Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to Paragon 28's Second Quarter 2023 Earnings Conference Call. [Operator Instructions]As a reminder, this call is being recorded for replay purposes.

And now I would like to hand the conference over to your host today, Mr. Matthew Brinckman, Senior Vice President of Strategy and Investor Relations. Mr. ahead. go please Brinckman,

Matt Brinckman

and thank results joining on and DaCosta, Executive are and Financial quarter today's XX's XXXX Albert Officer; Chief and financial earnings Chairman Deitsch, you afternoon, Chief Paragon Officer. for second call Steve Good call. Presenting

begin, meaning to remind Private I pursuant laws, are of make federal management you forward-looking include to like Act call of Reform harbor Litigation made the this securities Securities during that would provisions the statements we that will Before statements within of safe the which XXXX.

intentions, materially to forward-looking Forward-looking future or beliefs, statements estimates to events, made differ statements from upon of these obligation, to assumptions to of are statements results statements. these are statements. include except law, the as company's predictions forward-looking XX number These actual cause or management's uncertainties, a hopes, available as may results current assumes All based update and subject performance. or statements risks, expectations and information, Paragon no by forward-looking required that

information in that is issued to release today. certain was time impact filings from contained these forward-looking time statements that Additional and company's in may the risks earlier and press SEC the uncertainties concerning

will adjusted today. the net we is earlier in the presentation, this reported revenue financial and constant net issued comparable measure revenue our release of growth measure, contained to During GAAP financial EBITDA growth. non-GAAP most A refer press to currency and reconciliation net income

will turn that, I over Albert. And call with to the

Albert DaCosta

things financial to overview business financial update and the update XXXX off a Thanks, for give then us our XXXX will earnings guidance. pass Matt. our joining quarter our call. for afternoon, I over of call provide Good second kick on results you Steve and with an an to and thank

commitment all rate. and about our foot is done, of world and many mission drives growth I a patients' our effort and ankle win pace every helping team To and team is our lives, pleased market that start ways. to to the what global ankle tenacity is our at off, collective and passion, so success extremely and continuing from great Paragon we above has and why really business enthusiasm the well grow That we work in foot changing with improve and XX see the the are things overall day.

to half this constant With Both for representing year. performance will the that, our XXXX year business half the had I and our turn business XX% of of on updates growth Total performances. year-over-year. first international some revenue U.S. strong and $XXX first was the million, currency business

grew constant digits our The international and XX% U.S. XX% grew currency, double all segments and year-to-date. grew

Our at business over with broader growth our challenges. rate foot despite balanced chain ankle growth delivered combined model, and market resilient supply the Xx industry-wide team,

second global in strong XX% our the businesses and performances net Both constant international had totaling as U.S. with $XX revenue growth million, year-over-year. of representing well, quarter currency

revenue to performance in and our once innovative Paragon comprehensive again U.S. surgeons portfolio, XX. led Our product continues sales new was which and to attract reps the quarter by

record a our quarter, customer surgeons. X,XXX base to the by we increased surgeon XX% During U.S.

to We increase also finished sales producing an the the increasing the quarter revenue rep. producing reps XXX with of sales number per in average while

markets. well contributions the sizable our quarter also from coming during very business international with key Our did growth

system. Gorilla Turning SMO to Met Phantom our product including System plating quarter, new Shortening portfolio. or launched the Supramalleolar In systems, Osteotomy, the we the fully second two and

procedures. novel is beta prevent associated thrilled that to We products launch Met Shortening with metatarsalgia we and year. approach toe to a various System later on a this have The floating to in few Phantom pathologies bring market also are forefoot

reproducible includes a and an Gorilla segment. met in plating help ankle ankle ankle and SMO bone of the in unmet deformities. highly graft replacement. including with system franchise, kit in need is This our ankle The addressing way our addresses will that of forefoot synergistic products total introduction a customized growth and The system catalyze offers streamlined, existing foot shortening system state-of-the-art surgeons our

