Exagen (XGN) 12 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, good morning, and welcome to the Exagen Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ryan Douglas, Investor Relations. Please go ahead.

Good morning, and thank you for joining us. Earlier today, Exagen Inc. the September for XXXX. results financial quarter XX, ended released call and Chief Chief morning's John on release the today's be and at results Officer; the call. A the Jeff quarterly announcing of company's this Aballi, President found host Executive Black, can press will Financial recording www.exagen.com. website and Officer,

factors includes uncertainties we in certain encourage call in release and may described on press which made today's our that the to filings, review today's today's those forward-looking the company's performance As and the you forward-looking statements, risks in SEC call. statements differ contained contained actual the results and cause statements materially identify events, from to

and will measures the non-GAAP non-GAAP financial to President we in Descriptions financial on measures addition, of are of to press over discuss and turn of financial now reconciliations CEO release. I will Exagen. included GAAP call. In Aballi, measures John today's call this these non-GAAP

become job first, fantastic as jumping But to has in on key us Jeff. to adding We the financial Financial and thanks of a Jeff Officer. make in morning, Good plan. few we've executing near-term joined member continued detail to Welcome the a the again, welcome goals our a and Exagen, our Today, and substantial quarter. our today. to Black exciting cover want I officially team and to progress Jeff relating Chief strategic for for the joining quarter and at provide where I'll highlights quickly call has had new everyone September done an team. value X

third profitable to our expectations growth. quarter strategic the plan in came performance our continued delivering line execute as of we Our with in

of which achieve year. ourselves overall next by up we end the well positivity, We have believe will set occur now flow cash to

I the year, detail for our impact the the the Jeff was These for on near-term long-term inflection seasonal additional $X.X of the provide events the and our AVISE quarter-over-quarter time impacting the territories. slightly anticipate. includes total excited an very weather-related negative change with due uptick adjustments Our performance line internal later to the of outlook net our was in Southeast be we quarter, onetime end down continue of $XX.X financial expectations, call. In about in third but quarter potential for which the business onetime million, in million adjustments. factors, will physicians volume looking to adjustments business, our and slightly towards in testing including at the out-of-office and revenue

the of to growing onetime XX-month ASP demonstrating efforts test seventh for up further the Our the CTD consecutive our $XXX of trailing quarter, improved ASP. in negative AVISE per inclusive strength and adjustments, net

for Our the XX% deliver million year. adjusted for loss and track quarter, EBITDA improvement $X the on a was to well are we approximately full

last over back while Looking revenue expenses, I'm years, grow X to our R&D. extremely both the progress reducing operating SG&A at and proud ability in of the continued total

XX%. of near-term and grown we XXXX our same sales by force ASP for XX% we've new making. progress demand margins pace expansion EBITDA almost extremely margin gains while of expect product final and in and X,XXX we're our biomarker innings improved near-term related expanded by improved in time, over XX% in of basis a brought by reduced loss points, our R&D prioritization of doubled XX%, nearly nearly our gross XX%, by accelerate OpEx first over adjusted offering the by us productivity At the we expenses same increase cusp are in we growth positioning the financial results excited months the first now organization. Comparing new of X almost revenue will which for years, reduction our investments, we're in nearly intense resulting to the profitable new focus significant opportunities. Most I'm XXXX, on and deliver notably, ASP profitability. will Additionally, our which for about launches, an have and X pipeline products, to launching the period in

the efforts CTD AVISE platform. markers through to bring proprietary our relates to One of the rheumatologists developments to new quarter key this our

and Our teams insights clinicians the validation been standards. heavily on deliver tests of increase. We've have expanding lab focused worked the our capacity and while optimized anticipated these demand high-quality our at extremely to studies to hard completing the built for valuable successfully

of Department await of our and approval. now eager I'm are final especially launch submitted and New to these York given offerings team, we excited that the We Health wait commercially. we've to State proud and can't

