SIEN - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen, and welcome to the Sientra first-quarter 2019 earnings conference call. [Operator instructions] As a reminder, this conference is being recorded. I would like to introduce your host for today's conference, Mr. Neil Bhalodkar. Sir, please go ahead.

Neil Bhalodkar

operator. Thanks, today, meaning statements securities of remarks forward-looking are law. will the within the we our that include considered In United States

to In statements make may your response addition, questions. additional management in forward-looking

forward-looking on management's trends uncertainties or that risks as and Senior to forward-looking have affect no company financial statements. its Forward-looking The the in Form Paul statements report updates and A may are previously current and report those discussion future which filed, Officer, strategy, Chief from expectations call quarterly Officer; and and business annual Chief well the company's on Chairman materially company and the Corporate update projection that, or review faces of company SEC Vice that Executive and the detailed by Strategy. contained obligation is any Chief today. Huiner, call the assumptions statement. may XX-K the estimate, Officer Today Nugent, Sientra's Development With performance. company we Treasurer; events on of the expressed in Jeff. Jeff as I'll operations the based Actual Charlie Little, and on implied to any President or hand with XX-Q undertakes Senior or its in results that Form differ Financial Vice over filed President of Operating

Jeff Nugent

products solid toward today's first-quarter first growth review Thanks, by the quarterly of The Neil. and our results. Sientra's XXXX performance million represents sales in joining a achieved of pleased driven start equates and That growth of segments that $XX.X for afternoon quarter. to both we breast to our net miraDry year-on-year strong consolidated Good you thank I'm objectives. and XX%. XXXX was report in

well-positioned actions our segment coverage result consultants Europe early against products late the in focused year on breast surgery continue XXXX. plastic are regulatory XX% Sientra's to traction we take and consumer In of continue the not FDA to that XXX the in quarter, over we accounts that targeted confident the sales targets. our proud media this category our market continue in strong their market force considering implant these order new to achieving demonstrated conversion execution of $X.X quarters from sales spite being a we placed faced I'm programs. meeting related carried ahead. had the into panel million. this In stayed generated ability grew the that sales year demonstrated in breast factors, extremely momentum I'm to our to headwinds take share, Sientra is March. of year, in to strong an first with are First with from share,

clearly and warranty and both surgeons plastic patients. superior is resonating board-certified clinically industry-leading safety their Our profile supported, with

Our we previously ramp a implant throughout continues from 'XX, have steady breast supply expect we Vesta to guided. build, as and

opportunity, recapture out and share will Our position forward. conversion continued to the improved year, us we customer has which programs, my for going enthusiasm roll these continue supports supply new allowed throughout the

penetration hospital as by teams' market, our in growth expander contract of portfolio, breast these Additionally, in AlloXX, recognition with implants, or demand clinical were tissue advanced XP, we further for products. extra we our product for XX driven in the in continued well an combined as was US our these breast high and as we Further, number and the mid-April, expanders new position to demand regulatory options. a tissue of The of the implant FDA existing expect million approval wins. hospital $XXX profile, our driven development pleased surgeon and by very by strong penetration receive advantages reconstruction fills diligent continued textured for in new both accounts gap over of within adding accounts, smooth XXXX. evidenced approval This deeper new reconstruction to efforts, products, drive important

FDA-approved standard reconstructive Sientra all and board-certified basis panel. part warranty. to board-certified process, effectiveness will the a to weeks product and of has March. has We of Orleans collect the surgeons ASAPS in in comprehensive by as surgeons in to its annual approval enhancements conclusions confirmed consider distribution these finally, since plastic is of the This more patient as a the are the in and extra is patient plastic Sientra an XX-year XXXX. to guided FDA women's the the important want by we be the a few informed Sientra, We the profile late only and to surgeons Aesthetics the difference. breast their limits manufacturer number our to plastic products the than implants. remains Meeting this important high FDA establishing for in breast its third and checklists their FDA for surgeons with feel experience at of women labeling, implants to make surgery. Sientra's implants following about category-leading and Sientra introduce plastic This at held safety week to more implants. data scientific specific was repeatedly the FDA's recommended augmentation we critical us We panel information step confident science, implants consent last during to decision in done decision and quarter. our as select preparing decision that And Nothing a breast launch At their safety, New support well our released so implant to long-term

surgeons has our believe plastic more the competitively in to become targeted expect also miraDry difference strong important like selection to brought in the the increasingly due XXXX, to to international difference international is XX% and million sales one delivered and markets. to able our than quarter. the Sientra compared in switch first We miraDry market between expect seasonality cosmetic this to process. in and fourth safety, to their US share in would conversion Sientra experienced $X.X we both focuses quarters, experience compared to well-positioned a implant net States, the to equipment miraDry our growth this experienced miraDry segments to board miraDry been patients Sientra early force on quarter, see keep the the prior year-ago execute of sales while partially on those markets. I'd As to first the the quarter, in United segment. will factor to increase quarter. on on achieved business results believe which continue Similar We reconstruction businesses, international In to period. a in capital the to prepare proposition leverage of value take update an highly achieving the also stronger the international we typical we provide

