FLGT - Earnings call 4 2023 | Fulgent Genetics, Inc.

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

Operator

Greetings, and welcome to the Fulgent Genetics Fourth Quarter and Full Year 2023 Conference Call and Webcast. [Operator Instructions]. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded.

to Investor conference Relations like host, to now Solomon, Melanie for would turn over the your I Fulgent Genetics. ahead. go Please

Melanie Solomon

Thank to welcome Full Results morning, Fourth Call. Good Conference and Financial Year the Quarter XXXX you. Fulgent and

Executive On Chief Paul Chief Officer. Financial Hsieh, Perthuis, Kim, Brandon Officer; the and Ming call Commercial are Chief Officer;

the replay Investor of the after company's company's discussing financial concludes the available section The call call results is be www.fulgentgenetics.com. Investor Relations of A of the press release available this will on Relations the company's the on website, shortly section website.

and your statements. Management's answers prepared contain call on forward-looking remarks to questions today's

These forward-looking assumptions, incorrect. and to statements views be represent management's on current may prove based which estimates

uncertainties to and actual in may result, cause from forward-looking that differ changes discussed As forward-looking a statements risks, matters circumstances results described any statements. in in those the are to subject

update assumes on of or may reflect forward-looking today no to in events implied management's obligation different company future Listeners The not with actual that of expectations. in understanding to that statements as the predictions make be company's forward-looking remarks is results, statements in including should results to forward-looking the actual any what described and changes the any events, actual these materially today by future to statements. listen may or rely

subsequently which available Investor including year December XX-K the company's filings with ended reports, described some those the more Relations the Exchange from the risk the of factors of are and previously XXXX, the statements, company's forward-looking to that contained Securities discussions differ filed in review Please the website. Commission cause the the detailed discussions these and forward-looking on related including may results XX, statements for filed to in

has and Management's should principles measures Management but in with with prepared not States remarks, these as substitute investors in accordance useful accepted the not for prepared discussions financial non-GAAP for accordance measures or GAAP. measures generally in a various to accounting GAAP. believes earnings presented or prepared United financial earnings these it to they per may results the be contain of share, superior be because reasons, viewed financial company's including

the directly these reconciliation loss for and full EBITDA I'd including discussing With of financial calculates release loss and to information, results financial the that, quarter XXXX how share measures. to over turn or press loss, year see per its non-GAAP for the more of call like share and the earnings or description fourth or Please company's now and or most a earnings loss income adjusted company the comparable income measures per Ming. share, per GAAP the to financial

Ming Hsieh

will you, take and Brandon call Paul the you will today. conclude morning, our and start Then the and ended we fourth outlook with quarter December before thank the year the quarter, go-to-market comments XX, with our XXXX joining XXXX. Good for from updates some on Melanie. the questions. will financials I and product your fourth Thank review and

recognized the We million revenue. $X to COVID-XX collection test. million quarter Due successful $XX pleased results we total revenue of our built our in efforts, with are previously of on fourth with

will diagnostics which see our business, you we service will business refer As business. our one, now therapeutic reporting laboratory we as in X our XX-K, development clinical our and segments: in previously our second, are business;

of of diagnostic our by clinical service. technical called professional services renamed results now be have licensed physicians. better inclusion business laboratory to laboratory This interpretation We and represent will laboratory the

revenue Services. COVID-XX diagnostics the and total and by Fourth company core a reminder, Anatomic revenue the service $XX tests without laboratory Pathology precision momentum core from revenue from As of BioPharma revenue driven is million better-than-expected revenue. quarter the was in

with a from year year raising by the revenue million on in $X and impact full the core the After outperformed positive in guidance margins full XXXX, we in latest guidance earnings. twice rates

to good make progress on Fulgent with Development business, our Pharma. to Moving continuing are we Therapeutics

or active includes and and XX drug drugs. both to new cancer nanoencapsulation technology pharmacokinetic over novel designed issued therapeutic patent profile active and targeted applications Our for improve existing window patents therapeutic -- and platform the

shown Our lead promising results clinical drug in candidate, today. FID-XXX has trials

