SIEN - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Sientra's Q3 2020 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mr. Oliver Bennett. Thank you. ahead. go Please

Oliver Bennett

include Good laws. Quarter Operator. to welcome the of we to everyone statements considered Thank the within Earnings afternoon, Conference Third meaning will today, remarks XXXX in States like that Call. Sientra are that forward-looking security you, United our and statements I remind would

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

Jeff. Paul Financial Executive Sientra's now Little, may have about Menezes, to Worldwide on Jeff Senior deemed Financial I Chief and and Investor and call, of or Sientra Officer; uses and company's management's Senior President company Chairman Forward-looking that assumptions over its and the Actual to uncertainties operations President events and to our Today, the website based call Chief business, website on quarterly from future and the the affect would on Sientra's important XX-K materially and review current Kirk material sales; XX-Q also Executive filed Sientra's on like obligation implied performance. and is about those previously forward-looking discussion Sientra expressed we trends, company's are incoming report faces Gunhus, detailed and quarterly projection may information in or Form President is that on the routinely update to statements I turn of will Vice including its and which no the risks in Jeff? www.sientra.com. any company A XX-Q of accessible undertakes information Relations may estimate, financial Nugent, other information The results Chief or investors. forward-looking company, Relations strategy, expectations and Vice reports or Officer, annual at Officer. is note to publish the contained its be the statements. differ Treasurer; this Form posted Ron afternoon. by that company filed statement. that Investor

Jeffrey Nugent

exceptional growth all Oli, $XX.X our quarter. versus the and you year-over-year to in sequential Thanks, company's challenges the marketplace, quarter, Products third the in Core thank million. the XX% recorded net sales of a segment Breast for us history. with grew despite highest-ever This XX% the represented the prior record today. results importantly, Most products in Sientra by breast joining net sales

On trends gel COVID was represents down growth the shipments company. our been we've Japan, sales the despite representing total by Breast continued that is experiencing in product breast in and implant our net year-over-year was breast part highest Growth in for I our U&A, front, Products first distributor in Medical overall segment a products history, XX% sales aesthetics demonstrates in QX million, $XX.X another milestone quarterly this and as to the an the said, which driven market.

Excluding sales XX% segment to Japan, year-over-year. U.S. growth was for the Breast Products

pre-COVID received given was quarter third Expander gel due XX% up exceeding QX, and our QX environment sales QX, delayed due gel reconstruction The to strong still of focus also customers of exceptional feedback very value by In XXXX in procedures reduced to continue performance expectations validated augmentation and quarter. trailed is benefiting in based increased take our actual as been was MRIs with to and QX restrictions throughout our market indicates back pent-up is strategic augmentation the competitors. to the come from Diagnostic are quarter implant Our strong experience, throughout X% performance We reconstruction quarter. from such position been on Core clears, the the recovery share proposition COVID. our certain hovering business pre-COVID in is into talent, behind market predominantly XX% reconstruction from expect demand were sales XX% line expander we have year-over-year to decision strong by momentum year-over-year, to approximately our share And due conditions. XXXX. and exiting hospital The the certain due testing, have remaining COVID. the build sequentially. gain of implants and their patient market on level. the Products interest due the believe Once around Breast U.S. to to and with sales our We the XX%. a that value COVID. effect in market our the with up believe We from third down strength market of was net demand as growth expectations patient we believe and we we've exceeding our backlog now mammograms, in driven this

through have supported building our our continue to for tissue Our and QX. customers proprietary safely In our and and implants OPUS needs driven in initiatives share consultants the by alone, gains been customers expanders with of durability drive-the-recovery momentum of partner third our surgery the the breast demand brand sales team's to our field. quarter from ability plastic by the

market approximately sustainable. a existing accounts, continue share into and add penetration able see to we're XXX gain increasing supporting belief is result, our our we and new that accounts, deeper both As to our

procedure an to the our Japan. that to in first Xth seeing we brands PMDA becoming implanted PDMA breast process, rigorous implant line. the patient received are we to of continue profile one with testament And approval reminder, the October, Japan product as approval on August, of our through in of today, of in safety was We're strong only excited receive OPUS build. a implant the announce X pipeline already a As to

