NARI - Earnings call transcript Q2 2022

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Operator

Good day, and thank you for standing by. Welcome to the Inari Medical Inc.

Second Quarter Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Caroline Corner, Investor Relations. ahead. go Please

Caroline Corner

Welcome operator. second XXXX quarter Thank to call. earnings you, Inari

customers guarantees These filings Inari's made forward-looking the to promises which the historical Inari's Hill, Bill and results, today's matters Inari Litigation Chief operates, risks operations. statements facts performance, future based and statements. and factors Mitch or Please for meaning these and unknown particularly Any are undertakes This performance statements call, SEC encouraged of forward-looking of on website the statements, today. trends Inari's the and expected for for or which of within update Inari's neither that the obligation me trends PM Inari expectations year forward-looking Annual be call regarding today's are SEC by will XX-K materially the and XXXX also the are call results, Hoffman, projections website provided differ should is law. of in review. quarter will performance expenses Investors financial to for uncertainties information. to XX, additional Operating for the Inari's this December applicable COVID-XX XXXX. available known management's performance from Inari's no Financial most Report recent include call call achievements on expectations Inari's Time that Inari's and available Hykes, Joining about demand the today. by Inari's and press Act Securities cause website position Drew you on this Inari's latest implied are ended including in President products statements details market on in do additional recording nor required considered Officer. and statements as Officer; to and any risk including by financial under results Chief second during and Officer; with Chief described technology, as www.inarimedical.com review results. of expressed A markets statements forward-looking or products, X:XX Private All the Inari's includes impact be the Inari's on operations Form Reform on release could not actual involve XXXX of except relate and filings with achievements has statements Executive on Pacific section

I over highlights. quarter Now, on like for second to business would his call XXXX the to comments turn Bill

Bill Hoffman

this Inari's today. with our public nearly Thank and professional continued Drew loved you on to Hykes on a have CEO Drew you, Inari all every lot preparing Board facing have XXXX. list. plan course no known of on and do X, bucket participated of Caroline, us After service October IPO and I role and as Medical as pleased of however, all announce second mission I since in to has began own beyond XXXX. time X January effective to of Executive joining Inari years Medical, the this thank to for I'm my responsibilities I transition you everyone Chief Officer of have personal the the of my well in he do, of of is we work for communication of Directors. team

his assuming Inari's and to future as role, capable I and fully lockstep am I decisions our is Mitch since been as all arrival the in his not of In Medical in prepared only but about and fact, am mission for to leadership. equally in Drew personally importantly our commitment decisions Inari have in him our XXXX. excited under CEO and Drew has I shared at Tom, in our plan. for key He, enthusiastic

but of drivers, recently products and from the on the as our excellent basketball the rushed our about physical I'd like of friends. and you a always, a minutes, impact collapsed multiple the Couple XX for blood You'll lungs. was from a patients from several FlowTriever with shortly removed pulmonary thereafter. heart made the conveys discharged immediately both artery story pressures, shortly story boy, levels on by his reasons. condition we've progress patient to extraordinary five while lungs. of share that a FlowSaver generations and Drew until and with large to hear towards hospital used in in growth all and left normal our right was now Procedure of he XX XX was people showed along with This physicians their lives our family completed Imaging arriving ambulance within He hospital hours. in the families. near was of His playing athlete his ago, clots to rate breathing times his nearby remarkable all competitive months returned clot XX-year-old is of

of risk rate mortality to of it and high presentation or carries syncope suggests First, PE a up XX%. fainting a

the financial ideas of exercise only wept trajectory life the in clot any upon in our and of clot family committed than matters. openly more the to the bigger man news shortness turn attention his the beautiful ourselves consequences, removed functional seeing to terrible all important We heart most has remain very and clot long lungs. I'd scores, the his like life Second, business. hopefully including about now performance. clot. lungs His to removing of PE from good survivors basic strain, the QX changed entire than residual procedure is hearing limitations ways. of pictures our alive, and young breath, right poor and conveys persistent but long-term remaining And He's no of the quality not this of

$XX.X QX million or year million of million, last QX XX% XXXX. Our up up revenue from was the quarter X% in or from same $XX.X $X.X and

our transferring expected we Our core saw than sheets, expected. QX of adoption as into entry based revenue more some rapid and QX. business expected additional We our on was strong revenue stocking of essentially

limited real encountered, these in shortages modest hospital staff to headwinds the ways. with procedure addition resolved we issue the seems but pleased headwind foreseeable storm. environments notably well-documented our to largely most the especially Hospital impact contrast This new Such issue and shortages staff remain to a well constrained QX. are The supply are shortages. conversely We future. volumes on not results we for our contrast we to operating this us and in significant will given be resource in impacted business remain weather suited expect

and acuity high hospitals. produce time consume target and patients clinical procedures Our economic excellent outcomes resource and states, for outcomes disease limited for

With our turn always, team external As headwinds. finds that, to things now of execute our to plan Drew. I'll regardless ways over

