared first core our will year have fourth is quarter business first XX% will quarter. highlight $XX delivered to the outlook for the of was tests core which cover COVID $XXX XXXX. But quarter cover to in COVID last in X.X more quarter X.X other But the down Though a We've core our the our million detail. at and the between revenue total in have fourth in of million, level, our at in the seen quarter. up look result quarter million. Revenue the revenue. Paul, compared year-over-year XX% up breakdown of the million our COVID both approximately down and testing, the Taking business exceeded again first results, scenes fluctuating we XX% totaled the $XXX from year. detail. in about volatility The direct

to Southern closed today. input we same the of strategic we $XXX.X most update, new quarter quarter. Diagnostics, we're $X.XX in We And this per our profitability strong drive the that We the continue flow the the had which cash which in year most the to expectations. acquisition At Inform results fourth start lab in a opening operating recently, exceeded of GAAP and strong with last million share generated time, week. that and announced EPS our announced about just excited in California, oncology

cool COVID-XX demand continued As off. for environment

as including day acquisition growing expansion of multiple Brandon strategy one. in on entry our infrastructure including is they footprint, of benefits liquid commercial to built a acquisition, liver while busier newly more today than full topline our a to complementary this compelling this drive much test. the Fulgent are meaningful investment menu, returns informed our will launched us that our There services, point highly long-term seamless Sales will our business. sell sustainable believe is our gives the ever detail. diagnostics But strategic on a for and support testing street can working drive test core existing created meaningful around seen number suite term. have biopsy team cover largest core for cleanser, Our initiatives and for genetic and to nationwide force, testing this growth aggregation over of Fulgent opportunities long business adding We've which

gave are This cancer We like our West to testing Fulgent to for executives, CSI, become our on into Fulgent, also success relatively lab notable testing announcements, A we lean, The in a success group day, our on opening on clients are Coast. oversee base. within long-term sustainable our has an a is highlight helped second to drive to the this this our the in new element key forward folks to core oncology to forward leaders, These our and oncology customer bring steps growth of of extremely experienced Weiss, us of executing that opportunity execution. capabilities instrumental every lab. of coast west occurred is but knowledgeable strategy been lab new with always strategy vision I capabilities integration who lab genetic build of that and would this who Southern operation team who initiative [indiscernible], in California. testing to cause Dr. business. scaling seen of look the CSI we have

to effective and grow highly While accomplish quarters, it group remains of do. a to the team set cohesive recent are up to able they in has leaders who continued what

on landscape arise. I future technology opportunities at to rapid science will to of point scaling look testing have of in team market number of they acquisition notable were our to Our our the of in of growing call extremely on the look ahead our our Brandon? Fulgent. advantage that and remain the the our successfully about during COVID of it example, pandemic Labs as to drive integration at integration excited take bright near is opportunities We'll The growth. uniform additional CSI strategy. very determination year the whether future. aimed to these call for level team. contribute able businesses ability Perthuis, to attractive, in over should could the The recognize to come proof Chief merger high I M&A capitalized acquisition diagnostics, turn Officer. more over execute the outsized is capitalize over of term am and volatility reason Commercial Brandon now I a our that ahead. have We that growth of prime well the healthcare another the long of we even was opportunities our execute and core continue in confidence a effectively

Brandon Perthuis

talk Thanks, Ming, things of we lot great have to today. a about

our of another diligent founded in saw service COVID-XX grown expertise of United of pleased was key opening comprehensiveness of has the to laboratories and one remain Hematopathology, news Inform wave solution offerings, quarter, that of national of which large DX of in one expertise our the acquisition Diagnostics. cancer areas specialty. our our the a acquisition build core of and brings the largest the of of Starting becoming States, to lab with their in shop vision their exciting Inform and neuro first upon in Inform healthcare in Diagnostics. pathology, complement new experience, the quality, the to diagnostics the our a Inform and announce stop anatomic professional staff. XXXX, outpatient we to pathology efforts for drove be thanks rigor part While we're dedication business. of cash And wide their recently the and range in generation, we further pathology,

