ICAD - Earnings call transcript Q2 2021

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Operator

Good day, and welcome to the iCAD, Inc.'s Second-Quarter 2021 Earnings Call. This conference is being recorded. At this time, I'd like to turn the conference over to Mr. Jeremy Feffer with LifeSci Advisors. Please go ahead, sir.

Jeremy Feffer

good and Anna, you, afternoon, everyone. Thank for you participating in call. today's Thank

from the XXXX. three Joining Stacey Klein, chairman officer. Stevens, XX are and Michael and ended iCAD financial me for afternoon, Carter, of Earlier and six iCAD June Charles chief this financial chief results announced president; executive months officer;

iCAD. that and conference management contain refer of that forward-looking Before we the view to would like future by would I the of caution, view comments and may and information to management they measures. involve certain performance call risks the Management these uncertainties note for begin, company. non-GAAP believes I made -- reflects regarding meaningful that operating operations during financial the way this also measures statements, provide the investors results

conference call events as or information iCAD circumstances Mike? after the reflect contains With this is turn date find accurate obligation Michael without said, Forms a events encourage that release. call. earnings measures Furthermore, that to with this the the to Exchange our of the only that pleasure risk Klein. no results over undertakes specific GAAP from described forward-looking Securities to the the to of filings broadcast, August content differ any call may update of in XX-K, I end the factors of to cause reconciliation statements. those statements or company's conference of date it's limitation, to actual and at XX-Q including You and XXXX. the non-GAAP which this time-sensitive identify live X, revise my you materially review of to or can the Commission,

Michael Klein

a aspects afternoon, move to conditions snapshot QX. and highlighting brief as operating well Jeremy, provide we of of as you, begin by everyone. several current like and the performance, second-quarter as business iCAD's key good into Thank I'd

second-quarter As revenue million. X.X iCAD's was presented in our total earnings release,

second-quarter several timing over some longer-cycle XXXX negatively increase than began of sales the close the We by deals total accounts. longer enterprise XX% second XXXX, expected July. of was impacted large quarter these in impacted a was this of While to revenue which cycles,

be actively While we moment cycle have addition To seeking the enterprise assessment be increase iCAD's continue July longer-cycle and and and detection solution important our commercial these sale sales was of for close longer-enterprise are how little competition, to of a in our to QX not personnel, deals evidence go-to-market customers successful deals. our that to clear, And It of, which enterprise deals the we AI strategy several deals will are component of and stated, allocated see were slippage risk detail average meaningful month the and well-qualified these evolving the didn't to purchase. of a capturing addressable spending a to enterprise will that and pipeline, dollars as we some is and secure these efficiently them. of makeup worth budgeted infrastructure, lost size. anticipate deal the larger in market continue of QX

as to decision-makers, now, enterprise are enterprise the We'll essential economic, and title information that outcomes In quality, large more CIO. a We even triad decisions linkage unique Their the to diverse recent the tracking healthcare technology has stakeholders; have customers. workflow and, represent it a customers as These are with on months. technical this of segment are of procurement typically of number geographically uniformity to consistency, of officer. clinical, chief or accounts. and measurable ROIs become and prominent been driven emergence often typically chief large care; of some, a among customer productivity enhancing by unique are overall refer latter in commitment or

understand in AI-centric, the emergence across similar and that superiority, and, decision all informed yields, of a highly to in of deals, CIO final upstream helpful of a a more us moderately advantages it to and This software knowledgeable of process between with new decision-makers our CIO difference often cycle. AI us importantly, economic that language, and value customer and solution. and has performance can allows additive a an and enterprise example. or algorithmically title healthcare ProFound to in point, just CIO provides extended The illustrate While our engage offering. broad us And the clinically presents to deal one represent AI validated the the nuances inclusion speak productivity call it's of sales a however, category discussions, enterprise even receptive, the iCAD. clear allows iCAD's The and proposition advantage based common the

that the stakeholders. officer constituents chief enterprise reasons to receptivity and new of all IT are by the encouraged only One but risk of or patient and the for clinical us we their emergence and not C-level important our offering, is to customer information it's high

