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spk_0: the day and welcome to the i can eat fourth quarter and full year two thousand twenty two earnings call at this time all participants and placed on a listen only mode and we will open the floor for your questions and comments after the presentation it is now my pleasure to turn floor over to your host leno faber
spk_1: ma'am the flu shores
spk_2: thank you operator afternoon every one thank you for joining us today for i catch fourth quarter and four year twenty twenty two earnings call on the call today we have seen a brown our president and chief executive officer before turning the call over to dana i would like to remind everyone that we will be making forward looking statements on the call today
spk_3: these forward looking statements are based on i catch current expectations in are subject to uncertainty and changes in circumstances after a result may differ materially from these expectations for a list of factors that could cause actual results to differ please see today's press release in our filings with the us securities and exchange commission i can't undertakes no obligation to revive or update any statement to reflect events or circumstances after the date of this conference call i would also know that management will refer to sir and non gap financial measures management believe that these measures provide meaningful information for investors and reflected the way they view the operating performance of the company you can find a reconciliation of our gap to non gap measure at the end of the earnings release with that i'll turn the pull over to dana thank you and or and good afternoon everyone for those of you i haven't had the opportunity to meet and went to introduce myself my name is dana brown and per hour march thirteenth leadership transition announcement on the new president and ceo for i can i'd been a member of i had board of directors for the past year and stepped into the chair
spk_4: in role in january i want to take a few moments to tell you about my background and why i'm uniquely qualified to lead i cared at this point in time
spk_3: i spent the first twenty five years and my career in the technology industry as a founding member of multiple successful venture including cofounder and keep marketing and business development officer for met assault software medicine with essentially your p for telecom media and internet providers
spk_4: during my tenure we became a category killer consistently winning the of against many of the larger players of the time including looted and qalqiliya at the time we had unique business model choosing to focus our efforts on building disruptive innovative technology while partnering with entities like you why for implementation services as who at one point in time had a fifty million dollar backlog for our projects
spk_3: i was responsible for business development strategy with rigor we continuously evaluated by build a partner options as ways to grow our footprint across technology markets and geography
spk_4: we implemented and aggressive acquisition strategy enabling us to accelerate getting to market faster than our competition
spk_3: we originally developed the platform for the mainframe environment now i'm really dating myself and subsequently ported to client server and later redesigned it to be fair may cofounder and i kick the company public and it was later acquired by oracle as it was and still is one of the largest enterprise system ever built on the orchestra eat after metaphor of i became ceo of it's some networks which with a network performance management software company credited with pioneering route analytics technology and it was acquired by cisco in it's early stages i went on to be on the turnaround team of other tech ventures in the content delivery and mobile space until
spk_4: twelve years ago when i made a shift from the tech sector to the nonprofit sector i joined united way worldwide as it's first keith digital officer and architected a code development partnership between united way a hundred and forty year old five billion dollar global non profit and fell for a twenty four year old eight you're running world's most innovative company and unlikely partnership can build a new cloud called philanthropy cloud the platform that empowers corporations to put their values into action it extends each company's breach by engaging it's customers and employees in philanthropic and
spk_3: evers and handsome grand reputation awareness attracting and retaining top talent and delivering greater impact most recently i served as a senior vice president to strategy and operations officer for susan g come in the world leading breast cancer organization comment has invested more than three point three billion and groundbreaking breast cancer research community health outreach advocacy and program in more than sixty countries a common among leading other strategic initiatives and our turn around and transformation i lead our efforts to create my koeman hell the first patient care team and researcher engagement platform designed to guide patients through the end to breast cancer journey with access to experts read sources and aid as well as share for cures a first effort patient powered breast cancer research registry storing information ranging from determinants of health risk profile health data including documentation of care delivery such as diagnoses and intervention
