AXDX - Earnings call transcript Q1 2021 | Accelerate Diagnostics, Inc.

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Operator

Good day, and welcome to the Accelerate Diagnostics First Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Laura Pierson of Accelerate Diagnostics. Please go ahead.

Laura Pierson

Securities is may share the Securities contain Section of it during information meaning Exchange begin, and XXA call XXXX this forward-looking the Act we of important of that to presented of Section XXXX. Before XXE of the Act statements within

Company's report that those are and are Form December Phillips. greater statements These cause reports statements SEC. made now in that could Forward-looking detail and during projections, President discussed and other subject the historical my to not XXXX, this about for statements in we are include call ended and our year to CEO, is annual are with uncertainties risks, facts. the to It factors future conference results on materially. actual our Jack that All the our file forward-looking other XX-K pleasure XXst, introduce differ

Jack Phillips

and consumable earnings XXXX customers. first call, our and Good magnitude on Thank through to areas the base, In first quarter, funnel grew gains in February these detailed of of our in welcome installed revenue the of March. Laura. we prospective results, January business, financial quarter will XXXX quarter effects of Pandemic global we against the and the discuss related afternoon, the first and you, focus revenues impacted quarter. the made impacts pandemic today's On review everyone progress call. our

position market new product XXXX expect current X.X open access advancing increasing susceptibility our establishing progress development committed adoption through geographies. are market to the launching new segments for of in extensions ID/AST And rapid to expansion as through solution, integrated to to Pheno We standard care. this ourselves and commitment testing and we of

results. our to it financial on details quarter, our would priorities to I against like the first over Steve hand quarter review Steve? progress additional these to in providing Before

Steve Reichling

and improved for offset quarter. capital for was SG&A Existing sales customer quarters respectively. $X.X surge prior to compensation non-cash utilization costs. Research partially year. current $X.X a and to decrease were compared million million This sales Selling, expense XXXX same the million the company's Jack you, period Utilization was compared ongoing $X margin was for highest March, due Cost first R&D stock-based XXXX driven our in first cost was were to benefits in stock-based quarter, which $X goods consumable expenses revenue, resulting hospitalizations. the XXXX the from by and XXXX. compensation The the excluding consumable $X.X stock-based $X.X the pandemic of to in sold million general of result history. compares in $X.X in respectively. month in cutting administrative excluding XX%. the XX% the was the study-related quarter revenue gross in cost $X.X the in in in This period million Non-cash external the This lower the efforts in of and of million and prior or million compensation and impacts of from in factors. instrument the decline compares in in gross of Non-cash lower same improved Thank in compensation February in were same $X.X expense and result $X.X million expense development costs million for efficiencies place first non-cash first million were to XX% was same related period January and The year-over-year quarters stock-based margin internal quarter increase million in during to in goods good expense costs, low ongoing the XXXX. the and pandemic and This growth period by we manufacturing sold put sales resulted margins was gross of the million, afternoon. other in $X.X Net XXXX that year. decrease XXXX. of driven $X from quarter. of in

excluding stock-based non-cash compensation $XX.X net Our expense. was loss million,

GAAP net loss a $XX.X cash cash million the $X.XX. flows investments net for quarter, was $XX.X with company Net the The million resulting the million. was loss quarter, first Our for of financing. per from in excluding quarter share and cash used $XX.X of ended

contributing of we quarter, equal first financing, tranches announced on in the During that insider three the December of we $XX.X transaction closed million.

our XXXX closed June. detail. will and the and remaining in it greater close Jack Jack? will now April, I first review tranche tranche second priorities in results in The quarter to to hand back

Jack Phillips

Steve. Thanks,

current to and Chinese XXXX X.X and are launch registration. Our PhenoPrep Pheno solution, AST AST priorities integrated increase our advanced adoption Pheno ID and of

Our solution a delivering is clinical to current susceptibility and and economic integrated broad of enthusiastic base growing customers. identification benefits