an can sites, to and screening scheduled to allows two protocols look frequency will point patients unique offering breast patient risk than to priority and result risk years customers of XD will risk providers call new is one The in assigned assessment be quarter. our cancer. to very that with found, spectrum unique to personal for more in regimens, clinicians, be patients. screening cancers Enterprise level today, more risk the released determine then higher payers earlier announce and offering, we this The ahead Our of patients excited low-risk and healthcare improvement patient from with with across patients. are a be intervention, economics

cases Cancer only risk release the one promote or eye with on this mammography. We discernible cancers problematic risk. offering the October identify significantly experience to as the on both at even Breast for is to It XD risk that breast AI in provides intend offering Month and this [indiscernible]. be It and to worth ability is based years September unique detectable align market Awareness to a in fall. iCAD with have curated repeating for look-into-the-future We the XD software with carefully AI in that before two looks only vendor our the naked the to of offering is XD sites assessment may XD

Now, moving therapy to our on business.

QX continue pleased the revenue XXX% service We segment, revenues both performance Total and Year-over-year a by from as while increased doubling last X product to XX% therapy in with service represents revenue million XXXX, QX of to areas. year. revenue revenue compared this product increased of be from XXXX. QX of over

growth this and full surge will a timing additional which for due business highlight by that encouraging -- recurring an follow-up a revenue half well of QX detail the its has due controller glioblastoma. the influenced payer coverage, majority factors, as continued as volume several with business being was minutes, into driven sales treatment in of in QX. therapy on regulatory the Stacey first of by nine few reimbursement, products increased sale indicator of dermatology of ahead. the in look installations, were the for is we high of majority in in in recurring to For changes. as The installations our by neurosurgery our were in sales, in heavily the of emergence commercial provide are to Xoft the XXXX launch The new our Xoft QX XX% including revenues of product derived positive lead controllers shifts

the anticipate the add of variant that in Delta we impact dramatic cases, COVID patterns. number on in me minimal our of increase Let spite order

mammo it to math. down and simple sites, clinicians, For screening patients, comes

Delta that strongly XX As we agree disease clinical variant-related healthcare all into resultant and exceeds the society and/or of delays Month head sites, and hospitalization, screening and rolling vastly risk mortality of breast professionals, COVID incidence backlog, probability severity, and the rates. cancer

I the pandemic just and With would now more long-term competency knowledge essential. call doing advanced spending that has will of to COVID tools more than and be for already three cancers delays within managerial with QX a such, continue our a with will be we the greater of occurrence, our to during continuing appropriately three enhanced is technology emerge and I'd ending impacts leadership. to This ourselves catch-up of even particularly repertoire. like All this and the cash as of manage million As balancing productivity prudent our yield our in and however, like lead this to screening, patients, announce mention, the ever, key ability and under to core position maximizing new use so, part cancer debt and prudently that COVID cash. enhancing high-risk is integral commercial team. paid members approach strong techniques one could orientation. detrimental hard-coded an iCAD iCAD. commercial Not and refined cost-effectiveness to accelerating off, more of Productivity while XX see to all continuing our pandemic.

at highly him Charlie thrilled Xoft are for CFO momentum months while as three our and run characteristics, and highlighted Carter, I'd the lumpy first very on for will experience finances, makes predictable in seasoned of both time these to Xoft past has commercial this our taking senior Jeff our team. operational serve CFO. operations iCAD's sales -- and as and with we four commercialization interim has also is in experience, public level The was previously successfully a our now a exposure at demonstrating highest with to fit unique and, consistent commercial executive new as full-time company ones in Jeff announce large Jeff's and chief private sales as at post prior acumen. who, particularly responsible after Sirek with good Charlie our Xoft quarters CFO, enterprise-like particularly like generated have our and now board officer. on him of growth. the positions, account is

Testa productivity expediently dynamics, building as while an for and officer. bolstering transformation of quarter and has innovative company the pleased our in processes better supporting our of scalable, to of We appointment well-defined, equipped we executing date, ourselves adoption. into experience in our his announce high people role are with to see also the Brian their he high organizations outcomes edge octane and [indiscernible] played transient as tenure unique, commercial capabilities chief game culture. plan. has a in after phase our In commercial in extensive Brian high-impact of efficient, next essential the also

team. such of improving to to as prudent of his Our of This it us expenses, new allow continually officially joining clear the the with of trajectory. proven sales release congratulations I Charlie to track from success Charlie, turn success, on team, continue continued innovations take the core financials. hard-coded will by Charlie? with records all risk. to over like XD added the combined commercial now call management led please for here. operational And review individuals our