our for accepted meeting X Rheumatology, performance ACR, Three of and abstracts detail benefits of educational the campaigns. meeting, and month. this markers. or College ideal to in leverage We abstracts Additionally, to the of abstracts Washington, the presentation and we the ACR our the of D.C. is annual place off and these new plan commercial societal American kick had held time launch being these

the be we marketing our week later to assays start attends year-end, and by commercially We as available will enhancements ACR. this team expect the

our educate While commercial their community and and assay have value these the bring on team the robust, our markers ensure rheumatology to validated clinic. is been can working has new our teams clinical laboratory to approved, been preparing to

and preparing position one-on-one including to XX an conducted team over for person, marketing tests. has considerable clinicians best we've in Our AVISE meeting spent launch, enhanced time in and board field the advisory the with

on roundtable new report test plan results. and with requisition and held the and we interpret over perspective their Additionally, how markers XX clinicians, educating the to we our on getting revised discussions them

we've streamline their With input, to new completely their experience and for test report clinician practices. a created improve workflow the

cusp ensure changes confident far company. the a to our an fun People in in organization enhances launching which portfolio within highly the incredibly busy and new presented our know product the by that first that in last and time meaningful several how of energized are the we've to way we're on and years. come work understood rheumatologic required markers the are care. It's are these we've We done

our and meaningful a relevant significant a back. just commercial from of in all presence years change progress is ACR with Our reflected couple abstracts efforts, our X being to

continues climb and the to launch assays. ASP new of accelerate Our with will these

our performance has hard, ahead us with the board of it Jeff product consultant this our makeup year, to I've evolved that working forward I'll feel launch later the clinician. I this turn team year the on Our commercial better new to will I us. With true pay and dividends come the a and past for XXXX and look have strong the is that, of detail to quarter. over out to one financial this closing believe team we that personifies to exciting of since

results start in off by everybody. minute, thank but already forward to good and team John, into several in you I'm you, community, wanted a Thank warm morning, I'll just investor the and of the Exagen partners the saying looking I to know Exagen's welcome. to the expand the get place experience working put solid his The built. all you exceeded how bringing results my X John terms ago into and of even on have and have team strategy quickly we the continue years with expectations of in foundation to as John materialized. probably for has

forward with the for working As John business we close long-term growth next on revenue. building with of the in shareholder success on Exagen to to value. Starting profitability, I and and phase bringing look

in quarter compared As John on decrease will due million, the X% quarter, down shortly. primarily third mentioned, the was expand adjustments I third XXXX. third to to was of This revenue recognized which $XX.X quarter onetime

the $XX.X revenue up over And up increase XXXX. X% ASP primarily these was expansion. Excluding was driven in million, revenue million, XXXX. was $XX adjustments, about in X% over quarter This our XXXX year-to-date, by

around more adjustments. color some the Now

first, the inception we $XXX,XXX revenue a third onetime total Our $XX.X related and $X.X resulted dating our quarter an for coding AVISE of and in product's identified Vasculitis test this million XXXX, self-corrected in in million XXXX this included the in quarter. Breaking the CPT to revenue third down, discrepancy in approximate reversal of back to adjustments.

joined the rates our In undertook things and with addition, accounts of I one a review was I of team. first accrual my full receivable when

standard review reserves known assess and accounts collection a against balances practice, rates As risk. establish we our and accrual receivable

we we approximately accounts our policy. $XXX,XXX at-risk standard review, recognition this to identified be During outside revenue additional receivable judged

of $XXX,XXX with full associated we in a third took result, the to As adjustment reserve a an revenue. this quarter

in ASP. the While our expectations, these adjustments we're to rise these and to otherwise continue news third we forward. our reporting quarter, is systemic, accuracy giving the line of in confident matters expand adjustments not with good The are dampened the going

