Burning Rock Dx(BNR) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q2 2023, the company achieved a non-GAAP gross profit minus SG&A of RMB 7.6 million, marking the first quarter of breakeven in its operating history [6] - The overall revenue growth was 33% year-over-year, with a significant transition towards the in-hospital model [9] - The gross margin reached approximately 75% on a non-GAAP basis, with a year-over-year gross profit increase of about 20% [12] Business Line Data and Key Metrics Changes - Therapy selection saw a year-over-year growth of 44% [7] - The MRD segment launched personalized MRD in top hospitals, with expected impacts starting in Q4 2023 [5] - The biopharma segment experienced a 46% increase in revenue and a 43% year-over-year growth in contract value for new projects [12] Market Data and Key Metrics Changes - The in-hospital testing volumes grew 72% year-over-year, while overall volumes increased by 33% [8] - The company reported stable in-hospital testing volumes heading into Q3 despite industry-wide disturbances in China's healthcare sector [10] Company Strategy and Development Direction - The primary goal for 2023 is to achieve profitability, with a focus on breakeven excluding R&D expenses [4] - The company aims to strengthen its leading position in multi-cancer early detection (MCED) and continue revenue growth [5] - R&D spending will primarily focus on MCED, with several significant clinical trials underway [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of the biopharma business due to new MRD platforms and international orders [5] - The company is confident in its ability to navigate the current economic environment and maintain growth [6] - There is an expectation of reduced R&D expenses as clinical programs are completed by the end of the year [13] Other Important Information - The company has successfully transitioned from a central lab model to an in-hospital model, which is now the dominant share of its channel composition [8] - Sales and marketing expenses have been efficiently managed, trending down to about 44% of revenue in Q2 [10] Q&A Session Summary - There were no questions from participants during the Q&A session, and the conference call concluded without any inquiries [14]