FNA - Earnings call transcript Q3 2024

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Operator

Thank you all for joining. I would like to welcome you all to the Paragon 28 Third Quarter 2024 Earnings Conference Call [Operator Instructions].

As a reminder, this call is being recorded for replay purposes. I would now like to hand the call over to your host today, Mr. Matthew Brinkman, SVP of Strategy and Investor Relations. Mr. ahead. go please Brinkman,

Matt Brinckman

and thank results joining on and DaCosta, Chain Executive are and and Financial Quarter of EVP today's XX's XXXX Albert Supply Officer; Chief and financial earnings Chairman Chahine, you afternoon, Chief Paragon Officer for Operations. Third call Chadi Good call. Presenting

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

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

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

the will to over will growth, this most Albert. net the are today. turn press reported income, flow adjusted EBITDA, comparable in and and non-GAAP with issued revenue respectively, financial During And now cash operating to I from free activities we refer call reconciliation financial GAAP earlier presentation, net cash release growth. contained that, our revenue constant the to measures A of currency measures, net

Albert DaCosta

surgeon year to for to effort, ensure Third worldwide call. are a a make help PXX's most I as their joining am afternoon, by of a XXXX marking company, tremendous pivotal in are to there To Good XX and launches the Matt. year-to-date, customers, been impact I Thanks of we of XX inspired their delivering progress their been has our foot patients always commitment you want This for best-in-class Paragon ankle. incredible XXXX collective continuing deep earnings able for demonstrates to the improve for dedication. we and the grateful and surgeons year-to-date. was XX,XXX commitment public transformation. has years and our and period raising truly and to in journey truly team Quarter with our solutions bar I continued start, lives one to over the which the am Thanks, us our patients for thank EXX as to thank company.

Our quarter every innovation grow put and and have us since on execution continued sustainable on since the to well we growth. able twice are And our inception. trajectory efficiency now quickly company's the is profitable a we in market focus ramping up over really going been why rate for public commercial and operational XXXX in to

positioned we consistent combined well. momentum Our with have exceptionally operational the driving excellence Paragon has in growth,

$XX.X record performance. continue the third momentum of product of our had a XX.X% rate recent have the currency foot We Now reported constant Global turning across growth. third revenue growth the 'XX representing broader portfolio million, our ankle quarter from quarter significant launches. for was market twice over our XX.X% and and at to and strong to

representing of million, tailwind third had to a compared the points for U.S. We approximately this of reported increase the third surgeon the representing was 'XX. growth. X the of in at X% basis Looking U.S. Revenue $XX.X quarter, XXX extra in active the billing day quarter the XX.X% We X,XXX quarter finished quarter quarter. contributing 'XX business with performance. customers,

across and saw our our by rep XX.X% in Over productivity to base. increased rep sales X% producing the we reps U.S. same time XXX roster increase period, a

the all Spain, quarter representing revenue our be in was our South Canada have to million, markets geographies, product International top-line be driven driven our years. Across international of where growth. constant by Australia, growth expansion made our market core continues reported Third XX.X% portfolio sales and U.K., by XX.X% currency $XX.X performance Africa, we in continues to recent innovative focused dedicated delivered investments by and force.

see As in in Those for quarter. abated steady our of trends products. the our previous continue saw some choppiness quarter, experienced sales the noted during and earnings we later third degree we call, fluctuations we our entering to demand

the launches am care. highly to recent an I done product overstate cannot to profitable XX offers deliver few and continuously strategic to to and updates launches balanced several our now standard markets, of development demand. incredible end recent turn cases sometimes the ankle of in believe from market, to novel XX growth changing both preference were surgeon And such I I every including from patient done job receive team achieving portfolio. portfolio on the excited outcomes. we quality high-growth hour this are shifts company continue how with day, I we that foot We updates ankle and pleased new we've demonstrate for team's and module. are long customers, key ability products our term to well despite positioned product see I PXX customers many or incredibly SMART our meaningful deliver date, surgeon see and variety tremendous the and so options sustainable, a mission over stands product Our really results our improve surgeon a products with year. opportunity and our am will innovating growing these patient XXXX with out market of enabling products bringing to to growth. wide pace We've in to our an a first at and and our as sales foot