As systems, of as and under over within pipeline, new indications. wedges, the boasts development introductions pipeline product launched and Perhaps legacy start since all as subsegments new segments and and span including important continue across XXXX, to reminder, XX and active XX substantial our the bone our exciting products, products growth our which our we've experience we a multiple of from products systems plating nearly screw ankle. foot

where a within Foot and market, meaningful can orthopedic gem so be high-growth contribute and space we in ankle is a feel dynamic, such the a way. to in we lucky

us focus passion singular our Our drives and and every on motivates this success. day market

geography, continue share balance and a take the business compelling of and our across and and We to testament to perform strength team. subsegment each overall well

will it with And turn that, I to Steve. now over

Stephen Deitsch

Thank you, Albert.

for million, quarter XX% margin second respectively. XX% the compared to of XX's quarter net constant Paragon reported growth, and XX% representing last XXXX XX.X% Gross profit was revenue second year. $XX currency XXXX was and

quarter continue investments We in for $X.X development of R&D million and the make as XXXX. revenue was of second XX% research or important to

quarter, additional clinical regulatory studies product our quality and we in made ongoing and the investments initiatives. pipeline, During innovative robust and

the Total for We quarter representing consistent and year-over-year consecutive has quarters. a point continue three SG&A last basis investments past improvement. the general expense in margin been to million leverage administrative of expense, our totaled for XXX which second $XX.X selling, XXXX,

the to EBITDA Adjusted second for XXXX a improved of million $X.X quarter XX% loss. by

$X loss. million in Second of growth other expenses, $X to quarter onetime improved year-to-date and our investments by a On a basis, approximately million of our adjusted EBITDA composed initiatives. included EBITDA structure XX% organizational adjusted

adjusted We $X million loss continue million $XX.X to $XX the to EBITDA in XXXX. as million to compared expect improve by XXXX to

liquidity. Turning flow to cash and

quarter XXXX. million XX, excess These of inventory for flow at despite months ended and improvements XXXX, had were year-over-year $XX.X cash of payments. used cash second XX% $X.X six in million operating and hand operating nonrecurring the PXX higher-than-normal During settlement of normalizing legal on after June levels

to launches growth. our product and have lead new support expanded our commercial to significantly inventory supplier increased requirements growth inventory the footprint, Beyond contributed times

times our lead us to increase of inventory. longer these have levels required power Specifically,

balance final sets higher-than-normal components been of sales or inventory kits to the includes in complete awaiting revenue that contributing level a have quarter. delivery inventory Our otherwise of deployed would to our force, work also process incomplete to in

Turning $XXX of We quarter the ended approximately senior cash total including to investments liquidity. million to million million of liquidity, available of $XX our with via $XX up XXXX second of credit facility. short-term and and cash

comfortable and enable which breakeven. adjusted anticipated our expect liquidity future cash us and revenue cash position, EBITDA to Considering remain we our flow we continue growth will flow, to reach free with to improvements

our and our net is continues products, strong commercial PXX our year. half XXXX guidance. demand and going execution to the momentum turning to Now revenue for the very second see into tremendous innovative of

$XXX For year previous XX% year-over-year growth. million the we net guidance constant midpoint to revenue our $XXX a basis, reaffirming On million. of our range the XXXX, of of currency full revenue implies are guidance

consistent assumes revenue foreign rates remain with translation currency current net guidance rates. Our also translation

our That end remarks. is the of prepared

Operator

[Operator Instructions] of question Craig Bank America. first your And will Bijou come from with

open. Your line is

Craig Bijou

Good hits of a you more afternoon, I challenges. guess of little wanted with if taking they guys. can it certain And into maybe quantify questions. some detail the start bit I impact were, others. what maybe to exactly if go the more for the than Thanks products and supply chain

