Sera Prognostics (SERA) 7 Aug 242024 Q2 Earnings call transcript

Good afternoon, and welcome to the Sera Prognostics Conference Call to review second quarter fiscal year 2024 results. [Operator Instructions] As a reminder, this call is being recorded for replay purposes.

I would now like to turn the call over to Peter DeNardo of CapComm Partners for a few introductory comments.

Thank you, operator. Good afternoon, everyone. Second Year Prognostics Call. Earnings Sera to Quarter XXXX Fiscal Conference Welcome XXXX. the today, the results XX, market of quarter Prognostics June At the financial Sera close released its ended for Zhenya Presenting Lindgardt, Aerts, for CFO. today the will our President CEO; and company and Austin be

the the results today, will we a question-and-answer review will which we host we session. call, released During financial after

webcast website, of If at the heard can be it quarterly earnings you've release, be recording a not had and Investors can on seraprognostics.com, a seraprognostics.com. our will chance live in call to via our review our archived This found be website. section

note our statements presented today about business, future Please plans not may forward-looking circumstances the are a trends management's reasons. and including results may other have results and on and financial that actual or some that events yet from statements adversely of variety for contain projections for information occurred, and projections These opportunities. these events based the market expectations of differ or expectations, current and materially and

refer on specifically company with that Form current Exchange quarterly contained to results Form documents its on risk projections These and factors our in and reports and differ materially from important statements. report could identify Securities actual the the those time to Commission, time reports We cause documents X-K. to company's Form files XX-K, from the other XX-Q on forward-looking its annual the the you

CEO. turn call call Zhenya? and of website. webcast this a available our Sera I reminder, a As Zhenya, Prognostics over of the be Investors now on replay will the to will President section

everyone. afternoon, and Thank you much, Peter, so good

and point test goals our for positioning We future growth are towards this volumes in year the against with strategic pleased progress our Sera in revenue. at

collection our quarter, improve through to clinical results; access for and we we've patient and patient and important we Test outcomes; and and methods; building our publication value. regulatory we've our important scalability. AVERT focused improved the overall capabilities collection cornerstones methods, help lastly, PRIME of physician our care awareness that revenue products overall education prerequisites executing We rolled will the shared the fostering and processing getting approvals out for of study out for rolling increasing coverage, innovations PreTRM improving and which be been building these shared on for of of before last As care to capabilities, of steps facilitating development steps, believe achieve key recognition should and Sera's growth adoption building all we growing guidelines, better shareholder by payer are profitability, unique

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results the findings. X Specifically, indicated key

First, stays. an for mean reduction a neonatal XX% reduction hospital hospital stay longest in in severe X-day of within the neonatal morbidity babies and length mortality,

population. in to X mothers manuscript day that which and and of neonatal publicizing those hospital weeks, at be X, The strategy age For In babies later the really morbidity reduction a born neonatal X.X remarkable one entire and mortality reported screened is increased healthier. intent-to-treat save all by NICU such and stay needed length significantly of between we reduced birth excited of weeks leave in led also average hospital and also length test-and-treat knowing hospital are number the before babies the earlier are and XX the the NICU by to to expectant XX-day were born and gestational results, of stay.

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PRETERM Trial mothers that biomarkers without by AVERT key this combination spontaneous emphasize can the improved that asymptomatic of for babies health point. factors in results birth to interventions. a risk be preterm pregnant targeted want demonstrated I typical and Keep of the in mind risk

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heighten picked up bodies community. guideline subsequently Coverage payers, like this the AVERT news. Forbes important the key as physicians, visibility patients, investment stakeholders, among the can setting our such and

to key the was news, July us for Sera being company. and our this good investor XXXX celebrated and visibility of investment shortly bringing before indices annual indices also following the XXXX AVERT firms conclusion to Russell a because month XXXX reconstitution, additional we added

the PRIME PRIME be in to been we've the ] is journal. dataset. efficacy underscored December the I'd to which like the we study reviewers dataset, with to QX, we're were into insights interim some we submission give prestigious The In for the very what we to manuscript of expected expected results of the since analyzed announced month. available for XXXX. trial But and up not importance planned initiated bring in publication the process strong be a data reporting [ the of were results full next a interim in to study and that stoppage

such, Should time As publications these in on XXXX. of manuscript be is the adoption key of a the if conferences accepted, for pregnancy maximize the we manuscripts connection in with seek Test. and the results we've PreTRM ready maternal each to spring datasets more target publication health for in that and and one results may work decided of impact or

