Dear CDI Team Members, Healthcare Partners, and Industry Stakeholders:
As we reflect on our past year, we can see clearly staring back at us a period marked by growth, resilience, innovation, and impact. This year, CDI has not just navigated but thrived in a complex and evolving healthcare environment. Our dedication to enhancing the quality of life for patients through innovative diagnostic solutions and service options has been unwavering. As a result, our reach and capabilities have expanded tremendously both in the US and strategic markets abroad.
Our successes this year are a testament to the hard work and dedication of each one of you, and I am so proud of all that we continue to do together.
CDI’s 2023 in Review: A Year of Significant Growth and Achievement
Our full-year 2023 business performance and organizational achievements have been remarkable. We’ve surpassed each of the departmental KPIs and OKRs that we established for ourselves at the beginning of the year – while also handedly beating every major quarterly forecasting milestone that we had set for ourselves as on organization. Some of these key beats (to name just a few amongst the many) are below:
- Analyzed 28,500 tests in FY2023, beating our forecast by 15%
- Analyzed tests on behalf >5000 healthcare providers
- Analyzed tests on behalf >2800 healthcare practices
- Experienced 25% YoY volume growth from 2022 to 2023 with significant outperformance in all 4 quarters of the year
While impressive, these objective statistics tell only half the story. The other half – the intangible accomplishments that the CDI team worked so hard on and completed together throughout the year – are equally as impressive. Across the company, every team has rolled out new features and services that create more value and provide more insightful user experiences for our healthcare providers and their patients. We’re proud of the work we’ve done this year to continue adding new, direct value to our customers’ clinical routine. Some of these key accomplishments (to name just a few amongst the many) – including new technology integration and service innovations – are below:
- Integrated new capital equipment and instrumentation in our lab and streamlined operations to significantly increase throughput and ensure we maintain 24 hour turnaround time on all test results
- Engaged with a dedicated Market Access firm to work on in-network contracting for CDI in 2024 in order to broaden accessibility and affordability for all patients around the country
- Relocated to new state-of-the-art headquarters in order to sustain our continued growth, while still remaining rooted in our hometown of Salem, MA
- Expanded workforce by more than 15% throughout the year by onboarding amazing new team members in every department of the company
- Introduced CDI’s MyGIGateway®- a cutting-edge cloud-based provider portal and patient care management platform
- Launched a new kit registration, activation and tracking management system to enhance patient support through multi-modal communication
- Integrated advanced patient engagement and data analytics for our healthcare providers
- Improved our Google Review Rating to 4.2
- Added new service features including live web chat and call support beginning in Q1 2024
2023 was an important year for CDI as we continued to strengthen our position as a leader in the field of GI technology and services. As highlighted by the initiatives above, our internal focus on customer experience – along with our collaboration with academia and industry leaders – has resulted in continuous innovation, successful commercial execution and new, customer-centric additions to our service model. We continue to establish our position as a specialist in servicing gastroenterological practices, and our commercial team has continued to garner objective wins at every stage of the year with large, institutional accounts being onboarded every quarter.
CDI’s Financial Growth and Strategic Market Expansion
Beyond our business performance and value-creation activities, our 2023 focus on operational efficiency and service optimization has been stellar. I’m so proud of all that our team members have done this year to create a highly-efficient, well-oiled operating model while simultaneously approaching each day with a growth-oriented mindset. Staying efficient, while growing at the same time, is no easy feat. Our team, led by amazing managers and team leads in every department, has excelled in this area. The results of that hard work are now being realized, and they’re on full display through CDI’s significant financial growth this year. We’ve had noteworthy gains across the board – from top-line revenues to net operating margins – and this financial strength has enabled us to invest further in our people, our process and our products. It has also enabled us to invest further in research and development, ensuring that we stay at the forefront of technological advancements in our field. Our strategic partnerships – including with Functional Gut Diagnostics in the UK – have been instrumental in broadening our market reach, enhancing our service offerings and creating new, recurring revenue streams through product and service innovation.
Most encouragingly, these are not just financial milestones, but indicators of our ability to deliver innovative healthcare solutions efficiently and sustainably. Our balanced approach to revenue growth and cost management has distinctly positioned CDI for long-term growth and continual expansion.
Healthcare Industry Transformation and the New Operating Environment
The healthcare sector is in the midst of significant change driven by technological advances and a shift in focus towards personalized, precision-based medicine and preventative care.
The years following the pandemic have seen dramatically accelerated levels of adoption across almost all digital health technologies – from telemedicine to AI-driven diagnostics, machine learning to Remote Patient Monitoring (RPM) and Chronic Care Management (CCM), wearable health tech to Prescription Digital Therapeutics (PDT’s), and many more. These new ecosystems of longitudinal data and health informatics are reshaping the way healthcare is delivered and accessed around the world. However, challenges remain, and healthcare disparities persist. Access to cutting-edge treatments and technologies can be unequal, and the rising costs of healthcare – particularly in the United States – continues to be concerning.
