Earnings call transcript Q2 2023

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Operator

Greetings. Welcome to the iCAD Inc.

Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. this being note, Please Instructions] conference recorded. is [Operator

conference your host, will now Burns. to the turn I Jessica over

You may begin.

Jessica Burns

quarter Thank you, us earnings second joining you Thank call. XXXX operator. Good today afternoon, for everyone. for iCAD's

have we and Officer; our today, call Lonnqvist, the Dana our Chief Eric President Officer. Financial Brown, Chief Executive and On

and These Dana, iCAD's Before be on statements making to like subject forward-looking are remind on I are today. based statements the expectations and differ turning circumstances. over everyone uncertainty to current forward-looking results the would Actual expectations. call materially changes that will to call we these from in may

iCAD of list no or revise any and a differ, filings of obligation please statements cause today's update events or call. conference to factors date For Commission. actual the our results Securities to circumstances undertakes that could this U.S. after with to release press the reflect see Exchange and

note non-GAAP meaningful believes will view also management refer of like would the for operating investors certain information these to that way and reflect performance to that I company. the Management they that measures measures. the financial provide

You our a reconciliation non-GAAP to at end find of earnings release. GAAP the the can measures of

the I'll call Dana. that, to turn With over

Dana Brown

Thank you, and good everyone. Jessica, afternoon,

business our with begin Let's update.

acquiring revenue therapy therapy XXXX. $X.X in $X.X million with business. the We're progress for for continuing of On the the million side interested business, parties QX was QX compared to to make

and the targeted we worldwide discussions, therapy. While operate continue to business, customers these treat move forward with with continue to patients its we

On make the continuing for significant to the progress business, positioning side company we're detection in growth. the of

this including and on previous annualized cash quarter at strategic cost last reductions and $X.X cost to million, million by million calls, changes reducing streamline $X.X similar expenses base, our noted million several align is annualized by to as revenue to burn While million. to we $X.X implemented year, $X.X earlier $X.X

suite of progress shareholders company's the for solutions most AI our personalized our report commitment last game-changing cancer with and to world's pleased pervasive to creating significant detection and We're quarter stakeholders. partnerships, exemplifying

development today, number us and an earlier with announced our which, number two, approval with use amendment our as to for agreement independent mammography to our and AI profound enables breast reader XD commercialization As integrate cancer partnership regulatory Google's worldwide upon technology Google extends we Health, executed for XX detection for screening, for an years. one,

utilized a where of radiologists annually, with XX conventional million On of mammograms the separate in mammograms performed to those countries in U.S. Outside workflow become U.S., EU. XXX of assessed million performed challenging over most global basis, by has are another the and the are by million the XX two due scarcity here the reading double roughly increasingly worldwide. radiologists

health departments radiologist ahead. workload efficiently As about the the the underway in are months impact sharing organizations more to we to already evaluate to are forward front in help seeking solutions run patient care proven shortage handle technology this clinically their second and continues more reader, to look radiology as them. research a adeptly and of global care, studies our Clinical

on the coverage importance of solution like a which and consumers as awareness of potential reader, clinicians pressing seen You a use alike. this second media the may heightened ours underscoring in recent the of have need, AI of among surge mammography has

bring of reader property second first and best-in-class commercialize unique will AI and Health combination and this differentiating Through Google to leveraging to with profound intellectual long-term a detection partnership, market iCAD capabilities of algorithms be solution. iCAD's reader

of facilities, services largest the Securing with than in to Radiology across strategic multiyear recent represents systems XX provider of Partners. commercial women for including announcement Partners country. Radiology finalizing more a agreement to Turning now of the leading iCAD. X,XXX another mammography partnership health this achievement our is millions the XX of

breast of Radiology that honored provider technologies. AI as selected its are We Partners has iCAD

and closely We network the are in of across the iCAD's for Partners with significantly countless facilities, to country. adoption women screening cloud through improvements increasing actively potential their and Radiology technology working driving advanced their mammography deploying for

Partners, represents total was potential from less and roll recognized first which of order large partnership. long-term quarter their the will time X% XXXX, to in than initial from a across It's Radiology out adopt take and The relationship this enterprise.

