Science 37 Holdings, Inc.

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.

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.

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.