X new we our products. launched reminder, we through first our last SMART call, in a XX products And module. earnings October, As XX launched including

option There trauma is our to excitement less the start fractures. it's and ankle products. to of for soft lot that Phantom tissue to System and product a first was broader Nail designed The the for ankle also surgeons complementary quarter, treating highly Fibula offer fourth a invasive

quarter. second for they was go are each the stem which implant the has through release, strong board APEX expect patients, a our foundation us than detail, product I drivers overwhelmingly across range our flow. performance in short moving for recent us cater and expense our focus share those We our ankle Chadi position too growth efficiency our system, quarter's launched The from plan recently setting been on progressing expected complex in market year we We positive allows so a anatomy. Right-Angle and for this summary, products our in our many benchmarks also third cash and remain operating as and great better key this total our details we of and perspective, growth adoption in and pivotal great allocation market. the to believe in my call. but earnings efficiency sharpening The specific on while There to total new with limited implant improvement to launch year short ankle but broader pleased will say our tibia laser-focused specifically forward. portfolio momentum are and tibia highlighted replacement resulted company in ankle far substantial launches this sustainable Drill from to future. a stem for The our to from am pleased free and reps and on momentarily, launched with both products surgeons In will the to feedback alike. our we is are capital last put drive operational are be the XD

and momentum incredible now, tracking plans. against and operational excellence. more We believe have ever, growth is for our we well long-term key efficiency new our operational We driven than PXX are sustainable by positioned products, that

in in to I confident say well to are critical over a our every results are to an to to organization, this partner our particular. meaningful has our it me But ability His shareholder able I in Chadi. before on drive dollar will to We incredible do, leadership has the quarter. I team we as want impact we aligned are and now Chadi he been very had execute turn share with that believe has to and value been addition our drive a ability invested. to and highly

All the is We Chadi, to floor him. have right, are very happy yours.

Chadi Chahine

Albert, very kind much words. your thank you for

beyond operational by in growth a investment to that PXX and positivity in driving structure. XXXX to the Europe in sales been including and strong Last Australia, stakeholders and immerse earnings of myself progress. Paragon improving to and positivity EBITDA continuing foot are, in we the with market I've and maintaining me cash to our on made last surgeon to North many facet our Here deliver a sales had mission little optimizing has operational our innovation ankle. and every see in XX strong achieve representatives, since to customers. call, efficiency focus business in top days said our we've way. suppliers cost across sustainable continuously quarter, above inspired a force every and believe are top-line having priorities opportunity dedication XXXX and foundation success to the team's America, it's XX teammates, for I we our flow excellence disciplined met company, From the clear have and over I significant initiatives,

quarter we third pacing our are compared expectations. of our As to seen ahead results, in schedule

the While continue optimization leverage to we in on there is our confident still P&L. drive the ability in to to actions to needed execute do, are cost further work

this priorities beginning, for entire speak towards We creating these about long-term the and are making goes all profitable position position, delivering remain strengthening company delivering on value know I for ensure to dollar I progress market say growth. that excited to the solutions I'm stakeholders. just operational committed when for we and are working and invested our the the we is every company to innovative ultimately

the XXXX. Now the P&L. was point quarter turning sequential the a in of XX% of rest quarter to the compared basis Gross XX XX.X%, for second decrease margin to

at XX% several initiatives actions year levels to improvement, in and gross pre-COVID drive including overall will inventory place margin expect stabilize XXXX legacy We reduce the SKUs full around pricing to for have to optimization. of of and

we In over tailwind high-cost as inventory. through time addition, we sell expect a

to compared to was second operating represents included expense compared third XX.X% XXX our million, basis a revenue the of OpEx improvement severance expense period in quarter nonrecurring to XXX headwind prior non-recurring point and point XXX total $XXX,XXX $XX.X costs, improvement basis representing quarter. point for basis sequentially. the the year of This net Operating of a a the quarter and quarter XXXX. sequential Third year-over-year