spk_4: all gathered from digital and non digital yeah maher he hr data as well as did not make data to summarize in not can be trite but i've been there done that i've built companies teams and products from the ground up i leveraged partners to create scale become the category leader and a mask and ecosystem that dry having a sustainable i've led product strategy through seismic shifts and underlying platforms and licensing model and have been responsible for changing business models ways of doing business be challenging turnarounds implementing sizable cost reduction measures while simultaneously diversifying revenue streams and now and honor to be leading this incredible company working alongside our talented team or board our clients and partners and committed have holding our vision to be the world's most pervasive and personalized suite of i a i cancer detection solutions changing lied for patients around the world and creating value for our shareholders and stakeholders and uniquely prepared to leverage my experience and expertise position this company for future growth so know about my background let's dive into our business and financial update
spk_3: are both a therapy and detection lines of business have great market opportunity and potential we believe our core competencies and focus need to be solely on detection and our strategy around a i therefore we recently announced the company is exploring strategic options for disaster to business we remain confident that off technology has the potential to positively impact allies the cancer patients and providers who care for them on a global scale as we move to this time of transition we wanted for strategic options that could accelerate the accessibility of the technology and provide more and
spk_4: synergies to grow we've hired to banks to help us explore these options retaining these two banks was driven by inbound relationship based to tick increase as we explore these opportunities we reduced operational costs and overhead for that line of business we have streamlined operations to focus on what's essential or to servicing as supporting new sales as well as our existing install base resulting in an annual light decrease in expenses of one point three million
spk_3: moving through the detector side of our business in the battle against cancer we believe early detection and diagnosis is a key part in transforming the patient journey and quality of care breast cancer is the most common cancer in women worldwide and the second leading cause of cancer death among women in the us
spk_4: but i can't early detection technology we have the ability to detect cancer early giving individuals the opportunity for more positive outcomes and more lives saved as mentioned on previous calls and important change for a company driven by customers on the leading edge of the adoption curve is a transition of our bid miss from a perpetual life and on premise technology model to a more sustainable subscription based license and sas or cloud based technology platform if business model and technology platform change is important as over time it is sure steady recurring revenue stream that can grow more quickly and enable us to invest more in our products and services can meet our customers' needs now and in the future combining the subscription method of payment with the sas method of deployment offers an accelerated way for customers to adopt deploy and scale or technologies which significantly lower upfront costs sas implementations enable customers to leverage a new functionality more easily and quickly without costly capital outlay is associated with traditional model
spk_3: while demand continued to be promising for this model were still in the early stages of the adoption curve and the percentage of our overall revenue from subscription licenses remain small you'll hear more from us on this metric as it becomes a more significant percentage of our overall revenue as noted in our earnings call announcement we have implemented further cost reduction measures to continue to a line and streamline our cost base we're focused on creating a broad and long runway needed to change the business while we run the business it's a reset and recalibrate year for us and we're already make important changes we recently made several changes to the operation which have reduced analyzed expenses by four point three to four point six million dollars an annualized cash burn has been reduced four point nine to five point two million as a result together with exploring strategic options for the therapy bit zenith were now projecting to be cash flow positive and returned to profitability before the end of twenty twenty four we believe these changes give us the runway needed to successfully navigate or business model transition without needing to raise additional capital
spk_4: i also want to be clear that transitioning our business model isn't just about moving to assess subscription platform where you're going through a rigorous and thoughtful process to evaluate a range of growth opportunities such as going director pieces working with our industry clinical partners with offerings like a new
spk_3: new tp t powered digital care platform access to elective risk assessments and other personalized predictive scoring solutions
spk_4: we're looking at pursuing payer in reimbursements tragedies to get risk assessments in a i read screenings cupboard particularly for women with can spread as early detection can save thousands of dollars in medical expenses incurred with late stage diagnoses intercourse is of treatment we're partnering with large employers with women's health initiative to provide a i powered mobile screening services on campus
spk_3: we're looking at supporting patient advocacy organizations on the front lines of tackling spirit parodies and utilizing aid programs to help all women get access to the breast health care they need and we're looking at expanding our cloud be a i platform to address other cancers in modalities
spk_4: we have strong existing partnerships that can help with mitigate the risk of expanding into these new initiative partnership like our strategic development and commercialization agreement with google health to integrate it's artificial intelligence technology into our breast a ice sweet
