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spk05: Today's conference is scheduled to begin shortly. Please continue to stand by. Thank you for your patience. Today's conference is scheduled to begin shortly. Please continue to stand by. Thank you. Good morning and welcome to Science 37's Holdings, Inc. Earnings Conference call for the quarter ended September 30th, 2021. At this time, all participants are in listen-only mode. We will be facilitating a question and answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Caroline Paul, Investor Relations, for a few introductory comments.
spk06: Thank you, and thank you all for participating in today's call. Joining me are David Komen, Chief Executive Officer, and Mike Saranek, Chief Financial Officer. Earlier today, Science 37 released financial results for the quarter ended September 30th, 2021. A copy of the press release is available on the company's website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon our current estimates and various assumptions and involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. We encourage you to review our filings made with the Securities and Exchange Commission for our discussion of these risk factors, including our quarterly report on Form 10-Q for the quarter ended September 30, 2021, which will be filed today. You are cautioned not to place undue reliance on these forward-looking statements, which we speak only as of today. and the company disclaims any obligation to update such statements for new information. We believe that certain non-GAAP metrics are useful in evaluating our operational performance. We use these non-GAAP measures to evaluate our ongoing operations and for internal planning and forecasting purposes. Information about non-GAAP financial measures referenced, including a reconciliation of those measures to the most comparable GAAP measures, can be found in our SEC filings and the earnings materials available on the investor relations portion of our website at investors.science37.com. I would now like to turn the call over to David Komen.
spk08: Thanks, Caroline. Good morning, everyone, and thanks for joining us. Welcome to Science37's first earnings conference call as a public company. We're excited to speak with you today about our quarterly results for the period ending September 31. 2021. As many of you know, we entered the public markets on October 7th and raised approximately $235 million in net proceeds, which we plan to deploy to support our decentralized clinical trial technology platform extended to new adjacencies and power the next generation of clinical research. As this is our first earnings call as a public company, I will use the next few minutes to provide an overview of our business followed by an update on our accomplishments during the quarter. I will then turn the call over to Mike Zaranek, our chief financial officer, to provide more detail on our financial results during this period. And I will then wrap up and open up the call for questions. 937 is disrupting a very large $195 billion biopharmaceutical research and development industry. Most of the spending in this industry supports a clinical research process that has been largely unchanged for the past 60 to 90 years. The traditional clinical trial model is what we call site-centric, meaning it is reliant on the physical clinical research sites for trial execution. Each of these site networks has its own people, processes, and technology, creating disparity in the way each site approaches enrolling patients and collecting efficacy and safety data. This, of course, requires manpower to ensure each of these sites are consistent and compliant as possible. And today, much of that spending is allocated to the identification, contracting, training, performance, and management of sites. On the provider side, Establishing the infrastructure required to become a traditional clinical trial site is typically costly and complex. As a result, only about 5% of all providers participate in clinical research. These sites recruit patients from within their existing practices, which are highly limited by their geographic catchment area, so that only about 8% of the total patient population is ever approached about joining a clinical trial. In the end, approximately 85 percent of trials experience delays. Patient dropout rates are 20 to 30 percent, and people of color are represented at about one-third the rate of the actual population, creating not only a social issue but an important scientific one. Science 37's mission is to accelerate clinical research by providing universal access to patients and providers anywhere. and we aim to be the category-defining operating system on which the industry standardizes. The Science37 operating system consists of a full stack end-to-end technology platform to manage workflow, generate clinical evidence, and harmonize the data for regulatory submission. Our technology platform interacts with our specialized networks that include patient communities, from which we can recruit patients faster, telemedicine investigators who manage patients from virtually anywhere in the world, mobile nurses who can enable patients to participate from the comfort of their own home, remote coordinators who ensure all patients have a consistent experience as opposed to what we believe to be the more disjointed