Drew Hykes

Bill. Thanks

I'd to on briefly transition. CEO like comment review the I drivers, Before growth the

this scruffy lives work and in Bill First and beyond our over a Bill in Inari person his as Bill's warriors, our leadership, and with a Board. products has years. started growth driven continuing to and me the foremost, to to closely patients, thank eight I ideas. X,XXX to to our we products. I Under by contributions want change friend look been been Inari's When company, forward personally during mentor transition Bill broad-based and and has he to approved no to Today, people increasingly big steadfast startup capabilities him space are company multiple last ambition are beyond. both venous markets, with clot a continues for serve shared to commitment over the with to on an multiple we public venture-backed XX at a large established these and

confident this growth of Lastly, our countless more of I recent have humbled the future be all drivers. am let we next our assume couldn't I now the with impact phase lives about made how patients. me growth. pursue and excited to just share to the role our we and I'd we've opportunity like share more as progress you on of to

growth first organization. expansion sales the driver is Our our of

XXX recall our we committed territories, will entered expansion end in this reasons. You accelerate our July XXXX. least organization the months decision of goal We by annual sales with to just at for of nearly the XXX the six reaching of We to made that first territories year. three the over

the year. traction the First, were we at saw encouraged by start we the of

highly impact have on second in territories producing had a deeper driver smaller Second, our penetration favorable accounts. growth

Third, we the year Notably, of of hire the first this more with also launch especially best-in-class XXXX team. focus this have challenging for complete planned enable will year several new while managed expanded complement management to a XXX we nearly to commercial than performance our half of the professionals sales in and new us with macro revenue professionals organization full sales and set delivering of sales products headwinds. later a navigating

our decisions. commercial progress within with most expertise physician customers. and pleased optimistic about the our never the making first with see to half are even hospital also We're growth execution driver, the the with We patients, year. producing half year Most VTE our despite second the existing of adoption back make we're the and solid a deeper success, clinical in informed skills

establish that is triaged to Our systems processes and are consistently to expert. goal VTE identified ensure and patients

useful effort. As territories smaller I are this for mentioned, especially

Our clinical third our to driver growth upon is base evidence. build of

exciting and We some few news updates a here. have

and presented readmission patient of the These can the analysis was and statistically potential patients Competitors on simply with First, major was hypertension. data from No FLASH any FlowTriever Both Meeting safety is have all broader X%. true. pulmonary the for of This safety patients fragile subgroup less are events, in fragile unprecedented not focused was the Society who The the in Interventional of during sort are yet severe thrombectomy XX-day indistinguishable of of profile mortality the high, XX efficacy These the population no treatment of extremely is and excellent patients. literature. FLASH sometimes FlowTriever this the exceptional. Annual procedures even suggested results sick deliveries. are at and presented the PE the than results Radiology. were morbidity study again adverse less population,

high is PE randomized nicely. for is thrombolytics against comparing Next, trial a controlled catheter-directed the PEERLESS, a intermediate superiority and reminder, PEERLESS trial patients. risk as FlowTriever enrolling

to new the data and we resources to Looking we patients. publication trials. patients VTE Every our our us FLAME on research and standard large establish fall registries, FLASH continue will while clinical PE production new we of as and the complete out guidelines. the season, expect this to the we the massive every In XXX U.S. this well, clinical to both commit not of change to efforts significant dataset the change differentiates cohort later study to investigator-initiated patient and report we new And care year the from CLOUT as believe of summary, competition. goal, RCT, report our further advances survival ahead protocol every XXX report dataset complete which DVT also conference Likewise, expect cut for data. PE late-breaking from

our is portfolio. expand product fourth driver to growth Our

exciting share We have to several developments as well. here

number a it combines market we just full Gen-X easier and use. FlowTriever release deliverable system. device features to entered that our of make First, of This more

our reduced. for case devices, new costless fewer to The faster it's fewer total to market already procedure procedures passes release, our technical and times required and more our is transition for this translate better used outcomes clot Simpler underway. limited procedures and were results with During seamless physicians FlowTriever removed customers technology better while patients. more and per

patients. Some improving in The per routinely used of BOLD of our both procedure is results release, acute market also DVT entry progressing our pricing, Feedback is being economics accounts. sheet well. also removes further now recent in and launches chronic it full procedure, costs been is our the product several excellent ClotTriever excellent. in hospital. are included in Because hundred for it has delivering stock the is now also from and

obtained for release. and clearances products, [indiscernible] two are both balloon-guiding Arctic the limited sheet in FDA new we devices Finally, market recently device,

about address market share target corresponding to and much more excited their are soon. they these unmet devices, needs We the

products All investment a of a R&D of result products a unmet these cadence new of designed build address that direct engine steady is needs. new made to the have to are robust we delivering

You more this later products new expect can year.

