Earnings Labs

Recursion Pharmaceuticals, Inc. (RXRX)

Q4 2023 Earnings Call· Tue, Feb 27, 2024

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Transcript

Chris Gibson

Management

Hi, everybody. I’m Chris Gibson, Co-Founder and CEO of Recursion, and I am really excited to welcome you to our first ever Learnings Call here at Recursion. So what is a learnings call and why are we starting this practice now? A traditional learnings call has a lot of value, but over the years I think these have become extraordinarily scripted, frankly quite boring in many cases and hard to access for all of the stakeholders that we want to be able to speak to. Learnings is our interpretation of a traditional earnings call, which we feel is more authentic, so I will not be scripted today, I’ll just be working off of the slides in front of me, adaptive and we hope easy to access. And please, if you have suggestions on how we can make this better going forward, please send them our way. What I would also say is that, we’ve chosen to initiate our first learnings call at this moment, at the start of 2024, because as we look ahead at the future of Recursion, the milestones and catalysts coming before us are going to be coming fast and furious, and we want to make sure that we have a robust mechanism to reach out to all of our stakeholders on a quarterly cadence, and to be able to share all the incredible work that we’re doing here at Recursion with you. So to frame where we are today, where we’ve been and where we’re going, I want to start by going back really a decade, going back to the origins of TechBio, one decade ago. And it was a really interesting time in the early 2010s. You saw technology companies coming into a wide variety of industries and leveraging a pretty straightforward playbook to bring…

A - Chris Gibson

Management

Thanks, Morgan. That’s a fantastic question. I would say that the response has been really, really robust. We had many R&D heads of large pharma companies at our JPMorgan presentation, which we co-hosted with NVIDIA. We had CEOs of large companies there, both tech and bio. And what we heard from people is, how do I get access to something like this? And we are doing the work now to increase the robustness of the LOWE platform. We’re having conversations with potential partners around how we could put these tools in their capable hands in a way that would be helpful to Recursion and to the industry writ large. As far as guidance around revenue, I don’t think we’re going to give guidance around revenue in the near-term. What I will say is that, we see the bigger opportunity in driving these companies towards really significant collaborations like the ones we’ve done with Bayer and Roche-Genentech, as they see the power of a tool like LOWE, probably that’s the bigger opportunity for us in the near-term compared to sort of recurring software revenue. But we certainly will take all the revenue we can get if we’re able to identify those questions. All right. Thank you. Next up, we have a question from Alec Stranahan of Bank of America who asks, how do you plan to utilize LOWE either internally or as an external offering? How does this fit into your existing full stack capabilities? This is actually a fantastic question because I think it highlights something that’s really important. LOWE internally at Recursion is being used by certain teams on the BD side and elsewhere. It certainly is something we think pharma could use. But I’ll actually go to a slide from our other deck here to say that internally,…

Chris Gibson

Management

Well, I hope everybody enjoyed this first earnings learnings call at Recursion. We intend to do this over the coming quarters. And we got a lot of potential milestones in 2024 and beyond. So I think these are going to be really exciting. I’m going to have other executives join me on future learning calls. And if you have suggestions, ways we can make this better, we want this to be adaptive. We want this to be accessible and so please reach out with that feedback on our social media platforms. Thanks everybody for tuning in and I look forward to seeing you again really, really soon.