The fusion of technology and medicine is not just a trend; it is the pathway to a future where healthcare is more personalized, accessible, and advanced. It’s crucial that we find ways to make these innovations available and affordable to all.
CDI’s Role in this New Operating Environment
In healthcare, the current state is one of rapid evolution, transformation, and potential. As we look to the future, the role of leadership in navigating these changes cannot be understated. The ability to foresee market trends, embrace innovation, and maintain a steadfast commitment to core values is essential. This means not only investing in new technologies but also ensuring that these advancements are accessible and beneficial to all segments of society.
In this environment it is crucial for leaders and businesses to remain adaptable, grounded, and committed to making a positive impact as a first principle. The decisions we make today will shape the future of our companies and our industries for many years to come.
CDI has taken bold steps to redefine our market space over the past year. We’ve worked beyond the confines of the traditional diagnostic service model and have sought to create a new market space that addresses unmet customer needs. Our focus has been on convenience, affordability, non-invasive methods, and the development of technology-enabled solutions to optimize the user experience. We strive to create unique value for both healthcare providers and their patients and this is not just a business strategy, but a reflection of our commitment to patient care and medical innovation.
As we look to the future, our decisions will remain rooted in a ‘Blue Ocean Strategy’ – where we aim to continue working beyond traditional market boundaries to create new spaces within our GI service model. This approach is about identifying and leveraging untapped opportunities, driven by innovation and value creation for all industry stakeholders.
Strategic Application of Blue Ocean Principles
Our approach to 2023 was guided by the following key Blue Ocean principles:
- Eliminate: Overemphasized factors in our industry that do not add significant value.
- Reduce: Inefficiencies and complexities, making our processes leaner and more patient and provider-centric. We streamlined processes to enhance efficiency and reduce patient inconvenience.
- Raise: Our focus on under-provided aspects like patient comfort and faster diagnosis, analytics and data services for providers, and eco-friendly practices for both.
- Create: Innovative solutions – including real-time data analytics for providers and patients to glean more granular insights from their engagement with CDI.
This strategic approach has not only differentiated us from our competitors but also opened new opportunities for growth and impact. Throughout 2024, we will work to deepen our commitment to these principles, exploring further innovations in diagnostic technology and patient care. Furthermore, we will continue to focus on sustainable practices to ensure our growth aligns with our environmental responsibilities.
Acknowledgments, Gratitude and The Power of Collaboration and Customer Feedback
Undeniably, a major catalyst for our success this year has been our collaborative spirit. Throughout the year, we have fostered a culture where feedback, creativity, and technology intersect. Harnessing the power of teamwork and customer insights we’ve fostered an environment rooted in learning and growth, paired with new investments in our team to provide opportunities for professional development and encouraging innovation at every level. The synergy between our teams and our continuous engagement with healthcare professionals and patients has fueled discovery and invention across every area of our company. This feedback and insight has been invaluable in guiding our product development activities, improving our service delivery, and ensuring that we remain directly in-tune to the needs of those we serve.
Team dynamics have been the cornerstone of our success, encouraging diverse perspectives and ideas. For this, I extend my deepest gratitude to our dedicated team, our healthcare partners, and our patients. Your support, insights, and trust have been the foundation of the company we continue to build.
A final note, and one that I am particularly excited about, is on our plans for employee development and engagement. Our team is our greatest asset, and investing in our collective growth is paramount. We will roll out new programs and create more opportunities for professional advancement throughout 2024, ensuring that CDI remains a great place to work.
Looking Ahead to 2024: Our Path Forward
The strength of CD’s overall performance in 2023 underscores our operational excellence, purpose-driven commercial strategy, and strategic foresight. With major increases in every area of the business – including significant revenue growth, robust net income, number of tests analyzed, number of ordering providers, and many more – we continue to establish a strong market presence, an expanding customer base, and growing trust in our brand. It’s also allowed us the opportunity to meaningfully reinvest in our business, as well as the service offerings and strategies that our customers desire the most. Our commitment is to continue delivering increasingly more value as we grow, with the singular goal of providing the best user experience possible for all of our healthcare providers and their patients.
As we close out 2023 and step into 2024 together, I’m looking forward to approaching this New Year with the same energy and enthusiasm that we carried throughout the last. I’m filled with optimism and excitement for the future of our industry, and CDI’s place within it. We’re building a company that stands for excellence, integrity, and change. The journey we’re on is about much more than achieving goals; it’s about making a meaningful impact on healthcare and helping to improve the lives of those we serve.
Thank you all for being such an important part of that journey.
To you and your loved ones – I wish you a happy, healthy holiday season and a wonderful New Year!
Best,
