AFIB - Earnings call 4 2020 | Acutus Medical, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Acutus Medical Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

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

Caroline Corner

Welcome Call. Fourth operator. Year and XXXX Earnings to you, Quarter Acutus' Full Thank

management's on to Acutus' forward-looking Acutus' statements. call the Financial me risk to facts meaning attached of Officer; will with Joining should historical XXXX. today's forward-looking are under of and on Chief projections President Acutus more include with call call, X-K including Factors Litigation performance, may the David statements, detail filed Acutus' today most are provided during the Risk update section SEC, Executive the discussed and described All made Private law. to Roman, release Reform required to that the sections within statements in of Chief statements Factors this except on as recent forward-looking forward-looking Officer. statements in this Securities these these an as F-X. the that as in call matters do by for future are filings Form This in no Form the differ and obligation expectations Vince Act cause under discussed the applicable including exhibit results of considered Any statements factors based not undertakes forward-looking from relate today. SEC are also statements be press Burgess,

SEC results Investors Acutus' filings, on Acutus' is encouraged Acutus' press section available XXXX about website additional release under for includes review. details are Acutus' you financial also also year quarter the Acutus' to full and website, fourth which the results. and has www.acutusmedical.com, the

on today's today. website of later Acutus' call the A will be available recording

Vince comments the and Now call fourth turn business XXXX over to quarter I highlights. for would his to full year and like

Vincent Burgess

I Financial whereby at company's change X:XX error filed the The X:XX a.m. Donnelley Time. agent, today. Donnelley Eastern the Acutus result Time, for Thank change entirely earnings for the timing. Services, automated is filing us an Pacific by today apologize last-minute the earlier time call financial results to for the joining you, everyone, of a.m. inadvertently distribution

this As move soon to our of open. this learned market We acted as results swiftly your we appreciate ensure error, discuss we matter. we call of understanding before to could

I'm mentioned, medical with announced with us last as Carolyn paired on brings operational the As Roman, technology David as very who, experience, him deep today background, has David Financial call happy onboard. month, Officer. a have we to we Chief are and strong joined

including Wilder David of as to expanding addition the changes, as have of appointment we leadership Chief joining In Commercial our Duane several our the team, Officer Directors. other Board made as well

Daniella announced at Fisher, to Biosense In Webster, February, J&J's the senior of Thermo Directors. Senior Fisher. our Daniella President Prior and including Thermo business. President Johnson Board to electrophysiology is addition joining President Daniella Johnson, & of Cramp a at Bioproduction we of roles U.S. Vice held for

and many of including In the of Diabetes this he image-guided at with together. successful Acutus, and the John his here helped other addition, of and highly team as in business members joined time Volcano, Board I our Sheridan, extensively worked President John Previously, cardiology Care, CEO company's week. therapy where field, the build Tandem

key clinical through our also further R&D hard well has on targeted trials. quarter pressing installing quarter, adoption are and on team as as for products the in initiate at the as laying our this here groundwork our the as and of fourth the first we been consoles several to launch We're In planned work product expansion year well lines efforts, forward of track new products.

our of commitment colleagues goes and their It executing patients. physician without providers that awe to remain want health to thank tremendous to customers performance for care heroic Acutus on and also I and saying of efforts deliver our in our I Reflecting to forward care dedication outlook, my strategy. the

to atrial excited to at our Acutus, with Nothing were and and gives and AF, treatment in ever Force Ablation mission. at procedure right A atypical XX-year live that iridium by old both mapping for atrial case the the ablation. seeing stood executed who better physician AcQBlate Professor female change This us properties typical and the Tim platinum us a strategy a AF several the focused sided, who commonly gold arrhythmias, January handling commented system electrophysiology. flutter. with AF as Bets, cases superior to more the excited remap involved principle flutter and Sensing patient see recurrent facilitate keeps our atrial paradigms our and an presented better experience. on presented was -- mapping We the be AcQMap X with left conduction more compared to Force was our case catheter, fibrillation, out This it the Catheter. and guiding or One atrial Catheter. here system to on underwent potential Sensing used the fibrillation, is ablation in featured the about care both of technology AcQMap as Symposium transformational We tackle persistent along continue satisfaction excellent AcQBlate that of symptomatic than Ablation

critical Force represents early our in AcQBlate the the the exceeded product expectations but reinforces at catheter new Catheter validation including and and overarching call, particularly now Ablation on provide systems product therapy launch diagnostics overall, benefits This when the Sensing will the proprietary featured system. of among has our of technology, and later our suite, the system mapping catheter of and case, strategy. I full performance using and several detail our our others Acutus a symposium, ablation more our

you journals an our clinical or development in via know website, us. that of scientific follow our you'll who important those activities For for was year XXXX

contributions an of unique in cases. our our the as and mapping covering case company mapping key used clinical vignettes, complex year, as of system technologies investigators the disruptive published as independent During and our papers have array highlighting well troublesome series

the by from on highlight a first jointly of used Royal Journal the online Heart This Rhythm in real-world published AF to the study seminal X our application of the on in U.K., boundary and I'd the and reported and approach, premier paper centers XXXX. recently mapping to ablation reported in UNCOVER paper University core Hospital. the circulation Oxford published Brompton like

with this allows context, core boundary. For connecting mapping that the outcomes for approach energy identify uses our short core to tying to boundary the potential to of and then the it better core delivered. and system nearest and or mapping approach The that is ablation line source the ablation ablating less the premise off anatomical a and arrhythmia