XXXX treatment the cancers head clinical on ampullary, head second will date include quarter. and Meeting, manageable be study been a Phase For neck, the trial ASCO numerous has neck safety Ib to and our in trial which abstract for cancer from pancreatic profile observed submitted results in of held preliminary with performed the Annual and

accepted we Our been early and neck quarter clinical second to the head and by in Phase the II protocol for FDA, year. enroll second patient line of expect treatment cancer of the this has the first

milestones the are in for more next and about patients excited reaching to FID-XXX bring the Pharma clinical this setting. We

the the and also FID-XXX, drug In addition, to delivery platform, same candidate, nanoencapsulated we very rapidly expect our advancing end using year. the an SN-XX, of by drug nano-drug are or IND or new second application investigational file

been SN-XX prodrug FDA colon cancer While irinotecan, has by for approved a treatment. the for

used components the safety solubility been delivery toxicity poor issues. platform to address potential its these not SN-XX Formulations have and developed due believe far We so in to drug has primarily challenges. active nano-drug successfully our

On than killing our technology technology bystander developing heterogeneous with could towards prove those killing that the cells effects. even ADCs R&D cancer the a also building conjugate next-generation upon platform clinically-proven antibody broader nanoparticle while front, potentially drug

low ADC could targeted dependent where existing have platform target be platform for to failed with and show targets many ADC particularly that ADCs, potentially applied to antigen is not expansion, new effectiveness. different Our

execute I'd a seen we strong your sort and in year during stakeholders We of the capitalizing past been partners for thank the which to look on forward and strategy. Overall, good XXXX employees, we our believe loyalty we've maintain balance year. strong and cash like a to with momentum have sheet our ahead.

Commercial to call fourth about the Brandon? Officer, turn quarter. Perthuis, Chief laboratory to during now I'll results business talk our our over service Brandon the

Brandon Perthuis

an the year-over-year. These year revenue at solid increase ending for million, Thank $XXX It any guidance, our you, record XXXX Ming. XX% exclude year our was exceeding testing overall million, revenue. of slightly shattering numbers a by $XX COVID-XX Fulgent, core

many weeks Diagnostics the in continues its Precision our outperforming content reflect rapid Beacon a will Diagnostics, well-received Diagnostics company Precision in main be the high million Screen. brightest. main shines XXXX, milestones to and the Expanded performed average. The level, to of hit to IVF very $XXX up was Beacon turnaround in We Carrier growth which approximately XXXX, Precision driver product to where a gene product our well technology business. on genes has new At I XXX space, proven contributing offering the be time momentarily. X on and flexibility

are difficult genes such informatics, reliable pseudogenes detection in in-house our homology. using pipelines, able or addition, rates deliver In developed databases to with high-sequence as genes we and

Our execution. disease as important Beacon compared making be mild fit [ in better partnerships. mostly up services continuing working mix Beacon we at market this few well of the as in standard shakeup of a launching well followed robust Panel. for new We focus BXB we with includes clients new time an the IVF is or recently Beacon announced Beacon a clients carriers an result it to for panels, R&D XXXX ago, And growth Expanded as that egg clinic. months driver see some Beacon Preconception as A to sales clinics in Preconception donors Carrier with and manifesting XXX panel. carrier screening on as additional Screening IVF additional the ]

the screening in and genetic newborn for XXX now new be cancers, Blood conditions which health families. actionable early exclusive options to offers its detection on offer genes world a hearing and cardiovascular global over vision screening with announced we blood partnership families, our with in Snapshot CooperSurgical, children where provides panels a fertility women's Registry metabolic loss. to information cell CBR including the disorders, loss leader focuses bank to therapies. Utilizing related testing Genetics platform, stem private to range or screens medication, other Snapshot Recently, of CBR, and diet newborn may Cord managed disorders, a Picture largest for disorders,

as a conditions included as has includes test. Snapshot twice many related conditions. actionable causes with Secondly, CBR negative, additional than immunodeficiency, screens these everything further for the and hearing results CBR rare diabetes. may more covering Portrait patient CBR XXX And and to if more over on Portrait CBR along the reduce conditions in the that likelihood genes Snapshot genes heart loss, identify neonatal epilepsy, of children the genes

includes Lastly, and component CBR for adverse X,XXX XXX Landscape screens medications. identifies children potential the than a for over conditions pharmacogenetic genes and X,XXX more to more than that reactions

