Precipio Pathology Sales Performance Metrics Demonstrate Substantial Improvement in Q1-2019
May 30 2019 - 10:15AM
Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO),
today provides shareholders with three of the key pathology
performance metrics tracked by the company to ensure continuous
growth of the business. These metrics demonstrate the positive
impact of the company’s sales force expansion and ongoing
improvement of its sales performance, resulting in continuous
revenue growth in Q1-2019 vs Q4-2018 and Q1-2018.
The company’s revenues are comprised of two key
components. The first is pathology services revenues which are core
to Precipio’s business; and the second is the pharma services
revenues which are generated by former Transgenomic customers from
projects originating prior to the merger. Following the merger
between Transgenomic and Precipio in 2017, Precipio refocused on
growing pathology services, as well as developing its core
technologies.
Pathology services are one of the company’s key
drivers of revenue growth; conversely, pharma services revenue is
project-based and therefore much more sporadic. In Q1-2019,
pathology services revenues were up 12% QoQ from Q4-2018, and 149%
YoY from Q1-2018. Pharma services revenues were down 6% QoQ from
Q4-2018 and down 68%% YoY from Q1-2018. We believe it is critical
to measure various performance metrics for pathology services which
can be used for both internal and external transparency.
Furthermore, as company management previously stated, these metrics
will be provided to shareholders on a quarterly basis to help
better understand the growth of this part of the business.
The following table presents the three key
performance metrics management will be presenting on a quarterly
basis. Each quarter we will provide quarterly percentages for
growth compared to the prior quarter and the YoY quarter.
Metric |
Q1-2019 Growth Over: |
|
Prior Q |
YoY Q |
|
Case volume |
+32% |
+120% |
|
# of recurring customers ordering monthly |
+33% |
+400% |
|
Total number of ordering customers |
+19% |
+342% |
|
Below are explanations for each metric and the
significance in understanding company growth:
Metric #1: Case volume Case
volume includes both bone marrow and peripheral blood samples and
is a key driver of revenue and one of the most critical factors
measured. While each case generates a different monetary value,
this metric is typically a good proxy for revenue. E.g. Bone marrow
samples generate 2-3x more revenue than a peripheral blood sample.
Management measures case volume on a daily, weekly, and monthly
basis, tracking the case volume per customer.
Metric #2: Recurring
customersRecurring revenue is the key to building a
sustainable competitive advantage that demonstrates that customers
remain with the company. It is also critical to continuous growth.
Once a customer has agreed to try the company’s services, if they
identify an advantage to our services over the incumbent lab they
are using, they will switch to our lab and continue to use our
services on a consistent basis. This is a key factor that indicates
our ability to attract and retain customers who order our services
each and every month.
Metric #3: Total ordering
customersThis metric tracks the total number of customers
that have ordered from Precipio as of the current quarter, as
measured against Q1-2018 (YoY) and Q4-2018 (QoQ), tracking the
increase in the total number of ordering customers by quarter.
“Our customers are responding very favorably to
our dual-pronged strategy highlighting the value of our academic
pathology expertise along with our proprietary technical expertise,
which includes our IV-Cell™ cytogenetics media, Rev-CI™ (reverse
cell isolation) methodology and HemeScreen™ molecular screening
assays,” stated Stephen Miller, Precipio’s Chief Commercial
Officer. “These technical advantages are designed to give our world
class pathologists the most robust data to enable them to use their
professional expertise to the fullest extent,” concluded Mr.
Miller.
About Precipio
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.
Forward-Looking Statements
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 April 19, 2019, the Company’s Quarterly Report
on Form 10-Q for the quarter ended March 31, 2019 and on the Annual
Report on Form 10-K for the year ended December 31, 2018 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.
Inquiries:
investors@precipiodx.com
+1-203-787-7888
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