Lucid Diagnostics(LUCD) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $1.2 million, representing a 20% increase quarter-on-quarter and a 50% increase year-on-year, marking a record quarterly revenue for the company [8][42] - Test volume for Q3 was 2,787, with a trailing three-month total of approximately 3,500 tests, the largest since the company's inception [42][43] - The quarterly burn rate was$ 10.4 million, consistent with the previous quarters, and included $7.3 million from ongoing operations [35] Business Line Data and Key Metrics Changes - The company has expanded its direct contracting initiatives, including the "Check Your Food Tube" events, which have tested over 7,000 firefighters with EsoGuard [9][10] - EsoGuard's gross margin per test remains over 90%, with a substantial commercial opportunity targeting approximately 30 million at-risk patients [15][16] Market Data and Key Metrics Changes - The total addressable market for EsoGuard is approximately$ 60 billion, with Medicare pricing established at $1,938 [15] - The company has seen a significant increase in claims submitted, with nearly 2,800 claims submitted in Q3, reflecting just under$ 7 million in pro forma revenue [49][50] Company Strategy and Development Direction - The company is focused on securing Medicare coverage for EsoGuard, having completed a comprehensive clinical evidence package and held productive meetings with the CMS [10][20] - Strategic initiatives include targeting concierge medicine and employer markets to drive contractually guaranteed revenue [22][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the upcoming submission for Medicare coverage, anticipating it to be a first-half event for next year [80] - The company is confident in its data package for both Medicare and commercial payers, which is expected to facilitate broader coverage discussions [88] Other Important Information - Cash at the end of Q3 was $14.5 million, with plans to increase cash runway by more than a quarter through new convertible note agreements [31][33] - The company has maintained a flat sales team headcount while focusing on revenue-driving programs [16][59] Q&A Session Summary Question: What caused the sequential decline in test volume in Q3? - Management noted that July had fewer large events due to summer, but volumes picked up in August and September, with October showing strong results [56][57] Question: Will Q4 be a record volume quarter? - Management indicated that while October was strong, holiday periods in December could affect volume predictability, but overall adoption is expanding [58][60] Question: What is the strategy for concierge medicine? - The company is entering the concierge medicine market, leveraging data and experience from previous employer market efforts to engage with practices [62][66] Question: What is the timeline for submitting the data package for Medicare coverage? - Management expects to submit the data package soon, with a high level of confidence in the outcome [79][80] Question: How will marketing strategy change with Medicare coverage? - The company plans to direct resources towards the Medicare population, which could increase revenue from that segment significantly [86][87] Question: How does pricing work in the concierge market? - Pricing will start at$ 2,500, with negotiations based on what practices believe their patients will pay, as this is a cash-pay model [84][85]