Science 37 Holdings Inc (SNCE) 2023 Q2 法說會逐字稿

Greetings and welcome to the Science 37's second-quarter 2023 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Stephen Harper, LifeSci Advisors. Please go ahead.

歡迎參加 Science 37 2023 年第二季度財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，LifeSci Advisors 的斯蒂芬·哈珀 (Stephen Harper)。請繼續。

Thank you, Wrendon, and thank you all for participating in today's call. Joining me are David Coman, Chief Executive Officer; and Mike Zaranek, Chief Financial Officer. Earlier today, Science 37 released financial results for the quarter ended June 30, 2023. A copy of the press release is available on the company's website.

謝謝你，Wrendon，也感謝大家參加今天的電話會議。與我一起出席的還有首席執行官 David Coman；和首席財務官邁克·扎拉內克(Mike Zaranek)。今天早些時候，Science 37 發布了截至 2023 年 6 月 30 日的季度財務業績。該新聞稿的副本可在該公司網站上獲取。

Before we begin, I would 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.

在我們開始之前，我想提醒您，管理層將在本次電話會議期間發表聲明，其中包括聯邦證券法含義內的前瞻性聲明，這些聲明是根據1995 年《私人證券訴訟改革法案》的安全港條款制定的這些前瞻性陳述基於我們當前的估計和各種假設，涉及重大風險和不確定性，可能導致實際結果或事件與這些前瞻性陳述預期或暗示的結果或事件存在重大差異。

We encourage you to review our filings made with the Securities and Exchange Commission for discussion of these risk factors, in the risk factors section of the company's most recently filed periodic reports on Form 10-K and Form 10-Q in subsequent filings. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today, and the company disclaims any obligation to update such statements for new information.

我們鼓勵您查看我們向美國證券交易委員會提交的文件，以在公司最近提交的定期報告（表格 10-K 和表格 10-Q）的風險因素部分中討論這些風險因素。請您注意不要過分依賴這些前瞻性陳述，這些陳述僅代表今天的情況，並且公司不承擔任何更新此類陳述以獲取新信息的義務。

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 reference, including a reconciliation of those measures to the most comparable GAAP measures can be found in our SEC filings and in 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 Coman. David?

我們相信某些非公認會計原則指標對於評估我們的運營績效很有用。我們使用這些非公認會計原則衡量標準來評估我們的持續運營以及內部規劃和預測目的。有關非 GAAP 財務指標參考的信息，包括這些指標與最具可比性 GAAP 指標的調節表，請參閱我們向 SEC 提交的文件以及我們網站 Investors.science37.com 投資者關係部分提供的盈利材料。我現在想把電話轉給大衛·科曼。大衛？

Thank you, Steve, and thank you, everyone, for joining us today for our second-quarter 2023 earnings call. I'm really pleased to report that the strategies we've implemented over the past several quarters as discussed on these calls, including fully transforming our commercial model, becoming laser focused on the Metasite value proposition, investing in patient recruitment and quality as key differentiators, shedding expenses that don't support the Metasite, and investing in near and offshore centers of excellence to improve our unit economics have all really started to pay dividends.

謝謝史蒂夫，也謝謝大家今天參加我們的 2023 年第二季度財報電話會議。我真的很高興地向大家報告，我們在過去幾個季度實施的戰略正如這些電話中所討論的那樣，包括全面轉變我們的商業模式、專注於Metasite 價值主張、投資於患者招募和質量作為關鍵差異化因素、削減不支持 Metasite 的費用，以及投資近郊和離岸卓越中心以改善我們的單位經濟效益，這些都真正開始帶來紅利。

Quarter over quarter, our RFP dollar volume is up more than 50%; our gross bookings are up more than 60%; our net bookings are up nearly 15%; our revenue is up nearly 10%; our gross margin margins are more than 13% percentage points higher; EBITDA is nearly 40% better; and our cash burn is more than 30% lower.

與上一季度相比，我們的 RFP 金額增長了 50% 以上；我們的總預訂量增長了 60% 以上；我們的淨預訂量增長了近 15%；我們的收入增長了近 10%；我們的毛利率高出13%以上； EBITDA 提高了近 40%；我們的現金消耗降低了 30% 以上。

You'll note in our press release that we released some of our backlog this quarter. Our bookings adjustment was $24.6 million, $20.8 million or about 85% of the total comes from COVID risk mitigation studies where we were contracted in 2020 and 2021 to supplement traditional site-based activity, and we were only compensated when sites used our services.

您會在我們的新聞稿中註意到，我們本季度發布了一些積壓訂單。我們的預訂調整額為2,460 萬美元、2,080 萬美元，約佔總額的85% 來自新冠病毒風險緩解研究，我們在2020 年和2021 年簽訂合同，以補充傳統的基於網站的活動，並且只有當網站使用我們的服務時，我們才會獲得補償。

Given the incredibly poor site adoption rates for these studies, we agreed to discontinue these contracts with our sponsors in the second quarter. While this enabled us to free up some carrying costs and some cases accelerate revenue as part of our modest close-out provisions, we had very low expectations for these studies. It's little impact on our second quarter P&L, and do not have a material impact on our 2023 guidance.

鑑於這些研究的網站採用率極低，我們同意在第二季度終止與讚助商的這些合同。雖然這使我們能夠釋放一些持有成本，並且在某些情況下加速收入，作為我們適度的結清準備金的一部分，但我們對這些研究的期望非常低。這對我們第二季度的損益影響不大，並且對我們 2023 年的指導沒有重大影響。

We have about $8 million similar COVID risk mitigation work in our backlog that we are watching very closely. We're also watching a handful of other studies in our backlog totaling about $25 million in contract value that may be amended this year, not unlike traditional clinical trial sites or CROs. The reason for these potential amendments includes early endpoint detection, sponsor funding, and sponsor pipeline prioritization. None of these potential adjustments that we're watching are quality or execution related.