open case growth in Europe, fully expansion have saw into last is international managers In be back Our focused year, operating despite markets. will at we driver continuing challenging European sequential to growth the environment. each main increased new general We existing again geographies. now In driving on penetration accounts of of our while installed also the international the half accounts. three our team

the during Pacific Beyond America, growth base. and Canada modest off still in a Asia Europe, we case Latin saw a good albeit quarter

these market are year. the regions during We back towards across additional half launches working of the geographic

international previously, material component mix a noted not in revenue we've be overall our As XXXX. of will

to is making we're treat our to this the and enable strategy drivers. by quarters believe believe good investors growth to designed consistently grow our close together, that many investments to Taken our I'd will restating our to can we us we across for These and and more all ways, well. deliberate has and reflects we make. progress have patients. are We working progress believe and we mission intentional that will served like both In investments made come. continue as many

needs our more our are this enthusiastic patients. our are better ideals markets been the serious growth. patients, are to about committed couldn't I'd to people be To-date, phase and unwavering responsibility nor journey Mitch. our large, big I about the more Our of to has ideas. for things guided by significant patient With an like to we turn over do to same commitment and our next that, our to

Mitch Hill

the in our a million the sale initiatives headcount the clinical in personnel with quarter of up R&D the in the costs. quarter X% R&D the with primarily $XX.X expense million of well compared primarily the $XX.X million was second based diluted $XX.X fully share for of compared is quarter of from million as weighted second to year. basic and XXXX. of weighted and prior as fully the consistent the fully FlowTriever, our growth diluted loss for $XX.X with XXXX due new the of quarter revenues secondarily, XX.X afternoon, XXXX, additional goods $XX.X income same compared million. and second compared the related second Operating revenue year. Inari costs, prior Thank you, to increase for same loss XXXX move for sequential period for fully million per $XX.X of year. $XX.X our on million products was on with XXXX new and addition million was product approach. the and million share compared was from the the the company's quarter XXXX million the average product our quarter previously good and XXXX. lines. discussed to revenue $XX.X development for expense with the prior as to Compared tool and XXXX add Net $XX.X million The marketing respectively manufacturing period customer existing operating travel with Drew, prior These consistent margin products sale basic of new Gross was These the for prior in derived $XX.X $X.XX the accounts, in XX% period to $XX.X per second to of of of derived $X.XX organization, and compared to million our with of we and due or second basic of XX.X for our coupled was net second compared million, everyone. expenses during for of costs. the decline for our expand same $XX.X revenue the same the XX% the all to growth SG&A in from second to kit, and decrease due expense $X facility and million fourth XX.X% year-over-year a The net cost with share of diluted representing lines with period The larger due and primarily same on of are year. same customers. share were QX QX products the growth related FlowTriever to million per to increase successful $X.X completed of count of ClotTriever of XXXX XX.X% of expenses an sales our efforts diluted we basic of expanding between driven million the our with increased were The was year. in XX% our quarter substantially The quarter higher leverage drivers. our period was the been deepen to across facility period based XXXX development open relationship of pricing increase XXXX. continued much and net second introducing expenses evidence as XX.X split XXXX We've multiple product million a of average and same ClotTriever focus which income also were of procedure of FlowTriever in count quarter by quarter sold XXXX $X.XX the force the in headcount

to move Inari's loss comment QX briefly the company's on I Before loss. I'd operating like sheet the balance updates, million. QX for was operating to $X.X on

of over notably growth flexibility During considerable most and investments We've around had aggressively the drivers, invested commercial coming growth we've past discretion our all quarters. in drivers. year, our the these

to performance intermittent profitability. XXXX, we continue to during return operating we grow quarterly expect As our to

you have profitable As been five public we as company. know, nine quarters a our in of

balance sheet. Moving the to

of XXXX consisting Our $XXX.X of investments cash By million million. million the QX investments cash were of end $XX.X at of QX and of totaled million as the our of $XXX.X end of way $XX.X of short-term reference, and cash investments. and

were operating generated Our to used in second cash by operating cash flows XXXX. activities quarter in compared XXXX quarter second of activities of the million of $X.X for flows $X.X the million

by I'll comments Finally, Inari's guidance. close my financial addressing

for reaffirming our back I'd questions. the revenue. to turn For like $XXX the With to year $XXX XXXX, that, million guidance we million in of to full are the call moderator

the For Officer. Tu, Tom joined Medical I Bill, segment, Chief Q&A and will Inari's Drew Dr. be by

Operator

[Operator comes Morgan Cecilia first Instructions] from question with Furlong Our Stanley.

Your open. line is

Cecilia Furlong

in both the thinking it and just well. upcoming as back supply taking better really guidance, reiterated your wanted the on year, detail a this more you what XQ a for congrats and that assume and capacity you how through sense staffing half you and start afternoon I as your shortage contrast new saw about for as the if to dynamics can from does in thank standpoint? the staffing get Bill Great. the what Drew and of But on Good questions you well out roles from or quarter that called in with you're talk

Bill Hoffman

want Cecilia. on do to Thanks Drew, that. get started you

Drew Hykes

Cecilia. Thanks Sure.