experience created from a fragmented site network, and connected devices to collect a diverse range of data types. Utilizing this more patient-centric approach, the Sign37 operating system has been able to achieve up to 15 times faster enrollment, up to 28% greater patient retention rates, and three times the representation among patients of color, matching the representation of the real population. To date, We've conducted more than 100 decentralized clinical trials, and we have engaged approximately 475,000 patients in the process. We currently provide three offerings, each of which are underpinned by the Science37 technology platform, the first of which is a full decentralized clinical trial, or DCT. In this case, we're orchestrating the entire trial utilizing our technology platform and specialized networks, and we're the sole provider to the clinical trial sponsor. Our second offering is what we call a metasite, in which we act as a virtual site to supplement a network of traditional sites. We leverage our technology platform and orchestrate the clinical trial, but are responsible for a portion of the total patients associated with a clinical trial. are often conducted in tandem with a clinical research organization, many of which are strategic partners. Our third offering is what we call technology or tech plus. In this case, we are not orchestrating the trial, but we are configuring the technology to support patient engagement, remote e-consent, e-source, electronic clinical outcome assessments known as eCOA, telemedicine, and or third-party integrations as part of a broader solution. Additionally, through our Tech Plus offering, our specialized networks can be added to the technology solution, including patient communities, telemedicine investigators, mobile nurses, remote coordinators, and connected devices. This level of flexibility with our offerings enables us to support virtually any phase of clinical study and any indication from Alzheimer's to Zika disease and everything in between. Science 37 is commonly attributed as the pioneer of decentralized clinical research and at the forefront of innovation. As a result, we are delivering on a wide range of trial types. On one end of the spectrum, Science 37 is executing fully decentralized trials on a massive scale, and today we are conducting pivotal studies that require up to 25,000 patients. On the other end of the spectrum, Science 37 is also fully orchestrating precision medicine studies. As recently released, the Science 37 operating system is currently being utilized in a precision oncology study with Roche on a very rare tumor mutation. In this case, we've partnered with Foundation Medicine to identify specific patients who fit this rare profile and to enlist their provider to become an investigator. Upon initiation, All the processes and technologies are being run through the Science 37 operating system, so the patient can be seen on-premise or remotely with their current provider. We call this BYOI, or bring your own investigator, or the patient can be managed fully remotely by a Science 37 investigator. And as a result, Science 37 is making what was formerly impossible possible. Turning to our quarterly results, I'm pleased to report that through this most recently completed quarter, our team continued to build on our positive momentum. We've already achieved our full year goal for net bookings, delivering more than $120 million a year to date as of September 30th, 2021. We delivered year-over-year revenue growth of 116%, year-over-year adjusted gross margin improvement of 354 basis points, and EBITDA, which was significantly better than what we projected. We have a healthy backlog of more than $141 million, which gives us great confidence in our ability to deliver on our plan for the upcoming quarter ending December 31, 2021, and augurs well for 2022. We continue to make investments commercially, geographically, and technologically to support our growth. We're on track to triple our commercial sales force by year end and continue to invest in our partnership channel, particularly with CROs. In that regard, and consistent with our plans to expand geographically, we recently announced partnerships with CIMIC and 3HMETI. CIMIC and 3HMETI are two of the largest CROs in Japan. and plan to use our operating system to execute decentralized capabilities to trials in Asia, while providing Science 37 a further opportunity to bring Asia Pacific market trials to the rest of the world. Additionally, we've made significant investments in our technology, starting with leadership and the appointment of Elisa Cascade, who has joined our team as Chief Product Officer Elisa brings more than 30 years of experience in clinical trial technology, direct-to-patient operations, and healthcare strategy, joining most recently from ERT, where she served as executive vice president and product line executive. As Science 37 expands, we are also focused on penetrating new verticals, including penetration into ECOA, real-world evidence, and diversity in clinical research. In summary, we delivered strong results for the quarter with accelerating revenue growth, and we are enthusiastic about our prospects over the next 12 months and beyond. With that, I'll now turn the call over to Mike Zaranek, our Chief Financial Officer, then we'll return with some closing comments.
