CSBR - Earnings call transcript Q1 2022 | Champions Oncology, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Champions Oncology’s First Quarter Fiscal Year 2022 Earnings Call. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host Ronnie Morris, CEO of Champions Oncology. Sir, the floor is yours.

Ronnie Morris

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

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

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

transformative measures information that be non-GAAP the today financial results will earnings out be to recently financial that few may could next start Additional our during end six the I by pointing to strategic that fiscal years. in the available our On our GAAP brief, of is on prepared A available XX-Q Forms results just vision reconciliation factors comments discussed we for release. ago. for call company our update call, and cause in weeks will the differ as and year is Form relatively XX-K. that measures provided I outlined

to fundamental the progress during on execution status While and we unchanged. message continue this the quarter, first remain

oncology continues accelerate Our an biomarker opportunities investment will which of other and revenue vivo long-term deliver array extensive along in assays, vivo in includes studies, grow results, ex supporting with and that successful our services growth. our to research business,

our out software Lumin, initiate operational capable continues our interpretation be It with and and approximately factor sets in year PDX therapeutic have tumor efforts. of quality is data data transcriptomic our end, high discovery proteomic, platform, platform new software real one our in platform and platform bank genomic and rolled that this we analyzing our To scientific time. expertise scientific expand laboratories. services software come differentiating in revolutionary enabled Our tool to engage studies and to scientific combined from data a ago, our data, that that our our unique excellence to us provide

to of this launch licensing been platform initial results a our its and are model using the promising. have customers We SaaS

user into development, platform to datasets interface. our invest feedback integrated have the as in continue its adding as improving such customers We we and

to packages. satisfaction We appreciate unique the sold customer users, including and disclosing of it's conclusions definitive look early forward about renewal have interest We XXX draw Lumin several rates. licenses but customers over to We and over still the of more our the premature year. to from level learning multi-state license course

have As discussed internal computational we on novel, team well, targets. last to discovery developed our as call therapeutic discover an

that models Our dataset authentic is tumor computational a a tumor with approach leverages more cell more complete from and heterogeneity. derived biology

or targets analysis when computational using a missed other overlooked are our As result, datasets. that identify

than through six have are now We validated more advancing targets pipeline. development targets and we the those

are targets. the no evaluating is strategic these target to to one advance and the target. regard development each most determine of that single to There with path approach advantageous We

validated to want we each internally whether assessing license, are while We or working to partner, target add targets develop pipeline. our

in partners potential are these and advance ways with to of discussions We some targets.

quarter, to our quarter first expand been create. more financial services produce simultaneously And capture value we timeline, the next In has exact to data oncology do I an continued while provide research over that to anticipate can't from progress Continued and the during summary, two. we we'll proprietary announcements have or while made. results, continue share I business the positive

Our pipeline. advancing innovative to through SaaS business and the we're targets therapeutic continues our grow

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

David Miller

Ronnie. Thanks,

with XX-Q results filed full on be later Our the will today. Form SEC

period, in million XX%. revenue was compared of first an year $X.X or $X.X Our increase to ago million the $XX.X quarter record a million

$XXX,XXX ago stock-based similar compared compensation period. in year we and a Excluding $XXX,XXX of recognize the to depreciation gain of gain the

Total for such quarter last in results, our was first cost last year. compared depreciation, quarter was gross to of first on Focusing excluding XX% year. sales we million million non-cash of XX% $X.X compared stock to same margin the same and do as our expenses, as comp $X.X period the

prior several gross our pressured enabling on quarterly growth. discussed revenue we work calls, to margins outsourced our As us were accelerate some because lab we