Stephen Deitsch

plus facing been out have headwinds a supply And really years question. industry the navigating Good for the teams been of Steve. good It's there done really and Craig. we've that since couple have our chain job through with along rest Thanks, COVID, that. a the of

teams resilient. and teams really ops commercial been Our have

sterile primarily in During on the second packaged. quarter, sell certain call that be products I are we number our of would we and what would market, stockouts experience did those a that higher products U.S.

we've from in some seen eight to so lead And of products those XX our times months months. go

that. some a new our so categories of of because are lot And experiencing product stockouts

definitely the So U.S. second U.S. up in on impact quarter, despite the an year-to-date had area But challenges, in that our the XX% business an that's these is particularly

and - some And to actually also, actually of getting door. on we the started relief July, see we products in beginning those some in expect

over So year. of the really through that, second roll that's to we particularly we're as improve time, half optimistic this going

Craig Bijou

to guidance, U.S. far I The did as if side, just if U.S. would has about, talked love challenges. done obviously, supply just split Got some year. the it. quarter, Steve. - in maybe I thus and then - That's doing is you your And the helpful, hear international this well reaffirmed well international, between

just guidance. maybe reaffirmed to should we how about talk about So think your international contribution the and U.S.

Stephen Deitsch

before eight maybe I table the actually do And that, to weeks months. punched Yes. was not me under it Albert said weeks, that XX and

team. felt to so sales to I'm our like So it's months me, sure

clarify to wanted just I that. So

do similar as basis So go expect a on go forward. continue we pretty forward, as contribute our to to we we businesses

business international can the also We has U.S. then our it of driver by be of has year-to-date as the And our year. you to our that. business terrific momentum, to growth lot as a us for and for continue a results half first been expect of to see prior also

as think XQ, One highest into about markets thing the we of typically the there. business seasonality revenue concentration of level because to in the of has our go European international

contribution do third quarter. a international step-down see in during the you So typically

think the reaffirmation of So those - about way the that's I would guidance.

be our we demand really our to And we about prudent our uncertainties within. reaffirming about supply think relating products. and the other operate enormous We're just to our the conditions situation when guidance chain all for maintaining economic guidance, has business

Craig Bijou

guidance? Any thoughts QX should squeeze with versus guidance we I Got to cadence. the just QX about If it. respect can on the on think how

Stephen Deitsch

to to quarter Yes. this compared No, a in that. less as couple year. third answer And have last happy days actually we year, the billing

So so. of or will that points basis headwind XXX have a

the So revenue previous quarter we'll you look the have of in historical concentration third quarter compared greater a as levels. fourth at when to our

of So back growth be quarter up we ramping the in of the to and quarter. fourth third of again because our terms growth that year then expect into factor lowest quarter the

comparison thing other year, in XX% quarter. year in that third XQ of we we terms the last is this have grew The

our year toughest that's of well. the comp So as

So when level thinking had some on will growth unusual about a basis. and modeling XQ that the factors you're our of quarterly business, your lowest year the the make doing

Craig Bijou

it. Got you. Thank

Stephen Deitsch

Thanks Craig.

Operator

from Needham Mike Your & with Company. Matson next question comes

is line open. Your

Mike Matson

Yes.

surgeon willing I some us anything the share to Just maybe that, any like if quarter. if you training could wondering numbers but... know give of you're don't update in or an on your

Stephen Deitsch

Mike, happy Yes, to.

the mobile strong We us for hundreds surgeons. XXX lab training continue quarter. in was again, us for to again really effective have momentum, surgeons of very training over The second training

new new both as importantly, our continuing surgeons product to mentioned existing train train So lot and of products offerings. touch also on we've a also but before, surgeons on we we're our

well So have our it's another And surgeons. for is other and then also a as to have to these members team opportunities us. getting alongside train commercial just benefit representatives benefit double sales

Mike Matson

quarter. of of just kind kind is botch amount, does Okay. know a out recovery like it's a is just particularly something it of it And those little. it wondering, international kind I a I just more some maybe dollar mean happened? markets? I this procedural there was that a growth there? was thing the strong Or then But on going Or is in of random smaller

