Q3 2021 Science 37 Holdings Inc Earnings Call
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[music].
Good morning, and welcome to Science Thirty-seventh 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'd now like to turn the call over to care of lean Paul Investor Relations for a few introductory comments.
Thank you and thank you all for participating in today's call.
With me are David Cohen, Chief Executive Officer, and Mike <unk>, Chief Financial Officer.
Earlier today, Brian 37, released financial results for the quarter ended September 30 F. 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 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 a discussion of these risk factors, including our quarterly report on Form 10-Q for the quarter ended September 32021, 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 the most comparable GAAP measures can be found in our SEC filings and our earnings materials are available on the Investor Relations portion of our website at investors <unk> signed 37 Dot com.
I would now like to turn the call over to David Colman.
Thanks, Kurt and good.
Good morning, everyone and thanks for joining US welcome to signed 37 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 32021.
As many of you know we entered the public markets on October seven and raised approximately $235 million in net proceeds, which we plan to deploy to support our decentralized clinical trial technology platform extend into new Adjacencies and power. The next generation of clinical research.
As this is our first earnings call as a public company I.
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 <unk>, Our Chief Financial Officer.
We provide more detail on our financial results during this period.
I will then wrap up.
And open up the call for questions.
Thanks to 87.
Is disrupting a very large 195 billion dollar 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.
Meaning it is reliant on the physical clinical research sites for trial execution.
Each of these site networks.
Its own people processes and technology trading disparity and 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 effect.
On the provider side establishing.
The infrastructure required to become a traditional clinical trial site is typically costly and complex.
As a result.
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 upper approached about joining a clinical trial.
In the end approximately 85% of trials experienced delays.
Patient dropout rates are 20% to 30% and people of color are represented at about one third of the rate of the actual population.
Creating not only a social issue, but an important scientific one.
37, <unk> 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.
Which the industry Standardizes.
<unk> set an 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.
Hello, Medicine, 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 our fragmented site network.
And connected devices to collect a diverse range of data types.
Utilizing this more patient centric approach. The same 37 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 with color matching the representation of the real population.
To date we.
We've conducted more than 100 centralized clinical trials and.
And we have engaged approximately 475000 patients in the process.
We currently provide three offerings.
Each of which are underpinned by the signed 37 technology platform.
The first of which is full the centralized clinical trial.
Our 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 mega site in <unk>.
Which we act as a virtual site to supplement our network of traditional sites.
We leverage our technology platform and orchestrates a clinical trial, but are responsible for a portion of the total patients associated with a clinical trial.
Meta sites are often conducted in tandem with our clinical research organization.
We have 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 your color.
Telemedicine <unk> third party integrations as part of a broader solution.
Additionally, through our tech plus offering our specialized networks can be added to the technology solutions, including patient communities for maximum 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 disease disease and everything in between.
Saint <unk> seven is commonly attributed.
As the pioneer of centralized 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 signed 37 is executing fully decentralized trials on a massive scale and today. We are conducting pivotal studies that require up to 25000 patients.
On the other end of the spectrum <unk> seven is also fully orchestrated precision medicine studies.
As recently released the same 37 operating system is currently being utilized in our 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 signed 37 operating system.
So the patient can be seen on premise.
With their current provider we.
We call this b y O I or bring your own investigator.
Or the patients can be managed fully remotely bioscience 37 investigator.
And as a result.
Three seven is making what was formerly impossible.
<unk>.
Turning to our quarterly results.
I am 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 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.
It all goes well for 2022.
We continue to make investments commercially geographically and technologically to support our growth.
We are on track to Triple our commercial sales force by year end.
And to continue to invest in our partnership channel, particularly with Crows.
Crows.
In that regard and consistent with our plans to expand geographically, we recently announced partnerships with simic and three inch Mehdi.
<unk> and <unk> are two of the largest crows in Japan.
And plan to use our operating system to execute the centralized 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.
Lisa brings more than 30 years of experience in clinical trial technology direct to patient operations and healthcare strategy. Joining most recently from <unk>, where she served as executive Vice President and product line executive.
And science 37 expands we are also focused on penetrating new verticals, including penetration into core 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 ceramic our Chief Financial Officer, then we'll return with some closing comments.
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 32021, or.
Were $14 2 million or 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.
As evidenced by the increase in our net bookings and the number of projects we're executing.
As a reminder, we derive our revenue is 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 an enhanced clinical trials.
Through our technology <unk> services E full service DCT and meta site.
