AFIB - Earnings call transcript Q1 2021

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Operator

Good day, and thank you for standing by. Welcome to the Acutus First Quarter 2021 Earnings Call. At this time all participant lines are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to Caroline Corner, Investor Relations. ahead. go Please

Caroline Corner

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

is call on to Vince today's from that are Investors XX-K. in first the by SEC to may will SEC, PM filings the Roman, Form fact call statements Acutus' and results cause section future including website you has This recording Litigation statements available to Reform on section statements XXXX considered the these also forward-looking no Private me Form available in relate required Acutus' expectations XXXX. projections on about based differ including this Time. performance which also website, of Burgess, financial A forward-looking by Acutus' these the in the with forward-looking statements Chief Acutus' include be as with release factors today, recent encouraged The discussed meaning results. to Acutus' section of SEC an within statements. are for of should call press Officer. X and on be Acutus' discussed Factors details update www.acutusmedical.com under the also Pacific Act David Joining except not Acutus' on press statements Securities and this in historical are the includes additional most review. described Acutus' President website more provided today's call filings, matters obligation the today. under law. the undertakes call, the the management's as during Acutus' Any applicable Factors of do for risk are forward-looking of to forward-looking quarter X-K filed Acutus' are Officer; Chief under Financial results detail Risk attached All and of will made exhibit Executive statements to release that the

turn first call for highlights. the his to would I over comments Vince, and business XXXX quarter like Now, to,

Vince Burgess

us Thank today. you, Caroline, joining everyone and good afternoon to

will that I outlined update its During execution, follow-up first markets. on our results, results, our in on ongoing as business call, will an end full performance year. our key I David quarter financial on improved today's provide and which in I as comment highlight also March. strategic for quarter in will and commercial our with the and turbulence our well details our outlook and second priorities operational

changing in patients and improving steadfast that remains team our than There patient more experience. is clinical Our outcomes transform the physician and nothing us paradigm to we treatment for care important to serve. the customers mission and

not our is three is deliver of during areas here, is ultimately technology and top shareholder disruption discussed our tech value. segments. vision Veterans space leadership that drive to who med extraordinarily recognize our and their rise among that As top difficult, and and innovation the the achieve to the call, of innovation companies last linear consistently

company-sponsored most trial With diagnosis, prospective advances, access, I months, the of of therapy. quarter outcomes, as approvals, data have now seeing, in that and and registry, as anecdotal recent Over and well case we clinical recent excel in to in regard. this product investigator-sponsored continue last products, confident we of areas electrophysiology: three the innovative are we key that the am each suite

electrodes highlights the this took was deeper dysfunction, and This included value liver the recent of the a the which the arrhythmia, ultrasound to map precise complex as to suffering the and involves for right to to after transducers, heart efficiently the to going create procedure, propagation quickly the drug so atrial core the clear wave normal tachycardia to including a identify significant chamber for individual. atrial best patient's comorbidities whole from the old patient the male treatment, treat eligible to a anti-arrhythmic atrium, proposition. quickly viewed identify first physician heart anatomical approach mission Due cardiac electrical to ablation not right our like occurred, case a Before I the catheters, create deliver and stepwise map failure. In share was option restore an utilizing system and our here, from using area moment to a case patient's and a AcQMap target. take where would XX-year Acutus' aberrant rhythm, activations crystal ablation RF energy that electrical Europe mapping

in atrial time successful despite minutes, resulting to bringing complex ablation, induce through about the with the rapid report These termination non-inducible, to By can back several pacing, tachycardia such hours, treatment. took attempts of procedures tachycardia into was if longer. contact physicians patient not atrial ablation confirming tachycardia mapping, using XX-minutes. Following complete the systems steps, and three patient the to contrast, procedure that take total traditional five five

Moving now to our operational progress.

is business innovation our and building pillars. comprehensive forth focus. and guide procedural update each like and execution, the flow, simplicity, leadership, we of that order potential. not is technology And access, our portfolio will start operational a in our for on last and innovation which differentiated I of start I'll and necessarily revenue technology weighted At here. with leadership. These provide step are During our and excellence. priorities any I'd call, catheter these earnings by of include, to drive commercial update through procedure three set an strategic

of of puncture sold of transseptal first announced, United received This manufacturers. for with In late AcQCross the of it with heart of devices. family to and devices. launch universal year, seamlessly is other reinforces XXX(NYSE:K) transseptal transseptal and previously pair crossing only own and States, the transseptal we mate As by specifically structural engineered clearance and sheets solo crossing interest users. U.S. began system, procedures our suite products sheets, Acutus commercial there XXX,XXX involving and We electrophysiology new of brings over April. to technology, the early per family the the the are the value what And physician use in

complete device to complete products, crossing in procedural These Mark transseptal today, for to line CE in the Mark announced continuum. an entire of cover products. As offering addition and sheets other array further countries our of we've received approval expanded approvals our CE access help