Stephen Deitsch

really with the United training or been the teams the States. existing training of We've growth on products. really a pleased surgeons the markets in nice surgeons job our And there new have done outside

education killing our it right a new such to programs And of doing well. markets, medical lot is they're as driven the now. existing And customers market really absolutely Our our Australian U.K., very, have very us. just

in of just then of markets, growth been all us. starting and really starting have we've And doing market across new a major to Spain we And hit lot really that drive to our that. a is for

so. the for I think quarters we've sequential last or eight reported quarters record

but - seasonality been are very making particularly we of a I with. little bit strong, move really as coming back. get investments we we've into pleased the of think it's we off. was XQ, But lot And So paying a XQ, just and XQ

Mike Matson

Okay. you. Great. Thank

Operator

And your Matthew with comes next question Piper O'Brien Sandler. from

open. is line Your

Matthew O'Brien

Thanks performance for Albert just taking the the the questions. on start supply or again Steve. Can specifically, and we chain, U.S.

of into certain do of So really start are more those door, to weren't out legacy up benefits the and growth, are side get products chain side just on you you you Just of much see you set that the to just of the put lost of the couldn't components delayed it new And QX getting the on get because the cases things? kind still sets they issue? especially elective supply because weren't was products, as specifically so the they that? are things, good product Or sales seeing there traction. new but

Stephen Deitsch

Matt. Yes,

U.S. are mentioned, were products we that X/X couple of of deferred the when last products think probably would that joint for as listen other orthopedic us. the cases or of of you packed the increases their volumes over And cases about in some lost to companies to the I sterile So larger most quarters, packed sterile well. talking their in I say related are as

very lines era. had months our some competing been launched growth number of over and high coming it of on are large new last just products we've And with levels the So a packed. out that the happens have these we've hip sterile with of knee space unusual that companies manufacturing post-COVID XX of XX, that

So maintaining packed. has lost, not might element a big we relationships it. we done physicians a physicians. loss moved to but with they're deferred call certainly a that been products cases, think the selling other nice really don't you and of cases. that's maintained out in particular may some have or job of We've sterile I They get relationships product if

supply those the looking XQ to So XQ. forward forward. in improvements started to into and moving products we're We've of see

an certain the there's and completing sterile we so can customers are the into just number out the product using element just beyond record new packed added beyond reps the that But waiting that, it's Paragon components or of of field for today. get on we've kits that also that

Matthew O'Brien

Got it.

my question, together. got two I'll ask it, but second I'll So parts them it's to ask

largely think into 'XX, do it Or this that's you expect to you behind issue, supply the - exiting you behind QX? So be more you? largely is have

where aggressive reps, spending And you think investment are. to investment? was extra more from really that's it an not medical get $X being drive that top said I Was you more advertising? just pushback not that was know PXX in gets then that alone, QX, that more or for made, that? already I enough Because education? that million Where the you enough, pushed to line area back some than Was investors

Stephen Deitsch

relief won't normal exit think we'll by we Yes. with We be Starting some on next XQ, back time this the quarters. the likely already to We've chain. over better be we seen will we supply. with the much two product exiting get that in supply sterilized pretty sync back but year, the until in XQ, but

but upon before. in mentioned have out it see know - the and think started for. had headwinds the to it's I here as to improve. to based So from it's we we delivery going commitments improve We earlier, these going have just We second quarter, we peak schedules