Moving operating performance. on to our

in was third basis points compared margin quarter. in the gross onetime margin the XX.X% third XX.X% Notably, approximately quarter had Our in gross the XXXX. impact to XXX adjustments on

third the increase margin of quarter in was XXXX, in adjustments, gross is compared was to the and in increases Year-to-date our 'XX. we're gross these to primarily due seeing in gross XX.X% Excluding XX.X% margin the ASP. margin XX.X%

across expected the drive to the continued we're efficiency markers especially cost in operations. into ahead, with new addition time, confident ability look mid-XXs we our of As and improvements gross and over margins the our

COGS, to quarter We execution excluding are report continued million, compared or down to in pleased expenses, our $X X% the Operating over expense XXXX. third were million on $XX.X management.

were Our revenue first a XXXX. manage manage thoughtfully. our toward to of in investments expenses to in with commercial sustained operating and an were compared is long-term in to profitability. At XXXX the to months testament revenue same our revenue support time, costs continue eye million, growth, commitment and grow These prudently over focused we've XXX% pipeline XXXX. and our maintained down expenses compared million operating balance year-to-date to $X XX% R&D organization or the And we'll this XX% $XX.X X to this

$X a of X improvement us. quarter the XXXX, in this for months was critical for management, As period our narrow the continued result the objective same losses, to and first remains of nearly Net over XXXX. and XX% $XX.X loss expense a ASP we've million for third and million expansion of an

the our a was EBITDA Our million $X.X 'XX, compared million And 'XX XXXX in EBITDA million onetime improvement. million of an inclusive of was over adjusted third the million in $X.X adjusted to quarter XXXX. year-to-date, $X $X.X for XX% to loss compared adjustments, loss in $XX.X loss,

and quarter since brings the a that our net We issued a XXXX of complete -- reconciliation million, of with a organization. reminder, expense Please equivalents $X.X it's $XX release quarter me net expense to burn for EBITDA cash third to balance for of earnings of sheet. the ended our today quarter adjusted representing the cash the million. to stock adjusted cash for noncash comp cash earlier refer and As excludes loss. And flow a EBITDA

million, the the the end at was second of quarter. at $XX.X receivable Our end of $X.X third from the balance quarter down accounts million

our committed and and value continue to for and efficiency of drive remain take creating shareholders. assets practices our believe our to to flow we gives appeals processes. We collections to business in us cash optimize stewards We our long-term billing responsible are to preserving need enhance balance runway sheet today our and positivity. We the

$XX million earlier we to $XX reflecting now better As adjusted and $XX we full in the adjustments third XXXX EBITDA million, looking loss of primarily announced to onetime year, of expectations today, the our remainder of revenue impact million. of expect reiterate year the quarter, than we the

of about the in Our with closing, that would XX% Exagen, more the operational being chance yet common to that's John on over adjusted happier outlook of a profitable be advantage revenue gross margin over company open an take exciting to our to XXXX deliver It's had parallel breakeven in now dig revenue leveraging the here assets exactly and part with market. in, over business in in a growth, call company, us. We'll company see couldn't over of an for growth XX% sights 'XX the playbook in XXXX. And the management, and space see expansion of has cash X% focused turnaround not than a has well of EBITDA growth, and such at the revenue underserved the and Exagen. I job XXXX potential done streamlining questions. our it's XX% opportunities to its front committed be current improvement nearly core a of to competencies. executing and OpEx in positioned company incredible on executed now up I've to flow and

from the BTIG. question Massaro [Operator from comes Instructions] of line Mark first The

like just walk me that nice you your again. a Jeff, go sure you Jeff. reserves. I the will one-timer of did Maybe the to you sounds a to that first just through make with your matter little review of just the AR, not systematic. all bit more is work heard Maybe one of -- to It say

to your confidence don't you And happen what think wanted in also is QX. ask to impact the again perhaps? Just checking the I gauge to due then was storms likely this to that

Sure. again. to Sure. can Mark, of great on board. adjustment be John question, take seasonality comment to impacts. Great I'll reconnect with the and the on you some let I