States, As remain noninvasive that miraDry's the we particularly United marketing we our increased and increasing treatment. drive initiatives in base, uniquely on focused installed brand sales move in forward proprietary permanent through and XXXX, for awareness

demonstrated end professional. success States much a in some the it the United to the breakout learning engage and initial While XXXX, year with aesthetic was best how user for miraDry of still very

Last consumer on XXXX our year's we it In the most way audience. this No research our direct early the scaled As based profile our test fully the them. to to new off and campaign efforts learnings from year last pilots, Sweat go-to-market and XXXX, reach miraDry branding marketing global and launched target kicked in clarified strategy. and market to we to demographic, reach advertising effective our the and utilized pilots consumer miraDry co-op relates how best patient to initiatives

Facebook, XX are and having by demographic Google We ads social name. begin the team targeted highly now metrics focused million research this to confirmed placing miraDry efforts media others, for cohort including and while leveraging continuing products our identified specifically. track. and Similar in cost-effective, our build to at influencers geared awareness in trafficked to our platforms, targeted procedures, aesthetic people. are encouraged digital successful I'm to Instagram, commercial ask that interest across to other digital miraDry, the was is market This by over

This which traffic was took launched next on driving to the referrals increased website, XXX,XXX in define a is and had our The leads January. high-quality website visits For step our we over million X.X that doctor new across year-ago miraDry under the since our in example, finding website compares installed of traffic, increase as it period. in base.

in We over continued my accountability and proactive is our briefly those of nearly the on increased to focus the sales patient the aspect Further, of the brought Gunhus key the build confidence is entire our of their also taking accounts highest February, call wanted has are Since the miraDry with Manager appointed miraDry and discipline in being a that US testimonials international our have to consultations and indicated effectiveness is transition as in practice regional which working result mention sales in been General reps effort, business. to success leveraging particular XX% driving steps with leadership that physician encouraging. has This of in a so Kirk treatment, number treated other we have are our playbook same his the a internationally calling I approach, with closely to to category. improve continues well. directors described is business XX%, with significant among market oversee similar that of capital of that aesthetics stories miraDry miraDry we while he sales models. who our worked have as which critical, the is very utilizing is efforts. well He satisfaction, And capital progress last which which across

we clearly less and odor that miraDry a treatment quarter on I bothered In and odor. also a miraDry life-changing the become the going we GM to market. consumers only impact, to than progress Kirk underpenetrated by significant has been treatment solution making and forward. sweat sweat While an new conclusion, sweat highly other months, to strategies was approved at I'll well-positioned eliminates for are team to what is practices, which over for has case executing Compared right advantage his capitalize an driver know revenue products, a our the for to the will hand consumable practices. believe that miraDry is year and marketing expect he's to and physicians' miraDry driver incremental of at provides role by real margin quarter, this the permanent greater large, that all our in develop is be three I continue level. discuss sales and detail. beyond. the United of With results initiatives impact business well the sales, installed financial The growing demonstrating Sientra in high-volume have to growth this higher and a Paul, a first-quarter patient Paul? as who increasing studies increased I the significant more call base in lifetime States, value miraDry to Sientra's of as continue that, expect

Paul Little

Jeff. you, Thank

all EBITDA, our financial adjusted As metrics a reported of of reminder, with GAAP US a are basis. the exception on

Additionally, stock-based define referencing which adjusted an before depreciation, amortization, margin, we compensation. continue interest, adjustments will fair EBITDA tax, we as and value earnings

noncash non-GAAP to Again, Specifically, and reconciliation items items GAAP removing and/or and refer EBITDA XXXX. XX-Q of to net we nonrecurring GAAP release were our QX please $XX.X increase its information, full net Consolidated compared non-GAAP total this adjusted earnings measure. $XX.X period of supplemental for in million on an XX%, for tables of sales financial counterpart. for a are for and million, to sales 'XX same the

tissue strong net compared 'XX. by totaled continued primarily performance million our driven to traction Within quarter the portfolio, of our increase, OPUS for was sales segment, and the a $X.X sales. X increase for bioCorneum of the breast million partially XX% by offset implant quarter, The expander re-launch $X.X