the segment prioritize that expect best will advantage. differentiated we've marketing and segment. Sientra, allow activities that efficiently our to continued with demand to resources We're in for gains us as accelerate. and provider investments implants, and confident Sientra solidify objective the to leading particular, of reallocating and ramp-up focus Consistent our and products competitive the Japan, promotional As most premium, in breast focusing leverage we on resources share to to services, that to breast investments our

and on our the premium high-impact of direct enhancing patients. will products and we needs specifically of resources their prioritizing expanding Specifically, toward physicians while services and start investments portfolio our breast

discussed our have tissue Sizers PMA we we QX pipeline our this by our for a further larger the a fourth Gel XXX(k) and our innovation position. believe an supplement approved expansion a and to significantly are support example earnings and portfolio our expect call, our of that next-generation for will year, expanders. these enhancements for includes We and to in XXX(k) As quarter sizes add market of this

effect to of well reduction The which the to sales. line third year-over-year equates was miraDry quarter saw decline. bioTip as $X.X as in million, and with a sales on intentional XX% console focus Turning to miraDry. the achieved a sales of We we in our due higher-margin business net deprioritization expectations COVID miraDry

XX% quarter outside with revenue the comprised XX% of quarter, from During the and BioTip of North of revenue revenue representing came approximately consoles Asia during represented XX% approximately miraDry of third and revenue. of remainder the America, total revenue. service

our strategy streamlined seeing coming have compared all more reduced drive drove been APAC with an out restricted the U.S. utilization are and and markets strategically lockdowns, COVID spending, QX less in Europe a our the trackable market we've challenging QX in in though increase and Europe shift modest of to conditions in XXXX. same the spending both account Even that U.S. year-on-year. utilization Taiwan such in in a Korea, sweat-bothered China, in COVID increase key sales. of markets to invest While to We're by bioTip utilization continued recovery the and as strong overall following we've

sales As momentum we progress look through into expect the continue fourth Product to build. to we XXXX, Breast quarter and segment ahead the

strategy provides details. investment business decline beginning several plus focused company We growth miraDry franchise, believe will our Products to bioTip line turn strategy, Breast sight on on a years. cash with With a our further Our Paul? now in of where I'll next continued it off to burn, sales segment over that, provide Paul. this Paul for profitable is a pay for to annual XX% the corresponding

Paul Little

Jeff. Thanks,

miraDry took quarters. in operating XX% our year-over-year by QX initiatives, our decrease of in response pandemic, to spend, past cash conjunction the given in business XXXX, expectations was Relative was the was The quarter revenue saw third paying any COVID $XX.X reduction segment. was organizational COVID. we miraDry net remarks, efficiency the quarter the to and pleased seeing the of with decline, Products off. sales operating from we with recurring announced of and the very the our we fiscal with consolidated heard bioTip on Breast business in segment. in you've achieved momentum Jeff's we $X.X million. As activities caused are our are burn is with 'XX line steps previously sales The high-margin our a which In the Sientra million, burn of clearly of This lowest in impact quarter XX business

growth. us breakeven for sales puts quarter, $XX.X in totaled Breast XXXX. strong cash to million compared without top a the on this to increase line a Importantly, Net $XX.X path third in flow the XX% for million same impacting period Products the segment

of console was miraDry year-over-year profit to in million significantly by $XX.X Breast third sales of sales to business period was $XX.X as from third gross the XX.X% or by compared XXXX. COVID same impacted for decline the for relative net impacted profit shift of the quarter, Gross the For as away XX% sales the million $X.X were focus XX.X% sales more or Products. segment to was our or quarter for a decision million strategic