We U.S. transseptal account the Overall, and of expect provides natural during into guided any or devices the mapping a ablation in launch these CE Mark other access second our quarter. to point and and portfolio. our products entry core portfolio countries, complements

our and most system. Acutus Next competition, in therapy This mapping versus diagnosis where AcQMap our significantly is the procedure the is area is with guidance. differentiated

have success this strategy year. We persistent clinical and Royal technology real technique, the world patients strong demonstrated ablation settings. of user February our base, physician from boundary Oxford published Hospital our in treat AF is the This which enabled of by paper in and challenging results to broader out good on to in the core uniquely educating outcomes had AcQMap Brompton

core XX.X% hope results AcQMap anti-arrhythmic study reinforce absence an of patients conducted as that our prior study, who in many uses own the RECOVER XX-month drugs or sharing completed now both independent Specifically, from have system look the study initial and multicenter will patients, are of boundary to procedures. and the our XX-months. soon, in two that AF study, follow-up free once EU to as study. of analyzed. landmark We Also, have we enrollment final this Canada, ablation failed data in in a the RECOVER prospective is data independent were those AF UNCOVER these results at the from the and you, To forward and remind

move we to Finally, therapy.

governed approved line our may this is and release. limited you markets, AcQBlate and year. As Catheter the we product well-received CE earlier market launched and Europe in very This all Ablation of in during System for recall, Force-Sensing chambers the and was UK heart our use

market We are now in full release.

the paired AcQMap we well, guidance our Force-Sensing In therapy sites far, performs reporting our early initiated so ablation are system flutter. IDE with the U.S. And Ablation for Catheter treatment of AcQBlate April, atrial System that and right trial system. AcQBlate extremely for when

under are a typical and positioned choice to review in To plan electrophysiologist enrollment our continue reminder, As and of third-party the approval the product flutter trial cardiac to patients, management procedures by that XXXX, at project end, and XXXX. of on complex of we currently and tachycardia, completing for expanding research. ablation procedures treatment with FDA. account and, partner treatment annually to where sites right and for of U.S. year, in our AF ablations, and Catheter atrial complex toward atrial atrial running fibrillation of end end by paroxysmal the such of U.S. With the as study projected persistent flutter, the we the reach fibrillation. portfolio, by IDE based Europe, this U.S. up the industry System of is approximately are is patients XX% in XXX,XXX and become to application, and we course, The AcQBlate a redo ablations,

We communicated. this second-half are as this year, on track to in the study commence previously of

commercial COVID our markets. teams priority, the Turning capital groups, operating solid In these now direct performance key in European to an drive sales first volumes case continued continue to execution. quarter headwinds from our and solid segments Europe our results, These and and and placements. we and led to distribution see second Biotronik UK, major despite ongoing

As momentum improved for the business. U.S., we in seeing this are

providing who great Wilder, disciplined Commercial is and strategy. in go joined to Officer, market Chief March leadership new Our direction us Duane a

more executing for engagement are and segmentation, training utilization. and rigorous ensuring driving and plan physician We right on account the our growth

become impressive the as new scale array and the an Operational well products. will a grow to increasingly important continue as we Lastly, business, for driver as company. excellence of launch

more market But as product importance to dynamics will strength are in yields want We volumes efforts long-term and better business. in manufacturing inventory I the operations the detail discuss to the for and as call. our of driving well lines. underscore our demand, later the David improved aligning of production key these within

$X.X million quarter, net to Both XXXX, $X.X driven and our up as with exited of our to globally, the by the up new and sales installations, XX, quarter of seen to with volumes of installed at We procedure QX to sales last second compared We QX completed XXXX, versus generation higher all already increased XX bringing installed we of XX, AcQMap in of quarter. was a placements good the XX million worldwide QX. base sequential generated in sales. QX, during for results increased of backlog have four consoles year-over-year end $X.X of the XX of the consoles growth end of as equipment As QX, AcQMap from of the net March compared million XX, at capital of at additions total and in first April XXXX. pick the end the base equaling

of at academic the with system and institutions, with XXXX major high capital so more placement be our strategy far new volume consistent targeted many to community are in Importantly, placements.

COVID per system accounts January, see utilization, it Turning in moderating. wide those deviation physicians improvement some impact United limiting to continue with volumes the our do about relates lingering we month, standard as to vendors, train device access progressive the utilization a impact mappers. medical We lab as March per States, procedure see thus on both In own and saw we as saw above volumes geographies. our across XX% with for in we to ability rates well of COVID utilization some and procedure

