Earnings call transcript Q2 2023

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Operator

Good day ladies and gentlemen and welcome to Inari Medical Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator instructions].

And now I will turn the call over to John Hsu, Vice President of Investor Relations. Please go ahead.

John Hsu

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

the Drew me Hill, Chief and Act today's of statements Chief Litigation Private are on call Hykes, within forward-looking Executive include Officer. XXXX. call President of Reform This the Securities Joining Financial will meaning Officer; and Mitch

relate Inari's and in considered All including forward-looking for and statements demand not Inari's in COVID-XX trends statements made technology, and expectations which historical position of customers' regarding call this market; products matters on markets performance, Inari financial the statements, on Inari's and trends the products, operates, expenses and Inari's facts for expected do the that of to operations. should Inari's be in operations impact

involve that factors to or and review known and These recent the are results, from implied statements unknown by today. the information. Any Form December this additional filings expectations could or are statements. particularly achievements actual forward-looking for with and based uncertainties future SEC, results, year XXXX, differ performance for materially expressed or statements of XX, on described the provided performance any projections for Please neither promises in the call, as XX-K achievements during guarantees most cause risks forward-looking report performance, Inari's nor ended on annual Inari's including management's risk

by applicable on p.m. to review. is call of required and Inari release SEC website Pacific has latest second encouraged section these results Time which financial X:XX will undertakes update no Inari’s the filings, XXXX today. law. Inari's you today’s Inari’s Inari’s are on recording available Inari's results. press by website, website to also additional about except be as available statements, the details A quarter www.inarimedical.com, the includes Investors obligation for under

the highlights. to turn and quarter comments second over for Now XXXX call to business Drew his like I would

Drew Hykes

And for John. Thank joining thank today. you, everyone you, us

we execution commercial positive goals. record From We during quarter international the crisp driven income new Recording, products and progress continue from make Our our and revenue highly towards operating by with steady and was profitability meaningful income net productive. to successful business. perspective, generated neutral contributions second quarter. essentially a our

can our announced frontline growth to patients, enrolling is healthy, treatment sustainably Most health about third a and could randomized XXXX Underlying our and patients. a II, commitment I enthusiastic trial. up to study our controlled patients, for for We and big our more remains business an in not importantly, of growing people, PEERLESS as solving of years VTE therapies commitment the to problems market to many there interest grow is and be will believe we come. our our and unwavering. awareness

I'll new these in addressing with developments need share start is how more new patient a one about highlights products to but that unmet we'd story of a shortly, our population. large a patient details like

the In portfolio us worked choice addition, of to our a ones. choice procedure as build routine effectively the VTE breadth have to treat spectrum and hard we in ability of Inari showcases in only broad presentations. Indeed, that tools used patient first in cases the positions a the complex

first in anticoagulation. including in XXXX treated Connecticut deep conservative his therapy, was XX-year-old man A and suffered venous with thrombosis

his failed progressed continued causing have through recurrent as to Despite over stenting bouts XX ability. to occluded his progressive thrombolysis to veins he ensuing stents the his of post-thrombotic iliac multiple time. and he became syndrome Over years, DVT including of treatments, IBC,

for the revolutionary thrombectomy resulted release his condition thrombosis physicians of weeping with sent ASIAN would've first [ph] referring stent mostly chronic in This a device eventually ulcers to interventional mechanical and by patient developed in confined venous could is swelling have system, REVCORE therapy. Encouraged suffering continued limb the intervention, and our amputation. led was wheelchair. for to open

resounding Inari's the to toolkit thrombus. of successfully In DVT aspirate kept aspiration effectively the were the safe retriever Protrieve used patient The were XX chronic by The the preventing stent from multiple lost legs in healed of pounds procedure completely embolization were catheters and fluid his his flow while removed the used a a procedure minimal and thrombosis, blood saver REVCORE concert. success. procedure, month. liberated leg venous elements allowed loss. ensuing ulcers within was

I thrilled outcome, result the failed quote interventions The in physician every in summarized was light particularly on. patient The of from past. a the DVT are patient send referring miracle. from now with outcome. incredible the want intervention for The many the to Inari's

needs. and purpose-built drives patient fuels This Across profound forward. toolkit our our a clinical of team. power address person is to mission reflects XXXX unmet what This work outcome the our

Revenue Shifting XX% like performance. gears, I'd financial up $XXX summary was in QX of million, a our year-over-year. QX to provide

generated international year-over-year, of QX, in Our business XX% million revenue up $X.X sequentially. XXX% and

In to progress made bottom-line. our on performance, addition the quarter our we also top-line steady during

since narrowed loss operating the XXXX. Our time and recorded to positive million for just first we net income $X.X

to As to only invest business, journey but leverage. remain drive committed a not a in we team, our also management operating strategically