spk_3: as previously discuss this is the first commercial partnership google health has entered into can't reduce it's breast imaging ai into clinical practice and in this position to improve our market leading breast cancer a i solutions for mammography as well as expand access to our technology to millions of women and providers world why
spk_4: like our partnership with the leafs mammography the largest independent provider a breast screening and diagnostic services in the us foliage is the first in the country to offer profound a i risk with the new director patient program called malmo plush additionally last quarter we announced a new development and commercial collaboration agreement with solace focused on using mammography to define cardiovascular risk a new application at could identify i'd millions of women at risk for heart disease using data obtained from their mammogram with heart disease being the number one killer among women in us this collaboration not only offers the potential to address as significant unmet need inpatient care but also to penetrate a sizable new market given bed approximately forty million women are screened in the us annually and lastly i would be remiss if i didn't into the ability to further leverage our existing partnerships with cat medical technology companies like eat and siemens and of course are developing relationship with bread partners
spk_3: in summary from a business standpoint i'm focused on creating runway preserving cash and building a defensible and competitive long term strategy that diversify their revenue stream and smooth out our customer concentration we expect to be able to share the metrics and milestones of our strategy in the third quarter of this year i'll now summarize our financial results for the fourth quarter and the year ended december thirty first twenty twenty two
spk_4: revenue for the year ended december thirty first twenty twenty two or twenty seven point nine million a decrease of five point seven million or seventeen percent over thirty three point six million in fiscal twenty twenty one the detection segment revenue decrease two point three million to nineteen point seven million with a three point two million reduction in product revenue offset by a point eight million in in service revenue the therapy segment revenue decrease three point five million or thirty percent to eight point one million for for four year twenty twenty two the decrease in therapy revenues with primarily due to a two point eight million decrease in product him total revenue for fourth quarter of twenty twenty two with six point five million down seventy percent from seven point eight million in the fourth quarter twenty twenty one the detection segment revenue decreased point nine million to approximately four point six million with a one point two million reduction and product revenue offset by a point three million increase service revenue the therapy segment revenue decreased point four million or seventeen percent to one point nine million from the fourth quarter twenty twenty one the decrease in therapy revenues were primarily due to a point four million decrease in product revenue moving on to gross profit on a percentage basis growth profit with seventy one percent for the fourth quarter twenty twenty two compared to seventy three percent for the fourth quarter twenty twenty one growth profit for the fourth quarter or twenty twenty two with four point six million as compared to five point seven million in the fourth quarter twenty twenty one reflective of the reduction in revenue total operating expenses for the fourth quarter of twenty twenty two were seven point nine six million a one point nine million dollar decrease or nineteen percent from nine point eight five million in the fourth quarter of twenty twenty one the decrease with related to cost cutting measures implemented and twenty twenty two the operating loss decreased point eight million to three point three million in a quarter ended december thirty first twenty twenty two from the same period and twenty twenty one this decrease in operating loss with predominately due to one point nine million decrease in operating expenses as offset by decline of gross margin from reduced
spk_3: revenue gap net loss for the fourth quarter of twenty twenty two with three point one million or point one two per diluted share compared with a gap net loss of four point one million or point one seven per diluted share for the fourth quarter twenty twenty one this year be your decrease
spk_4: in the gap loss per share it primarily due to the opry expense production
spk_3: looking ahead following a four point three to four point six million have reduced annualised expenses as i just mentioned we're now projecting to return to profitability for the end of twenty twenty four nine gap adjusted ebitda for the fourth quarter or twenty twenty two of the lots of two point eight million non gap adjusted net loss for the fourth quarter or twenty twenty two with three million or point one or two cents per share
spk_4: moving to the balance sheet as of december thirty first twenty twenty two the company had cash and cash equivalents of twenty one point three million compared to cash and cash equivalents of thirty four point three million a december thirty first twenty twenty one cash and cash equivalents from operating activities use during the fourth quarter of twenty twenty two where three point one million
spk_0: this concludes the financial highlights of our presentation and i would now like to turn the call back over to the operator to lead us through the queue in a certainly at this time will be conducting a question and answer session if you have any questions or comments please press store one on your phone at this time we do us a while posing your question please pick up your have said if you're listening on speakerphone to provide optimum sound quality once again of you have any questions or comments please press stole one on your phone
