APEN - Earnings call transcript Q2 2021

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Operator

Good afternoon, ladies and gentlemen, and welcome to Apollo Endosurgery's Second Quarter 2021 Results. At this time, all participants have been placed on a listen-only mode and the floor will be open for your questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Matt Kreps. Sir, the floor is yours.

Matt Kreps

Thank you, Catherine, and thanks, everyone, for participating in today's call to discuss Apollo's second quarter 2021 financial and operating results.

call Chief McKhann, Financial the Stefanie Executive on our Cavanaugh, Officer. me are Chief Chas Officer; Joining And also his joining Incoming of Chief today's second call is Officer, our will Jeff who officially Form assume quarter duty filing Financial upon XX-Q. Black, our

I meaning begin, caution to development laws, outlook Apollo's of management Federal like made include forward-looking and listeners call financial and product this Securities and conference would will comments timing Apollo's statements by we Before that during within for plans the sales. including

In about the addition, may results actual continued COVID-XX and general. the global the virus our materially. in differ forward-looking it may activity products, demand These on risks is uncertainties impact supply statements there and uncertainty economic material spread chain for our cause and of the have and operations, ongoing involve

to Apollo as the or no the risk only date live law, XX, information company's the the August the For our obligation content accurate turn conference XX-Q. The I a to time-sensitive XXXX. Annual this year call. or of call the date filed that, of XX-K and Except this to recent is discussion Form by like required call to Commission with XXXX, of X, revise reflect ending Securities statement I'd update as previously after Form any broadcast, events of Report of to encourage the undertakes Exchange for contains you circumstances Chas. review that December most factors, on and now with And over

Chas McKhann

and joining everyone, call. for you thank afternoon, Good today's

just $XX to straight sales the quarter to our million revenue the million we second into In driving now million. $XX increase the products year crossed quarter, for to of that $XX $XX.X us for of for endoscopy the full growth. sales record million million the wire, leading momentum fourth guidance our $XX reported release from strong continued second to Our quarter,

accelerate lead with call strategy first the that and growth to out remember you You business, may laid a growth phases: front. in from three the with I my May, energize

near-term driving lay available deck Customer that achieving seek are growth. years is aligned performance at foundation reported presented demand sustainable is that the and slide our in deliver describing by phase, challenges as energized for increasing seeing Apollo. we products phases our transformational momentum detail. investor performance world, strategic the will clearly Our a The with growth all about in online milestones despite of around the The energize we more to includes first results ongoing a three pandemic. the the building are reflected by and for phase

Intragastric In appointments Marketing for U.S. our of who VP of businesses, CFO, addition Suturing recent VP and our many leadership week Ellis, to substantial initiatives. Steve Kirk team These Medical of senior Bosrock, record with this us started with Education; revenue progress the Black, today's include: made first, Balloon Sales: Endoscopic call. and and on on Jeff our is our Incoming our transforming delivering we and key

X back sales all and our the fully on sales experienced U.S., of previously performers. trained were hired strengthen and we expanding our are In have whom top Second, team. reps, products

priority further on and driving have team focus new in to positions geographies. and international additional sales addition, team positions improve sales X in some In key our our opened we U.S. allow to growth recently high coverage

of excitement and of now continually for I've physicians feedback the Apollo We that X-Tack our on as that Tacking show love our and has consistently trial analysis, been with engaging investigators that at efficacy a in the Third, year, many starting primary novel with sites are more fourth, achieved taking continuing our the the place the successful Since preliminary MERIT have team. in than have launch Apollo. Helix QX. announcing revitalization products, endpoints. its our And reported at customers System that XXX earlier this safety they study active is leadership end also

