iSpecimen Reports Full Year 2023 Results
- Strongest sales month in December 2023 with revenue of $1.7 million.
- 39% increase in the conversion of quotes to purchase orders in Q4 2023.
- Over 230 unique supplier organizations and 600 unique customer organizations by the end of 2023.
- Revenue for 2023 was $9.93 million, with a net loss of $11.10 million.
- Cash and cash equivalents were $5.01 million as of December 31, 2023.
- Entered into an At the Market Offering Agreement to issue and sell shares of common stock up to $1.5 million.
- Revenue decreased from $10.40 million in 2022 to $9.93 million in 2023.
- Net loss increased from $10.2 million in 2022 to $11.10 million in 2023.
- Cash and cash equivalents decreased from $15.31 million in 2022 to $5.01 million in 2023.
Insights
iSpecimen's announcement of its financial and operational results for the fiscal year ending December 31, 2023, indicates a complex scenario. Despite the company's strongest sales month in December, annual revenue saw a slight decline, attributed to an 11% decrease in specimen count. However, an increase in the average selling price per specimen and a reduction in general and administrative expenses suggest efforts to refine their cost structure and improve margins. The introduction of the Next Day Quotes program, which has led to a substantial increase in quote-to-purchase order conversion, is a strategic move to streamline operations and enhance customer engagement.
While the company's net loss widened from the previous year, the quarter-over-quarter reduction in cash burn reflects the effectiveness of the new operational efficiencies and cost-cutting measures. The At the Market Offering Agreement, allowing for the sale of common stock, indicates a proactive approach to strengthen the company's capital position. Investors should monitor the balance between cost optimization and revenue growth, as well as the company's ability to maintain service quality while scaling operations.
The strategic focus on high-demand biospecimens in oncology and neurology aligns with current research trends and the critical need for quality specimens in these fields. iSpecimen's supplier network quality over quantity approach addresses a key concern in medical research: the availability of reliable and high-quality biospecimens. By terminating certain supplier relationships, iSpecimen is prioritizing the integrity of its marketplace, which could lead to stronger partnerships and increased trust with research customers.
As the medical research community continues to demand rapid access to biospecimens, iSpecimen's Next Day Quotes initiative could significantly enhance its competitive edge. However, maintaining a high-quality supplier network while expanding the customer base will require careful management to ensure that growth does not compromise service quality. The long-term success of these initiatives will depend on their ability to meet the evolving needs of the research community without inflating costs.
The financial results show a nuanced picture of iSpecimen's performance. The reduction in net loss per share, despite a higher net loss, could suggest a potential dilution effect, possibly from the issuance of more shares. This is corroborated by the At the Market Offering Agreement, which could further dilute current shareholders but also provide necessary liquidity. The decrease in cash and cash equivalents year-over-year is concerning; however, the reduced quarterly cash burn rate in the fourth quarter shows a trend towards financial stabilization.
Investors should consider the implications of the changing specimen mix on revenue and the increased cost per specimen on margins. It is also vital to assess the sustainability of the cost-cutting measures and whether they can support long-term growth without compromising the company's core capabilities. The ability to secure additional funding will be a critical factor in iSpecimen's capacity to invest in growth opportunities and weather potential financial challenges.
LEXINGTON, Mass., March 14, 2024 (GLOBE NEWSWIRE) -- iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, today reported its financial and operating results for the twelve-month period ended December 31, 2023.
“Throughout 2023, we advanced our objective to reach profitability, focusing on right-sizing our business and implementing new operational efficiencies,” said Tracy Curley, CEO of iSpecimen. “As we strive to become cash flow positive, we are focusing our efforts on growing topline revenues through our core business segments by capitalizing on our Next Day Quotes program, where we continue to see increased traction. We have also invested in new marketing initiatives and implemented a new sales structure to help drive sales. By focusing on our core operations, iSpecimen is strongly positioned to scale our business in 2024 and beyond.”