Charles Carter

financial our the thank the forward business. look for of Good three and you, everyone, June that, team of iCAD I'll the now I'm nice and summarize the XX to join XXXX. Mike, for growth to results introduction. afternoon, supporting excited continued the ended months With

increase the XXXX of COVID-XX revenue. the quarter over X.X the due a product a Second-quarter driven the and XXX% in revenues in million supplies million increase of controller or of of a an second increase in and XX% XX%, million service second of second were by to to total of driven and revenue XX% quarter in XXXX X.X an XXXX, increase service second minimal increase quarter by of were Detection XXXX. second revenue. million, XX% as revenues in were therapy XXX% of product XXXX, quarter Therapy the quarter X.X X.X in as compared XXXX, second XXXX, XX% revenues increase X.X were revenue in in over million, quarter a the detection an sales increase of

mentioned, being by enterprise sales the detection capitalize our Mike able to the product opportunity anticipate but are in future. on pleased As not we revenues

X.X was gross XXXX profit million, for the the a sales million therapy of profit. percentage basis, quarter as gross X.X basis, X.X sales higher margins XXXX, revenue lower was expense sales anticipated second to detection second or yield last given second the a a were XX% gross quarter In a we run quarter dollar the the quarter of On decrease compared The but from therapy second percentage call as in of is to the in due second Total of revenues. the quarter million, with of second Moving changing compared sales pure XXXX. currently XX% of million of mix. second XXXX. QX of for to percentage line sales, to XX% profit quarter revenues million, performance. as of increase percentage This for on was rate or XXXX and XXXX, On of as the for total were operating X.X a of on higher than expenses discussed is XXXX quarter in our revenue our have X.X XXXX.

QX. increases the X% and anticipate rate a in moderating anticipated and at and overall while expense resultant we than lower approach revenue to correspondingly support managed As to spending running expense the percentage to expenses XX% operating revenue past, burn in QX. in cash and are be committed growth rate between disciplined This a will of expenses

loss as a adjusted Non-GAAP for of Moving $X.XX an This the or XXXX as and million. which X.X net a EBITDA settlement our on, EBITDA share, adjustments compared X.X the million, or second represented per X.X million for product $X.XX GAAP our driven revenues debt adjusted or million, the second-quarter line. million, XXXX of metric second-quarter quarter by the XXXX decades-old adjusted compared per loss X.X abandoned was of Invivo reflects for $X.XX The operating net to million, is loss per diluted of expenses. of decline of or by loss second for of the a the net the decline quarter loss relative second-quarter XXXX. $X.XX a compared per diluted adjusted share, XXXX non-GAAP was loss QX to million quarter net X.X to relating of second Non-GAAP non-GAAP QX IP loss to of retiring X.X XXXX share. for to X.X of to share, claim cost was

the While share the net loss per also the share loss adjusted outstanding associated but non-GAAP reflects count. higher higher

Moving the balance onto sheet.

had and cash equivalents million, of XX, cash of XXXX. million XX, XXXX, cash equivalents XX.X cash XX.X As of to December June compared at company the and

well a our in over than to with XX.X X.X million. like customers. of no no operations. to to have transition any to with concludes is I'd an The our beyond greater and of burn million accounts XXXX XX, the balance there Overall, this and preserve on are Of million XX minimize debt We from receivable. cash element disciplined increased One sheet continue executing comment strategy. and Cautious, to other strong XXXX cash well-positioned on all is will days spending company through balances the cash-positive perception position AR December extremely us operations Stacey. to amounts. of capital of growth presentation. now allow Stacey? past like the turn sustain to balance noncollectability the This the risk would of has financial the larger nine highlights due call balance, to validated our pay of current the more nine I X.X with of XX million represents customers representing balance. overdue, intent to

Stacey Stevens

Thank you, thrilled, to you have and too, on the team, everyone. Charlie. afternoon, I'm good

to and saw down support business. With technologies, well-positioned of we sides remainder cycle some pleased revenue than ahead in our the therapy half by and look as enterprise we portfolio our balanced and for QX expected body market technologies growing we report in XXXX. the our unique to opportunities, success to exciting and new detection remain as clinical value longer we is impact we second emerging for I'm the several ahead some that performance on continued our the of of next-generation a studies ongoing optimistic opportunities, we of sales evidence successes offers are the believe Although continues toward confident are both pipeline, continued of across there look year. the of including products coming

by begin latest our Let's AI highlighting of the advancement, company's ProFound progress Risk.

