CSBR - Earnings call transcript Q1 2025 | Champions Oncology, Inc.

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Operator

Greetings. Welcome to the Champions Oncology First Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Ronnie Morris, Chief Executive Officer.

You may begin.

Ronnie Morris

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

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

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

during and challenges and prepared measures an historical provided on will available is reconciliation XX-Q customers' sector, discussed year-end our including Forms brief weeks ended available XX-K. that operations trend being with to and we start significant Improvements well revenue results reversals A combination of the year call studies on compared take in that some more last hampered pressure by putting year, our issues in decrease of positive may factors recently delays limited are financial and on an a the for to update and could pressures positioned that the results ago. On bookings not biotech a strongly fiscal in and that in cautiously our revenue cause financial line. our by that leaner biotech leading the to study earnings pointing financial we our information average excess note, revenue. Internally, company I the I affected the led in to GAAP inefficiencies importantly, adjusted turnaround supported This recognition, was and I negatively performance. to indicated in I to to signing a internal emerge. the release. I retraction and changes in external million our hold return fewer from indicated countered external Additional call, markets to as beginning results that is highlighted that on measures of by non-GAAP differ out a began today to difficulties company capital disappointing were Form bottom quarterly that easing. comments revenue quarter, our just were we we sustainable for On these and budgets, in be appear relatively be in a the was to will stem tightness our cost the profitability. led resulting R&D which as QX $XX be year-end our a our the to update stronger size. profit. Most well growth provided and as weakness the factors. Externally, that of we X to were The our and led decrease operational reversal making optimistic

momentum that positive which we to As last year, encouraged has I'm this report the continued. fiscal began quarter begin

positive have the will We efficiency and our its year expanded operational rightsized revenue and in the quarters be scalability, impact encountered. any another several company are $XX with that minimize results, improved profitability. confident leading we some volatility quarter, we to The have are in begun next challenges good million, and negative the obstacles financial when excess accentuate all without to not of but

compounds call. developed. from that our to and much year-end we to our translational targets pharma Vivo development reproducible I is their driven owned precise to insights wholly and PDX that platforms, our necessary development by Ex the drug to biotech needs. With Vivo unique about Corellia, we have continue well-characterized and add the In be bank, a and combined and reiterate will be there subsidiary, to drug expanded further which continues business first-in-class and our excited not provide companies, regard Our data to and

of our actively discussions are in out-license several engaged to We programs.

of the cognizant As we with centers, our impact all bottom line results. on are our cost

we simultaneously be being quarter's and accelerate put back development continue our potential while raise support the of performance for provide represented second consistently careful quarters to the for such, and continue with our effort investors. investors in We to a licensee. The target growth. In a not working actively that cost results quarter results As to these improvements engaged achievements we an over harm will positive to spend we tight, our track searching on to but our to in minimize reducing summary, funding coming capital by overall are environment us our the sequential operations. solidify anticipate and to remains

are data, our the team stellar key our and our comprehensive strong for outlook. Our ingredients unique positive reputation platform,

stronger we are that over We profitability and longer confident with will become continue the revenue term. to

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

David Miller

Thanks, Ronnie.

on full by XX-Q with filed Our results September be Form the will XX. SEC Monday,

Our quarter XX% increase XXXX. of quarter $XX.X first the first revenue million, an was of from

with to excess our the in revenue GAAP income million on consecutive highlighted were of quarter million. On operations our As Included $X.X first was of XXXX prior continued by the million, in loss million $X.X noncash of of year-end financial reiterated of income approximately expenses last the depreciation, quarter comp quarter year. call and Ronnie, a of and $XXX,XXX. turnaround compared stock $X.X totaling the basis, a in our second began from and for $XX

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

effect amount Turning revenue to margin in a of results, XX%, last revenue $X.X while million, million, $X.X our primarily of year. sales decrease the to the cost the by quarter conversion. increasing cost which costs for due our same in sales to of of while focus first $X The decline the period and decline our efficiencies improved quarter the compared reducing total a million gross cash-based to to was increasing operational XX% to year, associated X%. our had was dual for last Due the repeat of work compared implemented,

the few the with our some excess in stabilization our as quarters margins with sales, cost next expected the long volatility but term, and over in anticipate revenue fluctuate delivering costs, revenue will margins XX% grows. in Our over of we of