cost expected. entry we we able execute product these know, So, our we identified, present we was present XX, that as core new the executed headwinds hospitals, outperformed pretty some in interventional well, good the staff the manifest anticipated product to our you at had were for quarter in of in headwinds, actually to in the execute launches, certainly to that product It's the despite QX. performed macro that first staffing a we all felt the and contrast across and and revenue we some early manifest shortage the and as we how and level the procedure quarter on from would were staffing flat QX you for we've level. of have guided shortages about exceeded the also as clinical census QX particularly the we some inability actually result, We bed the most really and themselves able removed essentially shortage fewer expectations, it's business that actually those carry reduced level entry into with full a those fantastic in that's accounts country we notably, pulled to the were that of the feedback. and see product themselves see Despite the during hospital actually capacity, at good

away treat footprint, to resource soon high are compelling us, after those all We really anytime ICU still having ahead with products two that that headwinds So forward able pretty the are modest a that so we're proposition. acuity not see and guidance. stay, to no going we was particularly economic got those value staffing feel part well we do certainly of that, relative of procedures, shortages, staffing positioned all of emergent those our said we've shortages, a

we're are in that and like and but only they So limited not some those we we interventional can STEMI staffing is feel apathy they're ignorance stroke real going now navigate for cases emergent and not shortages, and The against capacity. but reality procedures other highly away. competing

decision confidence high all at guidance was backdrop, as a hitting giving point. us that with felt that reaffirming in So commitment that this the we right

Cecilia Furlong

of and on impact And your stocking? that comment had you from component you I that really in That And about if in especially just you've makes could top thank products XQ, just the we sense. in follow-up just just to about attachment saw XQ, the think business, to for questions. of a some you line rate XX, the entry lot what then and to-date. stocking could the what if just as then as you taking impact with the we of the think comments the should think XQ And how called pipeline out, about quarter

Bill Hoffman

on. go Please

Drew Hykes

Sure.

entry to just is maybe on level what So for set everybody.

purpose-built the procedures. into product becomes again solution. that entry, the from to for a another candidly the of was relying that the was patient than physician been the cost it we that, great sheet sheet it's It's manufacturer Up difficult highway on and So a procedure. inserts spotty our supply added kind a that for until FlowTriever incremental we've third-party the first from suffered rest issues the chain procedure. to use, it Other of

part obviously placed large revenue use. a - that's launches. in actually new is it's looking purpose-built of aspiration cost as part the us got the of our product the additional So product to incremental those last result, hospitals. a specifically the excellent, back easier Maybe to those in our procedure for a removes And FlowTriever, year, will always, question the product were that that those it's hospital as that stock launches excellent. during will has bore have procedures. developed fantastic, products capability of We own half onto FlowTriever reasons product several get been to why as it's ahead the some for exceeded it's your entry which XXX% that's level I of essentially the we our as stocked, uptake opportunity shelves. for expectation much important And we hundred feedback offer we places And obviously been because procedures. been were We has said, used use, into it feedback at the PPP, quarter, being it's the used our the for accounts again able the essentially has

Operator

Our comes Larry Fargo. Biegelsen with question next from Wells

Your open. line is

Larry Biegelsen

afternoon. know I for be certainly to question. Bill and longer, for a be while Thanks you're missed. Good Bill, taking Drew you'll around going the little congratulations. but

Bill Hoffman

so I appreciate saying much, you Thank that. Larry. you

Larry Biegelsen

Yes definitely.

from me, on two one about So XX%, you just first half, In the were the guidance. the implies half, growth comps XX% guidance the in easier. second almost the grew

I something have question So guide you in see And do the I conservatism maintaining my is, or do is guidance one that we environment which you there how guess QX follow-up. the the guys is is about conservatively resulted this think this in or guidance cadence? QX, and typically

Drew Hykes

on Larry that Yes, I or want Bill started as get to well. can Mitch jump and in maybe one

mega see, sure their when we catalysts, think half numbers to of just professionals commitments. guidance those Those readouts level. back We some hitting that talk right, anytime are remaining of not to impacting put We've CLOUT relative see and particularly heard we that and high that look both important to had as to headwind we as of hitting QX, we us be some board spot staffing through was there, this have guidance that accounts thought was out you into year, we So away that into going a me further be see we on level coming sales important about make confidence important in and of of what soon sweet out our there about, we've got of as we I matching the FLASH. move and do headwinds the productivity and the brought shortages, those class wanted the all as there'll will productivity. essentially out their you QX ramping we

just progress FLASH FLASH, conference coming of PCP in will QX opportunities, revenue another coming just another some at and In quarter our CLOUT. we've also We've in incremental got VTE fact, one on for got dataset late-breaker another our and products new we the for for some think offer announced excellence. that the XXX-patient

as exiting point amount all some we're this a think the going in of we for forward. to gives that the I but mind fair us momentum have shortages have reaffirmed guidance did year, staffing confidence we

Larry Biegelsen

And you should little Drew. sneak an can next I've helpful, guys then plan long-term a to bit Thank of targets? us you. of any hosting is, expect? financial you That's do one a give And got give Investor second, month, preview what from are meeting investors you question we

