• Total Revenue: $18.2 million, a 35% increase year over year.
• Lung Diagnostic Testing Revenue: $17.2 million, 40% growth year over year.
• Test Volume: Approximately 13,900 tests, 34% growth year over year.
• BioPharma Services Revenue: $1.0 million, a 17% decrease year over year.
• Gross Margin: 77.0%, up from 76.1% in the prior year quarter.
• Operating Expense: $22.6 million, a 29% increase year over year.
• Net Loss: $10.3 million, a 6% improvement year over year.
• Adjusted EBITDA Loss: $5.6 million, compared to $5.4 million in the prior year.
• Cash and Cash Equivalents: $31.4 million at the end of the quarter.
• Revenue Guidance for 2024: Reaffirmed at $70 million to $72 million.

• Warning! GuruFocus has detected 7 Warning Signs with BDSX.

Release Date: November 01, 2024

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

Positive Points

• Biodesix Inc (NASDAQ:BDSX) reported a 35% year-over-year growth in revenue for the third quarter of 2024.
• The company achieved a gross margin of 77%, reflecting strong operational efficiency.
• Lung diagnostic test volumes grew by 34% compared to the third quarter of the previous year.
• Biodesix Inc (NASDAQ:BDSX) added new coverage policies for its Nodify tests from several insurance providers, enhancing reimbursement potential.
• The company has a robust pipeline with $11.1 million in contracted BioPharma services not yet recognized as revenue, indicating future growth potential.

Negative Points

• Revenue growth was slightly below expectations due to hurricanes in the southeast and slower sales team expansion.
• BioPharma services revenue decreased by 17% compared to the third quarter of the previous year, impacted by timing delays.
• Operating expenses increased by 29% year-over-year, driven by higher sales and marketing costs and increased depreciation expenses.
• The company reported a net loss of $10.3 million for the third quarter, although this was a 6% improvement from the previous year.
• Challenges with Medicare Advantage payments persist, with ongoing issues affecting cash flow.

Q & A Highlights

Q: Can you discuss the momentum from the CHEST conference and its impact on utilization metrics for Nodify? A: Scott Hutton, CEO: The CHEST conference was a record event for us, marking a shift from a push to a pull strategy. We saw increased interest and peer-to-peer referrals, indicating growing adoption. The leads from the conference are being followed up by our sales reps, and we expect these interactions to contribute to growth in the fourth quarter and into 2025.

Q: What are the building blocks for achieving positive adjusted EBITDA in the second half of next year? A: Scott Hutton, CEO: We aim to achieve this through increased test volumes and revenues, driven by our expanding sales force. Our gross margins are already strong, and we will continue to manage expenses prudently. The focus is on fueling our commercial engine to drive top-line growth.

Q: Are you expecting BioPharma revenue to increase sequentially in Q4, and is the full-year forecast unchanged? A: Scott Hutton, CEO: Yes, we expect sequential growth in Q4 BioPharma revenue. The full-year forecast remains unchanged, with the second half expected to align with previous guidance. The delay in sample receipt shifted some revenue from Q3 to Q4, but our pipeline remains robust.

Q: Can you quantify the impact of hurricanes on the lung diagnostics business, and will this be recaptured over time? A: Robin Cowie, CFO: The hurricanes impacted the last week and a half of Q3, particularly in the Southeast, which is a significant market for us. We anticipate that the full-year lung diagnostics revenue will remain on track, with any lost volume expected to be recaptured over time.

Q: How does the introduction of blood-based screening tests for lung cancer affect your approach to nodule management? A: Scott Hutton, CEO: Blood-based screening tests are seen as additive and can enrich the referral process. Nodify is suitable for both incidentally found and screen-detected nodules. We expect these tests to complement our offerings, helping physicians manage patient volumes more effectively.

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