SIEN - Earnings call transcript Q2 2019

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Operator

Good day, ladies and gentlemen, and welcome to the Sientra Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Neil Bhalodkar.

You may begin, sir.

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

Report Quarterly on management's differ and trends, XX-Q or the is those forward-looking XX-K update uncertainties or that statements. Form Form risks Report and affect on SEC. financial Forward-looking statements A review to that may filed obligation in forward-looking in are or Company current or and on statements. its discussion future the The any which with Actual expressed strategy expectations no business projection Company's Company faces implied and detailed the contained the will assumptions materially file previously the performance. by results Company events of undertakes operations Annual may from the based of estimate,

Nugent, CFO, and and COO Development on have Chairman President of CEO; our and Treasurer; and Sientra's President Corporate Strategy. Little, Jeff Paul Charlie Senior Vice Vice we call, and Today Huiner, Senior

now over the call to Jeff. turn I'll

Jeff Nugent

and afternoon thank for afternoon's call. joining Good Neil. Thanks, this you

As of in year-on-year. sales very consolidated strong our growth results Sientra's earnings with quarter discussed second were XX% release,

these Our to achievements entire in is record extremely particular. of those results of team and want three I proud highlight key

XX% First, at flat. a tissue implants share the expanders growth market and Products Sientra's is sales year-on-year breast with time OPUS continue to Breast take overall when

of $X.X sales in record achieved miraDry second Second, million the quarter.

activation globally, in States. particularly brand strategies gaining performance strong the awareness are Our and momentum market with United

breakeven portfolio. to additional drive that late do capital XXXX. equity growth June we current plan, expect flow to and we in invest reaching equity Sientra Based will an provide our in the financing completed need cash to any we on Third, across prior raise our total not strategically that

and for turning the sales detail that over in million I'll the second quarter, quarterly of the Company achieved to record net second year-on-year growth backdrop, before review quarter We With further of of $XX.X which as equates sequential Paul. XX%. XX% call our results in to growth

performance was Breast represents Products miraDry sales for achieving XXXX objectives. addition results quarterly and This record solid to driven progress for our strong by toward our segment in

Breast second XX% emphasize $XX.X implant in to and at that quarter the sales expander BIOCORNEUM, stronger Products grew core XXXX million, XX% year-on-year was while growing like total tissue year-on-year. to sales, excluding even I'd breast

consultants quarters in positioned Our strong well momentum execution And their confident this to plastic demonstrated against ahead. targets. the I'm that we continue surgery are

sales to well down In and share Board's half market market have certified account its safety modestly our customer an surgeons overall with deeper new of our new brings as XXXX. XXX, superior Sientra accounts new resonating breast estimate a X,XXX XXXX the patients. in sales customer increase Clear conversion date. share accounts industry-leading implant that in with first with accounts base over implants are tissue the from and to generated gains wins on in demonstrate Sientra of well customers existing year had that XXXX, quarter, their our the XX% active over as that This from implants penetration total Sientra's to represents solid grown targeted programs force of was clinically-supported peak which sold year-to-date regaining in The OPUS flat of profile relative breast second our breast surgeon evidence plastic our XXXX. that toward and progress the at sales implant as plastic In to warranty it our placed new XXX not accounts. we as to order XX% expander an over

which Particularly enthusiasm forward. of the my opportunity light for the will out position share from and throughout market going of the XXXX. throughout the these XXXX to our we recapture ramp back supports conversion points half improved new favor expect Vesta of in supply supply difference. Sientra's roll and customer balance to we beyond, And conditions Our and of allowed steady continue build breast implant continues a that increasingly programs, us has

the new want portfolio U. also to driven We S. our in penetration strong deeper wins. accounts market. by our advanced contract as existing The position reconstruction tissue $XXX well in million growth expander breast is within as hospital

over American to profile begin high and in the on As Society textured portfolio. options. smooth and surgeons for approval these or to extra sales of filled implants in high Surgeons plastic we mid-April, discussed introduced reconstruction in in quarter's breast the Plastic important an products profile, received approval implant quarter. FDA of This third our adding Aesthetic last implants at XX XP, gap Meeting May our We call, extra excited we're early new

