NARI - Earnings call transcript Q2 2024

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Operator

Good afternoon, everyone, and welcome to the Inari Medical, Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions].

As a reminder, this call is being recorded and will be available on the company's website for replay shortly. I would now like to turn the floor over to Marissa Bych. Ma'am, please go ahead.

Unknown Executive

operator. you, Thank conference financial Inari's discuss second our Welcome call XXXX performance. quarter to to

expectations accompanying and on Drew and Officer. This Joining benefits Chief uncertainties, on call inherent Act performance the of today's could any SEC me statements with are which Litigation expected Securities and Inari's for refer GAAP risk statements the referred of this for by this results Reform in from factors. Please and estimated update to to do our latest except both operating Hill, releases implied loss or LimFlow. that XXXX. the reconciliation to based in to at QX required forward-looking today's performance available the a as Private the filings of non-GAAP release. will outcomes subject considered additional are our risks or refer anarimedical.com. call results. our Inari expressed based and the for as statements including provided Executive of be and forward-looking to today. we by in Hykes, assumptions, performance, Mitch our press call to Please full Drew. and statements, potential are XXXX that, on obligation today. And release forward-looking Time of call Inari's operating over not Inari's with The these materially law. On and Chief revenue, no results, year website non-GAAP statements includes A on made call to the Financial call profitability by Statements XXXX due of particularly I'll the available review are this of this within on historical strategic statements several information. assumptions turn on matters financial today's current differ are meaning p.m. or announcing measure call, undertakes statements, call call, predict. that press related to and recent relate measures website Form Officer; achievements described X to forecasts Pacific and most will expectations, President on difficult discussed applicable today's These are recording forward-looking fact future slides be to should XX-K Actual Any projections factors during including management expectations

Andrew Hykes

In adoption Marissa, year-over-year million $XXX.X driving and and therapies, today. of you the all revenue continued our record you, Thank growth. XX% quarter, of for strong thank we joining call our second achieving

today, XXXX, Kevin addition strong to to QX the as Inari before our $X recorded performance, and for our shortly a Inari Today, the CFO larger. of quarterly of QX Hill, Strange our appointment revenue earlier In retirement this In want and is our products. I of ClotTriever results. Mitch commercialize to turning speak successor. we approximately we Mitch quarterly moment about million XXx his also revenue. joined started announcement announced had to Inari's FlowTriever in after that quarter, of

our a unwavering. become also his his luck as Kevin to May scale retirement. technology a spanning operating and trusted the solid He time, foundation note, successor. On contributions build this career successful colleague During financial, in Mitch after personal a for mission to patience develop close Strange IPO helped helped best We many importantly, Mitch and our and commitment and decades, we Inari Inari. [indiscernible] and identify Mitch's Mitch and his our adviser. well-deserved been of has for friend, thoughtful wish thank and Most X us XXXX has him highly in a

in led sell-side and as VP and in as is Accounting, Inari's Inari He's Business financial over our known provide as he he LimFlow and next SVP has recently, CFO. led to the since day-to-day our leadership where Mitch of sure our last more been XXXX, Finance year. Board's Development, initially our the of well where acquisition I Kevin operations the and will confidence ahead, Looking the Kevin investors. analysts

Over come our experience, to and upon our phase X Kevin's deeply of appreciate have impact. I Kevin's the past accounting uniquely I respect these and rely and organization is qualified commitment years, growth summary, next patience. In leadership. judgment to and to and mission into also expertise, lead he finance

as way role continue from and We will October expect point, smooth efforts early transition At Inari in support remain with January of a every will Kevin XXXX. XXXX. through X, of Mitch CFO Mitch the to to that Kevin's

Now about to our discussion results. on Inari's financial QX

mentioned, we growth the quarter. second I drove in XX% As

Our performance market-leading PE across well and including solutions our the contributions for was patient we our therapies. populations, underpinned expanding as therapies set call which Inari portfolio, new DVT of emerging by as strong

our had in business. growth we Finally, strong of another international quarter

As also pleased we revenue year, sustained in the our reach operating half XXXX. to look ahead of to and our guidance are the reaffirm to of first second we're annual half expectations the profitability increasing

was rest emerging Looking strong areas. In we international executing in in against market our by the in in now share I'll of businesses. sustainable therapies U.S. million, growth QX, strategic of versus in underlying development continue ongoing continue can market, ahead and to XX% will objectives efforts. procedures see grow to commercial expect QX, our supported across each mechanical continue neighborhood and year, XX%. of growth highlights as year, we will strong VTE of prior $XXX Despite alone these support defined the this global and that thrombectomy some this to our the up VTE seasonality revenue VTE, our expansion and

the the We split in hire focused at measured and a in pace. largest we reps territories industry, sales force continue VTE have to