Turning with of now updates product our OverStitch. to lines, on starting each

see to from demand OverStitch strong core users. our continue We

pleased OverStitch base users. increase was of we see successfully OverStitch very per to while accounts by the adoption me and in who that tells QX, number increasing and both physicians are growing are the in using among also ordering We This our experienced growth an account. average total revenue of trained are driven the that of

continue week, second closely in Mike on Society in our work mobile international complex programs the on We continue ASGE, the Suturing Outside Our improve flare-ups job conditions to do the U.S., physicians of distributor will improvements year for now and we Endoscopy, of products I'm markets MERIT of our physician American study study the likely seeing Disruptive in COVID physicians. trial in basis the and the most half for have MERIT the build the pop program but analysis, the Surgical back the in continue MERIT Based pleased disruptions broad otherwise at a on both investigators markets loss, COVID needs that of will from done Miami preliminary to in on study most we despite been came based periodic June at team primary its the Disorders, the year. training the markets. date in presentation results the most milestones FDA training third remarkable Surgery a road filing excellent half training where in the anticipate Federation evolve as our and that continue as are OverStitch Gutteridge of various of results meeting dynamics societies, our a navigating positive achieved best both meet de for learning submission is for International efficacy these Obesity has for Metabolic the report and annual that announced with quarter. in for hosted around about safety. first endpoints world. to their by up, a anticipate We the to and indication our to market novo the have direct new Technology we weight lab Summit, and of the focused accepted Gastrointestinal we to strong the IFSO, seeing with are known OverStitch. Perhaps the last announcement such expect an significant a the Endoscopic one October. who endpoints, just on with to

ESG initiating are procedure launch a we of a the addition, In indication. at the new for of time preparation comprehensive

worldwide because loss fits solution just but of business their for excited for that milestone We transformative, are not we to also very looking needs. be weight believe better has our the about millions patients potential this the ESG to

there reminder, a adults new more greater vast for U.S. alone options. clinical need in a with unmet than are As there BMI XX XXX and a than treatment million is the

dimensions: customers decisions Our from experienced they well rising cash second, positive X sense for directly of success ESG very offering provider-driven enthusiasm both case-by-case are that optimism value private ESG our by on who what resonates And have proposition been some we patients. reimbursement as expressing the as with stems that hear payers. pay first, from well solutions

I'm the to over U.S. The call, we XX be X-Tack. response May and pleased more that very that added than On say are first our quarter, Turning had we announced accounts we to accounts to in in now the promising. continues customer XXX

making Hong Chile Kong, initiated for select countries, and in are additional have including OUS our also plans and We Israel launch markets.

X-Tack a gain will the while OUS select XXXX will Our to which to launch be through initially, we Mark in event. new markets be Europe, targeted work procedures believe CE we

approach initial approximately to That accounts about be OverStitch X-Tack of users, quarter, in targeted said, interest initially delivered experienced highly additional with U.S. And more by for Steve upon that rather they the Bosrock, we and closure up having their second key the Kirk at frequently which team a of including targeted generate vital large not our in as driving Ellis U.S. rollout commercial GI have users of end XX simply users the to multiple Our X-Tack OverStitch success orders We on who advocates this see believe and continues of sales hospital, the new on $XXX,XXX new rely X-Tack than can focusing a increasingly build tool initial utilization any of additional generated sustainable pipeline good institutions number product. opening under sense the accounts. approximately and the Awareness a direction community. made prospective experienced worth is at many leadership completion. in are needs. create each existing who activities

the received, which achieving based X-Tack that And “X-Tack several and look since completing the further it the these with KOL are very multiple to outstanding development their very look case. a the already comments clinical our message revenue XXX% real a early hospital applications in a I'm have these for driven center about initial is first seeing XXXX product is for and time the after week This on to recent a May. the at benefits who be papers and Digestive highly in by global clinical diet continues the device. for this results a that but more globally performance to I recently VA the from leader growing customers, are document We the X-Tack medical very delivering a beautifully, short, love of ease excellent user demonstrate with better first will and of in than lot specifically and market to underappreciated new simply invasive we of case, is to been entire additional lower team, and We forward. clinical “I there finally, Disease initial has good publication use received best patient we've therapy of shared, our adoption unmatched we A months balloon well product. pleased to evidence, U.S. major cases large for closure sessions From “X-Tack going a very and X-Tack In launch need its I but clinical the Recognizing system engineers needing publications patient. the excellent continue on used for guidelines that replace first applications practice are effective ahead. X-Tack IGB value some weight clinical and those And within with exercise completed, that Gastroenterology solution repairs.” in differentiated potentially asset. can this me of forward that evaluations very Association last another it ORBERA allow obsessed.” anecdotes R&D unique the as absolutely enthusiasm designed. loss effective said, endoscopic and to were success a something update, of on roto in normal endocrips.” on from physician the just basis, X-Tack. the the supporting about of anticipate product, studies going meeting American compelling of building very also effective initial market worked alone. performance leading was success the share our physician at this forward been have A body develop the new IGB positive Week We're especially believe weight care the an is many clinical challenging of less days by loss the quarter the a ORBERA we