So that's supply regarding your question. chain

expansion. medical a bringing and of referring we for of to to structure, folks of And new respect number to revenue with older investments - there really reasonable and out plus costs. sales to us That's I you're in investments, a take some period just our not onetime then looking the continued education that million there really of directors are senior to directors what terms in and the right, has made our folks, in enhancements folks and was force been We presidents, in $XXX going in vice some time. transitioning believe organizational

movement to our faster accelerate the for into costs. So some some approved headhunter some money getting initiatives Union. relating to transition of some we costs, spent EU And products also then MDR European

of are well setting number that growth. a for continued us investments So

Matthew O'Brien

you,. Thank it. Got

Operator

Neil will Riley. Chatterji come from with B. next Your question

Your open. line is

Neil Chatterji

taking said I for say I want the just the just producing think were XXX up - to force. you Thanks questions. to guys. reps. on Hi, you Maybe sales

Just further one, kind expansion? of on of quarter the benefit for kind kind sales kind curious, any just And productivity of half. of and ramp plans second then force in that the in the

Albert DaCosta

And excited new technology, has off I'll gone for force of out out there. see been thanks launch And we doing? start you are sales we've How building saying the really I our our folks piece by since with momentum Yes. some of think the with each public. question. fantastic

sales conversations both but a inspired attending experience. lot surgeons some have And really great it's that might with medical of so inspired reps education, it's

to So we want comment good have And productivity? there. on maybe, Steve, really bit the little do momentum you continue a to a

Stephen Deitsch

number Yes. it's it's No, the exactly right, reps. and of

the at that want we we're the reps, during continue the same Paragon XX% we're continue a - productivity growing We to inbound is increase get particularly number as get reps expand. a who of qualified the that carry from our by well. quarter lot increase the continue of But lot productivity of time, producing when proud to interest folks to which We very to able we're inbound bag. to interest, of of

Because the a to are XX, has when that equation year-over-year bringing more XX% the statistics, newer revenue adding despite Paragon per you we put down and natural of into it reps impact reps. rep it increased still more

us. growth doing both So and really are levers well for intact

Neil Chatterji

just one And Great. quick follow-up.

the you training headquarters. of did kind at your AOFAS had held resident notice I So

Just kind of generation? on how kind focused next fellow and is of much training kind of of more maybe of your that kind curious, resident just generally,

Albert DaCosta

of excited I here a the the building, really industry would success for that the a see for pillars pretty to and AOFAS to amazing one utilize were in in do Yes. support Paragon. experience, future. way. and some their been incoming built awesome we it's say It's to for able lot use the education. to and hope be of that And pretty of was medical center facility to really honestly, kind for We've of it's our finally residents get of to the we more of facility to key

app, career can the think their it of really pretty one residents, mobile at a you this have fellows, variety into that's supporting really whatever to tell of backyard for and nice folks app bring of interests education have the wide every really And their I of important can tailor been are. attendings. can to I their stage and where We come their is people us. we we having is really the that can mobile aspects

get to their people ability stages has the of to mobile really career. different our the So app all facilitated at

Neil Chatterji

for it That's me. Thanks.

Albert DaCosta

Thanks.

Operator

Dave Securities. with JMP Turkaly next Your from will question come

open. line Your is

Dave Turkaly

Sequentially, share it's uneven look I we I be as you something even the at rep you think it? a take like in XXXX? this little with maybe to a to it's terms want And have question three. a going at that do that year-over-year. again, in think number But might was wondering, Just I appreciate us year, a or how you where do they're could if of you plan

Stephen Deitsch

of Dave? In you producing went... Sorry, terms reps,

Dave Turkaly

Sorry, last talking about XXX was reps quarter. the from yes. I

I of had the I an the might trying that and wind by up where XXX, end of get so to think idea year. I just was

Albert DaCosta

That's a had. less than little what we

Stephen Deitsch

that it year, said don't linear by really time. quarter We the themselves talked perfectly double always be won't we have And because we haven't sometimes, by over or to number about expect way. specifics that that present but opportunities

have the we we see As come. productivity, they them And a seasonality lot particularly perspective, opportunity add quarter. take it certainly more to in the fourth reps, we from whenever a

So number reps producing would reps the the we expect terms as rep our in of higher become definition that productive go of aren't more producing fourth in to who quarter.