build that making each are for professionals are given in helping sales PE Our has ensure which programs DVT consideration meaningful interventional diagnosed our therapy. hospital customers progress intended patient to the VTE or excellence

rates, rates opportunity remains. beyond. above As XX% TAM of continue double-digit much penetration our from of adoption penetration case in hospital to strong we some we are Despite shared market. and single-digit last time, addressable can team seeing most accounts, the work advanced and current quarter, confident move Over penetration high our target these impressive to our we're

applies Before I we're updating on for or This CTXL, any like treat tools about I ClotTriever physicians this related to catheter, update to to scope use. is DVT. to update of for recently our first defect. issued provide would expect and specifically device additional talk XL designed revenue We clinically, work voluntary instructions purpose-built the notice we not complex doing brief a the procedural the guidance do field action provides a to not CTXL, malfunction and only The impact.

commercial we will to that as data drive will at better lead our our develop and support PEERLESS excited To QX. with high-quality share we the continue towards we field outcomes. clinical. to efforts, to data I'm a Turning markets medical clinical release major meeting our patient in

driving those impact of treatment. to over receive of progress being segment, third RCTs was EKOS. PEERLESS believe we As have of interventions market, on like is enrollment patients our an segment patients X undergoing patient major to this up a risk intermediate estimate are legacy patients the compared of catheter-based we lytic-based to still lytic-based thrombectomine and to to complete mechanical the approximately of more as some the first outcomes evaluate thrombolysis. within of our Interventional designed Despite with FlowTriever catheter-directed XX% date, Today, PE with are will using this PEERLESS treated reminder, to intervention. a type FlowTriever

PE from other We PEERLESS the golden conservative believe competitive for Peerless these extend alone RCT the of expect to PE in our as in PEERLESS frontline patients. studies alone treatment continuing with space. Meanwhile, DVT. data advance of position ultimately moat compare enrollment to conservative both medical to the FlowTriever beginning our care products RCTs, in VTE management therapy We which a further X in optimal the also our management, Defiance, X to intermediate-risk anticoagulation comparing to standard will to are establish change era FlowTriever medical ClotTriever interventional in and leadership in and usher comparing FlowTriever of PE will change anticoagulation of ClotTriever. and we guidelines, away

In XX% of we distinct populations Emerging a in years billion the over up versus together This TAM alone. to U.S. our million year consists following purposeful outside sequentially. revenue, Emerging delivered $X X comprising in investments. XX% QX, patient prior $X the business. VTE, Global of and Therapies segment Turning of Therapies

success the treatment QX for purpose-built by part during chronic in of QX. driven was early Our strong disease CBD. VenaCore tool our second adoption progressed or VenaCore, market venous of release full to

includes a $X As a patients. annual X alongside reminder, of a pool XXX,XXX of billion we market the representing over incidence patients, TAM, substantial for addressable approximately prevalence million believe CBD an

forward. to strengthen can VenaCore has clinical we're exploring of addition our that also physicians CBD, found this our many in and in further potentially DVT, toolkit utility DVT have going how well In working

CLTI. to Turning

LimFlow the is great from well. for make into X.X CLTI, business U.S. new billion our no early a suffering to translating continue We year Inari progress offers integrating into XX,XXX USD the LimFlow hope option launch and TAM. patients per advancing

year selection patient wound building We and physician follow-up. XXXX deliberate view continue as thoughtful foundation and VAC remain and focused training, of approvals to on care a

approval in to FlowTriever approval limited with ago, system. this received Just we the X system. existing from a beginning in QX, of market This the key LimFlow LimFlow to the second-generation as release actively stent QX. our commercialize our improves and forward weeks first-generation ClotTriever PMA we complete FDA look have we're After product working system. iterate delivery component we we done to refine toolkits, the for and

proposed for In to draft rule. cases the that $X,XXX. the outpatient to earlier to hospital reimbursement prospective setting this a existing of as addition, earlier we're for reimbursement to the much month procedure year This year. relevant $XX,XXX to the currently pleased inpatient performed $XX,XXX, beginning a the from reimbursement October lympho roughly the increase meaningful payment is NTAP recently setting. XX,XXX in procedures in is performed as XXXX released X CMS in increase enhanced of highlight life lympho outpatient addition of DRG-based proposed outpatient that add This this in this system hospital to would XX%

ruling inpatient next the in the QX. see expect in CMS We or from outpatient reimbursement final reimbursement ruling week to in so the for final for

this the treatment limited third to emerging our Arctic a needs of acute is therapies The our a our tremendous of To unmet by remain in clots intra AV and address the $XXX market using emerging system lack track portfolio addresses ischemia initiate characterized we We market, release device. therapies QX. fistula TAM by -- on addressable purpose-built of our final million tools. a second-generation market market

time, XX% look at work of market day confident a NRE continue for account and over business platform to on second-generation to it We Driven efforts, by bringing X our we're can least to year. intro these all forward therapies revenue. emerging next

