CSBR - Earnings call transcript Q1 2019 | Champions Oncology, Inc.

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Operator

Ladies and gentlemen, greetings and welcome to Champions Oncology First Quarter Fiscal Year 2019 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this program is being recorded. It is now my pleasure to introduce your host, Ronnie Morris. you. Thank

begin. may You

Ronnie Morris

Ronnie of I’m Oncology. Morris, afternoon. Champions CEO Good

Chief David Thank our Joining is our quarterly Financial call. for me today us Miller, Officer. joining you earnings for

making will actual that could statements. differ is that being, call what results remind from in I during today’s I we’ll Before be described forward-looking materially statements and you those

GAAP be XX-K. differ start financial discussed measures our reasons. Forms likely earnings in information factors our for on available is financial to call that Additional the non-GAAP release. measures and previous during available in several will by prepared earnings the could A today be I’ll Form on is for that shorter than that of pointing out cause may results calls to comments reconciliation XX-Q

our enthusiasm know, year-end strategy themes Oncology, there is and you we XXXX six ago. of provided level at remain and high unchanged. recently just activity, And fiscal weeks as growth Champions a while only results overall First, the consistent

going reading for and another record GAAP general basis. Second, of messaging revenues, providing applicable. the obtained give will successful more full when year altering easily operating on and new had year with information our to by overview format both broad fiscal some reached another quarter profitability and information on guidance on Overall, quarter. revenue fiscal and we the call the by some look Company our of quarter’s XXXX earnings initiatives an with XXXX We and statements. minimizing started results, Instead, repetitive release a financial points we we’ll of highlighting key and our forward, be pace

the grew with for with see and that continue we’ll us when million. able guidance expand by compensation we fiscal $XXX,XXX. and more indicators the our hit a core for income for net Our $X.X pipeline. to fiscal stock-based be bookings $X.X non-GAAP number a million. had customer quarter at base XXXX, quarterly growing On revenue basis, stated our than profitability. we quarterly give increased These our GAAP to from confidence a And demand of strong to looking to first depreciation, continues products along income nearly goal operations of XX% XXXX and of excluding Revenues of income

and our us over In at products, bank cytometry. addition next and some pre-approved preclinical rolling ex to and to customers platform of which months, new to screening core include large several our services, This we’re our the leverage tumor platform studies will provide assist ex vivo enable their flow early services clinical vivo out our large work.

have preclinical While clinical we are we services analyze samples our flow well. to expanding currently as cytometry our capability for work,

we and we middle beginning year of end next towards discussed during fiscal the to year. increase product in earnings those expect in of the As new the these from revenue rollouts last from fiscal this of bookings bookings call, the

We trends oncology increased continue offerings are to our plan improved encouraged for by recent enable to services and our drug towards demand expanding development. the

results. over the detailed financial turn to call a David for review me more let Miller of Now,

David Miller

Ronnie. Thanks,

Form on we September the XXth. filed SEC XX-Q results full with Our on

highlight $X for questions. was to to prior to million quarter our alter results in results be the release One found period. the briefly All Ronnie, can fiscal line-by-line revenue XXXX, highlight period every noteworthy million, by in the XX-Q. some mentioned read financial As P&L an first is record XX.X%, such of and going a not last and compared comparison our the will I we’re total increase this year. to and in of of call then open the format same press call which $X.X

time gross to first is guidance in as slowly we which line continue with expect our of improved margin our over revenues for grow. quarter that gross prior to XXXX, the consolidated Our XX% fiscal to increase margin

have to lower contained compared due same well in of with Although the $XXX,XXX, period total the increasing, sales payroll our costs. expense remained mainly revenues decrease our is to $XXX,XXX expense marketing last and been year. The

on of $X.X as expect total, the to continue last increase discussed do sales year. marketing the force. expand first as unchanged call, of and year-end year over virtually from the fiscal quarter the sales the quarter for expense our to XXXX we However, expenses our the we In course were first million,

compensation stock-based evaluate expense. As by always, items such excluding our we non-cash financial and results as depreciation

based $X,XXX,XXX of however, of in increase to expand. to to for were the increase X,XXX,XXX of approximately XXXX, was cost cash compared the The primarily expenses first due as quarter pharmacology work level $XXX,XXX. last same total an higher Our the year, fiscal period sales continues

improvement our will approximately $XXX,XXX expenses net first from of as year-ago excess the basis, single for and loss achievement expect of grow in our in On an year, the million, significant our a we XX%. million we $X.X the digits period. GAAP reported of quarter income Company in $X.X mid grow For full the net a we revenue

non-cash Excluding and $XXX,XXX. stock-based we income record net as of depreciation, such items comp reported

results encouraged by consistent forward profitability our total to throughout and maintaining We look are the year.

