iSpecimen Inc. Q2 FY2022 earnings call

• Christopher Ianelli discussed operational performance, including expanding the iSpecimen marketplace platform, enhancing software capabilities, adding new biospecimen suppliers, restructuring the sales team into pods for improved productivity, and addressing the impact of the Ukraine conflict and economic environment.
• Jill Mullan talked about working on a unified search feature to integrate biospecimen and patient search in one interface.
• Tracy Curley reviewed financial results, including revenue, cost of revenue, and cash spend on technology.

For the three months ended June 30, 2022, revenue was $2.3 million compared to $2.9 million in the second quarter of 2021. Revenue from COVID-19-related specimens was $170,000 (7%) in 2022 vs $896,000 (31%) in 2021. Non-COVID-related specimens accounted for $2.2 million (93%) in 2022 vs $2 million (69%) in 2021. Specimens accessioned increased by 12% to 7,004 but average selling price per specimen decreased by ~$130 (28%). For the six months ended June 30, 2022, revenue was $4.9 million vs $5.9 million in 2021. COVID-related revenue was $649,000 (13%) vs $1.6 million (27%) in 2021. Specimens accessioned increased by 5% to 11,928 but average selling price per specimen decreased by ~$132 (26%). Cost of revenue decreased 33% in Q2 2022 and 30% for the six months ended June 30, 2022.

• Tracy mentioned COVID-19 revenues are expected to continue declining but no specific guidance on the extent due to uncertainty. - Chris emphasized the company's focus on executing strategy, investing in technology and key personnel, and expects convergence of capabilities to drive growth when life science markets recover.

• Geopolitical unrest, including the Ukraine conflict, impacting supplier capacity and order fulfillment. - Uncertain economic environment affecting customer spending and purchase order sizes. - Continued impact of COVID-19 on business, though not dramatically impacting currently.

Q: Matt Hewitt asked about areas to enhance on the platform.

A: Jill Mullan said they're working on unified search to integrate biospecimen and patient search in one interface. Chris Ianelli added it's about unifying siloed technologies.

Q: Constantine Davides asked about the large purchase order.

A: Chris said it was a new customer with old relationships, Jill said it's a prospective oncology-related long-term project.

Q: James Lieberman asked about tipping point for multiple multimillion-dollar agreements.

A: Chris said they envision a tipping point with convergence of capabilities aligning with life science market recovery, Jill and Tracy added on expenses related to initiatives.