SILK - Earnings call transcript Q2 2019

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Silk Road Medical's 2019 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

I would like to turn the conference over to your host, Ms. Relations. Investor from Lewis Lynn Lynn, please ahead. go

Lynn Lewis

Thank Thank you all call. today's in participating for you.

Erica Executive available Medical Rogers, Buchanan, are the June me Joining Chief copy A company's Officer. for quarter of today website. XX, results XXXX. Chief release Officer; Earlier Silk the financial Road is -- press the ended on Financial Lucas and

Laws, Harbor you include Before we Securities of forward-looking which call make Safe are that forward-looking statements the within will made Federal in begin, Litigation I'd are Act of future to provisions that expectations Securities to performance that like call or statements. to pursuant contained during statements Reform events, management to of the meaning results predictions or statements remind Private XXXX. this the relate Any this

without opportunity guidance All current which financial future those in growth in estimates and forward-looking and operating upon and our assumptions. our hiring, training, and XXXX relating and expectations, trends operating expenses are examination our physician and including, based organization limitation, for market statements revenue of gross our margin includes various for expectations for reimbursement,

These differ by involve reliance those to results events to or material materially statements. not these cause on uncertainties Accordingly, risks our could statements that implied you statements. these actual undue forward-looking anticipated should from and place

and with Securities refer public offering. business, a initial Risk list the For in and Commission Factor XXXBX description connection and X, uncertainties to XXXX the please filing our of of with our on risks associated with the Section April our Exchange

new of revise projection today law, future as XX, events otherwise. or the time to disclaims obligation, by of sensitive information except information, or broadcast whether or XXXX. This update any is July Medical and only contains or because statements financial conference as intention accurate forward-looking any call Silk required Road live

over And with the I'll Erica. turn that, to call

Erica Rogers

everyone quarter Good call. for and joining second Medical thank earnings for Silk Lynn. Road you afternoon, Thanks, us

Officer. Financial Buchanan, our Joining is Chief me Lucas

From outcomes. minimally beginning focused key Silk on patient intervention. outcomes the been and is has invasive advanced the relentlessly believe successful We technologically Road Medical to

have of establish As Revascularization disease many new standard pioneered which to seek of called the treatment a carotid you care. know, approach artery Transcarotid we Artery as we or of TCAR, for

vision. to and today Being by sharing his really left wife. Earlier spending Jackie this like his matter with had our After tests, fainting eye year, doctors that a the journey. patient's XX-year on Jackie. carotid after blurry artery. begin spells Two his doctor would time treatment in blockage I visited the experiencing he TCAR call determined to and fishing lake one old out various things severe

plaque to leading In travel break embolize away cases an interrupt wall towards like arterial brain, from critical this the ischemic the or blood stroke. can often supply

I Texas & the at do why who of Following of Vital This when Kousta a Jackie blockage. it what treat Foteh procedure Foteh look life at Dr. diagnosis, Heart and do". he is Vein lake Jackie to his recommended face his "The and on I the the quality importance I said says quote for Kousta talks TCAR about all. Dr. visited understood

from the than In most. two to matters the hour he able base flow blood was said immediate know incision "Improvement that almost wife on the to back brain. the then system away procedure from reversal started and XX directing on two an could things operation ENROUTE water debris The wanted of within after Jackie at Jackie's focus with lake." when about and was the Stent. was less to neuroprotection he hospital the lasted that small ENROUTE the surgery enabled over the neck just him Jackie weeks get back The embolic to and place hours. Jackie's The released was His all on

of to specifically risk power return stroke we treat of the allow can demonstrates patient potentially experience a to is carotid patients reduce and this devastating Jackie's the and everyday. and all which quickly how strive enjoy. from approach day, artery story of type safely a disease effectively TCAR, they the This life

of commitment core support the Silk At Medical Road to clinical building a TCAR. of is in evidence

this component are TCAR We evidence eventually patient is the clinical can robust that confident our benefit make drive more of who standard care. new reach the key adoption, broaden to to and from procedure,