Bill Hoffman

maybe Larry. dive there in Yes, I can

company. think operating talent well. profitability just executive spent to there'll installed the - the we of it's I so is throughout of range, product of we're little time much that excited think as we know, want above, offering I some imagine. the depth might what the depth going to you think we're at the range that to range close There'll the already of organization, and are discussion in the mentioned have we of convey underway plenty and that share I financial the this determining But So to convey about what the one much a I of the on into want on capabilities to performance most the we forth. lot organization, how but interested I shared We're near referenced have we're level plenty deeper this still bench, the touch the little that of range, long But is been to long of company. things performance is be our trying already I planning people not you of by feel demonstrations, confirm near of be And released the in terms think the here at think transformation we next or the return we really communication and about as year. least below that will share want to to we've team process so and of in the organization, some

fourth So I that I think sweet that productivity deploy And as ever see hired begins think extremely in to terms begin we as in that we class largest new way the you'll have that and quarter to their this to their us the resource class with regard plenty hit that served we've of well. curve. discretion of the early spot

weeks So here Larry share anyway, within that lots to before or six Day. so another more Investor

So stay tuned.

Operator

you. Thank

have We Thibault question with a from BTIG. Marie

Marie Thibault

Hi.

Just Bill congrats my to deserved. CEO hope list. role, that through we're the work very as offer time get well well Drew I bucket talking wanted And every quarter, to some going you you to miss to on to but that's

Drew Hykes

Thank time. Yes, you much. so plenty of

Marie Thibault

you of here year. first mentioned to on reps, over this XXX the new sales the half touch I wanted a in

were then sweet off are Bill, for of the think, hiring or cooling to really beginning the goal it new year, takes XXX long so spot that productivity at you remind about expectations at your here stride of rep on talking and and Inari happy us a hit started what their that you the the you are territory to just how on at half I the the sit about back year? curve,

Bill Hoffman

you Drew, want on that. to jump

Drew Hykes

Yes. Thanks Marie.

we in launches field position growing wanted of a in those So on territories where of really very the we into product anticipation on launches the some hires. that investment year. some stability and size of the We that put coming as that was could some and in smaller new possible We in made that the to pulling really back those focus get new on to executing see in we of having across ourselves wanted down team that did to board. in particularly the these ever we've largest class as intentionally we half brought

to the opportunistic of how to XXX. do team, we're into right that positioned I going adds incremental continue year, to think the we back but some the So think, focus just I real back look as like we year here of half on north half make around going some more the to bringing to ahead and of now, launch trying just another board less described larger this be and of big on product and is more class group and really board. settle we much brought new things that the on on into I execution the we'll

they even quickly. certainly within reps adds because rep what quickly. tend helps really essentially to come of kind kind several and before the are many limits work also in weeks. and relatively productivity terms pretty that last of some stage, we're We've existing their our mind, inheriting stepping split, of they of productivity, upper continue speed to territory we through the Keep they'll curve tested productivity of our, come to of them to are see split just hitting the almost so upper a folks at able never all ramp, into we up some In QX, up are. the have new the we But see accounts that all are the limits this established territory of that as

in So they settle are just really fully their territories beginning to trained.

begin So improve QX, performing we'll territories. I see that established productivity we during said, as like I they'll enter really QX, think as and

You'll board full not certainly on folks those see were quarter on certainly the impact QX. of P&L, for many the the in

class. So a you reps, the that burden of large QX in will see burden as the certainly see you'll again fully of full reflected that complement P&L in

Bill Hoffman

Marie. add just thing one may I there, If

public to and position has as [indiscernible] of obvious history commercial our seen in system month least strong same a and the said, spot, the we XX getting sales just as first that we've in in are P&L they're their that history at it's see before too productivity and bunch give who a productivity them things professionals commercial and sales But months, give the chance productivity we the in that the not the don't efficiency it us improves has our presence see probably beyond company a right, sales our board through we exactly has incredibly chance, that of on all-time been months. we strong think first will is low mark. many to is our And changed, now, the with breakeven our literally Drew gross margin efficient, have come because is consistently mature months an their us in really to - of lowest don't first One territories it productivity I and at split. put hit and professionals a XX these early the that much earlier of a I of

- terms year next of line. but operating that's as in of terms not really back to also year, growth we of net get only we we're and the and income end the So in why optimistic quite how into net the

Marie Thibault

burden but think year? very here and can mentioned outlook the the question P&L. intermittent of line look we of how the should the terms what on we rest of in for when the profitability, that's Mitch, like I to XXXX, about the us XXXX rest you what about expense OpEx segue think at hint that Drew Yes, helpful. from Maybe about my could a gave next good

Mitch Hill

terms intermittent comment ahead bit Marie. some heard we the I and that provided. talked XXXX and and I addressed, it's jumped our thanks think see guess the we've sort environment. little talk to also back continue about remarks, bit just through a to And about that and I in which reflected looking Yes, you've made. of profitability in We've QX little I I prepared of thinking XXXX operating difficulty QX, to at guidance a

an some getting heard outlook in for low- could mid-teens, think just business. the take the categories instance, operating we of topline Bill. QX to of the looking could levels I reported spend we're QX, So And hopefully and hitting we'll cost then OpEx bigger that that in in then full both probably that's QX let's in QX, hired reasons something the point probably call to at Drew other of class from have of better at But $X.X the from the us, P&L the you improving consistent for operating we QX the that in the for view, more for expense say, and as it, be in discussed. million impact that I we've that loss