In addition to revenue we also monitor net bookings as a key performance indicator.
Net bookings for the three months ended September 32021, with $35 9 million, an increase of 342% from the prior year period due to an increased demand for our offering.
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 our current scale bookings revenues and profitability can vary substantially from quarter to quarter.
Due to the timing around a limited number of contracts.
Excluding stock based compensation adjusted gross profit margin increased to 28, 4% from negative seven 8% for the quarter ended September 32020.
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 offering.
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.
<unk>, but not limited to the timing of and ramp of new projects.
As a percentage of pass through revenue and costs.
The hiring needs to deliver on our 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 head count to support significant company growth.
As well as planned investment in anticipation of the merger with life Science acquisition to Corp, or <unk>.
The increased head count led to increases in salary and benefits web services and software as well as employee recruiting cost.
We also saw increases in SG&A due to expenses associated with the <unk> merger.
Such as consulting fees.
And capitalized sales commission amortization expense due to significantly more bookings and revenues for the three months ended September 32021, compared to the same period in 2020.
Adjusted EBITDA, which we calculate by adding back depreciation amortization taxes interests 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 billion.
Impaired 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 in demand we've seen so far this year.
For the nine month period, ending September 32021, we generated $39 2 million of revenue versus $12 5 million in the same period last year. This is up 213% year over year.
And more than 165 times for full year 2020 revenue of $23 7 million.
As David mentioned, we've seen strong demand for our offering.
The year to date period ending.
September 30th 2021.
We generated over $120 million and net bookings, which is more than twice the $56 million. We generated for all of 2020 is.
It was ahead of the prior full year forecast.
Of $119 million.
As of early November our qualified sales funnel sits at a record level.
<unk> 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.
He used by our quarterly results, which exceeded our internal forecast based on this momentum we are initiating formal guidance for the full calendar year ending December 31 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 31, 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.
At 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 8-K.
Second we will file an amended super 8-K, which will contain updates to the 8-K, we filed on October 13th.
<unk> amongst other things the financial statements of legacy side, 37% with related notes and management discussion and analysis as well as related materials for the quarter ending September 32021.
Third we will file a 10-Q.
Legacy Life Science acquisition to Corp, our Outback, which is necessary since <unk> 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 <unk> 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.
Thank you Mike.
We are certainly very pleased with our results for the quarter.
As we continue to innovate deliver.
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.
<unk> patients at a higher rate reduce the patient burden incur.
Increased diversity improve compliance and generate the highest quality data from which to make drug decisions.
Science III seven makes all of this possible through one unifying technology.
And our specialized networks, they're 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 <unk> 37.
Of course passionate about our mission.
As they are professional.
Talented.
And experienced I.
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.
As a reminder to ask a question you will need to press star one on your telephone.
Sure Your question press the pound key.
So you please limit yourself to one question and one follow up question. Please standby, while we compile the Q&A roster.
Our first question comes from the line of Charles <unk> from Cowen. Your line is now open.
Yeah, Thanks, guys and David and Mike Congratulations on the quarter.
Really really strong results here and obviously, it's great to hear the momentum is going as well as you guys had hoped for here.
Having reached your sort of bookings expectations for the full year at this point already after nine months.
We are in the middle of November and understanding that there is variability and volatility in your pipeline given the relatively small size that youre still at any kind of indications you can give us here.
<unk> 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.
We continue to expect something that maybe we saw here in the third quarter.
Anything like that would be helpful.
Hi, Charles Thanks. This is Mike here I appreciate the question.
I think what we said in the in the prepared remarks.
It was the.
The qualified sales funnel sits at a record level, we're very pleased with the fact that through the first three quarters of this year.
We have exceeded was the original expectation was for the full year.
So nice momentum on that Brian.
Yes, I think we're seeing in <unk>.
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.
We think that that's a 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.
Two top 10 pharma in the quarter company 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 of the year to date number then the qualified sales funnel and sitting at a record level right now.
Great.
Well, let me let me move on them and then David maybe just a broader question here you've obviously.
Delivering a single solution that's.
Delivers all the necessarily capabilities necessary capabilities too.
Pharma partners and multiple kind of formats here.
<unk>.
If we think more broadly in the market you are seeing more and more players enter this market or larger players kind of push into it from other adjacencies, maybe give us your sense of what the competitive landscape currently it looks like and how you see yourselves positioned within it. Thank you.
Sure. Thanks for the question Charles Hope you're doing well.
Well so.
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 E consent Eco maybe a telemedicine plug in for claiming to be enabling decentralized clinical research.