I $X.X said, breaks the down, adjustments about thinking pieces. X -- as in million think really I So in

or I Vasculitis on that historical self-reported think an is self-discovered the more we for did test AVISE it. and we adjusted simplistic discrepancy have one our coding

coding $XXX,XXX reversal in that rate. the resulted between revenue. given difference just about And that So a of CPT reimbursement the was

into onetime behind really certain terms well inception a of risk $XXX,XXX balances what to discrepancy balances. identifying us. coding Mark, in effect very exactly that's is our So of a AR cumulative of we It related Really, the AR about, the dive and since value test. thing, is carrying just onetime more deep third it's said, write-down was in what taking really a the The talk quarter. reflected the that justified a you

importantly, rates. payer think no I material changes to

impact value that seeing on about of have adjusted AR this for. So This carrying not an we we're more ASP. really is

an our see expansion John fact, In to continue as in ASP. said, we

was AR overall impact our risk addressing but expected identified rates. really payer it to It us, some balance, had one this no time. the or So in was on

And making on like new launch. Great. John. biomarker for you progress then one good Okay. sounds It you, the are

little hoping think might of You prior much an know maybe shed you quarter, about the get company but in you a light just bit can an in talked how benefit that ASP about talked to impact the about of XXXX? increase. you I

well. for Thanks hit the question you ago referenced I'll second expand Mark, on certainly. storm opportunity as here. to a also the

So to and of enhancements track are on launch first the by State. the we internally submitted excited and our year. completed those validations and York our We've to marker analytical New new foremost, end

And for regulatory waiting the now we that rules. new the can we're done. everything FDA approval under control, we've really, So

bit ASP to approach. is we So a of impact And is us. business we anticipate this here, on impact very time volume terms the going year-end, but first wait-and-see time be exciting that again, it through specifically expect a for FDA a this My of in by to approach our quantifying post little substantial. here or rules. The

out We the color I'm codes. I hesitant can have higher bank, our to CPT are internally. a good hits just is a established have a the think want that to throw But model certainty. From of I until cash degree number. I these standpoint, provide

our be proprietary to will it code. part opposed code as CPT a So of stack

there on the coverage our don't methodologies well CLFS, Pricings hurdles flow So ELISA-based we huge both anticipate standpoint. on established cytometry are as lab, the as within assays.

New the And now anticipate that end submitted being that the impact positive be to by And York ourselves standpoint, flow we've so do of from already we cash given sizable. XXXX. to State, foresee organization

huge a us organizationally. impact So for

Mark. As at certainly the up continued hurricane, to it QX. relates it which hurricanes, But -- the so we happy third an start into as follow from to end of of with other impact questions quarter, the there, relates the saw

additionally, most at with important clinic test blood testing, testing. And that first our or recall X-day it's to AVISE our of no I sample than more visit. of For think diagnosis types viability for our used often the a is AVISE time

or we're sensitive delays So that. are disrupted that if when mind, context shipping that in to or visits you clinic keeping have in context occur,

certainly business model Our is.

in the in it's the as of our And storms, shape, especially These well. are you're those very size came out relatively team the I'm aware. of the powerful were impact. as and members first by with extent foremost, challenging storm an our Florida, good way, people pretty So anticipate to thoughts sure But and recovering.

of XX% periods of them days. of the some of lost QX. at to into power, case, QX bit X, So obviously, our a of you in X.X approximately weeks our contact, We've here, with steady and we saw without color for Florida stayed out volume upwards extended and little our clinics, of X in give testing end

people to we certainly for some clinics. in seeing difficult business to damage our continue area. Florida in people recovery them It's this And find really as helpful. had to Some we'll recover, the be But ways their of of that now. are

you give a So just to feel.