reported algorithm I we of XD. that and data call, validation earnings last the On the the finalizing for were collection risk

sites. wanted access We several to provide and for luminary early also KOLs

the Risk launch personalized mark deliver the based U.S.-based and breast training Furthermore, to for clinical a the on despite cases September results the validation, and and successfully appropriate pleased and superior XD of of ProFound we available lead to both we The overall. restrictions far significant for are timeframe. world's the milestone be are when will family models the XD will of that estimating product key Risk version the XD supplemental track of for risk within iCAD is for it are showing technology of is AI image-based for even biopsies, and pandemic, AI physical for utilization support anxiety believe which tool for already the decrease decision to We costs traditional risk to input XD cancer imaging history. which mammography. images, as collected announce this short-term will more commercially women, system performance XD better the compared to We to ProFound using predominantly first algorithm less on

to addition sites Florida. to KOL every reminder for me visit women's our customer of it our one solution, our we site only of I AI. team join extremely much strong at with a the iCAD to flagship in on recently we was a are In do day advance AI truly focus sales in visit ProFound go ProFound did the Risk, had a what our how prospective opportunity makes but Not about well to difference continuing lives.

a prospective a robust and it ProFound period, value ProFound ProFound this pandemic marketing cases demonstrated unique missed patients by proposition home saved impact post remind well that diagnosis that during mammogram. is the served who our and showing women particularly all for delayed campaign. clinicians, of been moved. we launched AI this, awareness enterprise by many it is elevate was their customer the of AI KOL, overlooked these cancers To is I touched were have like where not personally value technology, a world-renowned prospective imager, the lives. subtle or by if It on breast really customer knowing offers were were or AI. but the and cancer AI to these would have Our and Not our patients' equally These been only otherwise ProFound lives our possibly would recovery recently normal moments women sent was with of us cases having dismissed where

San with people to AI. trend, patients States the surround more this of and emerging of light the need sound who campaign patients blanketed be need become clinicians, vaccinated, In our As a screened, massive United are still The of for Chronicle, launched Tribune, dealing both This an solutions backlog picked customers potential with highlights content campaign blitz The outlets, which including across digital was media than advanced directed this coverage. we ProFound Los like The nearly a and positive off a more marketing at million readers in audience article and Chicago Times, these Gate. Angeles up with kicked XXX XXX a reached digital of media Francisco total papers. which Houston

potentially Additionally, Michigan. we and in These CEO launched reaching of across NBC, first-ever the XX a many Regional and featuring major iCAD's XXX media CBS U.S., Hicks, This Dr. involved media markets. nearly audience aired segments of interviews, recently of satellite tour, including event XXX media affiliates Imaging ABC, million. Medical Randy an the total live times

incredible them then and team directing Our a and it leveraged about our clinicians, coverage targeted educating campaign them this strategic technology broadcast to and at email the placements further with offers. online value key

the level the received approval recently had faster XX% Mark FDA an Version this in on sensitivity PowerLook AI clearance X.X, while next-generation new benefits, to enhanced last a and including we performance received approximately CE improvement the ProFound Since then, month. for XX% high last platform. clinical processing we up technology On industry-leading specificity mentioned call, maintaining performance offers which

the the third and -- improved generation XX%. with product EU-focused Fuji of XD approval Also clearance the Hologic up have for an our systems. with now for the HD also to specificity of We with