spk09: Thank you, David. Hello, everyone. First, we will go through the quarterly results for Science 37 Holdings, and then I will finish with the 2021 guidance. Revenues for the three months ended September 30th, 2021 were 14.2 million, a 116% year-over-year increase from the 6.6 million in the same period of the prior year. Growth was driven by an increase in the demand for our offerings as evidenced by the increase in our net bookings and the number of projects we were executing. As a reminder, we derive our revenues primarily from two sources. Number one, licensing our proprietary technology platform to a variety of life science institutions, and number two, through contractual arrangements to enable and enhance clinical trials through our technology and or services, i.e. full service, DCT, and Medisite. In addition to revenue, we also monitor net bookings as a key performance indicator. Net bookings for the three months ended September 30th, 2021, with 35.9 million, an increase of 342% from the prior year period due to an increased demand for our offerings, with a couple of large contracts booked earlier in the quarter. With these results, year-to-date, we have already surpassed our internal projections for net bookings for the full year 2021. At this point, I'll mention that at our current scale, bookings, revenues, and profitability can vary substantially from quarter to quarter, in part due to the timing around a limited number of contracts. Excluding stock-based compensation, adjusted gross profit margin increased to 28.4 percent from negative 7.0 percent for the quarter ended September 30, 2020. As some of you might recall, we implemented a revised pricing strategy in the last quarter of 2020. That change resulted in us going to market with higher margin profile on our offerings. We're pleased with the margin expansion that we've seen on a year-over-year basis But as we've stated previously, a number of factors can influence margins, including but not limited to the timing of and ramp of new projects, the relative percentage of pass-through revenue and costs, and the hiring needs to deliver on the new bookings and existing backlog. Selling general and administrative expenses, excluding depreciation and amortization, for the quarter were $16.9 million, a 169% increase from the $6.3 million in the same period of the prior year. As David mentioned earlier, we continue to invest in commercialization, technology, delivery, and our underlying infrastructure in an effort to scale. The increase in SG&A was mainly due to increased headcount to support significant company growth, as well as planned investment in anticipation of the merger with Life Science Acquisition II Corp, or LSAC. The increased headcount led to increases in salary and benefits, web services and software, as well as employee recruiting costs. We also saw increases in SG&A due to expenses associated with the LSAC merger, such as consulting fees and capitalized sales commission amortization expense due to significantly more bookings and revenues for the three months ended September 30th, 2021, compared to the same period in 2020. Adjusted EBITDA, which we calculate by adding back depreciation, amortization, taxes, interest, transaction expenses, and stock-based compensation to net loss, was a loss of 12.0 million in the quarter, compared to a loss of 6.7 million in the same period in 2020. Adjusted net loss for the quarter was 13.9 million, compared to a net loss of 7.8 million in the same period a year ago. Now, we also wanted to provide a bit of context regarding the momentum and demand we've seen so far this year. For the nine-month period ending September 30, 2021, we generated $39.2 million of revenue versus $12.5 million in the same period last year. This is up 213 percent year-over-year and more than 1.65 times the full-year 2020 revenue of $23.7 million. As David mentioned, we've seen strong demand for our offering, and for the year-to-date period ending September 30, 2021, we generated over $120 million in net bookings, which is more than twice the $56 million we generated for all of 2020, and is ahead of the prior four-year forecast of $119 million. As of early November, our qualified sales funnel sits at a record level. Likewise, throughout 2021, we have seen an increase in traction with a number of more meaningfully sized opportunities. Moving to the balance sheet, we ended the quarter with approximately $8 million of cash, cash equivalents, and short-term investments. As David mentioned, we were pleased to complete our merger and concurrent pipe in early October, which generated net proceeds of approximately $235 million. We are pleased by our quarterly results, which exceeded our internal forecasts. Based on this momentum, we are initiating formal guidance for the full calendar year ending December 31st, 2021. We expect 53.7 to 54.2 million in revenue, representing growth of approximately 127 to 129% over full year 2020 revenues of 23.7 million. Adjusted EBITDA for the year ending December 31st, 2021 is expected to be negative 43.7 million to negative 45.7 million. Lastly, our anticipated basic share count is expected to be approximately 114.7 million. Since we are anticipating being in a loss-making position in the upcoming quarter, any converted options would be deemed to be anti-dilutive. And therefore, on a GAAP basis, we expect the basic and diluted share counts to be the same. Before I turn the call back over to David, I wanted to provide clarification relative to our SEC filings. By close of business today, we will have filed three separate documents with the SEC. First, our earnings release has been filed as an attachment to an 8K. Second, we will file an amended Super 8K, which will contain updates to the 8K we filed on October 13th, including amongst other things, the financial statements of Legacy Science 37, with related notes and management discussion and analysis, as well as related materials for the quarter ending September 30th, 2021. Third, we will file a 10Q for the Legacy Life Science Acquisition II Corp, or LSAC, which is necessary since LSAC was the public company at the end of the quarter, since the transaction did not close until early October. As some of you may know, LSAC has a fiscal year ending in June. We intend to transition to a calendar year by fiscal year end 2021, consistent with how Science 37 operated prior to the merger. At this point, I would like to turn the call back to David for closing comments.