on by and core a AF arm, patients competitor's approach, the persistent with treating approach. XX This The but facilitated consecutive the atrial to centers, system, XX% individualized just in persistent long-standing long-standing atrial compares at impressive atrial boundary months. authors at of patients Acutus same X fibrillation patients persistent more persistent anatomical from XX% and of author compared to the very paper, with prescribed XX-month of propensity-matched their freedom treated and this from using reported freedom a the our system XX XX results to the AF and/or control using AF. nonpatient-specific AT persistent reported using tachycardia and In as conventional fibrillation matched

over arm. impressive arm in Acutus an Further, than procedure XX Simply roughly XX.X% and of procedure those the XX%. in ablation were treated the the termination likely control more of patients ablation were operators put, antiarrhythmic drugs their XX AF of the acute arm at experience only in XX% to or Acutus AF-free during to And patients in itself XX out off XX% AF acute or the achieve after arm, months. in treated were versus termination able of patients control out tachycardia

extremely take uncover learnings them the from in participating to us UNCOVER here at and and enrollers and gratifying for the deliver exciting persistent daily the these trial clinical Seeing were the who AF operators their results company. also extraordinary practice patients in earlier apply is

to to Turning system. compared from the fourth XX, were prior million fourth as COVID, XXXX performance as net with quarter. customers electrophysiology disclosure mapping million customers our fourth groundbreaking upgrade we in our Despite revenues January add $X.X $X.X year existing to quarter to headwinds second-generation quarter. significant XXXX, on well continue our Consistent in new the

XX, increased the XX our first-generation plus of XXXX. to at XX AcQMap During consoles end the second-generation XX from consoles and XX consoles we December brought compared as prior our base quarter. at to of XX, The installed the global upgrades, worldwide installs of installed quarter, consoles, combination September the up fourth XXXX total to new of base of

increased In the the base from prior quarter. our in XX total to XX installed U.S., units

outside through including While U.S., up third the quarter units, the 'XX the installed from XX totaled Biotronik, base of XXXX. in placements

challenges early hospitals the during vendors. we for quarter, fourth impacts late into restrictions was and as in did see and originally during were during U.S., early OUS off installations quarter COVID-driven the scheduled While Europe complicated fourth Activity console the U.S. both fourth November XXXX activity on weeks similar pandemic-related XXXX. access robust shut quarter out to placement enacted various observed travel placements. we some of surface became a the and the December. saw few slide in We In

great nimbleness As in training to times as installations executing in in-servicing. advantage we and have of always, well creativity change, our virtual take successful as of been customer we strive and and

case to volumes. moving Now

meaningful fluctuations Conference we QX. discussed JPMorgan saw I the throughout at Healthcare As in January, volumes in

October. in with strong early Our business the in momentum had growth sequential procedure quarter

weeks. headwinds drop November in have through a pick QX, sharp of part we and case see but drove the volumes in COVID-related recent of the These half However, to early December. persisted challenges second up started

to Looking ahead, continue we improve. are trends cautiously the will that optimistic

or launches changing As on and clinical -- development and commercial our activities. are such, we're we forward charging product

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the U.K. the physicians the weeks a shutdowns in centers, in market we partner, X we been in in Biotronik, key limited by COVID a just catheter release partner ablation. AV and novel rolling ultimately, markets tachycardia procedures, in different our Europe. introduction, line and of the product The have node, commenced us confidence system innovative ability technology combination that ablation variety our January countries and in atrial the since As our going XX significantly accounts clinical of mapping used case In improve in face our rapid per reminder, catheter workflows, X early of to first including XX and and acute Europe. and revenue and this and increase system is uptake -- of and atrial to give engagement, the results physician and share across

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crossing septal conduct this also the full our eager team to are with second quarter. launch access catheters We and a of in

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During in new X fourth first Biotronik we Switzerland. sold for to the our consoles accounts quarter,

are actively extensive the program, their mapping Biotronik concert expanding envisioned Acutus' undergone performed other on countries first quarter, month-long who first mappers, cases. when mapper our as agreement. During Acutus in well, have footprint and entered the approvals stand-alone as training we and we Biotronik into working regulatory

installation to see case with heavily catheters, hardware, for travel and challenging our pleased during are with and these very as engagement related from be encouraged knowledge rely distance strong teams software, our to we and continue Biotronik We support, times. relationship on learning restricted local

our Europe, partnership, seeing are and goals best uptake the organization has, and strong layered our direct organization, installs we we we COVID a U.S. from and absolute through with While in brightest some performance been some not initiation ours. like drive have of community commercial company hiring in into Despite and execution for sales of doubt, slow our early-stage achieved our to no of Biotronik new-to-market, and the significant struggled utilization. the challenges electrophysiology consistent the have

responsibility here, training to this. targeting, it at is and factors However, that segmentation team. take of there commercial full view primarily related play direction our are my other proper and execution for inadequate physician I

commercial and factors successfully foundational run battle-tested much Volcano Acutus future Commercial Duane former commercial have has of adoption started the drive markets, incumbents a X. Volcano, new the very equipment In mine, March to on and large self-assessment, and success These world-class one. After Wilder, Duane a ability landscape elements to colleague of leader, and life, develop at I, that navigate challenge to as organization and He I a team capital entrenched drive in sales Chief Duane Acutus. competed are at will same before is a at prior the demonstrated therapies, performance careful together entrenched our at incumbents. that yielded with bring he decided with Officer.