driven by of quarter like strong our XX% Strength business. Finally, international and up of another year. in primarily solutions adoption discuss versus was to I prior America. would million Revenue Latin our was the Europe in $XX

to remain and Enara progress China on total in we -- to about are QX. we're day XX% for We patients in track expect we least international making sales Additionally, X treat both of and the Japan account at revenue. excited

with for and story The DeiteX determined with to the He DBT and venous interventional anticoagulation months a physicians Before -- acute our had impact solution, offered I man like patient turn our most medical short was alone. share, in demonstrates tissue. -- a they to of obstruction as A thrombosis. instructive treatment of vein had and a only of diagnosed it able the he chronic the amazed of from including of chronic about to was sought In a skilled of cut, second and to medication greatly months transformal exciting came -- a Vencore swelling our New transformed like and on catalysts treat pain patients mission CBD beyond. always, tree, his the to has better designed desperate of over using treatment to of are expands that, another therapy all the but his for introduction for needs. complexity and bring ability to with conservative to scar we all patients getting symptoms are The opinion, despite the started. as Bencor turn was not good further longer number to previously. There that lesions Mitch. specifically patient for chronic material right fibrous Mitch, the we care In pleased of clutter a was business are Pro removed the worsened. deep significant and patients. hospital venous in veins management, procedure, on leg. call into consistent treatment XXXX By continued and adherence the he the payments Bold with just elements closing, especially horizon. and be we progressed XX-year-old the both over incredible tool for the would at Cotter often treat call QX physicians I'll is the unmet technologies condition the wall XX-minute from progress toolkit, of disease. been this remainder York with as positioned that With And say, I'd no date, our disease. Venacor. to presented our The performance were of this for how technology had candidate time chronic the facility of venous we're

Mitchell Hill

Thanks, Drew.

XX.X% same XX.X% $X.X the the Emerging revenue up up of over of second same represents XXXX prior quarter prior Therapies prior of compared million, the in International quarter million Inari's the second was our the XX.X% $XXX.X $X.X revenue up VTE over of growth was the of million, in to quarter period This million. the year. XX.X% Global the second same of over to year. Turning period XXXX the revenue year. prior results, over was period for up million, second $XX Global sequential the year. revenue $XXX.X quarter was

change associated with was margin the in mix, XX.X% best-in-class XXXX in with fees. $XXX.X compared quarter $XX.X and the quarter same period expenses the The with prior prior Our increasing of internationalization and second $XX.X to period. of expenses material was XXXX, the expenses of for XX.X% related year. gross R&D compared expense was compared The new XXXX XX.X% the period in primarily supplies quarter million of year-over-year of business. Operating the the for second $XXX.X costs in year the ramp-up product to were products was due second professional increase million R&D personnel-related the of due for in up million and million expenses increases same XXXX. with

as second quarter half revenue the XXXX, a to we $XXX.X year, the roughly R&D to XX.X% with expect million back For was the of compared $XX.X expense similar half. SG&A the be in percentage expenses team of first of million was same increase SG&A legal, personal and admin in the in other expenses. increased year. prior the commissions, related as increases due share-based in additional result period marketing to primarily for compensation members, a expenses of up

prior second income of quarter acquired the The of a of of same second million $X.X non-GAAP of $XX.X of a a acquisition-related the XXXX diluted per expenses same no second compared revenue X intangible compares diluted of operating quarter year. were of $X.X we in basis, year. of $X.XX value and loss items for half compared $X.X second and share consideration $XX.X $X.XX million. non-GAAP $XX.X asset year, basic expenses GAAP to the excludes was net and value expenses, in the on period in expect second consideration, QX amortization On There was as the diluted of loss with the the fully impact the the the fair contingent related for count were to change share asset operating period of in and million loss respectively, a was share GAAP in basic quarter basis of fair our expense operating for XX.X share decrease our a the million. This million. which in million, a quarter fully the year business changes had LimFlow through these loss to no period per a the the weighted progress. percentage $X diluted quarter on Amortization average of move second intangible we level of count SG&A saw the continues and net basic million, average million of The second related acquisition-related quarter. Inari and the XXXX. Net we its weighted income loss year. recorded adjustments As to prior $XX.X of the prior $X.X in with of to contingent prior on the and XXXX million expenses was quarter our XXXX as $XX.X XXXX, net a million approximate XXXX. In adjustment million of acquired liability same exciting was

goals access provided in approximately execute strong within our commercial of are we approach quarter, same a thoughtful by were LimFlow operating healthy team remain $X.X end maintaining to totaling our cash and activities driving the also second compared $XXX.X supporting held second investments $XXX quarter to in a managing our we ability balance will primarily objectives liquidity. flows and and the duration cash of our the confident and our cash the used balance our and against flows million in we cash We million in of the to of balance anticipate the of functions. At period current due investments XXXX As and our our cash the leverage operating with self-fund million we activities of strategic $XXX,XXX business above growth year. the XXXX, to of business, to remain sheet. for In