XXXX. commented interesting The longer-term was, longer-term would on So little about go and thinking company. I back XXXX Inari, of perspective, remainder touch real already opportunity for that's sort the for positive the bit at that of a on of I actually may profitability just thing the the say, asked Larry question thing that. the this and and

they're terrific operating profits business the really We be the significant for will that company. so ingredients have all a sustained producer of

drive team, You as looking of the productivity mentioned, and look the the opportunity, that just of leverage team, margin you through you think gross productivity at the really the the that's Bill at something market sales we look too. certainly the to look of forward at opportunity we business, the are sales

of that today in really We level on a are the we position confident of have to to comment the business. kind become that timing not a of are specifically ability every that, but we

Marie Thibault

sneak to want here can revenues, a chance determine All I of one I you circle how from to much on volumes pushing last of back low risk right, percent I of came I range, of my that could some versus question revenue. wonder your us was to just luck. at very it Cecilia's to try if want good. somewhere teen give procedure the in one uptick. outperformance range? stocking the Any stocking

Mitch Hill

our Yes, in May. our did Marie figures announcement disclose earnings those QX as for back did we in past we

I think stocking everybody like be figures and percentage we things counts procedure no longer revenue to would to that that. and tried specific telegraph we sharing for

our the discussed. for with way really remarks, we've we As all of that the their Bill and reasons in were entry sheets the accepted pleased and by customers performance the Drew both mentioned was XX

more from that revenue the some really in moved to much I'm to QX about forward than so time, definitely was it there say reluctant QX. timeframe probably so And that.

We again the just QX. business, performance business that in core at very of of pleased the the core talked looking back are, about fact the we we're kind with

into a So little specific I numbers. hope any bit you that really helps without digging

Operator

from Plovanic We question Canaccord a with have Genuity. William

open. Your is line

William Plovanic

giving next month. I in my look when I thanks. you forward see person congratulations Great, to

here, the So - full half of RTx a products when that that first [indiscernible] slated and launch product, is can on feedback the provide one balloon any you think do is of you market question for on year? the

Bill Hoffman

Drew. there in jump you don't why Yes,

Drew Hykes

Yes.

the system don't well our know, clearance just days within that is the commercially sheet, FDA as some referencing RTx RTx now we system the received already for. and feedback component component the first we clearance we first XX last those now that balloon couple for of rollout had we So that got you're which two and only what not inform first I initial probably market Bill, of of but know same we got release. the where in second system guiding the of you it's RTx that ago our underway use really full LMR, overall the gather phase to then weeks. clinically components We've of that

us existing and patient approach need TAM. feel new part of short But release to ready a normal to will LMR a days and get full detail whole behind shift until kind additional back talking that as for still about of system into like detail the stop in And through to as hopefully we point, of the LMR we're presumably to clearly designed But we're population patient to is So unmet full phase it we population probably think of forward we'll system. product. work. of talk we're that moving look as ahead is a position that early what here, with year, with address, of market in market lot more RTx a be where release our that that and in outside move half the about VTE we I overall the of get be the our we

William Plovanic

I center that program. over think about And I really great. if excellence Okay, VTE, don't the could then Thanks. talked to switch we of

how much - in especially to this are going the help a and the many [indiscernible] of, progressing guys VTE expect just with expect terms yet do how centers out with the impact having hospital, staffing how having issues you you Just any to can and give is facilities? with do you along - coordinators

Drew Hykes

Yes.

and progress identify caregivers processes to make the our growth that time, has patients XXX% for bring to existed approach. the forward disease and to key fully of that historically really these and best these is everybody, systematic and of patients, we're those them and for of really them care systems that the designed quarter-after-quarter the to that can developing of understand patients. group lack on a care of the how a informed decision stratify risk So excellence And challenges just that second good address VTE making that's market remind one on is fragmented driver entire program VTE of Bill, the part and

really to see and the and investing unlike continue care making We The we also, program, iterate stages and VTE program. with fragmented program to solve overall problem we're placement unlike systematic coordinator into We're important coordinator, improve understand that but impact, that's did see that that the an the if and we're the lack VTE we excellence at of it's is move helping I STEMI what So biggest in importantly, in refine stages hone that quarter-after-quarter, approach in VTE you stroke, progress excellence our trying we better along you from, most think what gives and development where level. scope and account into later we a continuum later the the of add business work. into the they for VTE do penetration will, work the along and and also even of help of profile those can work result, the in coordinators accounts goes incrementally understanding moving of more level increases efficiently call, optimal case, and needle and that of as finally, moving group that are the and that engage help we of help seeing particularly TAM of success VTE account part programs the overall accounts the continuum. support the accounts supporting as the you in accounts the and VTE in coordinators developing power that up program at accounts in

all move work same account forward, do we we're seeing, got but to the continues base. across to what by more So the measure, like that still we've of think I lots