we Net cash. $X cash the of on sheet. generated $XXX,XXX slightly by cash activities operating three was months the the more XXXX. of ended than first fiscal XX, for the balance to turning end had At million quarter, July Now,

first growing to for that almost XX%. In sufficient by time confident $X fund predict, to our hand exact lead timing course of quarterly another revenue will to activities. is we the difficult cash our cash profitable increasing operating summary, anticipated had with is We an our results the continued year. remain our the million balance high cash strengthening record and the While exceeding over on sheet position of the flows along revenue,

in your is call to mid-December. update open remain Our We look deliver to basis our the for were and GAAP sales XX% look the and revenue for and remain track XXXX. We’d both over strong to on in of to on questions. profitable we excess growth coming pipeline so We like now call fiscal forward non-GAAP the next quarters.

Operator

will from gentlemen, Ladies our conducting Instructions] we of from session. and now first be Our comes [Operator question Craig-Hallum. Q&A Matt you. the line Thank Hewitt

live. is Your line

Matt Hewitt

A Thank taking for couple me. the questions. you gentlemen. afternoon, Good for

if So, offerings, first sits course to about that services how the the where in you expect off, pipeline grow the and over bit year? talk could of that little a you the maybe co-clinical

Ronnie Morris

Yes.

in growth of our for the pipeline from So, been much growth, flat, looking a terms co-clinical we offerings, the of our of bit had product. historically is co-clinical little type pretty not that

some up making products it. are include right than being is bunch and But, other clinical cytometry retooled a The more now work. vivo co-clinical the other ex of to for

at looking more the of we’re deal. So, package

process that. of So, we’re of retooling in the kind

but that this expected or we’d past point. the bookings -- some had that we’ve bookings, not in have seen the We expected at

Matt Hewitt

charts Okay. following a you’re And that little about expect out seeing bit talk there you to maybe how and over the the play on up the that then, remainder year? ImmunoGraft, of

Ronnie Morris

Yes.

do we a ImmunoGraft, to lot the continue of R&D. So,

the mice out products of space. but of within vivo. products a also put ex lot have couple our a We both now ImmunoGraft are A of humanized combination

at So, of vivo. as some ex we’re looking our vivo work, immuno-oncology opposed doing now to in

to over a still of year, times, a continue incrementally to offering. we’re the early of the And kind see that the It’s excited about going we’re it. we that business. we’re We area. side we’re And think of Matt. to But, six building lot increase next traction that months products in

Matt Hewitt

great. That’s

the the that the But, queue. for couple get perspective? think a should two hop back you’d one coming a several maybe you’ve cadence out the -- then, -- next launch these the want think to in that a calls then will more Thank from working in you. launch and new on thinking be big on. building of and working we one I’ll me, basket? or last would I door, those start services I How And be you’re talked Okay. about offerings about new basically pipeline,

Ronnie Morris

Yes.

the So, we’re them ex or think to next do basically of our large a it’s mean going able tumor organized platform, we launching months. using in be now which this be this the for either two, vivo what Those to right mentioned ex bank around It’s couple on vivo time. we work calls, of around is time, to two assays. us. the And I platform to over

people work a screening and at the PDXs. So, they into with get of lot studies once to utilize of system before do models preclinical, can our expensive a lot early, [mouse] do big

now. of months. So, couple clinical the flow actively is The that cytometry rolling out going next out in we’re rolled to be

in have currently We place. everything -- to start And we’re very very, going it’s marketing shortly. it

that that has of really believe also a We interest. is upside. There lot a big

companies lot We much lot deep that have for with is relationship the have us not pharmaceutical as asking been this. a marketplace. market for demand, supply the of of in There a a

offering we’re well. as So, about that excited

Matt Hewitt

details That’s those. great. forward seeing I more on look to

Ronnie Morris

Great, thanks.

Operator

line next question Our Thank Mike Janney. you. comes [Operator Gaugler of the from from Instructions]

Your lines live.