and making to make continue pipeline are our and upgrades progress to clinical commercial investments as and we well approvals. developments our In on the as we clearances addition team, to regulatory strong gain

our scope access and have product Our heart teams or the development ablation, of the of out pulsed lines on made major technology. PFA field progress building our left on

in and program pilot later to We initiate PFA first-in-man advance our to trial and XXXX. continue expect activities

or ablation, July septal the featuring pace each or our products PFA, innovation, full mapping. energy RF it have of elements contact portfolio, testing and our multiple since illustrate and X, conducted be XX one To of we preclinical labs conventional new crossing noncontact product conventional

therapy initiate also to system in clinical catheter diligently in have for expect Our teams next trial through and the patient process and the IDE our catheter separate IDE our studies enroll in working X U.S. been regulatory U.S. several the and lines, with our to FLOODER first ablation we our weeks.

initiation relevant at medical we through provide calls updates and progress presentations in As formal trials, we other earnings of these disclosures. in meeting therapy will public

Closing with key regulatory updates.

approval achievements XXXX. a mini the AcQBlate important Ablation and several our Following for U.S. in second-generation XXXX, patient including as CE and flex and electrode our productive we clearance for very AcQMap transseptal systems second-generation Mark Force as kit, expect XXX(k) AcQGuide Catheter access Sensing well busy

system sheet, several course X.X and access and our the products, of sheet AcQMap we with transseptal Over view MAX Mark localization receiving our year, on including anticipate AcQGuide mapping this CE catheter electrics. delivery QX AcQGuide delivery solo AcQCross

releases the as products and and development on system designed garner the to we customers X.X well confident a delivery pipeline and and increased for the is and at procedure. QX sheet. share per innovative, these that AcQGuide procedural Acutus, no MAX as provide XXX(k) have improved near-term productive Each we solo margin our U.S., I recent advantages anticipate physician creative company EP specific than and that the improvement our product planet clearance help out. of contribution company revenues In AcQCross market access here has product to am the team bears more on transseptal

for over our it turn to results. now David? I'll financial that, David With

David Roman

very community. good on and interactions, entire job, my the customers. Vince join get teams. and be patients our days and our the working I encouraged a coming on opportunity to few I I field vision seen of in an and the several Southern first everyone. and the I to be California, their dedication sales organization. and tremendous commitment further with weeks months to morning, of key and In clinical I'm acclimated am serving meet to unwavering road Vince, here you, these teams visit few will have and with Acutus our had Thank with some the in customers excited very to mission by ago, cases to A observe the

remarks XXXX outlook results provide I fourth XXXX. on my quarter full as as In today, will for and the year details well our operating

adoption the the of evaluation revenues fourth year agreements from quarter Our transseptal agreement. for products distribution installed consoles broad of and previously the million, quarter. and under in driven for increase conversion EP were range up of The revenue of QX was procedural the XXXX by $X.X $X.X Biotronik implementation devices, the million access ago year-over-year our

margin fourth in with XXXX. XXXX negative Gross was of fourth compared of XXX% quarter for the the XX% negative quarter

in to continue growth to We our support manufacturing make our significant investments outlook. infrastructure long-term

cost improve. volumes gross targeted programs manufacturing As we our volume expect take hold, -- increases and our increase as to optimization margins

XXXX. period Force expenses of quarter was in in for AcQMap quarter R&D of primarily same the Catheter Sensing Ablation million period of to fourth were related the catheter. $XX fourth compared R&D the mapping in million the our year. investments same Operating the and the with expenses program, enhancements upgrades to were console for $XX.X expenses million $X development, AcQBlate our to The increase PFA XXXX million prior in compared $X.X

same public $XX.X compared SG&A quarter the commercial in commercial with team expenses our $X.X in of launch for G&A for with the company-related increase year. fourth increase expansion due of to million conjunction an period The and were full the was in XXXX our costs. last million primarily

we non-GAAP net core basis are representative GAAP exclude and not believe we that operating a on reminder, a loss our basis items to As of results. present

measures, our release press and the GAAP non-GAAP tables X-K included to financial measures issued today. that please of financial reconciliation the we refer complete For a with our to

million the of $XX.X conversion non-GAAP $X.XX was of or the forma to fourth after giving our million effect per for share stock. of for quarter quarter net per non-GAAP $X.XX share a Excluding fourth specified of preferred net loss XXXX XXXX compared to our or loss convertible $XX.X pro the items,

totaled full direct of sales of XXXX. and year million Biotronik. full driven XXXX. To sales partner, $X.X distributor the briefly versus of recap AcQMap our our consoles disposables, increase $X.X year higher million for Acutus sales Revenue through The was by

production increased negative attributable of XXX% margin prior for the year XXXX improvement XX% and with revenue the higher in negative full to to Gross XXXX year. The was compared compared was volumes.

operating Total year, to million full increases company with from prior related and commercial key compared year public the organization, million $XX.X in the costs expenses stemming in of XXXX $XX.X for with for growth being our investments R&D programs. a

of Our non-GAAP $X.XX net pro per share loss convertible XXXX. or loss of $X.XX giving non-GAAP after or effect was our XXXX stock per million compared year to for conversion of the forma full million of to a in share, fourth for the XXXX quarter $XX.X net preferred the $XX.X preferred

