iSpecimen Reports Third Quarter 2023 Financial and Operating Results
- Sequential quarterly revenue grew by 75%, reaching $2.8 million in Q3 2023.
- Conversion of quotes to purchase orders increased by 122% compared to the blended quarterly average of the prior four quarters.
- Unique supplier organizations under agreement increased by 17, and unique customer organizations increased by 26%.
- iSpecimen Marketplace had 7,326 registered users, a 15% increase from last year.
- None.
Sequential Quarterly Revenue Growth of
LEXINGTON, Mass., Nov. 02, 2023 (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 three and nine month periods ended September 30, 2023.
Q3 2023 Financial Results & Recent Operational Highlights
- Revenue of
$2.8 million for the three-month period ended September 30, 2023, compared to$2.6 million for the same period in 2022. Revenue increased$1.2 million , or75% sequentially, from$1.6 million in Q2 2023; - For the third quarter 2023, iSpecimen experienced a
122% increase in the conversion of quotes to purchase orders, compared to the blended quarterly average of the prior four quarters; - As of September 30, 2023, unique supplier organizations under agreement were 234, compared to 217 as of September 30, 2022;
- As of September 30, 2023, unique customer organizations who purchased from iSpecimen was 603, up from 480, an increase of
26% , compared to September 30, 2022; - As of September 30, 2023, iSpecimen Marketplace had 7,326 registered research and supplier users, up from 6,353, or
15% , compared to September 30, 2022.
Tracy Curley, Chief Executive Officer of iSpecimen, stated, “Our third quarter results highlight the success of our efforts to improve operational efficiencies. I am extremely encouraged by the positive turnaround of our results in the third quarter compared to the second quarter, which combined with our recent cost cutting initiatives, adds to my belief that we are on track with our target to become cash flow neutral by year end.”
Curley added, “One of the most impactful initiatives we completed in the third quarter of 2023 was the rollout of our Next-Day Quote Program. This effort has been successful in expediting the biospecimen procurement process, resulting in greatly improved order fulfillment levels, as evidenced by a significant increase in conversions from quote to purchase orders during the third quarter. I am confident that iSpecimen will continue to benefit from the improvements we’ve made to drive efficiencies and increase revenue opportunities throughout our business.”
“Finally, we made strong progress advancing our Cancer Sequencing Procurement Program during the third quarter, which is a key revenue enhancing project for iSpecimen. As one of a select number of companies capable of offering large-scale, on-demand cancer sequenced specimens, we are seeing tremendous interest for these high-demand specimens and believe we can play an integral role in supporting the advancement of cancer research with this program. We are encouraged by our operational and financial progress, as well as the increasing strength of the core business and prospects of our Cancer Sequencing Program. We are assuredly much stronger and far better positioned for success than we were at the beginning of the year,” concluded Curley.
Q3 2023 iSpecimen Business Developments
- Thirteen New Biospecimen Suppliers Added to iSpecimen’s Proprietary Provider Network
- iSpecimen Introduces New Marketplace Functionality to Streamline Access to Clinical Remnant Samples for Researchers
- iSpecimen Enhances Proprietary Marketplace Platform to Streamline Biospecimen Matchmaking for Researchers and Providers
- iSpecimen Launches New Virtual Cancer Sequencing Procurement Program
- iSpecimen Announces Organizational Changes to Enhance Operational Efficiencies and Drive Profitability
- iSpecimen Expands Provider Network to Enhance Support for Women’s Health Research
- iSpecimen Launches Next-Day Quote Service for Medical Researchers and Biospecimen Providers
Subsequent Operational Highlights
Financial Results for the Three and Nine Month Periods Ended September 30, 2023
Revenue increased
For the nine-month period ended September 30, 2023, iSpecimen reported revenue of
Cost of revenue increased by
Cost of revenue for the nine-month period ended September 30, 2023, was
General and administrative expenses for the three months ended September 30, 2023, decreased by
Net loss was
Through the first nine months of 2023, the Company had a cash burn of
As of September 30, 2023, iSpecimen had approximately
For more information on our financial results and other information relating to iSpecimen for the third quarter of 2023, including the Company’s unaudited financial statements for the three-month period ended September 30, 2023, please see the Company’s Report on Form 10-Q for the Quarterly Period ended September 30, 2023, which will be filed with the Securities and Exchange Commission (“SEC”) on its Edgar database on today, November 2, 2023.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast today, November 2, 2023 at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.
