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NEW HAVEN, Conn., May 30, 2019 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO), today provides shareholders with three of the key pathology performance metrics tracked by the company to ensure continuous growth of the business. These metrics demonstrate the positive impact of the company’s sales force expansion and ongoing improvement of its sales performance, resulting in continuous revenue growth in Q1-2019 vs Q4-2018 and Q1-2018.
The company’s revenues are comprised of two key components. The first is pathology services revenues which are core to Precipio’s business; and the second is the pharma services revenues which are generated by former Transgenomic customers from projects originating prior to the merger. Following the merger between Transgenomic and Precipio in 2017, Precipio refocused on growing pathology services, as well as developing its core technologies.
Pathology services are one of the company’s key drivers of revenue growth; conversely, pharma services revenue is project-based and therefore much more sporadic. In Q1-2019, pathology services revenues were up 12% QoQ from Q4-2018, and 149% YoY from Q1-2018. Pharma services revenues were down 6% QoQ from Q4-2018 and down 68%% YoY from Q1-2018. We believe it is critical to measure various performance metrics for pathology services which can be used for both internal and external transparency. Furthermore, as company management previously stated, these metrics will be provided to shareholders on a quarterly basis to help better understand the growth of this part of the business.
The following table presents the three key performance metrics management will be presenting on a quarterly basis. Each quarter we will provide quarterly percentages for growth compared to the prior quarter and the YoY quarter.
|Metric||Q1-2019 Growth Over:|
|Prior Q||YoY Q|
|# of recurring customers ordering monthly||+33%||+400%|
|Total number of ordering customers||+19%||+342%|
Below are explanations for each metric and the significance in understanding company growth:
Metric #1: Case volume
Case volume includes both bone marrow and peripheral blood samples and is a key driver of revenue and one of the most critical factors measured. While each case generates a different monetary value, this metric is typically a good proxy for revenue. E.g. Bone marrow samples generate 2-3x more revenue than a peripheral blood sample. Management measures case volume on a daily, weekly, and monthly basis, tracking the case volume per customer.
Metric #2: Recurring customers
Recurring revenue is the key to building a sustainable competitive advantage that demonstrates that customers remain with the company. It is also critical to continuous growth. Once a customer has agreed to try the company’s services, if they identify an advantage to our services over the incumbent lab they are using, they will switch to our lab and continue to use our services on a consistent basis. This is a key factor that indicates our ability to attract and retain customers who order our services each and every month.
Metric #3: Total ordering customers
This metric tracks the total number of customers that have ordered from Precipio as of the current quarter, as measured against Q1-2018 (YoY) and Q4-2018 (QoQ), tracking the increase in the total number of ordering customers by quarter.
“Our customers are responding very favorably to our dual-pronged strategy highlighting the value of our academic pathology expertise along with our proprietary technical expertise, which includes our IV-Cell™ cytogenetics media, Rev-CI™ (reverse cell isolation) methodology and HemeScreen™ molecular screening assays,” stated Stephen Miller, Precipio’s Chief Commercial Officer. “These technical advantages are designed to give our world class pathologists the most robust data to enable them to use their professional expertise to the fullest extent,” concluded Mr. Miller.
Precipio has built a platform designed to eradicate the problem of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions and delivering quality diagnostic information to physicians and their patients worldwide. Through its collaborations with world-class academic institutions specializing in cancer research, diagnostics and treatment such as the Yale School of Medicine and Harvard’s Dana-Farber Cancer Institute, Precipio offers a new standard of diagnostic accuracy enabling the highest level of patient care. For more information, please visit www.precipiodx.com.
Certain statements in this press release constitute “forward-looking statements,” within the meaning of federal securities laws, including statements related to ICP technology, including financial projections related thereto and potential market opportunity, plans and prospects and other statements containing the words “anticipate,” “intend,” “may,” “plan,” “predict,” “will,” “would,” “could,” “should,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the known risks, uncertainties and other factors described in the Company’s definitive proxy statement filed on April 19, 2019, the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 and on the Annual Report on Form 10-K for the year ended December 31, 2018 as well as the Company’s prior filings and from time to time in the Company’s subsequent filings with the Securities and Exchange Commission. Any change in such factors, risks and uncertainties may cause the actual results, events and performance to differ materially from those referred to in such statements. All information in this press release is as of the date of the release and the Company does not undertake any duty to update this information, including any forward-looking statements, unless required by law.
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