In than on environment longer burden still addition us in that constrained, the remains will and capital external to execute continue. quite operating is versus UK and are normal somewhat encouraging, equipment much are is the U.S., as remains and of issue execution, the the showing in some Recent we this believe on stronger of we the All continue a limitations for we'd that access, the dynamic to region. significant the trends is different, said, COVID expect team a the environment. to contract optimistic are more of In Europe, the environment. processes that impact

only quarter, elective half government hospital first consistently due on procedures. of consoles active the During restrictions to our were and

commercial active currently as Importantly, over the see well versus market volumes the benefits our mapping having is market the largest in and In the team Elsewhere as COVID utilization solid year, that slowdowns, on execution, consoles. reflecting hard and is ablation vaccination of and our product has are console within are we there. and to following stabilization more procedure doubled which on our prior lines as COVID centers, UK, still recovery Europe, closely and performance shutdowns rolling of some active the in working economic maximize Europe, the we U.S. rates seeing

by Feedback previously, Catheter case launch. clinical Force-Sensing we European conference which was mentioned quarter, System the highlighted our full in in April. strong, and the AcQBlate commercial transitioned community As first also Association into Rhythm the remains at Ablation virtual Heart from laid presentations further

future ramp driver AcQBlate of year, expect throughout and performance. We to a key product be to utilization for meaningfully the this line

expect while collaboration been execute over we around results, innovative Overall, starting installations to remains Lastly, physicians, are our Biotronik our delayed extremely and Biotronik implementation, deliver long-term. making to markets be were like healthcare to proud largely and world. partnership where this to I'm on due improvements. engaged progress medium, concentration procedures The and short, to Germany, patients the training have of and on hold, continues COVID strategy see is elective with are there the team solutions we strong to heavily driver commercial a and bring and critical our systems the teams in

over providing our these quarter to exceeded to David? the we value further updates data, have sharpening will expectations, rest With our the throughout results. I'll of regulatory it illustrate for David now First drive that, continuously that milestones and our internal long-term turn Through XXXX, We year. product results forward expect focus financial look proposition. enhanced we are performance. several to and to our clinical

David Roman

Vince, afternoon, you, and everyone. good Thank

QX $X.X remarks $X.X as provided line. loss full XXXX of be second During a your details and adjustments year. measures disclosures the from The and net first on for financial results, outlook notice P&L, your you GAAP These today's In will XXXX. referring today's increase in our all reconciliation P&L up million to X-K we on call, our non-GAAP well previously, for full of financial is changes Revenues will include press operating whereas revenue quarter items. line QX driven of I In at release year-over-year full non-GAAP only quarter was updated today, both Sales and in versus in XX% release I presented filing, quarter reference. by A from quarter to non-GAAP P&L. revenue and for direct range the console Disposal, the first for capital were will with as provide XXXX and my the year, the transseptal million, press income devices, capital the driven QX through and our XX% of margin majority growth. to year's Non-GAAP AcQMap quarter procedural negative million of accounted XX% XXXX. $X.X quarter, XX% adoption for approximately quarter sales gross million sales by the of for of XXXX, of our agreement. $X.X first for contract procedure first utilization negative the prior $XX,XXX direct distribution of was implementation Revenue Biotronik of million $X.X in broad nearly volume first compared and prior businesses in our access service the sales. of compared in first agreements of growth EP the products and XXXX. distribution measures increased advanced the

to with our in that gross margin fully in write-off significant and our product obsolete several gross resulting lines. product release, referenced meaningful that line margins quarter. were impactor As first excess A the for headwinds inventory, there were manufacturing the from new impacting of press transition a discrete in-house access transseptal items and

non-GAAP $XXX,XXX, margin gross or XX and reserves impacted charges to and excess gross shelf inventory excess In by line. additional margin the short took points also We obsolete aggregate, life obsolete products. for approximately

non-GAAP charges, XX%. these margin approximately was gross Excluding negative

E&O this number excluded magnitude our given charges wanted to results, view a one-time and its this is not from adjustment. have but We that non-GAAP highlight

executing you call, yield in planning As as making manufacturing remember, as on discussed of may costs this I importance support commercial and to initiatives. operations. our progress well the demand improvement We're several excellent last regard, and

now million launches, the product CE better in new of same should update $X forecasts on a gross expenses addition, yields, of R&D U.S. the expenses launch, position. primarily million increase such Ablation to costs. global that due primarily were full the increase next R&D the period were was quarter million conjunction starting our SG&A ablation Force-Sensing last products, Catheter, public AcQMap In commercial our pulsed period Non-GAAP Mark first compared related XXXX, generation the $XX.X an in in expansion better in our and product available The for team several as catheter of year. countries, investments expenses with million field development mapping and with margins AcQBlate G&A upgrades software The for help combination of in access quarter is alignment $X.X AcQMap in COGS The drive same catheter. program, was company-related carry first our our the with transseptal Non-GAAP improved for mapping compared increase of and XXXX. approximately new $X.X all QX. our and in the to both to

