Exagen Inc. (NASDAQ:XGN) Q4 2022 Earnings Call Transcript

Operator: Thank you. And our next question is from Paul Knight with KeyBanc Capital Markets. Please proceed with your question.

Paul Knight: John, on the charge in the quarter, what’s the goal on the cost cut total for FY ’23?

John Aballi: Paul, thanks for joining. From a goal standpoint, it’s — organizationally, this is something that we’re putting in place that hasn’t been there previously. So, I don’t have a great baseline to go off of. So therefore, I hesitate to give those numbers externally. What I can tell you though is we’re very well organized in identifying and putting a process in place for future identification of projects, we think can be improved upon, and we prioritized on our software side, operational improvements to the lab. So overall, from a COGS perspective, it’s tough right now to give you the number we think we’re going to get to but it is a significant focus of ours. We do think gross margin-wise, the more sensitive lever there is ASP and we’ve walked through that at length. But I think I should know more here over the coming quarters.

Operator: There are no further questions at this time. I would like to turn the floor back over to Mr. John Aballi for closing comments.

John Aballi: Great. The fourth quarter was a fantastic finish to the year. It was incredible to see the level of engagement within the team, and that effort was reflected in our quarterly performance. I look forward to continuing to execute on our operating strategy while refining our growth initiatives and providing our progress on future calls. As we end today, I sincerely thank the Exagen team for their contributions in serving our customers, and our investors for their continued support. Thanks, everyone, for joining the call today.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.