Our the the million. total fourth balance $XXX.X cash at of was XXXX quarter end of

That some restrictions of where going and I we like the in procedure provide our abate XXXX, outlooks in full showed Italy, the picking were included continuation that that business further place to are today's would are still to The Looking a pockets some XXXX press regarding trends year with of part starting disruption, early quarter and such results. to albeit of release. globally, impacted speak. first QX detail electric negatively see as with we those into headwinds as said, up France

QX improving, QX market to trends sequential million project in we QX. the internal Based volume $X meaningful million the more a and in sequential step-up a anticipate XXXX. we range we growth QX further and and million expect in planned global revenue quarter to $X.X current and generated on to of modest initiatives, trends growth first do $X.X QX in from to With of compared see

conditions Sensing products, market production the addition certain have own In and in results, Ablation underlying to devices, Force projections Catheter initial as the capacity. Europe transseptal such in demand crossing impacting for our exceeded AcQBlate our

second start constraints supply during to these easing quarter. expect the We

also making performance we investments is pick are effect, to expected take the year. the throughout increase As to capacity up sales

we technology, capital sales equipment. console a and as Lastly, experience sales expect physicians our on rate of gain further to and conversions with also see utilization increases higher

together, for a in product the Putting revenue expect access fore the be $XX of the the timing phasing From million sensing XXXX perspective, overall to and a this year capital U.S. heavily approvals to be volume execution AcQBlade the all anticipated weighted of full we the year the back to transseptal ablation of of revenue result sales, new $XX impact we as pace and half catheter project growth in of range manufacturing procedure of a to products, and ramp launches, improved million.

the remarks. now back call Vince I'll that, to for With turn closing

Vincent Burgess

David. you, Thank

opening EP value call care Early our reiterate Before of mission have for support and health for the achieving evidence product our in our horizon we around offering physicians want conviction of Q&A, opportunity transform the on brings physicians to pipeline the complete for I to to and here. the patients, the our priorities systems long-term globe. further the

Bringing market and X value. drive focused we are vision linear, to is disruptive achieve shareholder our technologies key on to areas and never

steadfast remain development innovations important as We leadership. R&D innovation and delivering horizons. and engine short over the technology with developments extensive efforts internal our well clinical in our new long-term First, as product

augment and We these to continue to will efforts partnership opportunities. through selected look licensing

execution. Second, commercial

adoption are the Our to helping sales critical paradigm. teams and therapy and driving shift management

a is through relationship expansion entire commercial laser-focused Biotronik. are and priority, our performance we on also organization, the coverage sales execution with While top across including ensuring

Third, excellence. operational

standards. As we to growth. the be quality margin are support judiciously capital increased management the importance with cash we recognize in gross will same improving of ensure time, to we At drive invest volumes, continuing rigorous as our we sales our to well deploying disciplined as

and support, continued appreciate we'll your and Operator? now questions. the We call open interest to

Operator

first Instructions] from Marcus with Robbie question [Operator Our JPMorgan. comes

Robert Marcus

that into Obviously, What you come unit behind we time. play hopefully Because it more quarter, are dive fourth utilization. How out place, -- And of expecting you a bit volumes obviously, lower a thinking about little more. thought how are to units year? was can guidance placements through utilization? balance unit off but over for decent much pretty in start the could you the we does the hoping was first I Vince, placement saw process the versus quarter?

a trying X? to between balance get the the Just between sense

Vincent Burgess

we their Yes. of in they hospitals I committed -- CCO, adopt are Duane, make unit unit working our customers started. through raising new commercial patients we year, certainly mean, we're that quarter the really hard deeply through teams to want and are and that placements changes a hands our that this this mean, and their their in funnel, at I think are and have -- David getting persistent sure I and plenty go placed installing and saying entire the us streamline next the treating pace of hands through and laborious to What physicians technique. discipline a and placed into in our procedural bringing team at rather driving through these the they're their is to of some we've of got instilling process get I'm really taking the and that we and with now, to look how systems workflow,

the physician. adequately having -- a say step there that we wrenching sort the had make it But kind to, to It's we And we bringing we place initial bodies work there. bit not in our of substantive, are in are as on more than is of every anticipated. U.S., I and last not fair that's, new And the think a of originally complete XXX. recognize is change. call, it's done our to to particularly understaffing were in I just that where changes be this a physicians at I It's not site QX install and alluded right think, asking launch

sure daylights and So bring get on to the them want customers my right and really and journey, this great focus target service we of the get the we upright when utilization. them that installed, quarter that is go uptake system making we next so out on a

have what ability along I So place have people along -- of the pace and the models. the to models in units lines prior certainly we think

that such time go we we of that configured looking do to staffing? a of that though, trained uptake we want the One at and of our a things we the get is hard sure And that kind to we way do we kind every at install need. pace? is do unit, And make we're the staff -- in have here,

sure maybe So of making pace more focus going really sooner you'll in they have come our generate intense gates. generating installs, start new cases up, think but focus online, than some those out forward, slight coming of systems come a -- in I better of numbers, the see the change and much on utilization

David, you to have anything add do you that? want to

David Roman

thing for is it Robbie, commentary that accounts this have Vince's I with segmentation, is is account to the that, add physicians. and the one around underscoring in right -- us critical placed would we the systems right these our