our XXXX million the we guidance midpoint million, XX.X% to $XXX.X million million of to raising of million $XXX.X $XXX.X increase over year XX.X% revenue to of to Turning our to outlook, XXXX are of at range reflecting guidance full prior growth $XXX.X an $X our XXXX. approximately

and second discussed, QX guidance phasing pillars, half reflects year. a growth half VTE, given sequential last roughly from our anticipate contributions would that QX the timing international. From this growth we catalyst all be perspective, we Our the our have to year Emerging from growth X Therapies of of sequential

QX. to compared growth stronger we a result, QX As expect see to year-over-year in

towards like I would nice to a Lastly, comment progress profitability. on

strategic half remaining the profitability of QX first to committed expect we achieving from losses commentary fully see while continuing versus the our in in second growth of our XXXX. in to drive half. objectives operating first improvement half are in Reaffirming to invest the sustained an We operating XXXX call, to

Specifically, again to sequential we in see expect decreases QX and operating in QX. loss

Before Drew highlight my mentioned mentioned earlier, frame. since questions, like XXXX on turning the comment working Drew the Inari for the to my call tremendous I growth our career. has would as quickly to retirement time professional of news the in moderator been

of has closely strategy to as moderator our Inari will vision the management the Kevin with contributions an Kevin questions. resources say mine, Like leader her deliberate like functions see I Inari future, that's people the patient development Kevin's I'm just for to years to team. importantly, into products, with many our contributor I'll turn started. back While to Inari's to day leading Drew, a and, be would immense Kevin his impressive, most our continue accounting and well chosen Inari. Purple, in Inari's are or also financial our that, has the to confidence financial financial express to clot and reflects a to Blood his any diagnosed at in we the and as and venous lead long-term want affairs other succession I when the plan. be continue will the runs getting he the in feel team about Inari's a of and excited I'm efforts. doctor, senior I confident culmination call members Strange markets. I works Tom in This as as future. With my promotion the for CFO. business been next and already, to arterial make

we joined Kevin Inari's Officer; segment, by Chief CFO. Q&A be the Dr. Tom Inari's and incoming will For Strange, Medical Tu,

Operator

Fargo. Biegelsen today our from first And question Wells Instructions]. Larry [Operator from comes

Unknown Analyst

U.S. of year-over-year start Maybe on retirement, as all back for on This VTE sales Mitch. growth pieces the we of XX% Larry. we together, about quarter. the is [indiscernible] this put for into Congrats to off,

market sustaining up And that does the growth QX? core in that half into of to you the growth you how see second do So underlying stack saw year? the that

Andrew Hykes

Hykes. well. started Drew to that. Yes, I question. in as this Others want join can is I the on appreciate may get

in saw the to we business relative part QX. that VTE, growth So XX% in of

the That continues in a growth underlying that another So XX%. as than as that, in of what of larger today, than in And being that to assessment internationally, prepared us base was little remarks, market across here state quarter robust as the to be here much of backdrop slower market strong growth that we've the albeit you continue the faster growth. characterized robust a growth. in we our neighborhood off U.S. In little a see heard underlying U.S. the past, a

growth a We be have in market, forward DVT, X:X or despite and market confident every highly of remain and to within X.X have be be and the to leader. fast that the continuing as and Xx competitive we continuing We move in confident PE, we continuing believe anticipation within anticipate we dynamics, continue in the that leader. to lead lead be we leader

confidence technology, that a differentiated think from highly I every of day. high-quality stronger our the getting commercial performance The strength portfolio, engine, data the approach stems development. our our of market IP to

a those in of be to in result, as and give confidence first VTE we're to year. leader this growth things continue going you the in drive like going to robust All this just saw of half the we're to us continue market.

Mitchell Hill

multiproduct and as I towards years that the combine And internationally, in well of -- add, numbers way with today thanks probably growth XX% by retirement building started therapies the XX% we again, you could I the we way, in feel midpoint. at with but the growth platform we VTE, this for X the the when this And our guiding ago. in on over company well out XX% after updated maybe the fact, think, to, of kind XX% we're are, emerging growth like that wishes, quickly

up. So we're is the the pleased with way year setting

Unknown Analyst

midpoint by sequential expect. the about great the magnitude QX on and Great. revenue raised Maybe the for that color we my growth quarter-over-quarter [indiscernible] you total QX should in follow-up gave guidance. of at and

of that are So And of growth? terms we competitive anything the note half? in headwinds in second what sequential should drivers key the