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

We and on we've have R&D bottom our expense. results, emphasis reduced strategically a renewed line our

continue future been to drug $XXX,XXX growth, core but to business our Approximately We the in efforts our judicious facilitate compared $X.X are during to in of year. part we've invest million towards that not in more core discovery our programs vision. last investment was quarter invested developmental our

marketing For was million. $X.X Sales a the quarter, and flat expense

Our the due The expenses. period, of $XXX,XXX. reduction a compensation G&A million ago decrease in and a recruitment to million $X.X in expense was year primarily was $X.X to compared decrease

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

by was course generation along quarter, the by For the activities of cash operating results, was an capital $XXX,XXX. our The changes in improvement operating business. with in in ordinary our generated cash led accounts working

we cash results and stabilize a position in improve, cash continue remains operational solid. Information. increase our to our we As that Accordingly, anticipate balance. gradual confident our are

over report our delivering effect, the our when results. that ] of quarter strong, and taking shareholders. [ our $XX bookings some EBITDA update but stronger create with million. we've we the and first results and adjusted second path financial be value expected in to of operational excess next forward EBITDA revenue were should confident million in volatility strength our in Our we're We year, returned revenue financial results mid-December $X in with There the the quarter with to correcting for that of look will

We will now open the questions. to call

Operator

Instructions] Craig-Hallum. with [Operator comes from question first The Matt Hewitt

Matthew Hewitt

could if first strong quarter. I'd Maybe on what you on color of it from up, Congratulations customers. provide hearing love little bit the a you're

funding the versus I'm been hearing. are don't if comments -- midsize just that bit reprioritization even between has regarding those you concern, from noted But but better. environment types the you want pipelines, you little there's a customers? the some customers think I of that larger gotten delineate hearing customers, And smaller, I curious could what you're larger say of here recently customers, to some things. what

Ronnie Morris

have not Yes, [indiscernible] it year the kind say, I'll thanks. We but than of I give couple it let's better that, way it's anecdotes. feel some ago. was don't that was, that ago, for scientific Matt, answer we but a still it's years you so of and a know a

improving, world, to you. I say in are still from To hard would definitely small that but our it's are cutting the So it's back, whereas tight in tell continuing pharma it's budget biotech have they midsized the the they improving. it's to the really experiences, larger they do degree to and work.

a for our services, to preclinical services, I PDX spend. where and So that's place think need they continue first-in-class the using to Bank, unique our

take it's So we definitely think a another from or there. ago, it's It getting where of might will get it was, not perspective, so. better, just and years say, our but couple year let's it

Matthew Hewitt

the conversion the Did that That's trend were appreciated. quarter? first that Last improving. here continue noted you quarter, Cancellation Okay. were into rates down. much rates

Ronnie Morris

Yes. Yes. both things of those We've that seen happening. are

as down our a of Our cancellations revenue is result converting better being as well. and

two those we positive So as quarter quarter the talked are aspects first that as had to fourth well the really about.

direction. are things So right right moving trend -- the definitely in

Matthew Hewitt

create on just then on the in ] And pick guys -- to in some I'm that so, [ an the to U.S. one Monday here if moves listed blocked Senate. in curious, up But of one one you compete Biosecure for the entities in or And in afternoon, that maybe being That's would the now there queue. would last great. against share? back you hop I'll house do the Act the passed more was bill? opportunity market,

Ronnie Morris

Yes.

have think I of those working time, a with think groups. companies long stayed for certain some So from I away

I don't a us help it will some we probably I with. think will companies, to probably compete but those help extent, think what because certain I extent, it us. certainly, know to of

So.

Operator

for in ]. moment, back currently -- one We have poll questions to Instructions] management to no [ turn like I'd it just queue. we when [Operator

Ronnie Morris

Hello?

Operator

[ questions. ] for Just polling

the closing I'd to Okay. management turn to remarks. for floor back like any

Ronnie Morris

earnings us Great. to quarterly profitability and trend, getting Well, growth. everybody, to continue the excited certainly for joining for our the back you, positive We thank are call.

we work updating forward how teams, about in to months a our excited work the the the we important results, the partners our customers. we -- pharmaceutical deliver and of do are progress. with continued And to everybody couple We do quality, we and biotech our our look

and have us. So a good thank evening, everyone, for joining you

Operator

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

Champions Oncology (CSBR) 11 Sep 242025 Q1 Earnings call transcript