Champions Oncology(CSBR) - 2024 Q4 - Annual Results

Financial Performance Overview Management Commentary & Outlook Management acknowledged fiscal 2024 challenges, but anticipates market recovery and sustained profitability in fiscal 2025, while seeking investment for its AI subsidiary Corellia - The company faced hurdles in fiscal 2024 due to a challenging biotech funding environment and variable spending from large pharma, leading to slower sales growth and increased cancellations[2] - Management believes the market is showing signs of recovery and that the company has 'turned a corner' entering fiscal 2025[2] - Strategic cost-cutting measures and operational efficiencies led to positive adjusted EBITDA in Q4, with expectations for sustained profitability in fiscal 2025[2] - The company is actively seeking investment for its wholly-owned AI subsidiary, Corellia, while managing its expenses[2] Key Financial Highlights The company reported $14.0 million revenue and positive adjusted EBITDA in Q4 FY2024, contrasting with $50.2 million revenue and an adjusted EBITDA loss for the full fiscal year Q4 Fiscal 2024 Highlights | Metric | Value | | :--- | :--- | | Revenue | $14.0 million (+7% YoY) | | Adjusted EBITDA Income | $884,000 | | Gross Margin (Pharmacology) | 49% | Full Fiscal Year 2024 Highlights | Metric | Value | | :--- | :--- | | Annual Revenue | $50.2 million (-7% YoY) | | Adjusted EBITDA Loss | $3.9 million | | Gross Margin (Pharmacology) | 42% | Detailed Financial Results Fourth Quarter Fiscal 2024 Results Q4 FY2024 saw revenue grow 7% to $14.0 million, operating expenses decrease 9%, leading to a positive adjusted EBITDA of $884,000 and gross margin expansion to 48% Q4 FY2024 vs Q4 FY2023 Performance | Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $14.0M | $13.1M | +7% | | Total Operating Expenses | $14.2M | $15.6M | -9% | | Loss from Operations | ($190K) | ($2.5M) | +92% | | Adjusted EBITDA | $884K | ($922K) | N/A | - Gross margin for the quarter improved to 48% from 44% in the prior year, attributed to better revenue conversion and a stable cost structure[6] - Research and development (R&D) expenses decreased by 28% to $2.0 million due to careful monitoring of spending[7] - Net cash used in operating activities was approximately $1.8 million for the quarter and the company ended the quarter with $2.6 million in cash and no debt[8] Full Fiscal Year 2024 Results Full fiscal year 2024 saw total revenue decline 7% to $50.2 million, leading to a widened net loss from operations of $7.4 million and an adjusted EBITDA loss of $3.9 million, with gross margin contracting to 41% Fiscal Year 2024 vs 2023 Performance | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $50.2M | $53.9M | -7% | | Total Operating Expenses | $57.5M | $59.1M | -3% | | Net Loss from Operations | ($7.4M) | ($5.3M) | -39.6% | | Adjusted EBITDA Loss | ($3.9M) | ($1.3M) | -200% | - The decline in annual revenue was primarily attributed to customer cancellations in fiscal year 2023, which impacted study revenue in fiscal year 2024[9] - Gross margin for the fiscal year decreased to 41% from 45% in the prior year, as the variable cost component did not decline meaningfully with the lower study volume[12] - Net cash used in operations for the fiscal year was $6.1 million and the company paused its stock repurchase program[14] Financial Statements and Reconciliations Condensed Consolidated Statements of Operations The company reported an annual net loss of $7.3 million for FY2024, while Q4 net loss significantly narrowed to $109,000, with annual revenue at $50.2 million and quarterly revenue at $14.0 million Statement of Operations Highlights (in thousands) | Metric | Twelve Months Ended Apr 30, 2024 | Twelve Months Ended Apr 30, 2023 | | :--- | :--- | :--- | | Oncology services revenue | $50,155 | $53,870 | | Loss from operations | $(7,356) | $(5,256) | | Net loss | $(7,276) | $(5,335) | | Net loss per share | $(0.54) | $(0.39) | Condensed Consolidated Balance Sheets As of April 30, 2024, cash decreased to $2.6 million, total assets declined to $26.1 million, and the company reported a stockholders' deficit of $1.9 million Balance Sheet Summary (in thousands) | Metric | April 30, 2024 | April 30, 2023 | | :--- | :--- | :--- | | Cash | $2,618 | $10,118 | | Total Current Assets | $13,639 | $19,457 | | Total Assets | $26,132 | $34,311 | | Total Current Liabilities | $21,541 | $21,733 | | Total Liabilities | $28,035 | $29,675 | | Stockholders' (Deficit) Equity | $(1,903) | $4,636 | Condensed Consolidated Statements of Cash Flows For FY2024, net cash used in operating activities was $6.1 million, leading to a $7.5 million decrease in cash, with the year-end balance at $2.6 million Cash Flow Summary (in thousands) | Metric | Twelve Months Ended Apr 30, 2024 | Twelve Months Ended Apr 30, 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(6,137) | $3,972 | | Net cash used in investing activities | $(836) | $(2,872) | | Net cash (used in) provided by financing activities | $(527) | $11 | | (Decrease) increase in cash | $(7,500) | $1,111 | | Cash, end of period | $2,618 | $10,118 | GAAP to Non-GAAP Reconciliation The company reconciles GAAP to Non-GAAP net income and EPS, primarily by excluding stock-based compensation, reporting a FY2024 Non-GAAP net loss of $6.2 million and Q4 Non-GAAP net income of $154,000 GAAP to Non-GAAP Net Income (Loss) Reconciliation (in thousands) | Metric | Q4 FY2024 | Q4 FY2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net loss - GAAP | $(109) | $(2,561) | $(7,276) | $(5,335) | | Stock-based compensation | $263 | $209 | $1,118 | $864 | | Net income (loss) - non-GAAP | $154 | $(2,352) | $(6,158) | $(4,471) | GAAP to Non-GAAP EPS Reconciliation (Basic) | Metric | Q4 FY2024 | Q4 FY2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | EPS - GAAP, basic | $(0.01) | $(0.19) | $(0.54) | $(0.39) | | EPS - non-GAAP, basic | $0.01 | $(0.17) | $(0.46) | $(0.33) |