Why did BIAF's Q1 2024 EPS outperform forecasts?

BioAffinity Technologies (BIAF) reported an EPS surprise of -$0.02 for Q1 2024, with a diluted EPS of -$0.2 and a net income of -$1.96 million, which is below the expected EPS and revenue. Therefore, the company's Q1 2024 EPS did not outperform forecasts. |code|Ticker|Name|Date|Total Revenue|EPS Surprise|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---|---| |BIAF|BIAF.O|bioAffinity|2023 Q2|19738||-1740173|-0.2|186| |BIAF|BIAF.O|bioAffinity|2023 Q3|298484||-2290884|-0.26|186| |BIAF|BIAF.O|bioAffinity|2023 Q4|2213356||-2373164||186| |BIAF|BIAF.O|bioAffinity|2024 Q1|2406391|-0.02|-1961815|-0.2|186| However, there are several factors that contributed to the significant revenue growth for BIAF in 2024: 1. **Increased Demand for CyPath Lung**: The most significant contributor to the revenue growth was the increasing demand for the CyPath Lung test. The number of physician offices ordering CyPath Lung has more than doubled since January 1, 2024. This growth can be attributed to the expansion of the company's sales team, which has led to more physician practices ordering the test. 2. **Medicare Reimbursement**: The introduction of Medicare reimbursement for CyPath Lung on January 1, 2024, has significantly boosted demand. Prior to this, the test was only covered by private insurance. 3. **Federal Supply Schedule (FSS) Listing**: In October 2024, CyPath Lung was added to the U.S. Federal Supply Schedule, which has facilitated access to the test for Veterans Health Administration and Military Health System facilities. 4. **Referrals and Word-of-Mouth**: Referrals from physicians, including key opinion leaders (KOLs), have contributed to the uptake of CyPath Lung by physicians in states beyond Texas. This has led to significant growth in sales and revenue. 5. **Acquisition of Precision Pathology Laboratory Services (PPLS)**: The acquisition of PPLS in September 2023 has contributed to the increase in revenues. PPLS is on track to report upwards of $9.4 million in 2024 revenues, more than 20% growth in annualized revenues over 2023. In summary, while BIAF's Q1 2024 EPS did not outperform forecasts, the company's strategic expansions, acquisitions, and the introduction of Medicare reimbursement and Federal Supply Schedule have significantly contributed to the record revenue reported for 2024.