further announcement believe NASH and bolster FDA the of codes IGB this recent breakthrough potential positive of designation value ahead, procedures I we for the new the for treatment the Category CPT of franchise. Looking

developing are We field. group favor that of ASGE seeing of Bariatric interest another rising Endoscopy ORBERA. is endobariatric created physicians in practices, the has development this in The specialty dedicated called among on Association a building emerging focused rapidly now

for cornerstone to there the Apollo's ORBERA addition, multiple believe cornerstone. lines for ORBERA DBL ORBERA meeting of endoscopic about are support second which patients. that briefly uniquely our conditions received Suturing, time, transplant. the the this successful one impacts placement new designation debilitating steatohepatitis, condition In update And patients to NASH. liver February, indication of the revisions were developing of offered Balloon primary could non-alcoholic we procedures emerging practices, field. of Recall a of such as we breakthrough Over need an or become ESG that of is leading bariatric NASH. one In for is include surgeries NASH, that the sessions Endoscopic and Intragastric view positioned prior this on that the a for a and endobariatric product as both millions including procedures of cause

quarters a sense better hope of a field and here I've tremendous in dedication had that continue of as designation endoscopy. the work and seminal a products. potential solution. positively customers CEO, on excitement our for We event a Apollo's a focus. this an our on passion make of pivotal With conveyed becomes and to now. it full my to Apollo have therapeutic right additional advancing to therapeutic designs update, this for I how NASH as team view affirmation we'll and two breakthrough trial, was FDA's updates improving IGB's directly patient In potential permeates care continue us pleasure as first to for momentum And addition, at hearing from the Apollo a has in they of the

growth We all are X product deliver well across with large lines. of continued opportunities positioned to our

With the over and strategy. phase second marketing I'll our we call our We quarter volumes results. Stefanie continue to to that, cover expand platforms to move accelerate team, X towards addition financial capabilities, to sales and to including our all the build of scale our across Stef? growth and supply turn work and the

Stefanie Cavanaugh

and Chas, you, afternoon, good Thank everyone.

products strong The even continuing of to as strong second was endoscopy XXXX some indicative limit This demand OUS periodic versus access Both sequentially up large quarter in quarter to markets, the the increased U.S. has certain continued and momentum our with ESS our of million, increased and the the Total second systems. to for increases prior XXX% the OUS and growth, our surges, continued XXXX. health XXX% demonstrated experience lines to states from as and from pandemic. of revenue increase over has $XX.X quarter first revenue. the is both revenue well COVID-XX COVID recovery pandemic, product which care in countries IGB exiting record XXX% leading XX% demonstrated revenue U.S. as year.

in launch as the COVID-related the quarter pandemic. very $X our included number of In markets this reminder, of our sales separately intend OUS as results, in the countries a X-Tack, also markets activity improved. gives product to but opportunities gross X-Tack X-Tack to performance in from market more direct don't well Despite since markets million the quarter our markets did beginning Europe. markets recover growth at continued increasing strong to This as are are particular, the cross we time, European the QX. confidence of was improve, around ORBERA QX the increase in XXX% mark As of we in and XX% continued compared designed in which the in the with to in to pleased a ESS year sales our key the to Gross direct effects performed we disclose due margin in be QX, delivered sales to both growth world. XX% to consolidated performance and our sequential higher prior OverStitch which us accretive contribution and both accretive historical lines growing from from demand margin. shutdowns for

