CSBR - Earnings call transcript Q1 2023 | Champions Oncology, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the First Quarter Fiscal Year 2023 Champions Oncology Conference 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'm 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, that those statements and we'll I statements. make results Before I forward-looking during will today's described from those materially remind you actual in could call

provided year over our available the of during ago. our Additional on investing is non-GAAP path exciting the be financial recently the that be update strategic that core discussed financial we Champion call fiscal call, XXXX, company I'll opportunities embarked pointing while is areas for factors Form update discovery. and to six start and measures and On such in on on included highlighting brief on just we relatively prepared out cause weeks results measures XX-Q Those information growing differ earnings drug services release. that the XX-K. as the other as data GAAP will fiscal to comments year-end I in our next could results available that Forms A provided reconciliation by today years. several for may in our an

was executing representative continuity The first strategy. for, while the quarter strive on we of our

times. that record during business, another Our economic this year robust. high extensive studies, The along in optimism array supports for vivo quarterly oncology with remains research our which with our and pipeline our services with these an to continued continues of in includes ex even pipeline a grow cautious vivo strength biomarker in bookings turbulent assays

the overall to support expanded and we have slower than vivo we and product invest Lumin offering to the we repeated platform, over anticipated, and provided believe been data Lumin data to year next revenue quarterly adoption play multi-faceted its a few years. longer-term on the growth ex our data calls. continue our strategy. The will to update similar as few We With still our over one an our development envision product is weeks has software and our lead analytics. will of regard our platform, a ago in but part

stage. drug well partnership biophysical favorable milestone Our series development exhibiting recently of our therapeutic Alloy with with discovery progressing are of a specifically, lead reached a through More the discovery completed programs a binding antibodies, this of evaluated from first this lead as selected conjugate, will potential drug specificity and platforms therapeutic antibody characteristics. A program. series potential be and a which for is candidate the many

to the results the continue additional other expansion. research goal phase. Over quarter, continued targets our delivered while continue and business platform invest with during simultaneously we positive In for the financial propelling the future will to quarters, data sets first coming services of expand establish towards we preclinical to development summary,

to effort progress, discovery target Our forward look and development continues we over of positive the course to year. the

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

David Miller

Thanks, Ronnie.

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

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

we the excludes which a Including amortization to loss compared year and compared of of the year ago in gain $XXX,XXX Our adjusted $XXX,XXX stock EBITDA, period. noncash a ago to comp, expenses similar was the $XXX,XXX $XXX,XXX expenses, of loss a in depreciation period. small incurred

expenses inventory increase of and XX%. our were steady compared as and adjusted up sales business The increased the from million on we cost do in EBITDA year. quarter service sales last to ramped year, over our total of volume an our first cost results, compensation primarily $X.X supply increase teams as $X.X in of of in Focusing million supply anticipation we was

quarter, whereas capitalized the our increase, the last in expensed same period the SaaS costs they to year. contributing were Additionally, platform during were

total gross of of XXXX. ramping in period XX, incurred and minor to compared the in ended Our are which our for revenue. deterioration advance the XX% our for expenses, as first July the was due A up to XX% recognized quarter gross the margin margin was

was For million in discovery period. million the first compared specifically R&D $XXX,XXX stated quarter, year-ago increase R&D approximately attributed $X.X The ramp the up to our our platform. expense spend in our $X.X to quarterly to is investing strategy

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

was percentage year increase was to of G&A The anticipate G&A in IT in expense the decline a for $X.X revenue of the million primarily as costs the term. million expense over quarter's due the long quarter, to [ph] compared the growth to business. the increase period, $X.X $XXX,XXX. computing Our ago of to an propel We

payout in cash, used payable operating was business, turning to accrued was quarter, $XXX,XXX our cash for and from used our was equipment. accounts and for and was activities of Now bonuses. year-end in reducing fiscal investing the $XXX,XXX lab the in Cash primarily primarily the ordinary of approximately including activities course new liabilities

anticipated the for with revenue, year. growing our $XXX,XXX We XX% the quarter ended the revenue is was of cash our expected with $X.X quarter. course In summary, year-over-year we and record strength began balance new and EBITDA growth, fiscal to in debt. adjusted the bookings and the the no million With the in year cash increase over

to direction the of excited update in in the quarters. the forward look are mid-December. coming company We and anticipate improving our results next We about financial

open will questions. the for now We call

Operator

question for Please Matt [Operator is announce Hewitt. from first your coming your pose Instructions] affiliation and Your today question.