As Inari we has to profit grow continue potential. significant time, business we the believe over

pleased performed the are all five across we our drivers. in and making our of QX, business progress we with are steady We how growth by are encouraged

momentum and end market dynamics. Our are and we in highly continue underlying markets core large to underpenetrated, strong remain see VTE

to broadening potentially market remain and laser-focused for benefit remain while of the market new clear confident on the developing view trialing, extend leader Despite importantly, continue the VTE, to capability ability efforts. in market patients protect we our our we position address the to work also our opportunities. VTE entrants in to as those significant and Most additive some as ongoing other

drivers. With growth that, to our I turn will now

expanding U.S. Our is driver commercial first footprint. our growth

in add goal. year-end remain QX to meeting headcount our on-track continue and to We

gains are pace We the operating with starting for to a leverage productivity and recognize we pleased of are to measured territory development. more

increasing sales driver, penetration our growth market well accounts. expansion of of products and introduce on areas existing our organization us more also Continued new coverage, to positioning results execute in focused to of second the to

approach hospitals drive deeper programs a and establish and are to our target differentiated and penetration expert. by target VTE patients systematic identified, a comprehensive therapies. stroke Excellence repeatable programs ensures similar a of these goal highly of evaluated is screened, MI VTE The VTE and approach help consistently is to

We continue Excellence. with to VTE progress make

successfully the penetration earlier advanced where customers VTE continuum three of times Importantly, to phases. is in more program along are development, times we than moving phases Excellence TAM to four higher

for building believe the initiatives are IDN further market critical is several quite to standard is momentum the VTE down GPOs, us a VTE and Our encouraging. with traction which across top change increasing initiative care. develop We of and Excellence

in a also our We as the approach differentiator clear market. view

clinical on Over we continued quarter, growth advance the our communicate of our is quantity Our second position increase both continued evidence. we to driver In clinical by third adoption months, quality have the in our and regard. of recent study. to to furthering the results the leadership this data, building base FLAME of

high-risk XX% was reminder, reduction FlowTriever mortality PE historical this compared of patients when a study demonstrated controls. to used a As

We We taking line patients already a are notice is practice mechanical envision day beginning with data, change pleased intervention FlowTriever when see to physicians first is patterns. FLAME high-risk to therapy. of the which on

intermediate highly times powerful patients confidence we intervening in positive less physician patient risk five of sick patients, to larger. be is enough believe FLAME results that Importantly, for a population build extremely will on sick also the

passed directed Turning We PEERLESS to Last end risk enrollment remains XRCT quarter, Lytics lytic update that we halfway of our the on I believe strong. the PE. RCTs, to in PEERLESS therapy our use and comparing an mark. catheter intermediate will flow FlowTriever

flow patients, cohort to the as We've in gold patients We continue treatment. of DEFIANCE with alone. to also II some establish take ramp-up for and standard ClotTriever enroll treatment to comparing this is alone. enrollment risk designed PE RCT for to launched fully ClotTriever RCT anticoagulation anticoagulation with PEERLESS recently to progress to pleased the but DBT time DEFIANCE intermediate the will It date. randomizing we're retriever

than next enrollment enroll X,XXX will patients largest study. more the the easily to trial PE This double up of

X,XXX In combined. aims I quality our all and PEERLESS generate PEERLESS three non-industry RCT's to enroll simultaneous clinical Conducting RCT's to patients study fact, data. to II, over clinical are set patients patient-centric than high more we trial commitment Each industry and with meaningful PE reflects endpoints. other across

the the and leadership. Although reinforce succeed. will our the to are while care work standard of to designed we they believe studies each doing serve Inari's and not goal, VTE, these efforts We're hard change of also

our Our driver portfolio. expand is fourth to product growth

exciting We have here updates several to share with starting as REVCORE. well

this patient's As product addressing important need story, unmet of for a new the heard is patients. you an pool of large

the mechanical chronic venous feedback We're the CBD our REVCORE of this population, thrilled to first to the enthusiastic which patient thrombectomy our largest Patients within and success is commitment disease is of with markets. needs of condition broader thrombosis. for addressing latest the the venous is a patient stent initial clinical represent population. unmet with REVCORE new the example device subset treat

is pilots. The several REVCORE launch supported by

development our designed have strategy. market underway inform We to CBD longer-term

terms for the REVCORE. opportunity of In market

prevalence with a to In a addition large thrombosis. pool also significant of incidence, annual venous patients stent there's

together, tandem believe Taken used of garnering approximately $XX,XXX. ClotTriever nearly the and with is in REVCORE procedural market we Inari a XX,XXX addressable revenue other tools, patients. totals

improved conjunction targeted release an DBT French enhancement trackability a for existing generates also aspiration. flow and cases. allows clout in Curve. is market XX pres recently to full sized and significantly that curve than a curve We product continuous rate entered TXX greater PE in the catheters with our similar both removal shaped aspiration This featuring TXX platform with

perform in release. market well to Next, FlowTriever full continues

trap to during FlowTriever complex incremental of at pricing. creating ASP these As stream or with into extending sold outside an a way embolization. cases, is IVC was It a the reminder, and clot revenue much product used designed thrombectomy up per-procedure elements our other of DBT conjunction In clot generally toolkit. clot procedures. the is of represents in our $X,XXX all higher achieved risk FlowTriever IVC there's a