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means PreTRM is and awareness our to strategy, In direct terms and of development This across physicians, digital and benefits outreach well-defined management. of for and we're inroads of of build physicians on payers. educating the cost-effective inclusive patients several focused marketing regarding care commercial developing programs

physician professional to leading XX% as an the States marketing platform members. a with assistants partnered campaign. test-and-treat U.S. This medical AVERT with and promote for medical and network leading than nurse XX% educational practitioners we've and of United of professionals platform digital is First, more doctors

a collection need that care We and direct have expected classify provided information which of deep targets enable education the targeted educational user and high test engagement more are results also program. deeply the direct -- with includes that XX.X% better cost-effective over can them test availability with executing and a current blood customers illustrate physician of practitioners our showing kits to been the base. campaign, This about These been utilize to rather expand Approximately whole-blood for to our have ease key AVERT outreach significant they of encouraging targeted margins final AVERT profit to platform is as members with collection time. what date multichannel that we've well-articulated to process, engaged. develop converting campaign and support. to to results XX,XXX Coupled its a healthcare program information level about of it

simple may are also The of to ordering We and social home finger e-mail availability kits, to PreTRM patients a high once birth new be broaden is the states the more campaigns phlebotomist. and rate target media that on allow where certain enable eventually preterm maternity collecting developing allowing We healthcare agreements a patients' place. initiative at without to needs go eventually a are later prick of with awareness blood to electronic will benefit these explore us of of which having and to plan kits this in to ability penetrate share U.S. underserved. certain also have

the to This physician or we're outcomes. public short to format our CNBC, anticipate support Meg in broadcast via million segments to expected pregnancy distribution with programs TV planned programs, improved XX our about these moment test-and-treat television goal Quaid the in discussed forward in featuring and over informing prime looking also commercial public with campaigns Ryan. can be the broadly all will a Sera and Viewpoint of CNN how also XX and during education Further that Empowered support cost-effective distributed documentary states ago, I homes airing time year-end, and to are We be MSNBC, just it of our networks. will stations offering Dennis similar before

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drive we're look to still We delighted publication have executing in of results forward an of our we published once to to work by prerequisites PRIME one our XXXX our company AVERT step this to additional study. year, in development a achieve of conclusion, one, change growth achieving but in lots step all trajectory cornerstone pivotal and beyond. we're have and study In our do the of revenue step, by necessary

new haven't getting making deeper data next product we to I to our update and do While our mention its a on and progress are you are testing in Time-to-Birth our product analytics products, so we'll launch. did alpha and on we're prior want call, given predictive but share great ready to

to Now it over for finance let turn a Austin me update.

everyone. Thanks, Zhenya, and good afternoon,

financial future also the achieve thinking revenue strength review results the managing our continued briefly we review our around me Let ensuring and our balance operating and quarter sheet have goals. expenses for to

XXXX quarter was to second in XXXX. Net second $XXX,XXX compared the the revenue of of quarter for $XX,XXX

on commercial quarter, commercial beyond. is could volumes in activities this revenue have in expansion prerequisites, investment test last we prior that the our consistent need to place carefully focus any level noted As while to accelerate and we with in XXXX optimized

manage In the to continued best that of we cash over first could half are our what the believe time. towards optimize we revenue investments growth XXXX,

primarily cost prerequisites of year key were careful the million in for and ago. We XXXX million expenses building our $X.X expense the $X.X to With operating development accomplishing have loss evidence $X.X down of year have second XX% the for costs. million second the Research our product the exercised portfolio quarter the from of quarter $XX.X quarter structure focused that success. million Net rightsizing a million second XX% as due we about development second from mind, management total for and and down XXXX. following on XX% the of period $XX.X million, last for of quarter expenses other up for from XXXX, were to same $X.X was

XX% the down toward and for second in general to our while expenses Selling, from were and ago, for a period managing the growth again, a quarter future. administrative year as million result the million $X.X of reduce revenue $X.X same expenses efforts

management commercial fiduciary revenue, from our also are expected that of awareness Looking beginning publications may exercise to that suitable achieving such the cash to position expenses, of PreTRM. we opportunities will protecting market continue strong study ahead, prerequisites result invest strong and while to our as improved in drive

had As million. and of for of June equivalents XX, XXXX, sale cash, the securities company approximately available cash $XX.X

in previously rate stated, $XX budgeted operating million have on our than is still basis. XXXX, we less burn As annualized and of around current cash gross that expenses an

we've cash to have do raise into not will that the our As near-term before, XXXX. believe us We need stated we capital our current length of runway. well a given last

understand also future and current markets uncertainties the We of the environment. capital

noted has filing statement this regular our where ATM cash matter S-X to an have filed agreement a eligible corporate TD as of date be an the maximize that regarding or file sales company entered housekeeping, simply It been at-the-market So today, the first and flexibility to is S-X. registration with the good should we Cowen. and into

now the open for call we questions. Operator, please can

Your from question from first William Instructions] [Operator Brackmann Andrew is Blair.

