Q1-2020 Reported Revenues increase 77% over Q4-2019 to $1.2M
Precipio Pathology Sales Performance Metrics Demonstrate Growth in Customer Acquisition, Retention, and Total Case Volume
NEW HAVEN, CT, (May 15th, 2020) - Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO), filed its form 10Q for the period ending March 31st, 2020. Within the report, the company showed a 77% revenue increase from $0.7M in the prior quarter, to $1.2M in Q1-2020. The increase in revenues were driven by several factors outlined below, including the increased productivity of the company’s sales force, as well as the pharma project conducted by Precipio. Additionally, management presents the analysis of six key sales metrics that demonstrate the positive impact of their sales force expansion improving sales performance.
Pathology services revenue increased 27% in Q1-2020 vs. Q4-2019 and 51% vs. Q1-2019. Part of Precipio's revenue increase resulted from internalizing several molecular tests in our lab starting in Q1-2020, rather than previously sending them out to other reference labs. Additionally, the growth is attributed to other factors listed below such as case volume increase, and a continuous growth of our customer base, both new and recurring customers.
Overall case volume increased 43% in Q1-2020 vs. Q4-2019 due to an 87% increase in Peripheral Blood (PB) samples and a 17% increase in Bone Marrow samples from both new and existing customers. Case volume grew 90% vs Q1-2019.
Recurring customers that ordered each month during the quarter increased 16% in Q1-2020 vs. Q4-2019 and increased 61% vs. Q1-2019. The increase was primarily due to our ability to retain new customers.
Average revenue per unit (ARPU) decreased 18% vs. Q4-2019 and decreased 22% vs. Q1-2019. This is largely due to the successful adoption of the Hemescreen assay with our physician customers. As a stand-alone test with lower-revenue than a bone marrow sample, the increase of individual Hemescreen tests sent to Precipio reduced the overall ARPU even though the total number of cases increased. Additionally, the increase of PB cases vs. the lower growth of BM cases as mentioned in Metric #2 impacted the ARPU.
Number of trial cases (new customers sending Precipio their first case) increased 67% vs. Q4-2019 and increased 96% vs. Q1-2019. This increase was driven by the improved performance from our newer sales representatives and the addition of the Oncometrix sales team.
Number of new customers increased 56% in Q1-2020 vs. Q4-2019 and increased 457% vs. Q1-2019. This increase was a result of our customer’s growing acceptance and reliance on the proprietary benefits of Precipio’s testing technologies and expert pathology network.
“Emphasis on training, messaging and a focus on our core technologies as a competitive advantage continue to show results. These factors will continue to drive our growth in the coming quarters,” commented Stephen Miller, Precipio’s Chief Commercial Officer. “Our new sales reps are now beginning to make an impact and with the addition of the Oncometrix sales team, we are hopeful we can keep our revenue strong amidst the COVID-19 disruption”, Mr. Miller further stated.
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, Harvard’s Dana-Farber Cancer Institute and the University of Pennsylvania, Precipio offers a new standard of diagnostic accuracy enabling the highest level of patient care. For more information, please visit www.precipiodx.com.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, statements related to the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, consumers, and the company, on our business, financial condition and results of operations, and any such forward-looking statements, whether concerning the COVID-19 pandemic or otherwise, involve risks, assumptions and uncertainties. Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management’s estimates, beliefs, assumptions and projections. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management’s expectations, or could affect the company’s ability to achieve its strategic goals, include the uncertainties relating to the impact of COVID-19 on the company’s business, operations and employees and the other factors that are described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis” in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated from time to time in the company’s Securities and Exchange Commission filings.
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