我們的積壓工作中有大約 800 萬美元的類似新冠病毒風險緩解工作，我們正在密切關注。我們還關注積壓的其他一些研究，合同價值總計約 2500 萬美元，今年可能會進行修改，這與傳統的臨床試驗場所或 CRO 不同。這些潛在修訂的原因包括早期終點檢測、贊助商資金和讚助商管道優先級。我們正在觀察的這些潛在調整都與質量或執行無關。

It's important to note that we've anticipated these potential adjustments, and we have risk adjusted our guidance or we call our phase backlog with these expectations. We expect our normalized realization rate to be around the industry average of between 15% and 20% of our gross bookings in 2024 and beyond. Pulling this together from a forward-looking perspective, given our increasing RFP volume, we expect gross bookings in the second half of the year to exceed the first half with heavier weighting in the fourth quarter given bookings seasonality.

值得注意的是，我們已經預料到了這些潛在的調整，並且我們已經風險調整了我們的指導，或者我們將這些預期稱為我們的階段積壓。我們預計，到 2024 年及以後，我們的標準化變現率將達到行業平均水平，佔總預訂量的 15% 至 20%。從前瞻性的角度來看，鑑於我們的 RFP 量不斷增加，我們預計下半年的總預訂量將超過上半年，並且考慮到預訂的季節性，第四季度的權重將更大。

In regard to forward-looking revenue, we are taking into account the gross bookings for the first half were greater than expected. RFP flow continues to accelerate, and we expect continued momentum given the recent FDA draft guidance documents regarding the acceptance of the centralized clinical trials and the need for greater participants diversity. As a result, we're raising our 2023 revenue guidance to approximately $60 million, which was the top end of our previous guided range. With our continued focus on cost management, we expect 2023 EBITDA to be a loss of approximately $35 million, which is much stronger than our previous guidance.

關於前瞻性收入，我們考慮到上半年的總預訂量高於預期。 RFP 流程繼續加速，考慮到 FDA 最近關於接受集中臨床試驗和需要更大的參與者多樣性的指導文件草案，我們預計這種勢頭將持續下去。因此，我們將 2023 年收入指導提高至約 6000 萬美元，這是我們之前指導範圍的上限。隨著我們持續關注成本管理，我們預計 2023 年 EBITDA 損失約為 3500 萬美元，這比我們之前的指導要強得多。

If you recall, during our first-quarter earnings release, we said the expected burn rate to be $10 million of cash in the fourth quarter of 2023. Given our first half 2023 performance and cost containment efforts to date, we're now expecting to burn less than $10 million of cash in the third quarter of 2023 and less than $15 million of cash over the second half of this year, exiting 2023 with more than $50 million on hand.

如果您還記得，在我們第一季度財報發布期間，我們表示預計 2023 年第四季度的現金消耗率為 1000 萬美元。鑑於我們迄今為止 2023 年上半年的業績和成本控制工作，我們現在預計2023年第三季度消耗的現金不到1000 萬美元，今年下半年消耗的現金不到1500 萬美元，到2023 年結束時手頭現金將超過5000 萬美元。

We expect continued bookings and revenue growth in 2024 with a similar approach to cash management and have been consistent in our communication, and we expect to exit the fourth quarter of 2024, EBITDA positive with ample cash on hand without having to raise additional capital. We have implemented the right strategy to achieve these objectives, and we're starting to see the positive effect of these changes. With that, I will turn the call over to Mike Zaranek, our Chief Financial Officer, to provide additional details.

我們預計2024 年的預訂量和收入將持續增長，並採用類似的現金管理方法，並且我們的溝通保持一致，我們預計2024 年第四季度將實現EBITDA 為正值，手頭有充足的現金，無需籌集額外資金。我們已經實施了正確的戰略來實現這些目標，並且我們開始看到這些變化的積極影響。接下來，我會將電話轉給我們的首席財務官 Mike Zaranek，以提供更多詳細信息。

Thank you, David, and good morning, everyone. I will discuss second-quarter results for the quarter ended June 30, 2023, and then we'll discuss our outlook for the full year 2023. To start with, I'm pleased to report that we have improved sequentially in each key financial metric in the second quarter of 2023. While we've reported consistent improvements to our cost basis over the past 18 months, we are particularly pleased to have added sequential revenue growth in the second quarter.

謝謝大衛，大家早上好。我將討論截至2023 年6 月30 日的季度的第二季度業績，然後我們將討論我們對2023 年全年的展望。首先，我很高興地報告，我們在每個關鍵財務指標上都取得了連續改進2023 年第二季度。雖然我們報告過去 18 個月來我們的成本基礎持續改善，但我們特別高興的是第二季度收入連續增長。

We finished the quarter with $38.2 million in gross bookings and $13.6 million in net bookings. As David mentioned, approximately $20.8 million of the second quarter adjustments related to COVID mitigation solutions that were contracted during the pandemic. Nearly $16.4 million of this comes from a single COVID mitigation follow-up study with greater than eight years remaining. As such, these adjustments made during the second quarter had minimal second-quarter revenue implications relative to our previous guidance.