made base. proud cost size improvement and these We our the in are we of the have results to right quarter

restructuring to of a $X.X certain decrease timing lower by our will improvement expense investment million quarter or services, our of 'XX fourth million increased the XX% was see the the in increase first program. $X.X consulting effect XXXX. of quarter development fourth compared third expense or $X.X of implementation and to into by to full to of the partially in offset expect in R&D was by the was to X.X% quarter the year-over-year. of The ahead, million of following the driven a or 'XX. was we the revenue quarter personnel. driven Furthermore, XX.X% Looking activity be million and quarter in SG&A million, the initiatives quarter shift compared cost-saving outsourced where $X.X full revenue regulatory implementation $XX

the year-over-year with offset the prior in expense partially over net costs remediation and an to professional of These basis quarter services will compared the sequential quarter restatement and quarter $X.X in we is positive since quarter. primarily to to XX.X% October an related it's we in XXXX. year growth decrease expect second of quarters. SG&A cost for an was of of are which by marks leverage. plans to the SG&A XXXX for million improvement $XXX,XXX point We stated This strong and third of $X.X operating XXXX delivering increased the to and increase over As XXX the a priorities announced XXXX. expense inflection of profit first the few variable our the by of adjusted company last improved improvement Adjusted improved quickly revenue, a that program drive and EBITDA commission of restructuring compared percentage points IPO a were on third a million also The indicator the believe was revenue next compared plan, quarter associated period. driven company increase to optimization full our EBITDA

flow, the compared of XXXX. cash kit $X.X it's our a Now we to Free improved to turning closer quarter XXXX cash in drive million XX.X% CapEx days capital. third reduce the XX look the strong earnings compared a our for seen third XXXX. net ended and and net driven XX deployment to days a at our million, third use capital, a cash improvement, by improvements. since flow in sales free $XX.X step-up ability quarter use optimize working flow Taking and major was to free instrument million working with Starting driver improvement of quarter marking Sequentially, days was XXXX. we the at the of quarter The of the third have in flow liquidity. second $XX.X of quarter cash XX.X% our company solid compared to of outstanding, a of

quarter the we outstanding, XXXX. ended third Looking days quarter the third days in to at at XXX compared days XXX of payable

expense the net existing XXX third consisting third and position with to and compared ended to at capital cash have also we comfortable demonstrate conviction the with we days to operating million sheet million in our strong available on of and enough The to time, XXXX. under balance Lastly, add our XXXX cash quarter and credit cash At sizable improvement our fund operations. capital $XX.X balance inventory quarter while balance cost liquidity, the effectively capital We ability our ended on are working of growth quarter managing our of the our XXX facility. current through sheet structure. this $XX $XX.X structure inventory across million of the of and days days total of outstanding, third on

Now revenue outlook. to future turning and guidance

operational our of Furthermore, representing continued XX.X% increasing $XXX guidance million, current rates. sequentially the from net expect XX.X% earnings flow for cash are now net foreign revenue quarter. reporting in free improved we deliver revenue to We year on to XXXX of to and expect exchange ranging at focus fourth full $XXX the growth and excellence million

the foot necessary improve highly growth. third Looking remain confident cash. be the positive to ahead operations, free and we to outpace a And market several our record off in quarter, XXXX. preserve to cash aspects optimize costs in are we coming with the major XXXX at taking product priorities broader quarter, significant we demonstrated track all the and adjusted We'll to company manage flow communicated have in of XXXX, Last we be positive ankle operational in as and step the year X and strategy. commercial EBITDA have launches

to As to strategy, you for ability our well an cash need do capital including capital with goals. from saw balance are those current deliver structure, achieve our we our comfortable our QX we executing to operational on Considering performance, against our and not ahead and dilutive see execute are of incremental schedule our priorities.

session. the Q&A We have will may our we please? now start first Operator, question,

Operator

We on Instructions] [Operator with Matthew Sandler have Piper O'Brien the line.