spk_5: your first question is coming from pair arslan from craig home capital group your line is live
spk_6: makes so good after the island or
spk_5: i want to start out with
spk_7: the restructuring and else with the last week and i apologize in advance as might be a little bit of along with question
spk_5: i'm so wanted to give him a couple pieces obviously
spk_7: in the uk and and you're prepared remarks david it's very very clear that the couple years
spk_8: i'm focusing it's efforts around the cancer detection side of the business
spk_7: but reduction in force was also said to
spk_8: come predominately from the detection sort of the business on i'm curious as to
spk_7: i guess the identification of of we're within detection you saw that the most logical places to cut out of because it doesn't sound like you're pulling back on go to market it doesn't sound like you're pulling back on
spk_8: collect development sarcasm
spk_7: curious where you saw
spk_3: flacco a better word bloat or or or the opportunity to to take costs out of that are the business since it is the book is going forward yeah so i'm for small pair nice to hear from you i'm and things for the question so as we looked across the organization on the detection side and as you mention the mean it's already was already a fairly lead organization but we still had some silence so one of the things that we've done is create more cross functional team
spk_4: i'm a little bit of some hybrid roles so particularly we think about the skill sets and expertise required for example prevails and post fails where you're working with customers to envision had incorporate the technology in their environment how to maximize it right for best practice those are examples of where we could get some a car the scale writer synergies by combining teams and though that's an example of where you know we were able to take out you know do some widowed production and other areas just looking across the organization you know at skill sets and expertise that's best points or for where we wanna go particularly when we look at things that are cloud based
spk_9: so that also enabled us to get and them efficiencies by combining some roles and hundred it's really streamlining what folks are focused on
spk_7: okay
spk_8: that makes sense
spk_5: maybe maybe a follow up to that point you in the press release
spk_4: talked about the notion of a partner lead model in this has been something who has his come up in in recent quarters how does that affect your go to market how much of your sales are melting effort becomes geared toward securing partners more so than actually infield type sales right so we have introduced a new leader right we caught the new senior vice president for commercial and joined the organization the in early january and as a part of that move right we've also created some new roads focus exclusively on partnership so kind of creating an overlay for the hotels organization
spk_8: individuals whose primary responsibility eating everyday a is working with the partners motivating men making sure that are direct sales force is appropriately leveraging night the part you resources that we have in the field though we're feeling good about that because now we've been able to traits and focus and some dedicated both on partnership
spk_5: i mean when we look at you know that the idea right the that kind of enumerated as areas that were exploring to diversify revenue each and every one of them will have a strong partnership component so you know i think that you're going to be hearing more and more for life as we go forward okay to make that make sense look forward to that
spk_8: maybe the other side of the restructuring and again it's not the focus of of the company but are going forward it's up to the company but there's some
spk_7: a little bit a discussion with a on our side i think that that is more straightforward with that restructuring there
spk_5: as it pertains to the strategic alternatives
spk_10: i don't know how much you necessarily can say but but
spk_7: can you characterize any of the earlier really discussions there are do you have a desired timeline to sort of come to
spk_11: engine on that
spk_8: does the furlough actually help or potential sale by streamline in the organization and last but not least on that apologies for the for per question
spk_4: but part how do you think about valuation or how should we think about valuation of that business and yet potentially looked solid okay so i think i missed one of the for i got you know how the for low impact wait until i'm timeline valuation a bigger may miss a great first sweat and joe just that the thought
spk_3: around here characterizing early discussions i guess okay okay great
spk_4: so i'll answer the timeline and for a low and kind of characterize me the discussion and then dancer share in and cfl is unwise there of going to pass the ball the him feel good to hear different voice for a little bit and he can talk about that were they give that valuation but i'm though the furlough staff year we focus on ensuring that we can head you know service and support existing customers in any new customers so you anything we can do to continue to help the business actually be treated right and a strategic an option is what we were focused on ah i'm you know that the the discussions are interesting because i would say it's a full spectrum i'm from you know potential options that are really strategic global and scale to those that when i really do a most kind of we start a business am around the technology and it's ip so if the bright factor which very interesting might be
spk_12: get also thinks speaks to get you know the breadth right of the solutions that were created in his off business as far as timeline you know as soon as possible you do retargeting a quarter to get for far enough along through these conversations that one you know we know the right next steps that the staff who work for