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

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

the release. regarding included year our remainder of to press some would second full to and quarter XXXX, like provide today's were Looking I further in that outlooks, detail

in Europe, control, from In said, Our see that that and on headwinds manufacturing. launches, results major to that see we COVID-related time, where At variables key and first are procedure across we the performance we showed quarter are we as XXXX. uneven. markets the better focused such is at continue exited making performance the All shutdowns somewhat keenly strong U.S., same execution, can starting volume accounts. commercial are we to product fading

continued million. up sales you second we anticipate year, between growth initiatives, outlined QX As these this the of planned to quarter, each project earnings on we Based to trends improvement QX. sequential key the step and and a throughout give an and to we a update result, to On drivers. support call, meaningful to in five more our factors last like I'd and expect $X in on $X.X range continue internal see current million

the first is and timing sales The of conversions. capital

that completion. evaluations reaching several have are We

leases utilization convert are Our sales deals. working or capital capital these to teams into

transseptal are production support we pace revenue. demand, ramp In the AcQBlate drive response resources and Europe. devices. yields higher in of to is adding commercial should and for higher manufacturing improve and the AcQBlate correspondingly Second crossing volumes, ramp facilitate to This

crossing all As end of April, we've and seeing are resolved of accordingly. devices, for the manufacturing transseptal ramp backorders as

Third is product launches. new

the including devices, catheter, Fourth see launches VUE expect from conditions. AcQBlate, of increased the market mapping sheaths. of new year, contribution next the and end AcQGuide AcQCross AcQMap We course crossing product to generation our over is the family transseptal

global do of we our the nothing Europe of discussed by to variable us in back-half year, gives see month. show market that improvement continue that conditions markets assume see the the remain in assumption. we improvements by this serve forecasts signs As to U.S., hospital, today the by earlier, and while we pause Regardless, end on and

we Lastly, driver. commercial improved expect execution continue to to major the in be U.S. a

training We are ensuring critical the and in investing expanding account have we level of strengthening resources our team, and coverage. right

entering With into will XXXX and year, account the be reiterate that now first we in our the to full closing view now call quarter we remarks. the $XX headwinds heavily drivers this experienced guidance, million. and I for complete turn weighted revenue million year. to back-half of to project back will continue we a to all taking to well-documented the quarter together, second Vince of revenue the the year the aforementioned reflecting Putting range be our $XX

Vince Burgess

Thank you, David.

quarter, on of business the cadence of our first here reflect the in second momentum. quarter, and I gaining performance the is the early As in trajectory our

is Our we right commercial team I'm in the place. confident strengthening, globally execution have and

our years active and product and continue XXXX pipeline, registrations. In be through addition, advance to and products key XXXX for to expect very several we approvals

your performance. interest improve are will efforts the our open to Lastly, initiatives we questions. Operator? continued And appreciate call we starting your support, these We and take now are hold. to and to operational intensifying

Operator

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

Your line open. is now

Robbie Marcus

your taking first the for David, Thanks call. question. good great. And to evening. earnings Oh, welcome

David Roman

Thanks, Robbie.

Robbie Marcus

and year, calling first guidance probably start, about pretty were a still of meaningful the for lower, as the Just a the hair It's quarter wanted we in came think bit fourth just in quarter. thinking the in acceleration way was Street to XQ third rest placements quarter lower. for

how confidence quarter? new what should system we fourth numbers? assuming? third then revenue what you system think A, the of is you're then assuming B, and at sales that placements, utilization what I'd like get to And environment that So kind for can of gives about say, placements balance And accelerate to in and that those

Vince Burgess

of that's environment, So, of in terms kind all on. predicated the

we're I the kind think, get normalcy. the back-half of at in the U.S., environment into as of we're an that assuming year, we looking approaches

we're to primarily in seeing, the friction So, Northern access labs. really on some is continued Midwest terms Coast, the lingering East and thing of

But So most trainee I it will good kind we us close we're versus a running normalcy procedural whatnot, can a bring and get or there. in have to in perspective, that, assuming in for December and pretty one and towards be normal kind of operations. obviously, the Europe, as Europe in we there. of one And from person then plus to person other that normally historically seasonality back accounts of that. mapper holiday the are November, October than expect like start then is, normalized with reduction over something our up relatively light which August, September, and some of been quite think kind

that overall sense So just kind of that's the of mean, environment. my

up want of the terms of thinking as well, mentioned base new I in do, think to And to start types think talked call, terms net QX, prepared terms were of in well a little terms sense targeting installed our I most kind alone the about focusing thinking to how working and year phase the in placements, our pretty systems it we on, evolution. I've rest Duane In would it placements. and might the in comments, of into that prior where seen QX. came with terms a that I the have adding place things lighter had again. we're of a be of bit few tried than of the my I around, we that of in with probably we in we physicians can really we about what would in and I across we we think ramp have QX, to equal adds systems, this really then about as get at in recently and move when the be we right, models with pretty consoles placements, our of QX, April

So, we we're we wanted expectations the really installed in I now was light, sure track of miss I was intentionally. set questions? QX were the to We make the And have right Doc's little place, properly. just identified. Robbie's almost think on a everything right Did any

