Executive Summary

Q2 2024 revenue rose 76% year over year to $2.86M, driven by a 26% increase in specimen count and a 39% increase in average selling price, while net loss narrowed to $(2.11)M; management cited operational programs (Next Day Quotes, Supplier Refresh) as key contributors .
Gross margin expanded versus Q2 2023 and remained above 50%; cash and marketable securities declined to $2.15M as the company continued to fund operations and reduce payables; H1 2024 cash burn fell 59% vs H1 2023, a notable improvement in operating discipline .
No formal guidance was provided; management reiterated they “don’t really give guidance” and set internal goals for quote conversion higher than the 58% H1 conversion rate disclosed .
Potential stock catalysts: sustained revenue growth from higher ASPs and improved conversion, continued cost reductions (G&A down ~40% YoY in Q2), and execution on supplier quality/embedded coordinator initiatives; financing risk remains given low cash and ongoing losses .

What Went Well and What Went Wrong

What Went Well

Revenue growth and mix: Q2 revenue increased 76% YoY to $2.86M on a 26% higher specimen count (5,918) and a 39% ASP increase to $484 per specimen .
Operational programs driving conversion: “Next Day Quotes” and “Supplier Refresh” improved sales funnel velocity; H1 2024 Next Day Quotes conversion reached 58%, exceeding internal Q2 revenue goals. CEO: “The initiatives we have completed… meaningfully improved our conversion rates” .
Cost discipline: G&A fell ~40% YoY in Q2 to ~$1.05M; management cut headcount and spending, driving H1 cash burn down from ~$7.1M in 2023 to ~$2.9M in 2024 (−59%) .

What Went Wrong

Persistent losses and cash pressure: Q2 net loss was $(2.11)M and cash plus AFS securities stood at ~$2.15M (down from ~$5.01M at YE23), necessitating ATM equity financing; net proceeds of ~$1.2M were used primarily to manage accounts payable .
Rising unit costs: Cost of revenue increased 67% YoY to ~$1.42M, reflecting higher volumes and a 32% increase in average cost per specimen; margin expansion was moderated by cost inflation and mix .
Macro demand caution: Researchers face funding constraints and high specificity requirements; management said it remains “a real tough environment,” making timing and responsiveness critical .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$1.63	~$2.30	$2.86
Net Loss ($USD Millions)	$(3.48)	N/A (not disclosed in available materials)	$(2.11)
Diluted EPS ($USD)	$(0.39)	N/A (not disclosed in available materials)	$(0.19)
Cost of Revenue ($USD Millions)	$0.85	~$1.00	$1.42
Gross Profit ($USD Millions)	~$0.77 (calc. from )	~$1.30 (calc. from )	~$1.44 (calc. from )
Gross Margin %	~47.5% (calc. from )	~56.5% (calc. from )	~50.3% (calc. from )
Net Income Margin %	~−214.4% (calc. from )	N/A	~−73.6% (calc. from )

Notes: Gross Profit and margins are calculated from disclosed revenue and cost of revenue.

KPIs

KPI	Q2 2023	Q1 2024	Q2 2024
Specimen Count (units)	4,682	5,241	5,918
ASP per Specimen ($USD)	$347	$437	$484
Next Day Quotes Share of Quotes (%)	34% (Q4 2023) → 40% (Q1 2024) → 44% (Q2 2024)	40%	44%
Next Day Quotes Conversion to POs (%)	52% YTD (Q1 2024)	52%	58% H1 2024
Suppliers Under Contract (count)	243 (YE23)	140 (end Q1)	105 (6/30/24)
Cash + AFS Securities ($USD Millions)	$5.01 (12/31/23)	~$2.56 (3/31/24)	$2.15 (6/30/24)

Estimates comparison: S&P Global Wall Street consensus estimates were unavailable in our feed for Q2 2024; therefore, no estimate comparison is provided.