of loss third a period $XX.X the the million the to loss announced this $X.X a share loss includes to compared Net quarter third loss we net was related successfully EBITDA and a of of XXXX. non-GAAP million third million an in the loss million or noncash for On of reported the of a in year-over-year. loss derivative with we expenses impacted cash period the for debt able quarter in reduction to and third Net million our $XX.X bad were not critical third while breast $XX.X continue quarter XXXX XX% This the preservation revenue-generating by quarter strategies. miraDry the XXXX charges, in for to debt X quarter associated and quarter net basis, the $XX.X XXXX. line liability current share company per adjusted were second noncash our for expenses $XX.X we go-forward convertible million charges same reduce provisions year. value were $XX.X in the or XXXX. for Similar Excluding an for of $X.XX loss operating in in initiatives XXXX or operations operating represents EBITDA were business quarter, impacted fair $X.X to to million gain that ensuring to of costs an impairment net business. with compared Expenses $X.XX for a operating quarter per adjusted the compared the restructuring same in of million invest

Turning June and $XX.X balance We quarter to end $XX.X the sheet. of XX, million with million compared at XXXX. ended to our equivalents of cash cash the

is we $XX date reinstating visibility of sales XXXX total in million turn XXXX. in I operating restructuring excluding to million the $XX.X performance $XXX net to are through and remarks. our Given forecast fourth over company and XXXX. to his for lowering $XXX and to the our back guidance expect million range $XX expense of XXXX quarter, charges will sales compared for approximately Jeff? to now to The call in million, million impairment its compared the to annual Jeff concluding million $XXX

Jeffrey Nugent

firm transformation like for second CEO us products, focus on role important an our Sientra leadership the which decided today, time made is lead growth. into in announcement increased have I Sientra retirement. Board continuous a At a to I'd to chapter momentum a my Paul. ideal Ron is address that to core and that the to place, time strong with the of behind and of as we Directors foundation the new of the pass high breast new this Thanks,

expand team. an position proud built to and premier solidify breast our and we've years, as thankful the services, I'm the differentiated past the which entire provider Over foundation of products Sientra extremely and for exceptional

into Sientra of our our to continues future and performance perfect take company very new leader breast, by growth, demonstrated be are bright, third strong. aspirations To in our this to the lead chapter forward. is Ron As the quarter

the described a marketing As brings seasoned, is our commercial of a expertise, was results. in record He He President the States leader leading in growth and he Ron and years. where Manager with exceptional Almirall profitability and driven past the driving United most deep operations and press Dermatology, category broad expertise deep and led strong sales, release, over for improvements X for General aesthetics teams. recently

understanding as at Sales within In Ron the Astellas an of leadership Pharma, integral Allergan his to responsibility, roles and addition this, held Pfizer he Vice Abbott, Marketing part to of Eli positions his Lilly. key held deep President for Prior aesthetics earlier both and category.

a employees, stakeholders reemphasize believe ability We in thank from portfolio to around once position your of to as on for of to the customers we our the again want premium world position allow accelerating our market that company its build into to further I'd XXXX all I will ability always confidence Finally, move like overcome, strength. our support. have. adapt our and and to and Sientra's

move through While will I year With the turn over next to we for ability into Q&A. I I'll phase. this Ron? advisory have in a at that, remain brief confidence into Ron call to in of role, growth Sientra end full an the before lead Sientra Ron's introduction the

Ron Menezes

best you. Sientra Sientra work And again, of the to enhance am premium ready breast the products Thanks, to definitely This with three, good surgeons; our forward do you, join ever Sientra's Jeff, partnership position; services. and establish and the for on I leading leadership help kind and time to the as plastic to words. the leadership in an is for look current company all and of thank exciting the market keep of to team for provider one, momentum kind with the Jeff, quarter our and two, our breast I dive going. heels your to improve, business. for words, afternoon continue

Jeffrey Nugent

Thanks, Ron. that, Operator? open let's answers. questions to the line With and

Operator

Margaret first William Kaczor question Instructions]. Blair. [Operator And from our comes from

Malgorzata Kaczor

an are on quarter. the full out going seems Obviously, maybe with fourth you with for a versus very quarter. very, and strong that strongly things third guidance came me quarter guys conservative implied one more that year First third

us more end you quarter around and results? you make So And the seeing in so about for anything you're the conservative fourth miraDry clarity should Breast would maybe feel give if where that can more far quarter? up

