CSBR - Earnings call transcript Q3 2022 | Champions Oncology, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Champions Oncology Third Quarter Fiscal Year 2022 Earnings Call. At this time, all participants have been placed on a listen-only mode. And we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Dr. Ronnie Morris, CEO of Champions Oncology. yours. is floor the Sir,

Ronnie Morris

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

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

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

financial be Form Additional in our available during to differ XX-K. reconciliation to financial information A is GAAP on may factors that measures could continue measures of the revenue earnings we we our Overall, call and quarter the non-GAAP release. growth. execute XX-Q discussed record results to great in and that is available cause for had we in had plans another as on record Form bookings which

our we call, vision and research existing to uniqueness value data of oncology our platform, our transformative on into new our next years, data. discussed which longer-term opportunities related will while services that and high that business presented year-end I highlighting leverages strategic several affect we indicated would continue growth. our the also the expanding for our As grow TumorBank

executing continue very about it investment for to existing plan, long-term excited thereby as on quarterly continues core to be business record set fund our this our to revenues, While us we enabling the future.

biomarker oncology which include services, services. research our to continue our ex of a see vivo vivo, in We and demand lot in

platform either by Through Workspaces through SaaS Lumin. with have Lumin genomic envision derive two translational themselves and ability of proteomic, the company our which to Lumin, Lumin the a to insights three centered it are Lumin In the advance analyze we to sets. will consulting data overall analytics Lumin Acuity the that the the or message unique query the clients our the transcriptomic multifaceted launch throughout to continue growth we us is years. as to data our by next companies initial have created and I success year, conveyed through data to reiterate interpretation well of by We platform, around all, we data services. a data software as encouraged use contributing from in

still to future it projections regarding of However, early any magnitude make too the definitive success. is its

to continue by our be discovery of excited platform. We build-out the

showing and We look still our forward programs cell the to While financial products as while approaches seeing early, a receptor perform GigaMune. with continued our discovery pipeline. to effort. we platform T research In during forward discovery through services quarter, come establish proprietary partnerships of therapeutic our more our how to a our simultaneously internal continue to from unique value value we these and delivered are seeing co-development capture look add promise validation emerging that therapeutic Innovation partnership our the Studio we oncology results with business to has summary, how expand data and Fannin External the create. partnerships strong to third computational we

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

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

David Miller

Thanks, Ronnie.

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

year of were quarter XX%. compared or an revenue $XX.X results Our million with ago $X.X $XX.X in million record of million financial to third increase the strong period,

guidance target growth revenue XX% our for of higher year, of full year. the to XX% XX%, on is provided at for the For end putting the the us

compensation was EBITDA, quarter income operating and $XXX,XXX excludes Our the million. stock-based $X.X for which was approximately our depreciation and third adjusted

the period XXXX. ended do XX% we as XX% on adjusted our was XX, third EBITDA, to compared quarter Focusing gross margin January for

of call quarter XX%. low, inflated that cost resulting in sales was atypically quarter out our year, margin the of on our third pointed gross As last for

not downward more representative is improving As is trend. to XX% period months investment growth of We're an representation January model the accurate such, nine Rather, a our XX% same is shows the adequately current of ended being to comparison support and quarter's a XX% margin XX to margin operating realized. for the last leverage the compared as year. past in seeing our the gross

million million increase million gross an and continues $X.X the our meaningfully in supply contribute increases from was third be from year expense $XXX,XXX compensation, products of in to to driven was with increase was million business volume. of Additionally, The primarily expenses the R&D lab in mainly margin due the from $X.X total room $X.X in sales growing margin will study quarter cost expansion last as likely to revenue mice Total period, our or compared for resulting additional compared approximately future. improvement more year. our core ago higher $X.X XX%. to

We short-term of with was reiterate quarter, flat the we marketing results $X.X additional operating our investing the As an or anticipate X% million $XX,XXX over message R&D compared the that we in to We our be so the we long-term. ramping indicated, period. will some would relatively offset trend to our for spend remain Sales in growth ago million R&D growth long-term sacrifice but up platform. and spend, expense the discovery also project revenue in positive our increase year opportunities. to continue that this $X.X profitability expense

period expense XX% in to the Our cash-based G&A IT infrastructure year company the million expense upgrading support the compared year. compared to expenses invest XXXX increase quarter primarily in third and $XX.X IT our an growth. quarter, were same compensation ago, $X.X of an fiscal $X.X for $X.X million total, last In our This to million was a as to increase. we million in for was due

fixed results we to the the operating cash-based million $X.X generated balance continued prior to approximately the the and Net million, cash. operating on cash turning the to that sheet, had balance cash We revenue cash due our doubling record operating had laboratories. will a activities asset strength in $XXX,XXX leading hitting strong for over our end to of summary, long-term, cash the current million. At growing of likely $X continue $X.X period due from in purchases of from $XX.X Now quarter, increase investing approximately financial an quarter. of new for to used our million of balance. activities improving Cash was nearly a a bookings. we was anticipate cash quarter, from grow generating In primarily activities

other adjusted continued $X.X Our in expand business, streams million strength we're while healthy research we a revenue platforms. positioned with was EBITDA service the underlying our and and for our revenue growth

it's open company's your the We questions. July. late for success to like forward will year-end, about and which would are now call excited to in our the call, quarterly look since our be continued next We

Operator

and now Instructions] for coming Hewitt ladies is is gentlemen, floor Group. questions. the from Capital Matt Certainly, [Operator question open Your Craig-Hallum from first

Your line is live.

