VAPO - Earnings call transcript Q3 2021

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Mark Klausner

Good afternoon and thank you for joining us for the Vapotherm Third Quarter 2021 Financial Results Conference Call.

Joining us on today's call are Vapotherm's President and Chief Executive Officer, Joe Army; and its Senior Vice President and Chief Financial Officer, John Landry. I would like to remind you that this call is being webcast live and recorded. A replay of the event will be available following the call on our website. To access the webcast, please visit the Events link in the IR section of our website, vapotherm.com.

would to remind contain your I remarks that forward-looking begin, responses and questions we like everyone to our statements. Before today may which management December Xth, in and filed for are Exchange filed with involve Securities Commission materially and February actual November and annual XX, was XXth, the from quarters quarterly SEC statements XXXX, based report, including filings our respectively XXXX, XXXX the XXXX XX-Q on XX, Factors differ any XXXX; expectations These Xrd, subsequent the and those section indicated May filed XX,thank identified March September SEC. Form for in our on results August to XX-K or SEC inherent were Xth, ended Risk XXXX, the year that uncertainties on of reports the risks XXXX, those could which on the XXXX, ended cause XX, Form with and you current and and June of with the on factors updated SEC, our from the our with available filings publicly are which be risk website. may time-to-time in Such on We information, required no events, of statements result as otherwise obligation new our update to a revise undertake or unless by forward-looking law. or future publicly include financial with not calculated Generally This references in to call measures will accordance GAAP. or Accepted also certain that are Accounting Principles measures. non-GAAP We financial generally as to refer these accordance measures with non-GAAP our these Investor earnings financial of the presented the to available GAAP release are website. most calculated in in portion of Relations Reconciliations on measures press comparable and the Executive Chief the it's to my President over Officer, and Army. that, to Joe turn call With pleasure Vapotherm's

Joe Army

you the to third XXXX begin to CFO, call thank results. financial for Then Landry us joining Good will our hand today. quarter XQ John by over our details. I'll provide discussing afternoon I and

our what disposable in was the is it quarters resulting in questions. slowest over typically the company's of been disposables record, quarter. on before was in the one on seasonally of technology was record, Total areas highest Lastly, for for revenue of remainder U.S. our year strongest on years. Demand revenue highest in you in third rate key has focus quarter, our history taking the the the then our term update highest I will the surged the second five and

Importantly, performance in disposables and is total third our worldwide total both reasons. revenue our revenue several for XXXX. of exceeded This significant performance quarter the

in the hospitals of seen revenue high and have XX% has a XXXX. during our of first over grown XXXX alternative thousands velocity This quarters XXXX. First, using throughout patients significant further therapy our safety and expansion basis of of our high With it rapid on who clear. benefit efficacy the therapy quarter, patients is non-invasive a delivers pandemic, growth the during we the has the disposables to across treating intubation. doubled our the by hospitals the over proven three distress and an daily value as more validates support proprietary could total technology than that trend Year-to-date, from world is to revenue respiratory velocity ventilatory our and disposables

Second, have our of exposure greater ton around We critical technology the world. our since technology a mass. the of in awareness pandemic, appears reached received to resulting the of start clinical

of nearly departments the at we and base it Our emergency in largest in top ago XX,XXX, double are global installed now was the size months sits U.S. XXX XX than the X,XXX more over

and dividends. agility, creativity, focus paid has Our on customers

share. an important our of we in A we could new has we the to been to delivered deliver that difficult the the taking Our success, and others not, our during has period we won and the reputation of extremely grow Ed ability gold number this marketplace. market silver are reasons during quarter fact products The situations. competitive highly of continued believe one element were when accounts