available of states. U.S., second the implemented AI enterprise XXX patients largest breast edge of who cutting facilities assisting for across providers entire of it in hundreds its SimonMed’s With cancer ProFound year. in network, is the addition, solution imaging screened In one version locations SimonMed, of at we’re quarter, SimonMed pleased outpatient are day, latest clinicians in across XX of millions this each now SimonMed and that each the

you’ve Clinic, U.S. U.S. by while opportunities to us quarters, healthcare esteemed force more Joseph’s serve secure Cleveland sales Canada, lies potential ahead our great Health continues licenses and about some quarter and like winning market, And with most mammography enterprise of technologies to collectively Sutter with SimonMed, of last new facilities to expand the Partners, screening who of heard TriHealth, sold past and the the worldwide. in Extension in use XX% worldwide. continue Our Cleveland providers clinicians in Radiology deals and With Health St. for customers Clinic, large iCAD. announce and we Solis, prestigious the

sites and in our are technology As rolling into to the each many markets customers early more are expand stages month. out and of these continuing of

subscription high for post-pandemic a to XXXX chain from We continue several issues. distressing to see amid continuing expenses and inflation, recover model including financially demand hospitals supply headwinds labor as are our

to outlay. technology viable path subscription Our customers significant barriers to eliminate helps model capital provides to our without a and adoption purchase a for

in bringing offering years long-term to report we QX, for the potential reoccurring subscription deals close six XX in pleased revenue us year-to-date to ahead. that and We’re

Clinic subscription date. note, Of with represents for our the Cleveland company agreement our to deal largest the

as AI of also the reinforces services the we trusted patients. multi-specialty prestigious as ranked but not medical position a one widespread healthcare facilities, a of center the hospitals, exceptional bring recognition iCAD’s and for renowned mammography value is top to its partnership As demonstrates clinicians nation’s academic this of leader that and only solutions,

prestigious Services Suite. Administration’s Healthcare the Last honored quarter, for incredibly have AI award General AI we also to Breast were Challenge U.S. our received

solutions ProFound trusted military. Detection government and Our our already by is

hard As to solutions of service providers and its determined and technology last the allowing retirees year, This DoD the in and threshold, operate authorization met innovative Defense, care and granted members, positively which military around and for team patient cybersecurity family the recognition validates healthcare the members. DoD stringent world. its care the of U.S. Department developing and impact our facilities, prevention dedication use that work healthcare in

Christine Health and helped findings of Hospital continues our and to XX% technology Boca at cancers Wellness presented our Lynn, to ProFound the the Research or facility and Suite Breast progress. at her Turning CBS more supporting nine radiologists meeting segments. body rate from discussed first Women’s second to attention The research recalls. at grow. the dedicated Congress without Medical evidence now of media this the Institute throughout nationally Raton study Dr. in European year continued FOX the generate E. in quarter Radiology Director quarter AI syndicated ECR Vienna of breast find Kathy supporting Schilling, Regional AI of the found that increasing

technology facility. esteemed ProFound system world featured our most. other the AI significantly Dr. from XX% Suite also an which Health subtle She detection our Dr. event, the increase in fear at breast compelling case ProFound their evidence Similarly, at using empowers and find an increasing imaging are incredibly cancers, to cancer she using Clinic, astonishing tumors the breast to be XX% imaging cancer the the our Impact, of Cleveland studies Dean to clinical Ford revealing Michigan even Insights exclusive tend detection how to the shared team technology. Clinic rates Cleveland our reported types radiologists own Dean. our Laura webinar Henry demonstrating radiology latest Breast their recently real And radiologists how small In shared

milestones the sales past our several OUS quarter, United the the achieved expanding we During technology. global iCAD’s key of outside of or States, also reach further channel with

of Our XD countrywide Luxembourg AI major in for a the XD by breakthrough distribution first securing and achieved mammography. channel mammography implementation ProFound

achievement and each products plan integrate a country, into is sites of small program. use eight screening workflow their this now their will country they the Although iCAD’s it’s to the imaging breast remarkable a in diagnostic across as

