Earnings call transcript Q1 2023

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Operator

Good day and thank you for standing by. Welcome to Minerva Surgical First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please

hand over Investor to would Please now speaker conference to like Corner, I your the today ahead. go Relations. Caroline

Caroline Corner

call. Minerva's Thank Welcome first quarter you, to XXXX operator. earnings

of do should XXXX. market me this the Officer; the Joel expected Minerva's relate will Private Reform Minerva's demand Executive fact not provide outlook Securities today's and and and Surgical This be historical within and including considered call year products, the from statements of Financial statements markets operates, and financial are Usen, Litigation for Jung, Todd Joining President fiscal forward-looking performance, All on regarding matters products expectations the Minerva trends on Minerva's Chief statements, and forward-looking Officer. that expenses technology, in Chief XXXX. and which statements made for call in call trends to position meaning Act of

annual to for Form XX, which May be XXXX, will Minerva's be on in ended on XXXX, in and nor risk updated to These expected and with differ March XXXX. report promises report achievements the filings or the statements XXXX, any could are materially quarter or SEC December for review uncertainties SEC achievements information, for XX-Q which neither and filed involve described company's additional from guarantees Please implied most March results, on which Form Minerva's is on quarter unknown ended XX-K actual X, performance forward-looking by the or that the XX, was recent performance risks cause filed results, the expressed the with XX, quarterly particularly known statements. and factors

no based by circumstances except this that for to call, or obligation events occur today. law. statements on update that undertakes including Minerva applicable forward-looking are today, as exist projections Any statements required expectations reflect these as management's to of performance, provided future during after

results. is results A latest www.minervasurgical.com filings, Pacific today's today. first section call has of Minerva's Minerva's be on additional the quarter Investors includes press X:XX available website review. XXXX and which encouraged under financial p.m. website, by the on release website Time available to recording with Minerva's Minerva's also Minerva's are about you will SEC details

call that, Todd. I'll With hand to the over

Todd Usen

And ahead first first Thank you, four And Caroline. joining all enjoyed much you willingness we thanks I've there's of I'm to and Minerva build my impressed to with board on the earnings for believe and that months that while lies the have playbook ideas. us work and new with call. implement on quarter our all the we to team's extremely can be. talent change we company the thoughts Surgical.

success. quarter CEO increase with Last review we external efficiency strategic contract were and quarter, majority our as to a operational out including our I of well opportunities commercial partners society both that organization, of spent undertaking manufacturers. I the entire the suppliers and organization, process the an as review the in internal the across key said of as customers, of my with first and team,

operations improvements. overall opportunities to our identify into and efficiency and improve digging While areas for

to We've align needs. our been resources with hard working our external customer internal

sales with with few and every always the months, over of to time While of face spend valued leadership commercial our well the time I've company with face to field progressing. number point managers. early the I'm how days, last team a as territory teams, it's made is pleased in member it as the a I

belt. XX XXXX, months new of Minerva experience with training complete, hired half the territory now managers their of three and their with Over last another under

other hearing proper leveraging health. problems is quarter I'm that solving hospital echoing from helped approaching a normal. our team uterine in environment that delivered desired technology solutions tools my real experience motivation the new provides sales that a What Minerva is and and along and conversation our Our solid customers a by

with the also for to clear time Minerva with patient with outcome partnering As I need. the goals spend mentioned, working offerings provide meeting to largest to key every and And women's I impact them day. establish leaders educational they we these is health are leaders clinical society.

three Turning XXXX. year-over-year This quickly first the quarter million lines to highlights. were of major revenue increasing with of $XX.X revenues We from quarter of year. with growth, some period same from financial we XX% product for up pleased in past $XX.X revenue reported million, the very the last all our of

increase successfully tissue increasing XX% important indicating Our in Symphion share resection our revenue the System in first growth with the segment. of market in market to from a XXXX, quarter are continues outpace we this

unique The exclusive to to of efficiency are our Symphion with suite a our abnormal safety uterine to are compete features ability bleeding, beginning products show and and product, product results. really full

first that for ES, to ES, XX% Additionally, X% the report are endometrial ablation and and Genesys quarter respectively. revenue XX% of with XXXX for we're of increased pleased growth from product HTA Genesys HTA Minerva and lines Minerva

value continue about shareholders, I the ability to in I'm confident remain optimistic and stakeholders. future. other customers, delivering our our And to

We I forward are over on focused progress look future quarters. on updating driving you our sustainable long-term to growth. And

With that, hand results. over a things for dive deeper into Joel our I'll to Joel? financial

Joel Jung

everyone. afternoon, good And Todd. Thanks,

this the were pleased experienced Todd same we growth As period revenue the of quarter XXXX. mentioned, we past to very compared with

growth Minerva with lines Resectr our the HTA, Symphion over the of of and product Minerva ES, experience charge. and quarter Genesys first leading Symphion XXXX All