ASP is revenue. generate system below in small and AV thrombosis indication of designed momentum and knee. extremities a to a treatment for AV an significant of Entry is Entry the build $X,XXX. has A thrombectomy including the recent specific expansion market well helped veins to full fistulas opportunity AV also release. vessels, at fistula offers the additional in progressing upper and It graft also include

release products about we Finally, family and into limited we initiated share more market we'll in unmet FMR. in QX. ClotTriever Both the needs move that have have as address two each

unmet robust six half is needs tools. addressing second we launched XXXX, expect a and fully together, in with commitment products the have new of purpose-built our to Taken to testament to pipeline which

driver another the outside is Our U.S. growth marked revenue and expansion quarter international markets. case into of last record production of QX

year-on-year Our $X.X XXX% up generated in XX% sequentially. QX, of million business international nearly revenue and

by was performance Europe. driven primarily Our continued in adoption

Beyond saw existing in the markets Canada, Asia quarter in our Europe Pacific. solid growth Latin and case America, we during also

QX. in go-to-market We and In regulatory our pursuit in progress first continued approvals strategies. China conducted making refining cases also Brazil we're our our of also during Japan, while

operations. international We make continue our outsize to to investments out build

need could unmet spectacular internationally, XX% of time. over total we the business expect greater Given revenue this than represent

And performance it now Mitch I'll to financial turn in greater over QX discuss our to detail.

Mitch Hill

to of million everyone. due new the and second sales Inari's customers. the $XX.X Thank XXXX you, $XXX million Drew, prior of period deepen to accounts, was of our year. with the and our relationships growth quarter were $XX.X Compared QX million afternoon up continued or force, for efforts existing XXXX, for our XX% good to from revenues revenue expand open our customer same

TXX and We between from ClotTriever similar XX% the FlowTriever FlowTriever product systems revenue and XX% in to to REVCORE derived XX% and systems XXXX. split of continuing and while sale sale with was other revenue the lines of also product XX% intra ClotTriever both Curve. XXXX from expanded in our significantly compared of products the to by the lines ClotTriever and launching commercialize year-over-year compared The

in XXXX headcount. prior in million P&L expenses the to the an expenses of Operating of of of for with million margin quarter gross increase XXXX in was increase the quarter compared XXXX. period R&D with compared of expense second of $XX.X second the second million were of primarily Turning for $X.X in R&D XX.X% XX.X% The with the XXXX the $XXX.X compared $XX.X $XX.X in same million period quarter million XXXX. year. by same second in the the quarter driven

and per share the $X.X the million of and diluted headcount quarter second the was The year. on year. million prior fully due second $XX.X for the and prior the to of respectively. $X.XX in higher related secondarily quarter quarter XXXX The the and $XX.X same million million compared we to and as of fully diluted $X.XX the million with same period personnel expenses Net million income the period million compared $XX.X based weighted second to for XXXX was count $XX.X loss basic $XX.X average income of share net was basic primarily of of travel was expense our SG&A for increased expenses. XXXX due increase net for of $XX.X

$X.XX diluted fully These share compare $XX.X the prior a million of year. net and based of share period loss a for with and on the per of count weighted basic basic diluted average fully same

move balance comment P&L the I Before to on I'd sheet to like performance. on updates, QX our briefly

our our with reflects pleased growth net commercial, positive income. are innovation essentially funding neutral income We spending drivers. operating commitment to our This and still team's while and controls, discipline clinical result

second of the half and fluctuations XXXX, see For we early XXXX in profitability quarter-to-quarter. may

As we sustained half through forward the going basis. of operating move committed a remain achieving profitability we first on XXXX, to

the Moving sheet. to balance on

of of $XXX.X cash million and $XXX.X Our the of end at $XX.X million consisting of investments QX investments. short-term totaled cash million

as the and cash QX investments $XXX.X our of XXXX end of reference, million. of For were

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

to financial Inari's guidance. I'd Lastly, address like

year revenue $XXX are to $X raise million, the like to $XXX we range. relative increasing to that, million prior a guidance I'd full announce XXXX, For to million our our

Now I'd back Drew final the to to for call remarks. like turn

Drew Hykes

how performed QX. Thanks, revenue business in growth across Mitch. the by driven of crisp pleased and our nearly XX%, execution are record growth generated strong all In drivers. we closing, with We

strong International development built quarter Our therapies, our patients our launches. new another continued meaningful RCT we announced to business. from while with program. frontline and momentum support toward of working field product the to team treatment VTE And our saw We drive across and record growth third

leverage operating profitability, areas. in income meaningful key continuing operating we while approach delivered invest and to Finally,

business year, Looking the ahead I see our ability to and several come. our we to and more coming together not be sustainably the half exciting about confident of second health many catalysts grow years could the for to of

turn With back moderator the call questions. the to that, I'll for

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

Operator

Instructions]. [Operator you. Thank

Our of from of comes first Steed question Travis America. Please Bank go ahead.

Travis Steed

on could market, much played give how out environment and core beat new quarter versus good curious saw you of the over on congrats the a the great more and played up? the parts as expectations business in we the of of a out kind what Hi, versus quarter. drove how quarter, and Maybe the growth the color up here competitive the what core the the shaped shaped products everybody, how afternoon, little QX course of start, over quarter, kind just QX business expectation, of course in market the

