Precipio, Inc. (NASDAQ:PRPO) Q4 2024 Earnings Conference Call March 31, 2025 5:00 PM ET Company Participants Ilan Danieli - Chief Executive Officer Conference Call Participants Operator Welcome to the Precipio Q4 and Year-End 2024 Shareholder Update Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should not place undue reliance ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2024 was $236.6 million, a decrease of 34.5% compared to $361 million in the prior year period [31] - Adjusted EBITDA for Q4 2024 was $15 million, down from $21.5 million in the prior year period [32] - Net loss attributable to common stockholders for Q4 2024 was $16.9 million, or $1.29 per fully diluted share, compared to a net loss of $9.6 million, or $1.22 per fully diluted share in the prior year [32] Business Line Data and Key Metrics Changes - Life Sciences revenue increased 173.3% to $4.1 million from $1.5 million in the prior year quarter, primarily driven by R2's sales [36] - R2 achieved record top-line revenues of almost $10 million for the full year 2024, a 197% increase over 2023 [12] - Infrastructure segment revenue decreased 36.2% to $225.7 million from $353.8 million in the prior year quarter [33] - Spectrum's revenue for Q4 2024 was $6.8 million, an increase of 1.1 million compared to the fourth quarter of 2023 [37] Market Data and Key Metrics Changes - R2's system unit sales in North America grew 238% year-over-year, contributing to a combined worldwide system unit sales growth of 113% in Q4 2024 [13] - DBM Global ended the year with an adjusted backlog of $1.1 billion, compared to $1.2 billion at the end of 2023 [35] Company Strategy and Development Direction - The main objective for 2025 is to address the capital structure and near-term maturity of debt obligations [8] - The company is focused on leveraging valuable assets prior to debt maturities to achieve a sustainable capital structure [10] - MetaBeacon is exploring strategic alternatives and has engaged Jefferies Financial Group for potential monetization [11] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the pipeline and backlog levels, particularly in the infrastructure segment [19] - There is a cautious stance towards the cost of construction materials due to political uncertainties, but no material impact on financials is anticipated [21] - The company is encouraged by recent milestones and believes it is well-positioned to capitalize on growth opportunities in cloud computing and AI [20] Other Important Information - Total consolidated debt decreased by $54.5 million compared to last year, primarily due to improved working capital [29] - The company had $48.8 million in cash and cash equivalents at the end of Q4 2024, down from $80.8 million at the end of 2023 [39] Q&A Session Summary Question: Can you provide an update on discussions with Jefferies regarding MetaBeacon? - Management indicated that discussions with Jefferies have been ongoing since late 2023, with FDA approval being a critical milestone [47] Question: How does the valuation context from 2019 impact current discussions? - Management noted that the valuation from 2019 is a reference point, but the current discussions will depend on how the process unfolds [49] Question: What impact might tariffs have on DBM Global's backlog and margins? - Management stated that DBM typically locks in prices with mills when bidding, so they do not foresee a significant impact on backlog or margins at this time [55]

Financial Data and Key Metrics Changes - In Q4 2024, the company's revenue was $200.8 million, a 15% increase from $174.7 million in Q4 2023 [8][10] - Operating income from continuing operations improved to $11.6 million in Q4 2024, compared to an operating loss of $3.3 million in Q4 2023 [9] - Adjusted EBITDA from continuing operations was $24.0 million in Q4 2024, reflecting a 55% year-over-year increase [10] - For the full year 2024, consolidated revenues were $717.3 million, stable compared to the previous year [21] - The net loss from continuing operations was $73 million in 2024, an improvement from a loss of $75.8 million in 2023 [21] Business Line Data and Key Metrics Changes - The environmental segment showed the largest positive impact on revenues, contributing to the overall stability of revenues throughout the year [12] - Bookings for 2024 reached approximately $900 million, a 39% increase from $638.7 million in 2023, while backlog increased by 47% to over $540 million [13][22] Market Data and Key Metrics Changes - The company noted strong demand for its technologies driven by sectors such as AI data centers and electric vehicles, which are expected to be key growth drivers [14] - The company has 12 to 15 active front-end engineering design studies representing potential projects worth over $1 billion [15] Company Strategy and Development Direction - The company is shifting focus towards predictable revenues and margins, particularly from thermal operations, and is investing in biomass energy