本季度末，我們的總預訂量為 3820 萬美元，淨預訂量為 1360 萬美元。正如 David 提到的，第二季度調整中約有 2080 萬美元與大流行期間簽訂的新冠疫情緩解解決方案相關。其中近 1,640 萬美元來自一項新冠疫情緩解後續研究，該研究還剩八年多的時間。因此，相對於我們之前的指導，第二季度做出的這些調整對第二季度收入的影響很小。

Excluding the COVID mitigation adjustments, our cancellation rate for the second quarter was 10%, which is lower than 15% to 20% industry cancellation rate that we expect over time. It is important to note that of our $168 million in backlog as of June 30, 2023, there was approximately $8 million remaining of COVID mitigation contracted work.

不包括新冠肺炎緩解措施的調整，我們第二季度的取消率為 10%，低於我們長期預期的 15% 至 20% 的行業取消率。值得注意的是，截至 2023 年 6 月 30 日，在我們 1.68 億美元的積壓訂單中，還有大約 800 萬美元的新冠疫情緩解合同工作剩餘。

Consistent with standard industry practice, we review project status on no less than a monthly basis. And as David mentioned, of our entire project portfolio, there are a handful of studies that we are monitoring totaling about $25 million aggregate contract value, which spans out over multiple years. To be clear, we have de-risked these in our revenue guidance and have a high degree of visibility to near-term revenues.

根據標準行業慣例，我們至少每月審核一次項目狀態。正如 David 提到的，在我們的整個項目組合中，我們正在監測一些研究，總合同價值約為 2500 萬美元，跨越多年。需要明確的是，我們已經在收入指導中消除了這些風險，並對近期收入具有高度的可見性。

Second quarter revenues were $15.4 million, which was $3.9 million or 20.4% decrease from the same period of the prior year or $1.3 million and 9% sequential improvement versus the first quarter. Much of this increase was due to our ability to accelerate revenue given the impact of our new patient recruitment strategies that we discussed last quarter.

第二季度收入為 1540 萬美元，比上年同期減少 390 萬美元，下降 20.4%；比第一季度下降 130 萬美元，環比增長 9%。考慮到我們上季度討論的新患者招募策略的影響，這一增長很大程度上是由於我們加速收入增長的能力。

Adjusted gross profit for the second quarter was $5.5 million, which was down $0.4 million or 7% as compared to the same period of the prior year and up $2.3 million or 72% sequentially. Adjusted gross margin for the quarter was 36%, which was up 5.4 percentage points from the same period last year and up 13.1 percentage points from the first quarter of 2023. Much of this gross margin improvement was the result of achieving higher utilization rates as well as increased velocity on our patient recruitment efforts, which we spoke about previously.

第二季度調整後毛利潤為 550 萬美元，比上年同期下降 40 萬美元，即 7%，比上一季度增長 230 萬美元，即 72%。本季度調整後毛利率為 36%，比去年同期增長 5.4 個百分點，比 2023 年第一季度增長 13.1 個百分點。毛利率的改善很大程度上是由於實現了更高的利用率我們之前談到過，我們的患者招募工作速度加快了。

Moving over to SG&A. So in general and administrative expenses, excluding $3.6 million of stock-based compensation and depreciation, we're $13.1 million in the second quarter. This was down $9.3 million or more than 40% compared to the same period from last year and down $2.5 million or 16% sequentially. Much of our improvement in SG&A was the result of implementing our offshore centers of excellence strategy, which we announced in April in addition to setting costs that don't support our Metasite strategy.

轉向 SG&A。因此，在一般和管理費用方面，不包括 360 萬美元的股票薪酬和折舊，第二季度的費用為 1,310 萬美元。與去年同期相比減少 930 萬美元，即 40% 以上，比上一季度減少 250 萬美元，即 16%。我們在 SG&A 方面的改進很大程度上是實施我們的離岸卓越中心戰略的結果，我們在 4 月份宣布了該戰略，此外還設定了不支持我們的 Metasite 戰略的成本。

For perspective, the second quarter of 2023 marks nearly 50% reduction in our overall cost basis, which we define as the difference between revenue and adjusted EBITDA compared to the fourth quarter of 2021, which was our first quarter operating as a public company. So as planned, we've made significant strides in taking costs out of the business as we move forward towards a path to profitability.

從長遠來看，2023 年第二季度我們的總體成本基礎下降了近50%，我們將其定義為與2021 年第四季度（我們作為上市公司運營的第一季度）相比收入與調整後EBITDA之間的差額。因此，按照計劃，隨著我們朝著盈利之路前進，我們在降低業務成本方面取得了重大進展。

Adjusted EBITDA, which we calculate by adding back depreciation, amortization, taxes, interest, other incomes, stock-based compensation, and other non-cash charges with a loss of $7.6 million in the quarter, representing $8.9 million or 54% improvement compared to the same period in the prior year and $4.8 million or 39% sequential improvement. This is our best quarterly adjusted EBITDA performance in two years.

調整後 EBITDA，我們通過加回折舊、攤銷、稅收、利息、其他收入、股票薪酬和其他非現金費用來計算，本季度虧損 760 萬美元，相當於 890 萬美元，比上年同期提高 54%與去年同期相比，環比增長480 萬美元，即39%。這是我們兩年來最好的季度調整後 EBITDA 業績。

Consistent with the factors we cited on our first quarter earnings call, US GAAP required us to record a noncash impairment charge of $5.7 million related to our long-lived assets in the second quarter. Among other things, this continues to be a result of our market capitalization, which was less than the cash and book value for a sustained period of time. This is an accounting assessment and does not reflect our view of the value of the platform or its longer-term potential.