Switching to AP.

our While hires, revenue, overall one-stop committed have physicians said, Anatomic seeing continue to growing recently layer and to some are on to plan footprint, of to sales business. are our Pathology we being mission is contributes the That critical to headwinds new commercial the and meaningfully business. in shop we expanded we a our for

operations, in to and investments in improve these beginning efficiency. off pay estimate We we In to making significant addition, are seeing XXXX. pathology AI late digital investments our

Previously, a we of services revenue. reported on breakout provided we pharma when

For renamed in for to clarity $X clinical organizations, related had million been breakout any pharma, to or revenue testing biotech, which classified XXXX. purposes, revenue previously have Precision BioPharma CRO of Services we approximately to of this research under Diagnostics include

tremendous XXXX very we fast Services, BioPharma Regarding pace. off momentum, exited XXXX and with took a at

of clients those larger biopharma this and way did altogether. issues to our either terminated back of some or affect been some clients. unrelated Fulgent, projects had X have have of However, our Unfortunately, pulled

capabilities than biopsy, ever technology multi-omic Services multi-omics for stronger liquid sequencing, impressive believe and we on single-cell biology today our special whole methylation BioPharma single-cell including sequencing, RNA in sequencing, whole exome, genome, tumor said, That rounding our capabilities are offering platform, an profiling, pathology.

who so like making much is and XXXX great success. to We'd relationships a existing for ones. energy new support focus employees dedicated of expand have to in thank all The Fulgent our on

We amazing have team. an

easier has Fulgent would but market, a clients throughout absolutely we if That a keeping now shifts and did, our to It's As have don't, to of important our certainly be have an updated one do amazing fast-paced XXXX. " investors focus magic team. year. to energy wand." We seems dynamic we we forward come said, it said, look to the XXXX and all pass and recently

Kim, over call our the Officer. Paul turn now I'll Financial Paul? Chief to

Paul Kim

fourth is year to revenue COVID-XX resulted primarily margin reserves Gross in which increase Revenue wind depreciation. and in on to our $X in of due of related exceeded from inventory Revenue and was our which million down in COVID-XX million compared the $XX guidance. testing year-over-year. in our totaled Brandon. year-over-year Core in slightly the fourth came the and $X to The guidance year, business tests insurance recognized collections of part of million Thanks, $XX XXXX. previously which $XX million, $XX of from including successful XX% equipment prior million QX, was million quarter COVID-XX the margin to gross accelerated billed grew the charges, QX totaled business not of XX%. quarter from current

quarter. of this noncash took market I Before turning expenses, our a compared explain of This charge resulted million. share an would price impairment impairment we incurred $XXX the operating our and a charge book quarter in to value We end. of onetime to to as associated decline equity like charge from capitalization, sustained goodwill

our that current market I company's believe do accepted impairment we reiterate not was have and it we encouraged not Brandon. and want future due to capitalization. the operations highly does position, the and note by remain It's we cash Ming goodwill as accounting discussed on the momentum see the to charge that ahead, impairment goodwill earlier generally will any with given affect impact to noncash principles, the charge important

decreased third bad Non-GAAP debt reserve due XXXX. $XX.X, $XX.X The testing percentage to quarter points the XX totaled Non-GAAP operating COVID-XX of fees. increased margin quarter and $XXX.X increase recognized, primarily revenue negative fourth the onetime sequentially from third were expenses lower million operating million XX.X%, quarter expenses of higher a operating million from XXXX. in to $XX.X in million in the GAAP legal