X updated quarter Project both continue from our VAM. Meeting to the Annual results with TCAR Society which post-market we of the ROADSTER upon Vascular of were and During evidence superior Vascular build Surgery's at or the our Surveillance study presented

not data Results represents of disease. demonstrated CEA odds Surveillance updated the but for lower Road, Silk the significantly Importantly, only Project or infarction the endarterectomy which TCAR and time is composite first carotid in-hospital the compared myocardial death, artery achievement from for treatment a current to stroke, landmark standard-of-care. of carotid broader the

activating team, education. foundation new Also territories, courses. momentum growth through new through quarter expanding opening flagship long-term in gain made training progress awareness for and accounts, efforts new in our test the drive broad we the hospital laying These our physicians to sales commercial continue excellent and

significant by total in $XX.X revenue the the we of million compared approximately the quarter up second delivered second Marked of to XX% quarter, achievements, XXXX.

adoption TCAR. growing by driven is performance of topline Our

million expectations revenue. XX% year $XX We to to representing revenue raising of XXXX to million, are full XX% our over XXXX growth $XX

this tailwind and and adoption. generate and to advantages of are and patients, will across studies, with data the clinical detail post-market the effectiveness TCAR. on I safety our Starting data clinical support confidence two continuing execution. clinical U.S. quarter are bit and of a commercial physician progress data and payers, registries provide These with more trials, for strategic on focus; now evidence providers our areas efforts

as X at as mentioned, from ongoing Surveillance results our well June. the represented updated results I TCAR Project As study ROADSTER VAM in final from post-marketing

collection in effort real-world data the use effectiveness background, that compare open-ended TCAR Patient TCAR Society contemporaneously initiative Safety the was as monitor is TCAR an and of of Vascular XXXX designed for Project way to The implemented and CEA. to Surveillance By in It of an was September ongoing Surgery safety Organization.

headline University or Diego to of the the the of Mahmoud session results X,XXX that evaluated TCAR San Malas between XXXX which School Surveillance open served shared patients patients of a XX,XXX In carotid receiving of the compared XXXX. updated endarterectomy Medicine California for receiving TCAR the presentation Dr. plenary CEA to Project meeting, and

In lower addition infarction X,XXX in-hospital comorbidities score time group for propensity based matched overwhelmingly stroke, results showed were positive and were on death, of and patients and from and first composite CEA. compared each using significantly odds the to analyzed myocardial matching. demographics The

less attack procedure to cranial likely were to Specifically less patients infarction and in-hospital an an injury. in-hospital likely have TCAR XX% have XX% myocardial nerve receiving or a heart

production result is which complication of injury in quality control nerve very and issues permanent like facial taste, stroke-like to transient can Cranial speaking, damage a is and symptoms. serious these sensation, functions life and saliva nerves swallowing,

of of TCAR's prophylactic What in has lower we'll and The community procedure to important for with physician and believe odds we TCAR in XX-day been extraordinary death. of ability is XX% content improve is largely awareness adoption. a physician most procedure the momentum odds the impactful drive the patient's survival increase

procedures were sites. ROADSTER evaluated neuroprotection presented stent VAM. post-market in ENROUTE risk in XX Additionally, TCAR XXX use ROADSTER across real-world study are at enrolled X and high-surgical patients of final X systems results from also

death breaking X.X% presented strokes outcomes data and X.X% investigator of and with the of demonstrating studies Center respectively. late During slow the Medical co-principal Kashyap compelling stroke combined rates University Dr. Cleveland patient Vikram and sessions Hospitals

stroke of seen stenting standard Results stroke trial rate X stenosis carotid for rates from of CEA, treatment of stroke The clearly ROADSTER exhibited versus ROADSTER CREST the TCAR in as validates to and X.X% endarterectomy XX-day care. also of competitiveness CEA. demonstrate the low rate artery a for known in X seen X.X% the

TCAR remarkable confirming noting that of in It is adopt physicians approximately ROADSTER use XX% will short reproducibility and to for these were TCAR encourage and We expect physicians procedure of physicians the worth the enrolled thus learning ease physician. patients, to XX% X curve consistency the new of further and the procedure. the participating

multiple smaller further patients supports were physicians You worth ROADSTER ability experience, the not participated corroborated TCAR just XX data, recall the as that X,XXX the or consistent I ROADSTER physician with no the little to generalized the TCAR with believe been TCAR the the We prior X studies in is ROADSTER outcomes. of most a across reported carotid referenced compared of over other beginning will operators significantly physicians of curve stent-based which group by data X modality. learning outcomes intervention from that just Surveillance of of where This the seen their has in Project, X. procedure had TCAR they