Drew Hykes

may Sure. Thanks that that, for started pile want get well. Travis. I on to as can and Mitch and Tom on

really did XX% well. were different we performed throughout growth the we as quarter in the look, So, we just the We strength I did how QX with the of But as quarter. think areas. in trialing, anticipated, as in lots competitive business reflects pleased see

overall of of and mix U.S. revenue in and modest the and a enthusiasm good excitement products, pleased FlowTriever foremost, lots franchise in We here strength around really and quarter from the relatively but excitement new with contribution new the Still enthusiasm. the products. First core of, the ClotTriever the were in

stocking and as some revenue quarter each international as had saw a the strong record do quarter very quarter We also U.S. well. outside we

think all I contributed the quarter. of So, elements to those

organization give continued they think our more field how lot us year in the with second with ahead expansion of confidence growth a underway our to looking of half in development. of drivers each terms of of program we're I positioned, the work

in be and the going half. expand the continue we're more in ultimately new a steady Certainly, new cadence leverage products and data to six second with to products that able of to mix

like second we're looking half. confident performed ahead we're how in half how positioned and the the business the first the of to we really here So, in year

Travis Steed

sequentially? maybe July think how question year-over-year on you pricing, And on helpful. would Any color want can QX. you to QX you raise QX, versus when color QX just the how other the Any look provide be more about That’s modeling. stocking, of in follow-up on basically much going and

Drew Hykes

Travis. Thanks,

the pointing throughout think saw second year into here the quarter, has pricing the the So, that stable throughout we of quarter. momentum and good half ahead I continued

the You was in range. gross can reflected the in see stable which XX% margin, that

lots terms we cadence Mitch the of anything here. from here don't think positives beyond of to wants add if I the I of second know in the year. half as So, begin that

Mitch Hill

for Travis, in of few QX think see QX, I with our pickup the the question, kind summer I acceleration past that. the more the which QX some the That's through way productivity a years, year. accelerate the business and think of and probably the year. that portion to variety least move the in kind we we'd pattern respect just modest your for of and reasons of has there's and a of been the then pickups of quarter fourth do expect of I to we will season Not with the as think

Operator

next Morgan comes with Titchmarsh go Please The Kallum from ahead. Stanley. question

Kallum Titchmarsh

lot of on you are additional whether focus largely or particular, competition the the in a interested Obviously, anticipating enter near-term. here market name players one in to products any but I'm

for be on think the ground, it's on keen And a hearing given in. Boston's you're thoughts market space be But anything launch. might get here. wool I horizon to your system pretty the a on to outlook strong the

Drew Hykes

a that and market penetrated X% this exists So, unmet market. maybe need technologies, look, I with shown, a in think what this is huge our $X is we've billion

competitive we are for acknowledged entrants. time, all and are any with like have there some this new head-to-head really We entrants likely market. We positioned that to going to be how

the We down market. hands have team got the in best

Our with loss. chronic the amazing acute not clot, well blood job clot products only but an removing minimal the do of as

products needs. coming evidence a pipeline got lead and to clinical cadence a got generation, address evidence and new of we've a have unmet commanding new and mountain of We and steady

come new against we're the into So, how market. we entrant any like that may positioned

be effort, development entrants the changing impact, is market by in is value here the towards additive the the opportunity standard these terms constructive number the to And of where I of which a the real new in same care to token, and think is helping really can patients. approach real and new patients vast of

that's to can new helpful the be to those think along going So, for be extent lines, I entrants constructive everybody.

Operator

with question next ahead. The Biegelsen comes Please Fargo. Wells from Larry go

Larry Biegelsen

question. year. are six of of for in nonper-procedure half how about think those market you've from new in us and how the remind revenue we this in second in And per-procedure talked products the Thanks of just should products afternoon. XXXX? the six release having about contribution taking Good Could products those outside you my full many QX Drew, bundle?

Drew Hykes

and I'm Drew do on Yes, want pile happy that as to Tom here may to well.

think is, we six. get products you have. the and confused But problem by a when it I have. know, nice how me new good it's walk a That's many through sign you to let

our the talked ProTrieve about product and sheath priced outside designed So, first PPP trap of two a IBC InThrill. that's complex revenue stream. and procedures. price ProTrieve incremental is before at emboli That to we've during represents an $X,XXX is

completely Likewise, their patients access. population, completely thrombosis InThrill, revenue system Completely treat in new hemodialysis with brand-new to patient designed to and a priced different AVF, related new stream. Also particular $X,XXX. graft for small AVF patient vessel fistulas, population thrombosis, at pricing, and

are those two. the first So

also, the priced in it's would in And generates is quite PPP Curve full used TXX we in basis enhancement retriever prepared XX during began market speaking, Generally two, launching and with be full And the with instance. procedure QX. to platform, used other $XX,XXX heard bundle. within that's in just now talk about that on REVCORE, existing just you've release when a French about next market the for conjunction, The us out release conjunction then particularly that products. a in is an and our remarks release. market bit revenue, full ProTrieve

release the anticipate sixth, two moving family, are just release and next are we ClotTriever market limited ClotTriever fifth products, within through into The XL. transitioning now their market soon. Those full and the both

to to with go ClotTriever ease You final do. along a can sixth product. Bold platform enhancements our of that that along, use probably infer and some designed new what the that is is then enhancement with product And

they where So and process. a are and in revenue and of six overview the pricing are the launch those quick

Larry Biegelsen

you like just you many could sounds inside if Just done you're what the be an and you. $XX,XXX helpful. gotten we've you how about excited positive. Any a And maybe or follow-up you it. know The like? PPP? tell have on how look is cases but I feedback couldn't do the big Drew Thank is outside REVCORE, that it opportunity is? this of TAM, would gave ramp think color do think us I the of

Drew Hykes

tackle I'll this Thanks for the question, Larry. one.