Adjusted expense, average million compensation EBITDA weighted excluding intangible XXXX. on was or loss to loss outstanding. goodwill income and for fourth the compared XX $X.X quarter On quarter $X.X non-GAAP million and a impairment was fourth $X.XX million the asset in amortization, basis shares quarter of million $XX.X the for share equity-based per

our fourth securities. We We $XXX the approximately the in cost ended our quarter $XX.X of of million cash sheet. active repurchased equivalents We announced $XX.XX repurchase quarter XXXX. fourth repurchase an XXXX. under XXX,XXX common program with and of stock balance in at shares the an during program share March were at to marketable cash, average approximately stock with the aggregate Turning of of price million

the a total our XX, available million $XXX.X stock future for December under repurchases XXXX, of program. remained of of As repurchase approximately common stock

company total without with Now moving laboratory our testing revenue from the services to starting XXXX, is on in but guiding to core COVID-XX for have We we'll may revenue. minimal outlook COVID-XX which XXXX, some be for testing. revenue, revenue

We from the expect Breaking from Precision total as Services, BioPharma revenue this year-over-year. guidance $XXX of and representing Diagnostics, Anatomic million expected $XXX $XX the core XXXX services, Diagnostics, growth rare the a revenues BioPharma XXXX. down continues Precision our On from Precision growth to and million with the for Pathology Pathology includes reproductive between in XXXX, company disease, revenue, BXB be be estimated and X% $XX highest Diagnostics, all approximately joint in million relationships follows: Anatomic for is million core venture oncology, our to labs clinical of Services. area remaining which China NGS neurogenetics,

As Brandon Beacon strength product in discussed, seen our we reproductive from have line. services

of be XXXX. major arrangements, quarter-to-quarter. variability there the lab Given and to Services certain in Both continue revenue to be timing BioPharma Pathology may Anatomic a contributor

XXXX. to are decline in However, these expecting compared as streams a both in we revenue XXXX

pricing is we are projects service, which sequencing for have pharmaceutical and lower been includes For we no There have impacted XXXX to have guidance. these the revenue our development Services, terminated pressure on that is back diagnostics, therapeutic sell revenue. anatomic a scaled pathology, businesses impacting partners significantly. and dependent business which BioPharma informed from anticipated by our have or include integrated rates from contract as which business

COVID-XX Turning and to compensation. stock-based revenue XXXX, in expected excluding margins

the expect us mid-XX% approach the target efficiencies gross the to We and see reaching improve range margins XX% non-GAAP year. of positioning take to our efforts to we by integration as effect, end the of of our

XX% our year. We of lower for margins further to quarters in minus non-GAAP operating invest business the we resources with margin ahead expect to operating approximately see grow the as

on remain supports profile. to that We platform technology and continue managing our and a long-term our believe strong focused spend margin foundational

cash million is burn of our We which expect about to business contemplated our EPS associated for guidance therapeutics year, our provided $XX and million $XX in cash this today.

year and per amortization of we non-GAAP full XX $X.XX provision share as of the excluding loss tax intangible the million, as assets for our to average approximately charges. utilizing share any onetime that and our compensation non-GAAP For XXXX be expect well count shareholders stock-based

cash. to on Moving

Our cash position remains strong.

as both We area. over operations. NGS our year expect cash operations, pathology, will as and square significant have well outlay we of foot to brand-new the as further in which build this facility our diagnostics the will neuropathology Dallas labs into out reach clinical This include state-of-the-art have million facility XX,XXX broaden our $XX move streamline and

cash, we ending $XXX outside business, Overall, approximately stock we repurchases securities. still investments through any our strength ordinary cash and in strategic good or expenditures and equivalents momentum ahead. any Excluding we see marketable course, with which organically other in acquisitions, anticipate XXXX see million of and core has grown

Thank you joining it questions. up you today. open call for for our now may Operator,

Operator

[Operator Instructions].

question David first the from Sandler. comes with of Westenberg Our line Piper

David Westenberg

in QX. job Good

of here. couple things So just a different

is mainly the anticipate you expanded So a fast your Is -- screening. let's just How still to would half that -- start carrier that with do or for look that force going kind impact thing at broader impact are, given anticipate working -- that expectations being order the into opportunity that ACOG of sales recommendation? at -- front year that IVF, revenue? of I in outside maybe in further of investments the catalyze think, the markets? to you just And that fact would