Andrew Hykes

that. to speak Sure. I can

have the on So think, continued comes of strength end the the year, the in mind million that reflects of see the in different of we business. the through we Keep increase all confidence the across raise $XX halfway parts million a heels I $X at here guidance, QX.

the here, second Looking year, ahead continue in catalysts that of the we've of set we in the half see to described from past. same the

product, list in with and market peer readout release of Continued QX, coming full acute nice the with data reentry catalysts the Artix with anticipated the VenaCore in ischemia in runway limb some that Limflow finally, relative to the product both of and And in NTAP Japan that update. the to then new the and anticipated the catalysts are we've talked launch a year. Those by China end that all in the at point, intact year. them of half opposed with as of them you past, to describe on and heard clarity us updated was remain of today. And we QX clearly as the remarks, here Many million are the a the the this $X into towards second account raise guidance in as more impact the timing tilting a QX taken with prepared impact. in

Operator

Instructions]. [Operator

Our Titchmarsh Morgan next question comes Stanley. from from Kallum

Kallum Titchmarsh

to Mitch, retirement. happy again, a you wish I would like And

sooner the any for can to looking is or update just clients years certainly that any chance pretty a it's know you previously. you've than inquiry, I say, but this, on you're I limited speak some with. resolution what on there DOJ the multiple comment of on Just an overhang mentioned

give would color I you on any that. appreciate could So

Andrew Hykes

Happy Sure. speak that, to to Kallum.

quo DOJ. on status So the QX in

the of CID has later. keep sooner on that than and in phase CID producing a time in But tactics. I cooperation commercial not our In to no to DOJ. is likely nor impact cooperate think have months. years, if precedents it point had stated along. historically, Always continue We resolves opposed at the rather quarters, That all as commercial measured weeks the mind, to a information that's most really line as for chance to this strategy. with the related meantime, as the our we we've

So update that's the to DOJ. the relative

Adam Maeder

then part II And key a follow-up. the of really as A view spoken that of lots to one Great. we've TAM. significant unlocking doctors PEERLESS

risk you about expecting 'XX call this XXXX. the NPE. What substantial it temporarily and called XX% talked II, that level 'XX. gives not interim period might that period? trending a that through between there and growth below is interim the call like PEERLESS of RCT until, it We're that today? You obviously market confidence I in in step guess now from out around Or a at we is readout

Thomas Tu

is are the to which, the let's which tremendous is I I this of Kallum, read out II, impact on market. several that to is forget do that PEERLESS standard Yes, again, that question. randomizes have pointing we'll PEERLESS anticoagulation. FlowTriever But going think Thanks it Tom. on this the for not to physicians given later care, year,

raises space. As called catheter-directed prepared up of therapy I We it in FlowTriever embolism the for think to think an this in you is be heard to that still terms using of are interventions quality outmoded PEERLESS X/X comments, comparing that to pulmonary performed the data we randomized that bar is thrombolysis. And the form going in therapy. first of of evidence

the of excitement, market lot in that XXXX think of and you're see and I probably to impact going there's beyond. a

Operator

Stephanie Bank Pezzi question [ comes of next from Our America. ] from

Stephanie Piazzola

Mitch. to of just on But anything the echo sentiments and now mentioned, I we Mitch, the a some right hand about why a know full wanted and follow if the the curious, we'll But a comments kind happy is of on to up is the CFO to reins saying all time is on transition Drew CFO. plan Kevin, as more retirement. and retirement on choice great you're to do over

Mitchell Hill

to feel like any going help to of the transition the and him I Inari. Kevin. haven't for through I Kevin year is lot a do Yes. to through the a frame that closely for I can. really of what pass retire I and then be the and have doing forward way to a definitely with I'm to question, end working look of given smooth baton October after to X time to thought company great kind the me this in Thanks Stephanie. time

I'm of thing executive device not say will terms I'll what not med role the a It's doing. my I at company. be I kind of taking in The sure. one TBD another XXXX, In be terms of can is that

for doing future days past some I've So and excited the hopefully, super the year and days of ski more this company log and about certainly the I Inari. the compared rest wish can been to what well few for

Stephanie Piazzola

maybe the it. Got thought I throughout another quarter. you wanted about follow-up, trends And to just ask

call, QX in of the you April. weeks On mentioned vacation seeing some the impact first

maybe curious just the QX and into throughout that procedure quarter how ties kind the the gave? and how of guidance that trended and sequential quarter QX So exiting you volumes

Andrew Hykes

can stab I that one. at Stephanie, take a

line, of did see. were And that's as we we the within QX. VTE. If the what the historically half been we those summer the we seasonality mentioned, trends year, front That's seasonal into and enough, headwinds, and Despite fall. did at that past the the is rest here, on able underlying you the move through grow pretty anticipated any the second see the So in prologue you end the into procedure improve consistent. move as we to as particularly XX% will quarter top sure of XX% of

