The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Lu Li - UBS - Analyst
: Thank you so much for taking my question. The first one is on the full-year guide. You mentioned the great momentum in the VA contract and the
Foundation Medicine and you picked a quarter. So why not raise the guide? Do you think there are any more upsides or downsides to the '25
number?
Question: Lu Li - UBS - Analyst
: Got it. Appreciate the color. So I think this question is for Brandon. I think in the last quarter, you mentioned that there are some of the new accounts
that you ran in Precision Diagnostics flipped into 2025, so like Q1 and Q2. So I wonder, your Q1 result, how much of that is coming out from those
new accounts where you already fully aborted them? And how much is actually the base Precision Diagnostics business, if that makes sense?
Question: Lu Li - UBS - Analyst
: Got it. So final question for me on capital deployment. Do you expect to doing more buyback in 2025? And how should we think about kind of like
the M&A potential? Thank you.
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MAY 02, 2025 / 12:30PM, FLGT.OQ - Q1 2025 Fulgent Genetics Inc Earnings Call
Question: David Westenberg - Piper Sandler Companies - Analyst
: Hi. Thanks for taking the question. So actually, I'll start off -- Ming Hsieh, can you talk about the expected penetration rate once you launch FID-107?
What do you expect the cadence of adoption, and can you remind us kind of is that a cancer with more broad-based chemotherapies or a lot more
targeted?
Question: David Westenberg - Piper Sandler Companies - Analyst
: Okay. Thank you. Paul, I want to actually talk about maybe the capital deployment, and you do have a lot of different products now and you do
have pretty good efficiencies in the lab. Is there any thoughts to maybe using capital deployment to expand sales and marketing? I know that
usually -- I know you said you guys are looking at tuck-ins and stock buybacks. Is there any opportunity you think in terms of expanding that?
Question: David Westenberg - Piper Sandler Companies - Analyst
: Very helpful. And yeah, you did have a good growth in Anatomic Pathology, which came as a surprise, good, obviously, positive.
Just in terms of strength in BioPharma, that one actually, I think that you guys were a little bit of an outlier in terms of the magnitude of how good
that was. Just given the fact that BioPharma, at least from our polls, just seems to be a little bit more conservative in the current environment. Can
you talk about appetite for spending the rest of the year? And maybe color on book-to-bill there, just the way we should expect in the rest of the
year, because, I mean, I don't think you guys will be growing at 51% in the rest of the year. I just want to be careful about not getting over our skis
in terms of the way we're thinking about that.
Question: David Westenberg - Piper Sandler Companies - Analyst
: Thank you very much.
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MAY 02, 2025 / 12:30PM, FLGT.OQ - Q1 2025 Fulgent Genetics Inc Earnings Call
Question: Andrew Cooper - Raymond James & Associates, Inc. - Analyst
: Hey, everybody. Thanks for the questions. Maybe first, just was hoping you could unpack a little bit more of the Precision Diagnostics momentum,
what's sort of being driven by NOVA versus Beacon, and then really outside of reproductive health as well, what you're seeing, whether it's in some
of those rare disease or, frankly, some of those newer oncology offerings that you've rolled out over the last several quarters.
Question: Andrew Cooper - Raymond James & Associates, Inc. - Analyst
: Perfect. And then maybe -- can I start going back to the P&L a little bit? I think, Paul, you commented on that sort of $10 million to $11 million
ballpark each of the rest of the quarters for sales and marketing. I guess, one, why should that not be going up if you're talking about hiring kind
of incrementally through the rest of the year? And then, could you also help us think about gross margin trajectories as you do have sort of an
evolving mix with, Brandon, to your point, kind of a lot of different moving parts, a lot of different products that are contributing different amounts
in a given quarter or for the full year?
Question: Andrew Cooper - Raymond James & Associates, Inc. - Analyst
: You talked about the $10 million to $11 million, but you've talked about kind of more hiring happening through the course of the year. So why the
sudden step-up and then sort of plateauing as opposed to something a little bit --
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