In This Article:
Release Date: March 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Precipio Inc (NASDAQ:PRPO) achieved its goal of reaching break-even by the end of 2024, with positive adjusted EBITDA and positive cash flow.
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The company reported a revenue growth of nearly 26% in Q4 2024 compared to the previous year, and a full-year growth of close to 22%.
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The pathology division exceeded its break-even point for the second consecutive quarter, contributing positively to the company's cash flow.
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Precipio Inc (NASDAQ:PRPO) is focusing on enhancing its distribution strategy, which is expected to accelerate growth through partnerships.
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The return of Steve Miller as Chief Commercial Officer is anticipated to drive growth in the product division, leveraging his extensive experience in the diagnostic field.
Negative Points
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The product division's Q4 revenues remained flat compared to Q3, indicating challenges in converting customer onboarding into revenue.
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Regulatory changes have caused delays in revenue realization, as new requirements necessitate modifications to products and processes.
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Equipment and lab process challenges have led to delays in customer onboarding, impacting revenue timelines.
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Personnel challenges, such as staff turnover in customer labs, have resulted in significant revenue gaps.
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The company acknowledges the need to better adapt to challenges and increase its customer base to achieve stable growth and provide reliable financial guidance.
Q & A Highlights
Q: Can you provide an update on Precipio's financial performance and goals for 2024? A: Elon Danielli, CEO, reported that Precipio achieved its goal of reaching break-even by the end of 2024, with positive adjusted EBITDA and cash flow in Q4. The company is on track to become profitable, with current cash reserves and a growth pipeline supporting this trajectory.
Q: How did the pathology division perform in 2024, and what are the targets for 2025? A: The pathology division exceeded its break-even point for the second consecutive quarter, with revenues surpassing $1.3 million per month. The target for 2025 is to grow this division organically to reach a $25 million run rate by year-end, contributing positively to cash flow and supporting future product development.
Q: What challenges has the product division faced, and how is Precipio addressing them? A: The product division faced regulatory, equipment, and personnel challenges, causing delays in revenue generation. Precipio is addressing these by anticipating regulatory changes, improving customer onboarding processes, and enhancing lab workflows to ensure consistent revenue streams.