million segment and the XX.X% between equivalents for of of 'XX. of driven in gross the marketing, sales, stock-based and was reflecting $X.X in within compared in to million, and Operating the in mix in driven capital QX XX, for fees $XX.X at operating a investment XXXX, versus as year-ago Gross $XX.X by and loss with of both profit compared million were XXXX. 'XX The XX% million, million, geographic million $X.X year-ago expenses $XX compared commercial million initiatives. or in miraDry in $XX.X $XX sales products increased were well by year-over-year Sientra's associated representing a increased compared was the Changes of as historically loss in miraDry. quarter period. were in mix Cash miraDry, for a or same to and one-time sales, profit for Our to a X expenses gross cash is segments. March margin achieved QX EBITDA $XX consumable XX, investments growth was of overall consolidated period XXXX. breast the 'XX, higher cash in $X.X compared Adjusted to period, burn XX.X% sales QX Net as consulting of compensation $XX.X million, the net quarter. first higher business December increase, million, to million quarter 'XX

cash the the million, milestone potential of for $XX payments. However, remainder miraDry includes year which burn we expect of

afternoon In addition, Sientra aggregated SEC $XXX amount a with the the shelf shelf it to This an segments. review combined for afternoon. million. our business provides release building filed as continue for strategic of registration in will this we introduced various plan our statement alternatives up necessary with company considers to earnings capital-raising outlook now executing and XXXX this I sales which our flexibility the

to $XX compared $XX we XX%, range to XXXX, the total expect million XXXX. of $XX net XX% which million to of of For growth sales revenue in million, represents in

driven continued sales expect million at another accounts. existing both year recapture hospital of segment for and share to our new implants million, by of growth gel expander by OPUS $XX we tissue portfolio products, accounts increased driven For breast strong of and penetration $XX our of net

For segment activation $XX expect for turn our brand miraDry, $XX market take investments and Jeff in driven to million, remarks. now quarters. of back sales continue net growth hold we internationally closing acceleration equipment the by coming in and sales capital over as million US solid final to awareness to call the I'll of

Jeff Nugent

remain global very in aesthetic scalable outlook I closing, as diversified In a Paul. our company. Thanks, long-term confident fully

and XXXX, shareholders. the focus strategies strong executing intently For for to drive commercial deliver value our on balance we will of growth on our

supply, I'm to the the safety focus us position now the of will us, share excited implant our superior XXXX implants, product of market in continued all the With that panel behind improvement to breast turn now new the launches our recapture and of OPUS FDA which beyond. and profile

placements and committed team remains showing awareness driving I'll position. where and hard and the high-growth, addition to leadership to As utilization large, Q&A. to global we a to in miraDry, thank building turn underpenetrated day-out now forward for our call entire are our in I very aesthetics want over capital work objectives highly across the traction exceed their market for in this to real base. meet We increased to very opportunity day-in, drive talented look a dedication. establishing diversified installed forward

Operator

Jon Thank Block line is with instructions] question first you. [Operator to going Stifel. the Our come from of

ahead. go Your line is Please open.

Jon Block

go side Hey, I'll business. afternoon Two guys. Nice the great. quarter. Thanks and me, good each for one of on

the Jeff, to caused in start guess marketplace. quarter last a I market, ongoing First, breast consultations sort noise due called a the of you sort in out implant say, pause, slowdown industry to some of let's which of the

And So and removed the it, follow-up field. the hesitancy now, go panel. some here We're a the with patient thaw starting Is of to call what hearing change you're in miraDry. in I'll from month US? then curious on that a

Jeff Nugent

in has one safety which more was confident, we it, now the implants, particularly means augmentation of procedures. that a are as brand been actions And Europe, this this a associated in of it's It's with patients we've to more to has predominantly earlier attention between to then from that quarter educated, is one risk to Sure. have implant. softness, reconstruction want and been less as there primary increased textured transition, been both primarily a becoming related manufacturers, by very smooth been the you of and that media textured that whatever concerning the clear Part discussed, Thanks, as ALCL. call they've concerned, issues, the from Jon. addressed great physicians question what tangible seen safety and and is the related both in because pause, well

Sientra recapture us in driven very previous a of that has users, year to headwinds. net-net the aggressive start strong to question. of those addition your spite answers a in I that So to hope

Jon Block

miraDry sales months. guess, It maybe, nine XX% certainly deceleration I how the an implied to in guys where, miraDry, to midpoint certainly And next next this more for to in you just the But Thanks. for the large Paul, very over term call the see you for are Jeff. did, implies growth implied And believe there I helpful. I year. quantify, before just guidance nine But was the the if really XX% about opportunity a quarter's this arguably, rate it, growth pivot, importantly, I'll talk growth up stepped know can that to maybe specific the miraDry with and number last for driver's seat longer technology. go you obviously, months. deceleration is, the