XXXX. We of drive these to penetration AlloxX continued expect demand implants new for of further half with continued back hospital combined of recognition advantages reconstruction accounts the the in of

progress that our market. earlier campaign. the effect the part as million, a $X.X consumables across we as to reflect and mix year-on-year had of scaling Sweat delivered achieving initiatives U.S. of year sequentially. the balanced well we net strong quarter, XX% between well equating and particular No with in results the were of sales launched segment miraDry in expect as capital Sales Our record miraDry's of the XX% geographies, marketing to see growth global

trafficked to focused build to effective highly digital interest in platforms, ads and to across Facebook, place targeted continue We continue the and miraDry. Google including cost others digital Instagram,

website. doctor traffic, seen driving across website quality that on step and has website which as leads This increased miraDry high traffic Our took installed we is base. our finding referrals next in define to the quality our increases significant of a

have for of a that over previously, their a indicated accounts, large consultations of patient we've discussed have to that number in XX% treatment. continue as We result miraDry opting

to driving stories capital satisfaction according are testimonials highest miraDry Further, is with our is XX% RealSelf, progress physician leveraging aesthetics evidence cross-sell value miraDry seeing that who even those phase We're as time new physicians group The practice lifetime nearly efforts. of of bring entire to category. is their miraDry, in practices. as This we've success make calling treatments across more patient which been compelling. among over have reps discussed potential previously, in that is also to of will and practices treated the investment the the other beginning to aesthetic that patients their this miraDry opportunity at

and miraDry the eliminates a conclusion, all only clearly believe we is the treatment In executing highly miraDry strategies Compared well treatment odor sweat miraDry the will know positioned I to to grow what business that by for underpenetrated products, driver on market. the capitalize we XXXX team significant permanent continues install is that also to and to other be be is in odor. base approved large The sweat sweat half right life-changing the a Sientra a that and provides in solution back and the confident consumers for XXXX. continue quarter of momentum bothered into saw second the that growth I'm

Finally, we're the June. to both invest pleased to have in million from the compelling equity strategically our early we a offering opportunities $XXX have provides growth offering miraDry completed Sientra and in proceeds capital businesses. The this net breast in

financial Paul? Paul, over the Sientra's that, who quarter second With discuss hand in detail. results will to greater call I'll

Paul Little

Jeff. you, Thank

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

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

and/or Again, non-cash its refer release GAAP non-GAAP XX-Q items removing we financial our adjusted information, non-recurring to and please tables and to items and full counterpart. reconciliation supplemental Specifically, for GAAP on of non-GAAP, measure. this earnings are a EBITDA

as the million, to the was an XXXX Consolidated Gross $XX.X sales or sales and same period XXXX. net same period to or total for gross for consolidated sales compared increase of were million between for was the mix of XX.X% total sales Breast for profit mix within XQ $XX.X versus quarter net XX.X% as XXXX. in by consumable XX% Changes compared miraDry driven the $XX.X profit geographic Products a million capital million in of miraDry. of of in and the overall margin well $XX.X

second the for XXXX period for quarter million expenses same $XX.X to were in expenses $XX.X the XXXX. million Operating of compared

primarily goodwill intangibles positive expenses of $XX return the are on we in in non-cash investment. miraDry related that impairment miraDry, million million, the investment sales $XX.X to an results marketing by increased our million, certain $X.X seeing driven and Excluding were increase following of and operating an

impairment miraDry's XXXX non-cash in remain Company's the guidance impact sales not does business The ongoing well the confident And we or segment's as performance. outlook. as financial growth long-term

offering needed was that estimate cash and increase to Adjusted net with will June. a on and of year-ago capital do early any XXXX $XX of equivalents the Sientra the XXXX. EBITDA a for $XXX plan, XXXX recently prior XQ provides need debt equity March our XX, June as financing in proceeds $XX.X not Based XXXX. compared completed we in million Net We equity portfolio. to strategically breakeven, in the which was to believe completed period. raise fourth compared cash growth in we equity received $XXX to reaching expect quarter drive the as Sientra XX, be in reflects of million current of invest The flow million from cash loss million and additional cash million the loss the to across our the $XX.X

XXXX this press release, in we noted afternoon's outlook. our As reiterating are sales