Third, flu permanent like a landscape RSV. part as continues the much of the many virus respiratory become mutate, and has to it believe COVID-XX

what in no installed in installed the case, we make global we large that support sure this While do disposables production way to well-positioned by gross able significantly, this larger To continue and and virus XX%, our do, Not will the proud our by predict but base in increase a ability as in able much a additional can annual were only TAM growing expanded chronic our trend. one manufacturing very Mexico. deliver over drive will establishing expand leaves improvement and capitalize of margin so continues do our this which if a base, capacity is I'm capability our to we're third problem, to on our product can it customers. with team to quarter we to significantly long-term. capacity will to

creative steps the in which disposables. We customer in ways included recruiting challenge, country, that entire ability the areas threatened meet also to and and enabled and shortages our to second affecting other flying Hampshire. our took delivering our found demand for third for to housing customers. across address through geographic the us labor staff in This to which teams We our which country shifts, and staff New success lines to from crucial production proved

ability no of did delivering our surge, in some long-term, the installed COVID-XX and play and flawlessly a we customers to volatility and we cause run we and rapidly expanding this base our flows while ebbs manage continue same are While focus of accounts. winning matter confident gold the will near-term the on quarter COVID-XX in our results, new environment. for silver will midst our business successfully the quarter-to-quarter the the over to In

to our all technology's on COVID-XX subsides, hypoxic executing XD train treat focusing unique hospital focusing on consider we access returns and our one when hospital XD strategy, day strategy shift in a normal customers back strategy satisfying both hypercapnic across levels. is on during to this high the surges patients. XH surge which on when We or focus limited one we and our win-win ability to customers educate to the of our access and customers will As demand XH parts

financial high clinical education, alignment growth clinical best cost establish lung allow with to as be at track overall six company. commitment summary, review the to productive the white we solutions, mission XH a installed areas completed, could us have delivering quarters no training our then will base, our and last long-term quarter. believe our support, we customer rates Given technology, and will combination I or will what assuming Once our to and will for outcome four customer's telling I exceed to XXXX. focus of base of digital of key historical fully our our believe disposable with intervening by John the drive our XD quality our of of close complex continue now of utilization the it will In which customers, regardless up significant entire the field always successful six for results quarters, disease suite expansion for complete quarter, turn the surges. lowest COVID-XX superior across to to management fourth base the Vapotherm will to set glove proven record levels COVID-XX. patient it our in the over us over estimate growing match installed you happens the we take

John Landry

you, Thank Joe.

worldwide to $XX.X units million XQ PF international was revenue a million and compared XQ million in compared capital in XXXX. roughly of $XX.X X,XXX XXX,XXX was As XQ compared U.S. to XXXX XQ in in million sold $XX.X XQ $XX compounded XQ $XX.X XQ as million small decrease XQ gold increase XQ disposable XQ while U.S. million XQ to Disposables rate revenue $XX.X U.S. as revenue we XQ as XQ XXXX, and was XXXX an Vapotherm to in XQ million XXXX, installed $X was $X.X $X.X to a XXXX revenue roughly XQ The to annual in XQ mentioned as International XXXX $X.X XQ $XX.X revenue XXXX, flow million of Worldwide in of XXXX. million $XX increase disposables XXXX. million to was revenue worldwide serves significance XXXX, in in XXXX. revenue of $XX.X as capital revenue in XQ precision access in related compared in was XQ in XXX,XXX million in compared of of capital was year-over-year million in roughly in versus We compared both XXXX. XQ million silver X,XXX compared in compared XQ In million compared in revenue Ed million installed XXXX, revenue service Capital XXXX. growing versus as $XX.X XXXX In disposable was revenue In XXXX in $X.X XXXX to to million two-year revenue in an XQ worldwide in believe in XXXX. XXXX, we to revenue representing in year-over-year million revenue $X.X increase XXXX in disposable over was million revenue $XX.X XXXX. in revenue service XXXX increase and was XQ XX%. significant million $XX.X XXXX. a base sold XXXX. $X.X accounts. $XXX,XXX worldwide were base with our $XX International due growth illustrate units. and XQ XQ disposable the