And place what improve I So that see the that, think help near observing systems desk will now, and very contracts as the to my were to expect efficiency systems come we continue of really is that that term. I start do value to across I'm some marquee centers -- in placing. we the where

XXXX. the to your say, installed base continue to do in safe we state. And expect But it grow has to

Vincent Burgess

groups, I have number give and when will. sounds certain and if to like the then to And invest with who cases rather to a got the just new tell a together to widget, tweener embrace work go than system and get it try." try. a are a get you a of focus rough to bring and training their "It with minimum a the of We'll you on belt procedures centers technology late really there, into to there's who you, takes bit a And center it market, you us of you we committed just it's to stratify out, I'll -- X to early course, to have the come centers this interesting. those got fly really, just aren't on number kind adopters before targets. to mean, work, it small system people come And you've their then commit to with hard Robbie, perhaps what to who you're doing just group next in of the want really their training take then want give and level. delivery and of a next go and that or do center us, cases of under their really

fix bringing AF problem. And it to to those career. problem. we persistent focus have folks there that anything We nobody's go address -- journey are in the the the just yet. on are discipline the this on to before to market to technologies vexing in have need that any really no I and of Because want seen signs other just market my companies and fixed And that new this this

Robert Marcus

And Street a as will we basically you down balance flow as coming your How are is it. of before last thinking Got And bringing think pretty do follow-up, clip spending by where your long needs? a how you decent the versus about David, current for? out cash numbers IPO. maybe were cash

David Roman

Robbie, for and question. thank Sure, you the

So maybe take I'll that. piece of each

with and then start I'll go spending So to cash.

internal are the the commercial innovation, to of drive and Vince deploying how laid very growth our here our and prepared excellence. all out time, one So and And top in is his are value near-term look a both of remarks are -- things which resources. at which that hard execution we operational over we during priorities taking

that I past are my and environment same rigorous here approach and bringing an in experiences, deployment, mentality capital cost-conscious to Acutus. From being very that with am

places our can that our in investments judiciously we while have term the long-term impact, that both the supporting also most working immediate significant are dollars prioritize growth. to and in ensure putting are We

ending the quarter million the side, of we cash On talk fourth cash. with about did $XXX.X

of a XX play to we operations number go forward. believe factors of growth. months, I want and the we is cash to also going are combination here, least to over which But inventory. to this But like to have our We continue a well expenses P&L fund sufficient evaluate one obviously through we'll at underscore of as optimize in revenue opportunities control things as as

IPO. that correctly same a get you call, point bringing surprised results our we supply in maybe I a to the little certain this are a To question is about bit of perspective, time, you constraints to we here we a guidance. also wouldn't had time we the previously of expected in more than which and there's give mismatch challenge we numbers higher inventory at face what some this for impacting contemplated, we what down as you actually see. created what that The of But at if out the would be balance had on like and products bit the demand relative has talked been the

So cash production contribute inventory positively should we'll rightsizing which managing ensure to as to actively volumes be flow. well, our

Operator

from next with Our question of Hopkins America. Bank comes Bob

Robert Hopkins

Can you okay? hear me

Vincent Burgess

you, Yes, Bob. we got

Robert Hopkins

perspective, this decision. Look Maybe you let cash a There's ask. XXXX does commentary be congratulations from my year-end little love to for working your I'd up me here. contemplate of cash. bunch forward Where to that on on guidance just with David? quick a questions at just on following And you'll

David Roman

Bob. in Yes. give It's a question, I'm point this for fair cash guidance to at not the time. flow ready year

Robert Hopkins

I you -- least said mean, I Okay. guess at months. XX

The to question afterwards. have market to going back to XXXX. guys I know the I capital question -- get think just sometime will in be, So the to come I want we're

you more So to guess we'll have front. that when say on -- hearing to look I but forward

David Roman

And sorry, we an say, I XX-month would comfortable Bob, are for that period.

Robert Hopkins

Okay.

And bit of were kind products in up one, quick on okay. following terms what terms what a [indiscernible] Okay. just saying [indiscernible]. if ones, and And of in of a you're other X of inventory the then misalignment little

really very then have of backdrop [indiscernible]. a generating same And an follow-up. us so it interesting give is data problem, the point, I Because inventory at Just one [indiscernible] kind little time, you're final but there. generating revenue

Vincent Burgess

the sorry. really about the hard of we there. to -- question? words So X/X got It's repeat track. just Bob, Can you I'm We're only

Robert Hopkins

wondering a Sorry in I'm I not an and process you're ran the at have into early you issue inventory that. how when this point. was generating lot just might about dropped. revenue of this

Vincent Burgess

Well, you to back breadth I mean, of and line. product look have the at go our

got XX we're of, have our devices in septal quarter. spinning I our production think, pumps We consoles, We've RF have cubic our there. crossing force X then accessories septal a this brand-new we and a family and of ablation and and have gen crossing, or basket we're sheets, then our devices catheters, generators catheters And electronic line accessories. or up just X we we different launching whole X irrigation have -- which

products. limited best first do to when we anticipate our approved. market And releases those did we we then So those products would when level with out be came

our builds launch So are the sure work to gen our dial in they from basket as up it's have you been your catheter, while X basket tend restrain make you to hands transitioning building and production intended. prudent and when catheter. customers gen show X you your products, And then to after then X these they obviously gen the just our up that. we we of And away then

of a launches team been frankly, cranking learning you And things such mean, on some those of just planning And I for the little in done the business. out we're do which -- there, a device relatively all of medical would great new can we've game bit us. R&D has in I been the just and mix a fee us. has new So here. job hardest curve the And of logistical are say a has products impacted inventory