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

we for gel to of For OPUS Breast expander of million by net our expect and segment continued strong $XX implants our tissue million, Products, share $XX portfolio. sales recapture driven growth

of $XX in continue of acceleration growth and equipment and For segment activation solid miraDry, our to internationally market driven as net awareness expect $XX U.S. traction. brand by million, gain we to sales capital million investments sales

closing over I for to call remarks. Jeff the now turn his will back

Jeff Nugent

Thanks, in quarter. Paul. the significant second three accomplishments I to want closing, repeat In the

revenue increased the by utilization segments, Products for just First, as gains growth placements Breast in mentioned. miraDry, highlighted segment, strengthening the particularly by Paul strength of balance share we which United and in system we States, saw sheet, both the and in the had strong driven well solid our as global

global long-term confident in remain scalable aesthetic a fully I our outlook as diversified company.

intently XXXX, focused the within ahead we're executing on segments opportunities of on balance for the all Sientra. significant For

and With raise and the to work, for they shareholders. we're deliver I positioned dedication to our our drive team physicians, very commitments patients, results behind accomplished. and our hard to the their us, that well across capital on the growth thank talented want portfolio

to like the question-and-answer. now I'd over call turn for

Operator

And first from Stifel. [Operator Jon Block Thank you. question comes from Instructions] our

now Your open. line is

Jon Block

good I'll miraDry. start afternoon. guys, Thanks with

years. the for now of couple technology roughly You have a

that And you so per what highlight studies for together been patient. guys information physicians value to lifetime put the or have able to

the that physician your to you subset? You're of younger have type compelling bringing in patient, highlight need patient, a that do really different a data you to

Paul Little

better that this this some have bringing patients very early is it, get this testimonials the providing procedures. relatively able and we best that additional qualitative a put in monitor Jon, resulting revenue, our that ways is we're in getting in about placements to are working, theory new to is is are talked the practices but starting increased measure days that we one system our it of and recognition. we're that before, placements. through to the their we've been it direct convinced existing information the to increased still references And I'm that and new but

have, it's So increasingly that I'd to and strong quantitative but evidence. the data there not is results like

Jon Block

starting been now ask on specific Maybe I'd approach Kirk's your to predecessor, ask with follow-up made I'll one you examples love well, talk a and the breast have in some out on as I'm actually many can initiatives business that going ask and the six just resonate health then not running worked the months. miraDry what can one. if you approximately my really field? guys as health. to give. you that for guys hear highlight may that breast with And to pivots I'll then about what's have the of shorter

Jeff Nugent

the systems the That's both his leadership the question is performance because and as example, he himself approach Jon, we've PDMs. that change is leadership answer, holding fully the is to significant that and the inserted issues Kirk group, U.S. easy the roles, that back for an with a there for well as identifying in sales redefining ASMs, And before. in responsibilities team, accountability discussed were,

But on. accountability there an So count level increased specific is objectives. of of are can just number things I that against one

I we business which all forecasting this forecast. significant think difficult creating is new that's I about category, part agree, how go very of a a to is think we'd another

one-third quarter. forecasts. of – able as that in quarterly sales, of as on the over So previously average, is there equipment of were in quarter we revenue a case relying capital of weeks the last the And an on is to a rush quarter-end much coming full to as couple business meet quarter's most the with be for

One of targets involvement quarter, Barbara in month-by-month, we're of comes here so accountable the at with those is on are our holding the things Sientra that examples. is done in that that great uncertainty people end the monthly Santa and Kirk focusing avoiding each two

other businesses, here the that and on is and the he's switch his is – the he leading think one to to number of a has proven international strategies in the his ability his I so U.S. group. Kirk front team to approach had

So group, highly him experienced impressed now talented, group, really and I'm well. while experiences who done again, those what what to he's individual, as international very U.S. is I'm ZELTIQ apply a from we seeing leading put with is the our

Jon Block

the for either struggles what it to breast, significant And you Charlie. the well. a breast Street implant one focus with on with business. the in or the your means your of to Even it Jeff, And But I'll would within pivot open seem last opportunity Wall for also seems up competitors be some as expanders to side.

