CSBR - Earnings call 4 2022 | Champions Oncology, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Champions Oncology Fourth Quarter Fiscal Year 2022 Earnings Call. [Operator Instructions] It is now 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 Chief is Officer. today me Miller, Financial our Joining quarterly us Thank joining our earnings you for for call.

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

our found for software system. unique invest within platform are product potential a growth. With platform revenue data services our effort available the data driving last on to of during Vivo Ex and core evolve our year's This uniqueness Additional on bank is and and have of business platform non-GAAP our That to another continued Overall, improved financial strategic we that the be and strategy. On We discussed I while to path unleash finding further our on that available financial strategic call platform, an we release. our could XX-Q call, to and commercial our measures our longer-term our our year, included analytics develop to differ our platform, continue financial outlined cause has progress, of tumor our on our and a of of measures plan. the expanded core core discovery information in Forms results we Lumin Form the data. will the expansion expanding strong we year-end GAAP of that vision, year XXXX is services significant successfully in related to factors this analytics. Fiscal earnings capabilities power execution our Ex in concentration from year XX-K. A multifaceted deliver the regards and vision believe a reconciliation with embarking may emanates continuing expanding Vivo that had the business, drug highlighting data represented results. on that significant and our a to

as designing been have reach view we education slower the expected. of renewals not brighter reached broader product and to are add contributing growth this than the data and continues to phase sales SaaS rather to our as to analytic growth Lumin goal. On we as have element infrastructure SaaS phase, a note, cycle and next and a that We than Lumin achieve platform required strategy Our value business establish Lumin allowing quickly offering. anticipated, we life key product to the user offerings, a as the to other a strict their the us

to still the early definitive future growth magnitude and success, company the regarding overall several next the platform our years. its contributing too still any make is to projections of it the of we Although envision over Lumin data

our are through discovery partnered therapeutic encouraging internal stage well lead with data. preliminary the platforms, discovery Regarding Fannin progressing programs well our as program innovation with as the

year, been Our a have these hard. discovery period, the COVID and computational with preclinical of discovery especially provide challenging pandemic This the establishing platform. years biotech has evolve the programs, upcoming now which tools development sets development. The downturn, therapeutic demonstrated comprehensive and last required with move to first to on to substantial progress exciting our to continue our and, value we'll by data as focus therapeutic hit several sector programs the economic

grow Just that through optimistic trajectory we will current are upward we as continued cautiously environment. have we COVID, economic through our the to continue

excited and optimistic bookings strong services robust, continue growth we can and continue to financial business, our which about year. To annually and are results. focus the we be coming remains that has growing our summarize, we revenue provided pipeline in Our continued

our strategy. anticipated remains than of longer-term but Our SaaS business has grown slower part

very the our year. stages, initiatives. potential They optimistic we creating development are outlook growing excitement for early in we're throughout are the still the this excited and into company target as head in we In drug its AI-powered about While discovery of general, organization.

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

David Miller

Thanks, Ronnie.

results XX. Overall, of milestones had full financial year be significant Our on we Form July Oncology. or SEC before XX-K for Champions another the filed will with on

$XX.X revenue in to for was the annual $XX XX% of of year-over-year end of XXXX, high Our XXXX XX% guidance representing a for and million to record compared growth coming million at our XX%.

On $XXX,XXX our XXXX depreciation compensation, depreciation, excludes in $X.X compared compared and a for to $XXX,XXX year comp stock-based basis, stock period. which from $X.X ago year XXXX was income operations the million to amortization from operations for was ago. Excluding of adjusted a and GAAP million fiscal EBITDA, income