So we electronic from stacks our we simply European have supply for and right have we're to what enough -- don't ablation we Biotronik and catheters don't asked now, and we being septal team our fill at devices off we've held sustainable demand product on launch entirety appropriate crossing moment. levels stock. European the safety the until up that And in its get with of to to enough

David Roman

the we standard that some thing only make say, fairly, a industry for to to effective ensure I around adopt at our operating that to in importantly, and process the forecast, I'd more more drive but being is the to planning have practices products time. and operations planning integrated would having made that completely the capacity manufacturing markets right Bob, here right are our, going And both the obviously, right sure add to sales look that to right we're we connecting sales there

Robert Hopkins

quick need more in be evidence It over to for clinical How just much really goal U.S. last like you of the is you sort -- due with of them engage around How the a much line fact this of and then start data? might the just slow question, And the technology. had Vince. get physicians to

Vincent Burgess

to posterior PBI their are just ask treating The you, patients how driven by procedure or around workflow with familiarity on I think doing or and it's at physicians of Bob. of you. have what look approach, generally their and today what kind -- whether honest is if not roof data, trends. wall plus they're be line driven very data, It's and them by for persistent it little data guiding AFib, they're you

is and in we commercial ease use. focus bit in a and where just first up don't really our their clinical teams is getting in workflow quantify a physicians to current I And position our the -- some here and tuning how them to U.S. and What workflow of on have been know think slow over own and level workflow. transition to physicians to a of of staff these the difference. educate them their how And new on train I up

am somebody new map? these front just and and work order to start like a get What the "Okay. strategy?" system. at Tell face anticipated. means I And in labs and than doing said, kind energy to the interpreting change people. do I be doctors bit using maybe road say, we ablation what bit is a before am here more little should had step here? the there's But call, I time bringing cases they more the back to -- Probably this bit of of some a and time thinking think again, start more I of That this and How of test I me about a more bit I animal to time how into takes in invest

think more be we'll I that. lot doing a of

harder COVID just people what to get mind do each do in an to harder time, program. to lab to and do share, on It All I harder just of to of environment. more go time, get a airplane element single takes an harder this, just a get get described, animal and training is

So internal here. literally very this hand-to-hand not but combat, our and And just a people. own that's doctors, hands-on is business

new issue So rollout all of of procedural a just during I every sort little of just thousand that's this cuts COVID -- full been say of COVID-impacted would travel-restricted, with there's an aspect times. approach a kind doing made

Operator

William next Margaret Blair. Our question comes Kaczor from with

Margaret Kaczor

stage are the can it want second to specifically in soon U.S., a those an confidence making have the the at would of you've that the going and kind yes. of can that And question end. you how these talked quickly I as in identified as those And you what you change guys keep really I utilization? the what you changes? see is of What impact that half impact positive to with issues year? about And are the number on gives guess Bob have

Vincent Burgess

to people hired, the on that week a I spend say, to think, one the pull December, them training our executed It commercial And them single Training a up. every Orlando field for of one January. time, last and first with of of in of just we the in. Yes. week started week in crystallize and down to fly U.S. a to Mike us. quickly Center would down very come there, people around Buy, the the best We in out to plan the named business Nichols right I trainers guy

to times done to couple weeks, cases repeated you of have of last get suspenders customer bolts that and kind really how And some bake real kind train sure of right. with new in physicians. over also a make start of get your procedures done We're nuts X with and of new the you retrain early a we've and the built-in and staffing

at XX bedside get that, first every make kind sure I in a X a we and in mappers new to sales those with that doc X case So cases, every rep the aspect or just possible, have right. where the of executed a we procedure maybe mandate of

sometimes and have a the the -- of takes all raised mindset. walk that But just Targeting To don't past to hand system. takes and discipline. just their want walk coordination. if segmentation they a have you lot said they right have of that Now lot centers

out for Sometimes reasons day to not and worked I decided -- you just to and X the That where up Volcano who want I in, with for as day decided years I that's and of we bring now." ground Duane, in got "Hey, say, running the off flying. one

how were the we that Jude to do St. now, -- guy with the here walls Scientific, as executive X just into FFR day every in the the of needed getting the a we this. we execute knows in I and out. business organized practice into process dial to commercial IVUS it process this and vision very in, and And to QX competing had take as just this, kind and did is He a Duane launch how the the disciplined, good he's Boston do of Radi. QX with and QX. executive tighten this put field and we'll and come day do think handle of things out think right. And and office this I day do site we on and home And in up in this that

David Roman

a both multiple do some does observed we working was the a at training able physician he complex had came very ablations, was and good Margaret, when been where cases with actually materialize. and failed right X Physician -- In individual there have I actually ablations who left -- and mapped X was in think, cases, to one is an I it's AcQMap patient I and of catheter. first was with this isolate in that this and of point And And seamless examples right the in under it heart, very time, they in XX several procedure case total. another actually is who, completed that an having experienced complete and The in saw the pretty a mapper tandem cases about at XX minutes. the procedure. a side pretty the completed, that physician

room. ramp. training you once see well-orchestrated initial So in learning there a is period see procedure can is And you a curve pretty really can significant complete, that

Vincent Burgess

team to in And how just of us. these what a flawless. And we are just cases I spin thrilled. tell had the And I And and hopes the very, spun account. that Boise X the does similar is observe. up out up a up of have that high very there is X Northwest, weeks up a going in install we're going brand-new we see account, Yes. for had of and utilization just was X, kind I'll complicated was about there. Customer I you, to experience. ago, to that of very system we operator the

Margaret Kaczor

Okay.