million initiatives, program compared strategic implemented as higher or In pandemic net our including million, expense in growth to organization year. as in we of loan $X.X continue cost the compensation controls quarter, expense recorded as gross marketing to a mentioned. non-cash PPP investment well result $X as loss progress expenses million $X.XX resulting stock-based our the Operating make increased the prior internal and just on improvement addition, the $X.X sales of benefit of share. a stock we to increased on as in projects. the we during Operating expanded also forgiveness loss this margin compensation in per of We the hiring I primarily a

and this sequential the loss improved year. forgiveness, loan compensation on the basis compared Excluding of non-cash to second quarter our XX% XXXX and a XX% stock net

sheet. the to balance Turning

end stock as million just $X at was a quarter the of $XX.X Our at of cash over million quarter, proceeds. used million remained the operations $X $X offset first by decline million compared the with position of $XX.X strong for option this million

million million from estimated at a are million that uncertainties As increase increased million our continued beginning, first a annual the revenue to delivered A million full mentioned XX% $XX have call $XX pleased the and in XX%. Chas revenue target are of reflected $XX the $XX we to today, solid to representing year growth half range. our to $X number on to last of and

of ongoing half the around impact We variance the uncertainty in XXXX. continue particularly second of in to certain OUS COVID-XX anticipate markets,

third volumes accounts seasonal a We growth summer And the time. utilization in of over and new the finally, still our slowdown learn also X-Tack to anticipate typical in quarter. about in continue X-Tack launch likely we procedure product are early days the and in

Chas McKhann

and the execute from more his to I the capitalization to Stefanie who Chief securing as grew like a fusion turnaround played years to solutions. an medical and $X.X us the continuing Steph next growth, sheet to recently, Black, Holdings, Thanks, contribution be Jeff I'm Apollo very Alphatec before welcome technology XX company, and Financial strategic served this week. most Jeff key phase $XX of a years, of Under to that Jeff, move pleased a million to market for Stefanie. past role welcome growth. And Apollo Officer to he Q&A, X acquisitions. as the you, million Stefanie, invaluable thank leadership, I like Apollo in billion. we over would Endosurgery, we accelerated brings joins of on company to at for and would Jeff also thank with CFO $XXX successful introduce nearly company experience as the balance financing position Apollo. Alphatec of providing will the in spinal than support officially transform

Jeffrey Black

partnering There's company. a looking and not us and Others, happier patient to improve know forward I be I on the I the for our the remarks, exciting that call, plans reconnected as Stef's value. to back to don't, and our reacquainted. Chas a With shareholder for differentiated her and accelerated and this with of for during even Many and expand everybody. the build forward could ahead tremendous weeks. to afternoon, Thank toward growth. turn team good continuing scale I'll to and the and to large getting questions. days truly we coming at you, looking joining Chas, to over time her and all with very prudently you operator be look very that, getting I the built to in of support it growing market here technology transform forward very with to to concludes foundation prepared organization Apollo. you and know a strong finance eye lives, a opportunity

Operator

Ladies and questions. gentlemen, Craig-Hallum. Instructions] question first is the Hewitt Matt floor open [Operator for is now with coming Your from

line live. Your is

Matt Hewitt

very afternoon, quarter Good on Jeff. strong and and the welcome, congratulations

Chas McKhann

Thanks, Matt.

Jeffrey Black

you. Thank

Matt Hewitt

some How a comp, a off, pockets happened given were easy ago, a where a that is First put OverStitch, bounce big much you were of in to obviously, do still versus of but year we it think some growth way strong to see seeing pent-up up relatively back that there numbers. growth from new was we're just seeing that kind ORBERA sites able coming back? where you're the from? parse coming Is demand really and ago, X-Tack, year through you offering that a what

Chas McKhann

bounce seasonality. especially of a when a Yeah, year, in of Since then, right? this terms, is actually since little last it As then. you QX circular we've Matt. real very you QX, think factor been a recall, growing our we growth, quarter-on-quarter We strong had by and back had in bit

both is happy X growth. also all strong really really driving across that blue we're OverStitch the and we're demand incremental, franchise. performances products Yes, and that. underlying is But course, seeing the with X-Tack with about of so, And