So hopeful very those performed repeat, we're seasonal for pleased also with business QX those but how we're QX to anticipated trends headwinds. despite the in

Operator

from question comes BTIG. Our Marie next from Thibault

Marie Thibault

here, role. see little Wondering readouts I it addition on for so enrollment skiing. your the details underway. on update an of in Mitch, are given any on give in can retirement. know hope and if Defiance, I to of you I. II importance get that you pleased PEERLESS I those wanted to bit to PEERLESS and lines Kevin, And they in you get I could time if data us enjoy a we start much lot guess, the congrats a have

Thomas Tu

question, Thanks for Marie. the

seem on is clinical talk very be thrombolysis, yes, looking strategy. excited again, and I. know our those of the we our reminder, RCT randomizing are excited RCTs II to skipping question as at year. So that presentation I it trials are our trial FlowTriever anticoagulation PEERLESS are versus therapies a about later But first directly, And answering X over PEERLESS this we're to results and I'm your Defiance know about catheter-directed I greatly versus those anticipated. alone.

and are enrollment We're these predicted. on time a enroll. to very as course, pleased going bit going to schedule very trials more Of so and far. the are large with take It's

the in the those. public about focus PEERLESS excited eye. executing is But now out results I we're think So there on our right getting I

Marie Thibault

then forward We it. Yes. follow-up to look a quick here. And

QX. those You Will working little patients sales those going treating or direct, Japan, there? details distributor more approach you tell you'll a mentioned be any China us markets? partners bit Can your in and with markets, you on about be

Andrew Hykes

that one. can I Marie. Sure, take

us execute of path towards China helping to QX Both approval start large They're the in regulatory We market as a unmet is in is are and continue both on size Japan. particularly but us, than track given we population patients compelling opportunities more Japan both need, markets. for pointing a for an for just remain So China for well. a respective also QX market those pathways start. the enormous both of those

in So we've working position patients those now. as you know, help been approval over years to X markets. ourselves and a put to gain really respective in

more provide to launching we that at those those certainly go-to-market strategy closer get we'll we closer actually I in will and for and strategy general get think X our as markets. in share milestones, But leave have as to to markets. our it those I respective more X color on today, we commercial more think

Operator

question next Plovanic from Canaccord. Bill Our from comes

William Plovanic

we that for X.X% last get if think $XXX.X would regards half -- Mitch, would QX, guidance I of be that QX was would QX the I to First, which to -- at million, just us $X.X it look up QX sequentially, -- think to in year, million.

it's talk bit. And guidance little million $XXX third are secondly, you the people did is, look you at about high consensus, you maybe a because that question you you million. if it $XXX.X back got to think give to lift or Is you out, need ramp. that as sell-through, got about then we should The in that to Or is signaling want that? -- sell-in, a continue VenaCore what how from just think don't the it is this quarter? will just quarter, sell and upside I as scale that to that launch, got and off just the that we we some you -- about you ramped got

Mitchell Hill

had up math of the your And really a is we So done. of appear be XXXX. of in catalysts the I guidance lot we QX well sort one more that on is QX. things the saw in think last of to lining catalyst This year Bill, question, year,

people profile a revenue to of number. comparable will our of And a XXXX think is a I the is from of year-over-year to QX. of basis, trying QX suggest from from So what tougher QX of we're how point view sort to sort the

I from close. see And acceleration a greater we at again, then math think QX, your is pretty to QX time. point in that

hopefully, the of helpful commentary the that's So in terms how rest of we year. see

models, if of there. could wanted all stuff your the Of helpful be to you up see course, we just but we is in to guys terms consensus

Andrew Hykes

some on to related VenaCore, second that. can And I then, Bill, your provide on color question

move remarks, So QX, we with the you full market seen really prepared we've enthusiastic release did VenaCore feedback in from as physicians. and some in heard into

given is there within within second VenaCore. need feedback prepared one really Lots heard us the of runway tool rolling our addresses, seeing out of I the with we've patient example CBD are good in that to kind purpose-built SMR of out. that First VenaCore is the how remarks in story clear continue ahead we're impact and VenaCore of that gotten unmet foremost, and the a as product CBD, with early described we

And So we're half us VenaCore VenaCore the contribute in with other in again, remarks. will seeing mention it DVT. prepared also how you excited we physicians use is of to second the note about that heard year. One thing were in the

we're continue So our nice explore to of the DVT to bolster continuing as to to that see franchise. understand that and and a way that, strength

Operator

from Chris Nephron from question next comes Pasquale Our Research.

Christopher Pasquale

your I'll in and comes the go step-up retirement. why number that Mitch. question I sequential start honor $XX in you of the more could the million drove some detail Congrats, the was into on SG&A down year? of back in CFO Maybe with what half hoping

Mitchell Hill

thanks Chris, for also about and also saw expense and We matter DOJ In other Sure. talked head comp. and commissions, familiar there's Happy growth, some help to stock-based bad imperative your some and QX, illegal. things. a in well with related to debt we count some then wishes. QX that, with some with Obviously, you're just

that collection items a of different whole So kind of happened.