plants [8][10] - The strategic plan includes divesting non-core assets to improve the balance sheet and reduce reliance on low-margin new-build projects [17][26] - The company aims for targeted bookings of approximately $1 billion by 2028 within its Bright Loop hydrogen production initiative [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving adjusted EBITDA performance trend and anticipated continued growth in 2025 [12][30] - The company is actively negotiating to refinance current debt obligations and is optimistic about returning to positive cash flows in 2025 [25][27] Other Important Information - The company completed the sale of its SPIG and GMAB businesses for net proceeds of $33.4 million, which improved its balance sheet [26] - The company has a total debt of $464.6 million as of December 31, 2024, raising concerns about its ability to continue as a going concern [24][25] Q&A Session Summary Question: Guidance for the year and factors affecting it - Management discussed the uncertainty surrounding new tariffs and their potential impact on project timing and margins [36][38] Question: Update on the Wyoming project and IRA impacts - Management indicated confidence in IRA credits moving forward and ongoing discussions with Black Hills for financing [45][46] Question: Impact of EPA reconsidering emissions regulations - Management noted that existing coal plants are likely to remain operational despite regulatory changes, with minimal impact on business [52][55] Question: Pipeline and bookings outlook for the year - Management expressed optimism about the pipeline, with expectations for continued strong bookings and opportunities in biomass and thermal sectors [58][60]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 totaled $28.6 million, a decrease of 20.6% from $36.1 million in Q4 2023 [22] - For the year ended December 31, 2024, net sales were $128.1 million, down 8% from $139.3 million in 2023 [22] - Gross profit for Q4 2024 was $2.8 million, or 9.9% of net sales, compared to $6.8 million, or 18.9% of net sales in Q4 2023 [25] - Adjusted EBITDA for Q4 2024 was a negative $585,000, compared to a positive $3.2 million in Q4 2023 [29] - Year-end 2024 adjusted EBITDA was $2.1 million, down from $8 million in 2023 [30] Business Line Data and Key Metrics Changes - Aerospace and defense net sales were negatively impacted by the closure of the Blue Earth facility and delays in customer approvals [7] - Revenue headwinds were noted in the industrial and medical sectors due to reduced inventory investments and delayed product launches [23] Market Data and Key Metrics Changes - The company experienced a reduction in customer backlog in Q4 2024 as customers requested shorter lead times with new orders [24] - The imposition of tariffs may significantly impact contract manufacturers, including Nortech, particularly regarding operations in China and Mexico [8][10] Company Strategy and Development Direction - The company is focused on consolidating its North American footprint and moving customer programs to better fit customer needs, which is expected to improve long-term EBITDA generation [16] - Nortech is investing in core infrastructure and leadership teams to drive long-term growth, including a fully staffed business development team [14] - The company is pivoting towards fiber optic technology to enhance product performance and align with sustainability goals [44] Management's Comments on Operating Environment and Future Outlook - Management expects the aerospace and defense business to normalize in the second half of 2025, despite ongoing headwinds in the first half [8] - The company remains vigilant in monitoring trade policies and geopolitical uncertainties that may impact operations [11] - Management is optimistic about future growth opportunities, particularly in fiber optic technology and AI capabilities [42][48] Other Important Information - The company completed a 30% reduction in lease space at its Maple Grove facility, resulting in annual savings of at least $1.6 million [12] - Cash and cash equivalents totaled $916,000 as of December 31, 2024, down from $1.7 million in 2023 [30] Q&A Session Summary Question: What are the expectations for the aerospace and defense market? - Management expects the aerospace and defense business to return to normal in the second half of 2025, despite current challenges [8] Question: How is the company addressing the impact of tariffs? - The company is closely monitoring tariff impacts and adjusting customer pricing and sourcing strategies as needed [10] Question: What are the company's priorities for 2025? - The company aims to strengthen its balance sheet, reduce inventory investments, and align operations with market demand for sustainable long-term EBITDA growth [34]