COVID-XX. However, hospital rate by will hospital and a of significant XXXX way the base it. hospitals and much in the the installed on this constrained, hospital has first through require and as to our process. pandemic. Increasing of been few Accordingly, signed beyond sales shift in insufficient penetration testing began slowed patient ability remained contracts intention A degree and focus XXXX of the prospective same was the access priorities improved impacting Physical were key customers new stakeholders to access our globally COVID quarter. treatment. to progress

parts vaccination discontinued headwind, hospitalizations customer we Since AST increase progress our customers both meetings most offering. this which EMEA, delayed our XXX US precursor Antimicrobial XXX evolving, US delivered activity Despite or declined with another a March, brought in five seen generating our signed across XX clinically the and to base new XX steady in brought geographical install In of product ID it's virtually on instruments securing in notable live new and as certain continue important is we an integrated always of customer have live system. in instruments believe revenue strategy go-live face-to-face, and implementing focus winning Europe, to go-live. business. resistance rates important pending to is to increased and engagement who new sites. increased customer quarter. Additionally, with the in increase contracts the additions and we These important instruments had already enhance clinically

of these product improve infections, customer first the bloodstream and wave rolling the we for the successfully Pheno upgraded base. now. performance end to is menu of had AST first XX% our quarter, Through enhancements, aims out which The of about expand

finally, a to our we progress to to and reportability, evolving updates resistance packaging test variability series the shipping new to eco-friendly and reduce storage Additionally, patterns, of drug address menu, including of enhancements and improve methods kits. algorithms site-to-site

new of using for our Lastly, refine clinical and we this build continue our strategy evidence body to to win data business.

outcomes not It's to observed of statistically serious for They cohort. is discharge Allegheny nor this But emergency enthusiastic of readmission XXX did such days that continues patients, published Pheno, first customer a only last the ability case from decrease for to-date. findings early stay effects for no month a using nearly of adverse by publish change a their in they important data. base of One discharges. department patient to less early rate, hasn't customers been use making. drive studied accumulated year growing decision studies the length Pheno who Our from significant three focus for these health

evaluate these multi-site The This this like for care X,XXX the multiple of continue. clinical registry customer across enrolled nearly quarter. rapid standard testing to has and rates driven rate customers new and Kidney Case Acute study study publications or reductions each study mortality We Injury outcomes in clinically patients making considerable day strengthen susceptibility new continues conducted. XX in with customer AKI. of including While to progress made our live

workflow a and our is or obtaining our existing for panel focus rapid already is with exclusive PhenoPrep MALDI-TOF future, Preparation resolve leading customers ID/AST a Initially, offering configuration PhenoPrep in Technology AST identification with delivers with secondary the adopt in configuration and identification. appropriate the prior MALDI The identification steps an and rapid and launch market testing hours, delivers agreement diagnostics. to the front-end MALDI results collaboration in benefits. an loads through XXXX through workflows. will testing. Pheno, workflow AST These the Pheno the use on the to existing identification Our of lab existing rapid our existing the sooner MALDI-TOF to antibiotic device, platform avenue segments accepts be used for automates PhenoPrep platform. result, to susceptibility opening a optimized Pheno the substantial result seven results. in configuration and System EMEA by identification on improvement runs Pheno AST deliver an U.S. new ID/AST day configured of an for our own current than the complement kit our consumable, In product current from system, time investments of method is Systems. could about test extensions typical Ascend which MALDI PhenoPrep be launch new test is for which test providing the regardless AST new for integrated

our and to Pheno are complete these addition expansion With this general our with importantly, is and our programs we These In under enhancements on In promising expansion particular, is on Pacific. EMEA, a and restructuring near focused China a highly large that Asia investment. population term the programs targeted capable X.X. market. also multi-sample government working a generation strategy product fall areas, focused a substance market set challenge, available to geographic healthcare several significant in expand year is two next our geographic platform extensions, on

gain us a size continuing to and our the are at multiple were sample and access ongoing learnings market that high against quarter first of various the to system. deliver generation as progress on configurations and Pheno fast this the continue across financial susceptibility Pheno X.X. In goals decade confident fraction of on accurate for hospitals expected clinical allow This We of across launch and incorporates size next and in progress, Based different year. technology our expansion and key important testing, summary, the our our to of a system will current higher launch put market. us This and system to will results prototype cost is we susceptibility regulatory market continuation of into design. X.X. results and increasingly its activities in strategy progress the the our development The trial rapid priorities achieve volume pace types. system,

and increasing meeting on our diagnostics. conditions optimistic body pandemic, testing high will sepsis addressed, among of are have post we resistance continue improving enthusiastic through that care. the growing our susceptibility to improve a and questions for others poised priority believe would will that to us XXXX that will increase in I lead these cautiously are avoidable costs spend evidence, execution market areas rapid disease investors@axdx.com. be call a to answer Should not globally healthcare of these of to be healthcare from base antimicrobial non-COVID infectious We questions worsen questions making of standard or to send would request welcome happy to follow now on against analysts. customers and positions strategy, the We you