David Roman

the which the Robbie, I of add, quarter from thing think are a as $XXX,XXX that, on the variables to pacing I only that us. sales is, obviously you impact would anywhere commented know, couple you second of $XXX,XXX capital capital for sales. There each

quite today that the what in guidance today assumes So an can encouraged have out, for started Europe. significantly also see COVID the trends and since to move as are continues. our business that the we're seeing have Europe interim our But an And on we dynamic of seeing those the might have they we're quarter-to-quarter, the entering by moderate in quarter. would results. impact the on I balance impact did year point

Vince Burgess

partner our that Australia, and with few had out to COVID were forecasted due Austria, in also a issues We Malaysia. in continuing QX, Biotronik pushed additional placements

Robbie Marcus

R&D then revenue in up think ramping third be and throughout SG&A the fourth we the year? And scale year? to more it. think Thanks. the there's do about Got quarter. David, we expenses about of How do going Obviously, and through meaningful how

David Roman

Sure, Robbie.

expect not expense are to we revenues correct, expecting follow ramp throughout actually you're a of ramp the would meaningful we While the that. -- rest year,

phase have of the or the here. pull the And past we research diverse couple walk of R&D, of sprinted call differentiated to through pure sunsetting. that lot over years specific a development Starting in with reasons a investment together me is products. it Let wide of and really portfolio some

our of reflected would R&D expect rest that portfolio we've to product be is to we to able been as expense. the to largely the create going think R&D more able we And read judiciously prioritize that trailing forward. about So investment, in

Vince Burgess

which know and executed revved could XX-months, on I out is XX R&D The Robbie, that I just to the I getting our quick you, really we move been the jump over those disposable thing the six today, sell one Gen each Gen software many times. and revved been the announced, from as CE launch -- spend available as nearly approvals, we in through basically want individual you're of Biotronik. are that has component throughout entire when focused X, approved our partner getting And mean, before us. manufacture Europe, now console, And in to are to to on as of you've on. upgrades our And for you if U.S. production, point Mark revved basically and have we I last final X system. our of say distribution the and here and on and know

improvement say reduction So, to we the we've need our we things these that products, behind cost additional all tweaking, and I a have heavy would generation feedback address working products, we've us, rounds, things lift to second on. array feel is majority been -- full the cranked of are of our changes tell about early I it's which been some have now and intended organization. of and customers, R&D out received you, the that from the these about all about things are that great great

David Roman

G&A. we will ask recur gross significant see Robbie, up we I G&A, will at want and as I but that marketing, to margins, are gross margin real quarter time. SG&A continue it, transitionary I also in to tightly down at a have first say, well look On you lever as going then, We look didn't And brought to and be drive related manage while forward, will senior the marketing And as it the we in make in not that would expenses out do some, opportunities sales as level go management I forward. did expenses, to operating that in about sales we I see investments starting turnover materialize to expense, point force. that

Vince Burgess

say and in you we're in in QX real when correct. talking about specifically And time, April,

Robbie Marcus

And when do we see that turned positive?

David Roman

capital, for gross mix around occur with a So are and exiting that that rate full disposables pull it now, working QX. on $X some positive, to about positivity could a right in be are at we and million a run be call of a of to have quarter There margin quarter, of specifically should gross third quarter we opportunities with improvement forward. that the margin yield XX-XX

Vince Burgess

And overhead already to ahead margins positive. clear, It's on. we're obviously, our disposables getting are and the standard on be presently

Robbie Marcus

lot. a Thanks Great.

Operator

comes Your next Margaret Blair. with question from Kaczor William

now is line open. Your

Margaret Kaczor

for me, guys, Maybe the questions. brought taking for guys on board. Hey, one thanks Duane first you

You've two-fold Can sense? good changes. talked a It's give these commercialization you us about question.

accounts? is we give at as a from And within that, guidance being can them? or assumed and within of accounts about what's think we that assumptions The sense in COVID, utilization look post of one, but climbing us the taking those some rates share backup then coming ranges? as here, reopening encouraging, utilization you So from March were

Vince Burgess

some we We're labs have dealing speaking. deal with QX, were and our of six months brought XXX% the these Europe, getting back taken -- to And we numbers are technology to bit half positioned you were back with consoles great coming more if online. with In properly European relatively a generally that really in our the team, But couple accounts, down complicated the EP where this choice we we morning, basically of state a of of or labs again. update highly up lead it's been redos basically COVID. business. We the very now in to And there. probably see due -- in mature, and becoming doing And is over the small product, up they're the them entire they art the to ground, outstanding hospitals center's down to and And, utilization to we the this persistent And In standing back hospitals still get with for complicated charge talk field handle down of all this group art EP levels. of normal then expected state the tachycardia. there. and some of our over like nine are terms we're folks tenured or experienced the in team bringing UK, expect are COVID. like the in return UK, an And some little and feel an very, update. last of the and still more the them in actually seeing seeing procedural the going slowdowns, they've used our the Rotterdam, they the to hospitals are though, being than that couple and procedures. And getting on technology, just generally complex with right on call In volume, hours Belgium, getting a and still down. is longer customers the a patients product more Netherlands, up are of on

