CLPT - Earnings call transcript Q4 2019

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Operator

Greetings. Welcome to the ClearPoint Neuro Incorporated Fourth Quarter and Fiscal Year 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

call of statements security this within are on meanings the laws. made may that include forward-looking Comments These forward-looking and statements estimates to and anticipated may and or include, without trends, projected results company’s limitation, projections the regarding plans, of expectations, prospects management’s strategies future preliminary industry both beliefs, statements operations. related trends could or results materially. Actual differ new events. future The no to obligation or company revise information undertakes forward-looking statements for

filed XXXX with year XX, and file quarter Annual Securities XX, information, and quarter the company’s the Report the on ended ended please Annual Securities December been for XX-K December or ended XXXX. of more Exchange on XX, XX, Commission For with Report report the have on the and company’s before to company’s on the the the XXXX, March Form Quarterly intends Form XXXX, refer for Form for which to Exchange and XX-K XX-Q both September which Commission company

All at the of the company’s the clearpointneuro.com. www. company’s from or SEC filings maybe obtained website

I host, Officer. Joe over Burnett, to will our Executive you. Thank conference Chief turn now the

You begin. may

Joseph Burnett

good Officer, Diego, earnings on morning, call. call me Good Chief Welcome to afternoon, and our full-year fourth With you, Thank today’s our is XXXX Hal rather. Hurwitz. quarter Financial and everyone.

most you the always, debilitating the works relentlessly neurological quality support, As to thank for of as disorders. we improve battling patients, of continued your our some team life for

navigation expect therapy across teams, a We in introduction company’s operations submissions, to our testament our or business, numerous In in believe growth program, an development which driven that to portfolio our by the clinical of plan our now point all history. XXXX. we products above performance made our new dedication impressive of market commercial specialist FDA result we progress and delivered of We four XXXX and clearly of by is in in and segments teams. our inflection

in $XX an Nasdaq-listed secured partners financing sheet XXXX, facilitated our In a were by XXXX and of our driven January teams. legal balance than of that and more company, that transactions strengthened accomplishment May million we and from becoming finance completed in us strategic

individuals a which applications And of multiple partnerships, to finally, the enabled exciting will therapy new of us the win not lead and biologics parts the developments years ahead. gene new coincidence new led all we are to Neuro, future to these in It culmination these feel names that our us to is corporate company of totality exciting with we truly ahead. a an change ClearPoint

numbers Just accompany the are as story the impressive. important, that equally

our leading quarter of We the in record Let fourth record XXXX. year in me metrics a posted another highlight revenue progress. quarter, few to a in

the cover revenue Beth active accomplished year Boston for revenue finished Total million more in burn at And detail than will more with a we cases record the Deaconess we this this grew grew XXX operations finished year $X.X new year, in and clinical at quarter XX% with delivery and Israel drug – fourth for biologics XX%, sites, cash a in including the quarter. all by Clinic. of from and to doubled, just more the shortly. the $XXX,XXX with than just Hal of Cleveland for for XX installations the year the we

you. into Friday lot more of hosted to is the as at technology We’ve work spend parties time progress We to an our put a This to partnerships, time Ceremony just to importantly sharing able and we be also to we Day excited looking are that City. and forward portfolio our interested look team. our to introducing site York have and and Bell-Ringing Analyst in Day with forward Investor are and NASDAQ Analyst our this New the first market we

as hands team, to management on as well teams future for and some development in are development. ClearPoint on-site have platform, currently our addition clinical that iterations the will we our demonstrations In of

this highlight I’ll clinical the And operating a detail four-pillar to on few point, over activities strategy. our minutes to provide the call and Hal the marketing to full-year come for for back additional to XXXX. like fourth our results then turn Hal? quarter some our to I’d At and for updates growth

Harold Hurwitz

Thank you, Joe.