XD expansion fiercely competitive country, a Republic. first sales resulted direct nationwide. six of territories, already [ph]. the in largest The licenses, distributor to Czech profound securing our sale of success our by our XD achieved groups and sites Turkey Furthermore, and of via Oradenase partnership and partnership the in in multiple radiology we further France market we expansion addition, [ph] the with AI, in secured sales In Oradenase with the anticipate a channel in has one

mammography a will Density extend accessibility installation to units, units for cutting technology forces with with OEM our in to is tender we Through equipped joined this for these further new GE significant our Assessment. secure Italian sales and year edge of XX be women later PowerLook to Italy. of The scheduled the channel, all

from clinical at Dow in SIFEM with On Congress breast findings French side, the Paris, her on or calcification Imaging France recently BAC product, collaborating arterial iCAD [XX:XX], Dr. our May. at who’s presented Breast

you And lastly, actively modeling before we scenarios. assessing that I revenue and update, and want financial we’re growth to expansion just footprint the remind move to

on and and on plan our third you milestones prior metrics we plan calls, on communicated strategic call. relevant earnings update As to our quarter

strong stability, drive the and to cash actions prioritizing development within the a decisive taking competitive long-term we’re strategy. summary, In rapid transformation of preservation, company,

goal and Our sustainable is diversify resilient revenue stream more and future. reduce customer a ensuring our to concentration,

Eric the XXXX turn financials. for a our over of review to now QX I’ll call detailed

Eric Lonnqvist

summarize you, $X.X I’ll for ended afternoon, $X.X the XX, or XXXX. of second a quarter Good thank now the everyone, XXXX. quarter financial for and of million, Dana. XX% from second results was quarter our decline Total June million the revenue

it year, Although this is from line down in expectations. is our generally last with

Within a prior $X.X segment quarter service XX% over constraints. was million, revenue down from budget X% revenue attributed was including increased factors, of was million, subscription, up year. our the cycles, purchasing last $X.X to year. million, decline is XXXX over competition variety revenue Detection Detection $X.X This second Detection, transition XX% the and longer to down product year. The prior

million, or revenue of down million, million $X.X year XXXX. million, XX% Therapy Services second revenue segment Therapy X% XX% down revenue the product over over year The up quarter versus year. $X.X was was was $X.X $X.X year.

up from On compared gross dollar pure reflective second gross basis, to of XXXX, revenue $X.X profit was XX% was second XXXX. in million which quarter million of the profit profit. as was on largely for revenues. a percentage reduction for On XX% to the $X.X the the gross Moving year, in quarter of last quarter basis, a of

the implemented improved $X.X measures previously cutting run second million rate quarter expenses cost announced. or of $X.X year. the XXXX XX% over a decrease operating were Total year million, for This a reflects

XX, XXXX. million versus was $X.X XXXX June in in quarter loss June XX, ended Operating $X.X the ended million the quarter

for GAAP the second of loss was loss XXXX. $X.XX compared with million diluted quarter $X.XX or per million second of XXXX GAAP net or share share $X.X the a per quarter net $X.X for of diluted

adjusted or GAAP XXXX $X.XX diluted EBITDA net loss $X.X QX or $X.X $X.X QX for reflecting quarter million a compared of $X.X for was loss diluted was the million XXXX, each loss the million a $X.XX XXXX. quarter few share Non-GAAP versus second Non-GAAP net to per million in to period. adjusted for in per share of adjustments

and Moving million cash XXXX. as XX, of equivalents to of $XX.X company cash million XX, and December on on of balance cash the to $XX had the sheet, XXXX, June compared cash equivalents

operator the to like to call the our now would lead concludes of financial the Q&A. over presentation. back highlights turn the I to This

Operator

for question first Your with coming Capital. Per Craig-Hallum Instructions] [Operator is Ostlund today from Certainly.

