CSBR - Earnings call 3 2021 | Champions Oncology, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Champions Oncology Third Quarter 2021 Earnings Call. [Operator Instructions] And as a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ronnie Morris, Chief Executive Officer. Thank you, sir.

You may begin.

Ronnie Morris

afternoon. Good Morris, Oncology. Ronnie of CEO am Champions I

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

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

during on available reconciliation XX-Q discussed Form XX-K. A call on of may factors financial the and the could that results cause financial available that information GAAP our Additional to is measures non-GAAP measures differ to in release. Form be is earnings

this execution throughout and momentum vision Overall, year. results successful the we've that quarter's reflected the of our positive of continuation the strategic building been a

services Our future investing to revenue as we grew million well our growth as for $XX.X opportunities. expand continue as successfully to

quarter, last SaaS our Bioinformatics, announced we of achievement a proprietary launch the for know, you As Champions, Lumin platform. significant

to data biologists and publicly discovery As available combining our in analytics programs. a unique and sets a developed by their development reminder, with large Lumin leverage computational provide proprietary tool was data to for

and add tools to enhanced analytic the well as We continue additional to platform. as functionality, visualizations data

visualizations in provides As recently proteomics understand which addition analytics announced biologists relation effects to and with of an module, proteomic to genomic unique a the we example, characterizations.

considered with existing software, new in we development, looking its to too have still increased its is successfully project our While stage, be revenue to the our sales early and we both quarter. and been still the It continuing Lumin are and feedback is has launch software in the potential our positive, invest to from of adoption our extremely customers early this license but customers. contribution we'll Lumin broaden

to platform. to Turning It contribute growth. expand our meaningfully to Vivo and Ex revenue our continues

historically partners of at the studies we this with have perform year, fourth of tumor solid quarter. Vivo goal the throughout in-house the worked to start with our Ex we have bringing discussed the As work

performing started Champions. work and solid at tumor Ex track on have are We Vivo

We we year. control. our cost the benefit platform, the and and that believe we revenue as to expect to continue our contribute Vivo as from fiscal growth comprehensive greater into to head meaningfully will Ex next lower expand it Furthermore, we unique

our and in regard with for cytometry the our and bookings With assays regulatory our specifically biomarker histology, flow line quarter. to were expectations

recedes COVID's clinical As clinical our negative market. regulatory optimistic levels deal decided grows, the enter will the impact first cautiously reach on we our trials remain flow and when services we to anticipated that

in will biomarker enable bid work expand forward global market look over a opening In quarters. lab which business of expansion our We the be months, in our order clinical available Europe, us opportunities, will Europe. performed in we coming clinical to next continued to being trial the several to additional on

development our the in we On investing the of data offerings R&D enriching within front, and the our contained models. are service

As characterization will tumors, the our mentioned bank. enhance tumor we earlier, have uniqueness which of value only begun our and the of proteomic further

for some streams. and Champions the transition coming new new will in anticipate opportunities further we that of R&D will reinvesting our to as that services be Over quarters, we projects revenue strategic lead profits we towards

opportunities. summary, third for successful fronts, multiple business service while executed future In we to grow continuing also had quarter as revenue a we our on investing growth

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

David Miller

Thanks, Ronnie.

Monday, be will with filed March or SEC results full Our on before XX. the on Form XX-Q

million $XX.X revenue increase or $X of the record million quarter $X.X robust was million ago a third Our in a XX%. period, year to year-over-year compared

over fluctuate noted revenue we've on timing study of the the quarterly As based years, completions. can

early did pulling into This some from scheduled QX completing quarter, we benefit QX. revenue

to income of recognized period, in XX%. million an $X.X we income of $XXX,XXX compared depreciation, increase ago and of the compensation stock-based Excluding year

operations from for cash basis. expenses, the and year a on GAAP comp of $XXX,XXX on in ago results stock period. $XXX,XXX including $XXX,XXX focus will totaled depreciation, I our resulting to now noncash compared Our income quarter, the in

gross in million increase the year, from sales XX%. compared the up of quarter of quarter to was year. million Our year-over-year third last XX% margin XX%, $XXX,XXX a in same $X.X $X.X last or was period Cost

As discussed service growth. top earnings partnered specifically continue companies with Vivo prior on Ex our our expansion to the to of calls, drive expedite other to our we've line offerings, platform,

the accelerate While it these margins rate, on upfront the partnerships enabled we business growth only our on when as completed. recognize the recognized our work pressure while us put revenue finding is costs is to

that were this as I our materialized as lift that in recognized, improving received margins I'll margins our XX% was highlight just true revenue previously, a the would this quarter. higher we margin, which mentioned, indicated norm. in-house, quarter see an related margin above fluctuation. as Ronnie work out well specific generate traditional margins taking the smoothing which we future Vivo higher the But most reported Ex as this importantly, in are Ex as Vivo will the

XX%. the or investment expense $XXX,XXX due increase and to year the proteomic characterization expand increase period, product an our development compared to R&D including of ago our offerings, $X.X to of an in was bank. $X.X work The enhance continued in is million million tumor

due invest compared efforts. sales to Sales increase million an to XX%. last million or was of our increase expense marketing to compensation-related we sales marketing team in expenses and The and year, expanding continue $X.X was in $XXX,XXX as marketing $X.X and mainly

increased compared ago to year million $X.X $X.X to the expense Our in G&A period. million

given As million, million and a leverage increase increases of jump. cash-based compared XXXX a $X.X in in modest remained revenue, In other of the percentage flat our fiscal grow. and same our expense in total, of $X.X to the R&D as third year, $X.X expenses, we greater revenue were million we at quarter of our expenses for anticipate XX%, $XXX,XXX increase G&A last period consisting an approximately

compared same cash. with balance year. in to We last Now turning million to $X.X ended quarter million a the of period $X.X the

cash net quarter, via was breakeven. the activities operating For from

this accounts by During we result. which the quarter, payable reduced million, contributed $X our nearly to

over disbursements capital accounts, cash quarterly from in anticipated revenue the the of our an in variability operations on should growth be increase overall in from coming operations receipts working to due can quarters. basis there lead to cash our While directionally, a and generated timing

remains sheet have Our strong, balance and no we debt.