$X.X of total or quarter from million or XX% revenue $X.X the the from total total XXXX revenue a at the year. in product was year, first X% quarter $X.X And XX% last quarter $X.X first revenue and first of HTA revenue the quarter in quarter, million XX% in in $X.X the of the of quarter XXXX, was last XX% million, or XX% increase of revenue, $XX.X increasing Minerva quarter from first million million XXXX, for the was first first the million, level of of of revenue XX% for Genesys the in revenue from $X.X quarter year. first of increasing of was XXXX. increasing Symphion last million Total ES

gross of in last was the an XX%, margin quarter margin year. of from reported increase XXXX gross for quarter first XX.X% the Our of first

margin gross same XXXX compared positively period was decrease the Our overhead as quarter product an XXXX a of in by base over spending resulted in of costs volume spread well as being larger to a sales, impacted in the which of first increased of revenue. overhead

are increase an total in incurred in capitalized was the to inventory, XXXX, of Accordingly, sold, period-to-period first expenses inventory as can overhead during inventory are varying the margin result increase certain that margin. on and gross in and hand swings. capitalized Additionally, manufactured gross quarter overhead expense of levels in units in overall contributing there was from the

accounting in cost from five change customer resulting Lastly, in of in the was three XXXX, placed in in there at that of a years, estimate are this was amortization goods a controllers The amortizing sold. for first quarter slight charges to equipment useful decrease increased life sites. minor the the capital of captured

quarter the the expenses expenses increase as and related Total of well the due XXXX, same to development quarter million, to expansion increase operating operating in of $X.X sales attributable XXXX sales XXXX. increase mainly compared $XX.X were period in expenses. first and to of $XX.X million as The was marketing first since expenses the of the an in force million in research

million approximately from $X.X first of first in Non-cash included XXXX. amortization Non-cash total operating of $X.X unchanged was XXXX year. in XXXX depreciation operating quarter first last quarter expense first quarter million in the versus quarter stock-based million included expenses and expense the was the compensation of $X.X in expense of in the

XXXX was a Our the to reported net net of of $XX.X quarter loss million, first XXXX. million of first $XX.X for loss the quarter compared in

million a negative $X.X On compared in the million to of of a adjusted XXXX. we the EBITDA first non-GAAP quarter XXXX for adjusted first basis, and $X.X quarter EBITDA reported and negative

to the reminder, expenses. acquisition we May Resectr As from HTA, of compensation assets, as the amortization stock-based well the expenses of significant have XXXX non-cash non-cash and intangibles significant Symphion, a Genesys as related

significant recent sheet. In due net equity cash, with from Turning was for quarter inflow $XX.X XXXX our the financing. of finished in end million. total, $XX.X the first to unrestricted million XXXX quarter We our to the balance of a cash increase

fourth Our of XXXX, from debt. our of long-term previous long-term the the and our IPO, liabilities were refinancing substantially quarter following unchanged

third amortization completed schedule. year a As debt is only the wanted facility through three year, interest also long-term in this of after a highlight $XX quarter million we our I quarter. the reminder, successfully into rolls financing to it which equity this

extended Accelmed our to On our support to $XX intend and New XXXX to financing, our mission. enter support we we working of stock private cash existing chapter existing proceeds and from operations with as together new use February by the And We're net Partners delighted corporate a which included led to in of research investor an investor activities have Associates. have We runway, financing placement Enterprise X, from general this the our Accelmed investments, common capital million a the company for furthering purposes. further advance and with cash and our growth. development allowing closed

hospital that guidance, range we to million. staffing peers, challenge of positioned to our continuing believe a we're expect to the Turning $XX $XX see we're revenue and deliver as well for to now we in goals our to on time, in revenue growth. XXXX full-year future real addressing million Like be of we're many

the operator call for thank you say that, your back questions. I'll With the and to turn

Operator

Thank you. [Operator Instructions].

line of the Dantoin Piper Phillip Sandler. first comes with Our from question

Your ahead. line is Please open. go

Phillip Dantoin

is questions first Phil here congrats for this the our Matt. quarter. at on on And on and four Hey, months thanks Todd, taking for the Minerva. Congrats

give what to expectations typical are years impact line? for to with lives to capital see further, you from margin on each guidance going in come was play? what into seasonality sequentially But modeling. on line grow on your gross start, your cadence? us the you changing And the useful of we Just three can Should were five the or quarter

Todd Usen

of for words. the all, first thank facade. you kind Phil, Well, I this appreciate

rate feel procedures. answered. some obviously down good. you absolutely can on the answer numbers the As in seasonality, really being of quarters that, way that words, the some far we the slow. the And for the latter QX, kind of normal specifics obviously still market, the ask elective as to Joel answer Joel we that with the slowing the months But expect than medical traditional seasonality I again, other questions summer and you with and biggest thank traditional will on

Joel Jung

from about gross hi accounting in The has the to adjustment Yes, a Phil. three years X.X% to X% five to change margin. the probably

and biggest and significant. volume the around capitalize kind The of the driver changes overhead inventory as effect, not was increase values up of and decreased we this down kind quarter really overhead that in to inventory a into go in secondary quarter. So some each of