Per Ostlund

I effort that several really with double at reason now. standpoint to part afternoon, is with things I’m country-by-country’s the much to a we’ve like is going Good the I because the Great Because in that and about one well. nice today’s paradigm, are feel and curious there with the to that replacing the want relationship a announcement be is might It’s of Eric. see of globe start inefficiency I radiologist how expanding. talked as things Health. ask read, the the read across double and Google regard? Thanks. I comes momentum RSNAs that from Dana headline that these – shortage,

the we’re point curious worldwide? that of and sort now So leading really nearing and away if really proliferation go to where kind read start might double AI can I’m conspired maybe these be tipping the relationship to things just a point where that your have now, of together

Dana Brown

for Thanks question. Per. Hey, the

terms So a – with a bit adopt right, I of of say imaging in then would and which it. centers it’s there’s – will individual a little speed the layering countries

would So say seeing first we I definitely are momentum.

some can in we if In recent Scandinavia. you seen you links in work to fact, happening with have provide not, may to it the be this press, news sure and about

been trialing of participating kind if underway studies So leading There edge of they’ve terms kind the countries, we’ll right, first to in right, talking to in it already of block of you that will, of with define clinical begin this. UK Union, But European stepping you’re of the are all, well, requirements. Google. and kind be, of if going that regulatory a on regulatory into you the together go is you’re approval, have

have research see also will bit for of particular Occasionally, country. easier that that’s approve if their information say that’s in to for done you’re go example, they EU want you countries perhaps around time a to the that I say then versus that right. it will, population proof regulatory think own us we technology receive once that regulatory, requirements specific in on, need from their going the So another even benefit the neighboring But going countries work. satisfying before can this other Also I’ll I’ll a make we’re through. country the world may acceptance some accept designation as little they goes work countries more also type related, to needs of because

gained also to and are retain not immense, points that ability radiologists. today’s in terms price only but shortage, of efficiencies especially are The those radiologist the in

to up pick think So it’s I going speed.

when think think lot you’re thinking if about we’re for different to of to going continue you’re lag U.S., I I do reasons. a – the

of Asia going you’re in Europe manner. pull the particularly actually deploying the ahead in to So to Pacific, in and going in I think technology – them outside the of terms see in you’re see this U.S.,

Per Ostlund

Okay.

sense. makes That Okay.

Let from aftermarket me recent up turn the to news Friday a facility $XX million the other $XX headline of or million. item [ph] The afternoon. the to announcement

used the Given it $XX only during with quarter. that $XXX,XXX, you’ve $XXX,XXX quarter looks cash, million you ended in like about second about

cut You’ve costs been to further. putting efforts in place

could some to in poised be taking off. You be from a cash potential divestitures

a what – thinking program opportunistic investment at some curious to want the I’m right big that picture as of of such capitalizing in guess level, clinical there are kind that might putting investments? of And of now? I So terms be was investment now the in these on seeing you’re you areas

Dana Brown

Yes. Yes.

So great question.

role the put you the couple months, because I the transitions, understanding, honest, points at ATM So place five everybody in and And months, be had of if a terms think will different management just and in reminding high into has half we company level, ATM again, an five kind various place in the my is to it a in of in time past. leadership had lapsed. a

now, options it. be to and your the point, through might may To a I evaluating are very to get business. need need strategic the we just be it. still for ways There active. an So opportunistic. also may be as it strategic wanted to analysis There for we opportunistic expand that be prudent, Right we’re today, one our on mentioned filed working

to that direct particularly fund. are that have that they working large programs self-insured or calls, employee prior with on this going wellness mentioned patient, employers We’ve large

so Going I Google beyond MRI. fast. deeper dreamed Five wouldn’t was to ago, ultrasound, going mammography, – health, into perhaps this just this that relationship happen breast XX-year have Google months

time. in prepared regulatory So sure in many parallel need we I’ll be right this the regions first approval leverage strength and same partnership. support or to and you’re of make the really We say mover process to at to have, the advantage countries

and so some that the probably So maybe two for That’s a a Partners, together Even we because will few analysis weeks now out we roll sure us of which ago, technology we across take we new I as innovate long-term to have network Partners, securing think years make right, solutions deal. as well develop. understand Rad announced it’s honestly new and half, Rad to needs that. resource their going and on with relationship it that vast a and week and think

to use bit my get from fixing Texas ready. to So a background, little it’s a phrase

mechanism additional have a have using just our to models it from – we when any place that the and the funds. And I’ll we if have substantiate Board. supporting sure making ROI So support in we call

Per Ostlund

that – sense makes perfect makes That Sure. sense.

one quick more One me. Okay. for

about on Speaking a of quarters? talking number realizing not many did – take how the they may you Cleveland complex do on impact we organization. about, over congratulations big when network, Partners a probably locations sale but large product Clinic think a more thinking subscription deals are like Rad referenced that it about in you realize realizing suite? [ph] How the as And that full is phases our we start P&L of do there be

