iSpecimen (US:ISPC)2022-11-09 00:10Financial Data and Key Metrics Changes - iSpecimen reported revenue of $2.6 million for Q3 2022, a decrease from $2.7 million in Q3 2021, primarily due to declining sales of COVID-19 specimens [29] - Non-COVID revenue reached $2.3 million, accounting for 88% of total revenue, marking a 26% increase compared to the same period last year [31] - For the nine-month period ended September 30, 2022, revenue was approximately $7.4 million, down from $8.6 million in the same period last year, attributed to the impact of the Russia-Ukraine war and declining COVID-19 specimen sales [32] Business Line Data and Key Metrics Changes - Specimens accession decreased by 11% to 4,750 in Q3 2022 compared to 5,300 in Q3 2021 [29] - The average selling price per specimen increased by approximately $32 or 6% compared to the same prior year's period [30] - For the nine-month period, non-COVID-19 related specimens accounted for approximately $6.5 million, a 7% increase compared to the same prior year's period [34] Market Data and Key Metrics Changes - The macroeconomic environment remains uncertain due to high interest rates and potential recession concerns, impacting specimen transactions [27] - The company is closely monitoring the market health, particularly among small biotech and pharma customers, who are preserving cash while continuing research [48] Company Strategy and Development Direction - The company is focused on reducing supplier concentration and increasing utilization of its supplier network to enhance match rates and market depth [13][16] - A significant initiative to reorganize the sales approach is underway, with a renewed focus on the sales funnel to scale in a post-COVID-19 environment [17] - The company plans to launch a data-as-a-service pilot, expected to validate new revenue streams [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience through economic downturns and inflation impacts [28] - The company is excited about near and long-term prospects, actively pursuing multimillion-dollar business initiatives [11] - Management noted that while projects are smaller in value, customers are still engaging in research, indicating a cautious but ongoing commitment to their work [48] Other Important Information - The company increased cash spend for technology to approximately $1.2 million in Q3 2022, up from $592,000 in the same period last year, reflecting a commitment to technology investments [38] - General and administrative expenses rose to approximately $2.2 million in Q3 2022, primarily due to increased compensation and severance costs [44] Q&A Session Summary Question: Health of the biotech and pharma markets - Management noted that while projects are still being received, they are smaller in value as customers are preserving cash [48] Question: Ensuring no disruption during search capability enhancements - Management confirmed that enhancements are being tested in a separate environment to avoid disruption to ongoing business [49] Question: Biggest potential driver for growth and profitability - Management highlighted the revenue stream associated with data as a significant potential driver for growth, with a pilot expected by mid-next year [52]