Revenue compared EBITDA the in Adjusted was million Turning the breakeven to quarter. fourth the in to compared $XX.X million million an ago ago $X.X period, increase XX%. $XXX,XXX or year results increased to year period. the focus to $XX.X of

of prior Focusing the our million in on do quarter primarily cost related are XX%. compared we increase total EBITDA, million capitalized. to adjusted which $X.X as fourth was year, sales $X year growth compared SaaS on longer of a to modest The increase to X% expenses, was revenue no last

quarter XX, for was for to the XXXX. gross XX% XX% period the fourth compared total Our margin ended April

full margin to was XX% compared the gross fiscal XX% XXXX. year Our for for fiscal

in the operating led to improvement. As margin discussed gross in throughout work Vivo outsourcing coupled reduction model our with leverage the Ex our year, the has

for future. more be as to such the primarily the products with services from in will as to Vivo legacy meaningfully room Ex Additionally, higher-margin expansion revenue actually margin additional driven gross our continues contribute

fourth million expense compared year was to approximately For the $X.X period. million $X.X ago R&D in the quarter,

For $X.X stated spend, trend to R&D our discovery year-over-year increase R&D was to increase ramp We platform. million for year, the expense fiscal anticipate compared increases in in initiatives. XXXX spend target attributed are to our focused $XXX,XXX discovery up year quarterly in investing the our strategy to million The specifically $X.X R&D on continue $X.X with million the fiscal and XXXX.

and compared quarter, an million, to $X.X the the of year. was marketing fourth last quarter For expense increase fourth sales $XXX,XXX

primarily $X.X expansion the business to of was compared The ago million marketing $X.X attributed million expense increases to year the our sales and development For the in year, team. are period.

Our $XXX,XXX. was the of of business The period, was to quarter computing the compared primarily IT quarter costs compensation to due bad the support in G&A expense million $X.X year in debt a to for growth expense. of an in the $XXX,XXX increase expense increase $XXX,XXX, million the $X.X of write-off ago fourth

For IT to in company we IT the upgrading year, as was compensation ago G&A growth. expense and due million increase was $X.X to year to period. primarily in in expenses support the invest our infrastructure $X.X compared million This an

to of to expected revenue XXXX, Looking lower a level year percentage G&A anticipate decline. a as ahead G&A is fiscal and we increases, of

in with position on cash Now the million $X turning cash to sheet. a cash. balance We ended of year strong the

cash for activities quarter, investment the from lab $XXX,XXX. and For equipment $XXX,XXX, generated was operating cash in used was

$X.X a was investment For cash generated the was for million. CapEx by million, used operating cash and year, $X.X activities robust

ahead cash-based Looking over improving operating will from fiscal generated bookings cash year. to year the grow we and with anticipate operating that XXXX, strength in results, continued our activities

on Our We're allowing revenue over our planned guidance. Vivo $X hitting the our position our our XX% our revenue lab CapEx exceeded million Information investing million, we Ex our platform spend us fiscal range course revenue XXXX. the all, for growing $XX the range. is and to of top of our capacity in CapEx record annual strengthen expense is is -- to and reflecting automation as targeting CapEx productivity, another results fiscal and cash margins. In as reached increase revenue expected year expand XXXX year increase by in will

year, the both $X.X of profitable For with on EBITDA full we basis, and adjusted were million. GAAP a EBITDA adjusted

which the the capitalize strong, opportunities bookings hit as XX% on range, are milestones exciting we and annual growth to we ahead. of lie another remain revenue positioned year. Our revenue result new revenue will quarterly fiscal course in the We're projecting in the over record that

the our quarter to almost floor another already with we in first have our update Accordingly, X now forward report weeks for completed questions. results. We'll first when quarter. We about we look open

Operator

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

Matthew Hewitt

from Maybe, addressed areas pharma the funding their of not, seeing think biotech what peers a bit any in this impact? have bit slowdown you separating business? little of the maybe business are to your that and started you little some state but environment, a your Ronnie, of prepared do of small if in see your Or regarding is what you remarks, a you

Ronnie Morris

Yes.

we far, to so seen a the business. haven't real So, impact

we more been which they at we've what working statements of seem interested just biotech maybe We think But seen have many speed terms kind are work. their many of sign doing customers of of in is have years. little from and People certainly pipeline. for deliberation some pharma preclinical a I might these the and of in robust doing still work with to just work. a

don't really are see signs things down. I that right So now any slowing

biotechs, the or on being especially the certainly we more -- are R&D we we said, little I know of smaller are fact cutting of that as many a careful cognizant some back expense. However, are

of a expanding of offerings. to looking at from we're So combination more discovery more, the doing just is that. us of all stage always on late-stage our of a Part earlier lot having the services, efficacy it

more be slowdown we're any people, not more also why So probably just potentially we're seeing could for that because doing so...

