Q1 Results and catalysts show promising growth trajectory
NEW HAVEN, CT, (May 17th, 2023) – Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO), will be discussing on today’s shareholders call several growth catalysts that management has been tracking. The Company believes that these catalysts could serve as positive indicators of future growth for HemeScreen revenues.
- Distributor rep engagement increased from 16% to 37%
One of the many benefits of partnering with world-class distributors is that they manage large sales forces of hundreds of sales representatives that have access to almost every target customer for our products. However, these same reps are also responsible for selling hundreds, if not thousands of other products.
The Company’s task of engaging, educating and motivating these reps is ongoing. Our goal is to reach 100% rep engagement; we expect to see continued movement towards that goal as we continue to demonstrate success by serving happy customers, which in turn helps the sales reps gain more confidence in the products and services Precipio provides.
- Qualified leads in sales funnel grew from 30 to 78 potential customers
The task of matching the customer’s needs to the product attributes requires ongoing training and focused messaging. Precipio has established a very clear set of criteria and guidelines for the distributor reps, and as these sales reps gain a stronger understanding of our product, they are able to better identify and bring into the sales funnel qualified leads.
This creates a more efficient process where the teams are spending time on accurately qualified customers that are a right fit for our products, which will increase the likelihood of winning a customer, and decrease the timeline to signing the customer.
- Pipeline revenue potential increased from $3.3M to $6.2M
The results from the increased rep engagement and a more focused process for generating qualified leads is an increased pipeline of revenue potential. Perhaps the strongest indicator of a successful sales process and future growth is a growing pipeline of qualified customers.
As the Company has demonstrated in recent press releases, the velocity of new business is accelerating. Since the beginning of the year, the Company has announced new business totaling (at full capacity) close to $4M in annualized recurring revenue. This is four times the product revenue from 2022, and represents close to 50% of the breakeven goal for 2023.
“Mobilizing a large sales force of a distributor is not an overnight task. With hundreds, and often thousands of other products in their bag, obtaining share-of-mind within the sales reps is an ongoing challenge”, said Ilan Danieli CEO. “The good news is that we continue to see increased engagement of our distributors and their sales team, which is translating into qualified leads and pipeline revenue.
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, as well as proprietary products that serve laboratories worldwide. Through its collaborations with world-class academic institutions specializing in cancer research, diagnostics and treatment, Precipio offers a new standard of diagnostic accuracy enabling the highest level of patient care. For more information, please visit www.precipiodx.com.
This press release contains “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, including, among others, statements related to the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, consumers, and the company, on our business, financial condition and results of operations, and any such forward-looking statements, whether concerning the COVID-19 pandemic or otherwise, involve risks, assumptions and uncertainties. Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management’s estimates, beliefs, assumptions and projections. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management’s expectations, or could affect the company’s ability to achieve its strategic goals, include the uncertainties relating to the impact of COVID-19 on the company’s business, operations and employees and the other factors that are described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis” in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as updated from time to time in the company’s Securities and Exchange Commission filings.
The company’s forward-looking statements in this press release are based on management’s current views, beliefs, assumptions and expectations regarding future events and speak only as of the date of this release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
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