Matthew O'Brien

quarter. Phil on is the Congrats Matt. for This on

low ankle your do still called end. thoughts QX? on in the And continue call? you especially the guidance the QX? the this starters, and bit For by trend to taken market to into for there on Curious Was foot fared than you the how was softness today, QX that more a year expect beat out up how hear

Albert DaCosta

Thanks for is This the Phil. question, Albert.

starters, think some I companies that the For characterizing of softness. as were other

of or week-to-week that, called us. being end some was it to that any going choppiness. us the that, to that's fluctuation. of has we segment of a It into wasn't reason and momentum QX more product more ours really mostly And think the happy a confined the abated optimistic just bit I say QX region. little behind at a particular I'm

Matthew O'Brien

won't market normalized that I I growth, understand these us somewhere call it, say to and the XX% And Xx products, market? can for all Xx the just expectation year-to-date, historic this X%? rest still is given here. your And for much more and XXXX, is have guess level That's foot the then belief in probably grow your the Paragon to But ankle setting you helpful. of

Albert DaCosta

Yes, that's a question. great

remind company one a us to that's market for is exciting foot I complication still innovative one, that it just Paragon high just And like you meet really and to positioned ankle with needs because those the really So for technology rates. positions want there's really perfectly.

We a has energy optimistic going think, still the of nice has have this that lot market of I'm most coupled So I is to one us. for growth. runway really 'XX, around historically, a should with exciting years really for to some for launches so excitement it, had XX more nice of XXXX, I but product Paragon of say launched so This nice year carried going far think introductions. and is in product lot 'XX, that a momentum for us real meaningful monumental. year-to-year beyond. be even was trajectory in introductions product I driver XX 'XX has year-to-date a of

really on goes, in exciting offering earnings call 'XX. an bit as So excited a about 'XX be XXXX the going commenting to think question on far our But I QX February. year. at We'll be little be your as is We'll information more year.

Operator

Caitlin have Cronin with We question now next from Canaccord. the

Caitlin Cronin

Congrats on quarter. great a

you see on half? your color So cost you being the in the these $X savings? savings you rest more provide for of OpEx restructuring talked million in kind about whole will can full effect Any annualized second expect where of you QX And the where expect still of program. you the do the

Chadi Chahine

on savings to The we've this $X is when in And what about we our complete. like largely you in where and right the announced annualized force, that onetime spoke Caitlin. Chadi. streamline you, announced to basis. non-recurring this reduction is the of we And was it about an this had I processes. Really, and Thank was million we've is is program This spoken purpose restructuring look way August. it this would organization, in we somewhat a at size the

the QX it And in of our of that funds And a can that, some and that I and plan from surgeon that areas we our supporting to operating to allocate the a We be overall is is an something the expect our that investments that there make share sure for sure in happen most will said view to our I'm budgeting -- portion driving of optimization. and right that starting, patients. and patients. is XXXX. Having serving point drive phasing our surgeon you is are customers this effort this ongoing customers areas in with surgeon with in cost completed another make zero-based

Caitlin Cronin

quarter positivity in the you expectations in as And talked cadence can and quarterly quarter about EBITDA basis forward XXXX talked it XXXX? having you about and to talk great. And That's a the also that quarter positivity achieve well. quarterly the your this just EBITDA QX, last expectations for to of this on hit going

Chadi Chahine

Sure.

to the speak lot 'XX expenses positive comes EBITDA significant our second with about So delivered XXXX, it deliverables happening in in EBITDA happy said Having that, are half. and better as to in you and very expect XXXX. we expect incrementally really year-on-year versus year we when we let's in XXXX that in tend I first In where the are have be and regards to are of what QX place half QX. -- actions well we first. we our versus seasonal, taking to this be Really, improvement of market is know, the And ongoing. to a

Operator

the & Mike line. with on have Needham Matson now Co. We

Michael Matson

the 'XX. assumption? ones of from launch pretty imagine impact the launched guess, you carries the you second of that a I I XXXX, think still about new particularly those in benefit, would how that maybe of into that Is in products more that 'XX? a the through were I all big reasonable given should how get just did half we mean first,