Some of us those the we into trajectory items to are as more onetime in nature, of and of SG&A that's and kind move led QX QX. of on comment kind what

the I stuff -- revenue. at non-GAAP SG&A in about excluding of spend year, was looking the this QX of of kind the XX% think

remainder it to low so see with of drop XXs high the from the back the move the expect year. XXs we And through the into

kind remainder we're of operating as -- some the commentary the operating that. to I we So me on to move you say into the XXXX prepared the And I ability confident remarks, heard in think through move as wanted half return provide that's the during think longer and first XXXX. profitability to we of we company's narrow losses its then of as term,

it's So going all fine. to I'd say be

Christopher Pasquale

one quick then And X maybe or for Drew Tom.

milestone this launch on second-gen how love Limited And thoughts Is system LimFlow of some is XXXX? is what key we activity into inflection the in an expect should the Just would rollout this a going? mean? there where heading

Andrew Hykes

Actually, the Yes. the LimFlow Chris. has Thanks all acquisition. going question, way been the back to for to Kevin closest

I think good first. he'd question that answer a position be in to

Unknown Executive

question, Thanks, Drew. And thanks for Chris. the

about as So LimFlow post close you know, X deal we're transaction. months

progress hurdles gotten are. pleased an the perspective. that about where through from and think good from we're perspective, with integration really integration key we We're early feel an I making having overall, some we

we're the say seeing thus with feeling very but as lot the you've a enthusiasm talk focused We've the heard perspective, So in still I'd Tom among very marketplace, the get several good what good. From had pleased successful gate. on to physician traction a really past, some and ensuring commercial we Good And really in we're of among of hospitals. through a overall, getting prepared really docs far. we also positive right good do, all we're out training sure programs of you've we're care rollout. about more process the work foundation-building in said year making XXXX as LimFlow. the for stages We're trying outcomes protocols get the the rollout. But of in early committees. VAC really that, training to outcomes heard patients the ensure early to we're remarks, wound stages is really physicians. in the really of pick having the in and We're We're establishing

those As you we're handle the both NTAP online remarks, prepared October and the of heard the the coming towards will end a of of end going also of to new catalysts launch in year. the towards be year. the couple the the That of have in

this So we and feel momentum good foundation up XXXX. like a setting ourselves what building be very year, positive for we've should in we're got

Operator

Piper question Maeder next comes from Our Sandler. Adam from

Adam Maeder

have disclose if And And the ClotTriever breakout on U.S. the as double-click willing CFO. and on Mitch, would follow-up. and between it's provide I retirement wanted results just to Kevin, that qualitative? in you're each incremental FlowTriever of quarter. the don't know on the the one congrats even performance any the those, for the VTE in just I appointment quarter congrats I on quick but love to first then color you

Andrew Hykes

that. I Sure, started Adam, can get on

the in XX% U.S., a So growth faster slower that VTE, here little than internationally. little that a than in

seen the question, Within both transient the and kind facing we see as were what consistent U.S., your described. specific we growth balanced across you seasonal headwinds, past of we've DVT did mix [indiscernible] to some in to PE, pretty

in in year. the will of all certainly and within and factor ahead the the here So and into momentum hope internationally certainly half quarter. -- that nice that that we of look the all, in as was here continue But growth U.S., VTE a another second of expect quarter we

Adam Maeder

just the commentary wanted being XL. to And and for a revenue ClotTriever maybe But what's ask on voluntary for expand like prepared exactly doesn't you the field [indiscernible] you addressed sound It the briefly in remarks, I did give expect deal. to follow-up, I big there. don't I impact. the notice what want the the just opportunity on heard field to the

Thomas Tu

question, the for Adam. Thanks

a guidance. and notice to FDA proactively address procedural to it field that we briefly, technical yes, it's went offers with. It voluntary So additional

complex we the tool excellent some XX% location malfunction. This, designed IFU course, purpose-built particular or the of seen as To level DVT, and from technical associated update a outcomes we change on about nature with device clot patient physicians. no we've these of that's treat And device of there's discussed labeling predict conservative including pretty we're patients. subset of about, is So to not aspects. with XL defect first feedback the specific to this. severe no is population patients. is very refers to recall. management. The that the that's small It's impact our of revenue a you said, And combination this factors, specific specifically talking And a disease a have set

the on stay to going is device market. the So

this reduce for the that something our can when reason risk we we this communicate for I all will transparently proactively. is think of patients, EKOS [ and first learn patient's ]