And field with capitalize to AlloxX? so that call on can would what time and to certainly talking you additional some maybe in the what doing spend opportunity you're the I if

Charles Huiner

I of aware able And to. accomplished entire as at we've KOLs the different there majority business augmentation been weren't And We're I accounts a fortunate has of a are portfolio It's it's different penetrate we've by hospital the a affected think combination with approach. hospital, before, which with think is The reconstruction really things reconstruction implant, all cycle. that within we've previously events some different in of buying we Allergan. breast the the discussed very the market, there's it. And is and also just of couple a recently but both charge. the number that tissue of going credibility that within the to experienced focus expanders, bring combination are the in that changes Company Well, some here. with implants we that most categories talented, aggressive on that superior our associated to our individuals not demonstrated significant products ability the resulted expander the opportunity leading the significant in tissue of within very that who are recognizes for within for have

year-on-year indicated, single implant business, contributed element, see in grew to as financial expanders, overall results you'll by So over the XX% the that XX%. tissue breast a we of and as

Products So registered line, expander keep Products increase, exclude tissue and it Breast a trying while of over we when grew XX%, I'm simple. to grew XX%. Breast total part, the XX% you But product which the reconstruction, by by BIOCORNEUM alone

very that progress there. we're the we're pleased making with So in

Jon Block

helpful. guys. Okay, Thanks

Jeff Nugent

Thank you.

Operator

our Leerink. And from from comes question Newitter you. SVB Thank Richard next

Your line is now open.

Richard Newitter

with I've thanks got as questions. on Products. two two Hi, taking Starting your well. my segments, the Breast for

in would your recovery thoughts your was half. related from we from had perception of your there before the I implant the and you improved And flat I the moving information a in rebound on about your time level guidance underlying hearing dynamics the what guidance, still some you're that ground your to to things how going reiterated of that the That respect guidance to Allergan, in also around embedded for the the textured and what's acquired. or to the getting potential guidance. embedded back Allergan new the market with for a slightly recall in some being You love on think hear market? changes at Is or last you provided marketplace. recovering reiterated assumptions had

Charles Huiner

year what with expected the question. the data affecting Let so as it's coverage, – that, media are There et flat essentially since on attention more factors many the best that I conservative expect approach, very assumptions the market we're to we flat. to me category to overall balance predict get looking we the But a one. our are continuing do of. category this Rich. remain is know, predict It's And that we difficult the category rely good down answer based to can really that do. you now, share. it finding take accurately marginally cetera, a the can't hold FDA with the are is what And being take going assumptions current our of first earlier the on even that for to that was category to And which essentially we the at to appreciate

in that's we're overall is, advantage as more highly from be take And have going it's back accurately. And able to line take still to of. we're the Allergan, a in a relative there you half to that to position the indicated we market that we our reconstruction share. opportunities able aggressive bottom are And to uncertain augmentation and there are particular, Paul? confident to predict both first a to in are But assumptions shown be half. continue than standpoint,

Richard Newitter

and XQ wondering can should the to And the was then we us numbers. you down, a full-year if what the of them XQ then the respect And bit? stepped between then think consumables? mixes capital about was I if to sense turning could and O-U.S., little should provide the as Does break to down between to And miraDry. give also the with trends and we through U.S., year? seasonality think how split move to we XQ you relative get how a

Paul Little

In of the split consumables it XX:XX between XX:XX rest quarter, actually the second Sientra a between it U.S. and And world. was was and split consoles.

S. at were we last of ex-U. All a XX% more year,

more fall and would both the give quarters not but U.S. business, XX:XX it's like this heavier could to We that fair. a roughly consoles as – on of be XX% half, little can in model but U.S. the the that this of mix you two that, on more So XX% business, going typically give kind consoles, be as estimate maybe XX% the – it could and through quarterly reflective back you high we're XX%, the a next in quarter. international, really stepped don't would that up in assume

Richard Newitter

back with be be should about just all dynamics, then gross the the half And the thinking how would margin in helpful. we of mixed and

Paul Little

implants, XX% consistently been again, quarter I've is the It's a and tips range of the consoles, But think a back both function been half are going holding Breasts. more XX% to XX% on no issue mix businesses. ASPs just shows it. year, it's of breast in be out I've even mix. this it the the than the even is using. I The saying, for what to

So the will Breast more regions, really function XX% the in the to a the to of miraDry U.S. Depending the world. does XX% does to closer between don't back I could do modeling be to be itself of than miraDry on and high-XXs, I'm half the rest going what But we're be you, is in that. want half. the get – range to XX% specific the of give going back it what

Richard Newitter

thank Okay, you.