Albert DaCosta

new time product it. Yes. for that to to ramp-up a also hospitals our It a with Thanks open takes have acquainted Craig. year takes while the surgeons get typically familiar of technology. and little technology X-month a about launches to to reps get our sales some bringing the little a the for period. The bit question, to of with become It

severe launched an expectations, Nail, particular, And Those beyond been This It's piece so QX. launched, the we've Fibula in which year In QX, in franchise about of patients year, the for excited. the even and launched October, in we also speaking, we've ones ramp-up generally some lag our pretty in our stem are a we ankle and phase. to a products ones we really real tibia QX deformities. see start is but to off our overperformed and critical short with the complement products expectations. a incredible total the component, more the

question, for before, ones boost going answer this in some the maybe like yes, the to more monumental been, so has energy 'XX, But of real expect So for second the I pretty into half to in your been we'd the see mentioned year. has products.

excited So that 'XX. what we're about for means

Michael Matson

the it. just balance Got Okay. sheet. And then on one

by came it So it see standards. as inventory days. the to pretty it's I good was industry did still But high, as the orthopedic that down much guess, inventory

orthopedics what normal So guess like more kind appropriate a are down Paragon? don't seems of is I to right you know days, doing if get what X-year or for don't but most that the I that's And but. are levels? level level in XXX I know, range, normal not, Is companies to or

Chadi Chahine

reducing right, inventory we expect and not short inventory time I crack, time, is to in to invest that deploy laser-focused on how our manage therefore, the I point the for the and and be I'm and at the the about for need the in our can there as going Having effort question. smart side team going as are this inventory This and capital year-on-year I more the orthopedic is over can we're to XXXX this be have and we is a reduction. what's is inventory much said we All deployment. say is relatively the Thank would a time where levels. to on a and you, continuing in deployment. the going trauma But to on reducing We're caution efficiency our of much and notwithstanding you -- our time not and an in predictive. growth very we improve room for inventory really that you and we company, period because what done it's happy you are take easy in quarter-on-quarter, there And field absolutely it. that orthopedic, we improvement, to some with continue than be more I in focus high levels rest that, XXXX is mentioned, we agree And could of less beyond. into But of usually, need in joints, that, there. to seasonality are

Operator

We now have David JMP. Turkaly with Citizens

David Turkaly

a say go but Albert, I'd get, it's tough one.

mentioned I give X% is rep think might increase you productivity just I color wonder guys you like as And driving any the in in a if quarter. that? to us what

Albert DaCosta

after and the we'll ]maybe has board in with product timing and Thanks, the had new actually on terms bringing talk But Yes. had a some this that [ we've promising year getters of reps been about really pretty hours. year. excellent of we've the of launches

penetrating of the while producing reps same the is of existing think seeing I sales some technology. of base you're expanding we're we're so new this some at our really And time, what with accounts

producing So when to add year. it's lower a they great a come Usually, reps level. it's at been you that been in base,

bringing highlighting on around exciting both for increase. productivity been And so that. productivity product excitement and to pretty the year, again, this fluctuations that see some of and launches in year you new some reps seeing the just It's a

David Turkaly

And then as a follow-up.

could about that there? maybe of you landscape market talk a has percent that the do stem well? as And competitive the just even other curious, think anatomy? Do mentioned You people short you I'm have what complex tibia.

Albert DaCosta

thing we're foreseeable future. comment a more going the building question. and That's point franchise I means before deformities is going we're think is options. those one I'll when grow, considering Yes. out for And of great in say that's This made to our is the that that grow keep into this I've more optionality One total the I to it system. ankle one

look augmenting might present soft to more with patients, patients And for more bit deformity, ankle, they valgus more those tilt that instability. tissue more with in So we the a particular. have for stability in that their in various tend tibia little

because are the we're a not what their patients primary presenting component We're as total with tibia. revision for these really careful to that's so short And calling out call of it stem ankle. some patients

in complex it's so but more ankle helpful of franchise. And just our consideration, entire a really