The of line Cowen. is from the next Dan TD question from Brennan

like think, you've million. be the $X.X positive again I call Maybe it, nice $X.X working on on X just last, or quarters, to I had Jeff, well. you know more average, X with million of one as development. the

think I any. quarter, This you reported don't

the $X.X going does more Just those. now trying period on that and the you of forward? that to reconcile both mean the AR the balances prior scrutiny no million and developments up, is -- that clean So does positive

And working a it's question. to you great Dan, with a again. great question. great again, Yes, be It's

point, we expected, think I start those But can to great or to raise put a population bolus say I bore started million right? a the very of period our you collections period -- prior prior set and was ago, of X were this I'll they identified, taper, is focused collections a of and XXXX. we separate John think there as in the terms that come $X.X and been expected, of very that in really very specific process adjustments efforts When with definitely all right? untapped collections. we was we do those, that's And opportunities collection are on seeing, nothing when X were do started that years again a those had large fruit saw

fruit also develop and had we've nature just with adjusting But continue that we XXXX payments pre'XX. And we we our there's prior our become most our estimating believe going back always as be collections opportunities of dating expected the to population, the more we've of accruals. to enhance as appeals captured period we to great better also So process. our history And collections, to rate and especially success. low-hanging at payer business, capture

greater continuing the payments to expected just the even size out prior differential prior have But point with that our or ASP. of will said, XX-month all and see collections between reduce tapered, actual period that than period in we're will expansion as collections collections. to the payments our and narrow, So continue to

good really that. feel we about So

I guess, for maybe, John. And Okay.

I I on talked you you a out, you X one notable not in impact volume session, prepared the utility. out I have expect an remarks but pick what's know improved of on some the only think, have posters price, in you given and whatnot. fundraise you impact exciting? kind Maybe can abstracts also, With most just of terms the know

basis a So with just like really maybe all abstracts? you out terms today feedback initial the of kind Maybe us just walk you to characterize utility through what you And volumes? of bit little and stands penetration done might what are in increased these from -- where penetration if mean looks help meetings walk what us like. the can doctors. a this from what's in like You've about and through

Absolutely.

So to get most you excited excited of a to over some that about based people terms -- And the is of surprising we're weeks, bringing interest ask RA started -- clinicians a lot of months. that were most seronegative market. on to what actually the feedback it couple of if where was response are kind of the several last I curious seeing in they markers we're

phases have -- this So enhancement. this we X product of

The The first one XXXX. launches sometime in be by one next will here year-end.

includes of sets validation of the clinical both markers. abstract Our

revamped ability in the best-in-class by we've to diagnose terms will RA. RA of So patients it seronegative be the time our profile, and with identify

if RA That identified would labs, about of right be find generally, XX% you at patients. of So just other, testing now other clinically. shy conventional use to were you'd X/X,

in they to right? they -- folks difficult refractory have they're become don't Also, evidence authorizations to those And RA get a in is told become the of becomes very roughly is, with manage starts diagnosed no whatnot, quite we all difficult of this the treatment they patients because to for regimen, truly as yourself us as more prior the to treatment?" that many patient and their they support blood, that denotes trouble half "Did lot. progress refractory do, you their drugs diagnosis. as which a Or joints firsthand then clinicians population of and diagnosis. either But second-guess of these as through clinician dynamic. you treatment. The biomarker the have having are question, it their this their a diagnosis a serum, start clinical there's So evaluation biomarker through And

why clinic the place. the did a for first the through a this patients is really as these challenge we recognized we market we in of tough went here which came this is top working after we clinical first part is need. That's So research rheumatologists, when

the -- markers identify patients. And that that abstract. launch So are seronegative to roughly you'll we're these all half going here of see in

XX%. So about

to to You take But at the to now That's to I any also, going XX% narrow seronegative gap. out is profile there's we're do. And progression. able to continue close to there. there capture very right meaningful up offerings of a additional that that unaware don't misdiagnosis Like some that commercially what said, ways of that that level we XX%. looking XX% yet, we're be are that in come