Bill Hoffman

remain bit are One unintended tool experience environment. of role. mechanism. work a the their as find Bill who preserve patient care might can to add that them challenging, but Clearly, in nurses I in operating clinical potential and for through VTE we remaining used shortages headwind about staffing the color one that add the might of VTE consequence coordinators is terms little coordinator tremendous actually pathway retention

William Plovanic

us in year-over-year there I then understand, Any if us tracking with question real just revenue down, help ASPs? percentage to Thanks. lastly, can just unit ask, growth color regarding And to growth, of the is ASP year-over-year could then up out just you help total ASPs. is Thanks. terms And that?

Mitch Hill

consistent Bill, pretty ClotTriever. our in the for ASPs we've FlowTriever, for of terms the been

say tools can let's for hospitals strategy the price past, look to on of company into a larger to products nice to whether the physicians those become part well. ClotTriever and large company they're of in to hospitals some customers independent that whether the really It's say, and of they're think the hospital approach they terms we're or FlowTriever the the or systems toolkit added be value. has at I value providing interventional toolkit to as And to has helped the in position in in, we've a the possible we've from let's based past. the to been the really of for additional heard the, get pick as best pricing terms actually from outcomes the a lot you've us the us that discussed that's And in maintaining the pricing patients. going

meaningful we're been to really and going see building we're any pressure there in we been with business the pleased the the U.S., on wouldn't as comfortable obviously that make the business been where any hasn't macroeconomic face there the in stuff certainly pricing with we've pricing are. were we to wanting something for that's sure changes So we side,

Drew Hykes

thing, add I Bill. more Yes, one want

really, So contracts procedures really hospitals pricing solid, proposition for still little rock has upward been so if economic ClotTriever just as forth. for minor the The expire anything and ticks FlowTriever is and good.

environment. think I reasons the that we've of operating one been to challenging that's perform able through So

but people QX we effort we major work on happy it's in QX, business. really required to QX, of the The recognize the the is hired the way as so we said to we a with lift. that core are performed we many in as hire as And on, tremendous and for though, not headwinds were guided and other amount want also we several thing that I flattish going just things say on

have through have headwinds, will that to guidance our the about entry large as feeling I we why the think pace always in the significant year, But QX. kept anticipate the does had think what group been adoption confident quite ability challenging we the pretty which uptick impact and is this it, was in for the I we're we of the overall, didn't sheet. execute imply quite where we

Operator

a We Piper. with Instructions] question [Operator from Maeder have Adam

Your open. line is

Adam Maeder

Bill for and taking I'll wanted operating the one to Thanks afternoon. transition. Maybe on start, on good Drew to my echo just and Hi, ask congrats questions environment. the the

had QX color a little a some throughout how July? seen in detail over for Thanks. out month-over-month you there, terms what able those And follow-up. play out, called given seeing looking of to bit the volumes Just you're far trended have of then thus guys a basis you or and and more I in then what are headwinds you share

Drew Hykes

Adam. Thanks think. I Yes,

began we present staffing I the the shortages, contrast two most think think primary for talk saw about to to from I many lift sure during contrast quarter, but see you've heard accounts, begin that's consistent quarter, QX, as shortage those other clearly I the to that I'm shortages we think Contrast maybe what as were headwinds shortages. the of manufacturers and we exited in well.

the one even heard us, consistent hopefully is I think behind I with from that GE. think So worst you've and that's what of and seen

the the staff ability interventional different procedures. at and a in academic it's pretty very On steady staffing see large shortages, little throughout consistently hospitals also over It we account everything see in time small to has hospitals, between. level, more geographically, it very that and sometimes the looks we that and the lab for been significant consistent it quarter. do see We centers, the cath

and in other a full to beds and our think inpatient we I carry have census accounts, number in just you'd the more prevalent ability expect. that volumes of they the it that see have staff

the nearly like our time, a level. there variability impact what over lot some across terms But again, base. comp looks some of consistent very impact entire as in having at is account of well So the as consistency

Adam Maeder

helpful. Thank down ask later datasets pike of the the follow-up, some about coming for year. the I'll that's maybe Okay, And that this you. are then

questions. I standpoint? I taking a can from FLASH the the like and it's do for late-breaker should think expect these those for at and think we When heard one impactful again FLAME from how CLOUT, slated and sounds be of you Thanks commercial more a data other TCT. updates datasets