Paul Little

I'll Margaret. Thanks, take that.

augmentation. the pent-up quarter saw three, some in in into quarter think primarily and spoke There the about four. I So quarter we through demand, and continued we strength around script, saw we strength was that three

seen -- right? aug recon on not the a hesitation come We've not like have seen has. We back I slowdown. just would market, that would our be But

in we really It of in maintained quarter and some the recon, reflective on that just way no off in is forecast strength consistent it has was the our not So coming its it taking very business trajectory June aug does but -- imply what the we're July, that saw the up entire in of three. of picked through quarter.

Malgorzata Kaczor

XXXX, remarks Okay. uncertainty, there's estimates referenced do That's on broad. know are helpful. you And opening the and then you next I as for growth these we you XX% in the to your guess that, breast look aren't Paul, lot of talk But will maybe estimates comfortable and guys or how won't at I'll are years. push guidance 'XX. that you with over for few the a I you pretty providing if

XX% should it higher for baseline look growth at results? as breast we for lower given kind be of just that recon a should So XXXX or

Paul Little

all back. the when comes on it depends think market I

-- and expect both back recon We the aug markets, come to year. next both

come I will the figure everybody in XX%. We're think a XX will or over completely confident space to project in -- growth out, that we back will our trying rates, is take take 'XX few it months?

-- will grow We the market next year our our assumptions. per will in --

continue same at we'll and in participate the growth, to will time. that We add share

saw right both to other participate So than say point, talk growth a to market I'm And growth I believe us to we're the to year the And that going industry at this next We're we is quarter I now this what not given is quarter. to showing everything continued gains, that's company, the excited with going and quarter this was going first year. segments not nothing it numbers facing. of the We're year. market what in in next year. excited again, saw occur been has we next that for think great

Malgorzata Kaczor

for on And then new working look you. spot. I helpful. Yes. one No, the Ron. with to that's last forward just the Congrats

the you you your we to look make, prior? Jeff next immediate pushing X kind as your and out to X with the As have we team look that look How And strategy were with out continued Sientra? you what any? as over familiarity business want close over Or what's out, changes already years, rest are about of the the play just is more and if of started to the strategy it the then out?

Ron Menezes

Margaret, thanks.

look sell to excited at And all, perspective of when physicians my Sientra. of of I at if on experience been be has I'm Allergan. direct First was you mostly a very to from Board SkinMedica

my new of for XXXX. goal that we and of dive beginning current I adventure in term a me. the Paul next to continue for as is is Jeff or obviously, breast in the the set time hear And And the year strategy obviously, the has more in, going So short you're company. meet beginning

Operator

next Our Block from comes question from Stifel. Jon

Jonathan Block

quarter. Nice

augmentation the think acquisition come by versus Paul, And the follow-up a you then year-over-year? that may just I grown the idea in then overall is as sort look, in recon. third got any that I market is like have Paul, just the of talk think, guessing, identified anticipated I'm in we and, feel rate think area like looks the the share And really but others versus some it more And I Jeff questioning, just pronounced breast of Allergan. you And we in But follow-up. harder obviously, other? if same our to with of just market steeper. curve to share of checks, line to alluding market can info gains you And or a I'm the one quarter they're of gains? too. to what

Jeffrey Nugent

leading on indicated, delayed partial is And right of the certainly, a recovery is, the as reconstruction side. the now. the there first this segment growth part what's augmentation question is Jon, Paul

So that's that exciting have to But it reconstruction been in we begin in see coming pick And for an back procedures quarter. very extent to I is advantages back. frankly I we the reasons. fuller to are XXXX. message that underlying is think going here have. gets And now. that up delayed of we're the enjoying development fourth beginning clearly expect that real the that to the But these know right that think We we're

Paul Little

new business. like for on look also if think easy elements. We look gauge at market I we is measure One add adding accounts I'll few to we're this lose trying which things a and to we is more X share pretty accounts, any.