Paul Knight

I -- talk you Could account what model. few through was quarter. the on wanted Congratulations one, Knight. on Paul things go It’s the the in Hi. to quarter? Number just share a

David Miller

shares outstanding? The total number of

Paul Knight

Yes.

David Miller

Yes.

million, right approximately number XX So, slightly But good million is to it’s use. a around higher. XX

Paul Knight

Okay. then, you the right? payer ahead, a and quarters foreseeable to non-tax expect And for be is that years

David Miller

Yes.

for forward. expand it. that continue future, NOL determining to and have foreseeable will our the if be is pay But we We’re to can doing we pay taxes. exact have analysis the Obviously, going that we’ll carry to exponentially, revenues not to then

Paul Knight

talk Is potential about of was trial annually. regarding you of trend that like, number of the -- what know, larger for I customer then, customer count except if X the and you potential But, clinical was building, release And work? trials? could don’t customers what the Phase

David Miller

Ronnie take the trial. clinical I’ll can count Sure. customer the take and

so it’s business said, this actually details. we’re our significant to over and of the new you like almost adding get like That’s customer new like continues doing real okay, we customers point. I’d it actually significant point. business the this amount base number. customers. doing -- don’t really at grew with we’re less nicely, But, by So, into a customers, XXX XX at now But, become to grow say,

out with working we’re So, everybody there. that’s

Paul Knight

Okay.

Sorry. interest? X And Phase on then, Ronnie

Ronnie Morris

Yes.

has trials what talking in I terms a I doing ago. the was before that the traction about think co-clinical we that had thought was it building That clinical So, was going models the trials. while -- year have not to of

pharma having business, that not guide we work combination X. X. able we in to Phase I was. with But able it’s clinical just information Phase when think we’re growth not with where about them a and suite be retool going they of exponential what a their quote, assays, really the, offering it Phase vivo we vivo, services we’re will to ex their We’re in some give to pony, before, one-trick them using actually a that help a them that at we’re in that of to talking look be but looking other X And and still so that’s was can thought booking to that

now. underway that’s So,

together put a go As we’re of rolling products. some these of the and out customers engage services the ex platforms, and basket to platform to try pharma some co-clinical actually vivo and we’re these other out on of working

Paul Knight

bank. be terms the and And the the would last number is tumor to -- goal have your Okay. it your then, -- do want regarding would bank Are what regarding in you further for size question do bank? in this I the you annotation year? What of what increasing of of the of

Ronnie Morris

couple bank, So, the we tumor had shift cancer last increasing very of where of years are in cohorts very now patients. of a unique bank to we’ve in only our tumor build terms over interested the

of or or lung type it’s cancer cancer. every type, of We lot have breast whether tumor cancer ovarian a

them of a stream; really very, we have, of broad with very is add are hard large puts bank. work we our to the of well a doing that annotated What because to in really do and position network where a competitors for really now our can all have with get none to do are academic just to we’re our companies of that pharmaceutical can unique cohorts looking able be that We interested centers grouping that. us accommodate that a because any easily in very that

And have resistance of combinations So, pharmaceutical those we specific developed trying bunch that the problem. to are need patients, been two drug that going that now different to on of or who have sets are attack companies after patients resistant or they unique patients very those a drugs might one drugs.

year. or very any But, or cohort being or of seen probably X patients -- build that set important couple that of models. We’ll if we’re So, interesting much X a get a we’ve with about those a want very lung have And build XXX mutations, or we Because get we we work find colorectal which more do so if only wouldn’t we can X in another can try patients. models to garden-variety this patients is the cancer, models even and of work got those to pharma right XXX can X laser-focused in. what building. we we’re to XXX XXX

be how forward. we So, trying laser-focused going bank really to build we’re about the

Operator

questions Ladies you. over queue we gentlemen, to management in back this Thank floor like no further the at for and have time. to closing. turn I’d

Ronnie Morris

you much for joining very call. us everybody earnings Thank our quarterly for

way the to you. quarters. about everybody. Oncology, more good good come following forward excited with Have really months a sharing are things in at We’re news good evening going news the look And we the and to Champions

Operator

Thank you. does teleconference Ladies and conclude gentlemen, today. this for our

You participation day. disconnect and time. your this may Thank now for lines at wonderful have a you

Champions Oncology (CSBR) 13 Sep 182019 Q1 Earnings call transcript