Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to the Minerva Surgical Q2 2023 Earnings Call. At this time all participants are in listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to introduce your host, Caroline Corner, Investor Relations. Thank you, ma'am.

begin. may You

Caroline Corner

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

Todd today's Jung, and on me Usen, Chief call Officer. Joel Joining and are President Officer; Chief Financial Executive

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

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

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

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

hand that, Todd. to will I With the over call

Todd Usen

and Caroline, our us you, call. second of for joining Thank you to quarter on thanks earnings all

As have optimistic company's future mission of distinct continue healthcare the Surgical, first I in now two I completed women. be quarters about meeting Minerva and to at the my needs

Our talent has this commercial introduced is they develop and to past and customers changes women the team investors level deliver our quarter to a for products deep of serve, that our benefit our employees. the of and our the responding

much can the work all ahead we company continue the board believe build on talent playbook new extremely to impressed and we implement and While lies ideas. the there that to team's thoughts willingness with still to have change the that we is be, and I be

the and gross of reorganization our review we customers completed operational improving margins. a of with Last to operating costs goal our our production more effectively deliver realign our of and of small activities have our the some increasing quarter, we costs, team commercial products our to progressed

I and internal We opportunities have on efforts we to updating those have to and results when evaluate success tangible commercial forward look continued external both report. to to drive you more

customer on opportunities the our team while aligning with contract our for spent resources And areas I'm and pleased entire meeting and identify it's still efficiency well The to I've digging focused is needs. effort early external customers society deal operations and manufacturers internal improvements. of with overall partners, key our time our great with as a how progressing. as days, into organization suppliers, my is while

I conversations, and In number have organization are outstanding health. to to Minerva's asset listen from to real is echoing the solutions one People and enjoyed and ideas my from dig what employees thoughts hear time our to and our spending customers, understand the deep to outcomes wonderful provides time in and with all uterine problems continue makes field, tick some small I'm Minerva our functions grow hearing solving throughout of and prior is what in technology my individuals groups Surgical.

of X% outpace continues Turning XX% past during that has increased increasing quarter, million revenue $XX.X from some of Symphion we in past increased XXXX. half the tissue second period this the same million, to to to System in of compared XXXX highlights, of this reported quickly of Symphion resection quarter first XXXX. year-to-date XXXX financial market. period the the quarter in growth to in $XX We revenues and million XXXX $XX.X same from believe first quarter compared the our the and

Exclusive We to full we're are in unique share product to indicates efficiency and suite features products compete this a increasing that continuing believe to segment. important safety and Symphion market for with our successfully this abnormal results. ability bleeding our uterine of show

quarter increased XXXX. X% of period In pleased the ES to Minerva the we from ablation market, compared past that were this same revenue

growth believe in While overall market, this grow quarters. additional to has outpacing room the product we of the coming

delivering Our you customers, execution our progress on focused to quarters. value keenly all and entire shareholders today look and updating our team forward other to on is stakeholders. over I future

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

Joel Jung

and afternoon, Thanks, Todd, good everyone.

commercial markets. a growth and distraction and quarter, from were ablation experienced As on Symphion. revenue for in customer this resection new both has pleased progress we ES with reorganization the Despite retention small we the tissue with team the bringing customers and made the Todd temporary Minerva mentioned,

of Total XXXX. $X.X revenue revenue the product was quarter of in million of million quarter revenue the in second last XX% from XX% was .And increasing revenue XXXX, for total or of of ES the XX% $X.X quarter year. for of last from year the quarter last X% quarter of was $XX.X XXXX second XXXX, the or million of Minerva quarter, decreasing increasing revenue compared in $X.X or HTA second in total the year. quarter $X.X from to million revenue, million $X.X second second million level the quarter Symphion of $XX million X% $X.X second second total Genesys in the in of At revenue million X% the was

the Our margin gross reported first relatively last which XX% gross the remaining with of of decrease gross second quarter margin quarter margin a year, was in but XX.X%, the of quarter XX% this the stable of was XXXX second from in year. from of the

for XXXX. decline same XXXX half to While gross we XX.X% in second was first XXXX, margin of in same compared XX.X% the the in compared period gross experienced a of quarter XXXX the margin period the to of the

margin now our initiatives We're gross that are stabilizing. improve working through operational to supply chains

XXXX the Genesys in negatively mix product which lower margins quarter to currently Symphion impacted a shift from a margin. away by were gross of Our HTA second has

of we the the our from Additionally, manufacturers, gross have contributing price to for increase products transfer in in an some our contract overall our margin. efforts challenges experienced increase our to

prices remained XX the over months. selling have average stable past relatively product Our

to quarter million Scientific due second the product with second the recorded of period in Boston operating $X.X milestone $XX.X million decreased expenses period in value compared in compared in adjustment, operating $X.X million current XXXX. million in from included the Total noncash The payment of quarter in were reduction a this comparable of to $XX.X same XXXX when a fair prior second XXXX. the the of quarter associated XXXX consideration Absent contingent quarter value our expenses of XXXX acquisition. to the fair

included second stock-based expenses, charges was which approximately reduction quarter reduction XXXX reduction premiums. versus and XXXX, XXXX. compensation depreciation decrease quarter was expense million the was a $X.X and mainly XXXX. in of of second a expenses the net from and driven of of total the insurance $X.X Noncash a The in compensation a the million quarter in in operating quarter million operating in in Noncash depreciation million second in included stock-based $X.X was expense $X.X by in second reduction amortization amortization expenses of

was in quarter $X.X million adjusted $X.X loss loss adjusted XXXX. quarter for quarter a second compared On $X.X for basis, second in reported negative XXXX. non-GAAP million of net to second $X.X we EBITDA million EBITDA Our the compared of negative reported the of in the in million to second net quarter of XXXX XXXX the a of

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

with the to finished in million sheet, balance we quarter unrestricted the $XX.X cash. Turning

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

be $XX to now million to Turning guidance, we full XXXX in year revenue $XX the of million. expect range to

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

Operator

Thank concludes teleconference. today's you. This

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

Minerva Surgical (UTRS) 3 Aug 232023 Q2 Earnings call transcript