The with journey. TCAR Surveillance the the data marked our milestone ROADSTER together updated X major results in Project from a from taken

to market-leading has to durable develop clinical on patient’s outcome Our in and this successful TCAR committed to to around remain of continuing team's and focus drive led procedure. base we our evidence every relentless data the adoption order day each

TCAR to generate all repeat Our while our second execution commercial initial procedure of priority, customers, by outcomes. the mindful our about our always and orders focus hospital products key adoption of patient on being is driving of

good Our in reinforced our repeat mantra linked and that of are way every drive patient two key outcomes, priorities inextricably every day, orders.

procedures, in the is performing the revascularization structure reminder, which is model. of allows to a base efficient coverage there of carotid concentrated us an As hospitals deploy a physicians market that such

that and We has the training our been we hiring believe commercial programs as Over outcomes in to-date. team our TCAR. have progress last driving and carefully out years, led to with field is our we've our success excellent and world-class combined TCAR a to of people technology patient couple methodically rolled physician’s it

and were accounts and toward performed remain new In our and territories. X,XXX our curve. In at performed. we excess track influence to we their the procedures short, new physicians sales These deliver established same physicians, while on procedures X,XXX second time the to in continue in both support by expand hospital in and quarter, further there commitment adoption TCAR established procedures footprint new were XXXX, and our established in as of commercial base train physicians experienced new of approximately to

physician said, that are takes and are and experience the With which effort. challenging well care of relentless that changing behaviour, time, we we standard aware

QX, treatment the Annual the crossed that the has Meeting in excellent the TCAR June, continuum. milestone its we carotid place at Vascular outcomes earlier worldwide to clinical procedure As feel XX,XXX in we by cumulative reported prominently continue followed in found

commercial beginning and time one well-positioned are lead. at the to our at our on and Building we execution everyday, to well still evidence patient of clinical a care. and the us maintain base has focusing the to of upon we journey build standard date just Yet, competitive served remain become

I some that, comments. Chief return Lucas we'll now closing to with the call then With will Financial Officer over turn Buchanan, our

Lucas Buchanan

of $X.X Thank year. prior hospital the accounts, adoption Revenue Growth you, million, increase base XXXX of sales ended June growing territories. $XX.X across from and XX, driven million period physicians in was XX% a Erica. the of active trained same months an the was for three TCAR the expanding by

across Gross by was the compared second manufacturing XX% of quarter in prior year was margin revenue well efficiencies driven the the projects. margin leveraging for manufacturing overhead period. of primarily costs, XXXX engineering higher corresponding and manufacturing as to improvement timing certain Gross as delayed as XX%

be compared half in margins due flat primarily planned growth. the first the initiative We to support gross and second half, engineering year to the manufacturing long-term expect investments as of to our to

product expenses of second the of second XXXX second support $X.X XX% development for were in from of XXXX. XXXX. quarter for Total programs. primarily second continue a an XXXX increase increase clinical operating to expenses the the The in $X.X study we R&D as of in $XX.X $XX.X quarter increase expenses was quarter million and compared were million personnel-related by to driven million, million, the quarter

primarily and compared second expenses second quarter the related and of million quarter general commercial efforts well as to to $X.X in The to XXXX of of million, was $XX.X attributable being public our company. for XXXX. increase as in costs the administrative Sales, a team marketing expenses growth were

of million the loss of a $XX.X same per of prior Net to as compared loss per period share $X.X $X.XX for net was period million share of year. or $X.XX a loss the loss or the a for

fair from stock the at of million preferred $X.X quarter or non-cash included XXXX, of charge a the of respectively loss liability second balance our convertible value re-measurement sheet XXXX the resulting million $X.X Net each for date. and and

were We with of the April cash to million continue with estimated they our the IPO the XXXX in and in convertible equivalents. second exercised until to We connection record ended value fair XXXX. of $XXX.X of preferred adjustments quarter cash warrants, stock