So, other PPP some that REVCORE typical both Protrieve, for referred referred to well as REVCORE the like, the was ancillary in in aspiration of the case. Drew specifically NRE be patient a device products reference price used to might of is also as the products, that the $XX,XXX, case to but most

Protrieve for derived So the that's a typical revenue case.

be opportunity stents any underserved excited this placed, patients, those when to prevalence really hope really acclude. And Venous caught suffering. the for patients. of can't is these for stents are treat I REVCORE. more no incidence group of commonly now venous that effective stents of have annual pool this who to the about prior patients stenosis. up, been as offers is Remember, well there therapy, as And a there long a

given up therapy. tell for kind Patients this, is we of no I effective other there are to but technology. So, market, this I have metrics can lining of getting you around the because the some size access think

Larry Biegelsen

much so guys. Thanks, right. All

Operator

Plovanic comes Please with question Canaccord. The next ahead. go from Bill

William Plovanic

Great. taking questions. Thanks. thanks evening, Good for my and

just it's off, circle on the back First competitive.

is [Indiscernible] color the working or cases through they thousand of trialed, that you saying thoughts this or they terms keeping some the what going it As And they queue have out you sticking? that is seeing trialing. doctors in, are that, I the process see they the is there are are or accounts to may there, with competitively kind on coming competitor? of look are back any in you? just you could of Are comments we received some Are in what's at mean, of have that

out in commentary the And are the through? thinking washed that competitively. year? you back seeing plays just when, about market are related kind wondering through fully of you the if any How to see would what likely of we you half that have I'm Thanks.

Drew Hykes

Thanks, Bill.

our I phase our experience, a most months. So, in think look, opinion, the in six the is competitive in impactful launch of first

lift think when best think your I targets, go there. gets I difficult to more that's and from you the

certainly trial We we I And saw throughout trialing period yet, first of XX% saw a the QX. We time. QX. the if throughout look in think of same grew everyone understands you months at that. year, that six

really So, we ability to of the this procedures. our to that to in continue minimal our ability safe, products, compete and about loss lead remove clot feel stems confidence performance first confident and market. from And the efficient I think foremost all our and blood with

comes our our pipeline. from team, our think I data, our confidence

of all compete raises, lot think in year. we performance and reflected think gives the are going of six and a to consecutive months, the two last is half I in to to we I that's to our continue think lead us guiding be for it able confidence beaten over now I that and XX% in of that reflected second are year. the the And growth the how

William Plovanic

follow-up And with if I could Excellent. then Tom. just

you your of the pretty differentiated in think say comments. this some data least. plain addressed But the was to I prepared

risk my high risk you're the Thanks drive you really it? the need doctors you mean, of beyond will and to seeing take risk, intermediate intermediate drive I this think adoption questions. do curious, you at notice Just that that taking time this. specific PEERLESS for or an or said this data that Do

Tom Tu

you incredibly have very as stated, a think, XX% disease in data this mortality historical state is flame I the to compared compelling, controls. reduction dire So,

question, risk And being to the to I first that's is discussion FlowTriever think currently who so, had for guidelines? it time this academic for think that's level. about that I PE? line be an begs a Is therapy think, the it folks high change at time amongst And

of are the far that sickest if it expect even efficacy? available. stand that a is and of a in doesn't that practicality population great can definitive of is sick, the risk to bolsters therapies reason most these randomized practice the As similar kinds before lot see patient you And results and seeing think safety concerned, the apply patients, challenging data we these also lower results the in I you as much patterns argument already

we was prepared remember, high-level committed to the comments. as in are discussed that Now randomized data generating

hard are shift work, you're So, available. patterns the we data doing even before but to practice going that is see

William Plovanic

Thank you. Great.

Operator

The ahead. Please next comes with from go Thibault question Marie BTIG.

Marie Thibault

you, for a quarter. in wanted to the my market taking market my you that quarter And what doing here good about particularly thank quarters. penetration been I turning more question. think on congrats ask and recent Hi, first has this on

I growth, you to about to in penetration goes? to having a accelerate? a the market, ago talked therapies think about Have it interventional of steady latest about year XX% on love BTE issue seen and XX%. expansion. Is we hear that start I'd

Drew Hykes

range, So, highest I growth. think on with single-digit the in population the level, population the patient generally along itself continues to grow

two kind both and TAMs mechanical. we're any penetration rate of likely interventional is and the think that still XX% treatment, We where If looked of lytic at the at today. you range

lytic patients conservative with are some see would of mechanical frontline medical is segment, treated continuing to a continuing growth. mechanical interventional think also from that therapy. obviously driving I We're that convert been to as frontline thrombectomy based we Within thrombectomy. interventions management away that to our over And to have therapy shift with

So, continue those be same that direction. to such still population numbers to the But move out to play. mind all continued massive our so and right there's work runway are traction, keep so is still and patient at in much a ahead despite done much I those this growth in drivers think growth

Marie Thibault

very That’s Okay. helpful.

last and and an here, development there that and investor was from year, some If some my to you're I education follow-up CBD pioneering be venous you're there. there. heard done work day As area the mention of the disease, doing I recall that chronic was development market,

there? the are on the What's So, ground what's latest, happening Thank you actually what you. doing?