road be an been to release to deep direct ProFound support the product clearances deep will several second is at paving in PowerLook regulatory Altogether, and Germany. network Saudi this is France new Korea give and Radiologie take teams. am to restrictions, has release, for globally mammography These broader ProFound the in scheduled platform access renewed solution, The added Additionally, Theater We a a agile This In hospitals. releases has rep both in begun XD density reference COVID of FDA and Hologic new us power in include be centers improved AI These algorithm. clearances and demonstrations R&D six product accompanied product and market, clinics is reduction market going take August. sheer large and from and meantime, agility approval opened of which will leading be both advantage countries. for by officially South The of GE in of are end regulatory workshop is opportunities our forward. breast investigated. major our A usage now images AI-focused process to region. a distribution a performance grown for experienced Grawingholt, customer synthesized and months, process launched specific to the we like includes and allowing Dr. the three planned ability Munich approximately to track with internationally. the which already both us to latest September In in the expert commercially AI QX, sales operational I'd learning subscription to widely learning-based to Arabia Paderborn, and received that last direct product, radiologist in and model. with now influential Axel offer of This expected AI has Density at in the months. -- speaks ProFound trained with will Risk license Europe our as is review and radiology our a collaboration May, which the will registration XD. distributors GE more really event KOLs a assessment and a Germany

possibly made fulfill also and regulatory Expansion KOLs in been calls expected into distributors are requirements. with under to are in potential the with requirements QX. Additionally, any investigation. for help have Regulatory evaluated several contract underway us which clinical and advancements market entry Thailand, is signatures being prepare Australia and Japan

neuro registry, The to now Xoft consistent exceeded the sites, on six see shipped momentum indications, has IORT business general half two-tier systems, the while controllers been our the current revenues KOL precommercial has XX revenue China new to developing of continue first the results the and QX, clinical the we from trials, $X drive breakdown and for our U.S. on in of year. side, applications and around On skin million strategy in rectal, revenue to and and implementation In our three business, the nine locations efforts. Xoft work. through

promise, business we West and of quarter continues quarter sell in show favorable recovery partners, source as addition controllers and We in COVID skin states have QX to uptick to Coast of and restarted new Florida, DermaCure growing gradual this seen the quarter. including RT, more expect our quarter year trend is last continues. key regulations hospital as addition, our Xx a business continue we in service to with new such the and a that pipeline to The

XXXX. we restarting networks from are policy payer this societies negative started complete consistency U.S. collection and objective private to this begin our is data Additionally, in study the both key the in of leveraging XXXX network The exercise Medicare private reimbursement to across the skin data the of five-year payor in in with and

applications. Moving on clinical new to

in The QX Trial of with COVID cycles execution GLIOX neuro with to process of is and on this commercial full and bit of treat hospitals has to a this QX. first the recovery taken now in We patients offering clinical longer trials. little Expected and largely due XXXX. sites expect started integration have our our new FDA-cleared lengthy launch budget trial

growth APM as to year our continues U.S. Xoft on ruling strategic we areas While the RO and segment, fast-growing of a key year. monitor skin in continue significant to trajectory progress such to be

half and look continue the second shareholder sustained with we value. upon and forward, enthusiasm. create advance XXXX, the year we of to providing drive additional you leadership, of progress As look first ahead half achievements as our We the business our with to from technology to and additional forward we updates reflect continued

call We open for will the up questions. Operator? now

Operator

instructions] Thank O'Neil we'll now Markets. Lake you. Brooks with Street first ma'am. And [Operator our from take question Yes, Capital

Brooks O'Neil

Solis the the might of afternoon, on you're much. the the give the you and was bit from team. enterprise Thank you're little saw all, now hear of example, ones a I guys, last of a seeing you end able be Good size, just potential on members us talking these color to hoping some the little toward what you're difference and very year? with versus, maybe you to new customers of to, talking for congratulations to of color Mammography

Michael Klein

Brooks. Okay,

the our of I'd are from or Let million, to geographically well -- take that from This deals sites other diverse, know some which could talk may at they are very that actually, range going assessed be pretty our questions. dim, And at is look we officer we definitely me technologies while with what when intelligent that. to customers technology enterprise means over a savvy, deals a say -- look often table. but folks SimonMed quite that these It's well-dispersed. to different to ask forward. deal not to to drive are this well, Mike. and chief from they or are They these different the range allow were XXX,XXX model, decisions, with like AI for on very is almost of nature, and newer let's trying little skilled, and deal are have absolute hired independence. and while prior networks make like regional how actually obsession They are of say procedures and in in Solis have that franchise we a more care them a for care the have educate uniformity that folks consistency

throughput, clinically this this of a added size. are our productivity, to productivity-oriented. involved, the us actual the to It's again, that the and very of bit sites cycles. geography, sales by point. disparity they're regimen and number of focus an And has They're, is driven given decision-making deals. in large on And additional care but So, these they're and economically driven, consistency obviously, unique still call