So profile especially, that they're workup time as if your to of profile from after the negative diagnosis run shown extensive refractory you diagnose have question it. you and our diagnostic if patient the of if patient you for RA, really a still is standpoint, has have going our most we'll part -- out some to truly there really correct, because the treatment,

prevalence what lupus. most feedback clinicians. in about So RA that's terms we and in that area in, based I'm This talking but an higher of on our of magnitude penetration of is incidence very rheumatology some in have It's than firsthand light. order to probably excited

be and go the organization, there. from the now, certainly interesting But to will product, of a see changes buzz it around to tell So our that. utilization this early certainly but how right lot we'll of

sneak or quick just another maybe in Terrific. can Maybe I X. one

by know out. another So way? XX like XX works mean, might if I to -- add codes? I'm it it biomarkers of divided correct is this in XX very higher. simplistic But X/X place. code get color we'll wrong, more like the test as I don't kind So maybe it on I you're know your pricings X and how existing these be think has you I me get price per sounds a is looking

now. And to talked kind flow think 'XX. us you cash So by I about B, right not being don't place bad for then, that's year-end of start positive know free I a if

cash get -- Like change in think free raise the that was think out capital so your guide of any to more even be fund you the 'XX. I prior going towards So need do cash flow does was balance not going years? positivity, sheet to sufficient mean, you're sufficient kind into how I on to you're to to now? now Is

Yes. Great question.

So actually coding on markers. CTD the them test using of our code. built XX XX front, has PLA the have we are out current AVISE

that to So that's get you how that lupus because you just our referenced with have we XX back algorithm. number an index associated score

And They're the that so as in those XX out biomarkers built are package not a applies package, ordered a ordered individually. as index and context.

and inflection committed been cash From to get state, standpoint, transforming to is that currently launch new believe relative we laser-focused on transformation on. of some that the ELISA this to adding ample that the in and the It's -- I highly shareholder it, PLA we're and positive markers. is shareholders our we launch. hopefully, get to code at standpoint, reimbursement capital you have plus, flow it of on how to take you additional do positivity, we're over positive Again, color. believe the But see we're undervalued couple the flow cash value. we'll we cash We've on So X X hit flow a about gives organization. first XX. Then runway head. what to we're that the the flow call this here side. with shakes right creating are on From side, to of where markers, these X out the months a

our new we We do at to our see that progress, goes goes. not with want financial of valuation our months. over see XX runway, current our to a push out financing. From operational consistently standpoint, any launch So sort the we're next coupled want here ability in the to how how the and product to hurry progress

to to it, We point have debt don't will in XX share about year next year -- call I those specifically. it. or we're front, and do strategizing Jeff our now I really that's at on maturity months. anything But are about how the so, But and that need thinking something some are

line of Canaccord Kyle question from next the The Genuity. comes from Mikson

again. Jeff, with you good to work

here, So that million million you that's way, typically add Maybe given XQ. a from And it's interesting the kind of like is I'm just and onetime like there million, not from rheumatology. either on doing not $X.X math implied step-up XQ, maybe like in quarter that right, if $X.X quarter is the fourth the $XX.X conferences guide because fourth $X the Exagen back quarter it lupus the some strongest looks stuff given a headwinds nice million in and seasonal like the for but dynamics there. of increase

what's sequential So, if can 'XX? driving you read-throughs early talk delta that about that like increase, into any there? like And there's

Sure.

for thanks Kyle, the So question.

through I out, on was as with follow earnings kind didn't I when Certainly, expected shaped relayed think and you. we'll quite the it be prior the call. happy I it. all to work quarter as of But math this I see of how

really small terms of We had volume, in that very kind So a expected QX levels, flat in QX of QX and quarter. the of at volume. the QX. we performance out riders where had of decline still into impact office, we growth weather-related saw I had just the above and We high-volume of saw some conveyed here end coupled but relatively 'XX nice some the very in effects quarter-over-quarter of then the with bottom