drive we So that's utilization there. how

are Now, is like I'd say That's, place target the a U.S., of we're plus XX%-XX% think, to in of a mixed U.S. a where I be more us. The we at accounts bag. I would installed. where a procedures complex at for bit great

generating We consistent have nicely utilization. rolling accounts and are that pretty

or had and which consoles in group have with a those week, where issues did of accounts last of single just day, were some of number single get the got quarter, in In we a last excited that room. account we accounts a We we a in particularly cases that to that part through contracting that one had actually are had four group, we were very we yesterday us had utilization. of restart, to larger through, the accounts that low

all a kind that But really of our sorts of those bag it's sure U.S. issues So making the of about well-trained. mappers for us, in mixed it's are

message. right the have We

is out really ablation things experience up which in and our heavily we're was that leaning the step-by-step of cookbook quarter EPs, Oxford. years, mappers serve is well. over couple out think our on that to boundary now European deliver paper and us for came fashion of a and I mappers, training strategy recipe written U.S.-based that sales the diagnostic boundary over having And to last over deliver playbook reps going the that One of of to very of kind core-to- our to U.S. our

the of key drivers, anything based David, kind of want to some the and on? So, you if know I those are don’t add

David Roman

think the parts if that different utilization, utilization what first we is, the about would add, improve our across quarter. does I the And I to overall look bring we to performance. to volume that saw are of critical world, comfortable Margaret, February guidance progression rates online assumption, revenue consistently as all in from contemplate overall because centers, especially pretty to some contributes that that in March high we the saw back January to we in sequential also and the continue utilization,

Margaret Kaczor

Okay. fruit still And up low-hanging of set back. as some part is, sounds these of easier did that what to get some QX, it like maybe what come I'm centers does trying April like, there's look for how

back-half the that start cheer hearing right? I across So, later rise just we assuming installed without to huge Am until base, hopefully the taking in of should that year. the see utilization

David Roman

That's correct.

Vince Burgess

that's think fair. I

Margaret Kaczor

seem you to that monthly going we couldn't the how to the be maybe I if based April What quite a think then, told on new pretty should as would see? you good. about much you we had moved what happy guys QX. that And Okay. Robbie, forward? that QX four of look gave in good installs, tell rate from How at

David Roman

okay I think that would point a be rate. starting as an monthly

Vince Burgess

kind Yes, global. I think Europe and pace. mean, I of Globally, that

David Roman

their we about contracting communicate around I targeted would and hospital is, think to would least ton necessarily availability have shifting to an make when And Margaret, thing being systems get placed, expectation. we terms we don't overhang QX, -- do targeted to QX highly say, we in The sure yeah, of that out it install. coming that base, in segmentation mean as and resolve out helps account that still in necessarily number execute And continue with vigor opportunities. of the the COVID of that is forward. on some contributes and limiting still to placements. targeting see to move outside to that significant come we that as resolving start there us we we with our U.S. clearly QX, grow initiative that does then, the key timing, a is accounts, whether being not more it QX We of QX, pace into the our want of is U.S. as installed control of be a over should at of at it's opportunity

Margaret Kaczor

Perfect. guys. Okay. Thanks,

Operator

question next with Plovanic from Canaccord. comes Your Bill

open. lines Your now

Bill Plovanic

Good evening. Thanks. my Great. questions. taking for Thanks

that of clarification. The happy globally? Is clarification April, just installs for a a you'd that. Margaret's four Just four or month four in you said be So, quarter see to question.

Vince Burgess

a figure. be monthly that'd good Yeah,

we think have have we is a where I than I month us. we'll good for more months do less. do pace that, two, think or But we that's a

Bill Plovanic

then, just technology And out the challenging environment, given we new year macro is to as Okay. get market. here, definitely year last bringing a

think covered have into How learnings of OUS in and is that your launch I learnings? opening what implemented commercial first the your direct distributor the both the you strategy, with year or in But, remarks. you've the that U.S., partners?

Vince Burgess

last about in with our the European team, talking into spent translates sure and how that months, really a making on the In time to think crystallizing U.S. we lot couple trying of it we're that

installed this Europe, of headed in where We've terms So electronics but expect already, and we where where we're number headed think I quarter of it base console that call additional ablation. electronic to only wise, therapy about in great electronic are, not nice installs. a got stacks we feel installs we're stack alone. we and double equipped utilization We and stacks of