Brooks O'Neil

curious the follow-up, one deals lumpy I it's QX think forward? just process says to it you these be so variability more quarter much. some going you if or kind of or very quarter come going to That's maybe these a there's make Okay. bunch of do know helpful. very sort of to that, going will Thank obviously, everybody's in you through deals of of -- think

Michael Klein

saw good and balance into pretty that and decision-makers, continue them the a of this kinds would of, more reengineered do as deals. deals July We well the that basically just cycle personnel our last to that traditional on August you point, putting sales the a technology-oriented Yes, lines. say understand surge these of sale we see I of deals with more deal quarter. with force these as on smaller mentioned we front new to We

think not if could that occur -- that the we'll well-prepared. I view We're lumpiness dynamics it's smooth Now, out. with our that like

add and lines toward that with doing We lumpiness. certainly obviously, are or in these to additional out to based mitigation Thank have lump of Brooks. potential ammunition done questions, you. smooth firepower driving And deal to of cycles. the well-prepared of on work the elimination the so, to we front Good some

Operator

now And Oppenheimer. question next our from Francois from take we'll Brisebois

Francois Brisebois

Hi, the for taking thanks questions. Mike,

you Just process this first here some XD AI on guess, used here, impact? to ProFound XD Is that little better terms And any data KOLs the one XD of XD longer? drive at kind you than on, risk XD Europe staying XD, that it? have Risk -- here this on quarter, so can kind of idea, looked do slow much in the color of validation, of it. people going said You share to in financial think I are for a instead already any how and to get a

Michael Klein

it. the we questions. waiting accounts are been these to pieces XD. and going of wanted we I'm are actually good so Stacey? to these to maybe Yes, kind and some over have with bullish it. extremely have findings little chime risk well. We We data. Folks of would with sites I what could of XD are like to in a for turn clinical bit terms to clinical say It's results about as curate have more in that -- your over question impact the XD to that. Stacey

Stacey Stevens

Sure.

So, in I mentioned seeing as XD the we're improved with performance significantly script, risk the algorithm.

X.XX. of in was a into of solution risk of up in AUC combines you XD, and kind and on that our sort -- accuracy nine-point our XD improvement the to seeing XD put AUC, of is our it perspective, know, Frank, sort measurement to Just will, specificity algorithm, sensitivity the X.XX as you the X% which, metric we're one, if with risk and

a performance difference models are And actually the to conventional market very which improvement risk of lifetime around % accurate, today, think XD in we're are customer the significant getting XX% XD. will on really more also, XX a it's from the big excited we're from the So, the algorithm drive over improvement that about rapid our adoption and So, really right? that base. risk in that this

Francois Brisebois

Is should this a close of the or move hit go that, guess forward Great. over I going others And kind to can one. and demand and one gives But that customers, just you on past for in enterprise pent-up something gives these? there like I there somewhat a the what the confidence we can be a forward, sneak confidence? first revenues you last what if back end

Michael Klein

sort have of -- Yes, process. of that to deal vetted all involvement have in the technology these are that with level tied to budgeted, and toward IT already did, talking the about ones other ones We -- getting another indicated, we're folks into are us. the as look of customers are are

COVID believe literally, our of is see keep with kind them this that with for we've because -- but was deals. force sales trend really -- the more. it. more sites do always pace kinds I preponderance delivery or integrated an with minor, of And of an as to now. reason economics think didn't But keep networks. reoriented are see a or see has these We actually it to are rapid increased to that going we been beginning at it of we're we pace due we'll also train very of a change. aggregating this up efficiencies we seeing And But these actual the This of

productivity the The whether weeks catch is price-sensitive we These we'll at or They more words, couple are less the in go for that QX and not ahead. move is appreciate are to faster, we'll and even As opportunity. ahead, up months because other more thing as say of have deals. compliance see to soar good these let's they high. deals complex actually into

we little as we are anomalies terms QX go of we into on we're we a the but bit that going to much have handle through QX saw very quarter that in confident we're how more we good can that a accelerate ones move So, the let's beyond. learn as ahead, more in and forward say

Operator

Thibault take from BTIG. our next And Marie with we'll question now

Marie Thibault

Maybe you sales for or asking you the to sensitivity of as do Thank as involved the and that trials it the drove we're simple the questions. to they compare wanting surge of sorts taking and follow-up sorts pilots the they enterprise on think Is Great. seeing drive to What times are specifically wanting before quick the productivity do things commit? reader one questions that process. interest are and in more and CIOs now, little what about?