Financial Data and Key Metrics Changes - Sales for the full year increased by 38% to $38.1 million compared to $27.6 million in 2023, driven by increased production from the Georgia facility and contributions from new facilities in Texas and Washington [26][27] - Adjusted gross margin for the full year remained consistent at approximately 27%, excluding depreciation and stock-based compensation [28] - Fourth quarter adjusted gross margin improved by 200 basis points year-over-year, impacted by increased labor costs associated with production ramp-ups [30] Business Line Data and Key Metrics Changes - The company opened two new facilities in Washington and Texas, completed the Georgia build-out, and transitioned Montana to commercial operations [14] - The Texas facility is undergoing reconfiguration to produce both living head products and cut products, which temporarily impacted full utilization [27][40] - Distribution of high-value specialty greens expanded, including partnerships with Walmart and other retailers [24][25] Market Data and Key Metrics Changes - The company is experiencing strong demand for controlled environment agriculture (CEA) products, with retailers increasingly interested in these offerings [46] - The restructuring of the balance sheet positions the company favorably compared to other CEA providers, enhancing relationships with customers [47] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA by the third quarter of 2025, focusing on operational efficiency and an optimized product mix [32][34] - A strategic approach to expansion is being adopted, balancing build versus buy considerations, with a focus on advantageous acquisition opportunities [21][20] - The company is prioritizing investments that deliver the fastest path to positive returns, aligning production capabilities with specific customer needs [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to innovate and optimize operations under new leadership [8][9] - The company is committed to meeting growing customer demand for sustainable, locally grown produce, emphasizing the importance of operational excellence [34] - Management anticipates a sequential revenue lift beginning in Q2 2025 as the Texas facility completes its reconfiguration [31] Other Important Information - The company secured $27.5 million in new funding, including $25 million in equity, and restructured its existing credit agreement, resulting in a nearly 40% reduction in debt [15][16] - The restructured agreement allows for no cash payments until April 2027 and a significantly reduced interest rate of approximately 6% [17][18] Q&A Session Summary Question: Changes in Georgia and Texas production and impact on unit economics - Management indicated that changes primarily occurred in Texas, where half of the facility ships cut products under a long-term agreement, while the other half is being converted to produce both living head and cut products [37][39] Question: Pricing power and volume benefits - Management noted that as customers become more familiar with their products, it provides leverage to negotiate better pricing, with a price increase set to take effect in April [41][42] Question: Relationship with Walmart and shelf space dynamics - Management highlighted that major retailers are increasingly interested in CEA products, and the company's restructuring positions it favorably to solidify relationships with customers [44][47] Question: Variable cost structure of the Georgia facility - Management reported that the Georgia facility has successfully reduced seed and labor costs, contributing to improved variable cost management [52][54] Question: Update on Midwest expansion initiative - Management confirmed that the Midwest expansion is still an intention, with ongoing discussions with retailers to ensure the facility design meets their needs [56][57] Question: Build versus buy dynamic in expansion strategy - Management expressed a preference for acquiring existing greenhouses that can be quickly utilized, as demonstrated with the Georgia facility, which increased productivity significantly [58][60]

Financial Data and Key Metrics Changes - Revenue for 2024 reached approximately $74 million, exceeding guidance and representing a 15% increase from the previous year [10][25] - Net income, excluding one-off non-cash items, surged to over $21 million, surpassing guidance by over 253% [10] - Adjusted EBITDA reached over $20 million, outperforming estimates by more than 70% [11] - Operating income, excluding exceptional items, climbed to over $19 million, exceeding guidance by over 40% [11] - The company reported a significant improvement in unrestricted cash balance, increasing from $5.3 million at the end of 2023 to $21.7 million at the end of 2024 [35] Business Line Data and Key Metrics Changes - The gross profit margin was reported at 49.96%, a decline from the previous year due to a change in service mix [25][26] - SG&A and R&D expenses were reduced, reflecting a right-sizing of the business [27] - The company experienced a foreign exchange loss of approximately $27.5 million, primarily due to a devaluation in Egypt [28] Market Data and Key Metrics Changes - The company