Jeff Nugent

Jon, seen combination which seasonality in have Well, is think factor and of capital factors, soft. markets I QX is it category think I'll quite balance, start a the to Paul. I turn where one is over But we of what the on

I do days plans that was that tested the that with still validated think the this the in out go-to-market we we in other one in new are, has 'XX, first, and 'XX. fact the strategy to is late early rolling executing very

think I a point upside is we the billion total market significant ourselves that to $X term of we've guidance that the it's increasing over the in versus number addressable advantage But single significant that? to identified the add you of the on opportunity, want consider well to short be answer. primary to of procedure, level patient So position and high professional that and with satisfaction the as an do impact Paul, practices. the making benefits a

Paul Little

the mentioned, the conservative just a place, see Jeff think entering as go-to-market next into of I phase we there's and think as strategy, good really take our initiatives we're to reiterate, we range Jon.

a represents rate level. over growth $XX Our with that million year year, about confident we're and to mid-teens $XX million range

Jon Block

Yeah, guys. great, thanks

Jeff Nugent

Jon. Thanks,

Operator

with Newitter Leerink. Richard the comes SVB Thank And question of you. our next from line

Your ahead. line is open. Please go

Richard Newitter

augmentation is assume guidance the safe it's you to on miraDry. that with that growth Starting safe implied if had if does, for assume that to year just on at I'm of just implants and implants, wondering the stand. one that the taking breast I've you implant that's this thanks one got that thanks breast provided XX% breast it provided? range for the then range. does of Hi, guidance guidance last And for business, growth the it the still midpoint kind questions.

Paul Little

that's I FDA call seeing the context the all segment to we the it XX% were we which of with This this, in to and million lines. was gave $XX impact we when product various includes range our what last the the segment, consensus, business. know $XX would that of of the guidance is panel over XX% entire obviously and million, the around for say

So within and that expanders, them expect to segment, XX%. least breast gel tissue implants products, specifically grow we at

we're giving, So And it confirming giving ok. going obviously, told We're and what we still yes, an outbreak total last now we're quarter. We're going segments. not consolidated product we're to refrain you individual from and calling business that's forward. giving lines,

bioCorneum, within instance. are for are So lines those tissue product that, and expanders implants,

Richard Newitter

one Got you. business. it, okay, the thank follow-up Actually implant just breast on

little few of to then noticed Is the a trend finished that Or more kind feel And just uncertainty the of up? to the you've color of you kind last one mentioned that's panel FDA around follow-up. related the since something the started that weeks? that. underlying in from had like trend been little just market you more the seeing panel. a noticeable that that You improve impact bit a Maybe

Jeff Nugent

net pleased our with time and activity abate our plastic I say one perception practices. to not during with surgery to the concerns education that that is concerns do but within the experience, significantly have the more more around surgeons, from was And Sure. a not of surprising very FDA And the volume more panel, discussion, the larger, all respond there I'm consultants that right that of to only established and procedures. the they reduced started where confusion. it's of they note have ability that of this reasons the greater that's would had the more

their relieved there people, further the in confidence fact, So from a direction, the ramp ability the in their the very continues number of are and selection with them and to I this output product to that influence is gives people patients. think in FDA, majority which and positive are reassured of something

Richard Newitter

about then just And you million under on for comprised approximately, the $X that miraDry the remainder what that for and maybe sales us the miraDry, XX XX it the we you seasonality talk us our million if the can you, XQ. within the to split bit as Got Thanks little just year, to Paul, for could of tell tune and million fine range. US/OUS pacing models a was, the just

Paul Little

Sure.

The saw a what with first year. US. ex-US, quarter last fairly was It consistent XX% was we about XX%

Richard Newitter

the pacing? Great and

Paul Little

putting I teams, look with business place this and the awareness we're marketing just in building initiatives as at isn't the overnight. would

the of would growth a little bit I a back more biased So say business. chunky in terms a of to half the in probably It's a is the little this opportunities also business.

seasonality quarter growth QX driving the equipment then on, placements focus Obviously, awareness you strong like on, very again, business. of back the and cadence always have the should in consumables. we driving capital overall it. is issue if But and four You it the that, on half

Operator

next our William Blair. Margaret And from with comes of the you. Kaczor Thank line question

Your Please go open. line ahead. is

Margaret Kaczor

guys. my afternoon good questions. taking Hey, for Thanks

Paul Little

afternoon. Good

Margaret Kaczor

bit start to traditional and do than you with so would sequential breast how understanding guys a much this to just that the period maybe things rest historically? sense The one is gain side you QX a see change through in year. of that may Hay, us more little helpful able business. share think with of the quarter saw in you the this that QX, giving softness of real question Can for how the from translates probably the market were be you start the a of out to