spk08: Thank you, Mike. We are certainly very pleased with our results for the quarter as we continue to innovate, deliver, and disrupt this very large industry. We believe we have the operating system on which the industry will standardize to enable more agile clinical trial designs, accelerate enrollment, retain patients at a higher rate, reduce the patient burden, increase diversity, improve compliance, and generate the highest quality data from which to make drug decisions. Science 37 makes all of this possible through one unifying technology and our specialized networks that are empowered through one set of unifying processes. enabling universal access to patients and providers anywhere. As a final note, it's important to recognize the incredible team we've assembled here at Science 37 who are as passionate about our mission as they are professional, talented, and experienced. I feel very privileged to work alongside this team as we continue down a path of growth and innovation. We're also grateful to our newest investors who share our commitment to disrupting the traditional clinical trial model and delivering on our mission. With that, we will now open up to questions. I'll turn it over to the operator.
spk05: As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, press the pound key. We ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. Our first question comes from the line of Charles Rhee from Cowan. Your line is now open.
spk00: Yeah, thanks, guys, and David and Mike, congratulations on the quarter. Really strong results here, and obviously it's great to hear the momentum is going as well as you guys had hoped for here. You know, having reached your sort of bookings expectations for the full year at this point already after nine months. You know, we are in the middle of November and understanding that there is variability and volatility in your pipeline given the relatively small size that you're still at. Any kind of indications you can give us here directionally for fourth quarter bookings and what that might mean as we think a little bit beyond this year into next year and I guess asking more in terms of when we think about sort of a book-to-bill rate. Should we continue to expect something that maybe we saw here in the third quarter? Anything like that would be helpful.
spk09: Hi, Charles. Thanks. This is Mike here. Appreciate the question. Yeah, I think what we said in the prepared remarks was the qualified sales funnel fits at a record level. We're very pleased with the fact that through the first three quarters of this year, We have exceeded what the original expectation was for the full year. So nice momentum on that front. Yeah, I think we're seeing in terms of some other – let me give you some other color on that. As you look at the first nine months of this year, we had about 75% of the bookings coming in from customers that we've worked with previously. So we think that that's a nice metric – in terms of the mix with respect to repeat customers as well as new customers. As we look at what we saw in the third quarter, we saw an increase in the average selling price, and we also won a couple of larger deals from two top 10 pharma in the quarter, companies that we'd worked with previously. So I think from where we sit right now, we're not providing formal guidance with respect to the bookings. but we're pleased with where we sit relative to the third quarter, the year-to-date numbers, and the qualified sales funnel is sitting in a record bubble right now.
spk00: Great. And, you know, well, let me move on then. And then, David, you know, maybe just a broader question here. You've obviously brought, you know, are delivering a single solution that's, you know, kind of delivers, you know, all the necessary capabilities to customers. your farmer partners in multiple kind of formats here. You know, but if we think more broadly in the market, you are seeing more and more players either enter this market or larger players kind of push into it from, you know, other adjacencies. Maybe give your sense of what the competitive landscape currently looks like and, you know, how you see yourselves positioned within it. Thank you.