| Event: | iSpecimen Third Quarter 2023 Results Conference Call |
| Date: | Thursday, November 2, 2023 |
| Time: | 8:30 a.m. Eastern Time |
| Live Call: | +1-888-886-7786 (U.S. Toll Free) or +1-416-764-8658 (International) |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1638322&tp_key=9fc5429911 |
For interested individuals unable to join the conference call, a replay will be available through November 16, 2023, 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: 68130784. 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 SEC, 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
Media Contacts
KCSA Strategic Communications
Raquel Cona / Shana Marino
iSpecimen@kcsa.com
| iSpecimen Inc. Condensed Balance Sheets | |||||||||
| September 30, 2023 | December 31, 2022 | ||||||||
| ASSETS | (Unaudited) | ||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 2,721,568 | $ | 15,308,710 | |||||
| Available-for-sale securities | 2,940,967 | — | |||||||
| Accounts receivable – unbilled | 1,425,434 | 2,327,789 | |||||||
| Accounts receivable, net of allowance for doubtful accounts of | 1,705,643 | 1,597,915 | |||||||
| Prepaid expenses and other current assets | 320,613 | 300,434 | |||||||
| Tax credit receivable | 12,332 | 140,873 | |||||||
| Total current assets | 9,126,557 | 19,675,721 | |||||||
| Property and equipment, net | 146,205 | 225,852 | |||||||
| Internally developed software, net | 6,575,811 | 4,503,787 | |||||||
| Operating lease right-of-use asset | 233,805 | 184,692 | |||||||
| Other non-current assets | 212,718 | 27,601 | |||||||
| Total assets | $ | 16,295,096 | $ | 24,617,653 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 2,280,164 | $ | 2,459,063 | |||||
| Accrued expenses | 1,027,960 | 1,531,238 | |||||||
| Operating lease current obligation | 162,054 | 158,451 | |||||||
| Deferred revenue | 46,910 | 132,335 | |||||||
| Total current liabilities | 3,517,088 | 4,281,087 | |||||||
| Operating lease long-term obligation | 72,288 | 27,396 | |||||||
| Total liabilities | 3,589,376 | 4,308,483 | |||||||
| Commitments and contingencies (See Note 8) | |||||||||
| Stockholders’ equity | |||||||||
| Common stock, | 907 | 892 | |||||||
| Additional paid-in capital | 68,996,195 | 68,573,774 | |||||||
| Treasury stock, 31,000 shares at September 30, 2023 and December 31, 2022, at cost | (172 | ) | (172 | ) | |||||
| Accumulated other comprehensive income | 641 | — | |||||||
| Accumulated deficit | (56,291,851 | ) | (48,265,324 | ) | |||||
| Total stockholders’ equity | 12,705,720 | 20,309,170 | |||||||
| Total liabilities and stockholders’ equity | $ | 16,295,096 | $ | 24,617,653 | |||||
| iSpecimen Inc. Condensed Statements of Operations and Comprehensive Loss (Unaudited) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||
| Revenue | $ | 2,777,751 | $ | 2,583,412 | $ | 7,353,090 | $ | 7,440,760 | |||||||||
| Operating expenses: | |||||||||||||||||
| Cost of revenue | 1,392,534 | 1,181,562 | 3,393,079 | 3,347,392 | |||||||||||||
| Technology | 921,580 | 752,704 | 2,599,086 | 1,915,877 | |||||||||||||
| Sales and marketing | 897,433 | 832,625 | 2,972,757 | 2,530,619 | |||||||||||||
| Supply development | 186,176 | 166,058 | 801,038 | 590,508 | |||||||||||||
| Fulfillment | 471,735 | 516,637 | 1,363,427 | 1,480,425 | |||||||||||||
| General and administrative | 1,102,373 | 2,234,885 | 4,522,028 | 5,620,393 | |||||||||||||
| Total operating expenses | 4,971,831 | 5,684,471 | 15,651,415 | 15,485,214 | |||||||||||||
| Loss from operations | (2,194,080 | ) | (3,101,059 | ) | (8,298,325 | ) | (8,044,454 | ) | |||||||||
| Other income (expense), net | |||||||||||||||||
| Interest expense | (4,465 | ) | (58,591 | ) | (11,535 | ) | (138,912 | ) | |||||||||
| Interest income | 67,362 | 60,812 | 292,506 | 87,347 | |||||||||||||
| Other income (expense), net | 20,082 | 3,148 | (9,173 | ) | 9,778 | ||||||||||||
| Total other income (expense), net | 82,979 | 5,369 | 271,798 | (41,787 | ) | ||||||||||||
| Net loss | $ | (2,111,101 | ) | $ | (3,095,690 | ) | $ | (8,026,527 | ) | $ | (8,086,241 | ) | |||||
| Other comprehensive income: | |||||||||||||||||
| Net loss | $ | (2,111,101 | ) | $ | (3,095,690 | ) | $ | (8,026,527 | ) | $ | (8,086,241 | ) | |||||
| Unrealized (loss) gain on available-for-sale securities | (47 | ) | — | 641 | — | ||||||||||||
| Total other comprehensive (loss) income | (47 | ) | — | 641 | — | ||||||||||||
| Comprehensive loss | $ | (2,111,148 | ) | $ | (3,095,690 | ) | $ | (8,025,886 | ) | $ | (8,086,241 | ) | |||||
| Net loss per share - basic and diluted | $ | (0.23 | ) | $ | (0.35 | ) | $ | (0.89 | ) | $ | (0.92 | ) | |||||
| Weighted average shares of common stock outstanding - basic and diluted | 9,065,319 | 8,878,888 | 9,029,732 | 8,822,423 | |||||||||||||
FAQ
What is the stock symbol for iSpecimen Inc.?
What was the revenue for Q3 2023?
What was the percentage increase in revenue compared to Q2 2023?
What was the increase in conversion of quotes to purchase orders?
How many unique supplier organizations were under agreement as of September 30, 2023?
What was the percentage increase in unique customer organizations compared to September 30, 2022?
How many registered users did iSpecimen Marketplace have as of September 30, 2023?