at just look not doctor and also Kirk's account too. X same-store We is existing sales. One also have accounts maybe last year, year, team to trying we had might -- this doctors, X

look and if So at them, those. we accounts, growth same-store we we the they they're to very be us, at in large call accounts, can small look

We all expanders with the the it's fronts. on the versus hospitals. want from at we're customer look existing we at growth implants three We that, not this I'm gauge healthy follow at also implants point, customer both growth, expanders. new growth to out, look to, break going And doing. but how on to Obviously, at

just getting longer contract be on So with honest hospitals, into it on to process both X, get we're a that's sides, the you. to the I quarter it. in say

implants, going from quarter, though, the after hunting reconstruction have quarter. I'd did and We okay on license this even the last we're say it.

You're seeing were where X procedures Xs or more procedures direct-to-implant stage not. stage occurring

new very great existing that and where COVID, did Wisconsin good. customers, implants. and Arizona have the up decline on board, were states Across mild it we customers, were all Ones had might resurges down was great state their Across very or minor. very board, we like looking on the on We was even helps? were very did if it So interesting. was of was that every And immaterial.

Jonathan Block

more clarify, that just a just maybe where recon the It were clear, right, And in is, on I obviously, didn't share. And out question was lower versus lay aug. maybe you better. I'm be to to to was have I of you performing market question going share very guess with clear guys does. Jeff, amount which my specific

of hospitals. one is in the especially would you're gains not saying But but correct? that the the recon, least that and it versus with seems some time aug again investments the think what being, recent the steeper contract wins the at in recon, like are steeper market, is, the actually would share share curve for So be gains, in

Jeffrey Nugent

other And reconstruction, discussed is That before, is the expander steady of it's into that corresponding making of implant sales. expander progress and not that piece additional talk And that, entrée expanding the on Jon, it. tissue the it we've just reconstruction about implant we've when goes but part a correct. with been the too, you it's sites is with expander that tissue that along

the So really this. that's at way looking we're

Jonathan Block

margins, side, management, the fourth on you it gross you and do second that guess just expense expense sort can quick for focus how structure? And into of the on twofold on sort good the we then And XXXX? the into we favorable question. of just OpEx? talk OpEx extrapolate with quarter Okay. about going with tips run shift the XXXX there. Paul, and out the do mix margins year, rate I the think Gross target lowered about

Paul Little

Couple.

to expanders here the combination is within always combination and reconstruction. the a and breast margin breast be augmentation will And or a business. be even it of miraDry of business, So going

said range to And I'm years for about get following quite will the margins better we as XX% the sticking talked last XX% But process, in more So again, pretty I line that our year, saw I facility. next margin coming with. what quarter efficiencies much with improve. slightly we quarter, better you in the maybe the at what they're our up our once would over our manufacturing this about expectations. be -- and will quarter, we tick think The that's year, dramatically

Operator

question from Canaccord. Rose comes Kyle next from Our

Ian Tolle

on Kyle. Ian is for This

Japan XXXX? the to numbers that How I was seeing can expected? first has in month get more patient detail how a there. the be big talked October. in first hoping And about bit gone? then you you a You the early Japan country bit with Are in

Paul Little

Yes.

business, distributor they're are we're demand stuff only question, -- -- we're a of running thank products through of approved X product in so only there the the X and seeing the on lot for other It's they're of this the marketing -- patients. the breast stocking X that. a we're named was although initial country. aware, the selling the doctor and to order quarter of you is Initial using the sales As we're there, order, you

So the feedback which our distributor of high this with we're are top interest demand is entrance market. It's being are textured competitors' really the out from were a the getting market. market. to now a and heavily very They new in anticipating the right of choices there shape no texture market,

a just not augmentation we're million X,XXX the demand fat what it's breast So builds procedures there. market all-in. hearing coming X,XXX that implants there, predominantly enthusiasm the this And probably high. surgeries, about is I've it's said as market reconstructive The months, and injections. it's fat HAs -- over are is and $XX injections

that take to that -- meaningful going share with we're in think of partner. we coming the market, of terms So a over our but years