Matt Hewitt

a then, hospital - quarter some I'm is to the these a on That's fantastic And each out, them? there go that kind through of you different enable the now figured it with a curious, through you of site you curve to pointing kind obviously, to of quicker? learning of of I additions next is you've through is should process committees getting have great. And XX Or to guess, X-Tack, got just and get sites. every it different

Chas McKhann

through certainly can right, it bit their It's Matt. every as now. own you best both, processes. hospital learn of practices little But We some we've a are been has

that in using especially get examples primary but some available targeting the work It's And that changing some to and to reiterate, quickly, predict. with of incorporating to and really the right? to build utilization. become moved also the behavior that we're have and of But This of I'd account longer continue That's hard new medicine process. an work, as also we sure And them rapidly. it focusing our the of getting is go the product have others take to shelf, very team that's the our commercial are have team make shepherd that thought practice. the to would on seeing really continue we're only of on just But the area that, be team, not each manage to we sales that helps them happy and want make more in we're really taken practice. leadership and and and to folks and focus. part takes the we're additional used through day-today on their positive But depth sure product process. have focusing multiple it much We sort to we in to going customers users

Matt Hewitt

queue. Okay. one That's hop back I'll great. Maybe in then one and last the

Regarding the salespeople. new

an domestic the quarter. your what and X us going international added openings filling. sales you then a for Could that got is hopefully It you. few update in the like you're current Thank the you give sounds domestic more headcount direct So you've both be here markets? to team

Chas McKhann

XX about - For and we many sales then team, The… we have another and total the reps sales role. team the a with managers four account people, have domestic additions, of XX

Stefanie Cavanaugh

similar. is OUS

Chas McKhann

a number, similar OUS in give very would exact scale. size, you similar Yeah, the it's is but

Matt Hewitt

very Thank congratulations. you great. much, That's and

Chas McKhann

Thanks, Matt.

Operator

coming Piper is Maeder with from Adam question next Your Sandler.

live. is line Your

Adam Maeder

was you role Jeff, little and on well question, with Maybe to done. Hey, for guys. the guidance. the on congrats to I just taking Matt's new for on comments. that kudos one Thanks start and a welcome bit the could aboard. Stef the of on congrats echo hoping rehash kind a and great you job quarter And us.

the the through assumptions different components in walk segments Just different business. the for there,

I a or maybe delta variant the bit seasonality you conservatism QX think, Stefanie, COVID. some about in talked little and around

And assume So, just would that or there's something two. it the color baked half is versus curious in broad there year, about as then cadence QX, items? the thinking reasonable in well. strokes, there some I a be follow-up had in And to those of for QX I the getting back

Chas McKhann

Sure. Thanks, Adam.

As we look to you we're seeing the lines. results, back half of individual the across year, three we from but products, our growth don't see all break out as the product can

you have go before And if anything, more a vacations historically even we be schedules. Think XXXX seasonal is about effect. a that, So We comments, pronounced and as it recepted are bit just in if I this and absolutely seasonal we're - that. year said a to But of back outlier. an excited shown little I may mean, right? impact. last the expecting we year, obviously about

have We business, big as international a know. you

impact markets pockets if COVID to indications watching outside major certainly the what we're but I'm used primarily might certainly I all terms And it impact to then talk we used on far, take in but in here, see my the before - with will forward, but the how we months And right? the reasons. been are it, real, Louisiana, take I've COVID. Just some norm carefully so, August, Florida that and And has European seasonal going of humans in the be so ago. new sure comments, of of the that holidays not so hadn't learning they think U.S., are, as for just mentioned impressed weeks, all in six managed we're planning watching about in curve are coming a COVID U.S., piece, I not think team I through for of X-Tack, very certainly us three, the obvious examples. is that but out been they of occasional two

utilization. new in the still So and both we're uptake learning accounts

for are certainly factored QX. of a those and range into seasonal strong all a see QX us. impact So, the And would quarter is historically, in