Operator

Thank And William Kaczor comes Blair. from our you. Margaret next from question

open. is now line Your

Margaret Kaczor

my Hey, taking good folks, afternoon thanks for question.

me for Breast side. is the one First on

detail into of to call. the little referenced new go end try a of Just at you the bit of accounts the that had front

you of So from had accounts. guys stickiness first, these a sense

productivity the repeat that share. your in orders of accounts, as keep these these accounts to arguably question is, you should higher. Your within some genesis share And drive gain rep ability gaining of and the newer

in what's on that So and through you guidance give being can year-end? any assumed metrics

Paul Little

we're consensus, this look productivity Yes, going of XX you can increase get those numbers, and not new is adding it. the use into we at the to have I PSCs rep productivity, year. and you any mean The because rep PSCs in terms

will a the As get higher on mix of hospital productivity we higher tissue business. accordingly expand a which the and increase we rep that recon, in price expanders, is base

and these productivity the future both that we accounts, sales increase get rep because hospitals. more sell implant to our is for the nice the follow-on So we're expected these accounts foreseeable more we to seeing can hospital from to have a given reps to

implants following the is give tissue won't that I the with – sales. growth seeing So But recon the an specifics. along expander the we're

the first other the – Margaret? was question question think what was, I

Margaret Kaczor

and you're to of accounts? penetration ability The stickiness those terms in new seeing that grow within accounts of the

Paul Little

We haven't account. inability shown the tap actually to new any

We're back We to they're So why the making there not accounts. sure stickiness watched and one just more we our watching. that we are reorder the rate. order. than reason – not seeing are that add there in we continue any get We're are

piece growth on is big of acquisition. new year, this a it account Our

deeper New account it's it's accounts more being also the driving into acquisitions, existing productive. and

six have more we more year-over-year. As productive have also reps, we PSCs

but us are stickiness, the it's seeing early, XXX off. not obviously, little dropping So that telling anything those a we're

reps implants supply, harvesting of they're say, – we've XXXX. a must been quite new all a have right a in the accounts XXX There's out is to again there as just there talked to got accounts are in we deal out time that now, Our great product going I their after while, sold to it's accounts. reiteration. we not on the

So we up original picking our that significant XXX in accounts number as we more, X,XXX back it's that to back peak sold get XXXX. a at

Jeff Nugent

the supply keep we'll ramp, on a of have to productivity rep gating Margaret, that natural effect much in how and have. also, can each efficiency mind as it sort But continues

supply ramp. monitor great still But continues to question because improve. continue and while expect obviously, is spot to and continues to and So as it's we're improve question to to grow just into going is some our only a it continue one supply we can artificial as to dampening there your build that on,

Margaret Kaczor

accounts that And guys are you just miraDry as but a follow-up time J&J my new have question, from been they users Allergan going to primarily the steal or and able Sientra the that customers long as before are old you well? after, to

Paul Little

Primarily, customers know best. right we going now, are our that we the after

sure we as brand to and low-hanging touch our that make can. the we we customers with prior reengage But with had the was the those as prior are to fruit engaged new. are XXXX all we So soon reengaging with customers

Margaret Kaczor

just then this And pick on briefly Obviously, miraDry. quarter. a up nice

to that and on look reps number we're any some similar some that you consumables transactions It largely revenue utilization? out seeing peers. as your sell-in flat versus helpful as new at to is question comments the sell-through ability aesthetic the competitor of M&A turnover is well. part the from growth So expected other just as would be the the gain of or of potential Or given weakness from number

Jeff Nugent

Margaret. point Well, first, last the

we is CoolSculpting, I proposition that – factor miraDry we definite lost I there interest these seeing think, a people. think that are ZELTIQ seeing the are that don't increased on in

So analogy the things. has they see there for out we've this a see and showing success real talking had, we've some quarter, the as that they is of the with there. been results primarily, more about strong miraDry ZELTIQ And U.S. level is excitement the of in And domestic the business seen results. side very

between So, paying joining ensuring yes, accountability. is we're to and part us leadership is they both always are representing we're And synergy And shown hunter two clarity PDM, increasing we've what an there there the the those of of that ASM got is people and we've real from additional improve. in productive and a side to our and expectations, a team business. that as the And that of most interest team. farmer position the the attention in objectives

continue is your sure as other I So, make and the can. I definite answering that – want And opportunity think answer directly. but to long-winded people best as far question. bring in a it we repeat I'm there to to

Margaret Kaczor

growth U.S. sell-through of the tips the sell-in was durability that and versus seeing, are the guys the the utilization. you of So question