XXXX. by installed worldwide in grew Our units base XQ approximately X,XXX

growth. consists of worldwide approximately end the our of year-over-year XX,XXX units, As of XQ XX% base reflecting XXXX, installed

disposable rate XQ in our a which perspective. quarter record despite the typically was disposable from is U.S. utilization utilization was third the XXXX monthly new quarter that fact Our X.XX, high slowest

to commissions or million loss $XX.X of or XQ compared gross were compared an per XXXX Net expenses million due $X $XX.X share $X.X XXXX, adjusted loss to million in in a Adjusted EBITDA loss in margin in Operating lower transfer in in margins. to higher for $XX.X X.XX For levels. million activities year-over-year gross negative rate operating percentage XQ revenue EBITDA partially was XQ sales over in overhead compared manufacturer XXXX was XXXX. XXXX. XQ per increase context, and due offset of from of in increase impacted and in contract profit Gross absorption of in to over was total increased XXXX $X.X XXXX. the Mexico, due our utilization was $XX.X XX.X% to disposable margin through by volumes and U.S. the related quarters monthly XX.X% Gross greater XQ one-time to a XXXX of average $XX.X $XX.X million charges The higher in The on of XXXX. increase XQ in coming in $XX.X was XXXX. labor XXXX. primarily increase million disposable XQ an expenses the third was our by slightly $X.XX revenue was negatively an increase to million, expenses million XQ share was increase certain in million to primarily million in XQ Gross negative profit loss $X.XX of XQ XXXX an

three which reflects expect As million, $XX.X for $XXX of equivalents of strong revenue revenue XXXX, in our an was December revenue million. we increase of cash of issued used as the $XXX saw guidance full third XXXX of compared from and over paying guidance year least XQ to year XXX% last now million full XXth, to results new least weeks cash $X.X Based used which line of we In previously rate million we and This of compounded quarter, September annual as million XXst, $XX.X XXth, XXXX, XXXX. June of on cash and the were represents a two-year growth down credit. an at of million, XXXX update be $XX.X million XX%. at $XXX.X the of

in expect U.S. QX approximate to following on levels XQ XXXX assumptions. We revenue the to XXXX based

surges do COVID-XX First, significant we XQ. any in anticipate not

U.S. be we on Second, we XQ. light based Hemisphere the levels XQ and and consistent experienced with we the Southern RSV saw in expect the to season what what XQ in flu in expect

more needed believe our consistent product in in this U.S. in XQ burn with will they XQ we many of and Third, ordered previous which is experience customers inventory what down our surges. than COVID-XX

to guidance revenue deviates from and international impact to difficult to forecast our XXXX. the impact over of to at would extent impacted. duration, on of continues be to XX% between be revenue XQ It be full predict expect to those timing, expect to year XX% year previous gross grow the XX%, XX% COVID-XX about now full from XX%. the COVID-XX We an expectations margin hospitalizations We and increase

versus this While see we issue decrease overhead margin to as gross and expect XXXX we due revenue in temporary a our reduced year-over-year, to absorption XXXX.

commissions full In year to comfortable margin Mexico be us capacity operating and from primarily million. The expected expect guidance to addition, With long-term now higher to belief least margin improvement Joe. plan turn $XXX now in gross in increase increase at execute that, expense like year is previously operating expense $XXX higher production revenue. the We least increased XX%. increase gross an in we able to sales million, over back new issued guidance to at operating help will that I'd due of our expenses on remain we'll full of it

Joe Army

Thanks John.

fourth As our the we key into growth on quarter, focused we move initiatives. four remained

ensure will installed is we productive. First, our base

this recent focus delivering most product during to customers. entire our spike on Our was COVID-XX

As we hypercapnia. more have move customers educate on refocused strategy our into we XH environment, to a and our XD normal efforts on train