$XX Turning million as and $XX.X Erica XXXX of million raising from $XX mentioned, from full million, XX% revenue revenue are we to representing XX% our outlook $XX XXXX, growth to million million. to year guidance for our XXXX to over of $XX

full our X,XXX of half the the track guidance XXX year new bring on second approximately our remain trained which towards base year, accumulative to look by year-end. we we physician physicians, to As for approximately train would

XX end track with We sales approximately are also XXXX to on territories.

is of on on conversion our train physician primarily core individual for to the commercial procedure is support. we focus our This At driving CEA predicated volumes. each strategy TCAR from and

hospital we in continue in our territories new expand are established territories. accounts, to efficiencies While we train physicians also sales finding and

To by to adding we growth augmenting physicians territories successfully training growing additional and in therapy the support end, accounts are development established by existing market and volume by hospital that driving efforts. specialists these more procedure development new

Erica to At point, for like turn to this closing comments. I call would the back

Erica Rogers

to outcomes, at Thank protect Road, theme, overarching we clinical second Silk quarter successful Silk At the market we you, Everything is to treatment disease. commercial relentless on of the further patient fronts, the which we one artery leader Road carotid made designed Lucas. focus both validating goal in brain. a further pleased do patient have is our every our the on by as I am headway position in performance as and our everyday. very

continued to as to clinical With ahead team build well-positioned well expansion of a we as breadth remainder our we for a commercial remain continuing a on base U.S. opportunities, great of evidence and execution. Looking are focused the assembled, XXXX, growth.

reducing and patients closing, this are work privileged and a their burden their They treated devastating and like to about to patients partners. and about tirelessly our very possible. physicians safest most I work ensure of Before of thank the stroke. way the feel I to efficacious in would alongside group skilled physician passionate acknowledge

With we will questions. opening now up that, Operator? to

Operator

Your of Robbie Instructions] the question Thank from Marcus [Operator comes you. first from line JPMorgan.

is line open. Your

Robbie Marcus

quarter. really and congrats Great on a nice

Erica Rogers

Thanks, Robbie.

Robbie Marcus

Maybe I could start it off.

of coming presented the trials touched and deeper and and finding also accounts You you're how on out you accounts. the commentary new of in some SVS going there

data from what really be backlog the since trained getting trained to presentation Has following the up start community the it'd want on us you're could seeing here? little ground great stepped of encourage of interest more more doctors to get I a even on in helped doctors the the terms the data think Has who the you give if quarter? procedures on on color the desire physician throughout then?

to TCAR? maybe if you're touch getting start doctors? also don't trained could on pushback then of And you And from if some on getting any the why they want

Erica Rogers

those Sure let question. for the order. Robbie. in Thank And you take me

were First, as it presented VAM. relates to the data at that

let's think in was that sort of the the, recognize second Meeting I week Vascular Annual of, First, June.

to really data And of so those it's pretty impact early tell what the be. overall will

while and Vascular the every probably good, quite not certainly imagine you attendance America surgeon the was full attendance. As room in was at was the vascular in Meeting can fairly Annual

field of now kind information well So out specialists at one of education as as the it really job time, physician is of through area the this do in customers a therapy and the managers the disseminate that we to one-on-one. our development

data are meeting months, wait who And typical cadence there from until is Vascular XX like these that physicians Meeting. published six Annual to typically peer review will journal. well to a in are want As the many a

short the it's data so of too early Robbie, And to tell impact what a these little will be. in overall

tailwind said certainly in think adoption the already in That physicians adoption paying is serves their or good. the curve since and is driving date were impact the are two TCAR. And VAM as who from trained a and quite the in overall who One, we coming who physician at enthusiasm of for were ways. the up that in attention physicians audience

patient a they're conversation versus their example physician have sitting can you words other very front they're TCAR the about they if about now of can when patient different alternative, for with talking and CEA. imagine have in talking in that So they that

be on So a we adoption. think it'll tailwind

sideline, point And also become for data, or to a eye-opening. that when address the these on is have your sideline the it been physicians are sitting they aware on sitting of bit certainly

will Robbie We TCAR. the year training can we trained do of this the interest that which there is And on of of physicians. we ability said one back So physician interest. additional to half it being that when do in incremental commercially And do will before in numerous levers required. we certainly are drive pull have the believe the respond to we in

me is we And that is I Robbie is traditional And let do lot to ask there well Now the about are kind considered a question prepared when that time of are on? things cut-and-sow back getting of the a good to said really vascular your my a pushed that aware their get challenging here. I the the care which which half in we remarks the And change we some last take endarterectomy of it's of what Robbie, -- last of pushed remind standard back are is carotid behavior. we this think physician surgery. bastion really to