Adam Maeder

That's handful really two for there. of today. a sneak positive Chas. can Thanks given if I And the call updates There all in color the helpful, on were then more.

just is, come on XXXX and When or to a a study. maybe indication. a So, then you do fruition? the for question Is impact XXXX that I think how from MERIT or the the a de really weight the that payer potential perspective? event? guess, with about starting a novo update submission OverStitch could And here you loss gave reimbursement on

said is have that I ESG-specific potentially one that. I'm of means that's more, I assuming right? Do a if QX likely okay, filing. think you label. that I'll in mid-XXXX that And then most kind sneak And that's a after item?

Chas McKhann

the the to this submission XX-month on that towards that the indication. you're in - itself then the the MERIT hope development, and depending an on quarter. right, The major of That's and Sure. a level call, the us as And questions. feverishly ESG using for we so two the process in presentation mentioned milestones I front of will potentially working would X- data have are of to the novo be

your in as it part half so, wide And we it's of we And an more have a to reimbursement. because learn I focus important question I we'll update range next of investor and deck, of of first on answer on think about kind that. the the our indication year,

of cash following as As successfully. it model I we're revisions customers as a bariatric independently of is both and well models, mentioned I quite right? codes pay our And promoting it, prior for And customers. case-by-case would we're comments, examples in again, authorizations our unlisted especially do seeing reimbursement model, not a This two say, already surgeries. my existing using

those and a the models, when in indication, appropriately what to the are And we very lot learning growth. and so, if reimbursement two be of indication. having we driving stage where doing able both the can and And would then they're then case-by-case we're cash successful an be pay success right and take they can have think to actions what with seeing in now we

been place. also on, your have basis to the that coverage I and working coding broader will would we payment need think While take of the question,

so but new plans is as pursue things so as place well we it codes, to like And have inpatient, primarily APC in codes procedure. the outpatient and procedural an

more So working drive the And that, the take terms indications, filing a but take a also put the place, so time. in will quickly some fair after can happen into the it, amount again of pretty that CPT societies often they're Those event. XXXX coding, and new codes then of kind probably time there. the then to but of of through

codes got As approvals go you just don't know, the place for, we until XXXX. balloon they into

a anything, practices And summarizing, need data, say least now lot pursuing. processes. you to we've of so, that in we hearing the needed work will the I'd the already just opportunities are again, because than using even But probably that if got year later a through existing be ESG our at customers

Adam Maeder

States. again, get from terms be on a of to in or of for more. standpoint congrats will on a of terms sense is strong update. path if for in of Can flavor follow-up? this the there of a And terms the us transitioning to number patients bit development. in that. design what one kind forward in time the progress be point Thanks That's indication. sort Thanks, little trying trial in performance. and label any like this could the or you sneak sounds just clinical in think Just give Maybe required trial I of at some and rough great still It when can in ORBERA NASH you

Chas McKhann

benefits designation. the agencies on mentioned one - working not of both - because breakthrough have a lot of we the we two there not in Yeah. an NASH I I that trial with design call, on on say elements is the of But are Thanks, update, what the of one get Adam. The end the we're last like. working the up just to still because the through honestly, looks much of a it they think

along speculate a design, get on until process. And through the with so, in exactly But reasonable that hard work trial working we'll to further like we're I'm course. and a we're will that look them it's in on what the little that optimistic

working tangible. have update And it, so once and we're we something provide on we'll an

Adam Maeder

good. you. Thank Sounds

Operator

Frank next Your Lake Takkinen Street. from is from coming question

Frank Takkinen

taking get welcome, remainder sticking thanks on for my heard your been at as about It's see glad for echo wanted everything year Stef. new Couple questions about of Hey, first done, comments time so of level from seeing comments the well one, opportunity was I as a And what minimum. total I of the as us you've users board the account you believe with run to and higher-level thanks beyond I plus fantastic in both previous to accounts trends your trend - you kind the XX as days may utilization. for X-Tack. the questions. the over you XXX you utilization well I can Jeff, start hoping, and XXX and could the are to? and far me. some to utilization broader help frame some early how of