have year greater platform. for we're end was investing growth our The term increase outsource and of on Sales year intentionally indicated costs and up in ago, profit potential. net due short we compensation related to is we call $X.X to compensation, million of R&D provided rent sacrificing million extension to compared revenue increases in in year. the would ago to increase brought or million noting of mainly internally. but not investment flat our $XXX,XXX with QX our cost the the our extension marketing or growth, in and $X.X sales and was in and period, is target that with expense and was R&D all $XXX,XXX is profitability year The generally resulting discovery It ramping our long-term an adding and XX%. marketing of result expense XX%. from million gross an margin. in supply period, data increase guidance bank The $X.X therapeutic million line most from our $X.X work in our that by We expenses, compared revenue offset investment, in a where expenses volume increasing team. sales more improvement of study in approximately the in reduction year-over-year the resulting R&D $X.X sales of be in revenue, in than last increase lab and The lab tumor worth our

salesforces. fiscal cash-based $X.X our million last of year, increase. $X compared increase an million for stemming increase XX% in due primarily approximately XXXX, related to million and investment the from million $X.X a our was expense or million The IT in quarter an in XX%, for compensation and $X.X the of first same the period expenses. expenses In increase a million to R&D total, increased expansion of G&A compared with quarter Our was $X.X the $XX.X to ago, year were at

cash. fiscal to million of sheet. cash the first had $X the of At turning on we end balance the quarter, Now

Cash was in investment the of due purchases our fixed generated $XXX,XXX. European new with For asset including million operating lab. for period, in continued activities from along primarily used the the laboratories, our software was to platform, net activities investing cash $X

debt. no we In new quarterly have hit time. a million We summary, $XX first record for the for surpassing revenue,

Excluding in stock comp profit generated and an operating of depreciation, we excess $XXX,XXX.

platform. our see business continue strength contribution in increase and service We to software our from underlying income research

We are call in excited the our look and to of update company direction forward the about next mid-December.

for We will to questions. your now open call the like

Operator

from with the now your [Operator Hewitt Craig-Hallum questions. is floor for question Please state Instructions] Capital. The you. Thank open comes question. Our first Matt

Matt Hewitt

our feedback for for Maybe customers early with days that in taking having they've you those you you've incremental getting have from but the those and of renewals, have up Thank is been the any still realize discussions first it's questions what been for Any been that the and resulted that update. up, renewal? I on expansions?

David Miller

Ronnie, you it. that? Ronnie got might take

Matt. Sorry

Matt Hewitt

okay. It’s

Ronnie Morris

Hi David. Hey guys.

disconnected I call. from Somehow, got the

I'm So, back.

Matt Hewitt

problem. No

Ronnie Morris

Hi Matt.

Matt Hewitt

I'm you realize heard not but it's I if sure Hi the early question, there. days.

about they've have a them feedback year? have what first If you they're renewal, any saying of not come platform, those for up but expansions been could just provide any us as customers maybe that after renewal the back signed, that on

Ronnie Morris

Yes.

think is it I days. we've literally early said, as So,

we have that ten were I think up contracts under for renewal.

XX%. small numbers. over renewal again, our was about we're such But talking think I rate

conclusions draw to any So, from that. it's hard

is us challenge our we I users with think the continue to in the general to for – now very active get comfortable just platform.

people ones getting the that seeing use to think challenge in to all are the the and comfortable any new I more just are the understand is software becoming really value. capabilities. Like it

that sure tutorials we the effort and they So, using feel are make we're comfortable giving sure spending that making to them it.

value. think get are challenge of it is the ones using been have I just more more So, the seeing users And and our the on be a that to regular more more to now using it basis. definitely

Matt Hewitt

it. Got

Okay.

was Lumin launched? that traction itself of the the the things to Has kind to you platform. that Champions a the the Are essentially to seeing was of services that? software added component with with addition in contract ability team, any One

Ronnie Morris

that's we certainly a to and value-add think has that customers. traction. long-term driver launched Yes, are revenue and a that our for be we And going seeing big

comfortable important our into data. little a for to So, it there's a with hard because the I dive software, that they of it's realizing as it that But do do. to want are deep getting them they lot analytics a they're requires think, of more