Jeff Nugent

domestically to with both increased PDM of of the in internationally, Paul And satisfied increase were we marketing translates with fees, installations tips. what showing from new as Well, giving them we're strong, we're an is practice of function combination the consulting a the nice both equally And a which was accomplished the utilization. number tips as indicated support standpoint that the buyers. utilization that that that and well together a the really

is level of that driver to utilization is want really So primary the practice individual a the that we success. continuing objective bring to

can you pleased now, what share I with side. later, utilization the we're with more So specifics we're on seeing right but

Paul Little

for in a we specifically dollar a is this seeing the And year first record half this year, nice tips into so this giving growth. on business, of are without

lagging sales without revenue does, indicator utilization. what So which tips knowing machine strong of a is the growth having we're tip some our the nice on are reflection that

Jeff Nugent

piece individual upgrade will one to just a that. believe other of to Margaret, our question very installing much technology answer this expected to capital add to of but utilization, allow the which well through granular U.S. internationally. we've going your process month markets is us in mentioned this actually And more And is roll we're new as that before, starting and productivity equipment definitively. and units I key monitoring that to is out both as

going to. So of one the to that we're pay things attention that's increased

Margaret Kaczor

Great, thanks guys.

Jeff Nugent

Thanks.

Operator

And from from our Thank you. next comes question Alex Nowak Craig-Hallum Capital.

Your is now open. line

Alex Nowak

Great. of you force to or on? Good Perhaps rely details more provide around market. into distribution implants everyone. going what launch strategy which some to are can sales international afternoon you the some geographies sort Jeff, targeting timing, the plan the you're initially then here? And

Jeff Nugent

basic that we become a international very approach a answer There quickly certainly of of that have that discussed things victory. to putting certain to accomplish too it. are before, aware are global sure we've are broad strategy the can I'm we intent as The And markets a is, to very that Pyrrhic is one attractive. and

I'm but the as the you're granting in some planned et cetera, which is in the the more is approval initiated redefinition sure distribution factor and CE have beginning opportunities Europe to XXXX, Mark, aware. key that that markets – see still are efforts those of a approval in We subject right four to five in to significant we expect regulatory and the of results process significant now rate-limiting

that in those trying accordingly. go our into superior to claims, that attractive capability get as distribution we So across a taking but we are to we're priority. focusing I'm demonstrated an have approach what focused is the intelligent product able and on But a those be markets there clearly markets also cost efficient to where are investing is interest more

see So But regulatory we're bottom we to by processes. will that start approval line, in XXXX. still hamstrung

Paul Little

reiterate. let me And

side, So the well are they international. in miraDry

a building infrastructure we go-to-market So in XXX% these and when separate leverage by markets. it out will do, the do, not whatever We're built necessary we strategy miraDry.

we this be into we're as these how going meet markets the to to So effective, people we go do have there cost today.

Jeff Nugent

Those the companies. synergies being plans worked a the and it's great between two example are currently on of

Alex Nowak

to then about can see here in bit expenses earlier. XX all the model should And or of operating Do said investments more here are of the what model to the to bit follow-up much over and to little business a something little make you point? pretty need you are next Paul, this we any a a bit in months. in a sort of this XX follow-up leverage But at the you the explain little

Paul Little

of of I terms say is the people fix, side effectively the done. it investments, would In

Now as of I'll give we'll idea the we The see PSCs leverage nicely you PSCs. grow. – the

default we going only impact the of and see much going this but variable the year, we and consumer a business is in is PSCs year, become only decide we That's and – only going miraDry need we're productive, amount to to to, not how the in have variable I the the left exactly awareness. need we on how or we The leverage to campaign miraDry number. real Next we in to invest online. barrier Company give decent going else not in try invest is to through. vessel the again ROI you drops this that. calculate to We're Everything this have that is to for say to campaign that the as of manage drive it the basically business continue more by just are can't degree amount have forward.

