CSBR - Earnings call transcript Q3 2024 | Champions Oncology, Inc.

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Operator

Greetings. Welcome to the Champions Oncology's Third Quarter Fiscal Year 2024 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Ronnie Morris, CEO of Champions Oncology.

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

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

discussed is available to Additional release. Overall, year. information our cause financial through XX-Q the financial Form and over earnings could that Forms of measures differ non-GAAP call continue to results on results the third highlighting quarter we of navigate factors challenging in during may as experienced with measures be the XX-K. A to stellar been GAAP that course a on challenges we've less is the than the we reconciliation available

that will However, coming the developments see we improving to I results positive will translate over emerging reiterate quarters. that

biotech when of have environment, specifically we in began As October the turned on challenges discussed the economic the calls, sector, markedly XXXX, previous in negative.

their reduced real cancellations to studies cycles. R&D in customers Our led increasing longer sales ordered and time, fewer and which budgets

the study to, that we were continued. were is a In addition, trend smaller which has sizes than accustomed

line with bookings operating identified to All resulted factors in revenue. lower and results. conversion, putting factors, some revenue slower on external ultimately of top lower pressure quarterly net Along our operational issues these led the we and that downward additional

use metrics Cancellations significant have measure reversing headway We the months. to last trends efficiencies we the several back have historical to towards and made significant have over progress operational and receded success levels. made these

building success. already strong hold, which fundamental taking contribute bookings, foundation strategy our the development to business is Our which are long-term for will

biotech funding work we robust biotech will return R&D, our fact bookings showing over rightsize biotech more more and year, the start coming last to is stable some this with biotech reduce time of the companies quarters, to of to higher from a budgets we quarterly growth be Anticipating generally larger Despite reflect revenue. larger market year, our the pharma we smaller able in customers. will we the see over companies need. meet the activity work that a pipeline current are current the increased not but up with. This revenue our large we does that these our these expanded at convert the revenue staff profitability. opportunities have have the and have arises, As we costs sector conditions more mean since top-tier the are customers. teams space, smaller better lot and larger the and see the emanating When the the a slowdown of to we operational and to we confident than These decided need abandoning to

leaner to -- then of in margin We to expand goal continue and order over reach our and operating are quarterly profitability time. becoming the continued our

in uptick longer clinical modest regard As the expectations, been contributor clinical but has has offerings, is our meaningful become turnaround coming. With expected, case, our is it bookings. pipeline our has a with our grown can taken it than to and revenue biomarkers behind often to This initially that long-term an if finally more anticipated monitoring lagged has specific growth. determine are to internal closely area we a

to Turning Vivo. Ex

model offering, platform. Vivo it making to adding robust We to continue expand additional our more by our Ex

programs coming discovery offering programs the are through promising positive lead over get our customers the Ex exhibiting well platform feedback lead extremely quarters. With growth Vivo continue Corellia, progressing with on we We subsidiary, to results. our wholly this our our to drug therapeutic regards strong anticipate owned stages our and development from from discovery two

accelerate an our effort be We engaged to support investors in and growth. actively raise to with continue to capital

unexpected. on program our challenging, In back we for prospect robust that the but This evaluating. stellar was within next model We are slowly the quarter's and not that improvements is poised strong target slowdown, raising take of a will put a exciting to replicate. In anticipate comprehensive an hold there performance discovery hope entirely summary, bookings, Despite addition near-term development and a targeted the reputation opportunities us our we licensing to currently platform, is trajectory. the a continue have stage. are and team potential capital, we that to

with We over and term. revenue profitability are emerge confident that stronger we the will long

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

David Miller

Thanks, Ronnie.

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

a quarter of third third XXXX. from the of decline Our revenue was X% million, quarter fiscal $XX

the As guiding to customer our throughout convertible specifically over calls the year, quarter, last we'll XXXX. on the been and QX, in challenges expectation year, last quarter, would this a our beginning QX cancellations, was point reduction lead the approximately higher gradual see lower improvement in led X% believe which quarters, We encountered coming bookings to revenue sequentially. low ultimately and that remains was the with revenue the we've

of GAAP totaling $XXX,XXX. loss million comp $X.X $X.X compared loss and was in third in to Included basis, approximately stock the our $X.X million a million for the prior the approximately On XXXX depreciation quarter noncash were year. of expenses

in approximately items, adjusted $X.X loss quarter compared to million noncash EBITDA ago EBITDA year an adjusted million $X.X of was period. these for the our Excluding loss the

of lower The increase These cash-based quarter to $X.X in to as relative This compared increase an Turning percentage a in the the third was year to million focus the to our was X%. are coming should inefficiencies, to corrected. being The an period million due total revenue mouse year, primarily rose $X.X lead quarters. costs due our costs costs. of operational some which to increase same last [indiscernible] of in cost sales results. last

year. same As lower and our to for result last quarter of of XX% line revenue margin period a the dipped XX% cost our to gross sales, higher top for compared the

our of sales costs the cost operations. of mouse cost should lower reductions on from to the price terms along both improve in with and margins negotiated revenue as improvement fixed begin leveraging resulting Our component coming recently against quarters over expands,

anticipate as we in in we team. decline expense operational a some strategic our salary reductions make Additionally,