“At the end of the third quarter of 2023, we introduced one of our most impactful initiatives to expedite the biospecimen transaction process with a program we call Next Day Quotes, which significantly reduces the amount of time from opportunity to quote and improved our quote to purchase order conversion ratio during the fourth quarter, achieving a
“In addition, to maintain our leadership position and to support the evolving needs of our research customers, we are focusing on the quality of our supplier network, even as it means ending certain supplier relationships. In doing so, we believe we can effectively and efficiently provide researchers access to today’s most highly sought after biospecimens in the areas of oncology and neurology, among others.”
“Our team has worked diligently and tirelessly over the past year to lay a solid foundation for our Company. We’ve entered 2024 in a much stronger operational position, and I am confident we can build upon the momentum we have created, further positioning the Company for improved financial results in 2024,” concluded Ms. Curley.
Financial & Operational Highlights
- Generated revenue of approximately
$1.7 million in December 2023, marking the Company’s strongest sales month to date; - For the fourth quarter of 2023, iSpecimen experienced an approximately
39% increase in the conversion of quotes to purchase orders, compared to the average from all prior quarters in 2023; - As of December 31, 2023, we had over 230 unique supplier organizations under contract, as we focused on building the quality of our supplier network over the quantity;
- As of December 31, 2023, we had over 600 unique customer organizations who have purchased from iSpecimen, an increase of over 87 from 513 at the end of 2022; and
- iSpecimen Marketplace had nearly 7,428 registered research and supplier users as of December 31, 2023, up approximately
11% from 6,703 as of December 31, 2022.
Recent Corporate Updates
- iSpecimen Strengthens Global Oncology Biospecimen Offering
- iSpecimen Expands Proprietary Provider Network to Help Advance Infectious Disease Research
- iSpecimen Launches Next-Day Quote Service for Medical Researchers and Biospecimen Providers
Financial Results for Fiscal Year 2023
For the year ended December 31, 2023, revenue was approximately
For the year ended December 31, 2023, cost of revenue increased by approximately
For the year ended December 31, 2023, general and administrative expenses decreased approximately
For the year ended December 31, 2023, the net loss was approximately
As of December 31, 2023, cash and cash equivalents were approximately
On March 5, 2024 we entered into an At the Market Offering Agreement whereby we may issue and sell shares of our common stock from time to time with an aggregate offering price of up to
Conference Call and Webcast Information
The Company will host a conference call and audio webcast on Thursday, March 14, 2024 at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.
| Event: | iSpecimen Year End 2023 Results Conference Call |
| Date: | Thursday, March 14, 2024 |
| Time: | 8:30 a.m. Eastern Time |
| Dial in: | 1-888-886-7786 (U.S. Toll Free) or 1-416-764-8658 (International) |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1655659&tp_key=8493197d5b |
For interested individuals unable to join the conference call, a replay will be available through March 28, 2024, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 37478374. An archived version of the webcast will also be available on iSpecimen’s Investor Relations site: https://investors.ispecimen.com/presentations/.
About iSpecimen
iSpecimen (Nasdaq: ISPC) offers an online marketplace for human biospecimens, connecting scientists in commercial and non-profit organizations with healthcare providers that have access to patients and specimens needed for medical discovery. Proprietary, cloud-based technology enables scientists to intuitively search for specimens and patients across a federated partner network of hospitals, labs, biobanks, blood centers and other healthcare organizations. For more information, please visit www.ispecimen.com.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbs such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.
Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the risk factors contained in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company's forward-looking statements occurs, the Company's business, financial condition and operating results may vary materially from those expressed in the Company's forward-looking statements.
Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
Investor Contact
KCSA Strategic Communications
Phil Carlson / Erika Kay
iSpecimen@kcsa.com
| iSpecimen Inc. | ||||||||
| Balance Sheets | ||||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,343,666 | $ | 15,308,710 | ||||
| Available-for-sale securities | 2,661,932 | — | ||||||
| Accounts receivable – unbilled | 2,212,538 | 2,327,789 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of | 728,388 | 1,597,915 | ||||||
| Prepaid expenses and other current assets | 292,079 | 300,434 | ||||||
| Tax credit receivable | — | 140,873 | ||||||
| Total current assets | 8,238,603 | 19,675,721 | ||||||
| Property and equipment, net | 127,787 | 225,852 | ||||||
| Internally developed software, net | 6,323,034 | 4,503,787 | ||||||
| Other intangible assets, net | 908,255 | — | ||||||
| Operating lease right-of-use asset | 193,857 | 184,692 | ||||||
| Security deposits | 27,601 | 27,601 | ||||||
| Total assets | $ | 15,819,137 | $ | 24,617,653 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,925,438 | $ | 2,459,063 | ||||
| Accrued expenses | 1,540,607 | 1,531,238 | ||||||
| Operating lease current obligation | 167,114 | 158,451 | ||||||
| Deferred revenue | 415,771 | 132,335 | ||||||
| Total current liabilities | 6,048,930 | 4,281,087 | ||||||
| Operating lease long-term obligation | 29,130 | 27,396 | ||||||
| Total liabilities | 6,078,060 | 4,308,483 | ||||||
| Commitments and contingencies (See Note 9) | ||||||||
| Stockholders’ equity | ||||||||
| Common stock, 9,114,371 issued, and 9,083,371 outstanding at December 31, 2023 and 8,956,808 issued and 8,925,808 outstanding at December 31, 2022 | 908 | 892 | ||||||
| Additional paid-in capital | 69,104,313 | 68,573,774 | ||||||
| Treasury stock, 31,000 shares at December 31, 2023 and 2022, at cost | (172 | ) | (172 | ) | ||||
| Accumulated other comprehensive income | 840 | — | ||||||
| Accumulated deficit | (59,364,812 | ) | (48,265,324 | ) | ||||
| Total stockholders’ equity | 9,741,077 | 20,309,170 | ||||||
| Total liabilities and stockholders’ equity | $ | 15,819,137 | $ | 24,617,653 | ||||
| iSpecimen Inc. | ||||||||
| Statements of Operations and Comprehensive Loss | ||||||||
| Years Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Revenue | $ | 9,928,184 | $ | 10,402,303 | ||||
| Operating expenses: | ||||||||
| Cost of revenue | 4,820,268 | 4,756,965 | ||||||
| Technology | 3,566,917 | 2,656,287 | ||||||
| Sales and marketing | 3,955,974 | 3,445,344 | ||||||
| Supply development | 1,030,403 | 801,125 | ||||||
| Fulfillment | 1,788,879 | 1,995,937 | ||||||
| General and administrative | 5,935,092 | 6,932,727 | ||||||
| Total operating expenses | 21,097,533 | 20,588,385 | ||||||
| Loss from operations | (11,169,349 | ) | (10,186,082 | ) | ||||
| Other income (expense), net | ||||||||
| Interest expense | (16,001 | ) | (238,963 | ) | ||||
| Interest income | 339,750 | 169,345 | ||||||
| Interest and penalties on sales tax liability | (214,784 | ) | — | |||||
| Other income (expense), net | (39,104 | ) | 9,778 | |||||
| Total other income (expense), net | 69,861 | (59,840 | ) | |||||
| Net loss | $ | (11,099,488 | ) | $ | (10,245,922 | ) | ||
| Other comprehensive income: | ||||||||
| Net loss | $ | (11,099,488 | ) | $ | (10,245,922 | ) | ||
| Unrealized gain on available-for-sale securities | 840 | — | ||||||
| Total other comprehensive income | 840 | — | ||||||
| Comprehensive loss | $ | (11,098,648 | ) | $ | (10,245,922 | ) | ||
| Net loss per share - basic and diluted | $ | (1.23 | ) | $ | (1.16 | ) | ||
| Weighted average shares of common stock outstanding - basic and diluted | 9,041,341 | 8,844,307 | ||||||
FAQ
What was iSpecimen's revenue for the year ended December 31, 2023?
How many unique supplier organizations did iSpecimen have under contract as of December 31, 2023?
What was the net loss for iSpecimen for the year ended December 31, 2023?
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What agreement did iSpecimen enter into on March 5, 2024?