I've headwinds still or was greater Jeff the headwind to times. negative be well, facing We but adjustment. business. appropriate quarter. I event, we're be here, headwinds months. the actually but lowest gauging We're ASP we robust in prior side, terms didn't impacting There's going for of viability of to this the to collections but expect how been period is lowest metric XX-month our our this have trailing strategy. since transforming as What which This tailwinds working. a the at than we than improved XX is referenced our strategy less this had the quarter ASP, On collections the was not and had

at So visibility have through year-end and adjusted to top $XX range XX. dramatic We than QX you, XX worse no that the be our guide math which here think is on the to good into happy with performance to million, keeping continues EBITDA we line, year-over-year. then a at work that improvement

without those sense. yes, it's a as little kind not flat, it's that. kind quarter but some of by But like -- I much offline. Appreciate step-up step-up. it's sequentially But And Yes. in about which can like of bit as one-timers makes a fourth yes, the third it a would, of not just talk quarter, guess, again, way, is I of we talking was the about,

that kind of that's everything. of the a pulled to kind On bit little the forward path great and profitability in everything,

last the think gross the as could talking describe for profitability, revenue how it margin, like you the level updated. that metrics quarter, to wanted I we rate are were of those now been kind during like that have of some being run about follow

a maybe next like. $XX revenue at $XX to million of it million end level, that's by the like So lower year, sounds

year, something breakeven that you of all we I away, visibility and So half quarter of have about kind that. like as possible think but to like it's next modeling fourth far of year? is second next know

on So if would comment that could you that, just great. be

there, math in very alignment, So we much are your Kyle.

holding mid-XXs somewhere be to positive we the gross in rate year So operating a percent line in the perspective, end to from top and state. with of expenses flat. by a expect XX-plus low margin next cash That's flow run relatively our

and lot just Can the year then the launched marketing fourth full launch being next in the throughout the and first talk the it's for And Awesome. just that The factors pieces, moving a forward, the of a a about of a markers, could and going you successful the kind ask are given importance and reimbursement wrap off. years. kind lot in product P&L I right. here. the walk to of All new think markers through quarter ensure of if everything a to going the year there? of there's company launch I

if So kind just could walk through point. you at of this

this a right is. excitement is of all where of almost And now. our Yes. focus our lot Obviously,

we certainly. the bit couple be marketing our a done So the of the marketing-wise, templates, ongoing. last is have of to overlooked how market requisition, our We've throughout not efforts something quite been report refining results. This convey quarters, research

screw up strong in claims, this convey certain clinicians or way if up in relay pigeonholed which the are of the You message, you decisions. results can really mess wrong into a make this too

kind markers. a and yet end figure a with dance universally are is to product bit how of really of it's these relatively to So a up new little liked out that

have You the educate on utility. to

to So prescriptive your fairly have you interpretation. in be

that. So has a gone lot into

I multiple clinicians As said, one-on-one. gatherings, we've met with on done front. We've XX-plus that larger

clinicians with U.S. met we've to feedback now of and across entire hundreds get this the So

Our there. has great job a done team really

ongoing. efforts marketing are Additional that

is is XX,XXX when original campaign coming is Meeting this starts. the venue really and doing overseas, rheumatology. It's clinicians full international, gathering this -- here education. but on the starts U.S.-based, So but rheumatology launch, push is marketing in Thursday, it collateral, here north This where our specialty Annual largest weekend, for This we're Societal community, is for you occurs. a really marketing individual of And our our will. certainly a it the with meetings, if

is just this some approval. utilize it. given we we a let's But platform and occurs, as Although an event that event marquee the value here, to New to convey when test way there educate and get a that the be flexibility on and available York anchor thought that State won't until

So lot there and fun. to well. research going events us who be we with have done markers. the planned, it's talk in really I'll speaking where have of be we've to actual KOLs utility D.C. We've these -- on as got of the Washington, front, this plenary cool a

office, office, all clinician's left gets in So of even that our material. collateral, off. a brought everything kicks marketing this a clinician's We've that revised to patient

is website modifications having well. as some Our

look So haven't this, incredibly success. important it's given to done we're behind and it really, a that if you everything organization, half we in we can our our putting at take decade, a

the just trusted we're more we approach really educator clinician the that in and regard. I'm And from we've mention, this taking there partner exciting folks our the of really you what think that I of Kyle, sales organization consultative team. caliber you're just and makeup which very and a few field-based on the really in standpoint. I also team, same folks about the that want one to in added a our is changing that to brought be approach, but commercial pushing can So we've been vein as a team. excited to the an asked, And into

how we'll all continues to this see So transpire. of

to specific this, off. and this a Our everything see training be to us how but been will kicks has and really quarter revised for QX big

next the Osborn comes The Cantor from Ross of question from line Fitzgerald.