spk_13: reload as well as you know we're able to ensure that services and support for customers continued to not much to be so i'm a man i'll pass it over to dan if you want to talk about the evaluation process and just our models for it yeah thank you i think evaluation is going to the band of course on on on who we would argue do the buyer or the a strategic by are they more of a financial buyer i think the the feeling the feeling is that what we have with soft as a pretty strong brand is it is worth something different to a the some bars than others it's it's a it's in a strong product who's got from
spk_14: a great name within you know the term circles
spk_13: the and other modalities so i think gun the valuations is gonna depend on who the virus and other going to use it as data said it's it's sort of something that we're looking at pretty pretty actively dye mine is is it up
spk_8: the furlough could be ninety days is ninety days is sort of that the feeling of that it's you know sort of the pump the brakes little bit in a save some money in
spk_0: run and run a process that sufficient and them you know commit commands value that's that's to measure commensurate with brand
spk_15: okay that all sounds good or some logical i will lot of with for thanks thanks thank you like litter audience know that we also have banshee interim ceo on the line for questions your next question is coming from read tybalt from beatty i g your line is live hi dana hi dan thank you for taking the questions assassin and
spk_4: i wanted to pick up on were pair left off on the soft business and and just see if i can drill a little bit more and on your outlook near term for that business i certainly understand that the service revenue off the whole that given you know installed base and that being a recurring revenue model but i'm curious if we should expect product revenue just sort of be flat somewhere it wasn't twenty twenty two how to think about that i'm certainly a little bit concerned that lives some of the furloughs a hen certainly the announced the possibility of a sale that some that the in the workforce may not be quite of motivated so how would you have a thinking about that near term therapy revenue from the product side oh hi mary the stain as so our own answer a few comments and i'm gonna turn it over could then i'm the first thing i want to say i've only been a bit on board a shot while but that soft team is amazingly committed her
spk_13: an extremely passionate about the product that research work that they're doing you know we just got some additional data studies right bed again you prove just the distinctiveness and competitive seven so i wouldn't underestimate the power of a small but mighty t right it's continue there to manage that business and you know as you mentioned that business has a high percentage of recurring revenue you know somewhere sixty sixty five percent so you're we were able to take that into account with a reduction to make sure ah i'm weird are able to fill written support right that customers that we have am dan i'm going to turn it over to you if there's some additional comments you made for married question yeah i like yeah i figure you right to point out the yeah persistency of the of of the service revenue that of that that am that the known and you know i think that when we thought of the the furloughed decisions i think that was a big factor in determining you know who would good for a load into who wouldn't get furloughed i think right now there's a there's a workforce is there that that cover manufacturing field service sort of in assembling source x rays and you know philly philly orders for our guides and you know them to the disposables and the you know one on the bright side i think you know back to his the discussion just earlier i think be in of the go to market approach with with soft is is least partially done through our partners and so in the there there is you know like leg was at there is a bit of of of you know sort of of of allow and because of the furlough but i think the the controllers are so given controllers and we're that we have an order a supply chain that delivering get old enough to have them available to be purchased and
spk_15: in a particular piano in the outside the us market this simpson strong partners who are in a position to or to you know to make order that i think yeah i think it's a good question on the park said at they give us a right do you know how i'd the persistency the service revenue
spk_4: sure okay that's helpful thank you for that i guess you know to sort of highlight one other thing that you mentioned today that's new to us as is the profit that profitability timelines very encouraging to hear what are you assuming and that are you assuming that you know there is a strategic option found for soft
spk_13: you know are you assuming some sort of growth on the top line arm and a part of that question i guess if you could refresher on what margins look like for the detection business that would help us as liam as the plot out the you know getting to profitability and in in late twenty four thank you for the questions so he dan of of flip it on your tree want to go first the may maybe tackle some other metrics or in the and i can talk to her from of the underlying just assumptions on the business model site docker the mirror drinker you're bureau darling you know the of the sale and with them i mean to you know
spk_16: if a sale of the sale in the generates cash it in a sale it's gonna obviously albert
spk_13: or process for determining how much runway we have to get get the detection business up and running or or keep running into the you follow through on over the that they started with so you know i think from i'm from a margin standpoint i think in know the detection margins are up i guess my enough damage like around eighty percent on in you know i think deserve margins are more you know thirty or forty percent