consecutive were the For XX, record XX% XXXX, total December and ended quarter fourth is our revenue. $X.X of year-over-year an revenues million. This record increase of fifth quarter

months revenues increased a down compared our $X.X XX, XXXX, functional underlying by customer primarily of expanded X% neurosurgery due the for to to the increase that XXXX. Breaking $X.X period same increased areas, for availability. customers with scanner MRI and base utilization the was million an three product million ended to in The bit December existing

existing services and quarter of XXXX, drug customers. driven increased and related Biologics trials, the the to $X.X three million ended which XXXX for products December XX% disposable sales customer-sponsored from new by XX, fourth to and clinical include to product months of $XXX,XXX sales delivery increased for revenues, primarily

$XXX,XXX Capital utilizing surgical revenue the three ClearPoint, from up XX software, quarter. XX, XX to year X.X in XXXX the our related using $XXX,XXX now We ClearPoint centers which service XXXX December XX third for equipment have ended and of active sales increased quarter. versus sug prior product in centers the months fourth are

revenue current for and vary XX%, gross margin Gross compared the fourth upon than did the equipment slightly quarter, mix effect. bears margin have XXXX. margin revenue lines in quarter-to-quarter in other Gross a capital between for year contribution from disposables services our fourth same lower based period our sales which margin XX% XXXX capital the to was and an quarter of higher

our in model initial blade increasing However, expanding as razor the I’ve number and mentioned our active base, before, installed equipment the centers. of sales blocks of capital is our enabling building

were same XX, an operating ended the XXXX, development three our compared the $XXX,XXX XXXX, research XX%. $XXX,XXX costs, Detailing to of for increase months in December for expenses and period

increases increased fields in clinical attributable XXXX, expansion incentive marketing and $XXX,XXX to and of were to in for of XX, expenses tied million same XXXX, December our primarily months three to team, the in ended increase $X.X the period Sales an the compensation for compared XX%, sales

X%. in $X.X expenses administrative an XXXX, and three $X.X XXXX, months General same for ended for increase XX, the December were period the compared of to million million

With respect key million million, has XX% revenue $X.X $X.X few to were an System an to driven utilizing Navigation the Total increase a from Functional record mentioned, highlights. XXXX increased increase full-year XX% $XX.X by prior revenues cases, neurosurgery the Joe million, results, in of year. Neuro in XXXX. a ClearPoint XX% as of XXX the

XXXX, an primarily in delivery increase sales. ClearPoint drug for million due doubled Capital revenue $X.X XXX% service million of and to$ to and and sales of Biologics X.X clinical primarily approximately systems. product increased services related sales for both growth the revenue to to XXXX, due equipment

year equipment XX, the XX%, in primarily lines due margins for other relative of increase margin substantially bear by mix an contribution XXXX revenue. increased sales Gross lower-margin to capital XXXX, XX% higher down in ended from from and which offset sales, the December sales was slightly services, from to

at cash compared equity Cash operational our $X.X Joe May placement was And XXXX, December that reflects was XXXX has in PTC. of to XX, completion by a of led million $X.X continued an the million, burn. which year reduction private the ago, mentioned, as

will back I turn to With call that, Joe. the now

Joseph Burnett

biologics future, exciting gene year you, XXXX growth therapy, and for Thank both drug and of a execution, devices navigating therapeutics delivery. an represented preparation Hal. and

the powerful struggling our to a to change name patients Neuro not of both ClearPoint our could our neurological debilitating our a and than Navigation way about Neuro, more future of disorders. struggle to company underlines that value emphasize Platform focus think new – name We on ClearPoint excitement this with

ClearPoint. trading under of the As CLPT ticker, the today, on for our company NASDAQ began

to doing on been have growth date pillars let cover each within on we As highlights a to me call our you efforts. bring up few our four recently,

of for XX at In record one, sites pillar XX% at XXX demand grew. our from cases continue The Cleveland mentioned growth a two using quarter, in prior number surgical before, In and Israel navigation, the installed as We for the Boston Beth completed active in ClearPoint. sites XXXX, functional Deaconess in Clinic. we to in XXX continued two in additional I the products sales the quarter, centers ClearPoint as year. total neurosurgery fourth accelerate, up were a

site have encourages heavily we sites our our our neurosurgeons. to hospital approach X.X economics two-day adoption year, on provides ClearPoint believe which We’ve by and of our protocol, procedures this also is greater that utilization by XX and partners focused the better software using improving now We other fully supported two-day particularly, upgrade. platform