與我們在第一季度財報電話會議上引用的因素一致，美國公認會計準則要求我們在第二季度記錄與長期資產相關的 570 萬美元非現金減值費用。除其他因素外，這仍然是我們的市值持續低於現金和賬面價值的結果。這是一項會計評估，並不反映我們對該平台價值或其長期潛力的看法。

On the US GAAP net loss basis, second quarter represented $19.6 million loss versus a GAAP net loss of $5.8 million in second quarter a year ago. The adjusted net loss for the second quarter of 2023 was $7.7 million, which compared to an adjusted net loss of $20.9 million in the same period last year.

根據美國 GAAP 淨虧損計算，第二季度虧損 1,960 萬美元，而去年同期第二季度 GAAP 淨虧損為 580 萬美元。 2023年第二季度調整後淨虧損為770萬美元，而去年同期調整後淨虧損為2090萬美元。

Now turning to cash. We ended the quarter with $65 million in cash and cash equivalents. In the second quarter our cash burn, which is the difference in balance sheet, cash, and cash equivalents from March 31 to June 30 was approximately $17.6 million. This included $3.1 million approximately in one-time costs such as cash payments related to previously announced restructuring actions. Cash burn, excluding these items, was approximately $14.5 million, which is a sequential improvement of greater than $5 million versus the first quarter of 2023.

現在轉向現金。本季度結束時，我們擁有 6500 萬美元的現金和現金等價物。第二季度我們的現金消耗（即 3 月 31 日至 6 月 30 日期間資產負債表、現金和現金等價物的差異）約為 1,760 萬美元。其中包括約 310 萬美元的一次性成本，例如與先前宣布的重組行動相關的現金支付。不包括這些項目的現金消耗約為 1,450 萬美元，與 2023 年第一季度相比連續改善超過 500 萬美元。

Now let's turn to the outlook for 2023. As David noted previously, given our stronger than expected gross bookings, RFP volume increases and some positive tailwinds from the recent FDA preliminary guidance documents. We are updating our full year 2023 revenue guidance from the previous range of $55 million to $60 million to the top end of that range, approximately $60 million.

現在讓我們展望 2023 年。正如 David 之前指出的，鑑於我們的總預訂量強於預期、RFP 量增加以及近期 FDA 初步指導文件帶來的一些積極推動作用。我們正在更新 2023 年全年收入指引，從之前的 5500 萬美元至 6000 萬美元範圍調整為該範圍的上限，即約 6000 萬美元。

We expect third-quarter revenues to be roughly flat or potentially even a little lighter than the second quarter as we accelerated some of our third-quarter backlog into the second quarter through better patient recruitment velocity. And we expect our fourth quarter to be sequentially higher on a revenue basis based on the timing of our new study starts and project ramps. While we will hold off providing 2024 guidance until later date, given our current momentum and visibility, we expect solid continuing revenue growth in 2024.

我們預計第三季度的收入將大致持平，甚至可能比第二季度略少，因為我們通過更快的患者招募速度將第三季度的一些積壓工作加速到了第二季度。根據我們新研究的啟動時間和項目的進度，我們預計第四季度的收入將連續上升。雖然我們將推遲提供 2024 年指導，但鑑於我們目前的勢頭和知名度，我們預計 2024 年收入將持續穩健增長。

Turning to our gross margin guidance, we indicated during our last quarterly earnings call that we expected adjusted gross margins to improve from the low 20% range in the first quarter of 2023 to the low-to-mid 30% range in the second half of 2023. We achieved the top end of that range at 36% in the second quarter, and we expect to stay in the mid 30% range for the remainder of this year.

談到我們的毛利率指引，我們在上一季度財報電話會議上表示，我們預計調整後的毛利率將從2023 年第一季度的20% 低水平提高到2023 年下半年的30% 中低水平。 2023 年。我們在第二季度實現了 36% 的上限，預計今年剩餘時間將保持在 30% 的中間水平。

In the first-quarter earnings call, we also indicated, we expected to see a sequential reduction in SG&A and a more dramatic reduction in cash burn, exiting the fourth quarter with a cash burn of less than $10 million. As David noted, we are tracking ahead of this from an expectation standpoint and now anticipate our cash burn in the third quarter to be less than $10 million, one quarter ahead of schedule. We expect our cash burn for the full second half of 2023 to be less than $50 million, thus exiting 2023 with more than $50 million of cash on hand.

在第一季度的財報電話會議上，我們還表示，我們預計 SG&A 會連續減少，現金消耗也會大幅減少，第四季度結束時現金消耗將低於 1000 萬美元。正如 David 指出的那樣，我們從預期的角度跟踪這一情況，現在預計第三季度的現金消耗將低於 1000 萬美元，比原計劃提前了四分之一。我們預計 2023 年下半年的現金消耗將低於 5000 萬美元，因此 2023 年結束時手頭現金將超過 5000 萬美元。

As we progress into 2024, we expect our investments in technology further increases in utilization and continued process improvements, help us expand quarterly gross margins to 40% or greater, delivering a higher gross profit on a relatively fixed level of SG&A and thereby ending the fourth quarter of 2024 with positive adjusted EBITDA and cash flow, exiting that year with ample cash on hand without needing to have raised additional capital.

隨著我們進入2024 年，我們預計我們對技術的投資將進一步提高利用率並持續改進流程，幫助我們將季度毛利率擴大到40% 或更高，在相對固定的SG&A 水平上實現更高的毛利潤，從而結束第四個季度2024 年第四季度，調整後的 EBITDA 和現金流為正值，當年退出時手頭有充足現金，無需籌集額外資本。

In summary, we are encouraged by our second-quarter 2023 gross bookings and cost initiatives. Going forward, we are optimistic as we march down the path towards profitability. At this point, I'd like to turn the call back over to David for closing comments.