Brandon Perthuis

appreciate Thanks, that question. But we it to ACOG It's Brandon. on David. trending It's the see timing comment in policy I the changes. hard direction. of certainly,

for some in advocating We discussions those are policy statement. better and participating of

care it Doctors when practice, good of sometimes standard guidelines as area. carrier they expanded catch things right? is today that just and they look, happen. the that lagging realize are align when they up, screening But in treat So in and medical such

positive would guidelines have too perhaps don't guidelines much, like coverage. those on think some that. impact additional movement things change and around and reimbursements really those in just be tailwinds but positive any I adoption So would reimbursement

terms certainly addressing We Expanded area In believe in team ancillary is to needed to correct. those we've Beacon of today the investing of sort products you OB-GYN to and with there's before coming we Screening and mean, we clinics, broader that have want A the from can penetrate OB-GYN market. And do are we sales lot the the in some IVF market yet market, some it's into. our I and that really penetrate an expand Carrier Beacon of areas. and bundle development are parallel

So could to significantly that we to that portfolio think broader market. go market, sales in we once have address to ready we product the team invest

David Westenberg

Got it. That was a great answer.

respiratory are just you $X So think maybe Would mean, I mean, out, of deemphasizing COVID kind -- that the only just heart in already maybe flat with on areas million back I are you it just testing sense million exit testing. mean or I if in get I it. we guys $X you strategic -- revenue. COVID make QX. business in out disease of to of

Just talk about strategies around that.

Brandon Perthuis

Yes.

exited tiny. in and business. we on efforts purposes, result doing tests I testing a seeing of intents is past. run all For is mean the our amount we're revenue you're new collect The the we've that have the of to

a we We And revenue previously we that results our can. had tests dollar fight you're for So on that of team. seeing tenacious. have what run. collecting They're every management cycle phenomenal we is team

amount again, owed. revenue deemphasized I pretty collect completely we're the of testing, want that is on every said, new it's to new dollar like practically much the So X. I But we company. at mean,

David Westenberg

lot of a sense. Makes

my deployment. I about for want just talk to one, last quickly Just capital

like opportunity XXXX. to I'm in going XXXX? Is had market, that lot game that guessing themselves, with some exiting under Or are -- the the in mean, You repurchases maybe the a adjacent look going market at of particularly going companies kind you still et see some are from of to I share in the plan cetera? acquisitions, we're selling

Ming Hsieh

questions. the for David, you, Thank Yes.

looking available terms there opportunities for looking is the giving more will sense. business, But the be in are we're us profound a long-term broaden our which the area. the see technology that the also, us more additional testing channel evaluations more or or of to we're advanced they do in efficient we more distribution think and still, which companies, for And I plan. the in give make adding business market -- even

for I consolidator. we're there think and opportunity to in more at environment, looking definitely we're good now So a the current is a position be

Operator

Our Raymond of the comes next with Andrew Cooper from James. question line

Andrew Cooper

kind Maybe parts there's it around of real like moving. simply, moving sounds just first some

$X to I think down you from PDX million BioPharma said Services.

growth sort can can help expectation we sort that then on each in set XXXX? XQ, level And for so also apples-to-apples came So the have where an just in the maybe like just you basis what of in subsegment of XXXX? each into looks right

Paul Kim

Yes, sure.

Okay. comment Brandon, I'll decline to and give the color the and numbers, most on I'll momentum. it who over where first and see where can then we see growth turn amount or on we the the

million. the had Precision came coming million, the from million for $X million, came BioPharma COVID, Diagnostics, So $XX.X was $XX approximately Anatomic was and of revenues $XX.X fourth -- we Pathology from quarter, million was Services $X.X

of Precision $XXX.X BioPharma the For from had of million $XXX million Anatomic XXXX, Services balance revenues Diagnostics. $XX.X we million and Pathology, from from

We COVID. as on million also from $XX.X we revenues, had, come previously COVID discussed

revenues total the for or of $XXX.X which core was million, revenue $XXX COVID, million. XXXX So excluding was

guide $XXX does the we're follows categories. For X include in million doing as projected that the any for are COVID. The XXXX, that not revenue

is is Pathology is million. $XXX.X $XX.X BioPharma million Services $XX.X and Precision Anatomic For Diagnostics million.