your would through incremental year? demand next of capacity walk you off, ahead initiatives Starting expansion

capacity so mostly it's Ross, in now shift. the on and way lab, we day full right operate shift, the through a Tuesday a Saturday

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so that same p.m. day we by conduct typically all or testing And X:XX of done

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Okay.

on the you XXXX? we contract that opportunity think update about quarter? any How in announced biopharma then should And last great. Sounds

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question Andrew comes the Brackmann Blair. The from next William line from of

ahead specific to you've groups maybe little from just talked just that gathered specific share can here. a feedback the And streamlining that sort report you workflow. new Can you test the that, you of you more? some of there? of Anything and about unpack John, a bit stick I'll to one. related talked physician about launch

the for thanks Andrew, question.

with SLE, erythematosus. So disease, is but -- systemic sensitive today AVISE available already if about we the CTD evaluation tissue lupus you most think for assay already specifically connective it, of folks

enhancing the product already we're proposition, So out we that best have there. value but

you're So clinicians, in does if have better. product the have it best markers talking to understood XXXX. out -- you IP there as utility. These That through making I've

out that -- competitive you So it there. if it, to the will, that and moat, people reinforce having used to in provides regard. continues our for furthers edge us But are best product

are the use this they're with for using patients. of ADVISE the ability platform, specifically that I more interested in arthritis their already rheumatoid to broadly, think those folks And more so some

what that's getting I So was at.

new the doors gained will our who with is essence, we there XX% cell of use other Now there's side some performance launching on or to patients room identifying clinicians And SLE of markers don't that the the And in well. believe more. we're T platform. certainly as seeing open be we're currently

and this is sensitivity, and when conventional normally, what substantial certainly have really you're to dramatic basically clinical markers diagnosis you're aids a capture. of are able able twice biomarker capturing to level it's So that and

look our we customer take T are just excited base. side. it, a initially cell existing still within at the we're But if So you on launching

me in and And practice, is, so side. that RA clinical big certainly else where on my a part of that's well, help this can the

markers report, of I opportunity this just meant that aspects new that. The what not revise by we've that's providing. report, as to just So well the other the we're taken

are pretty clinicians generally so And that. happy with

prior what changed really running index, the more likely We've took Our which how interpretation, told we've added truly it's visualization little understand various this. of version first you, AVISE makes Lupus mean. a -- what of the to a used, index it the values to admit intuitive, be an in the few test the times the

to a more we explicitly that upfront, Now more do little try clearly.

markers various -- organized to by those enhancements. of state it the read. the some We've that's easier So are disease make to

well to the requisition that's easier feedback customer voice changed and our Again, our for we received get when from it team. make do been All of of we've them.

to doing relentless just is it we're were find a make in trying I a study to that. customer, in your high-level kind of sum If to be do continuing right? their everything it's our way theme, study and So customer, life to up easier

it And that, we'll so great how this see is kind for opportunity a and of goes.

are no over John closing hand As to there comments. now questions, Aballi for the I his further John? conference

a us. for XXXX material cash believe in will exciting progress We positivity. achieving be anticipate really flow making year We

and launch developing to a so highly our a continuing Exagen, and ensuring territories a continuing at kick we much. Exagen progress the detail forward out execute take highly want I with to product team return And off XXXX. our people it's are fantastic Thanks updates. to our momentum. I shape forward to our provide results. again. teams just a year building in look successful business and thank really look focused We've we to commercial to starting and to place processes are yield to starting to on have and close our product and R&D launches we as diagnostic have been planned sales expansion We pipeline, of efficient the new have

concluded. now you conference Thank for you. The of has your Thank participation. Exagen

lines. now your may disconnect You