overall in teams pathology expand the anatomical dermatology, and which individual have these team throughout than on to an sales offer urology, business, spread Looking The the pathologist feature. market. and seasoned breast. we to immediate to anatomical penetrate the selling of is subspecialty sales, more pathology state at further areas trained a Each has managers sales key contributes approximately opportunity XX% United products differentiator staff, see this States, and anatomic pathology GUIDANCE, no we XX

which test. one point liver cross has the ability us for for example, our call biopsy GI sell, areas focal new clients, of the more In addition, DX a are liquid to exciting for XXX cancer over active is Inform

hepatologist on to us sales speak the While call in specialized the have managers GI, door. to and team can we through built sales existing momentarily, relationships will I have Informed front these which DX walk a

relationships the to cancer division Inform to client sales existing daily also DX their work. the surgical could economically per existing with at launching be in can synergistic cross opportunities in launch we And their Other GU UTI looking pickups be and addition, for will included In we'll which breath it and to pathology examples. speed clients. are tem other our to hereditary and send testing molecular CSI These increase clients. customer, clients with include out other anatomical utilize tests has services, that which clients sold our services, tests just revenue some at makes well new be better as as serve products Fulgent account our those sense, and

care side, our started addition expanding this a for four current oncology heme Inform we coverage of CSI more, the services an fit launch hiring synergy states. and hires collectively Coast, covered West has the other over area will perfect new job And in of of time heme hem/onc that turnaround we obtaining Informed such is sales with and layered DX lives. currently contracting. very intention And the MRD continue believe on as our has three managed this already done of impressive additional These contracts On DX of competitive. our represent contracts reps. strengthen on new acquisition menu most network the million with top panels. XXX strategy. is heme is in around we've to And

the plus sales new our redesigned the have be to we significant year, that liver to Diagnostics with fulgent team this launching to late believe Switching stronger plus We to unique strategy. CSI able payers and our progress offering biopsy new amount Inform obtain test in last for new trial website, publication an of cancer. for test understandable. improve combined by building screen shows includes the forward. execution the the accounts. and XX for time, the continued and is the market patients on tests. patient This awareness. potential addition, relationships hope transform our test team. liver have data use to leading new enthusiasm clinical proposition moving excellent The core release a and value Launching with sales over a see our laboratory liquid their drive but creates we and relationships enthusiasm represents significant. multi we client we excited of In and medicine to to the that momentum contracts Considering Since entity existing additional how outcomes. diagnose out in is Changing state are it's we consumer go progress We provide XX has the accounts cancer and this subspecialties top build the care. leaders time to of manage take to made to practiced this with way believe onboarding early short and

one over grow Another in the off now to And will one specifically though organic United forward comprehensive most customer tests. and offering States. testing a Bolden core of not customer is area we pediatric has the to across allowed increase of large for business, largest there if awareness testing. the moving build pediatric has done XXXX national over are many phenotypes menus to our with testing, we a genetic base, This focus still conditions these work this continue us provider XX,XXX of only to be be believe built tests, to base. for

on testing. an and Over We as the pediatric deployed be team we quality focusing sequencing, been volume neurological will inside who panels. the we've believe for sequencing disease to to help genome accounts test rare these such months, the in additional tat recent tests, grow menu exome higher drive built have and volume sales by

on we base the educating serve breadth together, we clients will diagnostic this bring CSI services. time customer connecting and within Over contracts. with network managed our of them we these the as next full in form And can months, several better over be care

over our we right teams have on independently are said the sub call individuals in ramp way, to testing health, are genetic our team time in just five On Medical able to and full Diagnostics steps in we've of Inform States. only calls. leverage maximize United anatomical across and execute XX and to Weiss. have support. beginning over one hepatology, will story, team recent reproductive now the big to in M&A, of at still the investment CSI. and would a Larry strategy oncology, continue just teams anatomical turn as quarters, said, Larry? now there Dr. do synergies the and to on coming currently on our up largest believe platforms common been additional and which come expanded pathology our and That technology we big initiatives. into functioning post we efficiency. few AI And we other is We and we're COVID-XX the investments business across I'll are transform a updated specialties, the look the growth, These front, organic their We of significant our forward have our services very the in investments investors our a segmented sales pathology, a clear now to Officer, strategic to we are In our the that But take providers cross train way. at organization. progress, Fulgent growth pediatric of previous integrate right appreciate price, We and beginning we over biopharma. at include see to our Chief set years. the and keeping to