Drew Hykes

that. context around some to Happy put more

is these When largest unmet CBD us. target new you a $XX this for addressable pool, patients And needs. markets. have So, account of market target addressable spectacular the into our billion take million-patient is prevalence the

to work are help come more through patients for toolkit these patients. some to patients. designed to DBT We to PE begun don't development examples that, REVCORE in come. Bold longer-term two strategy our parallel that necessarily there's the of these out are market and patients. of a inform toolkit, the These and purpose-built In Inari our are building and door we've also that ClotTriever

give what of work examples So, that a like. looks you couple

early providers podiatry, for really care volume in of are target identify is in high patients third-party various understand One even community. the try on And where that invest patients, in general caring sources practitioners. or these to to data we've wound are done out some try it centers, the and things here and better be regions, these

thing small into of some done on focus A hire engaging team whose those sole development we've specialists. group across with providers of country, target high-volume Second is deployed the is geographies treatment and these market a and can help for we really with occlusions stents. awareness raise venous and with those chronic beginning new educate that patients REVCORE, in instance, to folks new on for options some their ways

target interventionalists able, with designated their that help patient provide once treatment. way and we venous operators develop list we've interested Last in who willing, of chronic these themselves done of as and thing geographies patients we to interventional is consult have in a ready, hopefully to that list interventionalists identify a will for can those the potential, that these make so patients, trying

kind applying in that work the longer-term learning we've new to The help us of inform same iterating, begin early and we So, VTE this massive the we're it's the think done market a some and I of group competencies opportunity and we're refining on to we're going and way unlock see now really of to population. patient same those help along patients. to strategy the lot,

Marie Thibault

so you much. Okay, thank

Operator

from Maeder comes ahead. with Please go Adam Piper The next question Sandler.

Adam Maeder

this afternoon by start to good you question on I about thank the international wanted for Hi, business. congrats quarter. taking asking the

of here said I greater you the be think then $X revenue. QX. revenue in international in full forward? to at you're something guys about lines think thinking along and it Drew, step year? And I in did are change how million color to QX that this reasonable continues assume you going up international on the Is Any or that XX% about could X% in remarks, the total over time, you prepared

So, get bridge and maybe can Thank years quickly how that the gap over there? just help you you. us

Drew Hykes

can growth may the year-on-year seeing, We've really chime nice and Still nice in I Europe, beginning see really had Mitch really we to We're some certainly and but more relatively as so built spectacular now, particularly Adam. Uh, and business, are nice growth little growth. a and we're a a well. traction quarter continuing foundation to to in small thanks, record part context growth. Yes, the and put see of want sequential internationally. momentum.

the back through Certainly, will We we're growth continued I meaningful by this of from from see but half to be contributions that think anticipate beginning year. some led continue Europe, some international an of to and Canada, We're different Australia, in of be in initial We markets treating it established now footprint, running up we've the New Zealand. or where other began patients America. Latin parts Brazil. just also

of growth markets to, think also meaningful on these that have well. will some trajectory collectively as begin I other a impact

think prepared That's to the kind going internationally. we there continue of think why we the direction continue remarks. longer-term over are the the we that in need, kind revenue we to contribution like and is go that That's to certainly, headed we after time. unmet there. of exists we are opportunity to of we described plenty And point So,

Mitch Hill

are, approval activities opportunities. market. for very the that both China mentioned, timing let's our range in the build or market say, the just X% up essentially well answer, the is, the to the X% on or it's continued on opening XX% to just the and Adam, I and obviously, Drew's significant on, regulatory range commercial Japan the jump And as Those think as specific continuing know, market based progress of markets you on from, you as of

about We are those. excited

will and and get of regulatory ultimately level will get closer we how revenue think to of I we approval, a mentioned. achieve As outlook specific kind have on that internationally build sort to of that revenue that Drew percent more of, we

Adam Maeder

on you. guys. follow-up, Any That's the in And sure prepared anything there? just redesign heard the Thank -- update just a an ask remarks. Not the I and Are update wanted if targeting some approval? Thank great still there. of status color, on XXXX for on you. you work quickly to the

Drew Hykes

interest this commentary -- intent in the patient population. And no of Thanks lack the any in of lack our, means very was of mention for any convey prepared by Adam. to, compelling the question,

great to with a remains treat we As we with challenge limb solution. a and have arterial said have huge we needs before, therapies unmet acute, believe current ischemia differentiated

And incredible improve committed committed is it. better And ease have and elegance, XXXX and We refining to date, them seen the when product this disease Our to state use. timeframe. this ready, efficacy efficiency, approved to, we've to of work. products, in safety and, release will we good it we we make but remain can

Operator

comes go ahead. with from The Michael Sarcone next Jefferies. question Please

Mike Sarcone

afternoon, Good and Thanks. taking questions. my for thanks

still care separate CBD follow-up strategy about possibly chronic think the on you are there. tap Just centers mentioned chronic fleshing to opportunity? out the podiatrists. market. really this will wound salesforce disease had a and you a venous Do Marie Understanding, you the But require Bill question

Drew Hykes

for thanks Yes, that, Michael.

a work question is heard me question, with you that are think that I some to answer pilot seeking we of So, the describe.