now and specifically the center planning across platform ClearPoint is date. surgical needs our cases that X.X last have XX in offers XX our tailored users’ more available to completed This feedback installed XX on active than many to centers, Additionally, ClearPoint X,XXX is platform been designed quarter. our workflow to today and enhancements, of based up from meet commercially every

at enable eliminates showcase next-gen procedure designed ClearPoint the progress faster clinical significant development Friday. Our and procedures, address be and next-generation we specialist on also made to formed need facilitate Investor team part workflows. SmartFrame, cases, to system a System for which desired of operating some will simpler at room the in the to has This in Day hospitals’ present is be the to our our

expect FDA be the We this first-half system clearance begin of and XXXX by for the cases to next-generation XXXX. submitted of end in

continued biologics our our different number we approximately delivery partnerships and in For XXXX. growth business, relationship two, pillar with drug in XX

this seek the pillar partner an as revenue with last next to include contribute agreements I in expect new we with mentioned agreement As quarter, replicate and our months, will our that activity blueprint new development increase a efforts we in partners. these additional meaningful groundbreaking XX

monitoring programs. proven very as and of further real-time and clinical unique it important demonstrates for precise are partnership the our We about and critical high-cost benefits excited – approach, increasingly navigation important

confidence years. and that months many new these to therapies approval also may of not of We’re ahead the feel measured gene companies the for in be in types commercial thrilled necessarily world therapy now

Pillar shipped number therapy our ablation XXXX. We first products. launch space successfully in our three, and of laser the the own revenue aspiration is in therapy

preparation from expect in market revenue has not do we working our for a meaningful progress with XXXX, therapy laser made in team XXXX limited While our beliefs. substantial products partners a therapy

submission complete We of expect the by and laser continued FDA our end XXXX XXXX. first using – to first-half perform the human the cases neural of we currently in our clinical

us With number in and sheet, advantage efficiency. in partnerships. smaller biologics to now global in on XX% operating balance of line on can a rate and OpEx, revenue the growth, gene leverage. of pillar various take but in focus opportunities We front year-over-year increase scale and strength therapies, our our achieved therapy to as we especially we Turning to continue we four, as gain top continue growth

the can our year week Friday, publicly Investor we’ll ahead. in we preliminary here plan Analysts help you We in on optimism announce is I that to hope taking Neuro. Friday what the of of this that guidance to at on other aspects excitement at expand Also, XXXX ClearPoint feel and all revenue Day. for share on place

and the With that, ahead operator call our the question-and-answer for session. I go over will to – call turn

Operator

Thank a you, sir. At conducting this question-and-answer time, session. be will we

state RTM first Our question Please Brandon from with X comes your question. Hedgepath [ph].

Brandon Hedgepath

Hi, the you ClearPoint at guys. then on guys your I wondering view shed time? if compete what could would technologies with some was who competition? that Yes, you just What and companies as System this light

Joseph Burnett

All couple for different right. to thanks competitors. Brandon. the There’s about of a question, think Well, ways

doubt, biggest without the done. a surgical of lack think, are I being that these number the competitor procedures just our of days is

the treated an As suffer each stimulation that million people in there’s are than X,XXX brain from are only United yet about deep Parkinson’s there disease, X States example, year. that more with here

something surgical the able move the up big treatments. eventual drugs, So we is in continued of need where that development funnel. to competitor certainly be to this of kind And higher that’s one delays

the necessarily they’re From in biggest MRI place take the the few suite. of some our the that live Again, enable in the one enabled operating systems optical where a really that procedures the a physically scanner. technology can of making their see actually room is that MRI not inside guidance, competitor and to surgeon very companies standpoint, we’re navigation movements

and When an operating are in prior a live these fuse patient’s MRI procedures they’ve done a CT. taken they room, scan it to

the at hoping prior on MRI still actually everything the movement image. CT based is fusion same a and place to is the the in So looking on surgeon

than more done are stereotactic of MRI still maybe scanner. So, optical what frames in navigation do using today OR we versus and XX%, in head the even again, procedures XX% systems the

our that’s competitor I say. doubt, would a without So today, biggest

procedures the types two things. But of different do

those you some you’re cases, and make example, for a would to guidance. the right in cases, close much In biopsy, the for be reluctant sampling CT do very very for brainstem where sure So complex cases most that to because to under you’re very where surgeons compliment, want cases, we’re tissue.

that’s Medtronic the is Stealth large example, of player of the of two in biggest. are the of used Brainlab space. And some those this system something system, just those in Those the technologies, are as – large The kind other an Brandon, some OR.