And are starting with that we are customers so, traction platform seeing the the to more. utilize

them come to up and and seeing are acuity We we're it. the call them it seeing product for us signing we

Matt Hewitt

the there sign mentioned you that end that up then And the contracts European started to running, have lab facility? you using regarding and towards some Okay. is

Ronnie Morris

yet. any lab The is So, signed we haven't contracts open. international

the two regulations. of We over the are we sure next currently making all process the are and compliant certifying month with or in

we're So, of now. quarter, fully there. probably established talking by customers the will end we to this be And

So, be having certainly by to the of to serious in the – proposals. we expect end year, the be

Matt Hewitt

great that's hear. Well, one in I'll from last me then to maybe hop back queue. the and And

maybe the helpful. there looks details would flow be you. update Any how like? on business, pipeline progressing, cytometry Regarding that's that what an Thank

Ronnie Morris

general, I biomarker doing is well. the think, Yes, business in

always I to a wanted, the slower boost it still the wanted lot to it States. having still the growing. it the years next I of to drivers help be going think, couple studies continue of continue of larger see in we we've because have from major can about the trials, think We is to growth. the thought from of than was as very to site, of United of some patients Europe – see international abilities we've site be opening talked see United only that both Certainly, to initially and the over larger the studies States. A we limiting really one but European to

international opening good site. we that help slower customers labs our think about excited built are and We've us steady that clinical really up are really progress. to thought, biomarker we're happy. the with business but going definitely first using making than it's and So, quality We

at we're So, where we're a we where well both going. are excited as things perspective, quality from think about as

Matt Hewitt

you. Great. Understood. Thank

Ronnie Morris

Matt. welcome, are You

Operator

question question. Hewitt, please state [Operator Instructions] have We from Matt your another

Matt Hewitt

keep All right, I'll going.

of you most because in in some seeing the One at hasn't a most decision processes almost come is the up well, decision-making seeing has the or for pharma It up things the for sounds been given on business, reporting timing. for the of part, the pandemic. but that's budgets of in been there very the factor one depending been the – the your clinical you are about, patterns that you? similar come What like stage doing are type things for are it's part upon has kind like that actually that's are you budgets of delays of company where a disarray

Ronnie Morris

stands a were we I from last where normal, of now, right there much year, that that and back Yes, strong, that see feel least as for pretty couple the things because seen slowdown. are of pipelines of our are we at months really perspective, business. and we budgets to fluctuation. But most of comfortable are a customers of repeat middle a our back a did say business just haven't the middle robust is preclinical, lot a it coming there's are would that pandemic, preclinical

In bit terms the newer a of into little we're scene. the biomarker clinical space,

pipelines So, those a to of it's harder for as us now. opposed ago of to couple gauge years how some robust were

different of gauge hard us their certainly it's lot it's of of kind but for trials, to to We're of a us about have talking that gauge activity. pipeline. an to level activity. So, active But level that hard we for companies

Matt Hewitt

you Thank helpful. Okay. very much. That's

Ronnie Morris

You're welcome, Matt.

Operator

doesn't look and Instructions] questions. have further [Operator it we incoming like any Okay,

Ronnie Morris

our great. earnings much very Okay, thank for joining quarterly for us Well, you call.

data our always our very really business. excited We're utilizing many discovery, excited opportunities. about to ago, was which what therapeutic software set services, services oncology data very as about our are engine strategy the out and data as excited We're build also our as well about with do years We we our analytics.

be excited partners certainly and of We're platform a that these it, working our the grow, things. is sign lot with different using all a trust we're So, who many business so doing to to value. has that us which we're excited continues

more months, we at and look of a and I couple news with to good everybody. for evening, earnings call. next Have certainly sharing next thank that forward quarterly you us over So, the the joining

Ronnie Morris	President and Chief Executive Officer
David Miller	Chief Financial Officer
Matt Hewitt	Craig-Hallum Capital

Champions Oncology (CSBR) 14 Sep 212022 Q1 Earnings call transcript