Alex Nowak

taking well. And question seems impairment quarter? then quick, miraDry, Why this you the On me. real just it doing charge to from pretty be last are

Paul Little

question. I'll answer that

Jeff Nugent

you'll but I'll that. think to a I I'd better do answer like job. Paul let

Paul Little

is an exercise. accounting This

the consistent with together our look recent more forecast, Just earnings guidance, on is triggered in because lower we a which valuation of pulled the our the this of intangibles.

with leave flow running cash or we use at came the that. term. simply resulted the either this how accounting item. can't So with I valuation. multiples, that, impact come of an from do can't view on the market It analysis, kind to term or business long revenue no in non-cash That just impairment. I'll a it's impairment. And exercise up up we It's short multiples, I has EBITDA this analysis

Alex Nowak

you. Thank understood. Okay,

Paul Little

thanks. Great,

Operator

Chris you. our Thank question Stephens. from next And from comes Cooley

Chris Cooley

I accounting exercise bit Maybe that. you that a in a understand little Thanks I question. more on quick if the a team. at give last function description, Paul. on or us drove that point. you domestic the the for look ones taking from to just me segments but business at trigger? than bit, so follow that causing just curious was the Hello, this what the I'm little When two more that international of wanted question could just up clarity business

Paul Little

Again, businesses. goodwill clear. related so there intangibles and The specific segment are we're to both

for So this strictly miraDry is miraDry. exercise earnings a on on strictly forecast consolidated. going their It's

Chris Cooley

guess I business again the just little I'm miraDry what parse component I it bit... or international asking But of trying to was Understood. was was, the a it

Paul Little

it's – look the consolidated on we at all, it total. No, components, at look just miraDry don't in is we

the commercialize in bit I are think business product. to quite you this can we investing as see, a

So we two years ago.

with that guidance I've consideration, been we our losses nothing to then with million the out the spent in, the recent even business had times you're and that because this hence nice date one But So updated $XX in of forecast business. analysis we've paint giving projected, calculation it for review, into expecting even revenue. and business an all has – through an or most that hence growth today, triggered reserve. the impairment Most it inconsistent forecast it's not a triggers a companies we

an to little look odd not we're disagree nothing that. on So to for. a on growing that an paid on almost I'm charge we the in that with you going nicely surface, that's it impairment investing asset does have

Chris Cooley

Vesta of that we capacity here Should make a you when this few terms moving in encouraging opportunity just regulatory about that or with supply thinking you've afternoon. understand that on line want But factor you're the to U.S. product sure the I think the I at I if interpret then from from think certainly that clear but least I that the and you previously the in apologize front. cohort about call production very curve gating addressed this standpoint. with correctly, But a and we right production? just if outside juggling the heard just in now already that's or the is expectations with full you on I terms market now and agree I I'm of timing. how that now, now, have can should exceeding of

Charles Huiner

a with our ramp. ongoing definitely are with approach our Breast we Products, development so phased anticipating Chris, for our international market is supply up which synced

market supply the produce be continues sufficient growth focus to and on continue to efforts our trajectory ramping our in and US. our having share partner So

to starting As focused Jeff targeted approach taking mentioned, a development XXXX. in are we very international

in You're aware half talked We potentially furthest is Canada that approval registration XXXX in being of that a Canada. first about or of along registration. sort

then supply we choose go those We have other expect from follow phased in the we on demand context markets launch logically to market that in at that fulfill making sufficient and are that of Canada into all basis. that will point international will registration we to sure to able that

Chris Cooley

on Understood. good quarter. Thanks Congrats guys.

Charles Huiner

Thanks.

Operator

last comes our Fargo Securities. Thank you. question from And Hughes from Wells Jacob

line open. Your is now

Jacob Hughes

sorry. I’m

half expander any just high back underlying I range growth implies of you the the share the your if Does expectation imply continue. there for at at look if just an close year the the or of growth. that XX% is in of Breast you've look end to and XX% gains environment the that So in seen all that improvement that tissue that portfolio will is that Products

Jeff Nugent

significant additional working primary with drivers new tissue July. putting to exited which the in while been it's is program encouraging that two a we've the think and and back improvement process we that very some acquisition results still now. momentum we're marketing the right in seeing the I have July indicated We with we're quarter of actually expect that. you And the The expanders, both half. second continued affect pointed well. both from initiatives as the standpoint And increases account already And to place in of in

realized in that plans confident rate, that. ramp the higher at but we're that deliver So, to be expected a able the significantly is we half to back place are to going

Jacob Hughes

thank Okay, you.

Jeff Nugent

Thank you.

Operator

And you conclude question-and-answer your gentlemen, conclude today's participation you. session. program. today's this today's This conference. does Ladies for thank in and does Thank

a have disconnect. may great Everyone day. You all

Sientra (SIENQ) 10 Aug 192019 Q2 Earnings call transcript