that now U.S. bring we're the So, trying over to to

If or things system be. UNCOVER competing PVI will ablation the approach, what hell that's that. PVI systems can as an to satisfied posterior are think you're over do more experience do you just Core-to-Boundary U.S., to go centers number as need the our to redos, only differently, where versus tachycardias, of never really one really ablation hope do be more The technique in with system for their our and to improve standard it's if their that from And and for the adaptive, about physicians, technique And, two, deploy number about guess. I And and wall. for bent outcomes. more able think we and you're are electrophysiologist, that their think try to better more And facilitate to patient in job acute modifying in We ready, to individual that our job when long-term anatomically-based to and very I and individually their us that. it, to targeting, to things, approach. to place there's procedural it's for be an is of to or the team their a say We patient-focused, not just two here can workflow, adequate way current We we're great it doing, our has an systems, away point plus a I that, who's potential empiric modifying right more persistence, willing just current one place success, just targeting. individualized, make the see system really -- expect And modify think just focused unwilling willing better there go mapping on ablate, has conventional of a Number on training aren't and a each can European who use only bringing lot system taking a whiz to actually a to implausible frankly, a the for of we us think, non-regular map That's a in that commercial for patient. but technique. because a biologically in cool me, for now. be really rhythm. new one, contact done. bang, or optics

it's really map can and rhythm, not an physician that that level. take sinus we with someone think to rhythm, just irregular those not to next patients. system, party, that We has procedure and So our to help the in the the bring plausible the

Bill Plovanic

really the accounts using doing Thanks move paroxysmal of for. the the And of And ramp? in How potential should does board, you much expected That's on accounts of then, down are helpful. about they're you XX%, into targeting? them. And said, XX%? it come the as XX%, then think what my that by translate seen that actually originally terms case it's those kind the and really think cases, that, what U.S. that's some the of initial accounts, how that as more kind I into think we it you you for taking cut questions. this Vince, that of funnel have funnel on take are us so that and of clarity it gave Does you yet? difficult Have

Vince Burgess

just with and persistent U.S. the worked vast you doctors of to and analysts cases rollout of set quickly world like there's tools put a go feel sheer around the the tachycardia last complex, EP we confident that and you We that models the and the about our around the rooms. talked of majority spring, they country. improve. initial feel are how their When our of we about number at in those talk of plenty to consoles are consoles, the to together share success have, the how to modest of the and treating against in redos look out in pace total and of you number they and room the rates pretty treating physicians consoles rooms and As mapped they

kind to now, not roll changing being Now, process all of us. for to with we would to rollout physicians, do probably sometimes them of out three that ago. year that spelled and workflow way, of work there signs sufficient of us. through to sleeves folks EPs plenty arduous out and up that and and ready, aren't are number of and five these say trajectory, for want and of that a their do A lot hit however, go that, a I able work, those feel give certainly willing that there the And all year

think we what change So how and learned experienced. I funnel, see about on in we've no based the major

Bill Plovanic

Great. Thank you.

Operator

from comes Thibault question Marie with next Your BTIG.

is now open. Your line

Marie Thibault

any given good thank release would one Europe, love you headed adding there. mentioned for questions. COVID about I I on of you're can there? that What's the want hear David, ask to latest and you second-half we some a the I qualitative give rollout? our you event into. you're their the as to mostly anecdotes cadence market Hi, In constraints, to know here sort of taking Vince think users? models? resources And it that that kind of and feedback what's thinking utilization? some evening. AcQBlate on of Is from how the full the of AcQBlate And you're And doing

Vince Burgess

I And the for proposition bring do our in with that important emerging hard proof because time. well mapping great that technologies, we Biotronik companies, in. that well issues by And primarily system focus in of is other on our force the unit, us Okay. over to it's just long for one in RF and this paired We're together just been put doing of point then med as and unit, -- AcQBlate, usually, a there make is go not catheter Yeah, tech unit value Europe you think and emerging together. U.S., first this an And in terms I've AcQBlate with you we the here, monitoring really have a with reimbursement concurrently now Europe. our together mapping system. the is that our I distinction catheter, designed with as was have, seamlessly we basically, pump, partner to is that the want a works generator together a designed and it this

the a therapy best that a world. when is with to in with toe think toe catheter, it's up think I I unit. great, anywhere you stack the presently pair electronic in any business in And the it can the go great which just market, catheter,

Abbott with also some generator, to issues. catheter, an along are mapping force-sensing and our that system, work go. unit, these together We it get designed we have when finding workflow it used weren't comp take imposes just the And flawlessly from

that. with they the together, and consistently from like some able work clean were they're being that better small, catheter. use. as work higher to appreciate room is work very a think What likelihood work the The may the ground which they having techs and do things element rooms really easy And to about very have set very the They're alarms, up and to to really as room. that all the literally then up that like And with designed, single make have results. in we of have getting we're going to hay this way very You to the room be to these they're designed simple And, to you together, we electronics sensible. very everything every troubleshooting, and nurses not well consoles and signals light. are

be systems, love different where the are that controlled elements, we thing how other we all more noise to set The it when set every And know and is, we our up, we of up connectors along better set when we individual results and system. just supposed same is know the getting do the it customers. mapping we're we way consistent happier have just, the time with

issues now AcQBlate system of that. invested catheter So had we we terms a from capacity catheter, getting We and We're to there of perspective. pedal production We've the production there, through catheter our the are governing and speak. kind that believe in some launch I significantly not up over with back. have metal to in capacity really we're as that

we'd like in So, really mapping our one systems get systems, also well, to stacks, even to one and we're as have very installed a a be pushing with centers to basis some standalone have because hard really well And where we base. also. works mapping ablation significant don't it on

having all Europe, to to So, IDE job. they're think really supporting has the our a done team designed to running of lot terrific we're now the in a really -- We've just a just U.S., gets back pressing and us, we that. the have of in have holding in was with experience the not we together, that U.S. team already our trial, that and we're I have, or system up fun stacks which And great super eager benefits is and because work four for five there, of over we're U.S.