Larry Weiss

Thanks, Brandon.

we offering strong year we a as way assessments, our regional testing client to base laboratory goal to core a strategy of As client with Alpharetta, to resources on to August of executed strategic Georgia. CSIs in as diagnostic you art supplement services model purchase test diagnostic state in on laboratory Monte to the of our walls, surgical our already for of next from Starting hematopathology the will the services major a other. cytometry, know, of CSI is in coast be California, laboratories Using growth as both build Fulgent pleased am oncologist to for laboratory to generation been empty pathologist art molecular immunohistochemistry I flow been is complementary as well state the has somatic menu meaningful testing. source a a gene in oncology and using tumor single announce validation and El able literally offerings. pathology a cytogenetics, and labs in last strictly very long-term, build driving sustainable sequencing, each on base, have diagnostic we the area west an a two a focus not a and efforts as to CSI CSI business, CLIA that was with offer which approved, duplicative FISH

including As our and tumors both generation both orientation. new The for suite lob new and actively for has El sequencing tests assessment a for Georgia a approval, large of R&D including hematology single will analysis activities. includes customer solid a we about validating as liquid specimens next submitting lab as biopsy to in feet able to tests addition testing, tumor pathologist our dry additional CSIs pathologist are and FISH cytometry, of testing reimbursement tissue DX NGS offer Fulgent’s and testing capabilities residual as menu. laboratory XX,XXX new lab Inform Currently while detection in germline The minimal lab test have Oncologist Hematologist wet gene lab square current in will immunohistochemistry well disease. symmetric NGS cytogenetics space, space also of supplement areas, client Monte flow base, and of well for as

for guidelines cancer breast germline colon important pancreatic and many included pediatric and others cancer already in patients. is testing many an cancer, consensus As cancer, aside in cancer, is

their by Paul to their as the late well all year. the Officer, disease Our and as patients will call goal the to turn Paul? a end meaningful to at over families stages and Kim. Financial revenue become of of our contributor I early is now to serve Chief cancer

Paul Kim

create million first $XXX million in testing million. first totaled QX in COVID since to $XXX to the quarter in tasks quarter of Thanks demand The Larry. our in compared $X.X for and of wave original decline Billable of compared due guidance year. the testing getting tremendous year-over-year million Omicron in early Well to quarter quarter. million dynamics, the the last exceeding first $XXX Revenue the the again approximately $X.X COVID totaled was of XXXX. a quarter

more off levels. guidance tapered QX, Now that to expectations. the million roughly of $XX in has The our million, from our also which March that's our much COVID-XX through down million revenue year. testing Breaking further and from end over returned normalized since the of and $XXX which XX% came exceeded revenue core totaled business grew $XX exceeded year

revenue our includes our our and contributions a As CSI, business COVID JV, CDC. it from reminder, contribution NGS from from excludes core the testing China NGS

integration to CSIs for expected a and opportunities, of demand ongoing testing growth post COVID and expanding work unpredictable, the take joint revenue international volatile executing stance operations. of continue As executing the commercialization diagnostics, additional testing. from on we and remain informed focused We capabilities, which COVID growing conservative reach on COVID remains on include investment our opportunities, partnership on of the footprint our opportunities, on

million was than of fourth we $XX, Our in last slightly first in the $XXX saw the quarter ASP year. quarter lower

$XX due year XX.X%, sequentially. Cost Our tests up XX XXX your testing in quarter of the inventory up points as was relatively for reserves and than some quarters points was down the basis year-over-year last shoring and $XX, COVID of quarter spikes. has the as basis Gross higher stable write to ASP margin and the for slightly the to last fourth end. excess remained lower fluctuating in lower in few off

quarter the $XX.X from up operating were quarter, expenses fourth in to last million year. $XX.X operating expenses, expenses in Non-GAAP year. operating GAAP up now first from million million $XX.X total of Turning last totaled the $XX million

in services heightened organization Our across M&A ongoing our operating our expenses with and increased investments activity. primarily due fees associated to strategic headcount

