Prashant Kota: Got it. And just lastly, any color on the sales force expansion?
Warren Stone: Yeah. So we’ve continued to expand our sales force in the latter part of Q3 and into Q4. A lot of the work we’re doing in full transparency really culminates into the sort of redeployment that we’re kicking off very early in 2024 that will position us to continue the momentum that we’ve experienced in 2023 thus far.
Prashant Kota: Got it. Thanks guys.
Operator: The next question comes from Mason Carrico from Stephens. Please proceed.
Jacob Krahenbuhl: Hey, guys. This is Jacob on for Mason. Thanks for taking the question. Congrats on a strong print. So, I appreciate all the color on the NGS growth, lot’s been covered there, but maybe just taking a little bit deeper in there, could you talk about how the growth trended during the quarter in NGS across heme versus solid tumor?
Chris Smith: So we filled all our NGS kind of together, so we don’t break out what’s heme or solid. So, I think we’ve been pretty open publicly that we’re really a non-player in solid until we launched our new — our new panel in March, but we don’t disclose which — how much is heme, or how much of it…
Jeff Sherman: And we don’t really talk about inter-quarter performance either.
Chris Smith: Yeah.
Jeff Sherman: So, we’d prefer to just talk about in quarterly increments.
Jacob Krahenbuhl: Okay. Yeah. Thanks for that. So…
Jeff Sherman: It’s really our competitive reasons. It’s not that we don’t want to give any color, but look, it’s a highly competitive place, and I think we’re really pleased with where things are going, and we just from a competitive perspective, don’t disclose that.
Jacob Krahenbuhl: Yeah. No, that makes sense. So on that new test you launched, Neo Comprehensive, it’s been out there in the market for a little bit now. Could you maybe talk about how adoption trended, and maybe more specifically, do you think you’re converting docs away from competing offerings that have been on the market for a little bit, or do you think the majority of the growth is just coming from broader market expansion?
Warren Stone: Yeah. It’s combination of both. There are certainly many cases that we could cite where there’s been conversions that we’ve managed to accomplish, and other cases we had broader market expansion because of the growth in the market that we’re actually benefiting from. So, it’s a combination of both. And yeah I reiterate the fact that the investment from the sales team spectrum is really what’s helping heme.
Chris Smith: I think that’s helped a lot. And don’t — one of the things that’s always been a strength of Neo has been the community setting. So, think about the community oncologists. A lot of them, there’s a lot of our competitors who are living primarily in university, or research institutions, and so our ability to continue to penetrate the community ecologist is a key factor to our growth. I mean, a lots and lots and lots of treatments going on in the community.
Jacob Krahenbuhl: Got it. And then, if I can just squeeze in one final one here, on your commercial sales team, you talked about how you’re continuing to expand in Q3 and Q4, but I think you previously mentioned that you really don’t materially — plan on materially scaling that team in 2024. Is that still the plan, or have your thoughts changed there?
Warren Stone: Yeah. I think most of the investments that we’re going to do from a commercial expansion perspective are happening at the very back end of this year, and it may — some of it may roll into Q1, but it’s all part of the larger plan for 2024. And those resources really focused in terms of customer-facing, but also putting — investing in the back office to ensure better enablement because this is where we’re going to drive the productivity improvements of the sales team, which are going to allow us to sort of do more with the existing team that we have. So, that’s going to help to negate the need for further investment, certainly in 2024, but we’ll reevaluate that later, probably this time next year in terms of what we want to do for 2025.
Jacob Krahenbuhl: All right. That makes sense. Thanks, guys.
Chris Smith: Thank you.
Operator: The next question comes from Puneet Souda with Leerink Partners. Please proceed.
Puneet Souda: Yeah. Hi, guys. Hey, Chris, thanks for taking the question. So maybe at a high level, and apologize if this was covered, but I wanted to get your view on the revenue cycle management has been a big focus. Obviously, you’re seeing improvement here in AUP that is remarkable. So, maybe can you talk about where you are in that revenue cycle management transformation process, how far it’s done, and sort of what’s left to go? Maybe just talk about that at a high level if you could?
Chris Smith: Yeah, Puneet. I know it’s a busy day with the markets close. We did cover some of that early, but we’re happy to jump back into it. Look, I think one thing we talked a lot about is our mix, and by NGS being, 20%, 25% of the clinical revenue, lots of runway. And so, obviously, higher ASPs, et cetera, but what Jeff did kind of dive into a little bit more, where the other levers, do you want to talk about it? I mean, we did talk about revenue cycle is a multi-year strategy as we kind of looked at it, but do you want to give–
Jeff Sherman: I would say we’re still in the early phases of capitalizing on the opportunity and revenue side, Puneet. And what I said earlier on the call was, roughly about 60% plus of our improvement in revenue per test was driven by NGS mix, and the balance was pricing, revenue cycle improvements, and some mix in our other testing volume. But as we think about what we’re expecting to get paid, and what we are getting paid, we still see room to improve there, and it’s not a one quarter or a two-quarter process. I think it’s a multi-quarter process. We want to use technology more efficiently, to make sure we’re being efficient, making sure we’re getting prior authorizations, making sure that we have a medical necessity covered, medical records covered. So, there’s a lot of different drivers, and frankly, varies by payer, where the opportunity exists, but I think we have a good handle on where we’re not being paid, and have plans in place to close that gap.
