MDxHealth SA (OTC:MXDHF) Q2 2023 Earnings Call Transcript August 23, 2023 4:30 PM ET

Company Participants

Michael McGarrity - Chief Executive Officer

Ron Kalfus - Chief Financial Officer

Conference Call Participants

Dan Brennan - TD Cowen

Andrew Brackmann - William Blair

Jason Bednar - Piper Sandler

Thomas Vranken - KBC Securities

Francois Brisebois - Oppenheimer & Co

Operator

Greetings, and welcome to MDxHealth's 2023 Q2 and Midyear Earnings Call. [Operator Instructions]. As a reminder, this conference is being recorded.

Before we begin, I would like to remind everyone that we will make forward-looking statements during today's call. Whether in prepared remarks or during the Q&A session, these forward-looking statements are subject to inherent risks and uncertainties. These risks and uncertainties are detailed in the Risk Factors section of our filings with the Securities and Exchange Commission, specifically in the company's annual report on Form 20-F.

It is now my pleasure to introduce Michael McGarrity, Chief Executive Officer. Thank you. You may begin.

Michael McGarrity

Thanks, Doug. And thank you all for joining us for our 2023 Q2 and midyear earnings conference call for MDxHealth. With me today is Ron Kalfus, Chief Financial Officer.

Following our strong first quarter results, our second quarter results further reflect our commitment to all stakeholders to delivering strong and sustainable growth. Our results and commitment, as always, are rooted in a consistent and unwavering focus on operating discipline and commercial execution.

Our efforts to drive growth are reflected in our expanded menu that now consists of three tests for prostate cancer. At the three key decision points in the diagnostic pathway for urologists and patients, all of which are now covered by Medicare and included in the NCCN guidelines.

In addition, we are seeing increasing demand for our Resolve mdx test for urinary tract infections, which was launched in 2022. As we anticipated, Resolve mdx is providing another source of consistent growth and expanding adoption based on its clinically actionable diagnostic results and the strength of our sales channel into urology.

We believe our results also reflect a unique balance of menu and excellence in laboratory service as well as significant leverage in our P&L to take the company to operating profitability and value creation for, again, all of our stakeholders.

Evidence of our belief is based on the following: our Q2 2023 revenue grew by 143% over Q2 2022. And when excluding the acquisition of GPS, our revenue increased 29%. We continue to execute on our integration of the GPS business. Specifically, we have completed the restructuring and integration of our sales team and are confident that this acquisition will make a significant contribution to our revenue growth, gross margin accretion, and path to profitability, which is consistent with our original thesis on the test fit within our business.