I can't are presenting the that. down So break of with volume that patients

some is of And this surgeon preference.

tibia. think XX-degree that like environment. drill, And to implant I thing opinion. bone This see this is that is We're Some bit to more the precision franchise. just just complementing also the coupling sorry, going by there. little an the a the one short that, our And access in just an is improve can difficult into keep which surgeons more fixation with and patients that game-changing is really in primary with it's that that get stem instrument our installed to now even harder to with existing way, component or either

Operator

line. with Bijou Craig from of Bank the on America question A

Craig Bijou

again guys hopping stood terms the I quarter comments I of more on just pressure have the this space. foot the this. around of Albert, if ask because guess there some but been you I having calls, I wanted maybe others? in to quarter, of just ankle ask, out it and apologize But than more others of year other so this segments And than market, try already some your from every any know or players some the have the in if been I've touched segments segments of I

the within So your if any that's of for market or just a wanted any how and get in one pressure to segments performed? you're get the portfolio growth? seeing And then your sense sense

Albert DaCosta

the brag, our do what the call foot business maybe we the start, model is so know to has question, ankle call. Thanks And Yes. on that's you're I And would this an To right. around, really focused we area for bouncing jumping for on environment. Craig. really you been entire appreciate a and us humble

means to to us. lot us we particular, diversity market. This a in helps a means those to us but year, business. ankle energy to And surgeons, little for our addressing really the some sub-segments launches. of fluctuations feel a that our there's matter And unusual more all So really space product we're X try around also hearing and in foot when the creating like in diverse of it been has the rationalize what because bit we're

been strong year has for a launching procedures. this example, For pretty both us in X-foot

launched So correction. lot power a there. we've distal MIS for the bunion in console launched a We've environment

launched Bun-Yo-Matic excitement. module, our which a SMART has of XX lot also had We

ankle fractures, of energy incredible that. feel of grown there. the recently, one growing any a lot so it like I more softness related couple then us we We We feel the They and RXFLEX of and sense, any through We in some franchise in technology of a and lot one The soft of products about of the were the there. reception. Fibula were we've repair, week-to-week saying, also an around game-changing It through our Nail, had And fracture segment. key choppiness a like launched we heard had even has RXINFORCE And which growing way a in was competitors talking fluctuation, by market. our to we've pushing particular market. products particularly The couldn't tissue more launched excitement. carefully. looked for we're the we characterize short and sensation

any ankle, We focused like weather really ankle also our types headwinds. foot helped feel and has across of all in model those to and positioned foot us but business spread of of

Craig Bijou

control. It I'll on of initiatives focus this Maybe Obviously, you well. a quarter. saw it. as Got touch big a cash cost improvement flow was your free on

free you're to guess growth cash So can and from ensure free think the to maintain what spend. how I how still top-line also the perspective, question revenue managing maybe ability flow guess, cash picture, doing do while managing you a is I going what about your flow, to And the the going forward? you're that big

for, maybe a of then on think So to as obviously, of how that bit just about years. but perspective we for look little forward even next QX, the couple

Chadi Chahine

Sure, Craig, thank question. you for your

company. this I in quarter XXXX operational key this or about cash tone the is that think because are about the the the the highlighting and positive set really flow not a Albert, XXXX. being P&L question great And about positive in EBITDA last priorities is in in cost,

This priorities, these exceeding not not prepared with but about my is happy really QX. very only are is As rightsizing cost we owners to only looking remarks, at our that inventory also place sure deliverables actions over is on the and also sheet, balance we starting cost to this This but you saw optimization. inventory right-size make is in looking really report delivering we these organization, time. from that at containment. the This and the are putting

receivable, at on to and we addition, our on partner In sure collecting a that them time, make make suppliers, are we time. that we our sure also pay looking are

sure make discussed cash really and company, forward we able at market our capitalizing proved we market, XXXX DNA and in that on positivity rest you position. to I And, especially XX. expect improving delivering Xx is grow want EBITDA to that this in that the are and XXXX QX beyond. continue, Xx when the while Albert the this prospect of So rightly compare Paragon we able, And to and about year-on-year while we going growth the are our and of that also the