spk08: Sure. Thanks for the question, Charles. Hope you're doing well. Well, so, you know, We're hearing a lot from a tech perspective. We're seeing a lot of companies that are coming in with point solutions, such as eConsent and eCOA and maybe a telemedicine plug-in, who are claiming to be enabling decentralized clinical research. A key distinction between these point solutions and executing a fully decentralized clinical trial is that our tech platform enables the entire workflow to orchestrate a complete decentralized clinical trial. And so that includes eConsent, eCOA, and we have a fully integrated telemedicine module, but also the real-time engagement and coordination between the patient, the telemedicine investigator, the on-premise investigator, a mobile nurse, remote coordinators, and connected devices, and we do it all on one united platform, and we believe that ours does that significantly better than any others. And while it's Most of these technology companies stop at just providing tech. We believe that Science37 is the only tech company of scale that's also fully orchestrating decentralized clinical trials through our specialized networks around the world, which creates a virtuous cycle. So it enables us to continuously improve the interactions between the patient and the healthcare provider and any connected devices, which creates a really meaningful long-term competitive moat.
spk00: Great, thank you. I'll jump back in the queue.
spk08: Thanks, Charles.
spk05: Thank you. Our next question comes from the line of John Krieger from William Blair. Your line is now open.
spk04: Hi, thanks very much. David, just to maybe expand on that last point, can you give us a sense about what your geographic mix in revenues is today and how that also showed up in your bookings, U.S. versus non-U.S.? ?
spk09: Sure, yeah. This is Mike. Hi, John. Thanks for the question. I think what we've said today is that we've had good success in terms of winning global projects. The platform has been translated and utilized in a number of markets. As we sit here today, a number of the bookings that have come in have been global in nature. In terms of the overall mix The business remains currently, historically from a revenue perspective, largely U.S.-based, but that is increasing in terms of the rest of the world standpoint. And as you might have seen from the couple of press releases that we announced within the last month or so, strategic partners with respect to CIMIC and 3H Medi really provide an opportunity for us to execute on a more global basis, particularly in the Asia-Pac region.
spk04: Great, thanks. And then a follow-up. Now that the transaction is closed, can you just talk a bit more about your investment plans for the coming year? I know you've signaled pretty aggressive plans, but I would love to hear a little bit more detail on where the spending will happen. Thanks.
spk08: Sure. Thanks for the question, John. So as we look at moving forward, we're expanding our commercially, geographically, and technologically. From a commercial standpoint, as I noted in the prepared comments, we're tripling the commercial organization throughout this year. We expect to continue to make investments in the commercial organization. We expect to make investments geographically as well. As Mike mentioned, we just created a partnership with both CIMIC and 3H Medi in in Asia, and that's good on two fronts. One, it helps us to expand into the Asia-Pac market, but it also enables us to identify Asia-Pac opportunities and bring them back into the rest of the world. It's also very consistent with the commercial strategy, which is expanding into CRO partnerships and enabling CROs to also participate in decentralization as they standardize more on Science 37. And then finally, technologically, we're making a lot of investments in the platform in and of itself, particularly to enable workflow, which is what we have, I think, uniquely relative to the other players in the market, as I just had referenced. So not just the feature functionalities in order to enable the evidence generation, but but really the workflow in order to enable all of the different constituents to be able to interact with the platform seamlessly.
spk04: Sounds good. Thank you.
spk08: Thanks for the question.
spk05: Thank you. Our next question comes from the line of Eric Caldwell from Bayard. Your line is now open.
spk03: Thanks very much. Good morning. I'm curious if we could dig in a little bit on the recent CRO partnership, CIMIC and 3H, could you give us a little background on how those relationships came to be? Were you previously working with them before formally structuring this, these partnerships? You know, is it, how long does it take for those to ramp for them to start co-promoting with you? And how do you go to market when working with a new CRO partner? I'm just curious how the, the sales funnel is it, is it coming in from them? Is it, is it joint work? How do you, How do you work together to co-promote and commercialize your offering?