accounts quarter. the provision the for first due revenues credit high receivable Additional to and losses the in

increased margin basis to operating non-GAAP Our XX.X%. sequentially XXX points

core outperformance. And the able XXXX. average revenue in even million to the business $XXX.X $XXX.X believe shares the diluted drive based us investments as excluding consistent with Ultimately, significant million a to [indiscernible] equity $XXX.X quarter Our growth amortization, drive our diluted profitability being are very margins in the leverage people from weighted and we for compensation and remains remain structure said, quarter expense future demonstrate non-GAAP XX.X operating $X.XX of or on near compared That we the these operating a share we outstanding. EBITDA expense intangible basis lean was our will for enabling business. to M&A. investments quarter in Adjusted outside first term. through the first per On asset was and million, income pleased

cash balance and cash the approximately in $X.X the further cash over during of Turning securities. balance. to operations $XXX.X quarter, million We quarter to sheet. first from equivalents We generated the ended adding marketable with cash, billion our

on Now continues our demand outlook, off. to moving testing starting taper revenues with for as COVID to COVID

full declines COVID $XXX see in testing expect quarter. for in least expectations we inclusive remain revenue the year $XXX the to in our from revenues of first the our COVID for we the million at We did year million ongoing expect revenue COVID unchanged for

in spikes been hard and revenue million COVID admit volatile QX has Let’s testing predict, breaks $XX $XX into QX. and from out to roughly and Clearly QX, million each, outbreaks.

expectations So prudent revenue our for COVID we remain contribution. with

contributions which core April will XX. on closed the revenue guidance, as from informed Moving transaction diagnostics to our on include

have continued strong see organic to We our business. growth across

Diagnostics Inform and incremental growth. will CSI drive While

revenues total a week million little be only in year. $XXX we will better representing What a ago. approximately Inform XX% for than be of provided revenues, is in revenues million $XXX $XXX and the we announcement slightly million in during core core the $XXX Diagnostic acquisition expect will year-over-year, approximately of of COVID XXXX, million growth over guidance which the expect revenue We the

profitability of will standpoint, remain on on momentum our expect focused expect drive testing with to operating as see on said, recent ahead in strategy long-term From a integrate and and continued be in to investing COVID acquisition. sustainable remained our drive to there we We volatility the further in invest focused business margins meaningful our executing business. That we core growth. resources we pressure quarters being our

dramatic conservative platform COVID we we margins supports decline profile addition, during a Long-term, testing COVID margin growth experienced our discretion will and to continue operating operating spending and the in margins of to high lower to a In result crisis. will the strong demand technology relative drive leverage. our record in our with manage foundational assumption

For expect million. tax the $X shareholders, year assets of versus and non-GAAP share now approximately XX% guidance full our compensation of XXXX, our We utilizing to rate share. intangible be income count for amortization excluding $XX.X per of $X stock-based and per previous share

business due Inform build of our as integration the oncology margins also decreases and from at lab, sales well out the West ramp acquisition While as basis, lower associated our in as Diagnostics quarters. anticipating investments of the of on such gross coming COVID organic adjusted accretive standalone Coast and mix testing expenses standpoint, aggressive is with transaction, the a costs in heightened an operating we're EBITDA to

XX% For of quarter mentioned, million. we breaks in the core $XX least down And testing. representing second approximately revenues This of as total of COVID XXXX $XX growth at $XXX revenues expect I million, we specifically, year-over-year. million expect into

you Investor today. our just you is up slides discussed. our I in on call for open which for now Relations Operator updated a detailed website, it joining shows questions. posted Our our breakdown can guidance Thank

Operator

ahead. go And our DeGeeter. line take we'll Kevin Instructions] from first [Operator question Please the of

is now open. Your line

Kevin DeGeeter

the integration update. kind end in continued as appreciate guys. then build. think reps, the regard of number the comprehensive with build XXXX, priority? terms update about is substantial commercial at Thanks infrastructure process about really we we questions, two you're that out through balance being the you Sales or maturing, the great, should and sort force of kind talk Maybe is towards that, year, just headcount how of can for really of just either about we of should target, XXXX beyond team just of the And to look Hey, the XX think and of