Brandon Hedgepath

helpful. That’s right, quick follow-up question. All a great. And then

given suite, or So given get something, guys tough it to these time in is are those is the throughout that are doing that limited procedures that given for to an hospitals, are the hospitals is there’s it MRIs that to fairly schedule day? – up time or hospital the sell MRI a for MRI both for in you guys hard for that hospitals suite? you the given that the Is hospitals, procedures,

Joseph Burnett

into we one of where a Yes. surgical to fair I’d our day. are procedures turn come our company do of a the very No, absolutely say a the we barriers scanner XX% and run diagnostic it’s our and in for diagnostic done that and scanners, MRI into. team XX% really question, suite it’s about in

Brandon Hedgepath

Okay.

Joseph Burnett

put you say, radiology scanner just time cases, The surgeon to in department. drape need. for time that a And get of bore. over like like has don’t they negotiate we So always the with the some the kind – surgeon MRI the they

work here. Now, that is, of the reality our in a favor things couple do is

in one can they more day. our, of a do cases the that diagnostic two Number generate doing scans an or would revenue let’s Brain eight Stimulation say, significantly by the XX is is Deep than MRI hospital that suite that implant

the So our at beneficial least a it’s to from line, standpoint the of do hospital, absolutely, procedures. financial on types to top

are that, And version MRIs, IMRIs, high-end hospital there’s these of all or as of the kind something they the surgery. are the vast by it called, movement Deerfield. Minnesota the majority sweet. a of scanner not cases, in company that specifically benefits surgical really towards intraoperative described of or big for designed The – they the second by These IMRIS, MRIs make thing intraoperative the based in can a companies owned it’s is when they us go owned high-end version sort a They have they team. team, suites, radiology in the

is not at really So an all. scheduling scanners those MRI issue in

And then stroke, patients least we treatments. to where necessarily advance. treating very aggressive XX have minutes suitable get that, level our disease minutes, in really some where rare three or in Epilepsy, four these weeks scheduled you with have “Hey, the or of we’re or third in we’re thing say, are only When works with or are normally is XX genetic to favor disorders to Parkinson’s to not some procedures at that some treating need the the there It’s be cases, next we that tumor in XX hours. of

So those more rare.” are a bit

Brandon Hedgepath

right. All for Thanks that. Okay.

Joseph Burnett

Sure.

Operator

[Operator closing request turn gentlemen, and remarks. back questions, I’ll you, be Ladies no Thank additional there for Instructions] it appears and you. Thank for to management to

Joseph Burnett

from us All your confidence today suffer very these advances ability medical right, who thank neurological provide for continued Well, joining treating in debilitating Diego. and you our for patients to diseases. important in

partnerships and cases, in to our biologics ahead in neurosurgical own therapeutic our tools. expect developing see core We growth our

event site we Friday excited ahead NASDAQ at be for what off will of year year to results. kick progress in excellent our the and the market another for this also and XXXX We’re exciting hope

in information interest Investor at press joining have contact Darrow upcoming using Events, contact release. you us me Relations of Friday Matt Conference one this If our in the our please Kreps Investor Associates, at our firm or

meeting other the and events. rosters you’re upcoming to work will to ensure We added these are

you your to Thank behalf our On our entire much. very thank and ahead. team, look for of we on progress reporting forward you support continued

Operator

This you. concludes today’s conference. Thank

all for time. this You lines participation. at may Thank your disconnect your you

ClearPoint Neuro (CLPT) 12 Feb 202019 Q4 Earnings call transcript