Chas McKhann

the X,XXX board with that team purchased example, on the exercises by on get the level done new to Yes. so universe, procedures being account that we first, The from U.S. of and there we've we And the and by both setting the are a one data, goal. done account procedures, relevant procedures the very since good based physician accounts - data for understanding the resection volumes glean be we detailed new well the is, the within has come got mucosal could indication - of on where good as to off as procedure pretty many And in of that, ASC of setting. as pretty can hospital a we've those in within are as X,XXX that

remains that's based terms many doing with but pretty each of cutoff procedures how they're a be high real year. and with - of to data seen, all in off that Now

already of applicability have, days couple a of large user still even in even because on are early I depth I of the that. early we're common examples and others those who frankly, continue hear users still learning what of accounts So, mean, And are see that - our universe as broader the it. OverStitch. X-Tack top high at the sort four going physicians And has utilization, with second to account in learning we of five pretty that levels with to we're question, involved that of to this. mentioned for some the the universe OverStitch. I or we within It's get on in the is data, the than said, but within we're say, more and base to or more pretty focus, learning - interested who X-Tack, the - curve broader OverStitch importantly, about to a institutions. a To of

who incorporate an identify the really ability engage dependent our potential on account will at level, train practice. and and users multiple their then So, into to be utilization

numbers right than And we more as data we're but to more now. you firmer focused and so, experience on sort of be that's give may that, on decision get what we

Frank Takkinen

Got little sense. you takes - anything puts could you - could of And specifically, it. strength with could if the bit nature then ESS rates, over more transitioning quarter? have the or speak growth the you out in ESG some to That you And a to makes could of driving general, share and us? that in OverStitch, the maybe trends, break you

Chas McKhann

account. Well, the using quarter the in number as accounts opening average said of seen per broadly what we comments as in growth a well the is the I in have

accounts, the number - so are that's U.S. now call using so XXX QX. is sorry, driven who non-bariatric. core And actively our the QX at GI, in of And accounts both in which it by

well the practices. OverStitch, as can doing bring you've start of on we're fact, also bariatric the are growing revenue where programs, using And lot that especially GIs. core from a side GI be of mentioned, and account, per they people in often I seen we And a training In as both the then lot if from are that's people there.

examples I payment before. and zone to suffice of of successful more that being be talk quite that the a get both little of using think have we it of opportunity into bit certainly the who of really customers the certainly new opportunity. to endobariatric through number say have want experience get embraced and a we mentioned to indication But sort able models that to a I having

Frank Takkinen

little rate establish as curious with should there I standard a go-forward specific we it. a on we for quarter. if a the anything is was not spending And sense care. expense, basis in one me. operating last applaud grow basis. Got I or is bit at business, on of should a That OpEx if the look a makes strong then go-forward know elevated. QX run to as about that recur may a

Stefanie Cavanaugh

point our is right. forward. moving I you're future however, stock is a the to quite to think is that fair related QX And able of units filing, indicative flow up the a out would What of cash I comp Q you'll the broken QX stock amount see It item. you out, that from No, options get in increase footprint to essentially, when our all QX performance-related bit for reports. to good QX from given in performance. be went our and But all of a the noncash

continue expect forward into we move quarters. So, that trend to moving the

Frank Takkinen

Perfect. Thank my for questions. taking all you

Operator

to to the back Chas would now We the closing have lines McKhann from floor further questions like turn I this for time. remarks. no at

Chas McKhann

thank even the been everyone, pursue us as excitement half second for rewarding got and and you, a to quarter, opportunities. second the joining business we've busy and more and we Catherine, you, continue Thank the energize of year It's today. attractive for

evening. Thank have a us, questions arrange like Matt to contact If any great you you Kreps from and have call please a would with you, Darrow Associates.

Operator

concludes Thank today's ladies you, event. This gentlemen. and

a Thank for You wonderful may disconnect your at this you day. participation. time, and

Apollo Endosurgery (APEN) 4 Aug 212021 Q2 Earnings call transcript