Key distinction between these point solutions and executing a fully centralized clinical trial is that our tech.
Platform enables the entire workflow.
Orchestrate complete.
Essentially the clinical trial and so that includes he could sand color and we have a fully integrated telemedicine module, but also the real time engagement and coordination between the patient and telemedicine investigator the on premise investigator 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.
Most of these technology companies stop at just providing tech we believe that <unk> hundred seven 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 patients and health care.
Provider in any connected devices, which creates a really meaningful long term competitive moat.
Great. Thank you I'll jump back in the queue.
Thanks Charles.
Yeah.
Thank you. Our next question comes from the line of John Kreger from William Blair. Your line is now open.
Hi, Thanks, very much David just.
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.
You showed up in your bookings U S versus non U S.
Oh sure Yeah. Yeah. This is Mike Hi, John Thanks for the question.
I think what we what we've said today is that.
We've had good success in terms of winning global project the platform.
It has been translated into 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 from a revenue historically from a revenue perspective.
Largely USA, 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.
Now.
Within the last month or so.
Strategic partners with respect to <unk> and <unk>.
It really provides an opportunity for us to execute.
On a more global basis, particularly in the Asia Pac region.
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. So I would love to hear a little bit more detail on where the spending will happen. Thanks.
Sure. Thanks for the question John.
John So as we look at moving forward we're expanding.
Commercially geographically and technologically and so on.
On the commercial standpoint.
In the prepared.
Comments were AAA in the commercial organization.
Throughout this year.
Expect to continue to make investments in the commercial organization.
We expect to make.
Investments geographically as well and so as Mike mentioned, we just created a partnership with.
Both <unk> and <unk> Mehdi.
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 world.
Also very consistent with the commercial strategy, which is expanding into.
CRM partnerships and enabling CFO is also participating centralization as they even standard more standardized moron.
On slide 37.
And then finally technologically we're making a lot of investments in the platform ended up itself, particularly to enable workflow, which is what we.
We have I think uniquely relative to the other players in the market as I had just had referenced.
So not just the feature functionalities in order to enable the evidence generation, but really the workflow in order to enable all of the different constituents constituents to be able to interact with platform seamlessly.
Sounds good thank you.
Thanks for the question.
Thank you. Our next question comes from the line of Eric Coldwell from Baird. Your line is now open.
Thanks, very much good morning, I'm curious, if we could dig in a little bit on.
The recent CRA partnership stomach and three H could you give us a little background on how those relationships came to be where you previously working with them before formally structuring these partnerships.
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 wasn't working.
With the new CRO partner I'm, just curious how the.
The sales funnel is it coming in from them as it is it joint work how do you how do you work together to co promote and commercialize your offering.
Yes, thanks for the question I think.
Just starting with the beginning of your question, which is how did these relationships come about you know 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.
How best to penetrate that marketplace without having the infrastructure costs behind it and this is really a.
Both of these are just perfect relationships for us to be able to make that happen.
And then the reciprocity if you will.
With there.
Infrastructure rest of world It really goes.
Denmark and legs, if you will and the rest of the world plus the technology that fits and underpins everything.
It's really.
Could it be a better relationship.
In regards to.
Crows.
Great question in terms of the relationships, we have with them all of them.
Our CRM partnerships, we look at the.
Giving them the ability to supplement what is traditional clinical trial infrastructure with the centralized clinical trial infrastructure and if you think about the ways. Most heroes are structured.
They are built to be able to manage the site based network. So that's about identifying the right sites about.
Getting those sites up and running as fast as possible training those sites and monitoring all sides.
And all of the Sop.
Our design in order to make that happen.
The.
The whole thing about the partnership with.
737 zero days it gives them the opportunity to be able to participate in centralized clinical research without having to change all of the sop or the technology they already have in place.
And it really enables them to get into the white space that they don't currently have access to so if you think about it.
Traditional clinical trial were only about 5% of sites participate in clinical research and only 8% of patients are ever contacted you joined clinical research.
Good bye.
By putting 37 on top of their site network or the virtual site access to the 92% of the rest of the population that doesn't get engaged in it.
Thanks, David and Mike My follow up is shifting gears sits on its own gross margin you had already foreshadowed the quarter to quarter variance that would be expected and I think you came out above both us and the street this quarter with better better gross margin than we were anticipating.
In the third quarter Theres, a number of influences on gross margin obviously in your model you have.
The mix of work that you are selling whether it's tech license versus versus meta site you have.