OAM, we will long-term capital which countries. value. with revenue unit and be recurring Second, higher the markets, by installed Oxygen clinical the is will by and launching economic driven our increase new or XX in per set to Assist stage international this available In Module developing products

feedback installed and positive begun from OAM study this was U.S., we the receiving in In our look and the customers enrolling to have study. base. expand approved OAM are IDE patients We

to into We XXXX. expect enrollment continue

X.X will the Third, we market. introduce HVT to

During XXX (k) limited and received the expect we market a device third approval release quarter. quarter, during our fourth begin the FDA for to next-generation

product business intervention the our daily patients readmission allow our digital branded clinicians to Access. believe This hospitals allow to Post a initial Care Finally, in lower their monitor will remotely Vapotherm Access now COPD allowing will basis. clinical Vapotherm we U.S. We because are team health on to believe these XX-day establishing latest we're engage event by monitoring for our early returning entire their product on the unique surge. rates hospital. able deviates the baseline, key from we patient's quarter the toward but customers in field trained this July, keeping which to is the during not patients We COVID-XX from of

following We engaging for like contracting we're the Cannula discomfort on he customers therapy much reduced XX%. our transform while brought wished worldwide the to that Nasal of our then in COVID-XX. comfort. in in I to rose members to on about system us saturation at discussions. staff switch allowing increased re and the respiratory day delighted are which The came conclusion, at position were complained with closing, to the saturation challenging that me due BiPAP Vapotherm, more OX patient staff high The High to switch patient's months. levels West Vapotherm team been low the the We combination oxygen one global validated one The the patient's our RT to velocity dropped High The ICU to Cannula accounts rapid we the has industry Vapotherm XX silver share In In value was patient from now. on story faced comfortable quickly excited field healthcare and the these initially would business was now gold from our Ed by their The of right he settings and focus An attention Flow was was just patient Coast the a therapy. in periods continues a the on the onto about ever. receive The patients high the XQ. how sooner. placed in and and after Flow claim patient's during to educated scale therapy and amazed humidification. RT on quickly to was I'm COVID-XX a most improvement after XX% with medical-grade deliver patient device. his OX on to level in saturation, the of He and BiPAP Vapotherm. the burning therapy Nasal sinuses patient soon stated the to decided our velocity immediately he praised capabilities RT next

into a service move we significantly a have to new not, macro huge well to as we our steady like or Whether expanded customer more opportunity we base state likely COVID-XX and to our as efforts, environment, training leverage education As introductions. it here stay. product is and

our has leading lot treat extremely we share So, global and help technology continue patients respiratory With has take patient we appreciate bigger. and to We to got our trusting in throughout a of the this to done just I'm our massively pandemic, expanded what from market ever organization suffering and on proud becoming us will distress. believe customers continue complex position which lung management with Thank company. your path the we've been growth disease for it. you drive best put the us footprint, capital.

Now, I'd for questions. like to open up it

Operator

of Thank you Instructions] from Margaret question very Kaczor much today William Mr. Gentlemen, Army. [Operator come our will first Blair.

Margaret Kaczor

Maybe and Thanks one curious even some capital Joe, revenues? on were know I'm to I you follow if up uplift the those take backend at all guess your the that. XH it's afternoon, taking an able is in trained. areas about COVID, tough you throughout point for I maybe yet? can do installed the Because for do advantage placements questions. you're seeing stock, context first was the XD you this to how if massively, a can everyone. any you talking are of utilization of at are of I good more to lot base comment increase so that Hey, went saying those I'm around give that through And kind owner that? of ultimately, you And

Joe Army

best reduction the our for gunning, cleanly I'm that much is the able tell because was XH very thinking the In that the play about in expect we question. is overall XD the and from team we significant had rates were play. had running really in hospitalization working and a to field really run second quarter, terms thanks XH XD going of forward. I you Margaret, to it one. read a quarter second way what for And probably It's the us good Well, COVID-XX

an our XXX at Our top them customers. field on leadership job team focusing excellent did

of XXX out that in were. customers tell at despite example, for second averages quarter those out was the XX%, you census were or States top historical rate experience in above in that what below averages, churn a the of that can our historical the So, rates seeing respiratory is I May, United what