總之，我們對 2023 年第二季度的總預訂量和成本計劃感到鼓舞。展望未來，我們對走向盈利之路持樂觀態度。此時，我想將電話轉回給大衛以徵求結束意見。

Thank you, Mike. We've been highly intentional with our strategy and have been explicit on these calls about our intentions. Our strategy and the actions we've taken are clearly having the desired results, and we're pleased with the recent outcomes and business momentum. We're optimistic about the future and are on track to reach our financial goal of adjusted EBITDA and cash flow positive by the end of the fourth quarter 2024 without having to raise additional capital. With that, we'll now open it up for questions.

謝謝你，邁克。我們的戰略非常有針對性，並且在這些電話中明確表達了我們的意圖。我們的戰略和我們採取的行動顯然達到了預期的結果，我們對最近的成果和業務勢頭感到滿意。我們對未來持樂觀態度，並有望在 2024 年第四季度末實現調整後 EBITDA 和現金流為正的財務目標，而無需籌集額外資金。現在，我們將開放提問。

(Operators Instructions) Charles Rhyee, Cohen & Company.

（操作員說明）Charles Rhyee, Cohen & Company。

Yes, thanks. This is Charles from TD Cowen. Guys, congrats on the acceleration here, and it looks like things are starting to improve. And I guess to start with is, if we think about -- in the past, you talked about that deals were taking longer, and the sales cycle was stretching. These gross bookings that's accelerating that we're starting to see now, is that a signal that we've kind of anniversaried this lengthening sales cycle or are sales cycle starting to shorten again? Maybe you can talk through sort of what the market dynamics that you're seeing?

對了謝謝。我是 TD Cowen 的查爾斯。伙計們，恭喜這裡的加速，看起來事情開始好轉了。我想首先，如果我們考慮一下——過去，您談到交易需要更長的時間，並且銷售週期正在延長。我們現在開始看到的總預訂量正在加速增長，這是一個信號，表明我們已經迎來了銷售週期延長的周年紀念日，還是銷售週期開始再次縮短？也許您可以談談您所看到的市場動態？

Yeah, I don't think we really see much change, to be honest, in the length of the sales cycle, frankly. It's still long. And I've talked about that being the new normal in our past calls, and I still think that that's true.

是的，坦率地說，我認為我們在銷售週期的長度方面並沒有真正看到太大的變化。還很長。我在過去的電話中談到過這是新常態，我仍然認為這是事實。

Good news is that our RFP volume is increasing. I talked about in the prepared remarks, over 50%. That's up from first quarter. I talked about 25% increase in our RFP dollar volume.

好消息是我們的 RFP 數量正在增加。我在準備好的發言中談到了，超過50%。這比第一季度有所上升。我談到我們的 RFP 金額增加了 25%。

So we're seeing an acceleration in our peak dollar volume, but that sale cycle still has to kick in. So I think that hopefully will provides you a little bit of perspective. It is the new normal I think for us.

因此，我們看到美元交易量峰值正在加速，但銷售週期仍需啟動。因此，我認為這有望為您提供一些視角。我認為這對我們來說是新常態。

Okay. That's helpful. And then in terms of this higher RFP volume, can you talk through what are sponsors seeking from you guys to specifically help with it? Is it really just -- is it Metasite? Is there any kind of full PCC trials being given to you? Maybe give us a sense for what the mix looks like.

好的。這很有幫助。然後，就更高的 RFP 數量而言，您能否談談贊助商正在向你們尋求什麼特別幫助？它真的只是——Metasite 嗎？是否有任何形式的完整 PCC 試驗提供給您？也許能讓我們了解混合的樣子。

Yeah. Back to date that we brought in Michael Shipton to run the commercial shop for us, we made the decision to be super intentional about Metasite as our key value proposition and we're really single minded in that. Now, we also made the attention to also dig into the CRO channel and the RWE channels in particular. And so we're seeing an uptick in both of those different areas as well as we continue our partner strategy, continue thinking about the value proposition of the Metasite in the real-world evidence around.

是的。到目前為止，我們聘請了 Michael Shipton 來為我們運營商業商店，我們決定將 Metasite 作為我們的關鍵價值主張，並且我們對此一心一意。現在，我們還特別關注了 CRO 渠道和 RWE 渠道。因此，我們看到這兩個不同領域的增長，並且我們繼續我們的合作夥伴戰略，繼續思考 Metasite 在現實世界證據中的價值主張。

I want to talk about Metasite, it's my understanding, correct me if I'm wrong, right. As far as you could still pick certain elements of your platform to supplement what they're doing or take lots of parts at once, can you give a sense, are there any particular areas of the platform that you're particularly focused on asking you guys to help with versus other parts that -- is there any kind of preference one way or the other?

我想談談Metasite，這是我的理解，如果我錯了，請指正，對。至於您仍然可以選擇平台的某些元素來補充他們正在做的事情或一次採取很多部分，您能否說明一下，您特別關注平台中是否有任何特定領域與其他部分相比，幫助的人- 是否有某種偏好？

It's really bringing us in as a virtual site. So supplementing what they may have with a traditional site network or acting as a single site in order to be able to enroll the entire trial. Ultimately, the value proposition comes down to faster enrollment, greater diversity, and a more patient friendly experience.