Brandon Perthuis

sales right top is Diagnostics It’s ongoing across integration and the Inform Kevin. in meaningful thanks priority of increases Brandon, now. a our and acquisitions The Yes, was headcount CSI, organization.

much them integrate get a get So very, into team has posing while that the the grown able priority expansion, one, And some M&A now culture. markets, rapid to in we system, have into a number on said of very tremendous. enter both as a platforms, sheer of in them been doing larger new than before. organic TAM well them The That ever as call way, common for sales is fashion. through we've these we've Fulgent we’re had big points the

selling But typical sales don't think grown I So think opportunities. team's we've to like the to of continue said, we team, so for sales leveraging speak, the you’re opportunity cross to I methodology that but big The a is, to have TAM way, the I have us tremendous fashion. increase there's now coming right together to long-term, it's grow these a smart going to But we had it's do one. side the use team, that. optimizing in productivity out responsibly. Fulgent those We'll it Kevin. always serve work continue And, clients, when looking together forward existing to to

Ming Hsieh

current and are comments continue a to as tracking announcements organization? us. make our products where financial new Yes, record the for lot we of receive We foreign with a the quarter. during lot to capabilities, will And and of inbound a sales calls service the we join adding the to the new Brendan's as time this talents as payments

Kevin DeGeeter

the meaningful for near though, term thanks Think, I mean, is I what there, be what a traction, question progress recurring update think there? predicts, metric for Liver. metric most new my to great, commercial I ultimate, Helio really we I you that, accounts, appreciate the guess is company choose? called No, disclosing on to the sort but out were I of should XX to around track if look and able

Brandon Perthuis

way Kevin, coalition's long right. practiced question, good change as very in the mentioned no liver the coalition practice for space the time, especially the we're hepatology the has and in in way there's a cancer, been trying That's a medicine, I medicine in call, been to change

protocols So they procedures. their have and

improvement over big so test have That the a process, doesn't the their it is make hear to that know, a we that easier it they change to thought standard Now of care. we much lot. have,

So on we've of right And fact new XX we're what kind the tracking of that's we're proud accounts. boarded that now.

rate. I by was of far, going to volume I'd think know us next near volume term like be the track of utility. to meaning, quarter would cancer of see the And data detected and that undiagnosed sort in so liver myth begin quarters, the sort early maybe positivity more few have we importantly, care. in We standard

volume. stage the we we track for ultrasound want rate utility tracking the hepatocellular carcinoma. want in test think to myth of So forward, by positivity to early I And going the track

Ming Hsieh

Kevin comment. centers, adding is the the the and This cancer recognize leading that to diagnosis recognize is physicians, this test, do do the position we're a provide they in But on they better good screenings. that Brandon the oncology

So terms interested even of though physicians this from in the we were see full the biopsy in of that we they also liquid test, traction but got trade gene.

and for selections. to they So gave will were products for explore stop provide physicians good and their the one service point entry our shopping a it services, products and us offerings, the test this

Kevin DeGeeter

get you, you. Thank great. queue. I'll back Ming. Thank into That's

Operator

question next from go our David Please the Westenberg. ahead. We'll line take of

open. now is line Your

David Westenberg

some for thanks good on And congrats the Hi, here. a and on. question. going lot there's earnings numbers Questions

$X it impressive. but last this, missed the on which I in if sorry added two you the weeks, is like pretty just So looks guide, million

you difference? the you of you heating maybe anticipated? more up know, kind know business, through you you maybe last it find us Did revenue Or is On business inform can walk saw two that in the just you is than core of trends weeks? doing the

Brandon Perthuis

hire we little we Diagnostics. notice guidance quarter outperformance Because anticipated of had XX week. in Inform strength Omicron the reason on, to numbers taking core isn't the within actual for our do quarter, has that for of The bit was we the was guided the raised first million. a course everything we it that why nothing $XX about you of our revenues in we do business thank during even even the overall going so with Yes, that a the million do, that came would and north we

in contribution the business, within core comfortable $XXX we seeing we're year. Inform core at that in momentum million feel from least Dx, to revenues of the very combine you with this our achieving addition If

