• Revenue: $1.2 million, a 20% increase quarter-on-quarter and a 50% increase year-over-year.
• Test Volume: 2,787 tests conducted in the third quarter.
• Gross Margin per Test: Over 90%.
• Cash at Quarter End: $14.5 million as of September 30th.
• Quarterly Burn Rate: $10.4 million.
• Convertible Debt: Notice given to redeem the remainder of the outstanding note.
• Shares Outstanding: Approximately 59.3 million shares as of the latest update.
• Non-GAAP Net Loss per Share: $0.20, consistent with previous quarters.
• Operating Expenses (Non-GAAP): $11.3 million for the third quarter.
• Pro Forma Revenue from Submitted Claims: Nearly $7 million.
• Cash Increase from New Investments: Expected to increase cash by about $13.2 million net of payoff.

• Warning! GuruFocus has detected 4 Warning Signs with LUCD.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lucid Diagnostics Inc (NASDAQ:LUCD) reported a 20% increase in quarterly revenue, reaching a record $1.2 million for the third quarter.
• The company has completed a comprehensive body of clinical data, positioning it for broad coverage and reimbursement efforts.
• Lucid Diagnostics Inc (NASDAQ:LUCD) has expanded its direct contracting initiatives, focusing on securing agreements with self-insured entities to drive revenue.
• The company has made significant progress in its Medicare coverage efforts, with the final clinical validation study accepted for peer review publication.
• Lucid Diagnostics Inc (NASDAQ:LUCD) is exploring new commercial strategies, including targeting the concierge medicine sector, which is rapidly growing and offers potential for cash-pay revenue.

Negative Points

• Despite the revenue increase, the test volume for the third quarter showed an 11% sequential decline, raising concerns about consistency in growth.
• The company faces challenges with reimbursement, as a significant portion of claims are still pending or denied, impacting revenue recognition.
• Lucid Diagnostics Inc (NASDAQ:LUCD) has a high quarterly burn rate of $10.4 million, which could pressure financial resources if revenue growth does not accelerate.
• The company is reliant on securing Medicare coverage and broader commercial payer agreements, which are uncertain and could affect future financial performance.
• There is a risk associated with the company's convertible debt and financing activities, which include high-interest rates and potential dilution for shareholders.

Q & A Highlights

Q: Can you explain the sequential decline in test volume for the third quarter? A: Dennis Mcgrath, CFO, explained that July had fewer large events due to the summer period, but test volumes picked up significantly in August and September. October showed a record number of tests, indicating a strong start for the fourth quarter. Lishan Aklog, CEO, added that the fluctuation is within expected ranges, and the company is focusing on direct contracts to drive growth.

Q: How does Lucid plan to penetrate the concierge medicine market, and why is this market attractive? A: Lishan Aklog, CEO, stated that the concierge medicine sector is new for Lucid but offers a rapidly growing market for cutting-edge technologies. The company has hired a senior director with experience from Grail to drive revenue in this sector. The focus is on offering EsoGuard to patients who pay out of pocket for advanced screening tests.

Q: What is the timeline for submitting the data package for Medicare coverage, and what are the expectations? A: Lishan Aklog, CEO, mentioned that the company is poised to submit the data package to Moldex in the coming days. They are optimistic about securing Medicare coverage in the first half of next year, which will also facilitate broader commercial coverage discussions.

Q: How will Medicare coverage impact Lucid's marketing strategy and approach? A: Lishan Aklog, CEO, explained that Medicare coverage will allow Lucid to target Medicare populations more effectively and accelerate commercial payer discussions. The company expects to increase its focus on Medicare populations and leverage coverage to finalize ongoing conversations with commercial payers.

Q: What is the geographic distribution of test volumes, and are there areas where Lucid is stronger? A: Lishan Aklog, CEO, noted that Lucid has strong test volumes in California, Texas, and Florida, among other areas. The company considers state legislation mandating biomarker test coverage when planning geographic distribution.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.