Matthew Hewitt

helpful. That's it. Got

platform, strong Regarding Ex strong sounds Vivo the obviously, very quarter it and a a year. like

with you opportunity what incremental 'XX, growth help add opportunity market in Ex Vivo? platform the can that that expand at and the look for you to As drive to

Ronnie Morris

Yes.

or we current would kind So is our Matt, like at it, is version platform look platform. X would I like Ex X.X Vivo what I the a call feel way of Vivo Ex

I to capabilities, adding types imaging of Ex lot abilities think especially when output. and comes analyze to different our of a we're it Vivo

about associated unique So that plus understanding, well-characterized what is of people data a really Vivo know, lot have Ex with have, we tumor what we because next-generation of the in we're interested are you we're as them, excited have bank tumors. we lot a especially very platform. And unique a building is

in screening might will really studies -- then molecules have vivo. to this pharma And their customers hopefully, hits biotech confirm interesting be more do partners to more to vivo gives another understand in avenue studies So ex indication. lead larger where an the and to

vivo space, we're capabilities other ex lot space do for there's So ex that areas and within terms or we organoids with whether technology it's now for more could space. about vivo better us in others advanced. ex getting And of excited vivo the a the the is

to the way unique new that tools Vivo not whole assays we to to our about translates vivo So vivo. with but pharma Vivo the strong, Ex our biomarker also from way uses service Ex these our and how bank enhance to in is think discovery the they're core line, to going to all assays ex only going we're tumor utilizing discovery just excited use

Matthew Hewitt

one for me, one queue. hop Got in and I'll Maybe it. the last back

you of adoption that awareness drive Regarding to software we're to take stages. and Lumin, early market it's think going do platform? like still it What sounds increase

Ronnie Morris

that's Yes, a good question.

it's that understanding to -- of we a to can't bunch think it I And be for primarily in the but what of users we've everything it is platform have how is invested use people and have Lumin. useful a that Lumin. a really lot on people, learned that everybody,

things X and invest there's -- really it to think time we that the we it get with I in riding like spend not takes very with do need really users So a and user system. education them apparently to comfortable bike It's for better. to people, our more need time. isn't One, most

out up way world activities been biotech -- need scientists need We've of more to to their find development there. some just need the need to strategy PIs come and beef making out type -- and and pharma in a everyone business a have get we within we reach we feel researchers to to is to comfortable more the and Bioceutical our the program. And the that. up bit the training from want signing everyone. lives, to users little data subscribers data people So training a for from to to using We busy really with second to they incorporate Lumin program extract who do interested is are the need people to in up get it focused to who away signing thing for to up in more and just easier

were we constrained initiatives. resource to a do to and to ability business perspective of little from the need in do we extraction after data be new out subscribers, have going a both our and bit to of terms So development able both

So a it's I going time. to little think take more

understand adoption the we I to in. for on educated more from get we side users I to And to do development and some to that to our really to invest work think invest think to more on it's need more into build going to take system. perspective start more have and a system out the the and go get to the business people use really

Matthew Hewitt

progress Understood. And congratulations 'XX. in the on

Operator

questions further queue. no are in There Instructions] [Operator the

Ronnie Morris

Okay.

regularly us for the excited joining made evolution so about progress vision update everybody, X to year-end business. weeks everybody us. the then call. we to look So and the the Thank continuing much, again about on our QX really in an forward QX joining and Oncology, for thank We're giving you of for and about people Champions we've update quarter -- another about you

Operator

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

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

Champions Oncology (CSBR) 21 Jul 222022 Q4 Earnings call transcript