Operator

comes question next Our from from Richard Truist. Newitter

Richard Newitter

-- I calculation you just that potentially my you from in bit see looking a was growing is little high ask anything in in your that to I hoping the teens core forward of 'XX, could I there expecting share would dynamics maybe to kind hear business. together, your mid- stop growth, market you're in any to love it. confidence acceleration you've everything U.S. would putting been that of if there. like and sustaining level sounds the that venous possibly accelerating the

Andrew Hykes

question, for the Thanks Yes. Richard.

today. past we're iterate franchise high-quality course, believe So our we feel X% against to obviously in leverage execute put clinical mind, in read going development to going What in continue continue globally XXXX. a out is continue to the technology. is We're you data engine. this going set. going is same with be the and technologies. penetrated We're to well. market going will Excellence the I execute be to $X seen to VTE to evidence. In We're our to Keep U.S. to careful as guidance and continue market able we We're our here tell program. maybe to our have billion leverage commercial to of you've refine 'XX, that to XXXX out can in really not confident in fully our and leverage PEERLESS that VT We're playbook going certainly

just a are confidence momentum those ahead. ClotTriever. long, to this market with drive some of medical time large FlowTriever growth started to converting continue management and treatment to us The conservative is is All VTE we that over in from and give runway for getting frontline going we're things and

Richard Newitter

the not on love Would units, them price asked someone did. the business. how to me on there of in maybe contribution especially if And kind second the trend sure I'm follow-up. a commentary was what Any hear calls, from mix? forgive just the if core was quarter, -- going they juggling Great. in

Mitchell Hill

in disclosure to we Yes. stable in terms we We way -- the opportunities to anything, you looking can of see price, marketplace. the continue revenue just Richard, are provided. the that take if see for -- We so with price. treating successful we By of something customers pricing toolkits the that to called our price many that we plan hospital product have of tools when PPPs, per been basically procedure pricing both the themselves avail physicians of VTE the allows place. We've from with contributions, in

products the the feel about good pricing the of in kind we So positioning marketplace. of

Our procedure volumes were very strong in QX.

less primarily We of also other the related was case, product revenue and saw to in in stocking it quarters was some this QX some than In more where introductions QX. we've VenaCore. had

quarter-to-quarter. So just we kind are that's something of fluctuates that that

you've will I us think long we expect heard talk that about land. in that where term terms of

Operator

from comes question Margaret William next from Blair. Kaczor Our

Margaret Kaczor

weeks to commercialization of a data perspective maybe see one for drive mortality, the know at from the can at at in going the I come point at a in based on the kind use and look perspective, that forward PEERLESS guess, I'll skink. are I meeting that so question, What's ship. Salt level look Olympics do following maybe else, a what an TCT have ask sales or couple, time? And as one data everyone ICU meaningful more months. win and publish one good stay of awareness of this. Or and I with you and One, assume still post outcomes this like a question, importantly, to at then more benefit? your lines how big No versus all-cause your clinicians if you you we meet another and Lake some might wish like on PEERLESS the you seeing kind that you time luck like look launch, But potentially ]? most for something you I within asked the it's how would in on point retirement especially that should how depending the you to guess again, number. [ it's ratio. we at guys Mitch, of

Thomas Tu

about on meeting all the for this later that thanks We've to at and year, changed Margaret, a that and has for on saying nothing a expand detail really excited we're by I'll PEERLESS. the a bit presentation Peerless. committed on regard. question in

terms As line happy we'd change those. share more in data presentation. time But of of specific. we be to get no Certainly,

primary a important the reminder, ratio, PEERLESS of a endpoints. as you is As very win outcome described, with

one that stay. common these of points. are like embolism. them Some But is endpoints care length meaningful in thing Others pulmonary have incredibly all hospitals endpoints to these are hard ICU utilization physicians the in hospital clinical of patients, are end resource of they and of of

care going a of to somewhat of that on PEERLESS that very as PEERLESS highlight deal of II for is So being II of we era think is the standard we is which exciting should these studies form and therapy patients. therapy to a I've been the golden great comment as why very going for this, discussion the technique and far market we've win space. is reasons, kind clinical lytics to of form going describing new the think of been And will we're ratio see really you for first statistical an VTE we the as clear think outdated a in FlowTriever how that's be superior. And of of variety what

Margaret Kaczor

they the move are would share find subcategories, guess, going picking kind versus look you other. ratio win choosing, or perspective, and the your whole to which important from one clinicians I their way think to So at of more

Thomas Tu

at taken aspects top all because meaningful the the the I I But of in it A endpoints Like result is B. multiple physicians think different said, of study. Strategy the Strategy line there's comments total there. versus win look sophisticated will ratio on

Operator

no time, thank And gentlemen, for We We'll am joining. this be additional today's at ladies you concluding presentation. conference questions. I call and showing and

your lines. now may You disconnect

Inari Medical (NARI) 30 Jul 242024 Q2 Earnings call transcript