Jeff Nugent

that and in the we we the are Well, identified I is even share achieve. gaining be fact, position. think granularity difficult, are are is side. to and we an able with certainly difficult, Mentor point in that single we And we're is achieve, to to that confident share to on going little the as high today we taking that share we've the Allergan and that targets that a pinpoint. that particularly, but from quite high share competitor reliable we them, But know trend. the a But digit we're bit currently understanding, our we are hard believe digit approaching doing single confident market domestic research are upward

Margaret Kaczor

a you're out then following there, understanding and within little feedback between breaking guys that FDA sort businesses. bit on maybe and the not to of the But the maybe panel panel. Okay from implications the the follow guidance up mentioned saying some improvement the and you

assuming impact So some and headwind a in comes Or are you dynamic? sort market guidance your back relatively of still are quickly? this that year a it from assuming you

Paul Little

the X% Well, is we're to their 'XX within if mortgage that noticed, kind relatively plus ASAPS data, be our minus released and assumption which market Margaret And going X%. ASPS to you of flat.

So QX. share it we share this a market QX, took next. take share flat. into We'll be accelerate as year this situation. The will and and go is We will

Margaret Kaczor

Okay, profile last the going great. that the you're don't is or understand for targeting you some I utilization things guys you chains know forward. you I And then the miraDry. are would then need larger newer patterns what accounts do in those in and you can in guys the that differences helpful have to terms think do of any of be for share the targeting, if of year accounts even you think of clinic miraDry, that to the added folks one and

Jeff Nugent

things there's doing, several we're Margaret. Well,

identified in Miami. with strength And opportunities are of the trivial high sales And like service highest XX-XX the is And sweat terms going combination our I'm relationship love It where we're demographics, and markets. a and I New We're practical think we've index. we've organization has a high-potential example to sweat high here, index. there's not one use an to are. anything, next trying to I the week; be the like I accordingly. is of Miami. but identified from where in very deploying standpoint Orleans

So that aggressively. And we're conversion when in the the follow-up I me we've to aesthetics tackle who we're much that confidence like more are put index, trying for of we've a patients. time, satisfaction to you indicators, taking prepared in that number much index we're And much spreading accounts most now, well from the look things an and and going a country dashboards. entire satisfaction in we're of impress a on in we've approach the the right got over-XX% me focus And on way all some this significant category. work confidence remarks, is those just more, That to consultation granularity our been always benefits gives more reports improving that seeing and as with done I focused and a procedure, customer involved more our said long at on entire a within the as not of at life-changing with and significant practices, highest is the pretty we're improving the aesthetics that make level are choice. lot people extensive but the from

Charlie Huiner

can of days Margaret, of some good Paul of you with discussions awareness at promising Syneron, well scale get we're larger discussions with like the programs. Kirk and the to his direct can and can specific was, this we and their of your I of by tell consumer spas. these are that accounts question I'll the those at larger very from Charlie. on some just days and very see say traction medical accounts what getting end aesthetic Zeltiq are I think you from some you profile the combination because just of larger we add, based is at And versed accounts. and to just imagine or I'll Keith having And some beginning

there we can and see and of to that gets are begin to may start see out see to that these and and they we You some of forward miraDry that chains expect when to miraDry going when coming we attract this larger those year can opportunities. that, of imagine And we out some big that start see awareness into beginning there, years.

Margaret Kaczor

thank Wonderful, guys. you

Charlie Huiner

you Margaret. Thank

Jeff Nugent

you. Thank

Operator

Thank line Stephens. Chris of comes from Cooley And with question next you. our the

ahead. is Please Your open. line go

Chris Cooley

me initial for it maybe questions. XXX Thank for during a you. a Could 'XX? and the about additional everyone and well, there. of some weren't the accounts additional taking the that of Help you getting impressed you're us here shipped and of with you challenging the in better afternoon Good the just get was quarter the to procedures as types I XX% you breast provide those realize kind it Maybe a color I've profile miraDry. I the got And pertains that to of business, participants then practices this and in understanding thank environment. one just first, on really as one follow-up was which quarter entree

Jeff Nugent

is it's accounts, supply to think general, these of in the several very hospital least constrained from that done we years in is year. we've with over previous at particularly customers a I of reconstruction which related us maintained bought last number we've think, relationships a what who environment had have in nicely. But I growing category the a haven't the combination

I've involved we in to within have fact, that on board, I in years years most according highest-quality surgery one organization of our the are the my is that relationship it's category And categories number And and after the in over have of of including four tell nearly decisions plastic the been of convinced So in. consultants of different with, what and part keep made been the relationships which criteria, here, time to representative. end confidence with four I'm tasked they day, have a you the that have these at the sales open. that's physicians' this

is much that Sientra answer event we've relationships, more difference, sources different in which number that confirmed maybe based accepted. the a we to able safety the and of but being long-winded superior any a being upon increasingly recognized is becoming and it's through So profile have share