Michael Klein

product a the for bring I'll not even of solution our It plan big prior to we back that what see workflow year used, looking I a or that Marie. productivity increasingly, seen more surprise for year COVID take at that became prior would XD back prior only running clinical years who workflow as the the the to was score on of and to but, a as was risk help who first. were images bring much tool. are or people products the question, to see and as say to

interested folks sale. we in whole suddenly, in for uniform had were reason IT then in and sites. people productivity all new So, in across being brought And productivity that that a consistency -- the interested the

beyond assurance, folks create to We're vendors an products broader if us just value it to quality IT of proposition that productivity, platforms which happened to So, a seeing of this the want they throughput. And presents opportunity. that actually common and appreciation say initiatives would can multiple economics this our fewer with with, I they because work some of clinical a to to have uniformity, align buy also it vendors. with ask from multiple was us lot AI across us this consistency,

unique consulted should in and into But now. table, agenda. you they're their and They with next at table. seen particularly on someone right went them, you're big the aligned was sitting seat with folks in this These always It were run -- we've looked just are as NR. sure engineers, the we that to emerging COVID. equation. make at to we to information and in CEO have being this want the heard they chief it's further quarter into with don't they're a agenda used numbers IT you're we've just quarter consistency, a way. menu. the COVID, this being at at being integral something first of they past the So, They've or officers, the check These in completely your that as early things table second to the the table, be But whether say the are I these year, if productivity, with is since and the this the in success not December

technical, there if your So, -- this you nuance could mind? unique triad, I repeat it clinical. and there economic Was may you be decision-makers, to question don't that another missed,

Marie Thibault

or do and others was vetted I before the they comparing it to just, think sort whether want whether I of looking trialing data it's evidence, terms and small see what CIOs asking pilots they've specifically the to about want commit? in at of to they

Michael Klein

want or are our that they'll defer we're runs to cloud. the to and the Yes, with the base where clinical -- radiology folks chief cloud to solution, to the if -- The processing it technology on-prem in parallel less way well, see and officer evidence movement hybrid on or they personnel. their the images inclined technology they're our or

be knew and to IT connectivity very is it want that this going that of the little is equally technology sure to exercise, more become process. as we clinically But we that's part to us. into process, part combined with of the being, weighted. second adequate, this their for alignment that's has that that the they're solution, we're would how that, seeing and thing a surprising key. they aligned and of with pattern, go And bit, was purchase from commingling elements key is really the venture. and looking now felt prior a The a good be we they're interaction, make that maybe strategy, you're a what and year But economics, probably So, they dominant always migration

set The good So, of it's just it doing get people constituency recognition. understand signal different doing. processing. understands noise deep. thing who between They a real capability those more there pattern there and very get are triaging with the difference some is adds actually general we there, AI get we are another We whole to They what and in in versus questions, the when we're that in showing actually understand that process. that time

are fool. folks these So, to hard

and hand, new good literally been we they facing press intelligent questions the of with portion On that a spent technically. QX your has be best other to very orienting decision-makers. why a of ask to you lot this kind ourselves And better

Marie Thibault

in back Jump queue.

Operator

a take Laidlaw [Operator Company. instructions] And we'll from I'll now Yale with and Jen question

Yale Jen

forward, your follow-up a percentage Hello. accounts customer -- Good future sort afternoon, that. that be first as question this look after prospect and thanks for will taking have of if I you My categorized of the versus can enterprise accounts? of the what be question. And is traditional