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

Our business R&D spend $X.X we're look million our in for efforts ago discovery discovery a as to between in period. in from services, drug and split quarters we the spend capital continue subsequent R&D platform. reduction in The our drug towards traditional supporting the pattern drug investing down $XXX,XXX efforts. year holding while in raise quarter, is invested core our discovery discovery future should our our Approximately was during

expense $X.X million. at and sales quarter, was the marketing unchanged For

expense expenses the $X $X.X QX G&A with to was flat million mostly million in Our in compared of current XXXX. quarter

cash million $X.X debt. Now We ended turning and to no on quarter sheet balance the the cash. with of

deferred the by cash and in For an equipment loss in $XXX,XXX increase course net the our in accounts partially business. activities modest Changes was used CapEx near significant not ordinary working in investment any was quarter, a do and of $XXX,XXX, operating offset the lab term. were capital new our in from approximately primarily revenue. Investment anticipate resulting in we

but with our gradual small results. operational position this position capital been than begin our were a have quarter for decline sound. In and are to monitoring believe growth, summation, QX raise a began same operational which expected. XXXX, We our acceleration results have a over quarters. third that stemming as We we cash core quarterly weaker financial last a balance at realize in while usual, to efficiencies sustained plans in to our beginning return the anticipate remains envision revenue mostly we business. We quarter, in We improvement focused the our our in fiscal cash no carefully cash from company time, few

the in areas or tight that long-term start making won't strategic expenses, on but term. near our reductions having bottom control an We several growth, operations adversely will our results keep line impact should including on impact in

obstacles are our internal and a and that both results, quarters. improvement despite revenue positive including the operational next within in are recent external factors, We prospects but long-term poised few for ultimately and our steady confident we're growth slow profitability from

fiscal our quarter. fourth currently are We in

be earnings report fourth a July our and call when late such, next and quarter in XXXX As results XXXX will full year on we preview.

interim. significant the there you any We in be will apprised keep should developments

questions. We will call to now open the

Operator

first for is today Matt from with question Craig-Hallum. Hewitt [Operator Instructions] Your

Jack Christopher Siedow

When published yet. and -- been a your on Jack regarding they coming couple what expect Matt. is customers budgets reengage standpoint? for comfortable balance have hasn't to been from looks follow-up, out then with willing from a A and questions. you you the do an Are for hearing press of sheet This bit And that pipelines? release, their like more feeling of it investment

David Miller

it I sure one. actually why one, while I'll I'll and So per we're as scheduled. There's it not the I'm the usual. press an our in issue out the the didn't release. a let call. on confirmation first Yes, e-mail I was p.m. delay hit on there sent not just side, technical other second Ronnie got And at on take as release know take was was some reason than press It end. other the no X:XX

Ronnie Morris

with working coming We're a -- in year. really pipeline. budgets mentioned anticipated couple there's what and up to have. in pike months my I certainly they in more lot R&D think down of larger we almost closely of comments, -- out the terms And I and companies some of last the the pharmaceutical Yes. been the terms partners the last this activity as -- of in seeing there, all Certainly, we're been than of we work loosening hard we're more in were we the that a

to starting to starting and doing more are to biotechs the have studies. We more talk see of starting about funds more

little it's -- I back us if things for far But know come. to have early think bit a how exactly still

a than year years to to couple let's but it looking a know where far was, certainly yet. going ago, it So come was I it's just say, don't of how better ago,

Jack Christopher Siedow

much could see one environment, maybe just a Corellia That's until helpful. on update it AI. do Can in squeeze the I And further the during we to And if more side invested give How the regarding it does think improvement? then you question burner business down given that? progress you've make put Okay. QX? you in sense

Ronnie Morris

Yes, ahead. go

David Miller

It planning future. but terms take quarter. in Champions the the again, some -- can strategic And overlap Ronnie in there and was about $XXX,XXX. between certainly, current the Corellia, is $XXX,XXX the for of about And obviously, was

Ronnie Morris

investment, Corellia our the terms Yes. for definitely of and substantially we forward. going And QX are QX investment both in lowering

out-licensing of the We to getting we some close believe, for investments are, getting or assets. deals

So order. short think in we

is into the continue number pressure to So to question are off funding grow in answer are significantly. we two, we order reducing take short outside excited spend are And your the getting taking to that exciting and Champions the hopefully one, to we and of our account, platform.

Operator

to over [Operator Instructions] end for question-and-answer session, the the closing of I call remarks. will reached now the Ronnie and We've turn

Ronnie Morris

you. Thank

you, thank quarterly joining call. So everybody, earnings for our

it our bookings looking from think our disappointing are feedback somewhat I but higher have a revenue, very feel we've at As was we forward, operational where and of mentioned, we good efficiencies confident we costs and start and our of quarters do quarter decreased both financial have and that profitability. excellence, to to the customer base going revenue, going perspective,

So we summertime. the and year's are for for next over excited to guidance to update you QX continue as well

to a update forward look evening. good we So have and that

Operator

Thank you and disconnect for you at Thank you. your today's concludes This participation. this lines conference, your may time.

Champions Oncology (CSBR) 12 Mar 242024 Q3 Earnings call transcript