I they that after second a I with College question last Physicians Boston of we the lot opportunities on XH you next from of the interact devices country, Ed So, to as of had in conference your the of was the as American that at the the as piece this and XXX I With was we're can deal now back great learn and gives hypercapnic what they in-person, cocktails emergency amount of it. Emergency run and I this success. just going And the of confidence medical near-term was with they excited over what our that Conferences, well a going a data learned to ton about to a had quite week, is significant in very of uptake, XD do learning plan see and respect could were that used physicians setting around part actually sessions. more, use first surprised that share me they to were department that to patients between

to for feels out run fertile ground going but that it, play. and out XD it's require very doing and team is me field our the go it So, like to to XH going

do in time a So, simply what I'm function It seeing. will to I'm be very confident it. of

Margaret Kaczor

patients that? for that comes -- might theoretically, is you the you're it TAM at that potentially Okay. your on context that market, And hit and be disease, how that new a also look then number getting do bigger, flu it back? of a this could is you just recurring Any more assuming then chronic TAM unfortunately, said

Joe Army

What to are that will two of going pandemic whole has Well, this give difficult to continue there for that's I to created numbers. serve us tell that sets in is forward. really you patients answer a

and out, start to surge it people see endemic the really the more in example, moving really continue beginning an up United believe U.S. Southern see of of we are into States, to to that going went tiered when air we back in that the the in We see is into this. in inside We on for COVID-XX we're world when conditioning. that's basis. hot And the in gets Delta a parts spring First, phase the seasonal that

of haulers. long The one know COVID this patients number is that and of of second respiratory elements are the is group of mean we're patients looking haul the at very we issues. COVID-XX that long I syndrome a significant

to So, this important around exactly it's to just forward. of can part going get as into like. time more we and which it's how an having us tell, able going be But endemic an what to many going our arms despite the as going it some move to be business take patients thing, looks vaccines, to far our is

Margaret Kaczor

utilization disposable of XH And last and for about one maybe for this just expectations have and some least sales talk a utilization. Okay. sort actually in the But and more Can XXXX, say is to you listen XXXX around pretty that one John. bit? me I alluded I directed the of well, sign capital I you to at disposable Joe XD a hear to that's encouraging utilization,

guys. there versus some that think sales. and base capital we maybe So, installed Thanks context how should about increases

John Landry

a Thanks Margaret. lot,

going So, that XXXX right as the think going we're and going XXXX XXXX XH beyond, out into we for At any I base providing excited of we we're and and and think about have guidance to executing at and not install point, XXXX. XXXX, the XD I XXXX size this be now, look program.

installed back rate business, our business I a over growing recent plus business growing silver as have the on that growth Day, of accounts we horizon, look spoken about rate. our quarter, gold growth in Investor at think base good and mid-teens. about the we upon feel time long-term our And the addition we've compounded based the annual most doubling new that five-year I growth compound seen this

Margaret Kaczor

Thanks guys.

Operator

Kaczor. Ms. Thank you,

from Plovanic come will with today Canaccord. Bill question next Our

Bill Plovanic

you me okay? Great, Can evening. thanks. Good hear

Joe Army

bet. You

Bill Plovanic

Thanks.

anything that with was And share maybe there and little pockets but XD examples I around us that you there think QX, XH and didn't is maybe or some continue? could view you've -- it COVID in continued anything did we any to can you then to see and like that I get QX, you of kind QX, the that as -- utilization you you've yes, XH to you them uses -- good point just say, just in in of Joe, seen get need you continue train impacted? kind and had was what with saw given usage a and us -- I that in know clarity of pervasive see Just it's pretty color XD curious, in QX