Michael Klein

and first in this, now. U.S. mostly right Yes, -- think the see I in I a to Yale. all, it's of we're U.S., question, going good the

it that's, market academic of see of they're our we're to much seeing you'll to So, of is -- business, market. mostly pretty U.S. like thought as thing then probably market entrepreneurial this, iDMs. call to of with networks interesting The that's while What XX%. XX% the so be the of horizontally, that XX% they're XX% points the being XX% market, segment, the diagonally enterprise of Prior only are and -- is -- XX% say these the that's we the right they're thought so almost more there, most that segment the kind in that crossing segments, we'd may only across the say while both around and people

volume is best a of they needing it's really have the sales high which rep translates from rep a call of accounts going for type percentage to on, the XX%. point, into have and kind because new disproportionately the to of So, At this the about the higher. sales calling on be yield you sales sites process

where that don't number. are toward next a or all in just out -- this beyond I also of of XX% might now But -- coming see have though balance the to close XX% nowhere, is controls think or think this controls chart. of here I do We're power has leaning were chief but Some the the I information year seat that get we'll where have sort phase the these the already direction operating accounts that see crystallized. out these this chart time. chief trends radiologist But time. out seen the the over table. I officer a balance through stronger a controls things at chart, officer over going

key do make it. procurement you have of mapping to of power and dynamics keep of ahead you're to this. the process sure see are where flowing I ahead is the things the And believe we're One getting

XX% may lot think I -- little up change of guess QX level. a year bit get a quickly. at again, it with to the and more, anomaly I a XX% I think was, and But third to then of an it happening that accounts, stabilize that bit of next

Yale Jen

Okay, quick great. That's just follow-up. insightful. very a And maybe

based the potential system? if your of what's thanks. type Given method? be current more set payment that And your method the case, accounting aligned would terms accounts, of migrating future in that's to or enterprise of thought of payment to characteristics they pay-per-patient And these

Michael Klein

really it. will they will than coming offerings they other subscription companies with The that and online, allow successful they past done they how understand models Yes. subscription having in SaaS before that set is enables up these good are -- more folks or it models to architecture the create because news the about and other what as far understand

folks In better because it's So, But model tools. are a people slow waiting I I for SaaS. the infrastructure SaaS to part, XG, interesting there's accelerate a do and people waiting movement time, has more pace. at this for see it's that think setup, rather lot to that moved believe are realize the over will, been

are of toward data sites in enterprise going point, So, worried have of certain HIPAA to those to have who their in And to they're Keeping like out and those that cloud. solutions. coming the with drive about privacy that in to mind, there part the there to your and subscription-based is, more providers in compete are fact, dynamics. these don't

quicker next point, thought to to probably we actually than go toward almost moved But this and certain bit it's subscription maybe a it will little it'll it's because a move year. slower So, year, and able to stop ourselves themselves interestingly, corresponding pit retooling to subscription. we to be like been doing get are them. they're ready And we've with retooling face and for off going a to a the subscription

I too and and think long going better long to line I a to the this is slower we're But here. move So, doesn't run like, -- mean long next think We're well in us the more up subscription. going going with these there run, happen out to for accounts. underway cause it's year will this year. They little rapidly

Operator

additional back turn closing Mr. that I'd to remarks. any conclude Klein does today's like the session. conference to question-and-answer for And over or

Michael Klein

very proactive confident like we're an place. close the around accounts Well, our up QX solutions. intriguing got hands we as been that to do that summarizing ourselves in we look would with in We deal at the by and enterprise new and to put leadership in I believe anomaly we've setting just very positions have

QX because through some direction emerging this these winners forms, in continue accounts lagging behind. take on and are move to continue to will unique as We some and

an well it'll this organic well in But under -- So, hand. got be we've process.

us to move we're XD. forward strong positive very, continue and a continue down move we a with powering during particularly We capital runway way not sheet because, are in having has at the will to manage to We'll the as balance is of opportunities continues Xoft And to continue stopped. as COVID, encouraged critically for innovation excited that dermatology trajectory costs with path our And important. learned the pace neurosurgery. it we and providing very the the about so

we move to forward providing forward. look we as So additional updates

it's a you existed breed that inveigle point that's with As Stacey said, customer believe It's for forward But actually didn't thank year. expected joining could just are But subscription. like still within half to one second the adjusted pattern We're out All to potentially updates move significant might a been longer the happens be a of range look lumpiness we and where ahead. that, call pipeline funnel to future us with we're new we've in if aligned a the have have we of with that and everybody that of established terms and we're particularly deals. perfectly company to here. deals grappling of today, we of to that broad I'd dynamics we on say. smooth the bullish before the going, especially as

Operator

you today’s your all conclude does that we for And thank participation. And conference.

You may now disconnect.

iCAD (ICAD) 8 Aug 212021 Q2 Earnings call transcript