has a backlog of $93 million for 2025, indicating strong future revenue potential [44] - The company has nearly $2 billion in signed contracts and a $4.6 billion pipeline, which includes late-stage contracts and government-backed frameworks [15][16] Company Strategy and Development Direction - The company is focused on global expansion and has transformed from a regional player to a scalable organization targeting high-growth markets [9][20] - The strategy includes building long-term, high-margin recurring revenue streams and establishing itself as a category leader in AI infrastructure [22][20] - The company aims to diversify its customer base, reducing reliance on any single client [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance of $100 million to $110 million for 2025, with gross margins expected to be between 40% and 50% [42] - The management highlighted the importance of understanding client needs and the complexities involved in delivering large-scale projects [75][138] - The company is committed to transparency and plans to report results quarterly moving forward [112][116] Other Important Information - The company has made significant progress in internal controls and compliance, expecting to be Sarbanes-Oxley compliant two years ahead of the requirement [41] - The company is actively hiring to support its growth, with plans to increase its workforce from around 200 to between 600 and 800 by the end of the year [73] Q&A Session Summary Question: How much does the Egypt project represent of this year's revenue guidance? - Management indicated that Egypt's contribution to revenue will decrease from about 50% to under 30% in 2025, aiming for no client to exceed 10% to 15% by 2026 [68] Question: What is the timeline for recognizing revenue on the ONE Amazon and other projects? - Management stated that it takes 3 to 4 months to start building and scaling operations after understanding customer requirements [72] Question: Do the contracts for large deals provide upfront payments? - Management clarified that it depends on the project; some contracts may not provide upfront payments, requiring additional capital to cover costs [81] Question: Is management committed to reporting results quarterly? - Management confirmed their commitment to quarterly reporting moving forward [112] Question: What differentiates Gorilla's AI approach? - Management emphasized that Gorilla focuses on edge AI, designed for real-world applications, ensuring practical solutions that deliver value quickly [120][122]

Helport AI (HPAI) Q2 2025 Earnings Call March 31, 2025 09:27 PM ET Company Participants Ethan Devine - Director of Investor RelationGuanghai Li - Chairman & CEOAmy Hsiao Fong - President & Interim CFO Conference Call Participants None - Analyst Operator Greetings, and welcome to HealthPort AI's First Half Fiscal Year twenty twenty five Financial and Business Update Conference At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. And as a ...

Financial Data and Key Metrics Changes - The net loss for Q4 2024 was $31.4 million, or $0.54 per share, compared to a net loss of $32.2 million, or $0.56 per share in Q3 2024 [6][58] - For the full year 2024, the net loss was $156.8 million, or $2.70 per share [6][58] - As of December 31, 2024, the company had over $90 million in cash and investments on hand [7][59] Business Line Data and Key Metrics Changes - Research and development expenses in Q4 were heavily focused on narsoplimab and Zaltenibart [59] - OMIDRIA royalties for Q4 totaled $10.1 million based on net sales of $33.6 million, an increase from $9.3 million in Q3 [63] Market Data and Key Metrics Changes - The market size for paroxysmal nocturnal hemoglobinuria (PNH) is reported to be $3.9 billion in 2023 and projected to exceed $10 billion by 2032 [36] Company Strategy and Development Direction - The company plans to independently launch narsoplimab in the U.S. while seeking partnerships for ex-U.S. commercialization [124][126] - The focus is on restructuring the balance sheet and exploring various funding options, including partnerships and royalty monetization [8][104] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the data supporting the BLA resubmission for narsoplimab, highlighting significant survival benefits [77][78] - The company is preparing for the market launch of narsoplimab, with a strong foundation of awareness among transplant physicians [116] Other Important Information - The company is advancing Zaltenibart for C3 glomerulopathy and has received a rare pediatric disease designation from the FDA for this indication [46][47] - OMS527, aimed at treating addictions, has received funding from the National Institute on Drug Abuse for a Phase 1b clinical trial [52] Q&A Session Summary Question: Can you tell us why you believe the BLA submission is strong? - Management highlighted that the statistical analysis plan was created with FDA's agreement, and the results showed a more than three-fold improvement in