Dana Brown

Yes.

product, getting core is our Clinic with Cleveland So which Detection. is started

using today. So in mammography screening it

Cleveland be right, will a customer because on time to thinking that to there’s bit think, a takes your new a like kind It locations. okay, a I the speed. of or large and sales I’ll to make taking look the out. this XXX with running, to customer, up right? would a new edge, I that’s wanted those understand and like can of at rollout with particularly the check mentioned our think But on. of definitely of well. kind with customers a team most similar their update, as point about, something of is kind I say across to up next to the timeline in They’re the of not Instead tendency sure, leading density all I to that, roll we we solutions they’re customer with all of to okay, Clinic once the move honestly be I full And couple to for I now to all As like, not sites. innovative of and going follow just need you that announce risk radiologists, up

gotten over proof-of-concept And site time, And more and locations their opportunity it more deploy they more with started to because markets, for or these as so site. a additional accounts there’s their then us. upside within they pilot have potential revenue of may there’s of a

the Are that the working model a then bit where others. I’ll to they single then, to have buying they sites whole model about packages. matrix a they're that, say, right? us to So may because it of just it’s of over different, roll internally, helps into it and opt to Eric And today? of have think they they out. product so And little way mapping number buy a we according time, deploying I on going a bundle? are how product and And Do it kind

actually get we've pieces that that to hope kind I'll to started, of of you be to the that models So quarter that's the with to well. help we everyone And hoping as say, And metrics information able there'll we're on of spreadsheet next more one model. good clearly earnings some to we and share in be that of there call. when distill educate your

Per Ostlund

Excellent.

thank answers, Appreciate Okay, the for it. all you Dana.

Dana Brown

Yes, no problem.

Operator

from Thibault coming is BTIG. at next Your question Marie

Sam Eiber

is Health Hi, couple Dana. this Hi, on I'll Eric. partnership, here. Mark CE and you questions submit Sam integrated for Google Thanks that at yet? it? afternoon. And This for maybe might submitted any of I algo a on taking for one Marie. just questions visibility do them But guys the have Eiber a take when have you time if you about not, have

Dana Brown

Yes.

submitted We yet. have not it

pull your going take we're while and I'll chatting. maybe time line to – up me the other Let I'm question,

view, databases. And from of months going the then developer's being through and – of right, test a from point kind So testing our right. finished it's away, own still few

in work development progress. still So

Sam Eiber

Okay.

publicly anything have disclosed, have fee a how if or then I they're shared licensing And guys Understood. guess, financial deal? share it's or the about you Okay. guys the revenue you structured, arrangements,

Dana Brown

shared here Looking anything to historically. if we've Eric

share. is it revenue So a

this So it we way. put are – let me

be will manufacturer the record, of device We right.

have we as characterized it So agreement. that's a commercialization why

then effort. royalty it. technology market we'll the use So then IP a selling taking the to the ones to and back we'll be for of their Google pay And in

They Google actively like technology R be AI centers selling So in is not to and hospitals. want to imaging the R&D. really

Sam Eiber

Okay.

from more the good. here, it's question and a all detection but maybe of be, Per's higher makes That Because how and this up one, – an quite opportunity on And right. understanding of algo's incremental level our kind Okay. but following already data, could the of sense.

a I So an just from opportunity trying the here is get there I'm where certain you might understand agreement. point inflection? guess, to the

Dana Brown

yes. Yes,

first second It's is the makes really agreement, say, I this the upside, than the right. guess, twofold. I'll So what had. agreement that better Like we opportunity,

The first length is the of time.