And against and careful commercial conversations one-on-one so that's and really up and what we're execution. methodical that requires

Robbie Marcus

you maybe be same-store just hoping us of maybe -- percentages And whether one color just new how sales was you there about I give or any follow rates Lucas. discuss Great. can color adoption of mentioned in are terms versus be new accounts for to the you the qualitatively the could would greater the sort Erica or accounts? script of in existing up existing give sales, you could seeing Any a growth relative you helpful? maybe accounts Thanks within around you how lot.

Lucas Buchanan

Robbie, take one. Yes. I'll that

first per case. we we're burden a And scaling of as the of for do time closely meaning quarter physicians time their period metrics year. to fully the that training portraying procedures are these period takes a are at month per what So we them it per stare courses, for metric, that

first time, have trained zero they're group So just done physicians and their because given cases, they any got who working at towards a case. there's of period of

metrics that some the we think to the you that gets think of -- And about. about and so

them When we that the you very or to cohorts. you in six whether good continue from little from the strong experienced to kind do news growth see of training, those the dissect and experienced training one year really more And by we more physician, define is months see attrition.

it takes or physician rarely Sometimes case abandon we get have procedure. and the a their to first time XXth TCAR their or But their case case. them try to fifth

how focuses of each on our all, who's growth I of do I both the their just looking we're who what tenured. towards how XX got case. good physician And in really physician sales trained kind a they growth at done are we move over and and hospital as continuous is do XXX. towards So cases team a my individual move and physician first level surgeon more get more seeing phase that's But level at

Robbie Marcus

quarter the Great. Congrats on good again.

Lucas Buchanan

much. you Thank so

Operator

comes the Bob of Hopkins Your America. from next question Bank line from of

is line Your open.

Bob Hopkins

you congrats on good and momentum. Thank and Great. the afternoon

a up Just follow last point. on that

where Just can or quarter per us terms now surgeries you curious, stand you many you "experienced" your for period a mentioned per right surgeons, experienced sense surgeons in of doing? now are give how your

Lucas Buchanan

about quarter. the getting scale some is Well as every zeros with the per per training physician constantly is procedures of we're quarter. the it's we roughly benefit X.X We're with trained think dissect way again diluting by burdened X.X to denominator physicians brand-new in But that been given I experience.

than are doing that procedures folks the more means that. that actually So are doing

Bob Hopkins

many Right. are roughly you quarter? was, per are talking doing No the experienced look but question how those about surgeons at if they you

Lucas Buchanan

procedures overall? carotid of or TCAR Of

Bob Hopkins

diluted just is they a if TCARs by get period of Of average TCAR. just surgeon you the experienced curious are curious, realized I X.X? base, referenced lot doing if I -- nicely zeros. as average when mean, per I'm you at I'm is many that how Yes, it's the

Lucas Buchanan

Yes.

doing folks procedures per of and top seven six are Some between quarter. our

for get you'll procedures, driven were docs opportunity that when XXXX, into you up physician procedures annualize XX X,XXX in average which of XX if remember, out. we overall of went function again, And target you if as XXX,XXX kind procedures characterize of those a the doc the per numbers. docs XX% market So, per by is year roughly -- those

Bob Hopkins

Okay. That's helpful.

guidance is to going overtime. to on, for I $X million. right changing the obviously Just just you of increased curious sense to now. wanted at get roughly up that number how a mean, company things then, by And I follow your quick there's as XXXX your lot a two on

rapidly. very growing You're

better, presentations force. beyond It's is if this much got wondering there sales great limiting how give as million, really I got $XX think just you question, of given there. the or you to do you expanding year? data the to a kind a when an the you can -- You capacity like, there; about million us demand on numbers? go question. demand capacity The going these a company $XX sense the is those everything ability the with company of going is on Could was is you pure to

