Release Date: August 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue continued to grow, with the pathology division reaching breakeven at the end of Q2.
- Two out of three large customers have gone live with the HemeScreen program, contributing to revenue growth.
- The company saw an increase in cash of approximately $300,000 in Q2.
- Precipio Inc (PRPO, Financial) is making progress towards breakeven in the products division.
- The company has submitted materials for a pre-submission meeting with the FDA, with hopes for approval in 2025.
Negative Points
- The third large customer for the HemeScreen program is still facing operational issues and has not gone live yet.
- The company is still dealing with the aftermath of the Change Healthcare hack, affecting billing and collections.
- Despite revenue growth, the company is not yet profitable and is still working towards breakeven.
- The market remains skeptical of the company's performance and cash needs, potentially affecting stock price.
- Precipio Inc (PRPO) has not spent significant time and resources on investor relations, impacting investor attention and stock performance.
Q & A Highlights
Q: Can you provide an update on the financial performance of the pathology division?
A: Ilan Danieli, Chief Operating Officer: The pathology division reached breakeven at the end of Q2 and has continued to exceed its breakeven target in Q3. We have a stable existing customer base and a growing new customer base, which is contributing to our revenue cushion.
Q: What progress has been made in the products division, particularly with the HemeScreen program?
A: Ilan Danieli, Chief Operating Officer: Two out of three large customers have gone live with the HemeScreen program and are growing their volume. We expect the third customer to be fully onboarded soon. This progress brings us closer to breakeven for the products division, which will make the entire company profitable.
Q: Why is Precipio focusing on distributors despite success with direct sales?
A: Ilan Danieli, Chief Operating Officer: Distributors are key to scaling up the business. Our US distributors, including Cardinal Health, Thermo Fisher, and McKesson, have extensive sales networks and established customer relationships, which can help us penetrate the market more efficiently and rapidly.
Q: How is the company addressing its cash position and profitability goals?
A: Ilan Danieli, Chief Operating Officer: We had an increase in cash of approximately $300,000 in Q2. Although we are not yet profitable, we are reducing our cash burn and moving towards breakeven. We believe we have sufficient cash to meet our obligations and reach profitability by year-end.
Q: What is the status of Precipio's FDA submission?
A: Ilan Danieli, Chief Operating Officer: We have submitted the required materials for a pre-submission meeting with the FDA, which is scheduled for later this year. We aim to submit our application soon after the meeting and hope to receive approval in 2025.
Q: How does the company view its current share price performance?
A: Ilan Danieli, Chief Operating Officer: Our share price has stabilized around the $5 to $6 range. However, we believe the market is still skeptical of our performance and cash needs. We plan to focus more on investor relations after achieving our profitability goals to improve our market presence and share price.
Q: What are the company's plans for 2025?
A: Ilan Danieli, Chief Operating Officer: We are planning to scale up the product business and rekindle our investor relations strategy. This includes participating in investor conferences and digital outreach to build a substantial audience and translate our business achievements into shareholder value.
Q: How is the company handling the aftermath of the Change Healthcare hack?
A: Ilan Danieli, Chief Operating Officer: We are still dealing with issues from the hack, including delayed payments. However, the situation is improving, and we are moving towards a stable state of billing and collection.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