spk_17: you know for you know obviously for rub
spk_4: my ex bet you know it's was prime were like eighty five and forty would be the way to think of it and yes so i think we're addicted that the hard the hard products if you will that are at heads off to the know ira or lower margin than that the service the the software were selling it did the detection said had been and just have it in the substance
spk_15: yeah i guess a hill the model we have right now is in very conservative so it is actually not dependent on
spk_0: when you're receiving an influx of cash for example some is op sail that would be good news right in we would actually triggered a bit as you know and investment reserve in a seemingly create some really compelling are allied models from some of these areas as i mention that we can diversify into some of revenue standpoint in we going to be able to deploy
spk_18: yea right that cash to bring does additional revenue streams are mine so i'm so this is you know right now like is if we made the catch the cost reductions deep enough that we could be peter self sustaining right to get to this point right as being cash flow positive and being popular as we exit next year in the most like conservative scenarios and been we've got work ahead of us over the course of the next few months can build out the business case options
spk_19: alternatives and and see which ones we wanna move when it i've been key right and take on sale and then we would be in a position at that point in time they get been talking about you know market opportunity you would it could mean to actually grow the business hopefully them faster
spk_18: okay understood thank you for taking the question get welcome thank you once again every one if you have any questions or comments please press store than one on your phone your next question is coming from yale jin from laid loan company your line live oh good up in the and thanks for taking the clutches and the congress dana good because elite eight of the as company right now ah my for my first question is that it's it's a rough estimate that of this year
spk_4: the detect a deer therapy business take about thirty percent of the total revenue and to understand this year did it the incantation for the detection so the revenues the let the lower far but no the love this seems to be read the bowl lead lodge home again to the need to be filled and add more
spk_3: from the detection to presumably to reach the probability go by the end of the twenty twenty four so was there any specific or potential
spk_4: ff or particular area you feel that the cook so the fall
spk_13: girl that revenue of much quicker and the or that the eating may be
spk_20: so i'm of time in with one area in particular that i think we're just beginning care of said maximize ray or explore and in dan i can pass it over to you i think the greatest near term opportunity we have in is based upon the great work that got accomplished and twenty twenty two
spk_13: huge is really leveraging some of our new channel partnership so am i believe in the last earnings call right that partnership section development with introduce with bad partners so that's an exciting partnership on the beginning to pick up speed in fact who am i personally probably spend an hour so you today with the team working through i'm details in terms of the architecture the scaling ah helping right partners think through how they're going to ramp up their business around it showed that an exciting area of growth that was to come online here and twenty twenty three and then really began care to take hold in twenty twenty four so i'm dan and then pass it over you if there's any other comments one ad none at not another turn i fear i think you're right yale that job either to the their be businesses about twenty nine percent of our twenty twenty two revenue and down and in august the in of the thinking oh he's done on the path that is to explore strategic options is you know the feeling that that the two businesses are aren't as integrated as we might have it originally visions and ask them that their the
spk_18: in are gonna lose a lot of that synergies by separating the the to in and then and candidly it's just it's just dumb you know what dana said it's gives giving us more runway to to sort of grow into this
spk_4: sas conscription model you know by a it out of regenerating you know big a big jagger a check for for for the dup business and them and then in that be really it's they were very low focused on preserving cash in and in minimize middle minimizing are or losses and in in cash cash burn okay great that the there very helpful image one more question here which is that google how that the on a ship you have just recently it felt ah what does be more of the increased awareness to a much greater a general public or day out there is so the other as but all of that could also involved in revenue generating generation
spk_18: yes so i think that ego gets to often just make sure our clear rights of this is that as the technology partnership right so we're leveraging am and code developing technology with google google would not be like a channel partner for like sales perspective for us but here point obviously people has great brand awareness
spk_21: a great processing power you know we're actually seeing already the ways in which and knowing the processing power the lift it's gonna get and to operations at turn turn around time right for reading these images is just is just fantastic shown as part of the work we're doing in exploring ah
spk_0: the best way to deploy the technology with life partners for example so i do think that that google helped relationship was sick be seen as you know which litigation for companies that are moving to cloud for the first time for this kind of technology and services i do think because of the brand awareness on because of the work they