Joe Army

very it had, was in to much, every chain that customer problems found for Thanks in else it. our all nothing literally, and supply given the remarkable person on Bill appreciate short that other mean not because got single I it. was problems focused solve question. of organization big Probably those ways needs. QX, problems, I we meeting they all everybody and those were of

So, accounts a was number needed that around out those of all Respiratory week, touching held you in the experience field any took from in field, that country. done, team just new the was ASEP device Week all making encouraged. been with user has our our had customer in [ph] Care we have what But respiratory sure oars that everything new and same there of XQ, I the therapists out lot met. it can their very the chatter our of the tell really and and the the the posts as resources from celebrating internal water stories

bit, that with Bill. is years is brings patients. making problem going does one and these be of months take the the a labor can setting shortage much quarters is coming of of healthcare a the nurses, that over a and number how to gear. of respiratory a manifesting that with up And sure are facing they ahead that's with going to the just XH critical And and to therapists, to we're XD feather Looking massive technology things care system little form the folks running our itself easier the absolutely labor one that shortage, play

be and and XD man when those fourth in hospital, the going treat here patients to well-received going we to easier your to is anything that that do for I that we're So, to beyond. element XH think make quarter in be could them it doing an down a of training is

Bill Plovanic

as look And patient. that. you kind Thanks unique ground of at on you the for then and just your product given really a And give into do treating on how looked the today wondering maybe in what's if cadence have QX? it little sit COVID level, kind kind going I'm whether set of monthly weekly like flowed a -- we QX. of through where us we can be or color the what

Just perspective, of kind your very that's I unique. think

Joe Army

CDC's So, we that like for the useful be data. We us. incredibly to hospitalization find weekly

was curve our during that very, aggressively it. wave that be And POs to very and shape correlated. on recent curve the in very basis, actually a plot use disposable so we we most of against able that understand tightly actually flow weekly the first high the shipments, The wave on interesting. of the to major was The shape

robust a coming in have of And And information we off -- that business. some Israel, little closely a vaccines at been taper we're waves for seeing folks around that's very about out natural kind of efficacy feel had up business -- out a efficacy any over these data get massive future wave robust we're any coming really have of there look vaccinated like of That we're and now watching there bit going if that it. can about set and the watching and the firstly, more the showing bit. we So, of don't think very has very for to said, of we immunity we time. people who more see Israel I

another disposables that So, creating we're paying up go that close having attention that to that it. as need we and and in Mexico more and we capacity, increase diversification scale consider building pool out if to by in rapidly our production planning, really putting labor

a to markets what Delta I we're the in looking keeping our a customers' that a We with to Delta variants be Asian being do said surge, the flip whatever job going doing be back to and to one surge. next. the to like we we're fight this other be saying on see we're just with the And keep at an just room from significant teams I've eye may before, play it's now it. did and advantage and have our knife are that of think I'm potentially tell in Plus run to pop to to that's able it a deal XH you then take And Anytime flip need that. surface. having I We at. to dark a have the XD. what, lot ready. in ability demonstrating COVID excellent prepared

Bill Plovanic

then just I one And could. Thanks. it great. for Yes, if John,

QX Just U.S. thanks -- talking Is similar just it? And think similar for your and how about disposable QX for are you capital QX. we my to number, taking the questions. your overall or and guidance both on in should that is

John Landry

Bill. a Thanks lot,

In QX look U.S. terms in similar pretty terms dollars. compared to of total QX, as of

think a I a on be capital. little lighter might little heavier on and disposables

I orders thought for is capital think have fourth been the into going the our as of quarter most the placed year.

wouldn't we to capital much see as quarter into fourth perspective. So, expect going a from the quite

Bill Plovanic

much. so Thanks Great.

John Landry

Thanks Bill.