Operator

comes question Brandon Your from William Vazquez with Blair. next

Brandon Vazquez

taking can the updates the going That's, of SMART XXXX? long you about course, question. for talk couple of What's for into launch we a we're into of on focus for Albert, XX maybe a to are you Can you XX. been first just What the bit time cases a a just future from start, SMART here. of for you how there? Thank months expect big going? little And about? excited kind going are you any the

Albert DaCosta

We brought that you Brandon, happy call lot that you the some of the technology. thank a of for about earnings last Yeah, on I'm spent really talking time question. it.

best ways it's wanted Look, these hard in to SMART the about of some we the a I I products think The characterize module I'm ability sitting to patients really presenting are a what in exactly you a we've hard that these with, really patient-specific. are of of out that truly XX operating to back, success mapping solution performance, able out go the based the better, it's valuable really the and patient room, see the talk trembling is financial presenting. of that's so focus back, combination go recreate at So on once because and first that fine scale, I feedback what When a gotten. information solution sees really, deformity right? understand that on that, that's with to to you on to one and surgeon to think the see far, then what we're is really but particular. We're mapping here least how that deformities want really

as a Utah. surgeon said, He flying our it, of plane like night. surgeons at out described of a it's One he's

sees tools the of He's and room, of he in operating is a the that some science. use very particular, instrumented. the value XX That's room how SMART we that now. operating You're imperfect in plane fluoroscopy the flying in

really the the patients, that only a on presenting can that these So imaging depending view really confirm to This patient us show of us is that but we've that distorted these the what to ability gives corrected patients. rely foot correct not position to on position to that the there. C-arm, use of it imaging of and imperfect

in is really, X-dimensionally of procedures. way really about, a excited said and be he And to new really used, hadn't I short I thinking it's surgeons that answering Brandon, of the But really that response way strong. that, thought far, that. way. environment to really, can it's we're forefoot about is he So been comforting we because particular, operating it for was and so a has happens perspective it complex that replicate a happy the the that that room, in This improve

Brandon Vazquez

maybe, talking you. Great, finance, and note we're for Chadi, on that maybe you little your bit mentioned a more since

talk several get XX% you remarks sight updating need line models? and our you you progress that bit about of And just gross for to back of next you As prepared are in think look over the plus the gross improvement. here quarters margins, to have up at XXXX does you kind Can milestones to the kind that gave a of appreciate how about I margin? what comments your little as we 'XX

Chadi Chahine

XX%. Really, improve away to Yes. that at way from assume of looking of positivity from Thank the positivity a expect around moved The have the we since move priorities as is and somewhat cash flow floor Brandon. XXXX. I'm into last we we EBITDA quarter, you, our we all this business XX% and

be of the of I and away moving Now this about will for on February negotiation are would purchase where actions like we really, to focus and cost to in our talking XXXX. inventory. our we're of today supplier are incremental, XX% level taking reduce board, But the across from are us we with the the that we

flush P&L. the is to going However, to through take this time

it and at We're looking at looking We reduce adjustments. expense it. our are stabilize and looking to freight inventory our

inventory, by highlighted that aiming in And reduce we've So significant we are are having to effort and our reduce this it prior some time, where our is overnight. adjustment we that. and we we're to product inventory be periods, over buying going what the need actions continued reducing and the this is but improve that it. not These margin to a be we is need but going on taking, way to

Matt Brinckman

further operator, ahead All here. right. up things and If there's no questions, go wrap we'll

on here. So today. thanks, I time for your jumping appreciate you everybody, really

look please day. reach at any you. further many out. great to up. of our you Otherwise, coming our a we concludes questions, forward Thank If have That investor Have you call. conferences future seeing

Albert DaCosta

you. Thank

Operator

call I now all Thank with today's has can XX. confirm Paragon joining call today's concluded. you for

call, from day. and of the You enjoy disconnect please may your now the rest

Paragon 28 (FNA) 12 Nov 242024 Q3 Earnings call transcript