它確實將我們引入了一個虛擬站點。因此，通過傳統站點網絡補充他們可能擁有的內容或充當單個站點，以便能夠註冊整個試用。最終，價值主張歸結為更快的註冊、更大的多樣性和更患者友好的體驗。

Okay, great. Mike, please wanted to ask you, just to clarify, you said that in the backlog, there's $8 million left of COVID related work. And then you mentioned another $25 million of ongoing project that's -- can you clarify what the $25 million refers to? And I guess the question is, any reason not to just kind of take a charge against that because chances are that might probably not happen?

好的，太好了。邁克，想問你一下，只是為了澄清一下，你說在積壓的工作中，還剩下 800 萬美元的新冠病毒相關工作。然後您提到了另一個 2500 萬美元正在進行的項目——您能澄清一下這 2500 萬美元指的是什麼嗎？我想問題是，有什麼理由不去對此提出指控，因為這可能不會發生？

Yeah, sure. So thanks, Charles. I mean, I think as it relates to the $25 million, just to be super clear, like all companies in this space, we do monitor the entire portfolio going through project by project on a monthly basis. As part of that, you identify those opportunities where there might be a faster burn, and you also identify those opportunities where the burn might be slower, or the project might be at risk?

好，當然。謝謝，查爾斯。我的意思是，我認為這與 2500 萬美元有關，非常明確的是，就像這個領域的所有公司一樣，我們確實每月按項目監控整個投資組合。作為其中的一部分，您確定了那些可能會更快燃燒的機會，並且您還確定了那些燃燒可能較慢的機會，或者項目可能面臨風險？

What we are attempting to do in terms of the prepared remarks is to identify that there's about $25 million in the aggregate that spans over multiple years that we have on our watchlist that we're monitoring. That doesn't necessarily mean that will be canceled, doesn't necessarily mean that sort of thing, but rather as we look at the business in the portfolio, those in the aggregate are roughly what we're seeing on the monitor list. That being said, our updated guidance takes the risk-adjusted view there of those opportunities. And so from our perspective, we think we've de-risked the revenues in the near term related to those specific projects.

根據準備好的評論，我們試圖做的是確定我們正在監控的觀察名單上的多年來的總金額約為 2500 萬美元。這並不一定意味著將被取消，也不一定意味著這類事情，而是當我們查看投資組合中的業務時，這些業務的總體大致就是我們在監控列表中看到的。話雖這麼說，我們更新後的指引對這些機會採取了風險調整後的觀點。因此，從我們的角度來看，我們認為我們已經降低了短期內與這些特定項目相關的收入風險。

Frank Takkinen, Lake Street Capital Markets, LLC.

Frank Takkinen，湖街資本市場有限責任公司。

Great. Thanks for taking the questions, and congrats on the progress in the quarter. David, I think I heard in a comment that you expect second-half bookings to be stronger than first-half bookings. I was hoping you could clarify whether that was in relation to gross or net. And then if you could, it's the word net, talk to the likelihood of peering over that 1x book to bill as we exit the year.

偉大的。感謝您提出問題，並祝賀本季度取得的進展。大衛，我想我在評論中聽到您預計下半年的預訂量將強於上半年的預訂量。我希望你能澄清這與總額還是淨額有關。然後，如果可以的話，那就是“網絡”這個詞，談談在今年結束時瀏覽那本 1 倍書來計費的可能性。

I know you mentioned that there was some seasonality in there. Q4 is going to be likely strongest from a bookings' perspective, but I don't think you've spoke to the revenue recognition expectations Q3 versus Q4 to-get to that guided range?

我知道你提到那裡有一些季節性。從預訂的角度來看，第四季度可能是最強勁的，但我認為您沒有談到第三季度與第四季度的收入確認預期，以達到該指導範圍？

Well, thanks for the question, Frank. We do expect to see sequential growth in bookings for the second half than relative to the first. I'm talking about in terms of gross bookings. We'll get to the net in a second.

嗯，謝謝你的提問，弗蘭克。我們確實預計下半年的預訂量將比上半年連續增長。我說的是總預訂量。我們很快就會上網。

Yes, I believe there will be seasonality associated with that. Third quarter is traditionally, given holidays, and we're not a lower volume quarter than the fourth, so expect it to be back and weighted combination of the two quarters. I expect that to be larger than the first and the second quarter.

是的，我相信會有與之相關的季節性。傳統上，第三季度是假期，而且我們的銷量並不比第四季度低，因此預計它會回歸併加權兩個季度的組合。我預計這一數字將大於第一季度和第二季度。

In terms of net adjustments, still to be determined. I think what we try to provide in our prepared remarks were some things that we're looking at that might provide some risk to that. I don't suspect that all of that will come through, but it's possible that it does. So I'm trying to telegraph a little bit for you as Keith does. So we're looking at as you're preparing your models as well.

就淨調整而言，仍有待確定。我認為我們在準備好的發言中試圖提供的是我們正在考慮的一些事情，這些事情可能會帶來一些風險。我不懷疑所有這些都會發生，但有可能發生。所以我想像基思那樣向你傳達一點信息。因此，我們也在關注您準備模型的情況。

And if I could add one thing to that just to be clear, consistent with our documented backlog policy, we would not typically remove the project until we receive the formal cancellations.

如果我可以添加一件事來澄清，與我們記錄的積壓政策一致，我們通常不會刪除該項目，直到我們收到正式取消。

In terms of second part of that question was about revenue recognition for the second half of the year, we do expect full year to come in aligned around $60 million, which represents a slight uptick from the first half of the year. Certainly back-end weighted as well. I think what Mike had said is that we're more likely to be flat in revenue for the third quarter.

