Precipio, Inc.
Q3 2020 Earnings Call Transcript

Published: 19 Nov 2020

[Operator:]

Good day, and welcome to the Precipio Quarterly Shareholder Update Call. All participants will be in a listen-only mode. Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should not place undue reliance on forward-looking statements as these statements are based upon our current expectations, forecasts and assumptions and are subject to significant risks and uncertainties. These statements may be identified by words such as may, will, should, could, expect, intend, plan, anticipate, believe, estimate, predict, potential, forecast, continue or the negative of these terms or other words or terms of similar meaning. Risks and uncertainties that could cause our actual results to differ materially from those set forth in any forward-looking statements may include but are not limited to the matters listed under Risk Factors in our annual report on Form 10-K and for the year ended December 31, 2019, which is on file with the Securities and Exchange Commission as well as other risks detailed in our subsequent filings with the Securities and Exchange Commission. These reports are available at www.sec.gov. Statements and information including forward-looking statements speak only to the date they are provided unless an earlier date is indicated and we do not undertake any obligation to publicly update any statements or information, including these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

[Ilan Danieli:]

Thank you very much. Good evening, everyone. I would like to thank you all for joining our Q3 2020 shareholder call. During this call, I'll provide a business update on the progress that our Company has made and what we expect to see in terms of development in the near future. Since this will be our last shareholder call for 2020, I'll also end with a few words on how we see this year wrapping up or things we can expect to see for next year. Let me begin with a recap of our quarterly report on Form 10-Q that was filed at the end of last week. As you saw, we made great progress in our core business of pathology servicing, growing the top line, almost threefold from $0.6 million in Q3 of last year to $1.6 million in this recent quarter. Just to bring that number to life, in the first nine months of 2019, we tested slightly under 1,200 patient cases, whereas in the same nine months period in 2020, we already eclipsed 2,500 and still have Q4 to complete. This equates to an average of 16 cases per day, up from less than 8 per day. Our customer count has more than doubled during this time with repeat customers increasing proportionately as well. And while this additional case volume translates into increasing staffing needs, we're also starting see the economies of scale of our operations. For the first nine months in 2019, our gross margin went from essentially 0% to 20% for the same nine months in 2020. It's great to start seeing the impact of our focus on growing our top line while keeping a keen eye on costs and improving efficiencies that produce the jump in gross margin. As we move through Q4 and into 2021, we project lab operation metrics to continue to yield improvements. Overall, our business growth will continue to generate gross profits, reducing our dependence on external capital. Now, let's move to our product side. We continue to make great progress with our two flagship products, IV-Cell and HemeScreen. For IV-Cell, we've now launched the beta site of our new IV-Cell media in labs in the U.S. and Europe, and initial results are very promising. This isn't surprising since we've been using the media in our own lab for several years now. Knowing that we are not only an inventor of IV-Cell, but also the user of this product in our own lab gives us the credibility needed to have discussions with some of the most prominent labs in the world. This credibility and our own experience is a key factor in building customer confidence and steering these labs from moving away from the product they've used for years to try our product.

[End of Q&A:]

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.