spk_22: already have in place around i data security and privacy that's gonna help again i'll hopefully shorten right the cell cycle also i think like indirectly you're good to see that it's can accelerate and help revenue even though they're not per se as sales channel for us
spk_23: okay great that the
spk_24: very helpful as well and as for taking question than congrats yeah thank you
spk_25: thank you your next questions coming from dave totally from j m p securities your line is life
spk_24: i get him ah don't you he might be able to offer some color potentially on
spk_4: specifically undertaken needed new trends that you you've seen
spk_13: obviously we're
spk_26: because the and the first quarter and the would probably get any guidance but
spk_14: i'm
spk_13: zoe color and he thought he could offer as terms of the
spk_26: you know what that trajectory would look like he then first quarter or for the rest of the year
spk_13: yeah
spk_16: sudan and game like to go first on this one as well yeah what i think the of the i guess the elephant in the room is this it's good subscription model
spk_13: and you know the adding more refers to said rolled out this this path in i think we had to the described it as sort of that some what it could be bumpy of the a bumpy ride a good it could be a could come in in a big
spk_27: big waves over the over the rocks or it could just be little dribbles and so far it's been proven to be that way and so i think that probably the way to think of the rest of the years that we have a vague when really big push to
spk_24: the sells his subscription in our our our new had a sales has been pressing a new incentives ski and that program with our salesforce that encourages the sale of subscription season scoring certain he said a term contracts with as a guaranteed contracts for for longer term periods you know that would that would really provide a i sort of a more protected revenue stream together with the subscription model which we are very excited about
spk_4: so i think set up the hill look looking into the future i think we're we're definitely going to be pushing up against the you know that the revenue the accounting revenue point because it'll it'll take time to build the base of the subscription based before we can start to really see you know am in a really meghan persist in cash generating
spk_28: you know
spk_0: element of the business that old in a in a stand stand ready for the next next wave of that of adventures
spk_29: gotta admit it's implemented it i wanted to give us an uncommon i'm specifically again just to attacks inside can that with remaining the and come in and sales for size turnover anything that happened since you announce that
spk_4: restructuring would be helpful thank you hell am i can get here we did not and give reductions on the shelves for sides you still have he has seen team as he mentioned we just in a new leader for commercial also thing came from l u s perspective sell that teams remain stable and he had one change i think we made it actually get a hot pan is trading that in the in customer success function for but pre and post a house and say that again they're good actually getting access to a bigger talent for that can be available to help them you know either putting together proposal for for customers are being at the ready care of
spk_3: for the posts out services and support you training sam
spk_4: thanks thank you your next question is coming from frank baseball from oppenheimer your lines live i dare say her questions as i guess my first one is an aerobic exercises profitability go here at just wondering if you know obviously transitioning to a subscription model is getting is gonna take a hit and terms of the on the short term for influx just based on how software models work or staff models work but so just wondering why such a focus on profitability in the short term
spk_30: through this transition of business yeah
spk_13: ati man and then get a pass it to dance so am i was actually smiling right because you know i think the board would like to see it happen even faster get caught a couple of that common that question i'm i you know i think it so better with their changes we've made so far right to with the cost restructuring with really looking at you know a revenue stream from our fate selling what we have right including dad moved the cloud by the into the air that is the that it's the fastest if he will and they were able right to to reach profitability we felt like actually that with being am pretty pretty can tell we didn't cut so far that we couldn't continue to maintain and backman kinda stuff however am as we're exploring these new revenue opportunities right way in which we could diversify we may very well come back at me with you know good our board first and say here's a business plan proposed ray if we can invest acts we think that this could be the return on that investment it might push out right the path to pop that ability and but we don't know that yet to be complete that diligence and that's the work that we want a complete between now and third quarter so again year we kick a really conservative approach just building our base case model on our current set of detection solutions taking into consideration moving to the cloud take into consideration how to leverage them it is keep partnership like with so let's mammography with red partners and and we thought i think he get there and you know next year so which is it a part of what i think as well so you know from your perspective and having confidence in the business in our ability to as cute and we thought like that was you know i say responsible way in a sustainable approach to looking at our business plan going forward i'm dan is there anything that you won't care try and on the patentability sire yeah you said a lot of what i would say i i think i'm the agatha thing that comes to mind is just sort of this notion of of business business planning is what we're talking about him and absent of the core of what this is all about and so you're when you when you're planning for a business