you a can for significant you We Brandon, give had compare some projected behind a we as of we momentum and who versus color X had XXXX, the of it variability over when we're that can areas. decline anticipating a projected BioPharma into see Services, these Anatomic for for decline turn and each Diagnostics, to Precision those Pathology. in lot I'll see, XXXX slight categories So

Brandon Perthuis

a Those We little groups I really about Anatomic the had Yes, the the pressure it's clients the had some on been retirement. a practices But usually We've of there. enter laboratory, with own We've AP We really mix clients groups. reimbursement. acquired. certainly. in practices had that's little physician is bit bit mean We mention Pathology super on some side, joining of We've on did for other issues. side, side. But their things have it script. super AP a had a mix groups. been merged there be example. talked limited

really for that. mean, the need it's ordinary of out industry. However, sort I the of that said, nothing to outpace we And

our return it's find and sales build opportunities So to to goal AP to new team growth. a best-in-class

you're turnaround pathologist, I at looking quality we if think trained have the time, the division, connectivity. subspecialty the that

We have we that. and to to what win, it intend takes do

continue that invest become to digital to But and in area like in We operations. want our more and I mentioned, pathology AI we as efficient well.

new we intend do losses of some those forging to So client address by relationships. and finding

of centralized affecting side, the a pharma sort clients. of -- couple -- more bit it's a On issue a of with little a

it maybe to find projects. the and forecasting in or platform. can pharma It's sort area XX% financial it's Diagnostics. mentioned still with think boils of service that really growth clients, our that not in significant best we've we're any AP clients. We deeper types even pharma, mostly do winded to divisional think and to clients a in continue the I I this headwinds, the go is demand with Precision a just their is built. But XXXX. technology there goal also of related down believe for our expanded. that, down have leverage Services So very we their new We on and This few of BioPharma from products couple sized with And our where now but takeaway around stress drive the existing to And really headwinds the to services our related issues relationships Fulgent. growth some

Andrew Cooper

a part being little on AP. Maybe we on roll Okay. kind of Super, announcement of said, back business just at the kind the opportunity? the of Or broader industry, way a you the of that normal to contract helpful. post, first a lot that with logic changes able rates, bit move, to the little of changed contracts bit I just substantially? mentioning Brandon, of their like Fulgent quarters I I super sort pressure, across guess, of couple but go that. and headwind view think least little course was a deal some broader the think, you in bit nothing a was in dialing in being it business. strategic anything of you the of is this the lower large just part more If Appreciate

Brandon Perthuis

You at correct. across we've ability our pricing. a level well. It's what constraints forever. business, are macro of leverage of to organization. course these seen that contracts the Actually, that's are affect these Normal going sort on normal contract Nothing would quite

Paul Kim

think the that know these talking I the categories thing because they the is and we're seeing momentum really Precision power the Diagnostics. we're about from

take If a back, all and these we step you Diagnostics kind Precision are of organic did numbers. In for XXXX million. $XX.X

For business. million excess And organic for that $XXX.X in the million. XXXX, Precision anticipating million. Diagnostics of projected be a That's we're growth $XXX in part that is $XX.X the to XXXX, in over of XX%

So was is that momentum in anticipate that we momentum founded, And how full XXXX. where having the sequencing and XXXX, to were tremendous and company continue in which is constructed, NGS. we

Ming Hsieh

Yes.

both about of insurance business. But Brandon purchased growth carrier of we on -- cost-cutting we general, have think -- we insurance labor. our -- in and terms think Diagnostics starting process. the this I it to was in impressive not in pretty this and Precision those the our of talked because is we coverage strongly Paul's in depends been it the asset, January, AP, such screening in I the coverage And terms margins of implement comments, the should when fueled as terms that

the will AP of see improvement from operating You margins the business.

the structure areas technology, technology. we where lack the of of has in business and investment invested the AP is engine However, heavily one

really AP business. that's the of turnaround drive one Maybe the the see AI our in will areas the digital You innovation. future of that

we're but So us X try taking see to lot -- potential into in make innovation I to -- about it is area. business a for that that will we turn years, is of -- the see -- X technology around, us years the also

Andrew Cooper

Okay. Super last just helpful. one Maybe one. quick

perspective Oncology. update from beginning like you've little on fourth looks quarter trajectory the the more an if bit for of sort what what and what of a the there? Fulgent learned, rollout of happened new? in the And your anything love Would national Just