Potentially variance in pass throughs, and then of course, there's the direct labor costs, which I think everybody knows labors are a challenge around the world and certainly in this industry.
I'm curious if you could give us a sense on what where 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.
And then possibly if youre willing to go that far talk about pass through in the revenue model this quarter would be great.
Sure sure. Thanks, Eric This is Mike I appreciate the question.
Youre right I mean I think.
We came in to this quarter and as we've said previously.
Are some 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 as you saw in terms of our progression with the bookings we.
We did have some good positive momentum on that we do have a number of projects.
The startup phases.
The relative percentage of passengers also can influence things.
And as it relates to the labor cost, it's not only the existing labor cost.
The new hire laboring costs too.
Ensure that we can execute on some of that momentum that we've got from a booking standpoint.
From from <unk>.
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've 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.
We underwent in Q4 of 2020, we still do have some legacy backlog associated with that $3. One in Q4 2020 pricing in place and so that continues to be a bit of an anchor on the overall gross profit margin.
Is that online 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 negotiation 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're continuing to work through that.
I think one of the things that we have seen as we've gotten a bit more scale, particularly around things like meta site, where we're going head to head with this month like based approaches.
In many cases, we can see the.
Performance relative to the traditional way of doing clinical research, but in all cases customers can see that they are being able to.
Have the data to articulate the value prop 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, because we're looking at in sourcing 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 the margin on that front.
The technology investments that we continue to make we believe we will have some efficiency going forward.
Moving from the past that historically have been manual in nature, it's more automated.
Obviously, as we drive scale and grow the business here.
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 us.
Building out our community of patients and by doing that we were able to.
Drive the cost of the patient acquisition down in some cases, so hopefully hopefully that some additional context.
Around.
That's great I'll, let I'll, let others jump in but congrats on your first public quarter. Thanks, guys.
Thanks, so much I appreciate it.
Okay.
Thank you. Our next question comes from the line of Frank <unk> from Lake Street Capital Markets. Your line is now open.
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 in 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 that trend.
Those three offerings going forward.
Sure. Thanks, Brian I 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 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.
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.
Yeah.
Okay. That's helpful. And then just the second one I wanted to speak about Covid, a little bit youre in a unique position where you both at times see nice tailwind as well as some headwinds im sure, but maybe just talk about the results in the quarter. It looks like there wasn't any headwind per se, but talk to any COVID-19 impact positive or negative that you felt you experienced in the quarter.
Yeah sure so maybe I'll start and David can work.
And on that I think I think there are two components. There are couple of components to that question.
One as.
As you look at the overall business.
What we have seen a sequential increase in revenues.
Growing year over year growth than we're forecasting for the full year.
Year over year growth of more than 125% on a revenue basis.
That's doing we're doing that in the context that most of the sites around the world are now open up from a COVID-19 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 and I think if you look at the regulatory environment and 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.
The approach we're doing clinical research.
As it relates to the specific business impact.
We did our analyst day in mid July we talked about the fact that 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.
And our qualified sales funnel, representing about 15% of the.
The overall pipe at that time, which was much smaller than where it is now by the way.
From a pipeline perspective.
You look at the.
Proportion of Covid related trial.
As we sit here today.
Sub 10%.
Not a huge business.
<unk>.
From a performance standpoint, but from a pipeline perspective, David do you want to add anything that I guess, the only thing I would say it.
<unk>.
It's really not about COVID-19 anymore.
About about delivery.
Science based haven't 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 in the beginning of the year by 75% of the bookings are from repeat business and that's all a factor of proving the model lines.
Some of the prepared notes.
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.
And then the traditional model of when we're able to bring in a more diverse patient population and so as we continue to be able to deliver and execute on a model where you continue to get repeat business and.
And beyond that.
Really changed there.
The way people think about decentralization.
Not as.
Fix it for Covid or.
Renovation, but.
Really what's happening is that.
Your shift to the centralization as an alternative model too.
Or supplement.
What youre currently doing and.
The successes we are showing.
Perfect, that's great color and I'll stop there thanks guys.
Thanks, a lot thanks, Mike.
As a reminder to ask a question you will need to press star one on your telephone to withdraw.
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So 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 Goldman for closing remarks.
Alright, 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.
We look to the future in terms of what were X.
Executing and the momentum that we have behind us and we're very excited about it.
Yes.
Thanks, again for joining us and we'll see you again on next quarter's call.
This concludes today's conference call. Thank you for participating you may now disconnect.
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