就該問題的第二部分而言，我們預計全年收入將在 6000 萬美元左右，比上半年略有上升。當然後端加權也是如此。我認為邁克所說的是我們第三季度的收入更有可能持平。

It may actually even come down a little bit in the third quarter, but in total, we expect second-half revenues to be higher. And the reason for that, I think we just had a really strong second quarter in terms of accelerating revenue. And if all goes well, we'll continue to accelerate revenue as third and fourth quarter continue.

實際上，第三季度甚至可能會略有下降，但總的來說，我們預計下半年收入會更高。原因是，我認為我們第二季度在收入加速增長方面表現非常強勁。如果一切順利，我們將在第三季度和第四季度繼續加速收入增長。

Okay. That's helpful. And maybe just one follow-up to Charles' question on the $25 million in aggregate over multiple years, can you parse out what portion of that is COVID related?

好的。這很有幫助。也許只是查爾斯提出的關於多年來總計 2500 萬美元的問題的一個後續問題，你能分析出其中哪一部分與新冠病毒相關嗎？

Yeah. So we talked about $8 million that was COVID related sort of separate and distinct from $25 million. So if you want to sort of outline the COVID risk mitigation is $8 million, which is separate and distinct from the $25 million.

是的。因此，我們討論了與新冠病毒相關的 800 萬美元，與 2500 萬美元不同。因此，如果您想大致了解一下，緩解新冠病毒風險的金額為 800 萬美元，這與 2500 萬美元是分開且不同的。

Got it. Okay. And then last one for me. Just in relation to broader macro, any pockets of particular strength or weakness across different customer profiles that you guys are noticing.

知道了。好的。然後是我的最後一張。就更廣泛的宏觀而言，你們注意到的不同客戶資料中的任何特定優勢或劣勢。

And I don't know if there's anything that really pops out at me except for maybe CROs where we seem to be getting a lot more traction, and it makes sense. If you think about it when we set out with the intention to be really intentional in regard to the Metasite model, we're just another site in the CRO world, which I think slots in really nicely to what they're trying to do. So we do see an uptick there, CROs. We continue to see some strength even in small pharma as well.

我不知道是否有什麼東西真正讓我感興趣，除了 CRO 之外，我們似乎獲得了更多的關注，而且這是有道理的。如果你想一想，當我們開始真正有意地對待 Metasite 模型時，我們只是 CRO 世界中的另一個網站，我認為這非常適合他們正在嘗試做的事情。因此，我們確實看到了 CRO 的增長。即使在小型製藥公司中，我們也繼續看到一些優勢。

Max Smock, William Blair.

馬克斯·斯莫克，威廉·布萊爾。

Hey, it's Christine Rains on for Max Smock. Thanks for taking our questions. The first one is, last quarter you indicated that repeat customers accounted for 80% of your total gross bookings. Just curious on what this repeat percentage was this quarter and just your overall strategy to increase wins with new customers. Relatedly, how much of a cross-selling opportunity do you see with your existing customers and given that you're leaning into areas like real-world evidence to see your average number of solutions your customers currently use and what you're targeting there?

嘿，我是克里斯汀·雷恩斯 (Christine Rains) 飾演馬克斯·斯莫克 (Max Smock)。感謝您回答我們的問題。第一個是，上個季度您表示回頭客佔您總預訂量的 80%。只是好奇本季度的重複百分比是多少，以及您增加贏得新客戶的總體策略。與此相關的是，考慮到您正在依靠現實世界證據等領域來了解客戶當前使用的解決方案的平均數量以及您的目標是什麼，您認為現有客戶有多少交叉銷售機會？

Yeah, so this quarter we had -- was predominantly new customers actually, and one very large new customer, which we're excited about. So over the last 12 months, it's more like 50-50 new versus existing customers. And I think it's pretty good mix as we grow.

是的，所以這個季度我們主要是新客戶，實際上是一個非常大的新客戶，我們對此感到興奮。因此，在過去 12 個月中，新客戶與現有客戶的數量分別為 50-50 名。我認為隨著我們的成長，這是一個非常好的組合。

I'd like to see it that way. But super happy to see the traction with new customers. And that, again goes back to the work that Michael has put in place in terms of inside sales, expanding the network of who we're talking with, and providing our BD organization with more leads that can ultimately turn into sales.

我希望看到這樣的情況。但非常高興看到新客戶的吸引力。這又回到了邁克爾在內部銷售方面所做的工作，擴大了與我們交談的人的網絡，並為我們的 BD 組織提供了更多最終可以轉化為銷售的潛在客戶。

Yeah, in terms of the composition of work, we're really -- we're staying super focused on the Metasite, and expanding that with our existing customers continues to be our focus. It happens to lend itself well to RWE, as you know, in the rural space that could become the graduation from a Phase 3 study into a Phase 4 study. And so we'd like that opportunity there with our existing base.

是的，就工作構成而言，我們確實非常專注於 Metasite，並且通過現有客戶擴展它仍然是我們的重點。如您所知，它恰好非常適合 RWE，在農村地區，可以從第三階段研究過渡到第四階段研究。因此，我們希望在我們現有的基礎上有這樣的機會。

Great, thanks. And then just last one for us, can you just walk through your current backlog visibility? What's the average duration of contracts you've been awarded? So kind of excluding that, roughly $32 million of backlog that's most vulnerable to amendments. Are you seeing any notable shift towards winning bigger or longer duration contracts? Just trying to get a sense of your visibility into top-line growth for 2024.