it number is forward, time. we as double that to keep So expect and growing over to going we move

Dave Turkaly

Got sort of it. initiatives. And enabling then your technology

in I'm there's share or expected in that curious any have half to you've those update think if you'd just I areas. said anything of back tools, to this planning pre-op there like you the year. commercial sometime

Albert DaCosta

expecting We're introduction. limited what this of Disior later is of excited really right. year modules about the was that. That one We're to pretty first of have a launch the

internal process. utilizing previous It's that very calls, really mentioned we've we of As effective certain that. on aspects development in sped up technology been our

year, expecting of what the into a we the later year, mean. really really tool been first you of will early that tool representation one since So are but us think day as to modules X, great I that a give could market very useful introduce for next it's this

generally speaking, improve just feel significant I've most patients to be XX really and think of to really the surgeons the and initiative SMART one said give visibility like before, the postoperatively. I deformity, could we planning outcomes the this tracking even for And overall, opportunities

a got about around we've lot pretty that So still we're energy what could of that, and excited mean.

Dave Turkaly

Thank Great. you.

Operator

Kyle Rose Your comes next from question Canaccord. with

is line open. Your

Kyle Rose

you the Great. Thank taking for question.

about on about thing wanted first we really half the when the margins, but margin been through has gross to talk I one Strong of year lot a So gross line. the asked, is particularly second lead the there's sort with the when 'XX. times, first then 'XX relative to of half normally, increased supply increasing chain hear And and things half challenges associated some always cost consider we that.

how think calling there margins about we of how guess I just year? to through half Or we should year? out understand be the I'm gross thinking second trying of them that we the the that Is should is about first should be there? through anything half So really the

Stephen Deitsch

about Kyle, thanks. our consistent have XX%-plus And an of as an about that, and we business, continued think the we've been things to in pretty gross above margin perform one saying reflects is the for. the and think range, XX% selling value them procuring them of or that really to the our price and we're it XX% for we we're which price getting products for business

terms this of procurement We at any haven't actual time the seen significant impact in point cost in year-over-year.

team has on the managing would job just that today. we sheet Our more and some good products. have We carrying done just costs normally are we of have balance extra given times. our than is inventory longer a Where supply valid lead the products that. terrific all additional buying We're have

and that expect, forward, won't these we that of be work of inventory to decrease, field orders, more complete further, get them as and to as we into lead the level replenish drive a we'll we existing - back this back we that to days inventory more on as able where then get sets and expect hand. revenue. move also had normalized out back So through sets And times we we've

future the and of so as the sets. also more And And move inventory we to will have down. it that come those revenue expect in we complete balance benefit forward

manage supply last And than model have quarters. we So that right is margins. right our way products do products the can we if the potentially to gross our well I chain on get at to pricing think, to several we continue price, XX%, thereabouts or the of like do and our the better

Kyle Rose

to Great. I'd two love get just Okay. And products an update then on.

force just investment. innovative being putting could about wonder those talk spend as soft You both received adding. how tissue new made a products physicians big focus growing the you're ankle I are by some if as well big sales a the out as total on of well the all you as

Just of would kind helpful. the there overall be growth

Albert DaCosta

question, would Thanks or couple plating really time, Kyle. ankle we of nail XXXX, around ankle our right launched tell in fusion addition arena, ankle. whether - the I since we fusion ankle to for the you, it's key and really honestly, products Yes. COVID ankle total our a in

We in of pretty also launched has of significant Fix had year the to a the products category some crushing pretty the early market our And Those rest our last products the soft are portfolio portfolio. have it. of The Ex tissue couple in and powerful. our that been effect awesome. reception complementary - been has

around So education. of inspiring we're those from great seeing products. lot conversation a It's momentum of a lot medical