So ramp leads year which and to utilization then both expected me of X kind this a of bigger 'XX. question, is into going that sub-questions

the from You've hand, that a X while, another stepping on more got the mappers takes people You're, away in right? second and having X the one different back in least, field, putting little for short in dynamics, maybe at so term, room mapper a on. account

change So those much reps? the is that, productivity of guidance implied how I of in within guess,

there? X I specifically, curve. per get more 'XX how Can utilization you about then a that think we And more maybe pretty Yes, should Because guess, going are have system when as guys importantly, steep per actually to we utilization week? you look to get to did procedure into we back that?

Vincent Burgess

a well, early, of seeing what really and Europe these and get we're it's and cases together early mapping of think with and of centers days of first a the we I in cases effect in do build ablation muscle that couple having physicians memory the the bunch you in bunch cases ear day, and a in the Well, weeks. as ablation doing cases by cases to have catalytic helps where schedule in

of north that, centers. That's north north X months patients, U.S., the is, think, patients. IDE centers. of that's, I I'd in initiate XXX initiating think, probably I AFib then trial. -- our point XX our of X, we XXX concurrently X.X, we And are think, X out trial, So in which X XX after from And away weeks I flutter XXX,

familiarity But trial." being So in if the much approach, that of here. physician and travel that clinical system as the cases and from matter adoption of and and in ablation in, obviously, memory, we will part bring seamlessly the able trial is, the our the team continue our to catheter -- schedule and help learning the is get apart therapy trial. bunch a activities. the separate part of the more draw cabling the muscle catalyze And as that Obviously, scheduled this is the studies think do we fact a of of by a the interpretation, build as and "Hey, casing layer mapping integrated kind and clinical year. the They that, into do into pacing commercial following and mid-year do way, which, clinical shooting, procedurally, the with let's of map procedures by physicians capability, will the familiarity the -- that

Operator

question Bill Plovanic Our next from with comes Canaccord.

William Plovanic

call Duane come to a And of of in think How force you now Just pace about of the the or in do operationally. onboard with -- I'm ago? what change of how here. months? think he's in, structure just X operationally, sales versus, up going a X, been it months coming and And thinking trying to is it, I'm you that couple expansion U.S. today just that are little

Vincent Burgess

we in SG&A half time back the the some and in last up our the XXXX. to in did certain for that to get around take and the Well, and in coming ablation we we above some of call, half back -- fully Europe up that accelerated is well the wanted Europe if line and over responsible get amount because and of be catheter which the sales to you year, of of the for a people In overage we of saw had a launch. in mapping bit trained. hires U.S., we a mapping Those speed time that as accelerate the recall prior spin plan of prepared some from hires the were in we folks and IPO

on things of We support the of rejigger sales side bit will the make little structure some additional adds And clinical year. might we mapping the there, the this particularly organization. of a side in

U.S. But body that our change got some the count well spend around dollar we're -- thinking don't we and of about look aggregate in we and ahead. the now. but in location There vice where sales -- there year and at in really spend I projected might I the feel see bodies commercial dialed are, the Europe between you material in we've terms and if shift we're in support but spend, pretty -- think the versa, like how clinical of in and people might

William Plovanic

I Great. field? really Vince, out in terms think on the level system a got getting go there. That's little You to you in have the I'm out trying And helpful. think you've touched more been it And are into a have you've higher little, then but of -- what here I learned?

in system, that you not terms of mapping launched any change could In the trajectory, that's yet major number is We there. Europe ablation feature have there your one? know the

there are question need us it system the And in then benefits, already line. get the that any commercialized time to the U.S.? the ablation think major And the same I relates features given you've as to to U.S., components,

Vincent Burgess

direct line So in and in our our Europe, majority for full partners. of both we've vast available product the Biotronik got -- is Europe team our

over crossing that, septal really catheters And we our of sort we'll product We and I fully yet. well launched there, think really launched have QX. all over line filled the the units diagnostic not Europe there over of we already because as more -- at on which the be ablation not just supply of in or do constraints. But commodity haven't we exit a should we've U.S., saving each We're problems, where we're do problems full those for Once gaps bag launch. got there. those those

and vibe you're engagement better a It's excuse in controlling the And to environment. ablation the everything competitive different It's growing a you when to it's better case. I'll reps just access mapping from completely just a energy tell a lab you, and Bill, frankly, from on And competitive are level can your better obviously you the the to and as of the case. And share opportunity and clinical well ROI as investment dollar and your as physician. your team. with helps mapping terms grab of from numbers that that wallet a much in of

bringing trials. In to think a the States, to couple and the that already forward ablation We've with help I talked a to the the are during we that couple trials going United engagement about States. that things there are catheters United of look of

that Secondly, the region quickly in interpretation is our helps Marked. have significant in kind physicians a is of guides apps semi-automated called interest, sort software a areas Europe and to of AcQTrack of of That a a is mappers feature it of interest that finder. algorithm eyes CE their and interpret kind that we

over to We that U.S. the to submission now bring are have over the and to front that I'm super FDA of in right with the here. eager

their help very mappers what and out them our and it and algorithms are looking diagnosis always is these complicated U.S. their guide looking their they're going to figure the so in Physicians at ablation strategy for is heck can in out focus to be. help they automation quickly is from special what the figure patients