萬分感謝。最後一個問題是，您能瀏覽一下當前的待辦事項列表可見性嗎？您獲得的合同的平均期限是多少？因此，排除這一點，大約 3200 萬美元的積壓訂單最容易受到修改。您是否看到了贏得更大或更長期限合同的顯著轉變？只是想了解一下您對 2024 年營收增長的了解。

I'll talk about the contracts, and maybe you talk about the backlog, Mike. So contract size does continue to increase in our pipeline, which is exactly what we hoped for because we're adding more value, we can contribute the larger patient volumes and what we treated in the past, which is going to ultimately drive that larger dollar volumes. So definitely seeing that.

我會談論合同，也許你會談論積壓，邁克。因此，我們的管道中的合同規模確實在繼續增加，這正是我們所希望的，因為我們正在增加更多的價值，我們可以貢獻更大的患者數量和我們過去治療的內容，這最終將推動更大的美元卷。所以肯定看到了。

Yeah, and I think as it relates to duration and so on, the wildcard here is how much, as David mentioned, we're seeing more demand on the real-world evidence side. Those tend to be longer in durations. But in terms of what's currently in the backlog, not a material change from where we've been historically from a burn perspective.

是的，我認為，由於它與持續時間等相關，這裡的通配符是，正如大衛提到的，我們看到對現實世界證據方面的更多需求。這些往往持續時間更長。但就目前積壓的情況而言，從燃燒的角度來看，與我們歷史上的情況相比並沒有發生重大變化。

Matthew Hewitt, Craig-Hallum Capital Group.

馬修·休伊特，克雷格-哈勒姆資本集團。

Good morning and congratulations on the progress. Maybe one point of clarification. So you're seeing an increase in RFP dollar volume. One of the things we've been hearing from other pharma and biotech service providers here over the past quarter or two is that there's been a shift in priorities from their pipelines where they're shifting more of their resources, more attention towards later-stage clinical trials.

早上好，祝賀取得的進展。也許需要澄清一點。因此，您會看到 RFP 金額有所增加。在過去一兩個季度中，我們從其他製藥和生物技術服務提供商那裡聽到的一件事是，他們的管道的優先事項發生了轉變，他們正在將更多的資源轉移到後期階段臨床試驗。

Is that what you're also seeing? Is that what's driving the increased RFP dollar volume as maybe a lack of earlier stage programs? In return, you're getting these later-stage larger programs, and that's what's feeding the backlog?

這也是你所看到的嗎？這是否是由於缺乏早期項目而導致 RFP 金額增加的原因？作為回報，您將獲得這些後期的大型項目，這就是積壓的原因？

I'm not sure how much of that is a function of what we're fishing for versus what's materializing in priorities on the pharma side. Because as I had noted that when Michael started about nine months ago, it's pretty declarative about RWE is in a good spot for us. And so we've really positioned that amongst our sales organization to push in that direction.

我不確定其中有多少是我們所追求的目標與製藥方面優先實現的目標的函數。因為正如我所指出的，當邁克爾大約九個月前開始工作時，就非常明確地表明 RWE 對我們來說處於有利位置。因此，我們確實在我們的銷售組織中定位了這一點，以推動這個方向。

So we're definitely seeing a movement from sort of the evolution of the company. We used to be very, very heavy in Phase 2. So now we're seeing a lot more Phase 3s and 4s.

因此，我們肯定會看到公司發展過程中的一些變化。我們曾經在第二階段非常非常繁重。所以現在我們看到更多的第三階段和第四階段。

Got it. And then I realize it's very early days, but given the FDA potential mandate for diversity and whatnot, are you starting to have conversations? Are customers coming to you bringing that up? And are you starting to see that maybe as a little bit of a driver? Thank you.

知道了。然後我意識到現在還為時過早，但考慮到 FDA 潛在的多樣性授權以及諸如此類的問題，你們是否開始進行對話？客戶會向您提出這個問題嗎？您是否開始認為這可能是一個司機？謝謝。

I would say the guidance on diversity is just starting to -- it'll be part of the conversation for real. And I think that -- back when that came out, it was interesting. But I think that it's starting to be a little bit of a reaction that we need to do something, we being sponsors to be able to do something different, which is a little bit different from the decentralized clinical trial guidance, which I think was a little bit more of a revelation. And they gave them permission to execute decentralization versus they may have been holding back in the past. So I think the two of them are starting to become hand-in-hand pushing some good tailwinds for us.

我想說，關於多樣性的指導才剛剛開始——它將成為真正對話的一部分。我認為，當它問世時，這很有趣。但我認為我們開始有點反應，我們需要做一些事情，我們作為贊助商能夠做一些不同的事情，這與分散的臨床試驗指南有點不同，我認為這是一個更多的是一個啟示。他們允許他們執行權力下放，而他們過去可能一直在猶豫。因此，我認為他們兩個開始攜手並進，為我們帶來一些有利的推動力。

That's great. Thank you.

那太棒了。謝謝。

Thanks, Matt.

謝謝，馬特。

Thank you. There are no further questions at this time. I would like to turn the floor back over to David Coman, Chief Executive Officer for closing comments.

謝謝。目前沒有其他問題。我想請首席執行官戴維·科曼 (David Coman) 發表結束評論。

Well, thanks for the questions today. We'll let you cut it off for now. I appreciate all the questions, and we'll talk to you again in the quarter. Thank you.

嗯，謝謝你今天的提問。我們會讓你暫時切斷它。感謝您提出所有問題，我們將在本季度再次與您交談。謝謝。

The conference has now concluded. You may disconnect your lines at this time. Thank you for your participation.

會議現已結束。此時您可以斷開線路。感謝您的參與。