Brandon Perthuis

Thanks we've certainly. tremendous the recently, January Well, sort for momentum February. in Yes, some recently question. seen and as of

about we'll So we on be this more Oncology talking had in detail division. wins next significant But some Fulgent have maybe call. the the in

robust previously, tumor $X,XXX we've hematological of -- secured As we solid profile very our and those both our for assays, mentioned $X,XXX malignancy reimbursement multi-X north for profile.

the team. So yes, great momentum. sales Expanded

opportunity be tumor still our of run our small, quality we tissue. to things. QNS we're time, very, fantastic, layout, there. to very to is our just The report the terms we approach clients rate, but of is of good happy seem with pretty turnaround Some ability small which But process amounts in of think sort before walking our very

momentum, think So more yes, and the business we'll I has quarter, next be giving color.

Operator

Our comes next with of line Lu from Li UBS. the question

Lu Li

little So carrier I guess screening. a I wanted to touch on bit

mentioned stage a in think prepared shakeup [ remarks, I in you market the whole ].

into see Just And if opportunity? any wondering, can that share you you bake guide? do will give the like color why in of gain terms

Brandon Perthuis

different certainly clients for as space A we gaining from time benefited shake XXXX. during real one you shake are the share happening event. situation entirely. We It's gained up that of larger the up players in in We the and the question. from of well. market that significant but sort market Thank exiting similar

I So looking mentioned, think, clients as are I stability. for

well. has the do couple for Our It panels, residual product content, time, risk. custom our merge performing turnaround is right Beacon ability gene the reporting incredibly design right calculating to these

to it We have what win. takes

have been pretty events, whose by clients lab look lives partner, rank we a I them. with as high disrupted think new So these these for

time. XXXX, in real we're in living I'd say So

up funnel of with opportunities the carrier around sales screening. fill new seeing pipeline We and are sort

Lu Li

Got it. Appreciate it.

think guide? back I guidance. question upside Do to coming downside second you to the see your any or like potential

Paul Kim

to guide. the see always we upside Well,

$XXX raised And started million it $XXX last at million. first in and our remember, $XXX you year, about we at off came it twice. was it If core recently, just I'm revenue. and at talking raised We then guidance the We of million.

out be Then that for lot general anticipated there. more and a stock better. the also the of back million was $XX I somewhat consensus XXXX think We about cash we anticipated. meaningful would the But what cash that than was buying including burn worth ending that's

also than be reserved the our in balance have the the XXXX, right we we million. guidance our So to cash to right approximate $XXX better and raise reserve

Lu Li

Okay.

I think I missed some of the part.

line but clear, not heard final off-line great. we on think Have definitely can I anything? guess saw this. when Any would color the the I should on anything? like we then that is the you And be go we that LDT? Any see question. update

Brandon Perthuis

asking developed Are potential about the laboratory you of FDA's oversight tests?

Lu Li

Yes.

Brandon Perthuis

Yes.

We seen too seen seen. we've what much haven't probably you've

write-ups jurisdictional to the do FDA been -- they that up oversight warming that the idea of jurisdictional Some have of test. have developed published, the laboratory

test, will what it lot need important to going going Look, the to to right do. not of that patients' from through react could do their limit going put high-risk to they'll do. we and industry we they're really been There's testing approach get pushback that. do accordingly, to leaders it access is to process they're that I ultimately, they're mean, this do right? we'll approved, If what but genetic And a

We quality in have the place. systems

that have get approved. infrastructure, us, maybe to of some be the these We things ability other of have could labs the to and don't some a benefit actually. Not the --

they do a we way in If operate to takes as exercise do process, focus that whichever they it on environment. think through we way, XXX(k) list discretion, new jurisdictional want they go, high-risk So we'll to give will LDTs. us to Either putting continue still what if test of that then perhaps they a perform to I have us that. continue

Operator

call our session you That this your concludes concludes participation. today. you. interest We question-and-answer thank for and Thank and our

disconnect lines. your now may You

Fulgent Genetics (FLGT) 28 Feb 242023 Q4 Earnings call transcript