Phillip Dantoin

few first you expectations months the forward the and that's And of start your is volume in are XXXX? seeing and in number helpful. of towards of for you. is what year terms to normalcy companies. XXXX? still bakes by the expectation the a guidance Thank the the your puts more we what shortages out in then rest Or here? going That's working are for for Staffing takes something been that called And recovery,

Todd Usen

the well. are the going and to some adding they I think staff to continue seeing not be one staff, work normal”. of new it's the “The I'm things we're returning maybe think to to with more are hospitals sure they're normalcy, learning that as in have I that that is, hospitals

and half five results individuals into with us, the had then I fit of the first months and now talented are, to of quarter field. territories job their prior can in a six out last belt we've that you time super the four And the under the and of or chance takes team on full. to to with in bringing me see training being latter the year, with some to So puts of think a

value calling there are on past was be they're and physicians getting out now their the quarter this and that have doctors, time, the technology that spending that there to in being People hands evident on. reps the it their seeing

see changes a more, look it that's organization not, So am planning hospital that's the comes on as as I But of working for and talent. at think we've with benefit. looking And far not goes, day a the But in staff I it. a selling add be with each whole just prepared if that hospital hospitals, am as great the I we'll success the they lot year. I'm to staff. take If to going had with some nice

Phillip Dantoin

AUB? the on to a positive Is for work impact market return having the

Todd Usen

because that weren't it's only the they positive use, solely are up caught could determine but home getting specifically, while, were you may women obviously, they again to are what is up just reason schedule little But procedures think to a why fact treatment. one because think think a the it's physician And the work I the many having very I women itself, because procedures, also And know they're way hold that's their I this. physicians have they time a seeking maybe with difficult physicians, opportunity mean feeling I obviously hospitals back are or does physicians. I those with reason procedures for on sign. think were not, in be

work, to a it's return I women research you reason think the market hypothesis. So I can themselves. be a some that's unless specific give with it But say couldn't I to nice did the

Phillip Dantoin

inflect, What Symphion specific sense. as of keeps makes some just And here? ES way to to it business segments. these the That for drill leading into would take

Todd Usen

time? that one repeat What would it you take for? more Can

Phillip Dantoin

here, as keeps leading Yes, take inflect way? for Symphion what might the truly to ES it

Todd Usen

on losing it, am something ES. I

Phillip Dantoin

ES. Minerva

Todd Usen

It's difficult. I apologize. ES, very

as So of on with are, as that a I because And market It's the growth ablations flattening opportunity is segment. growth I ablations seen think recession a I pretty or do is think think we've picking procedure. the up I tissue stable. think simply

we've that Minerva Symphion technology now reps indoctrinate that the of ES the Symphion the I had a little acquired I over while the the of will our other think time. to it fully And market. But technology took And continue for trained, Technology. period a I believe market the this a to believe resection that procedure, in And I think we is organization Symphion quarter the to whole Symphion versus XX% differences that with we to than because the with later, for starting technologies saw this grow on continue year. growing market as itself. show faster is last growth first ablation

Phillip Dantoin

review, your can thoughts your the and helpful a as That's give on move that thinking point? us around spend And internal as generally from this your me, strategic complete spend through XXXX? and of just are at is few you more result we but external what

Todd Usen

Well, to sure the and spend anything appropriately. to we're going that with else our like markets capital always now attention pay we're spending make

I making think sure structure to supply ongoing, a contract at chain, organization, everything spend the team, organization, contract going one is obviously, doing our we're the complete to the things on the that inside looking appropriately. the operations, with of in of the there's manufacturers we lot not manufacturers from to we're our staff, global commercial or and that

when the a difference tools equipment we're we need proper we're to spending our do put spend that surgeons put to accordingly going to going lower make serve. we're not sure what reps make on focus with everyday treat to efficiently, we're spend going sure But to we're is can save to making the to things just our women that prosperity, front way to that And proper the in our we to those patients. of and spend we

things margin. necessarily that a that affecting put top may while. for little And and some revenue some where gross evaluate missions of Immediately, not really some -- of some may we and to to other line the spend a off go it things long-term little will be

Phillip Dantoin

Great.

what Just going in $XX the last exiting for million cash are your forward? levels one here, expectations cash,

Todd Usen

I'll give that our to CFO. one

Joel Jung

haven't We provided on any guidance cash. really

potentially refinancing have think the long-term we that We have a evaluating in look year we're to later Todd's about spend, to current our debt earlier at and point, take debt. our

levels. are of a there with number items play in cash So

I going kind do short-term. are and going we're like we managed think the the of amount pretty year unfolds on to forward. the to the revenues our based cash not year. how with So needs expenses what where in for of things cash We operate evaluate we'll longer good and cash that have believe additional term how and guide to is And are

Phillip Dantoin

Great. Thanks so much.

Todd Usen

Thanks, Phil.

Operator

does This Q&A you. of you Ladies may also disconnect. Thank conclude portion for does and conference. Thank and participating today's conclude today's today's you gentlemen, conference. this now

Todd Usen

Thank you, operator.

Joel Jung

Thank you.

Minerva Surgical (UTRS) 2 May 232023 Q1 Earnings call transcript