Ian Tolle

know contract days I was those accounts. then low-hanging for innings. it's hospitals here? that you estimated up had than think And all seen you meaningfully in share quarter, last X% Perfect. Have I that the less great. early know be I at was early number you until needing there a tick HPG contract on detail to fruit use wanting wait would still with to certain But products, your of signed? Any that any specifically it's those

Jeffrey Nugent

you Kirk on Kirk, that, to Yes, answer the that. can please? ask line address who's let's

Kirk Gunhus

get before last and was contract of quarter, break HPG owners about the it the established really signatures doctor, X that. in takes by start each of to X everything you champion that aligned get a So and months dotted different in to

network of of XX an we and XX have so -- network which we just itself. about further signed they hospitals. specific Trinity, with example, HSA XXX, their locations. Group. to some get them There's It's network for XXX that has So a hospital That's paperwork can into in

we've so established relationship and them with And sign get to just a documentation.

individual into of have these rather initial you to HPG, their of first the was into rather but are get break now and small. some units large signature and So networks to some them are

able individually now, -- each have mean allows share. quarter is, been gained to which able networks, a hunt their with to XX we been get have offices. really What that to top go not now We different this through right the does major of market us

to is and it's in gone what around growth we see for our do QX orders us months. will come as next in now really that QX, see implants both our But we X%, from up spot those the good now developing believe, because think I we over with are has a are it's as X%. it those well allowed and to X relationships X%, expanders

Operator

And question our next Cooley comes from Stephens. from Chris

Christopher Cooley

XXXX? into kind market come little with incremental additional you color deeper? you are back going appreciate again. saw share that mentioned here Just coming these and little to gain you bit there? in I the is bit in on the board? But similarly, customers Or that out XX% you all into year? for about XXX here and types you calendar with Jeff, into you. is of do wishes your think calendar relative variances then higher high-volume where had aug that are to a maybe levels like us really We the a got by to Ron. First foremost, U.S. exits we forward the exiting of Which point you XQ. coming working pre-COVID could right look the of baseline follow-up. achievements now rebounding mentioned congratulations as And I talk I the mean maybe helping the market growth just recon you I've should jumping-off the quick I going best a think little What just kind me, well, driving U.S. about would it to existing of think retirement. volume. And U.S. fastest guess a practices. for like could if practices practices of bit we maybe on as you

Jeffrey Nugent

please? I'm add can Chris, very to the account address We're level But very close that that, structure. to a Kirk in you some let also. to Kirk, deep going context

Kirk Gunhus

have what percent our X, basically X, structure aligned we and of Tier we a it's X, Tier business that it in So X Tier Tier is own. have a that we

we're accounts. we we're it's really year up X can manufacturing to have that for starts Where deeper fulfill that Tier This with positioning year producing our done to that XX%, needs that their really Tier our business how and that own And that plant just live one get is now get accounts we in X and in own, our the is is XXX So us build that to $XX,XXX. and are or immediately. and last after develop XX%, than we've And sales interesting a particular category. year, used less our it after year. -- that we force highest we In about products, our area, us anybody tiers got loyal into. go who's that able there's is

initiatives have market and And staff stronger allow drive-the-recovery gain in share. in really so to and build their to force QX we and more that doctor our the go established sales we've used with a the relationship

tremendous big growth category. seeing that accounts. well category as coming as the new you from And we're then so And some added the

large to business XX% are small large just accounts some moving we've These So that more. are and got ourselves business, that there's us. are XX% very accounts. prove their we're these to accounts And moving are not get adding, to of yet, of the new that their XXX these maybe of accounts

engines where coming are from. those growth So are our

Paul Little

question? another have you Do

Christopher Cooley

one squeeze a one could here follow-up. I If quick in on Yes.