Operator

from Blair. Our first William comes ahead. Andrew go Please with question Brackmann

Andrew Brackmann

taking guys. Good for question. afternoon. maybe you. picture, for Hi the a Thanks Jack, one big

in You've now been chair sort XX that for of about months. CEO

of of of sort pitches through in your the gone of and restructuring of So just of just pandemic, I versus now confidence. guys just sort the you talk you guess when in came broadly that business, the you it have sort in outside level can competence about that Thanks. initially level how

Jack Phillips

confident for clear improving on lots investment appreciate for question. utilizing the about as about very thanks about the year, it. we commercialization portfolios of standpoint, company, and a with Great, we're think the many Prior customers. Andrew. which the and Hi, at. tactical force the outcomes for direction strategy we've extremely of really data, all, pandemic to to clinical was standpoint and Certainly it where justify from but past greatly our included I pandemic, a the return business, been the new around things our the from in we're changed our sales

we continue a And We retooled lot live also for past we've as go on process. to strategic the we've believe that AST talked our Pheno advance shifted X.X. couple dividends business And real And PhenoPrep Pheno we're us for that's adoption on customers. so also a drive paying a about been picture bigger very core more our further how work also for on of doing MALDI then demonstrated about we our then and for direction we to quarters. in opportunity us, the rapid that's identification the clear standpoint, big great portfolio the that our totally over where with more to configuration market,

Albany impact from So body Medical Allegheny demonstrating significant Centre, and the to again, the of that value continues institutions. new evidence all financial over the of general, outcomes likes Pheno our had and come unique registry the in clinical out tremendously. number of of grow all, have a institutions, past our of five quarter papers We've all on health own

Accelerate. overall, to been up. progress. many solutions are to those year, many forward we're in of with future part well. but the optimistic and So open lockdown mode, and we institutions the rapid access, the a pandemic. provide there's optimistic getting access good and we resonating We're going strategy Pheno, the about US, we hampered Northern what with for many our tremendously are that and in the areas making good institutions new of – the continues work now past by today we and of We're at where regard And story the seeing lot the cities about move ID/AST, are states as quite of market on granted, the just the as hospitals very we've know, Yes, we're to still

Andrew Brackmann

that. question aside the into the that just you've as Perfect. direction. that and sort all pandemic, get me sort business in done my Obviously, same leads mentioned, moving to you here. guess Thanks of I of for right-size of a from lot next

hampered So comes the the sort all that XXXX, recognizing sort year together bit reasonable about to XXXX and I outlook here is by think right guess, growth? and still be to a this going and it from we that start of is think sort to of the you of where see inflection pandemic, as little

Jack Phillips

Andrew. Yeah,

know And the we yet. – we're to as like getting know go-lives penetration well. we on XXXX growing and opportunities very quite are the we And back going I of is good we're part middle said, very been pandemic got the see the that not year past we've access of we've yeah, more not half still, limited, So we're but we towards so. still access, optimistic I year, much the are that. and clear mean, and all get

at happening the is next end Pheno year. here at at launching items other looking looking mid AST the are PhenoPrep the And we're around launching that – year. the – of other – at end The of of this configuration end around still the we're year

and is hard in in launch XXXX. preparation are and are at we know XXXX, trajectory force certain time? we're your questions positioning those. of then mean, to continuing to today And we're very products on this I the of And, to did which the is other extremely so but kind you focused important in results business very, where working for still market. confident of you very get your that The have out to already on those we're any Andrew, segments XXXX, today deliver at Yeah, in sales the point, XXXX.

Operator

at time. Not this

So this you for today's concludes presentation. attending call. today's Thank

disconnect. now may You

Accelerate Diagnostics (AXDX) 7 May 212021 Q1 Earnings call transcript