MDxHealth SA (NASDAQ:MDXH) Q4 2023 Earnings Call Transcript

Mark Massaro: Okay, great. And then as we’re thinking about tuning up our models that the 2024 revenue guidance is looking for 12% to 15% top line. Is it fair for us to assume mostly volume growth for the year? Are there certain tests that you might see some ASP expansion? I know Select is pretty not quite achieve maturity yet. So, how should we just think about that volume versus price dynamic?

Michael McGarrity: Yes, I think you’re right in your assumption. Volume drives the majority of our growth projection. We tend to lean on ASP as a — I don’t want to say upside, but support for that growth. But we expect our sales team to drive the growth that you’re referring to through straight adoption from our customer base and their expectations individually and as a group read on that.

Mark Massaro: Okay, great. And then if I’m looking at the numbers correctly, it looks like the OpEx came in at around $71 million for the year. I believe that’s a 25% growth year-over-year. How should we be thinking about OpEx in 2024? And then maybe just sort of reconciling, I think you were at a $10 million use of cash. You’ve got $22 million on the balance sheet. Just help me think about cash utilization in 2024?

Michael McGarrity: Yes. So, Ron can comment on your OpEx number. I think that’s a little high with what we reported. But to your question, we’re confident that we can hold the OpEx here, as I noted going forward — sorry, Mark, the second part of your question was? Forgive me.

Mark Massaro: Yes, the cash utilization for the year, I know that you’ve talked about getting to adjusted EBITDA and profitability in the first half of the 2025, but help us walk through to that?

Michael McGarrity: Yes. So, I think my comment there, Mark, would be, look, we want to be smart and prudent with our balance sheet. And I would just say that we have — we believe we have optionality there to continue to fund the business and fund our growth as we go forward and it’s probably as specific as I’ll get. I mean, we have access to additional debt and we’re confident that we’ll keep the company in a strong position here as we go forward to drive continued growth.

Mark Massaro: All right. That’s it from me. Thanks guys.

Michael McGarrity: Mark, thank you.

Operator: Thank you. And we have reached the end of our Q&A session. Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.

Michael McGarrity: Thanks Ludie.