spk08: Yeah, thanks for the question. I think just starting with the beginning of your question, which is how did these relationships come about? We've been having these conversations with both parties for quite some time. Some of these conversations going back over a year. But we finally got to the point where we're able to formalize these and As we think about Asia-Pac in particular, we're thinking about, you know, how best to penetrate that marketplace without having the infrastructure costs behind it. And this is really, you know, both of these are just perfect relationships for us to be able to make that happen. And then the reciprocity, if you will, with their light infrastructure, rest of world, it really gives them arms and legs, if you will, the rest of the world, plus technology that sits and underpins everything, you know, it's really, you know, couldn't be a better relationship. In regards to CROs, you know, great question in terms of the relationships we have with them. All of our CRO partnerships we look at as giving them the ability to supplement what is a traditional clinical trial infrastructure with the centralized clinical trial infrastructure And if you think about the ways most CROs are structured, they're built to be able to manage the site-based network. So that's about identifying the right sites, it's about getting those sites up and running as fast as possible, training those sites and monitoring those sites. And all the SOPs are designed in order to make that happen. The beautiful thing about the partnership with Science 37 and CROs is it gives them the opportunity to be able to participate in decentralized clinical research without having to change all of the SOPs or the technology they already have in place. And it really enables them to get to the white space that they don't currently have access to. So if you think about a traditional clinical trial where only about 5% of sites participate in clinical research and only 8% of patients are ever contacted to join clinical research, it really gives them, by putting Science 37 on top of their site network as a virtual site, access to the 92% of the rest of the population that doesn't get engaged today.
spk03: Thanks, David. And my follow-up is shifting gears. It's on gross margin. It already foreshadowed the quarter-to-quarter variance that would be expected, and I think you came out above both us in the street this quarter with better gross margin than we were anticipating in the third quarter. There's a number of influences on gross margin. Obviously, in your model, you have the mix of work that you're selling, whether it's tech license versus metasite. You have potentially variance in pass-throughs, and then, of course, there's the direct labor costs, which I think everybody knows labor is a challenge around the world and certainly in this industry. I'm curious if you could give us a sense on what were the – if you could force rank the gating factors for margin right now, what were the bigger influences on gross margin this quarter between mix of work, labor, and then possibly, if you're willing to go that far, talk about pass-through in the revenue model this quarter would be great.
spk09: Sure, sure. Thanks, Eric. This is Mike. Appreciate the question. Yeah, you're right. I mean, I think as we came in to this quarter, as we've said previously, there are a number of factors that can influence margins. You highlighted some of those in terms of the timing and ramp of new projects. And as you saw in terms of our progression with the bookings, we did have some good positive momentum on that. We do have a number of projects in the startup phases. The relative percentage of pass-throughs also can influence things. And as it relates to the labor costs, it's not only the existing labor costs, but it's the new higher laboring costs to ensure that we can execute on some of that momentum that we've got from a booking standpoint. From our standpoint, I think that we're continuing to look at ways that we can tried to manage that. But at the current scale, obviously, we can have some volatility. But with respect to some of the initiatives that we have put in place and continue to put in place, a couple of things to think about. Number one, we talked about the change in strategic pricing that we underwent in Q4 of 2020. We still do have some legacy backlog associated with that Q4 2020 pricing in place. And so that continues to be a bit of an anchor. on the overall gross profit margin. As that unwinds here over the course of 2022, there should be some natural uplift associated with that. We've done some reasonable progress in terms of getting more into that land and expand strategy that we've talked about with respect to some of the larger customers. And with those negotiations, I think there's a balance there in terms of the amount of volume that you can potentially get versus some of the pricing negotiations. And so we will continue to work through that. I think one of the things that we have seen as we've gotten a bit more to scale, particularly around things like Metasite where we're going head-to-head with additional site-based approaches, in many cases we can see the performance relative to the traditional way of doing clinical research, but in all cases, the customer can see that. So being able to have the data to articulate the value process has been helpful and will continue to be helpful going forward. Another couple of things that we're working through, just to give you some additional context, is we're looking at insourcing some of the capabilities that historically we've outsourced, and therefore, in some cases, those are pass-through, and so we believe we'll be able to pick up some margin on that front The technology investments that we continue to make, we believe, will have some efficiency going forward, moving some of the tasks that historically have been manual in nature to more automated. Obviously, as we drive scale and grow the business here, there should be some additional efficiencies associated with that. And then finally, one of the things that we've been able to do more recently and continue to invest in is building out our communities of patients. And by doing that, we were able to drive the cost of patient acquisition down in some cases. So hopefully that's some additional context around.