Erica Rogers

of us that detail. I of Yes And to today. if good said are it first exactly because question, doing growing Lucas is the of And with little think, take doing bit need what course I'll the in Bob. Hi is rapidly are follow what for But talk action right, very and rapidly, can so, then stay nice best we a is course general up we're and working. to more working. we all. you is we right? thanks which joining feel you we And

said long-term operational care. here goal before of that the of obviously getting is maintaining this have patient because pristine the as standard overarching a I excellence and goal is outcomes So to

can course. pull And for on that the respond are state and we now, so, demand. to for levers But and various there could of year multiple it's

Bob Hopkins

terms last of have year? we clarity that in we what kinds look as of you the aware wanted Erica time Okay. just to need there should process do on look touch don't to might rest I because, right real process certainly this of soon. And the incremental and you of, don't we the have the on then this much just I But are going and any know thing anytime so I'm milestones risk the quickly to and you spoke? this I so curious hesitated last now guys relative be always any standard about And with at ask like

Erica Rogers

really There just I sitting because, front the in treated huge you market question Thanks that patient getting opportunity. than recognition we're here risk way started right. X% and and that high market the asked appreciate unmet at is the surgical And you're covered in we have in population. indicated today that a uncapped less there, penetrated just Bob. of us, overall

that I'm lot a recognized. to There's you of room glad So, run.

said, the answer answering That your question short is no.

We particular offer additional on clarity have this no call. to

We have continue the to know. as for and risk more coverage we front, at soon look standard the as on both that and details opportunity you labeling we will let

Bob Hopkins

Terrific. Thank you.

Operator

from next question Your Rick Wise comes the Stifel. line from of

is line open. Your

Rick Wise

afternoon with start afternoon. larger-topic Good Good and I question. Lucas. Erica will Maybe, off a

endarterectomy, we're the Just are expanding you quarter kind when Erica, market basically all seeing looking still well? of of at performance, kind carotid this we as this any expansion market excellent we Are at just excellent cannibalizing are and yet? or

Lucas Buchanan

Rick, take let I'll one. -- This Lucas that obviously. So is me

Rick Wise

Okay.

Lucas Buchanan

to a quantify a data or see we so to answer to not and might that. of bench, question It continue base go so. to and more We can back anecdotal and research stent. will hard get carotid that physicians market that sophisticated We're is procedures we that evidence do getting bringing of surgery say kind now transfemoral do off and trained of otherwise the still patients

expanding units, we coming namely by from that which have they had whether than at TCAR, market endarterectomy as point cast and taking what Road's numbers to But and endarterectomy. stent increasing participants growth data in would volumes some they faster data there patients down at competitor's have some historical do from otherwise stent come But is sold share see data up. all looking stenting go is transfemoral and carotid what means come we're stent volumes Silk is market that we the you converting of or overall to unit we the buy from stent units carotid transfemoral of the with know rates, harder looking both unit and TCAR the of artery carotid

Rick Wise

great. That's

little can Let on Lucas, going your maybe answer but me margin ask a comments. Lucas, expand wants this bit you turn. gross I'm maybe one. to to Erica

gave of at we're second you You projection to timing us cost. some how highlighted margin mid-XXs half is about overhead you But about now of in a is specifics lower-XXs more I delayed first. equal sort the the of we you way going leveraging manufacturing consistently hear forward of we sort thought talk general gross you are the But thinking really that year. on about rest range the and through kind the which future? the as

Lucas Buchanan

is The benefit of it team defending value the done obviously, our a can't good. we have fantastic with so more job but short answer so all yes. Obviously, which far starts forevermore has persist pricing, And discipline that pumping mainly units relative side, manufacturing headquarters – manufacture out in is there as Sunnyvale. alluded of the I some factory differences some to neuroprotection on the which we to here some is And at there initiatives. timing longer-term engineering

investing the that longer optimizing in important Just as our efficiency like things that shelf for and productivity of the in automation, organization. things term life, a options investing like those are example, sterilization are

lot low And scraps, office having high really and the a the as and team done field. yields But manufacturing here they've in how well, terms home fantastic job. of Erica product just about the very team talked well is a the doing at in

