iSpecimen Inc (Nasdaq: ISPC) announced its financial and operating results for the second quarter of 2023, which ended June 30th. The healthcare specimen provider and online global marketplace, which connects scientists looking for biospecimens for medical research with its network of healthcare providers, reported solid numbers.
In the second quarter, iSpecimen aggressively focused on expanding their core business by advancing revenue enhancing opportunities such as sequencing, embedded coordinators, and rebooting the remnant line of business. Additionally, they integrated new technologies into the iSpecimen Marketplace, allowing them to further satisfy current customers’ needs and meet the growing demands of the ever-evolving life science industry.
With the goal of creating the largest global biospecimen supply chain technology platform and marketplace, iSpecimen is connecting researchers to healthcare providers in a more efficient and effective way. CEO Tracy Curley stated,”We are excited to provide solutions that our customers have been asking for and ensure success in the life science world.”
We are proud to offer the most advanced solution for biospecimen procurement that the market has seen. Despite this, our results this quarter fell short of initial expectations due to slowing industry funding for the life science research base that our customers draw from. Unfazed, we pivoted quickly and launched several new initiatives to reinvigorate order fulfillment.
By the end of the second quarter, this had proven successful and we had seen a resurgence in the backlog of purchase orders. We firmly believe that the decline in revenue at the end of the second quarter of 2023 is only a short-term issue and have taken the necessary steps to navigate this industry-wide issue. Our efforts have put us on track for stronger results for the third quarter of 2023 and the future.
Our sequencing project pilot run has been a success, and now we’re ramping up for the big reveal. Embedded project coordinators have been placed at supplier sites to accelerate processing, and the implementation of our technology
Q2 2023 Financial Results & Recent Operational Highlights
- For the first half of 2023, revenue totaled $4.6 million – with $1.63 million in the past three months alone – representing a decrease from the corresponding period of 2022, when we saw $2.34 million in the three months and $4.9 million overall.
- In the first half of 2023, iSpecimen welcomed an impressive 13 new biospecimen suppliers to their proprietary network, boosting the total supplier organizations under agreement to a remarkable 230 – a 7.5% increase compared to Q2 of the previous year.
- In Q2 of 2023, iSpecimen experienced a 22% spike in sales from unique customers, totaling 534 organizations. It’s a noteworthy increase from Q2 of 2022 and marks an exciting time for the company.
- Q2 2023 was an impressive quarter for Specimen Marketplace, with nearly 6,900 registered users – that’s a 24% increase compared to Q2 2022! Research and supplier users have embraced the platform in growing numbers, clearly demonstrating the benefits it provides.
Q2 2023 Corporate Events
- At the Aegis Virtual Conference on April 24, 2023, Tracy Curley, CEO of the organization, captivated the audience with her thought-provoking presentation. Drawing on her expertise and years of experience, Curley highlighted key points and offered insightful guidance.
- On June 1, 2023, Tracy Curley, CEO of Maxim Group and M-Vest, took part in a riveting fireside chat at the Healthcare IT Virtual Conference. Offering a candid exploration of topics ranging from the latest industry developments to momentous company milestones, the conversation provided an insightful glimpse into the future of the healthcare tech domain.
Financial Results for the Three and Six Month Periods Ended June 30, 2023
In the second quarter of 2023, total revenues amounted to approximately $1.63 million, representing a 31% decrease from the previous year’s figure of $2.34 million. Despite an overall decrease in specimen count of 2,322, or 33%, the average selling price of specimens rose by 4%, from $334 to $347. This change in specimen mix compensated for the decrease in specimen count, resulting in the decreased revenue figure.
During the six-month period ending June 30, 2023, our revenue decreased to $4.6 million from $4.9 million compared to the same period of the previous year. Although the average selling price per specimen dropped by 16%, from $407 to $343, the total specimen count rose by 12%, from 11,928 to 13,311, helping to partially offset the impact of the lower prices.
The cost of revenue decreased dramatically from $1.0 million in the second quarter of 2022 to $854,000 for the second quarter of 2023, representing a 15% decline. The fewer specimens accessioned for the current period compared to the same period in the prior year was the primary contributor to this decrease, offset by an increase of 28% in average cost per specimen. This resulted in an overall savings of an impressive $146,000.
For the six-month period ending June 30, 2023, our cost of revenue dropped by 8%, from roughly $2.2 million in 2022 to approximately $2 million in 2023. This decrease was driven by a 17% decrease in our average cost per specimen, partially offset by an increase in the number of specimens accessioned. This 12% rise year-over-year demonstrates our resilient commitment to specimen testing.
For the three months ended June 30, 2023, our general and administrative expenses increased by a notable $183,000, representing a 12% rise compared to that of the prior year. We further cemented this success in the six-month period; with a further increase of $100,000, or 3%, over the comparative period from the year before.
For the second quarter of 2023, the net loss totaled nearly $3.5 million, or $(0.39) per share – an increase of around $900,000 from the net loss in the same period a year earlier. For the first six months of 2023, meanwhile, the net loss was approximately $5.9 million or $(0.66) per share, representing a jump of almost $1 million from the first half of 2022.
iSpecimen ended the first half of 2023 with $8.2 million in cash and available-for-sale securities – a decrease from the $15.3 million it had at the end of 2022. This was largely due to an investment in technology initiatives and increased operational spending, but partially offset by higher conversions of accounts receivable to cash.
Today, iSpecimen unveiled encouraging financial results for the second quarter of 2023, as reflected in the Company’s unaudited financial statements for the three-month period ended June 30, 2023. For further details on iSpecimen’s financial performance, the public can consult the Report on Form 10-Q for the Quarterly Period ended June 30, 2023 that was filed with the Securities and Exchange Commission (“SEC”) on its Edgar database.
Imagine having the ability to search for patients and specimens needed to accelerate medical discovery, across a fast-growing partner network of premier healthcare organizations! This is now a reality with iSpecimen’s online marketplace, the perfect bridge between scientists in commercial and non-profit organizations, and healthcare providers. With the help of cloud-based technology, it’s easier than ever before to connect to the specimens and patients powering medical breakthroughs. Discover the possibilities for yourself at www.ispecimen.com.
Forward Looking Statements
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