on congrats sort you've going just that can commercial publication? just to the you about But sort across this feedback AVERT thinking forward? in And groups the feedback of payers, with you stakeholder including received that's opportunities bodies, your the results just different are some guideline see. publishing exciting any that of talk First, following discussion about maybe how of

for thank you much question. so the Andrew,

and United clinical day out savings. XX,XXX remarks really my NICU NICU one shows communities. day, to benefit NICU within the to the means to prepared across the received excited the from between was strategy up highlighted as we of deploying which payer in are that realize that stakeholders widely screened excited to expected mothers months setting the I a ranges that economic are NICU the that see the day deploying positive save to test We day well data guideline payer reaction in the came States, community for makes cost and AVERT very number to to payers the of per the benefit only data and expenditure. it X as the from easy most the the that at test-and-treat by the is X, X,XXX see, of KOL, The it per significant body needed savings X day, PreTRM of be of depending which on pretty level current in that

models continue. payers next with heartening, this engaging conference has that the showcase these So data. of the basis really more are to been on and we fall quarterly to more and our economic conversations report updated more Happy the in as

just the Perfect. And as follow-up, organization then maybe my infrastructure the whole. a and on as

or the working and can needs hopeful revenue bit inflection just areas that volumes invest sort talk where to in in might a color some Any organization of of there? about the and you're you what's of beyond, specific towards provide the want ahead you to you 'XX feel desire As more maybe inflection? that little

Definitely.

account more of to up about already engaging the greater started support least course, areas we've So start collections bringing launches. more in our new start revenue There we a capacity but additional Liaisons is Last but the around at infrastructure and, data. products, to management. physicians Medical for beefing that scale. about there. specifically brought reserve we the when deeper not new bring operations MSLs, of is additional that I operating Science about key capabilities talk We as will cycle couple with we say we're our will upcoming is key

there sort all what order you And PRIME in of here. get I of just that's one control maybe the and working your sort you're data the in in the -- just if through published the terms control what's not what's Thanks then it more working in to in around sort here. your to of in timing get color Can order results data in could of for and there? the of Perfect. published review sneak on sort

my answer. [ really ] teased -- It it question. up Great

as the came analyses the process, the As we're questions reserved you engaging back-and-forth editors up it's exploratory about that with dataset. typically final are the and know, a for

when example, the the the course, make our abstract the in soon for quickly is we responding we their soon that out for respond available. was the available, data submissions reviewer continue as has get possible journals timeline, as becomes sure that meeting to So our additional to coming And We'll around spring What upcoming comments can that the data in is it planned dataset do been in will becomes as available, best that with as becomes dialogue the our data of engaging as conferences. very requested. comments. to what's as is months. and control not the control And,

is Brennan from Your Dan question from TD next Cowen.

My extent or do Time-to-Birth you one Test kind product of is be the contribute preeclampsia to expect And question like to your have just first pipeline, like it revenue? the to in what I follow-up.

]. Absolutely, William a [ To great Dan (sic) extent.

question the come we portion years or probably -- you're let's that's expect behind come share now, what say. early the the preeclampsia X If question from lion's of from still years to now to to from revenue, X from say, if PreTRM. expect of do We too Time-to-Birth product, is revenue the

we're that from do year resources Sera. and investing it's for for in PreTRM meaningful That's new help? we really Does However, products. critical contribution it, expect why

William you And per just COGS to your would in -- Yes. be, your approach And remind for PreTRM? to this workflow? extent costs ACMS would I what then my prior outlay reduce estimated from of forgot us follow-up Dan. test mention is But on the could

on you Austin, absolutely. want that? jump to in do Yes,

the Sure. take that Thanks one. question. I'll for

a to do line -- sort reductions with of in or we of our COGS. we are prices, company. -- made the what of process or where were. from from COGS you more but exact or with our We disclosing operating reduction lab at right our sample old collection current are aren't new should general are XX% our I -- sorts are from expect think Those right diagnostics XX% sort that So margins say, seeing and the least we've they where XX% in

margins. really But great expecting. XX%, had are already further we XX% of So we're sort of reductions XX% what to even maybe

now There for call at Zhenya remarks. [Operator back closing questions the further hand will time. this Instructions] Lindgardt to I no are the

revenue York receipt our forward and steps solid quarter you our you all for key attending AVERT Thank are the collection of much, New this prerequisites so and look whole-blood Publication the of operator to conditional today. to sharing operator, back call. method our to executing the approval thank conclude call on our Operator? the the of study of our State more over the to to prepare for through progress we and I'll growth, turn you forward it with now rest on year.

Thank you. conference all ended. Ladies you Thank joining. for and has now gentlemen, the

You lines. may all your disconnect