Segment breakdown: Not applicable; iSpecimen reports as a single marketplace business (no segment disclosures in Q2 press release/8-K) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q2	None provided	None provided	Maintained (no formal guidance)
EPS	FY/Q2	None provided	None provided	Maintained (no formal guidance)
Gross Margin	FY/Q2	None provided	None provided	Maintained (no formal guidance)
OpEx	FY/Q2	Directional cost reductions (workforce, tech) discussed, not guided	Continued cost discipline; no numeric guidance	Maintained qualitative stance
Other (OI&E, tax, segments, dividends)	FY/Q2	None	None	Maintained (none)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2024)	Trend
Next Day Quotes program	Q1: 40% of quotes qualified; 52% YTD conversion; prospective conversion 91% (prospective dollars)	44% of Q2 quotes qualified; 58% H1 conversion; plans to expand next-day estimates	Improving conversion and coverage
Supplier network refresh	Q1: Reduced suppliers from 243 to 140; focus on quality and data sharing	Down to 105 suppliers by 6/30; capabilities increased with deeper engagement; more responsive supply	Smaller, higher-quality network
Cost discipline and burn	Q1: Workforce/tech cost reductions; one-time charges clarified	H1 burn down 59% YoY (to ~$2.9M); tech cash spend reduced materially; detailed OpEx breakdowns	Sustained cost control
Macro/customer funding	Q1: Building pipeline despite constraints	“Tough environment” for researchers; high specificity and timeliness critical	Mixed demand; timing matters
Revenue enhancement (embedded coordinators, cancer sequencing)	Q1: 3 embedded sites; cancer FFPE pipeline ~$1.5M; 27 new orders across 65 projects	Continued focus; program supports faster prospective conversions	Execution phase
Financing and liquidity	Q1: ATM established; intent to seek funding as needed	3.98M shares sold under ATM; ~$1.2M net proceeds used for payables; pursuing equity/debt	Ongoing capital management

Note: Q-2 refers to Q4 2023; specific call/press materials were not available in the document set. Management referenced workforce reductions continuing from 2023 into H1 2024 .

Management Commentary

CEO on drivers of Q2 strength: “The initiatives we have completed, namely, our Next Day Quotes program… and our Supplier Refresh program… contributed to increased velocity through our sales funnel and the strong results we generated for the quarter.”
Operations on conversion momentum: “For Q2 2024, 44% of quotes… were part of the Next Day Quote program… In the first half of 2024, an incredible 58% of Next Day Quotes were converted to purchase orders…” .
Cost discipline and financing: “We sold 3,980,075 shares… net proceeds of approximately $1.2 million. Proceeds were used primarily for the management of our accounts payable… The future success of the company is dependent on its ability to… obtain additional working capital and/or… profitable operations.” .
Macro tone: “It’s still a real tough environment for our researchers… they’re being very careful on what they’re willing to invest…” .

Q&A Highlights

Macro and demand: Analysts asked about customer funding and prioritization; management highlighted tight funding, high specificity, and importance of rapid quoting and project starts .
Next Day Quotes targets: Asked about conversion targets; management does not provide guidance but stated internal goals are “much higher than the 58%” conversion rate .
Supplier quality and breadth: On whether fewer suppliers constrain supply, management said capabilities have expanded among remaining suppliers and responsiveness improved; “Supply has not been an issue to date” .
Metrics disclosure: When asked for unique customer/user counts, management did not have figures at hand; investor presentation notes ~7,700 registered users as of 6/30/24 .

Estimates Context

Street consensus: S&P Global Wall Street consensus estimates for Q2 2024 EPS and revenue were unavailable in our feed at this time; coverage appears limited for ISPC. We attempted to retrieve consensus but could not access data due to feed limitations. As a result, no beat/miss analysis versus consensus is provided.
Implication: Given the material YoY revenue growth and improved margins, if coverage expands, we expect estimates to reflect higher ASPs and improved conversion while balancing unit cost inflation and ongoing operating losses.

Key Takeaways for Investors

Execution is improving: Strong YoY revenue growth and higher ASPs signal effective sales and pricing initiatives; conversion programs appear durable and expanding .
Margin trajectory constructive: Gross margin improved vs Q2 2023; watch unit costs and mix as levers to sustain 50%+ gross margin while scaling volumes .
Cost controls real: G&A down ~40% YoY; H1 burn reduced 59%; continued OpEx discipline could accelerate path to breakeven if revenue growth persists .
Liquidity watch: Cash + AFS ~$2.15M at Q2; ongoing losses and payables management necessitate active capital planning (ATM usage, potential debt/equity) .
Operational moat via supplier quality: Smaller, higher-quality supplier network increases capability and responsiveness; embedded coordinators and data sharing can drive speed and conversion advantages .
Near-term trading lens: Expect sensitivity to updates on conversion rates, ASP durability, cash runway, and any financing; positive commentary on sequential momentum could be a catalyst.
Medium-term thesis: If ISPC sustains growth from marketplace efficiency and specialty programs (e.g., cancer FFPE), while holding down OpEx, the path to reduced losses is credible; financing risk and macro demand constraints remain key variables .

Source Documents Read

Q2 2024 earnings press release (full)
Q2 2024 earnings call transcript (full)
8-K including Item 2.02 and exhibits (press release and investor presentation)
Q1 2024 earnings call transcript (for prior quarter trends)

iSpecimen Inc. (ISPC)·Q2 2024 Earnings Summary