engaging of with small group understand, We begin specialists get that's aware of patients how us interventionalist potentially front can development and really to for market have with are we our can treatment beginning an tools established providers them those of the of and in these group that help help patients. an help and interventional where to to

than in or of These of we being a kind at see care kind different the answer. different What present for of cared are are have we disease already. patients know, the exactly care traditional through with that's these for So, in the pathway. ER do hospital them in a vast community but point, to with patients question venous pathway patients what they the chronic are that we a majority suffering sure, seeking VTE the this

and strategy trying we're that that we to inform learn will what the that's go-to-market more, broader for So, understand patients. those as adopt we'll

Mike Sarcone

my has the And that ClotTriever about BOLD the BOLD just talked where get maybe that Do hoping then to expectations? stands Okay, uptake that update a And accelerate your Was would you on for it you thanks. to today? think how platform. just Is been. tracking follow-up product an to platform. from is utilization on new enhancement

Drew Hykes

Yes.

one ClotTriever seeing cases. majority ClotTriever number month quarter, everybody stronger And of the achieved and platform. coring the in a in after It's It's over it's BOLD to Designed of used has position. an cases. and the after that essentially level element. our even we're use force Really just majority of was So, trend of chronic do that radial the used to features to set enhancement over removing our already the better time quarter ClotTriever. an BOLD, job wall supplanting clots. around adherent the time month on

enhancement new and you BOLD really reflects the platform, the continued of that ease-of-use The efficiency is and iteration heard improvement platform. on discuss ClotTriever an me improvement refinement

Beyond to full that, existing it's for that when into use ease additional that now describe think product. say commentary with BOLD to release We'll ClotTriever at we'll more efficiency it improve I suffice point, of designed the leave market for move enhancement. of the we but and it

Mike Sarcone

you. thank Great

Operator

The Truist. next question comes from Please Richard Newitter ahead. with go

Richard Newitter

thanks for product directionally could I wondering on you if new Hi, contribution. a was question. the taking steer us

that on stocking back meaningfully look, out new or million. sales? versus And U.S. on sequentially? of question flat look then you of up the meaningfully? Would as five run stepped a In dollar launching since stocking. products basis XQ you up modeling half, think six XQ? or have say same revenue million a revenue we so quarterly that And that stepping we as there. percentage rate a we mid-single-digit think into four Was As amount, we're I up

Drew Hykes

that try me one, Let Richard.

in mentioned comment growth we as and when QX on from tell that's revenue business won't Q&A, as terms the or from another new is tree clot that saw the classified still went the category core the company. mentioned growth of from international to the earlier we also can you nice in essentially number for products in in And the new business how the QX. products. the contribution the from relatively So, captured we've you specifically Drew of And the modest. I

of As dependent probably continuing out on X,XXX to sort QX. sort the we're active accounts. of products our at accounts over of success hospital about to and roll contribution in And base across QX that's that thinking present. our largely It's

and there everything available. the approval with lot a process in And familiar nice you're that Certainly, order on of make goes we're VAC those excitement think there's products progress. kind to I up comment about the decline But heard, we'll of seeing we'll from both and end where on to the you products year. specifically new Tom. of Drew the end kind we of at will expect as we

increase some won't did view. of I our an comment and in in stocking revenue on of not. revenue see stocking a in it's revenue increase an what a, QX. specifically is. We control see in point that's From of Some stocking it

the of business. in see revenue think in fluctuations that the stocking And of about to we've new that's again, And as product quarter introductions. I cadence based kind quarter the on kind talked we typical past, for the of

settling of we to the about low think business, digits long-term for it high thought I as single stocking in we see the the company. for over kind revenue the

company the So, the that's continues as where expectation mature. continues, an be this kind of will for to

Richard Newitter

Okay, PE? is into DVT where trialing thank is or I'm quarters transient to less curious pronounced than you. or more And pronounced two your stickier and kind proving been trialing or, then of And be other. competitor, just on the one between the comments now, the if

Drew Hykes

QX short swirl think unfold the across and and I trialing in Yeah, we've seen, the XX% and QX, that Again, it we despite Richard, we consistent answer the balanced saw relatively in of the PE saw we some noise it and in six-month claims. competitive period. grew is in DVT in unfold

So, in PE, we'd consistently sure we've seen versus balanced. DVT relatively we've differently. any I'm seen it and what not relatively characterize,

Richard Newitter

you. Okay, thank

Drew Hykes

Thank you.

Operator

with David Please from Baird. ahead. go comes Rescott question next The

David Rescott

just comment want questions. for the stocking revenue. taking Hey thanks guys, Congrats, did the I that on to on a made quarter, you just clarify and

the question then first I think just up, you was sequentially. up to more And guide. was actually, want to clarify said it year-over-year my that relating up if just

the a think, versus quarter again, amount. up was in you the higher full-year somewhat beat It's the estimates. small bumped outlook census dollar I what than

if there's related or maybe the a underlying on VTE so, the that think side? full-year versus it's be not new or but least anything in incremental million or you've up to confidence in international have just I'm you $X that new seen, outlook I at to delta business wondering bump going product the is whether more

Drew Hykes

the maybe about guidance-related and Mitch I Yes, so can maybe let stocking talk then I'll clarify comment the question.