Rick Wise

last P&L one quarters. another recent item I've you me, dollar sequential just you And SG&A, thing a great. could ask for That's from that about quarter, I great in seen really if the job had increase this smallest

– or again would just again with Lucas, color the as coming And just footprint? much Does or market much us guessing. the you step-up But some your Maybe in in much and How little So just address of you're great? penetrate anymore needed how more spending current you be it? do color how of expansion maybe is – able you required is address how a suggest the highly this can if to market there. I'm give efficient, more on needed? SG&A

Lucas Buchanan

lot coverage credit sales our model marketing and beginning a as I And plan of planned to we because pursuit we leadership, Well, that be goes it's in of year, said, and when we're building team commercial ultimately sales all think as driving the procedure Sure. efficient. again we talked And the our really at will we're of on a about. volumes. the out

of the development a build talked sorry, area roughly kind and that that with to again, end year. given we've at and building it's it's the slower – managers we IPO, we – territories, towards to of roughly During at and towards kind rate we ended XX therapy sales continue And therapy X:X active about ratio to XX just towards managers. specialists XX year a the of area of sales guided development territories, this slower

out in closer thing getting model, making of street. physician Same hospital and feet on we're progress terms account on building coverage there. the that base trained to So good base the

And ultimately, the individual our long-term. to will drive in the be adoption about it physician in curve driving each growth

So increasing and about And long-term. over getting in and revenue. about seasoned, involved TCAR new established and it's physicians more sales folks procedure to the territories, more the less less drive volume

Rick Wise

you. Thank that. Appreciate

Operator

from question from line You're Markets. Wuensch Joanne next of comes BMO the Capital

Your line is open.

Joanne Wuensch

are how afternoon. Good Everybody, you?

Erica Rogers

are How you? well. We’re

Lucas Buchanan

Joanne. Hi.

Joanne Wuensch

Excellent.

Erica Rogers

Too good.

Joanne Wuensch

little territory wanted how and you the I that give to of force of the about two previous Can just is question the is an hiring talk bit things. us proceeding? managers. takeoff to on a One on on sales update

Erica Rogers

Yeah.

the is that by number the are year the for we namely toward year. guided track end XX, the which of earlier So in we on roughly

with that to believe that be can the addressed continue We business number.

in of conversion exist, toward TCAR. moving And of and to endarterectomy in and mentioned physicians carotid are the we the find penetration, the that namely already continue already already exist and earlier, efficiencies deeper as hospitals all deeper that Lucas that to trained territories the

Joanne. is short are the answer we track So there, on

Joanne Wuensch

the publicly the My do first helpful. for be just thinking quarter plan has the it's us traded you and to third seasonality. idea an Since second give you for about how medtech. question summer That's of your as tends months Can difficult third quarter, a with to on company business?

Lucas Buchanan

Yeah.

not summer in certainly obviously really the are With it's own and we summer been So updated into subject and It taking seasonality. immune obviously the scheduled baked as year. TCAR vacations. physicians patients has modeling, to to her guidance procedure the for

the it's we're bigger generally first when in And August. physicians thick sensitive And of bigger footprint kind of you of of most of and weeks more that to have two seasonality. trained into it. Right a right you're the July now

for So revised been our that and has thinking into year. the guidance built our into

Joanne Wuensch

question dismiss All year. data is VQI? right, at there already upcoming do that has anything not to But mentioned and last to clinical my the then this

Erica Rogers

Yeah.

there published be program there TCAR VQI. at So now. of several is talks. Surveillance TCAR online Project updated data the essentially And we expect some are The will cuts

of of of we believe of but yet at are Surveillance some another Some kind slice will which reanalysis Project. data the there TCAR again already that be or presented we've re-look been the

Joanne Wuensch

very you Thank much.

Erica Rogers

you. Thank

Operator

further no hand to I'll over I'm this Executive Rogers, the Erica call Chief showing at Officer. time. now questions over

Erica Rogers

all to joining today. really much for attention. very you you us your time We of Thank and appreciate Yes.

Goodbye.

Operator

today's And Ladies conference. and for gentlemen, a concludes Thank you day. this your wonderful have participation.

disconnect. You may all

Silk Road Medical (SILK) 29 Jul 192019 Q2 Earnings call transcript