huge, of years I was XX you Still, It's if five-year. takes little get right, so agreement world wow. a think, technology, This years. up I can The XX us to in Especially first right. ahead. like, still hear, a the

like long-term happen we're along committed as right, the you it's to like innovation, imagine, relationship, lots of So probably way. envisioning can a

just partnering. So is length of that that's number going one, we're be the time to

is or our two the number second reader independent a efforts combined then of as reader. approved an use And even

describe the U.S. mammogram, don't right? So is right, the within – have they it's running, go use like traditional purpose, to use reading Like to a know, but independent, the on not your can honestly, have in in run setting. the it mammography permissible it. I'll I first It's its radiologists, or really own. agreement, AI use with we to the has support. it, it here more as They agree you algorithm the radiologist helping for was algorithm The is, the can't which AI

independent. findings, their but cannot AI the be You're recommendations, right, their

regulatory for for huge, us the to it ability right, This permitting algorithm to be this apply, right, is that developing involvement. is for now human for this without we're used because independently, jointly that approval

So that in really speaks to, algorithm I the confidence iCAD. think, in Google's

this. algorithm is seeing you upside to as a an without But more piece not as our say, what population. such, from we're in asking is again, which whole more delivered and little Because the to for they that standard probably that involving there's scary, changing countrywide out potential. testing and mammography I you're more are and even accurate, whether entire, you or which huge their in in regulatory think approval, the of getting is I way a loud, human It's As imagine, tell say, just technology a can like thinking cancer of someone process. kind a through have

it's yes, So big.

Sam Eiber

in understood. I queue back I'll the added here. jump color appreciate there. Well Thanks. Okay.

Operator

Your next Yale today coming question & Laidlaw for from Company. at Jen is

Yale Jen

thanks the questions. the for taking deals. And Google going afternoon. also start to Good with And I'm

First Europe prominently of for using is and indicated XD or XD? countries press that What which the only. do believe other all, the I States the United think XD opportunity you more that the for release are versus

Dana Brown

it's first – so in is the and which is agreement, Well, still XD place, XD.

this second The do top builds standard radiologist second the right, the just to FDA of XD release is pathways reader agreement mammography. care, a a talking not have human really outside use that. So reason is the does, of on press this because is about of in clinical right, organization We No not for the approval. in have of U.S.

in So then over is U.S. really apply the U.S. the most But U.S. to common the time to reader length get today, the that still in the time XD mammography second future to of back both the hopefully will and agreement the XD. some it core the type time. at then, of use of us point to doesn't when XD, enable which does workflow. is We embrace can outside algorithm, And begin

Yale Jen

should approval? is one helpful. in besides that, mentioned very what I that? the for about we anticipate state overall, within prospective maybe understand question plus which there's And or Okay. – so analysis a database is, country-to-country should or process see any the Great. the which how general sort of That on you regulatory different. very, But is we more

Dana Brown

bit – You understand a more. help so from mean me little

from like standpoint? timing mean a you So

Yale Jen

approve – or of the the or study In the country. enable needed the European database in process terms to to

Dana Brown

yes. Yes,

remains it's bit So little be a seen. to

are kicking actually there two UK in be next studies weeks will The first the the very large in we're very third the are off actually underway, studies scale. very, few – a that NIH. that doing study with It's here

are study? see says, these the country countries for for their want they country evidence own of them results their gut by a, would we whatever they my Would begin So, publish studies, accept watch bit to as clinical as populations other of and right? or reason, doing own a let’s

I right? the from study prior three EU that are should ones happen right, one body. UK that – adoption So I the of are hope that in that as help the think our with there require. the we’re through And we doing other are EU standpoint, the the or kind that submission, an we that studies the the studies, we’ll mentioned is we’re to go is of they which rate that several so two leveraging regulatory for then do as learn part mark, accept watch not just countries, a EU countries we mark and have may the what CE of

Yale Jen

That’s more one Great. sneak in question. Maybe can helpful. very I Okay.

Dana Brown

Sure.

Yale Jen

the indicated – people the user to reader read In words, XX.X%. earlier other there’s that press read In release invest to that a what And you reader? for AUC-ROC data? AI of think versus or think? the this does between for should that margin we of How the difference second so – provides readout

Dana Brown

Yes.

where to kind of involving would average score six the by I the a the XX.X% AI I’ll that think algorithm radiologist. AUC radiologist, say at that percentage, accuracy that percentage, so XX.X right say percentage is better radiologists radiologists. terms six the about kind simplest And study of exceeding human this the So that average its outperformed was way of than in the is

Yale Jen

Okay, on great. Thanks the congrats lot. And progress.

Dana Brown

Yes. Thanks.