spk_29: there's always the treasury person in the room who is probably a bit of a the skunk of along party because
spk_0: you know
spk_31: he that there there's a there's a motivation on on one side do you know run run disasters as as fast as possible
spk_32: but of course if you're not making upbringing in and some of the revenues that were you know that we're we're we're free persistent before you know in in in we're getting up front revenue on perpetual sales we have certain customers it
spk_4: proud we're never going to go to say maybe they will be oh the aliens overseas in i think
spk_3: they just need to be a balance between the pace a subscription and you know is it'll keeping some of the perpetual
spk_4: for awhile and then kill his on you have the right runway to the to that is cash if he was are you have enough cash to gotta hold yourself out there and just take your time in the know will get the the cloud completed at some point here in the near term and yeah it'll start to change the whole dynamic of how the business plan and evolves but in the near term the needs to be a balance between i guess that the person wearing the treasury hat and the people who wanna go to subscriptions fast as possible
spk_3: one of them access
spk_4: yep that's it for me thank you thanks
spk_31: thank you your next questions coming from frank attack and and from lake street capital market your line his life hey thanks to my questions i wanted to start with want me down on some your past experiences just curious if you could elaborate on how you may elect to leverage some of that experience and some of those previous relationships and to patient advocacy programs or anything i'm of that nature that could help and
spk_4: better promoting profound yes so of of speak about coming in particular i'm so i know a lot of the work we did it come and was focused on ensuring people were aware of the risk right in fact we ran campaign that were know your history know your risk i'm a lot of the ways in which we were able to have people determine their rest were very traditional models right family health history looking at other key indicators are markers on and say with felt a little bit more like a survey right or kind of a queue in a kind of approach on and been looking at just kind of correlating common factor so the other important thing about how many as you know you're looking at an organization that mobilizing you know two and a half million women on an annual basis and so they're also working with large corporate partners with women's health initiative so companies like fell for or disney on you know kind of that host factor and so i think from i catch perspective you do we would be best served by leveraging and going direct patient through organizations like a comment like b c r asked which is breast cancer research foundation like a and her he'll like american cancer society and because those organizations are looking for additional programs and tools right that they can can treat you know make sure that they're they're patient base is the whereas and then provide wait for them to access it
spk_31: you know most of their of cause cancer advocacy organizations i'm also have a lot of financial aid program so they help women get access to the care they need right to screenings especially if for example i'm there are needed they may not have the right health and health benefits rights to the maybe
spk_0: that under insured or the non insured so there are ways in which we could work with them to ensure they get access right to readings the kind that yeah our products right the profound sweet can offer so i'm i'm excited about it because they feel that it there's that baby this is kind of it as a bit of a gap in now
spk_33: knowledge about each other and how we could help each other and i you know put those kinds of programs together and place at home in so i think you know it can be a natural advocate for i can tell of leverage
spk_3: okay that's good color and than just for my my second one on just curious if you could give an update on that competitive landscape or anything out there that new or different i mean previous assumption was i had had a pretty good lead and everybody and with it continuously ingesting or data to contain a predominantly but
spk_4: the growth has flown a little bit with curious that that dynamic has changed and some other players have had the opportunity to improve their positioning he also i think you it is a very competitive landscape i'm semi the competition is and we'd say not necessarily better and terms as you know efficiency and accuracy that may be better at you know pointing out some of the the benefits of the product right so with that
spk_3: make sure we're doing a good job is continuing to socialize in evangelize about the reasons why why this is important and why you need you know why should be focusing on why it should be a top component of your evaluation criteria and we have it a and again you keeping in mind you do oh boy
spk_0: we're here for a few weeks and more active when i stepped into the executive hero and january but there aren't necessarily new competitors on their radar screen issue everybody's learning about each other's you know approach to selling i'm you know competitive strengths and weaknesses areas to spread you know five i'd fear uncertainty and doubt so you know people get better competitors right as well as ourselves get better and better at that i will say our new commercial cells lead on has a really great approach to keeping tabs on the competition on and equipping the team caf actively sell against them so he also is just
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