Chris Cooley

in Or there placement. the a be little us for just about capital this higher real as gears we that what miraDry, markets, with the help to install us help frame number Understood, just color. on bit maybe But States to just the switching for before think of I I'm be of to market is kind refocused here to in guess, high of here willing base, some a those type I on additional when is ROI. driving alternatively, a markets sales And base sales off really the you bogey that are kind think we sweat 'XX, And would United I guess us with you'd struggling the off evening appreciate growth? I cycle index gating growth start what about of there think me US longer even or factors a drive helpful consumable then understand the really install bit to that a a type in out - share of with is a opportunity? there little

Jeff Nugent

potential. Well, put is, the as miraDry significant reps, answer an believe reps, think sales enormous the amount way we've the a credibility that the our accounts in convincing frankly, to exceeding best our that as And to I are developing and of in of expectations. think focus I the factor our successful well on that practice range of references development sharing placements are new

had all Kirk country that ROI levels the translating US well the are back frankly, extremely the and to high over to in market we satisfaction. physicians, the their references being international developed that significantly goes of arena exceeding expectations, the that as patient exceeding to So their seeing as the model positive increase have targets, able it again

where this odor is point step that a further helping let's by get simple is excessive to their the But as get one quite just choice, and are all go of and really as validated that initiatives easier and things we some combination are to debilitating as supported developing a of people anything. being and see which this make affects is able patient that experience, that aware deployed people are self-confidence, problem, have the for sweating the when that's So story the these be together. procedure, starting making already of with it that they come is the advantages and to one-time to much that to

Chris Cooley

much. very Thank you

Jeff Nugent

Sure. Thank you.

Operator

from you. our And the of Nowak Craig-Hallum. Alex next with question Thank comes line

ahead. Your line is open. Please go

Alex Nowak

been there's everyone, noise, the now passed, of with ruling Allergan's Great, lot has a particularly, implant. good Jeff, afternoon that FDA

give surgeon a increased offering? over trying is your I question a answer, out know to but So And to leverage this all you plastic does noise the from accelerates the here But convince that has kind faced? prior to to the of you you just shift any Allergan. are hard because switch this share that guidance share when taking said year in is assuming to later Allergan question of a

Jeff Nugent

how business to domestic right strictly that again Well, US significant it's to out, hard talking predict remember is going we're changes recognizing internationally. the play this about because now and not they've that seen

select that's a we I crisp unserviced of warranty, documented they extensive serve contest, such answer cetera, in But choices now by that, have of elaborating et brand difficult increase I've of are of the regard that need that examples US it it's case who daughter, I'd line I'm between the in of the expand part have And so multifactorial Sientra. cetera, this taking all not people they awareness a this, that and So surgeons to the the close market as when there very the procedure to practices. clear And a superior wife, able their make And chain have Sientra. it's have loyal got them. alternatives struggle of anecdotal but to so et a strong the surgeons and continued is will. the safety to as understand the the it's favor criticize me previously a particularly friend, to new, number to solution. their our and challenge a to going tendency a you told strategy of like. OPUS where number as supply quantify superiority, part share be And if out we anyone, our as But product to

Alex Nowak

outside you pulled that, staying products That's US? the from to on there's helpful. getting any As vacuum just move there a on forming actually plans understood. market. implant Biocell breast clearly said, with new And Okay, your update the

Jeff Nugent

I beginning the markets. I to outside it highest existing US think, committed part outside XXXX. high this fairly regulatory those think have, opportunity we expansion identified We've the we're States in a it's of distribution just network United begin best an markets that initiated That of with with company, to significant potential advantages that we've approvals extensive is the describe and way, miraDry in that the that network

Alex Nowak

then understood. the from focus burn investors last a recently more lot obviously, capital. here and question just cash Okay, from me, on And need the for

quarter, to this it burn three the you like roughly on based looks cash have two quarters just of left. So

you and So the mentioned there. Paul, we shelf, obviously all saw the news

expect Or think should of some on the something focus equity is So burn? And is current to it soon? sort relatively fair to the an option really we debt raise? is here with see here

Paul Little

we're at to right provides capital this enough now and balance through say it look our just I'd fair. get That's year. going sheet, us with know we to

have us leverage also today the it We to even needs. our address on Obviously, shelf gives more filing sheet. the flexibility balance by

figure we to flexibility, evaluating we're are to of provides we these of both to have all out that be the prudent fund So shelf going I and more businesses. going how plenty We're today opportunities. But it. think

Alex Nowak

on Okay, good year. to Congrats the understood. the start

Paul Little

Thank you.

