Key Metrics Indicate Continued Growth QoQ for Fourth Quarter 2018
NEW HAVEN, CT, (December 12th, 2018) - Specialty diagnostics company Precipio, Inc. (NASDAQ: PRPO), announced today that based on metrics observed in its October and November revenue numbers (quarter-to-date), the company is on track for continued strong Quarter-over-Quarter revenue growth.
Key Metrics Growth
Preliminary (unaudited) pathology services revenues in November increased 16% from October, keeping in line with expected Q4 total quarterly revenue growth in excess of 25% over Q3, driven by strong growth in both clinical revenue and pharma services. Additionally, the number of ordering physicians increased by a healthy 30% for the same period, and case volume increased, indicating strong adoption of the company’s offering and a promising pipeline of future revenue growth.
Lastly, average revenue per case also increased 9%; this increase is due to two key factors. The first is an increase in the percentage of higher-yielding revenue type cases called bone-marrow biopsies. These are biopsies that require complex work-ups utilizing multiple types of technologies in our laboratory. The second driver of the increase in average revenue per case, is HemeScreen.
HemeScreen™ Preliminary Contributions
The implementation of HemeScreen in Precipio’s case workups is contributing to the increase in average revenue per case. Previously, when relevant molecular tests were required, our lab would forward those tests to a secondary reference lab, thereby resulting in no incremental revenue for these tests. Following the launch of HemeScreen, Precipio now runs these tests internally, yielding a turnaround time of 1-2 days on more than 85% of the tests for its customers - and an increase in revenue. As more physicians order these tests, Precipio anticipates maintaining and potentially increasing this observed average revenue per case.
During the first quarter of 2019, management will schedule a shareholder conference call to share information and provide transparency on the various sales metrics used to measure and track company growth. The company will provide the goals set for each metric for the coming fiscal year and articulate the financial model that drives growth and revenue. This will enable Precipio’s audience to gain a better understanding of the key metrics driving business growth.
“These metrics all point to one unquestionable conclusion: the company is executing on its growth plans. The metrics indicate continued growth of our business and the adoption of our value proposition in the marketplace,” said Ilan Danieli, CEO. “The combination of the increasing case and ordering physician growth metrics, alongside the anticipated increasing revenue per case is expected to drive greater gross profit and concomitant reduction of our cash burn, as we continue on the right track towards profitability.”
Precipio has built a platform designed to eradicate the problem of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions and delivering quality diagnostic information to physicians and their patients worldwide. Through its collaborations with world-class academic institutions specializing in cancer research, diagnostics and treatment such as the Yale School of Medicine and Harvard’s Dana-Farber Cancer Institute, Precipio offers a new standard of diagnostic accuracy enabling the highest level of patient care. For more information, please visit www.precipiodx.com.
Certain statements in this press release constitute “forward-looking statements,” within the meaning of federal securities laws, including statements related to ICP technology, including financial projections related thereto and potential market opportunity, plans and prospects and other statements containing the words “anticipate,” “intend,” “may,” “plan,” “predict,” “will,” “would,” “could,” “should,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the known risks, uncertainties and other factors described in the Company’s definitive proxy statement filed on May 29, 2018, the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 and on the Annual Report on Form 10-K for the year ended December 31, 2017 as well as the Company’s prior filings and from time to time in the Company’s subsequent filings with the Securities and Exchange Commission. Any change in such factors, risks and uncertainties may cause the actual results, events and performance to differ materially from those referred to in such statements. All information in this press release is as of the date of the release and the Company does not undertake any duty to update this information, including any forward-looking statements, unless required by law.