Tom Tu

Adam, question here. your for Tom Thanks it's

of in data for the that three exactly by we are year. correct major you this releases end the So registries anticipate

better as arguably being late-breaker been first is patients accepted FLASH has the interest. embolism U.S. in complete registry now the The meeting. on cardiology conference U.S. the XXX as interventional a taking cohort I of that area imagine TCT pulmonary at important most that platform, of treated FLASH the can't the an

that. time XXX be out. we're the contemporary cohort well. this then CLOUT has is will mortality. year bunch, highest now this be anticipate interim short being can registry an largest coming complete So of conference. and with the presented that anticipate I patient, upcoming the We about The minute unsung at PE later perhaps excited hopefully rate ones year final reported on the very the the FLAME patients, registry hero We think And analysis of the datasets that any registry, high-risk this as of later an

quality. of this stage the frankly commercial As game, the of these far at as the impact to procedures, quantity is uptick

soon loose anticipate we've and that stroke. ground, adoption said convincing hearts I meetings and moving at hopefully, sentiment any warfare, at before, major is But time. times a had multiple our anytime needle the one that's attack will be these what year, states the points products, going we that with minds of remind in inflection heart everybody treatment I for trench every the and of presenting We disease interest really are excitement don't to has think terms about on approaching

Bill Hoffman

point, We, is TCT If the and registry going FLASH deal, really the I that's in this XX sure most unimaginable that's a important highlighted. patient excellent on just the we've - suggests world, no even this with PE, for device been stuff with just in big believe to good is is XXX is XXX we so this our arguably major was FlowTriever a underscore inflection it's play the volume I big center PE front pretty page that the out mainstream, a there deal. joke. think and high patients. new cool. centers want it ago, at that still our conference I generally, is that may for grind that. and a one in studied of becoming make signal is reputation, And fact thing, unimaginable no and course the pretty is to Inari, But execution That's months not interventional be that

Adam Maeder

Thanks for the color.

Bill Hoffman

Yes.

Operator

Thank you.

Mitch Hill

thought We're I'll able having for [indiscernible] problems not ask jump or with actually some a might go the announcements team in challenges I to light there. other phone know he time that things Bill with some some aside Travis the here. he's in and the some ahead since step product question to just this exciting Sorry, is and of of connect happening at had company? technical why wanted right that the to that the new of the having

Bill Hoffman

bearing I too. heard challenges at so hello thanks and some us. wish I'd him say Travis we've had we've Yes, here here. I you've new the system, think was for had to - with technical

very Somebody's that. hear to and see go, happy stat were children I to was very,

before a for here purely CEO personal, a Look, and with that X.X now few acquired. eight it's why Travis. company that, years leaving, almost been there So thanks things years, am I going is on here. I've was previous

all-consuming But every to people been time much haven't do of way it's team, find the had maybe love path. here really time of on that loved anything love intensity second a so I've it's and this mission with that that without else. found I'd time and to my is a no long a I And grime, it. this some but I

with wrapped way. and kids it's question never Why I has bikes and your answer my question, company shape. is my just family So new the it's in hoping up and in time bit of even time more exciting to is wrapped think spend books in in now? is The a the pipeline an been and full products. the that up, better

I we've going new sales of is shred now last have the it's us his heard great the that and his warriors, have tsunami with team I've members, team best pipeline, Drew. thing, his argument now that of rest two seen. already the was training this team and make set was pretty executed solving, couple could safety and communication, can than better - devices, growth processes than allowed our there's XXX complex the ago CEO new to of are problems I are shape. right, was not of years was pipeline terms not commitment the the of difference so managers is here All him anybody here across the And is the promoted COO good products this in he's drivers more and function year of or emphasized our of the we all problem between clot will markets and think us been a for a just to And by the and being he just display, lot have of, that skills, or on to robust largely in ever new just really with plus all processes there systems X,XXX Tom forth. to explode mindset growth a the Drew of in explosive pike the a Drew be a programs even solving describe of skill lot which mission. call And the sliver and is reason to and one problem coming all a spectacular to shortly. the end because installed have and the at on been data due even executive that the that's the that the necessary more for then We and begun people And efficacy I will product beginning. you Drew equally down in arguably of supporting has systems I ever seen doesn't is an exciting say beyond, public since facing that compelling install. XXXX, much is

So seems like good time. a it pretty

me you think balance course one the raised something say like or pretty is company. to were near hopefully it's are strong in raising is exciting enviable need we are we to was you apparent now a $X to something to of CEO that. at you Let sheet, maybe consistently or company, you probably else question really everyone you about you're we didn't said, do have all that of money four I $X.X And have thing, better an if and why pretty that something a last just money that waiting I in ago, too new and it fantastic this think money, breakeven, nice on and merger when and time asking, I really a we equals the or of that but question ask have want billion point, have billion you with exiting the shape the I company were true same than the spend is is ask is money, three, we had stupid months and don't the there for really operating envies the

role, a So, I'm and from greedy front what a do him to from impact to center seat had to board. seen the already think going that like the really excited equally is pleasure Drew's from my have is about be watching opportunity reasons I'd excited I own real front-row and he's and personal do to

about else asked, on Travis. Operator got Is this Sorry, that's we nothing you end, this you it. don't you. how it,

Operator

no questions queue. There other in the are

Bill Hoffman

All Thanks everyone. right.

Drew Hykes

so you Thank much.

Operator

This participating. conference. for Thank you concludes today's

disconnect. now may You

Inari Medical (NARI) 4 Aug 222022 Q2 Earnings call transcript