Mitch Hill

And earnings the been talked sort for back to we a about stocking the existence company. on we lowest is I question, as David, the think our it's announcement, being in QX the that Sure. it ever when of go company. public stalking

So, relative to QX. of QX related sort my to comment was

Drew Hykes

And on then David guidance raise. the

two quarters. raised consecutive We have beat now and

was $X $X beat, quarter This a million raise. million

enter feel. here the we of we the confident at confidence like business the continue think We seeing the feel ability compete half the as parts We core are our how around enthusiasm very related different with front the us to I the to half the All is and the DVT lead positioning franchise. you're products. of excitement in to year. of the, new back and

We're seeing internationally. traction good

at XX% the of all beginning the considerations puts year those and midpoint. raise started the XX% are with That think of us at guidance. in the guidance growth I year-on-year reflected at We growth. the

here how seeing of our you're in So, the positioned hopefully, we're half back clearly confidence the year. to relative

David Rescott

first they've of year, compared too. All pretty those, I half and this gross year last you been QX, guess to strong helpful. margins, on QX, great know that’s

business you a in gross is maybe the mentioned My seen of you as be business. portion pricing out, dilutive the margin have standpoint. that that is from could that those margin stable think a new products guess a roll theoretically, I international bigger

basis consider I'm are profile? stable you Thank so, that sequential a on comments business, strong margin on this a of in pricing when that you. least maintain to are from with the offsets And allowing gross at wondering just the and year-over-year coming some basis you maybe where pretty the

Drew Hykes

one, And I David. on guess started will I that Yes. get

point the a performance are So, company. of view, with pleased from very we margin gross

mentioned product on a or comments. that. And Drew we have have we as based offering really our been for his We sort based pricing price as that The pricing like historically of on through PPP this stable anything to added as to during products. price to value cost focus our cost company opposed approach has

approach offering to has kits price. have kind price been in the And the toolkit very us PPP larger tool terms taking become by that maintaining time, some we these in cases able of of and are over and effective to

say, couple that of a gross you will the would margin factors I time. over Additionally, change the mentioned

internationalization the the something of and I few over next Let's will course play kind years. out that's business, that, think the say, of of

really and operations, fortunate raw been have we though materials productivity manufacturing there. costs also of gains our offsets nice have are even headwinds, to we some We labor faced some costs, some both in in terms seeing nice

comfortable the and self-fund ability for with growth. talked a And the settle gross more gives feeling kind a as idea us of as to our terrific I low opposed longer-term that that obviously of kind gross we And margin we in of we company, the in about sort could that I think to more historically think own the mid-XXs something margin profile are of in mid-XXs, low-XXs. of to sort for messaged it terms company. that's something the And the

well flow And have for past positions during cash us have And that compared into there. we is, the been the of think going free three puts have the this we post-IPO call. were class where a growth internally med look company, signal journey which the on. that position discussed of of have profitability techs at we investment a to which all quarters, think positive we essentially opportunities really sort for I really the cash some been of of along think one we these with maybe nice business us post-follow-on, I further of also funded in and to the I we out the When

Operator

question Nephron Please Research. Pasquale go Chris with The ahead. comes from next

Chris Pasquale

the taking from stuff moment, force you new the you curious prevent new Thanks the guys I'm the sales the the products distracting with the how are excitement all at incentivizing are for around about the questions. to portfolio core? juggling from

Drew Hykes

time thinking Thanks, And patient new the populations the of do core Chris. question. we want a spend ourselves. work in is them the good team of or The thing any we from last to new, the distract, It's underway products a about distract franchise. one with Yes. lot VTE

got designed really the our we strategy, our right been and deliberate entire about compensation really ensure the about how we have across execution right that to So, go-to-market have we program the portfolio. focus deliberate have

think very territories. to other done deliberately, you field thing the as continue we I have split is organization to and the know

new smaller with excellence, that, under take which these number associated is some bandwidth of result The to smaller on territories. only smaller have Smaller course, than and rep but bandwidth the penetration work and of of launches. also to product not provides accounts, of drive VT

like to on far, basis all trends we're to adjust So, we're so we the strategy be eye those what we'll all a We close about considerations seeing but deliberate if that. and our and keeping see trying emerge. beginning we're go-forward on those thoughtful

Chris Pasquale

Japan, then China, from for a entry to to any you regulatory should going about And where and timing how think the Thanks. do think get of some do perspective? to trials we big have be just you're Asian local markets, you'd like clinical into to

Drew Hykes

to diligently it. China We'll respective that for Yes. We've in time in markets. direction assured ourselves Today treat short probably been help working stop put been position definitive rest working for of now. close two we've on timeline some years to to in in two both a putting and patients Japan those a

updates some provide. I we'll to definitive this even have later think more maybe year

terms In to we're whether studies. clinical of not or going need

starting and the leverage, a Japan. got, data of that and across I can here of in clinical U.S. still that's China mountain both think an open with course clout. flash question We've we thankfully generate

leveraging do, we've scope in data certainly hopefully, we're the more be clinical know, uh, either of if already Flash it we you in So, given, and in made modest high-quality those we cloud. to And will the do data work markets, do that market-specific have. investment need in

Operator

you our conference was today's for attending concludes presentation. that Thank And last call. our This question.

You may now disconnect.

Inari Medical (NARI) 2 Aug 232023 Q2 Earnings call transcript