BNR - Earnings call transcript Q4 2023 | Burning Rock Biotech Limited

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Operator

Good day, and thank you for standing by. Welcome to the Burning Rock Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. historical be intends, terminologies confident expectations plans, statements. Statements are can expects, as and are statements about that future, statements anticipates, beliefs, not forward-looking forward-looking statements. identified beliefs such by will, similar Burning These Rock's including and facts, estimates, target, and Such based factors, difficult unknown or risks, current and other upon of expectations and are current market many known statements conditions, that and beyond predict control. involve of are are all to which operating relate management's Burning and to which events uncertainties Rock's

information, could risks, actual those Forward-looking and required statements. except new ahead. undertake Please forward-looking statements involve like or a your over uncertainties now would any to in to Han. result other Burning under law. I from factors materially obligation that hand today, future does as the to conference go speaker not any any to cause differ of otherwise, Rock events Yusheng applicable such Mr. results update contained statements as

Yusheng Han

Thanks, Leo is today, our Burning have of you Joe also CEO Rock. CFO, the Gena. and Yusheng and online. And CTO, Zhang This Li Founder Han,

So very with investors. report annual glad the share financial our to

that let's we in So with several detection services. And MRD Page how Page to our to X, and expanded of biopharma market NGS how development to and to -- that early the to let's from X. started XXXX. evolved. turn we from started then auto We explains [indiscernible] turn And technology, we

year. also and efficiencies, deliver result -- competition. And want the gain second to margin, the margin. sales efficiency, in and all on towards with making makeup dedicated efficiency the expenses And is also increase productivity strategy improving G&A changes expenses we going want gross So the the driving the sales -- is to early deliver from driving with next to we're have profitable the market a our And we to macro cooling past driving sales first. And the reducing plan last industry the down, terms the to X we rational perhaps. improving in in target benefit of the We years, reducing environment profitability. capital -- the company R&D more gross we

thing we have a So do sales. we first the of is scale

on also, So And goods we'll delivered cutting the project, expenses suppliers. leverage also sales margin cutting that. and our reliance by improvement we the partnering and of cost with including marketing

The we multi clinical overhead the R&D thing third the is cancer, G&A cost as is terms fourth reducing sales lowering NPV base. how in carefully, are we about cooling also cut explains detection programs, still the such CDx a early complete And is major invested down. our and conservative reducing as expenses. new in efficiency. MRD way. Page the on X disciplined And very rate in counting and and we MCD but We fixed investment, also expenses burning driving of achieve

the And gradually that You point QX of we drove can of to number the sales highest the see in from expense 'XX, to the there, significantly we XX%. percentage to and reached down XXXX XX%. QX then of

goods revenue. So increase efficiency in our is sales our and gross that a for increased cost NGS lot. In of and the especially X, there go significant -- a of is the as We further, that cost will change, a expected profit oncology. XXXX significant industry, number expense percentage we a is Page down coming non-GAAP of

of goods. and the terms of shipment to So issues also other we continuously and replace cost bargaining with in suppliers

in major cut to can gross that we explained XXXX, XXXX. In fees will the reduction We G&A our also how the targeting see can the thing head rate And that as We count -- margin owner the think continues reduction a can And and I and to phase legal we Shanghai continue see we reduction of grow is with there's in XX.X% the office increase see is land other of a gross reduction XXXX. And I the third space. by costs. and expenses. margin from XXXX Page such we to closed well. XX.X% reduced the professional in in in So to part X, further spaces. office in office see that related as then services of the reduction the expect the

reduced see terms million. that XX RMB can of overall, around in So the expenses over of in XXXX, we G&A

Page to X, our please? So let's will to the XX, X Leo in Page and Page hand see, to chart Leo, Li Page explain CFO, I X from and -- numbers.

Jinxiang Li

what's Thank Yusheng, the the into that cash and by from the to us we X, translated what has operating taking supplement we've for through P&L profit is commercial that that through starting initiatives noncash. and break trying Sure. what R&D also down you, Page investments our and versus are in and the into lines. On taken aspect

reported start XXX add our negative profit X, operating RMB Page first R&D million. on with RMB XX our a We of So we expenses million. back of

at what's separate to in what's investment. versus is already commercial this stage the So

provision first, Then assets. major So noncash items. receivables And X we we take items take The and assets. of and are contract lastly, fixed depreciation share-based expenses. our our of out amortization the compensation, R&D

to these just to provisions. a RMB noncash and X actually business, commercial out So And on measure, quarter going illustrative X these expenses the we items are we we expect at million X, take forward. for and decrease on positive here, that get where excluding are XXXX. noncash fourth But the for R&D purposes, we of

position. profitability XXXX, costs, we improve as quarter to this X further we and fourth cash expect R&D and XXXX. Page we So head into talks about already our on that basis, are at noncash excluding the in excluding

the of compared outflow RMB the of a In in year So reduction RMB slide of RMB about XXX ended had we of quarterly with year a to each XXX million. cash on cash this year, XXXX, is this going XXXX. through balance calls. million is have the we million, a that end significant our been At outflow cash the XXX the of we of

So the did year for positive operating and a cash deliver described outflow has lot to XXXX. impact Yusheng reducing results on

still are forward, Going we reach investment to on operation selective going want we areas that profitability commercial half to keep the in expect of a very XXXX. the and there first few

an combined, X outflow a of range year factors these we XXXX. million million So a expect in in XXX RMB RMB XXX to

We expect year in to decrease the this XXXX. outflow further after

runway our So visibility have on cash good years. that basis, X at least very we on for

cash XX outflows, breaks cash X. Then show we're our operating continued and Page into profitability, that's on detail. progress to balance reducing Page So numbers more P&L here trying towards what ample by in

is Central RMB XXX line, aggregates in which Lab we decrease. looking first, million efforts had Central change our also the substantial different and is by but going industry top First, at Lab, from that This saw at away July active segments, starting in the a XXXX.

described lab, much that fourth a the we earnings for pretty call. central of So quarter our it's continuation trends on previous the

in expect we hospital greater forward. So and take to greater going share

their demand at compared even for the fourth to the we For adjustments much the And adjustment, described underlying And in robust that's or the the did line, adjustment, look quarter quarter, remains the roughly X% in negative to pretty XXXX. out adjustments, footnote. that flat in have fourth one-off we in if we detail in that take and the X if XXXX, quarter hospitals are stable. related fourth hospital one-off growth we in

it's to seeing with adjustments. not demand, on deterioration we're the underlying business mostly do one-off but So

the segment forward. of it Pharma line quarter. in Our grew in year going grew of the in well in grew expect quarter grew digits fourth XXXX, growth digits fourth the XX% double XXXX, double that It it very year and we continued and the for

number the to in what XXXX. think have improving cash of in outflow the our is note in seen going have year Now here, I not have of operating throughout the the improved on we described cash of we slide, operating taken time and result that and on finally, cash projects expenses, taken quarter-over-quarter, initiatives to significantly to through go so through that operating we previous side, have Yusheng detail. And outflows the I'm operating through them and walk that a flows

our remarks. prepared concludes So that

free please would the joining questions, out for to And reach any us. here call to you, feel everybody, us For today. Thank conclude that today.

Operator

participation. you conference your This for concludes call. today's Thank

You may now disconnect.

Burning Rock Biotech Limited (BNR) 29 Mar 242023 Q4 Earnings call transcript