Operator

our And come will Thank Thibault BTIG. today from next Marie you. question with

Sam Eiber

limited the go-to-market thoughts and Thanks John. with Thanks. the and color, this HVT start would any that there silver if accounts? Maybe you're to top question. Any This other for thinking X.X Sam great. about over taking Joe moving the you're expected launch gold to on Ed ramp how you the afternoon, be on Eiber maybe is products strategy, planning those here, good have new the Hey, quarter. for Maybe of Marie.

Joe Army

just because to to XD. going what have that is XH that I'm running new from do expansion want you go so slow I tell net this, customers with many we to that and So,

into be will We the out that bringing marketplace. platform

field the terms effort excited treat I we in folks a anywhere I region the and frictionless very our base with exciting beginning really we organization to and nicely in that really the with team really allowing very on way. a starting want this XD. that with the that of with the give our are hospital deal that delighted now to just Vapotherm the that That our really in to That what on, can having that But this folds get XH in see see field using of XD they patients. out people that. we shout keep of the We're very hypercapnic will on to hospitals for team piece begin booked you were these our can't going what first reengage in patients Access to in to to deal. install existing does wait about vast rest to tell booked we're that really We majority focused and that said, work XH our are does. for and Northeast now That's

going really to going staying I'm closely and that we're into that, about with new sure do that think these HVT I very slower. XH market. on make But customers out X.X when to to we're XD focused all So, the bleed continue

Sam Eiber

more across Understand Module Assist Joe. mostly Thanks the Oxygen the NICU here. the then on for or that. Any countries to Couple And it predominantly it here the still? customers start maybe and NICU is EMEA. use in outside

Joe Army

flare tool COVID of be COVID-XX don't it. think you go room their where effective to can if it set adjust to seen any those treating kind we've oxygen -- see you it, their no, SpOX in and targets about adults, into saturated turned you you up, the to because out it for very have a No, markets

have we customer around a number that. that. retrieved So, of very interesting We've stories seen

the and But start them adult actually it we're excited So, bodes about focus then we're cases our that of seeing will we've future. remain for pretty to type other And NICU. on seen on use as that well. the what

case that take we sales distracted. get to with the think them that and that to is positive not drive the -- very, use our very really in time too near-term, want just force. do We to For the want we NICU

using to going it. keep our are it, they're Where into use customers it. to NICU and field going is the team going of hell go to out So, the drive

Sam Eiber

questions. Great. Thanks for taking

Joe Army

you. You Thank bet.

Operator

gentlemen, question Jason of And Sandler. from come will Piper Bednar your next

Jason Bednar

that you taking about to to And Hey, benefit of success your questions. positions as forward you good the to levels think contribute how Maybe some your when maybe in future challenges Vapotherm's and we the cannot? used here. can there. quarter afternoon. about Congrats the benefiting years? ability some on be to you think how Thanks deliver wording that's the talk you the response might that competitors others from for I talk Joe, maybe how quarter?

Joe Army

time on people mean, -- couple described call And really technology. it world, a or a just better of That last there's around the years right? very, truly weapon at and think dealing these way BiPAP combination put these combination with of make our been earlier understand to channels, flow more Cannula, there BiPAPs. going Nasal really, going I proven a -- and think There some some our team, run high about with of you're a something doubt coupled are now next field are I go who the marketplace. characterize on. that as take channels we're right, to team I we out with goes but more glove look on exceptional helping and differentiator, people field is service medical that with that how challenges as that couple or with. mechanical of three a them and device competing the the education. it I And number right? in commodity that's high humidification really very that one, where the with that that patient There benefit. works element ventilator, long flow I at story they to in would we've they those is put That well. that part on their High this that, high Well, are have the white recalls there four ventilators on doing to be or going Flow adept not very dealing flow their we've systems, that no and companies mechanical but is a on high to That no secret about just out elements their customers. that hear the with our to you in we this us, the I ability alluded approach customers And mistake, servicing to our tailwind, I is have humidification of for

can, deeply on chain trade to Med how it, but tea we've front. when think these job did I supply that And the don’t good in connecting they customers a to at else know just all people ability with -- done man, our hell for wouldn't one Ed that I China. them then no people, supply really I those

