Science 37 Holdings, Inc. (NASDAQ:SNCE) Q2 2023 Results Conference Call August 8, 2023 8:30 AM ET

Company Participants

Steven Halper - LifeSci Advisors

David Coman - CEO

Mike Zaranek - CFO

Conference Call Participants

Frank Takkinen - Lake Street Capital Markets

Christine Rains - William Blair

Matt Hewitt - Craig-Hallum Capital Group

Operator

Greetings, and welcome to the Science 37 Second Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Steven Halper LifeSci Advisors. Please go ahead.

Steven Halper

Thank you, Annan, 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. 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 of 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 a discussion of these risk factors, including in the Risk Factors section of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and 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. 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 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?

David Coman

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 medicate 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. 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 margins are more than 13 percentage points higher. EBITDA is nearly 40% better and our cash burn is more than 30% lower. 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 best activity, and we were only compensated when sites used our services.