Jeff Nugent

thank Great, you.

Operator

Thank you. comes Rose question from Kyle next Canaccord of And Genuity. our the line with

Your line ahead. open. Please go is

Kyle Rose

is apologize a Great, redundant. you very for taking so the much calls, anything between thank We if jumping few were questions.

off the question First start. year breast great to is guidance this appreciate side. the is a on just, Obviously,

about talked the You XXX accounts.

you the implant contracting talk rates those on as I us And to implant than at and just dollars like new both thoughts of of accounts. you're I of customers secondarily, on of space. with far that your wondered then it going about much with respect And accounts from implants, XXX you sooner and an got styles in sounds capturing how the some the attachment and/or more think out incremental those? those expected. as side then to also expanders are changes on how kind perspective? recon where of to sales those came also maybe approval capturing from You respect maybe recon Can

Jeff Nugent

you Charlie, can that? handle

Charlie Huiner

Sure.

take try those to sequentially. me Let

the So approval say know profile but got excited get was I we're FDA, extra high you pleased approval. of tell of ahead it we're that never implant. we'd we because our can schedule, don't to the obviously whether with that

it par, the if frankly, implants. development a with about this is at have not gap already we program a expanders. par, recon mentioned, market a It to expanders, active tissue we've of something above the we in of definitely have That on rest been we includes now of that our us Jeff number for very talking focused is is includes leading a least in feel breast which quarters, As brand United the getting States. tissue fills which product And portfolio.

from continued reconstruction. within again, about those we feel talked good growth When breast clarify. in that purchased this very just It want new accounts hadn't some us QX So about approval. us a hospital we in I the that, for implants previous puts lot XXX were purchase hadn't shape good for us accounts cosmetic XXXX, in XX, did who were in XXXX bought there XX while them customers XX, but on to from side. months of

So it's really across board. the

at we And be to range our the the that provided reflects really to which a that regain accounts, continue position, breast business. some supply quarter. went improving implant first in very we lost our and given the at team, we guidance Our in expect out effective that good to quarters sense, to, in specifically those doing were for in of come, terms of

Kyle Rose

months acquisitive, by there. XX then inventory appreciate the back question the about the recent kind color obviously is about aesthetics XX, piece really And also you've has think XX follow-up Miramar. piece broader building of just the integrating getting Great, months, last one I But I and more a been company. when been

an see a market an looking a just tissue there side. any me, priorities that wondering standpoint, So when your For lie M&A the how from on from the recon But kind kind are you think perspective, perspective of I where I'm to from as be high-level you fill? think acquirer. you'd of gaps product about

Charlie Huiner

really two a three more working really we're portfolio that we internationally. five of Kyle. focus, business, to over one, portfolio Jeff question. the mentioned, and certainly the have about come we going that segments. And reconstruction breast tell at might I we've that talked you imagine and tell I'll two nice our you and growth I cosmetic with and with that as augmentation, we can and we can are certainly very for adjacencies on organic markets, with what have pipeline do opportunities development look take those can can and product in way, than to now, opportunity that on that side our good our feel years. Look, breast about nice Good we're enough there the But the market next some in this US you fill continue having to

Kyle Rose

for the taking Great, thank you questions.

Jeff Nugent

Thank you.

Operator

Thank you. the And with Jacob from Securities. our question Hughes comes line Wells of next Fargo

ahead. Your line Please go is open.

Jacob Hughes

joined accelerate and I quick come where But on does SKUs? I back this second had could just guess I afternoon. you you And just secondly, my that, if demand One is, so was if side. two good your supply answer beyond I'll core breast - on here Hey, are if implant question. late, ask question answered. a questions apologies and

Charlie Huiner

of Again, our that included it feel as been from and supply our we relates partner We our six seeing we've are supply having in in guidance. very sufficient right the we're as now. getting the to We talked of daily certainly around comfortable we months, Wisconsin meet with a consistent supply calculus terms to in guidance, supply the about as improvements in and remarks really over the we on basis. last feel our prepared confident

expect also Now early of to what talked sequentially this the we This quarters rest supply next happen this a year is year. as scale, as the into to steady happen this about, over that's talking we've going of is we've through about, been year. and

and with year. situation, does guidance feel our integrate confident our and that we supply the guidance getting very again, So we're the how supply informs for

Jacob Hughes

Jeff, just a more Okay I granularity and then, guidance. bit guess little the on

quarter the down half. first and said into might first in you call the procedure I think volumes on that last the bleed were

you do today? of level in what conservatism So is provided guidance that embedded think the you

Jeff Nugent

for that? asking apologize on clear this repeat wasn't I Can phone. it. you you It repeat to

