Earnings Labs

Precipio, Inc. (PRPO)

Q3 2023 Earnings Call· Mon, Nov 20, 2023

$31.65

+3.09%

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Transcript

Operator

Operator

Welcome to the Precipio Third Quarter 2023 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 on forward-looking statements as these statements are based upon our current expectations, forecasts, and assumptions, and are subject to significant risks and uncertainties. These statements may be identified by words such as may, will, should, could, expect, intend, plan, anticipate, believe, estimate, predict, potential, forecast, continue, or the negative of these terms or other words or terms of similar meaning. Risks and uncertainties that could cause our actual results to differ materially from those set forth in any forward-looking statements include, but are not limited to, the matters listed under risk factors in our annual report on Form 10-K for the year ended December 31, 2022, which is on file with the Securities Exchange Commission, as well as other risks detailed in our subsequent filings with the Securities and Exchange Commission. These reports are available at www.sec.gov. Statements and information, including forward-looking statements, speak only to the date they are provided unless an earlier date is indicated, and we do not undertake any obligation to publicly update any statements or information, including forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Now, let me hand the call over to Ilan Danieli, Precipio CEO. Please go ahead.

Ilan Danieli

Analyst

Thank you, and good evening, and thank you for joining our Q3 2023 shareholder update call. As this will be the last shareholder call for the year, I'd like to take a few moments to recap the recent quarter's results, and even though we still have six weeks left to the end of the year, to frame this within the context of 2023. Following that, since our next shareholder call will be in April of next year, I'd like to share some thoughts about what we have lined up for 2024 and what you can expect to see. Let's begin with our Q3 results. As you saw in our filings, we grew revenues by almost 30% from the previous quarter and doubled year-over-year from Q3 of last year. This is a very meaningful jump for us in business volume and was driven both by our Pathology business as well as our Product business. At $4.5 million per quarter, this puts us on the annualized run rate of $18 million, which begins to approach our breakeven point. Additionally, our cash burn dropped to around $1 million in the quarter, down to approximately 40% of the $2.5 million, which was our cash burn in the same quarter of last year. This is an astounding -- outstanding accomplishment for our company, and it's important to emphasize that this was not a fat cutting exercise. Those who know me and our company, you know that we've always been a very lean and frugal company. This cash burn reduction was accomplished by a combination of restructuring operational initiatives that saved a lot of money, and of course, in addition to our revenue growth, we generated positive cash margins -- generated positive margins and cash. So, overall we had a good quarter and we are continuing…

Operator

Operator

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Q -

Analyst