David Westenberg

Paul, Got for I another one it appreciate. you. And got

commentary ASPs in like what mean, I of prior testing Can you gross wouldn't in think maybe looking mean, us margins impacts? But I can implied I any on us the subsequent QX quarters? decrease through I you the impact as and talk terms QX your just are to mentioned a maybe with some walk gross think margin of we're around us through there. COVID lights, You kind down a in at do guidance. being going COVID quantitatively relative walk walk new of

Paul Kim

Sure.

growth So operating as as well I'll about talk margins.

virus So conservative about going we quite made a do. very can assumption because testing to demand, the predict is what frankly, nobody COVID

COVID also anticipating the our in off one the oncology announced we're So drastic operations business. drop we're core part terms thing other making opening QX, a into in example. of QX, that about testing mix also of lab, our and from of demand, a investing we just greater And QX we're doing or assumptions coming we're facility, that the is is heavily our

making and efficiency just do marketing, see that by have sales marketing. the of you're behind expenses everything investments size going in the and to sales in commentaries higher. making about which equal, as talked amount organization, and of be the anticipating has so hiring, and to and or within gross gross to operating proportionately R&D leverage going have the the and going be at, a Where it. be we're you less, of looking we we being Brandon the assumptions about position making performance of we're all sales will mix if that leverage That's the the much higher as we our depending in address increase market. of be far of you're made some to XX% much with conservative the all which So the we Ming because is stock also spending, of historical us our these believe really heavy foundation we're capital have, acquisitions in things margins shareholder revenues, margins. when highest operating making having our having scale, COVID a people. now, technology we the and wider wide slightly XX%, across value. Because gross doing on foundation investments in that And a can levels the quarter foundational program, investments basically, capabilities, at but in then the changes, and our these and we we're combine a between we departments enhance anticipate that making aggressive believe an because we're M&A. enhanced expenses, talked set the technology Because margins, We of company. that operating we're heavy facilities, will I technology, investments, buyback the that people investments Also, gives believe margins,

David Westenberg

on here my you mentioned stock stock of kind maybe anticipate making M&A. move this thank dollars billion date a of I actually, good buybacks. an you only a here recognizing program? from about million inform how And to, really to near we that's very it? deployment an question in mean, on M&A, talk much. know, that, capital Got a the doing of on timing No, you think was I last buyback to mean, $XXX some do in there maybe is you expiration And terms acquisition diagnostics you out about Can year? cash? the it do segue you where,

Paul Kim

want we unique market options set be the and few believe make able way, a we in flexibility to us the certain prospects you if have in coming and the aligning spaces. that hire take the to our of M&A the valuations gives themselves that philosophy as to they're who how to invest to commentaries, We penetrate these to gives us what opened shareholder us, a paying for and turn it to by a assets about I'll we enhancing business to Ming And opportunity marketplace at look the all pay. pacing that to, talk the over for landscape, willing I'll we're of can the It to the business. attention people value. been all address have

approach usage I'll think engaging Thank and getting about some about busier cash, that targets. we standpoint, from talk it's success can investments the the team our seeing So over we're David, you, than going of to of actually that the more excited we're the ever and synergies be an the Thank turn question. Paul. the our and who philosophy behind it to these But you, for M&A Ming, organically.

further from the to penetrate competing, current than attractive our us focus the and with I think, for the already distinct national Science other much the this existing and to competitors area, and of want also cumulative elevate do give areas tremendous teams, market a I discussion, becomes us the pathology. digital but will infrastructure, for existing in a a even adjacent we insurance the believe in team that benefit AI technology leader my the the I as new premium focus technology, will paragraph, Using this in on differentiator on forefront using power sales team Technology, the bigger the science to shareholders. much, our and for Fulgent us be the the has that AI payers and the were the better technology, level we generator a both in the have margins the platform, fight, during addition

David Westenberg

a you, Thank quarter. great you, Ming. Paul. Thank job the on Have

Paul Kim

Thank you, Dave.

Operator

are time, you Thank no your today's there for [Operator questions. participation. this further Instructions] call. At This concludes

You may now disconnect.

Fulgent Genetics (FLGT) 3 May 222022 Q1 Earnings call transcript