David Roman

just clarify. maybe Marie, And to

important modeling couple this point guidance. weaves to out a A things from into perspective, So our how here.

AcQBlate did the a how market the this performs launched limited we understand to earlier year, setting. product world through that we when in with release, call is, First real what we intention

reps that about factors turnaround year, have sell catalog see generate expect which another UK, time. month for on of to we a the very in that of any as revenue get quarter-by-quarter. all one in all to we NHS as as our of some We volumes six but in you volumes but across production quarter. year, interim, into are recognize We late market full where revenue. generate During And Biotronik, can in impacts factors applied moved There that In in we throughout an our the have revenue. first that materially Europe, UK, listing consignment additional ramp time, we the February, don't release it's we the the to defer to the that is the back-half in the also the to And as ramp, well of this revenue. increased deferred loading you would should expect get contribution hands well. QX, AcQBlate

Marie Thibault

then promising both. AcQCross. one on called a little here with in U.S., envisioning as Helpful pushing the bit product? well Thank as and the whole know Again, of then portfolio. how that Maybe that. a Europe I'll forward launch in Okay. about you that I Tell insights ask you're the it's you've part out us from on

ASPs here So, hear taking well? thanks for to love over to I'd adds And questions how time that the procedure tonight. as

Vince Burgess

this, this if been the following you've of U.S., couple company a a called the per good ago, structural along into as it, Xience, the of Rhythm sheaths. central and with combination And steerable heart. launch and part uptake in fixed we own that in acquired really, our line, we set Yeah, EP in ablation so we acquisition the and the is made both AcQCross market it of of crossing we product we launched years really a saw iterated feedback

that great line. So LAA we utilization were in seeing and product procedures WATCHMAN procedures for

we saw moving space our separate that sheath, by friction crossing from some only we around doctors EP away of the our saw user not from forcing use limitations the sheath of choice. One a was to in their device, EP also

or and hub -- we with fight from really own simple to this meet effective, them And do sheath they majority SLX, the want cryoballoon Medtronic, with transition opportunity make what that the ablation. So did the with are, course device, look, let's that from that that identified are lock matched, our the from we sheaths market are with and why fast, Abbott now vast crossing we and is linked and they diameter Those of in safe, the from we cross where And matched Agilis executed with fight, said, catheters the the Biosense are with on very into sheaths. compatible and used at let's back. of Vizigo we the novel compatible leading first to well.

a you've choice the your got So you think magnitude from can septum, procedural to out, hop cross for having they use case. without think, your I in, just see revenue our And per go of mapping revenues sheath north catheters cases base a about about $X,XXX pretty Order your increasing bit and you where we've change right can I ablation being that AcQCross clear of guide procedural XX% publicly a talked a in perspective, products. path of our towards to by technique.

It's procedures door couple mapping a where accounts really get procedures. a there process So them and asking right on once the territory. to are know because think for this our to market, Those a was and and get they for a started point have our of can they half don't think our that great opener I rep, And our mapping off even cat builder about mapping about out contracting to about for the a door just opportunity they using sudden basis, love product products, standalone of we them systems using got start get system don't heart to -- get there. we a We opener the it once their very yet. these accounts nice bat us. that them their it's and of have they in ablation fertile want They're use us structural and they I of installed. should accounts great all how that know brand us, for system. to

David Roman

Vince examples that this I specific next. week believe referencing, installed those of is be actually one And or will

opener seeing a So, new into this accounts. nice as we are door

Vince Burgess

heads pressure which as is guidance, differential a opposed they both ice So of septal wrap and heart as to crossing. ablation the trying the relates in septum opportunities. to cases of we're the nuance in that kind structural same There cross image to our Europe expect is still fluoro around, using or majority we guided see Europe, under vast

have the out really confident that and understand, sure go work that to there. right so this need make those of better coming starting it approval, now work and gate. highly And through we workflow there We're We we to we structural month get that partners with just EP heart the differences be well-liked over workflow over going this we're and have will some to issues.

Marie Thibault

Thank sense. Makes you.

Operator

Okay. questions are no further time. today's conference joining. Thank at There this for This concludes you call.

You may now disconnect.

Acutus Medical (AFIB) 13 May 212021 Q1 Earnings call transcript