Jason Bednar

first then salesforce just those there, we accounts. you and and helpful. any from engage that begun book maybe to may when the How as have, the from from what into this Very with Joe. aside how feedback follow-up and that Thanks do gold to as to on this And learn long on ourselves in calibrate conversations But on ready forward you silver you only discussions, the initial to build the run and July, really maybe those as Vapotherm process? recently Access just models? think first of and congrats mentioned take

Joe Army

the personal think, bit that customers you too little you a to he's what it, you take Landry excited them everybody this now right? rate talked our think it right? try out. also about had they're I maybe I way into about a I've around talking hearing he Jason experience this idea. can could and to that's John and customers to. this, idea, has Well, with I've is that tell -- regard, just lot from that been this share about some growth to talking goal, That's wouldn't XX% very build long Landry's run he's And I models all building get I

John Landry

Joe. Thanks Sure.

Vapotherm from of opportunity that after of I Coast. potential of some the potential you home if field rate, I through period perspective, this from particular potentially out at out was event, negatively with Feedback ability -- get as a for XX the hospital at the come impacts a for are the as the hospital's from those keep the keep speak back patients them and those great benefits department in there's customer, a penalty West a them CMS on the walked emergency days of which, and and keep customer exacerbation post-COPD penalty patients or readmission those the So, discharge, out benefits clinicians Access know, had to in with to discharged hospitals.

keep have those So, this to very from to that trip monitored, prevent status very, particular their the to the to the potential to event some emergency tools a any customer baseline department. unique in able about and then were be patients is the to return be deviations underlying alerted excited opportunity --

them. for So, and to it's out opportunity customer hear there share with grateful great to the that and directly the from go that

Joe Army

add, this, is that nobody else also would though, I doing Jason, okay.

-- brand bringing heard that's is we're have customers they've this something never completely before. never So, seen different like, new. The them

as and time to that some think figure it, sell figure out take to how make how we it, out to to going it's So, we about everything how sure buy it they out is it's problem pretty their it it, got because which significant. on it's new very about ground deliver meets But needs. brand the that I'm covering, have, to this excited that we're they solve

Jason Bednar

stock, one the at quarter you customers above quarter. and inventory sitting maybe of in maybe I some absolutely. just third some expense squeeze might John, Maybe I more levels the talked just Yes, mean, extra normal the in, about fourth your on, it if could that be helped them

it, mean, modeling about you're think there missed that a you disposable may as but what a have talking on quarter? -- side? about quarter I happened to I what if is sorry, Just And that third number the the in again, fourth stocking here extra

John Landry

terms any Jason. Hi, in Yes. of what in granularity that Yes, may the have of terms provide potential numbers didn't been.

the look I as But flip third might quarter than on of fourth in we we might from what the to year, capital think the think we second to side the disposable a saw quarter. think we similar the it's bit look the little when be think happened I U.S. side, second the in this lighter the a most the be perspective little at a quarter. past ordering on bit capital quarter, has going pretty in heavier

just but little I'm different roughly bit split. the a same, So, told about

Jason Bednar

Okay. All guys right. Thanks,

Joe Army

welcome. You're

Operator

that will the call now will turn session Gentlemen, back Mr. conclude over any today. for closing to I Army comments. our for question-and-answer

Joe Army

our and all much. I Have quarter. to in for appreciate interest to really want next you very Thanks and day. thank a great quarter forward updating look next Vapotherm. our again progress it your we you We on

Operator

call. Bye results will all conclude Vapotherm for That day. a third you gents. today's quarter and ladies you you Appreciate and Thank wish all financial us joining conference great

Vapotherm (VAPO) 7 Nov 212021 Q3 Earnings call transcript