spk03: That's great. I'll let others jump in, but congrats on your first public quarter. Thanks, guys.
spk08: Thanks so much.
spk03: Appreciate it.
spk05: Thank you. Our next question comes from the line of Frank Tankanen from Lake Street Capital Market. Your line is now open.
spk07: David, Mike, good morning. Thanks for taking my questions. I wanted to start with mix, referenced a little bit in the previous question, but maybe just give us a little bit more information around what the mix between full DCT meta and technology look like in the quarter. And then if you could also just speak to what the backlog composition looks like and how this could drive the trend of those three offerings going forward.
spk09: Sure. Thanks, Frank. Appreciate the question. Happy to try to address some of that. In terms of the mix, again, I think we have to remember at the current scale, you can have volatility in a particular quarter. And a small number of projects obviously can make a meaningful difference. I think on an annual basis, what we're expecting to see and what we've seen
spk07: uh across the board is directionally a more equitable split amongst the three offerings in terms of our bookings and that's consistent with what we've talked about previously okay that's helpful and then just the second one wanted to speak about covet a little bit you're in a unique position where you both at times see nice tailwinds as well as some headwinds i'm sure but maybe just talk about the result in the quarter it looks like there wasn't any headwind per se but Talk to any COVID impacts, positive or negative, that you felt you experienced in the quarter.
spk09: Yeah, sure. So maybe I'll start and David can weigh in on that. You know, I think there are two components. There are a couple components to that question. One, you know, as you look at the overall business, what we have seen is a sequential increase in revenues and a strong year-over-year growth, and we're forecasting for the full year. year-over-year growth of more than 125% on a revenue basis. We're doing that in the context that most of the sites around the world are now open up from a COVID standpoint, whereas if you were to look at Q2 last year, that was not the case, for example. So I think what we're seeing is an acceleration of our business even as the sites have opened up, which is a positive. I think if you look at the regulatory environment in the FDA, for example, having put out 70-plus white papers in the last year and a bit. That speaks to some of the support that they have around this approach for doing clinical research. As it relates to the specific business impact, whenever we did our analyst day in mid-July, we talked about the fact, and I think you might have asked this question, about how much of our business related to COVID specifically, and at the time, We quantified all of infectious disease in our qualified sales funnel, representing about 15% of the overall pipe at that time, which is much smaller than where it is now, by the way, from a pipeline perspective. If you look at the proportion of COVID-related trials, as we sit here today, it's sub-10%. So not a huge business impact. from a performance standpoint or from a pipeline perspective. David, do you want to add anything?
spk08: Yeah, I guess the other thing I would say is it's really not about COVID anymore. It's really about delivery and Science37 has been able to deliver exceptionally well and I'm super proud of the team. You take a look at the bookings that we've experienced from the beginning of the year, about 75% of the bookings are from repeat business and that's all a factor of proving the model and some of the prepared notes that we're executing very quickly, so up to 15 times faster in terms of our ability to bring patients in. We're retaining patients longer, up to 28% longer than the traditional model when we're able to bring in a more diverse patient population. And so as we continue to be able to deliver, execute on the model, we're going to continue to get repeat business and beyond that, really change the face of the way people think about decentralization, you know, not as a, you know, a fix it for COVID or an innovation, but really what's happening is a, you know, pure shift to decentralization as an alternative model to or supplement to what you're currently doing and the successes they're showing.
spk07: Perfect. That's great, Colin. We'll stop there. Thanks, guys. Thanks, Lafayette.
spk05: As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, press the pound key. We ask that you please limit yourselves to one question and one follow-up question, please. At this time, I'm showing no further questions. I would like to turn the conference back over to David Komen for closing remarks.
spk08: All right, well, thanks, everybody, for participating on today's call. We're obviously very bullish about the quarter and how we were able to perform, and we look to the future in terms of what we're executing and the momentum that we have behind us, and we're very excited about it. And, you know, thanks again for joining us, and we'll see you again on next quarter's call.
spk05: This concludes today's conference call. Thank you for participating. You may now disconnect.
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