So be the more there. hot pretty are this soft I that year. complementary. a a pretty couple already products going And We've think also this tissue we're year, add of launched to to key going demand is products couple

momentum the for only So seeing of those the is in and that, kind launched consistent what But projects got That's story over consistent, generate. ever. as pipeline products well addition we've excited actively XX being developed. well. as about not we're moving forward we're as our strong It's really PXX. to We've

excited my inspiring It that's think well. gets and every at us spot. day, here I sweet XX Paragon it's me as So really

Stephen Deitsch

that, to mentioned, they I sterile products that would Kyle, that packaged. Albert those of are number add it's a just Steve. And

for products, a faster lot working meet demand just we those in goods intense It's to the it So that out of into so packaged like sterile and we're demand come of get to of have. can to we get would more products a more of in back we field. level the those

Kyle Rose

questions. very taking the you thank for much Well, Great.

Stephen Deitsch

You got it. you. Thank

Operator

Stephens George comes next Sellers with from Your Inc. question

line is Your open.

George Sellers

our questions. relative I but repeating And something if to I've jumping as asked. that. already little that's on Hi. calls been around for revenue. a apologize This missed I bit, apologize a international and a was taking I the expectations dig between I'm if international bit But in for wanted strong been so to really quarter little the well. Thanks I -

if really what just the back you international. devices So driving that in expectations? and Any some on some color layers were curious additional could us give subsegments specific there peel was or outperformance outperforming

Stephen Deitsch

that say to key would a being lot been of Steve. you that for have markets. tell over months investments it's I would of the some key the markets in last some George, XX made I new us, it's XX culmination in

I terms believe we in revenue. second mentioned total dollars of quarter had a record So I business, U.K. earlier, of our

well Our business very performed again. Australian foot

are working our markets, challenges and those And energy problems of we've of of to - packed markets many number very We've sterile our headwinds, some despite where a augmented and focused two ways, teams. added legacy in on the lot people of talented a and also new been the that some the core also been helped. and kits we've to over through more we've able get that's products international

really Spain well for going. really that us just getting We some have are and like markets new also done have

the of existing in Africa, but and the Australia emerging Germany growth in some addition South Italy. drivers and U.K. X, to opportunities Spain in lots includes and big which So also

increasingly contribute more expect to forward. We move as we

George Sellers

earlier, context. that into I growth. but the half and to be that helpful assume apologize the to a relative second Is there's puts a seems the guidance, some bit this terms going the half And first in that? really That's there. maybe Okay. of and missed if sort to again, of Or curious I'm I guidance in slowdown predominantly going then seasonality? takes of of what's just what the on

Stephen Deitsch

of it's George, couple a Yes, things.

seasonality. mentioned You

had year seasonality. a I we've first think is this normal the

when less to compared quarter. have procedures procedures just year generally and first higher Omicron-impacted last levels XQ two as we of coming had So out an of

So that's one element.

growth billing days XX% of last comp the the year. the this so year and That's two in in quarter similar the in a fourth XX% in our And year quarter - year, also toughest have of days is last quarter. third candidly the we in billing third just element less Another our number U.S. XQ quarter. growth

a lose little there. you So bit growth of

started then in turning that full And on year, U.S. chain I economic prudent the to to see but incorporating guidance continued on to and and the just think related the for in environment our also be the in uncertainties we're supply uncertainties the issues the July, improvements we've around just the corner world.

So on that's the the thinking guidance.

George Sellers

appreciate helpful. you for time. my I the Okay, That's really it. questions. that's all Thank

Stephen Deitsch

George. You it Thanks. got

Operator

This closing concludes Paragon to hand XX's call second the now quarter XXXX Albert back remarks. Q&A. earnings call I and for over will

Albert DaCosta

Thank to We in Growth August industry investor of Genuity day. seeing today. Annual including look great and the you time you future again Canaccord conferences, for X. week at forward Have at your Conference Boston next on a many

Operator

This concludes conference today's call.

may disconnect. You now

Paragon 28 (FNA) 3 Aug 232023 Q2 Earnings call transcript