was a very a and new underlying of comp for it growth. we The of are revenue stock new core revenue, business products net record $X.X hit depreciation, excluding million. our and summary, solid, contributing our strength profit successful We had quarter. our In to and remains quarterly

Overall, our promising. long-term prospects are

quarter, earnings As currently in occur will our call next we're July. late year-end in likely the

now milestones significant for again they with our on questions. call any to to your the open before our you We're next and looking would disclose call. year-end out occur will speaking We year our XXXX closing forward call. should fiscal like We

Operator

is first Hewitt [Operator question Matt Instructions] Craig-Hallum. Our from with coming

Matthew Hewitt

on Congratulations the strong quarter.

curious us past regarding The of of first you if us help Obviously, lot excitement a that platform. garner Lumin. over on anything that there's couple maybe number you've as question, that any number customers, could would quarters? of for of that traction or metrics the a kind update I'm building contracts just the of is seen

David Miller

Sure.

announced same So last customers. And couple our signed I the we this call say we well. a we that I did of quarter, that as on think would dozen new

gain the previous quarter, traction, same we've that the amount to we're et did we cetera. but continuing certainly continuing So basically to grow, that increased by

Matthew Hewitt

flow on business. maybe an And cytometry the update great. then That's

is quarter success be how had deal. completed, signing cadence revenues? any pipeline that that was contracts it those to we obviously, Have as you they're had thinking should the more a Just the building? you when ago, signed And contracts? two get or you your of How given about first that's recognize

David Miller

Sure. sorry. Okay,

it's more have flow this -- we expectations call. signed And -- quite contracts our the line it we when believe I in has flow yes, So with falling first indicated certainly announced ago. more time Ronnie just on the some our quarter.

really I we've more the the discussed, clinical market see on and It year an studies based continue the will contribute trials, becoming we of is meeting expectations. to coming sign. in our more and number clinical robust, impact XXXX. our Certainly, trials And we're seeing know COVID so that revenue which and pipeline we'll beyond to fiscal to has on certainly it

Matthew Hewitt

hop it. queue. maybe and back it. And then in for X more Got the I'll Got me,

last investment with would generating about you're And you're a talking expect from From in an First, as we on expectation the Europe. adding you call new then mentioned and as to proteomics. I what going time a how that investments should quarter, a expansion, making, you're expand from return? be looking or that standpoint, is thinking far modeling period at spoke is least the about when going a of perspective? make you be Lumin, salesperson to facility be you that earlier certain about like the also to your be a now you particularly perspective, hire Or this by you know some that headcount to there

David Miller

-- some hire we when that, -- you new a fine. from So oh, take

Ronnie Morris

go No, ahead.

David Miller

No, no, no.

this one. take You

Ronnie Morris

Yes.

different there's say, I areas there. of would that So Matt, couple a

are the there's capabilities the States, it's So want because on contract to to the some versus samples as of companies the easier geographic international, Europe U.S. of for patients take pharmaceutical both supplier bidding the well lot expansion a from the the the have a don't the and as have United different EU. from to if we're trials win us so a for we clinical lot that

So an our that's just of expansion abilities.

that have the speed. say In people but machine just we much wouldn't quarter first see or expanding We of pretty close to immediately, we within I terms in, a contributing. pretty our terms they're well-oiled people up the getting training, of pretty team, in bring two, that

a somebody Again, contribute. timeline and obviously, between But time the have having quick more us, the they more on board contribute. we fairly they're with them bring

Matthew Hewitt

last one, queue. then And one I'll Okay. hop into back the and

quarter, some in previously. benefit third were but the also you're few and this was pop contracts gross these I that from there timing in-house, completing services starting big of that the Regarding expenses contracts when was incurred bring the to the think commented the of versus in margins quarter because the you a of completing some

that from When you QX? quarter you to it about QX, a gross how some the see of is gross QX fourth bit the in and business fair margin? be closed we we say maybe QX, likely look little in given thinking should back to before pull another start Or at margins that pop

Ronnie Morris

a that's think I into small get could got great as this other of I certainly, expansion summing a would which indicated. we way services margin. anticipate QX higher a that up I -- see But boost margin in higher with quarter, then we are and it that we pullback

Operator

[Operator like make coming time. any end we Instructions] remarks any I'm questions concluding program? additional before in at today's additional Would this Gentlemen, not seeing to you

Ronnie Morris

I for Yes. want just call. earnings us joining thank quarterly to everybody for our

several As have in as I last steady over years, continue our laid the progress our we to with the think strategy. make out quarters, what last and we several vision

the excited in evolution discovery what and expansion be about to oncology the of doing the continue space. We we're

SaaS a evening. next next into with you're now data us. Have First, couple We quarters, for to of services expanding, look you, update everybody everybody, forward thank good to And a the platform. over our using continuing joining the year.

Operator

Ladies gentlemen, time. for today's We your thank participation, you your concludes and this this you at teleconference. may lines and disconnect

Champions Oncology (CSBR) 11 Mar 212021 Q3 Earnings call transcript