Fulgent Genetics, Inc.

Good day and welcome to the Fulgent Genetics Third Quarter 2021 Earnings Conference Call. At this time, I would like to turn the conference over to Nicole Borgia, Investor Relations. Please go ahead, ma'am.

Great, thanks. Good afternoon and welcome to the Fulgent Genetics Third Quarter 2021 Financial Results Conference Call. On the call today are Ming Hsieh, Chief Executive Officer, Paul Kim, Chief Financial Officer, Dr. Larry Weiss, Chief Medical Officer, and Brandon Perthews, Chief Commercial Officer. The company's press release discussing its financial results is available in the investor relations section of the company's website, FulgentGenetics.com. An audio replay of this call will be available shortly after the call concludes. Please visit the investor relations section of the company's website to access the audio replay. Management's prepared remarks and answers to your questions on today's call will contain forward-looking statements. These forward-looking statements represent management's estimates based on current views and assumptions, which may prove to be incorrect. As a result, matters discussed in any forward-looking statements are subject to risks, uncertainties, and changes in circumstances that may cause actual results to differ from those described in the forward-looking statements. The company assumes no obligation to update any of the forward-looking statements it may make today to reflect actual results or changes in expectations. Listeners should not rely on any forward-looking statements as predictions of future events and should listen to management's remarks today with the understanding that actual results, including the company's actual future results, may be materially different in what is described in or implied by these forward-looking statements. Please review the more detailed discussions related to these forward-looking statements, including the discussions of some risk factors that may cause actual results to differ from those described in these forward-looking statements contained in the company's filings with the Securities and Exchange Commission, including the previously filed 10-K for the year ended December 31, 2020, which is available on the company's investor relations website. Management's prepared remarks, including discussions of earnings and earnings per share, contain financial measures not prepared in accordance with accounting principles generally accepted in the United States or GAAP. Management has presented these non-GAAP financial measures because it believes they may be useful to investors for various reasons, but they should not be viewed as a substitute for or superior to the company's financial results prepared in accordance with GAAP. Please see the company's press release discussing its financial results for the third quarter of 2021 for more information, including a description of how the company calculates non-GAAP income and income per share and a reconciliation of these financial measures to income and income per share, the most directly comparable GAAP measures. With that, I'd now like to turn the call over to Ming.

Thank you very much, Nicole. Good afternoon, and thank you for joining our call today. to discuss our third quarter 2021 results. We had a very good strong third quarter with our core business being green momentum, while our resurgence of COVID infections with the Delta variants show a meaningful uptake in our COVID testing warning in the quarter. I will cover some highlights from the third quarter before turning the call to our chief commercial officer, Brandon Perthews, to discuss the product and the go-to-market updates. And Paul Kim will discuss our financial results and our outlook in detail. Taking a look at our third quarter results, revenue total $228 million. of 124% compared to third quarter of 2020 and up 48% sequentially. We delivered approximately 2.2 million tests in a quarter. More doubled the volume of our third quarter last year. Paul will cover the details on the breakout between our core and COVID business in the quarter. But at a high level, both sections of the business outperformed the guidance we set for last quarter. Our core business grew almost 300% year-over-year to over $40 million due to strength across the key areas, including KSI, CSI, and our revenue from JV in China. We also saw a meaningful increase in revenue from our contract with the CDC due to the widespread increase we have seen in code positive rate. We continue to drive strong profitability and generate $3.93 per share in GAAP EPS and 152 million in operating cash flow. We were pleased to achieve the results this quarter that exceeds our expectations across the board. While our business has benefited from unprecedented spikes in demands for COVID testing, we have continued to see the strength in our core business as we execute our strategy to expand the footprint in core NGS business confirmed by the CSI and our operations in China. One particular highlight for us in the third quarter is the initial attraction we are seeing in the acquisition of CSI. While we're still in very early in creating synergy across our business, We're pleased that the CSI staff and small sales team is fully supporting our continued operations. And we are beginning to expand our sales team to support growth of the organization. We are also working to build our West Coast Lab, which will duplicate the enhanced CSI oncology testing capabilities. particularly in dermatology and oncology. We have also supplemented CS venue with our next generation sequencing capabilities as a part of integration of CSI. We're already seeing a meaningful increase in our test volume that is being reimbursed by insurance. We're encouraged by the expanded relationship we have for third party payers and look forward to build on this momentum as we continue to scale and expand our test menu. We'll also continue to make progress on the development and the launch of HelioLeo with our partners at Helio Health. We announced some very promising data yesterday and the team will be conducting a post-presentation on the performance of Helio Liver at the Liver Meeting 2021, which will be held virtually in upcoming week. Brandon will discuss in more details about we are very encouraged by the progress we are seeing in the development of Helio Liver and hope to achieve the commercial launch in the coming month. Another exciting recent announcement is our partnership with O-Link Proteomics. We'll be offering O-Link proteomics through our lab in the U.S. and China, which will create more streamlined multi-omic solutions for our clinical and pharma customers. And finally, we're well pleased with the activity we've seen through the operations in China. We are seeing growing sales in our MGS test menu in China, while our sequencing service is also gaining traction. We believe there is a very large opportunity to ramp up our presence in the local Chinese market when we are in the early stage of growth. I'm very pleased with the ongoing progress we are making with the expansions to our core business, while our COVID-19 testing solutions continue to drive strong cash generation from our bottom line. While the volatility around COVID-19 testing could sum unpredictability in our businesses near term, particularly as the therapeutic treatments may become available in the near future. We remain very optimistic about our post-COVID strategy and the opportunity we have built to drive sustainable growth in the years ahead. Armed with our capital and technology platform, now I turn the call over to Brendan Perthews, our Chief Commercial Officer. Brendan?