Matt Hewitt

Craig-Hallum. Good afternoon, Research Senior at gentlemen. Analyst

mean, it's quarter. I'm given heard regarding congratulations of you we've a the little you give question, of that I obviously, noise us demand, kind the are biotech detail, that like seeing, but would be of funding. hearing bit maybe could from given What So sounds there, customers? good curious it's the all maybe obligatory if not and it helpful. a on you're

Ronnie Morris

let Matt. Yeah, me one. Thanks, take that

because, give with work hundreds complete we quarter hundreds customer. every you every a all hearing to answer it's obviously, as of we we're hard and but how that not of think I with to So biotech work customers, from

our mean say remains So that pipeline robust. I I -- would

is bookings certainly strong. to out careful. little there people It's engage for are more taking where Our people us. a There sentiment potentially bit remain longer a

I there's engage. work have studies reputation, pullback, strong about our it's I But when been think say, there. companies There spending from of I pullback. There's wide biotechs lot who the still to the especially, smaller thinking get I a funding are you helped much but certainly but from the they're there's work certainly such pharmaceutical think they not -- think of still as have it companies, out you case, would these and a still large smaller us more a times, with think in time been a of But group A biotechs, customers Tier activity. weather the I done. there's

eye So would there. are keeping we but an on I we out the optimistic, it, describe cautiously what's are we're -- on going way

Matt Hewitt

gamut, sounds and one really the on follow-up, end break have other? That's and you of pharma if kind the runs would lean this pharma. But look if it even but just down Maybe or helpful. approximation. how at a an versus as the know between your handy, is it mean, small biotech the like I -- spectrum there it's does other that way don't biotech I large it of does base, you customer the and

Ronnie Morris

general kind Tier and large most programs. the the we've little a biotech, to think type years, those way that XX evenly more center five, two disclosed in the fairly kind anything really -- haven't and pharma, We're times, groups. general, compounds Matt -- that's one other. you been in last As. would one look been throughout. say, not let biotechs But add top do six are runs XX the David of Cs will information. generally, that's I At it small the Tier it's or want one of I have of stage. But heavily or And that to and weighted are at I'll the part that? across the of definitely towards a over or take We, gamut. But different kind weighted evenly weighted David, it's The Tier or the Bs few for historically, way medium-sized we like the comment.

David Miller

Matt. much to there's add. I that really think Yes. Sure, don't don't

that I really of the a et There and customer, that wide distribution And sector. many is cetera. revenue we're entire in where we've the we have comes group not very across category, a nice terms think times any one sales from. disclosed bookings really ultimately the to beholden or distribution

Matt Hewitt

and great Maybe That's helpful. That's gears. shifting great.

gross touched on this is here dip bit, think something historically. seen in margins, and you a the but regarding we've I this little

upfront of the study obviously got costs you've So the starting.

you're So the buying mice.

studies? top on Or here? inflation recover lab completed which of once that some resources. adding of of kind Is it You're that getting that, the you've these was you'll is there both essentially

David Miller

Yes.

revenue I than receive well their first over be there'll faster certainly then [Indiscernible] conditions be that. people year Also a to as the mentioned, quarter raises certainly when these rising. the component account. market the -- a But always you to year, absorbed prices growing it and think costs. anticipated and be of I will into at certainly is just over and take course there's pace have are that think of our the grow we is should

margin So expand. the should

Matt Hewitt

get last a But maybe hop Got then queue. and the from progressing more here mention could business you. to one Thank your is we quarter, then apologize, and lab update standpoint? an on European how this I'll it. but I into And back failed I that

Ronnie Morris

sure. Yes,

of order, So lab but us, up took and longer running European in now. terms up stuff regulatory European the the getting It running. finally just I authorities, and European in lab is is think, the

for competitive international work and we European got our terms and the as States, starting. these XX approvals. running we site a -- in Europe for between be have United multinational the basically had starting these was which FTEs and it Europe that would book up studies we're regulatory some X all And as more idea well the some to I now And look of trials. of within mean, we're we lab. recently once in always of at just We

but longer running. took of hoping now we're labor. of up some we're our expected, fruits And and to see the than So

Matt Hewitt

helpful. Thank you. really That's

Ronnie Morris

Welcome, Matt.

Operator

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

Ronnie Morris

Thanks.

and as excited the monetize sum expand, drug that we still for aspect -- our over continues platform. continue to excited to expand ways and customers continue So just I to working and by look last to about many well with continue we continue ways amassed that data the the of to to discovery that we've saying look We're many partners pharma years. up for the Champions, grow at to as a way be wanted to and in platform development the many, to about biotech just it up, very wrap

the for evening. us updating we look to and thank everybody you joining Have forward a QX, call. good So after for

Operator

Thank you, conclude ladies and gentlemen. conference today's call. does This

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

Champions Oncology (CSBR) 9 Sep 222023 Q1 Earnings call transcript