Operator

next Your from Frank question Takkinen Street Lake is coming Capital. at

Frank Takkinen

is the could it’s how frame multi-year but be. up effort, contract? of entirety Radiology Great. for of ask specifics, for maybe a questions. the on large just opportunity a agreement. Understanding the what if partner the use just could a financial you whether the trying on little Partners that more basis to I Can or was hoping per quantify of share that’s you a Thanks color the for to any

Dana Brown

Yes.

of think start to So trying I’m to the simplest answer. like the way

call So a bit hybrid. of them Radiology I a Partners is,

So bit this discussed past this on we may a calls, may be so repetitive. have

the own say the where well they the readings, doing actually provide Partners I’ll a managed radiologists has they technology services. the performing environment Radiology services infrastructure kind that right, owned are of in the right, So their facilities, facility, as as manage

subcontracted more for just centers may which then radiologist portion They’re of the of providing other services. a services. really some kind centers and have they’re that staffing do They they they have just those

like a they facilities. I’ll arrangements leasing variety types of So there’s that it call or have of, across ownership, those right,

with So established essentially partnership we the them like the is way a reseller.

So they’re there’s of defined right, centers reseller their I acting as mentioned. right, combination, ownership those a as just X,XXX that model that a that is which territory, or leasing own model within

the offering so today all cloud. And planning they’re centers through of those on their to technology

they just they I few services, They their right? technology So had own infrastructure, have ago, a mentioned own their developed cloud have environment. own sentences managed their

is inserted technology or their cloud. docked, into our right, so And

so as and we’re the they exam revenue a exams. imaging then tracking centers, with on And on different just can it different types the volume their per mechanism, what based mechanism arrangements as on number therefore of really bring a increase we termed licensing so basis, can of is –

them. So we with the they grow, can more then grow

We rollout haven’t progress That’s finalized literally right the plan yet. now. in work

call, again, well looks think with get the years. come blessing on over we would be course few time it earnings their third bit the by So and the what as a next the talk quarter we hopefully to I like like to of able back

if So more than I’ll just kind I raise of answer. pause there, did see questions

Frank Takkinen

the a you on more basis? run off more total for And on $X.X expenses at appreciate And relates Can I all forward go maybe quarterly cost a on one set million. the that a color, that on as question that. down to cut that’s then have P&L me OpEx level this No, maybe operating said basis is model – been good $X.X rate it just just directly, we us stand just where to million implemented? fair for

Dana Brown

Eric question. chime I’m take in this going let to and

Eric Lonnqvist

going think rate estimate forward. of Sure. the a Yes, I is short run answer the fair

at the cuts million that $X million announced an QX, OpEx million $X.X to the OpEx we’re then of QX, we and So for projected $X.X was annualized.

down that million million being much about in So is $X.X from $X we where QX, expected. this pretty

We are off little well. the seeing furloughs side that all savings think But should of on from I continue. as a the bit

and kind in – So but some of I feels of they each quarter, a good anomalies ways other are kind think think it’s spot. this there offset I it a like both going

cuts. QX was impact that said I coming that the think we you’re seeing with really

Frank Takkinen

it. Thanks taking for questions. the Got Okay.

Operator

We call closing turn I end for have to over reached will the of now the remarks. session, the Dana question-and-answer and

Dana Brown

we’re making stream on believe will operator. maintaining building some you, and that stability, our long-term bright. this cash out transform concentration. customer and Thank preserving The company rapidly a our smooth In focus diversify of strategy and bold moves is defensible the revenue to we conclusion, with competitive future

In equity. fact, and three of take to compensation our have independent directors their elected

remain technology our the with company I its and the secure to and worldwide. prestigious the shareholder bright on grow. of And and healthcare be esteemed to the generate of team and discussed for our some to believe in continues call, it continues as we value. opportunities future evidence supporting company optimistic strong, and ability about most continues today’s Demand the firmly future significant facilities to our

our next to shareholder we long this look updating you increased as great execution continue range drive gain value. quarter plan, you to strategy, I and clarity forward our have Thank on develop evening. towards and a

Operator

you Thank your at disconnect today’s for this lines concludes time. conference, and you This participation. your may

iCAD (ICAD) 14 Aug 232023 Q2 Earnings call transcript