Matt Hewitt

for that on There's are that lot seeing quarter, new recently to you're about as some questions some the services? pharma and look stocks But congratulations customer what off, the been of health the Well, pullback of biotech of challenges? could basis the the Or end speaking you base, up services, the about standpoint. signing a and a strong mean funding regular thank demand for for here regarding first are your directionally customers on from a are you of questions curious you seeing you to strong those still your upper at pipeline. range. and in the of pointing the the I'm given

Ronnie Morris

– we're services, bit lag We seeing still clearly, for little downturn. a could through be that understand Matt. there going our demand We're strong biotech and is a seeing a of

robust visibility where good stand, for a for services. So right quarters. of we there's have and of lot blind to our pretty is that a now, not very we're of we it. We just feel But pipeline as couple demand the

Matt Hewitt

the excitement almost. over the past Maybe platform, up there’s that number an update years licenses number signed now customers obviously, X.X That's a that great. And lot then for regarding of platform? of or the Lumin have of there been on

Ronnie Morris

Yes.

we the I spent better it out, I it was – launch. of we part think August, but last a think, soft So rolled

and say I our about more year of from less a months So couple launch. true we’re maybe would a or

that’s I that better announcements a of some And about we Workspaces there. we’re think about are where is year I What different think coming Lumin Acuity out these there’s last of Lumin a play. couple spent our customers. I and needs of learning finding into think part

So tool. about the one, really Number that. think year we couple the I and a say last spent points analytic just platform of quick improving I’ll upon the

users our that robust and year think the a analytical we have than tell ago. I you even that tool much is would different it did So that looks more now very

for data Two, actually also as back and and and the the necessarily segment a translational do insights, that their just wants translational really with customers to to try studies. having that tool to continuously upon to data that. not software a they analytical analytical their work, for extract of I itself. get think come And own the – platform but listen to to improve there’s tool certain our realize use Lumin there’s that from extract we as use data population data, the use Lumin that their an want that we’ve I really analyze to customers actually think to to So

path, there that to continue realize So needs. different are move down as this starting to customers groups we’re with that that’s – different we of

very, have So did that we also both a them. very changes a we’ve just – sophisticated in We’ve say of I license different would changed low. lot gotten was more of regarding base

of months We calls people we that different trying buy I modules. to ago Lumin loaded we get fully this two, to and and ago upgrades policy, we’re platform think changed now get couple and were the selling where get a in three on a trying then them just them to used maybe mentioned to recently, just model. to

of shaking. kind lot there’s compare it’s a of moving hard So been and because to

now growing, have that Overall, we’re We seven lot. that ago still at the of there. lot adding still platform think a a brisk are but where only there’s taken were rate is We six, because months a we learning probably still value subscribers, different the we attack.

where of lot a improving it’s growing good product the still hearing still lot. customers, comments early those but a from we’re on stages We’re positive in our

sell some the also changing customers are. trying needs the still the of understand way offerings to and We’re of we and our what it

Matt Hewitt

internal your And the really one over I’m should should coming Alloy, you. at we you helpful. and programs, about three more anticipate as just I’ll hop curious And additional and Fannin Thank That’s what I those how GigaMune. partnerships? look last you’ve partnerships the maybe signed years? on Thank and cadence partnerships, thinking quarters of be kind one then importantly, into we And you. queue. guess, But back

Ronnie Morris

Yes.

novel is all And of that discovery tumor looking So as the at receptors, where platform. expertise of same unique leveraging partnership we targets, the bit a autologous really area partnership. for off would three cell in system platform a to has a immune GigaMune receptor, the the infiltrating with a discovery who their to lot partnerships and ability an different. platform that have we’re in receptors, The a of I that’s T-cell the define tumor we patient’s little lymphocytic partnership really T It’s figure the out are platform. that a so discovery based with able have both GigaMune novel be

We’re be technology. able target. to is right discovering The the identified receptors, a unique We we’re a identify we’ve a a discovering novel type hit partnership to that where on Raptamer has partnership to a targets. of based Fannin needed platform Fannin target. compound

of Boston, targets, we’ve together, that molecule. again in to out how attack so The target. target, and an we do work. figure our an us of for where a bring that partnered And Alloy And go target. develop helping one and that is taken they with group lot build And the them they’ve going they’re incredible based good we’re to antibody

a of the we types and day, collaborations, in finding different of we’re continue some And only kind bandwidth there’s "partnerships" excited are and all that And forward. data different continue the some amount unique end really about our we amount have targets platform are the of we targets. So certain to of of can from a be how partnerships. certain

we extent, As careful. you have to heard from but to be certain a fund also David, this we can

right the most So see. that taking targets we’re exciting we now,

to are them a true lot doing that targets. work of validate internal sure make they to We’re

either We’re the right it’s to building helping – compound. appropriate the trying partners, molecule or find right find the us

other of find just trying be Some areas. who for it’s to best partner would the

for what have. right that’s now, we So

any going We’re will forward. that where know coming have excited this moving about announcements we’re we be don’t I quarter. And more to

Matt Hewitt

for very it. you update. Thank much Got Great. the

Ronnie Morris

You’re welcome.

Operator

back There now questions to ahead. I Instructions] further host closing go no remarks. in the queue. for the are conference will [Operator Please hand our

Ronnie Morris

Thank you much. very

It’s So our earnings for us thank you joining quarter. for quarterly an call. exciting

always, to As grow. we to continue expand,

conference call of conference forward look opportunities everybody the and our on we We’re it – end very excited be after our multiple about the to fronts, call. on year next updating will

have you. everyone, evening. that, good with Thank a very So please

Operator

Thank you, event. and concludes today’s gentlemen. ladies This

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

Champions Oncology (CSBR) 16 Mar 222022 Q3 Earnings call transcript