MDxHealth SA(MDXH) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Q4 2022 revenue grew by 114% compared to Q4 2021, and 15% when excluding the acquisition of GPS [9] - Total revenues for 2022 were $37.1 million, an increase of 67% from $22.2 million in 2021, with a 25% increase when excluding GPS [16] - Operating loss for 2022 was $37.9 million, a 41% increase over 2021, while net loss was $44 million, a 52% increase [42] - Cash and cash equivalents as of December 31, 2022, were $15.5 million, with a pro forma cash balance of $55.9 million after a $43 million equity raise [11] Business Line Data and Key Metrics Changes - Revenue breakdown for 2022 included $21.8 million for Confirm, $9.3 million for GPS, and $4.9 million for Resolve, with remaining revenues from Select and Other [31] - Billable test volume for Confirm increased by 11% over 2021, with Q4 growth accelerating to 21% [36] - The launch of the Resolve MDx Urinary Tract Infection test contributed close to $5 million in revenue [24] Market Data and Key Metrics Changes - The company expects revenue between $65 million and $70 million for 2023, representing growth of 75% to 89% over 2022 [13] - Prostate cancer screenings were down approximately 15% during the pandemic, leading to increased rates of positive biopsies [50] - Positive biopsy rates increased from 50% to 65% over the past two years due to reduced screenings [51] Company Strategy and Development Direction - The acquisition of the GPS test is seen as a significant opportunity to expand the customer base and enhance product offerings [15] - The company aims to become a $100 million business with a 65% gross margin and profitability, leveraging its sales channel [75] - Focus on integrating the GPS test and enhancing customer experience through improved service delivery and support [28][39] Management's Comments on Operating Environment and Future Outlook - Management anticipates a gradual return to normalized testing dynamics and access to providers as pandemic effects recede [12] - The company is confident in its ability to drive sustainable growth and create value for stakeholders [53] - Management noted that the current operating environment presents both challenges and opportunities for growth, particularly in the urology market [64] Other Important Information - Operating expenses for 2022 were $57.1 million, up 53% from $37.4 million in 2021, primarily due to additional sales personnel [47] - Total cash collections in 2022 amounted to $32.3 million, a 50% increase compared to 2021 [48] - The company is focused on cross-selling opportunities following the GPS acquisition and expects to report revenue by product in 2023 [54] Q&A Session Summary Question: Can you share metrics on cross-selling since the acquisition? - Management will provide revenue by product quarterly in 2023 to comment on progress [54] Question: What made the company differentiated for UnitedHealthcare? - The differentiation lies in the clinical utility of GPS for low-risk patients, which was a key factor in the decision [60] Question: When can Select return to growth? - The focus has been on GPS and Confirm cross-selling, with expectations for Select to grow as integration progresses [80]