William Plovanic

-- Okay. And And me. question for then that's last helpful. then

a Just new the of seen we've other companies any you this of about I lot seen know the U.S. in to date? talking systems Have

Vincent Burgess

the contact other variations I've that that they've any on I've for been job for any They're persistent changing No. the outcomes. think systems those platform have about thinks theme. cardios -- terms complex basic I doing photograph near-term cases. now. one in periodic the slight our throwing same don't all system. contact talk -- throwing And decades they've talking from suggests that competitors of with heard XX-year-old nothing at of is mapping software a a game a sure. it. in good than companies of I upgrades. for anything these these mean that other do systems simple at They're and prospects competitor simple I But and nobody seen great with a And mapping new been clear to effect X I cases, AFib

Operator

from BTIG. Thibault Marie comes question with next Our

Marie Thibault

I little users. wanted could to seeing going down U.S., now. higher volume a focus, users obviously area right an the be you're I understand in if drill trying bit turn ask, on into trends that's more I one, to utilization of new to the

if have would like wonder terms kind legacy system And little throughout could doing if a of users per to what users a or the you bit new of something week? tell can in, you us mind, I come ahead? sort the we So something about per where possibly, goal in of procedures track in see you are there's your year maybe

David Roman

as that really in physicians procedures rate X per on the increase. look we But well of on physicians per that. very that maybe and have who and a does over per base to month, is you think sub-X have across It experience, now. user gain bit average, our we Marie, characterization specific those of Yes. little week. at your is wide give And color fair, are utilization utilization are range a I then console that we

be XX X would that So to month. range in the per

So range. it is a very, very wide

of one mentioned physician. And centers X X doing largest is X I that's week. our to a

around rate have first pretty improve still to the utilization. We a here large quarter. expect over we a mean console do wide So band level through deviation for and of the very see XXXX, utilization of the including course standard the

utilization account is what the in than then of ensuring the Vince initiatives ramp once that we've we on one have And the level of key that we commercial we do that that mentioned, as open seen side right an such can the support past. execution faster account, training for and

Vincent Burgess

IPO, got -- our process it's IPO growing, that, market our how was accounts heads with given quickly question whatnot. a can individual to were but we're getting lot who get So we understand around to huge that know as share and us, the you're and trying around I during competing and it's a you all a you get within

So centers before sites were that doing results is have I we're from this now call, we together. a U.K. in leader hard the And and and a -- the pretty that week, Europe how market to encouraging. the look perspective share in in our running and thought up ablation take earlier the at this mapping European are I asked

-- complex came way the back procedures. so And it for was,

that of were at where system. between have at or left was estimates The so a a a those we persistent share that's we plain ablation complex procedure, XX% of vanilla came in they between XX% different kind and center our cardia. -- procedure share we stacked just those any complex is this back and So with mapping system a redo the sided or about centers, procedures, not have

validating we portfolio to we our when products our our where available have customers, to So can I the that's whole of mean, of sales the thesis go to me, to mappers, team.

Marie Thibault

you ramping of far a Europe a to getting then what could ask they are the so Because AcQBlate one or feedback find utilization so compared makes give And a to in in is That the how really of sense those us level new where sense. don't I users you better that in see sticky have you lot now, U.S. maybe if AcQBlate? follow-up. right encouraging. Can

Vincent Burgess

their and torquability around it's of these X Well, complex early pieces these are you And had I we've And what electronic is out like systems. what that I nice on cables X but banging catheters if the for said, we an a of LMR the trialed hours. I access think, further in and all wish far, more have catheter. The in proliferate not launch system, very trackability stacks situation. so against I've of we've have thing performance was and right just I what heard, X majority, been more setup. centers put these just catheters raised they're been the of ease or there on But And in days, now, seen and to system, a are there. The X catheter, of of So X the we've in different "This in electronics, just to or -- in it's this think fantastic and anybody it's and the of terms come hand to this." catheter industry, and felt would works. based the

a cases to the customer that's top companies mapping be to not And also, the a a knowledge, think make that simple going without is all our other full needs frankly, be But And direction board. product mapping cases. appears works. really the some what the to those really exciting for deliver can regard. relationship well And just try to competition that it I'm about there pull-through want. particularly it's some and in right-sided of across that to I to system can contact that's only builder. that given about And It it's and to ablation still my well. things have build, line used mapping with our easy system our just this meeting with we complex very allow they these don't for do money the force line and as pivot system elected work brand and folks -- on One in measures. And great drop essentially

Marie Thibault

Okay.

and there. That's it of leave encouraging. I'll Okay. Well, best luck,

Vincent Burgess

you. Thank

Operator

questions Thank this you. conference you for And participating. I'm this Ladies today's no concludes currently Thank at further gentlemen, showing and call. time.

may disconnect. now You

Acutus Medical (AFIB) 18 Mar 212020 Q4 Earnings call transcript