survival for narsoplimab-treated patients [76][78] Question: Can you comment on pricing for narsoplimab? - Management indicated that pricing plans have not been disclosed but are expected to be in line with other complement inhibitors used in TA-TMA [91][92] Question: What is the strategy for funding and managing the balance sheet? - Management stated that they are aware of the need for balance sheet management and are exploring various options, including restructuring convertible notes and seeking additional capital [104][105] Question: Where does the company stand on manufacturing scalability for narsoplimab? - Management confirmed that they have sufficient drug supply to support the launch and initial market demand for narsoplimab [112] Question: How does the company view its long-term strategy regarding partnerships? - Management plans to launch narsoplimab independently in the U.S. while seeking partnerships for ex-U.S. commercialization, with a focus on leveraging their deep pipeline [124][126]

Irina Axenova Hi. Good morning, everyone. Thank you again for staying with us for so long and we do apologize for the technical difficulties that we have in the morning. I hope that everything is working well now and the sound is loud and clear. We would like to start our Fourth Quarter Earnings Conference Call Sigma Lithium. And on the call today, we have our Co-Chairperson and Chief Executive Officer, Ana Cabral, and our Chief Financial Officer, Rogerio Marchini. I would like to remind you that the presen ...

Financial Performance - Total revenue for the fiscal year 2024 was $25.4 million, a 2% increase from $25 million in 2023, reflecting a transition towards subscription-based recurring revenue [10][28] - Net income improved significantly to $513,000, up nearly 71% from $299,000 in 2023, indicating margin expansion and a more efficient cost structure [12][32] - Adjusted EBITDA reached $2.37 million, compared to $1.64 million last year, showcasing the ability to scale while maintaining profitability [12][31] - Cash and marketable securities at year-end were approximately $12.3 million, compared to $12.75 million at the end of 2023, with no debt [13][32] Business Segment Performance - The Cloud Infrastructure and Disaster Recovery Service segment saw revenue climb 27% year-over-year to $12.3 million, making up 51% of total revenue [11] - A decline in one-time hardware and a slight decrease in managed service revenue were noted, aligning with the strategy to prioritize sustainable recurring revenue streams [14] Market and Strategic Developments - The company expanded internationally into the U.K. with the launch of CloudFirst Europe Limited, establishing a regional presence and deploying three Tier 3 data centers [17][18] - Partnerships with Brightsolid and Pulsant facilitated this expansion, allowing compliance with strict regulatory requirements [18] - The merger of Flagship and CloudFirst in January 2024 enhanced internal efficiency and created a stronger go-to-market engine [20] Management Commentary - Management expressed confidence in the company's strategic direction, emphasizing the importance of cybersecurity and compliance in attracting clients from regulated markets [52][54] - The company aims to leverage its strong financial foundation and high-retention recurring revenue model to capitalize on growing demand in regulated and global enterprise markets [26] Other Important Information - Selling, general, and administrative expenses increased by 13% to $11 million, primarily due to professional fees and international expansion efforts [27][30] - The company reported a compounded annual growth rate of 18% for organic growth in its cloud services, with a higher rate of 30% when including the merger with Flagship [15][58] Q&A Summary Question: What are the spending plans for 2025? - Management indicated that they expect some CapEx spending but do not anticipate significant increases, with $575,000 invested in the U.K. and $1.2 million in the U.S. for 2024 [36][41] Question: How comprehensive is the coverage of cloud migration opportunities in the U.K. and Europe? - Management acknowledged that while they are making progress, there is always room for improvement in capturing migration opportunities [45][46] Question: What is driving success in regulated markets? - Management highlighted the importance of cybersecurity and compliance, noting that their reputation in data migration is a key factor in attracting large accounts [54][52] Question: What is the organic growth rate excluding hardware sales? - Management reported an organic growth rate of 17.8% for subscription-based services, with a higher rate of 30% when including the Flagship merger [58][59] Question: Is the company comfortable being free cash flow neutral or positive in 2025? - Management expressed confidence in achieving free cash flow neutrality or positivity in 2025 without relying on equipment sales, supported by a strong recurring revenue model [73][72]