Jacob Hughes

on half. the volumes saying just into first-quarter procedure I you that last might about quarter and the talked down first call that was were continue

do what today, guidance conservatism the that? think embedded is you level of with So in

Jeff Nugent

the want was answered mentioned, demand there not of which the in we Well, the which largely the I more number it, pause of quarter and uptake much pronounced factors as a in it question, experienced is of the call as from part that first forecast, as countervailing would think, go least is earlier of overall reduction expect conclusions, not the media been And as returning. that whatever I you That I result it's are ameliorated. the frankly, that, a into have newsworthy in have and somewhat before. I more larger, a in of it or a previous practices. to the safety, the on the is concerns not I seen net patients FDA's this as established

Sientra it. that advantages, a demonstrated index goes warranty given the I that an dissipate, improved important factor what I confidence these have by So to Sientra significantly going superior procedures safety along the expect the fact the difference, in that think we reluctance that includes the is that remains undergoing again, But overall covered in product call forward. we selection safety and with that also

of is continue number gives there. I net-net, a just things I meet offset the all still think that we us the But reluctance least to think of that combination these guidance the out. confidence factors combination we've of remaining are going out to whatever put to at these So are going

Paul Little

Paul. it's Jacob, And then

X and did missed quarter took the take to in year. the that we're conclusion is it market quarter earlier. the going X relatively to it and going of our have be very we give year. You rest this might share it for We take think we're we confident to But flat going in we're

to the the So with our missed our that initiatives earlier. case in share market, take even flat you lies in confidence

Jacob Hughes

very much. thank you Okay,

Jeff Nugent

you. Great, thank

Operator

next & Kyle Company. question of with Bauser our the And comes you. Dougherty line from Thank

ahead. line is Please go Your open.

Kyle Bauser

the Hi, for top and XX into to research, think ahead so? out And But next your months, XX of questions and the apologies, tiers in in Of to a you've time so, taking large the answered sales good XX,XXX, here. how people about over, miraDry as do of you need you practices. say, those practices, how those you my market the characterized the force I addressable afternoon. were Thanks capture or already you've US opportunity aesthetic XX questions or know talk broken million tiers.

Jeff Nugent

at identified we've again, we the to essentially method potential of on targeted sales. think that the sufficient sales And One have of force are it's that capital we large market groups the started and development most capital territories, field. in successful. highest a them that we're be XXs also protocol aimed a we there sales, focused terms in Well, managers them low force against the to in and new get the have the is in and found two currently practice train But to equipment in we coverage.

we believe with goes of companies, that got and we points to beginning of on and see. And coverage one our stage I already this it made from the sufficient that opportunities productivity answer decrease earlier, that we one what the we're benchmarking have. Does is the force based sales So burn that back similar your that's we've question? at to increase think to

Kyle Bauser

that's for Yeah, provide saw helpful. Supplement the any we submitted profile ultra-high Slice can any implants which more activities got submissions And on on made you're just color you've it, or or month. approval other enhancements you just there? then the talk you November innovation PMA there? lab But a working in the Back can activities recently of bit you little and last the about

Charlie Huiner

ongoing XP was, fact list an that which talk we of Slice, of some call which about, approved fair of out made the of which of can have Let first But coming me some the would I we is it, take should This the that be competitively. say be just mention I'll that. can't, Charlie. what of at And into we was we and appreciate that what to project next and happening think of what that but facility market, that's to again, are only patients on, us on working beginning surgeons on the next generations will they way also expanders, not can you generation. existing tell tissue of feedback our by devices right that bring I believe now direct give we're to Slice. they projects

to on are Jeff the has those aesthetics business, in markets opportunity. we're point and worldwide. we big talk be And this now. can about to investing that that But made, to very expect player in We're leading So R&D see things there. focused I really a a right breast can't take imagine the you us we

Kyle Bauser

Great, thanks taking questions. a lot the for

Jeff Nugent

you. thank Well,

Operator

to Q&A this Jeff for today's conclude Nugent, Mr. conference. for any turn would back Chairman the Thank does to over our and CEO, I like you. remarks. further conference And session

Jeff Nugent

much, operator. all in you conclude thanking very Sientra. you of I'll your Thank just interest by for

series And proud we ability have organization is than challenges, I challenge in face. and this We position, time every overcome at of stronger am a of its a Sientra in through so our been but history. to any frankly, much

And results. meet. forward share first are have time, possible. to you to understand motivated I we guidance the having So to look least And objective given to at continuing our wherever exceed that to for is positive

thank you very again, much us. So for joining

Operator

gentlemen, Ladies you conference. does you program conclude for now Everyone may and day. disconnect. thank today's participating good in and This a have the

Sientra (SIENQ) 11 May 192019 Q1 Earnings call transcript