there great just I with business, holds, management Paul, more little And little the prior I breast go you it you an want OpEx to better bit full like in for the did sure bit there from understood standpoint. year job make where think curious. but sounds a a lift that could see was it in guidance of you margin. correctly, Just terms a you the

if that curious invest there's support that there Just we'd looks and savings that you to as to back some the margin exiting lift growth. the here be take opportunity need of additional getting think basically we're year you additional like or for just

Just thinking correctly... want it I'm to make sure

Paul Little

a forecast margins, expenses, flavor I I did have figures, thing. we and the costs operating Yes, give lowered our all on so for some good

XXX% date is actually look have reductions. if to miraDry already. reductions cost more in we quarter been a miraDry of the into you or Actually, of which either the breast These G&A, three, little XX% that. lowered G&A. we and invested against are So reduction means sustainable

when we lower year, So baselines. breast have see spend you shifted these cost this already even to

the margins, of Vesta for XX% is next saying the year which remainder throughput us company move that of XX% the is of to will our the has year we of year, of control best as facility. give we thing as I done the efficiencies we acquisition this terms destiny after the as of In that improve facility, was get that the our improve into up to margins and

saying is So That's probably purchased last that XX-month a to we margin with of been since game. been what now, I've more consistent XX- November. it

Operator

comes from Our Newitter Leerink. next SVB Richard from question

Richard Newitter

to back go just guidance. to wanted I

momentum, like no the just I queue you're saying, think is slowing. someone earlier on to the quarter augmentation of messaging reconcile the conservative. here. it in looked touch had want signs that sounds And what It a mentioned that I fourth for

that assuming looks drivers or just seems growth What step me isn't guess like worse conservative a I market it pulls back, getting share? underlying baseline if something recon improve the from gaining and be third is is. move only understand underlying be a as you're be why Is in business reason and should a it what the we would taking back? as you're be quarter? continuing Or assumption So there that help your for expectation better retracement like the forward -- if it should to the might getting

Paul Little

Good question.

not three. had I'm quarter order we -- stocking Japan First, in a

So that one. to you've out element got for back

guidance confident Hospital not environment where lot out give we're in of of is there's up. COVID, still on We're not. enough But unknowns augmentation. are Second They in business. we slowdown there. have groups total to seeing the have a to still open

the X augmentation they If expanders. the down channel. you on look Texas, for wasn't have York, might there of -- markets, California, it And been same implant our growth were but augmentation at level for New top there recon,

in just that our numbers we're would rest imply of nothing we're any year. give it for does way the is of confident confident say that -- I to guidance, So the but not not

we think reasonable. this be now right in want where I just are, very we environment

Richard Newitter

All right.

it's a... thus in you you've October not any here. like trends if Paul, up So picked It's far a hearing just I'm suggest reversal to correctly,

Paul Little

There yes. -- change was no October was before. in There change no trend lines versus the

Jeffrey Nugent

consistent. It's No.

Richard Newitter

follow-up. One Great.

flow about -- out time you better might the holds just here be Paul, and breakeven think mentioned that you line achieved? you there? when feel for curious, basically or good cash I'm this do had this. that there to Just from burn what's out get And level cash

Paul Little

It's change. off of still X. quarter-to-quarter it mean low quarter this quarter. get to was I coming kind going very still You're

least business cash a flow be of by We breakeven expect XXXX. this to at half second in

Operator

from Our from Group. Anthony next Vendetti question Maxim comes

Anthony Vendetti

our and Jeff. Ron, for Appreciate aboard, hard Welcome everything. work, thanks all

Ron Menezes

Thank you.

Jeffrey Nugent

you. Thank

Anthony Vendetti

a follow-up. Just

here. the So breast has quarter momentum in of half for the business implant the fourth almost continued

cases the infection you to the Or how pick you the confirm want plan that to Just keep keep Or up a plan infection And do to in rates rising, to place that you of and will of back here? if go in Zoom terms account have meetings? what's rising continue rates for are number physicians? going access that. if

Paul Little

breaking little I going field we plans was for But to case. grow, that plan place is this really we it heard in to -- we multiple I since up have April. in Yes, were change. in on right contingencies have to now, scenarios have May, a bit. continue our also no the business The been reps case but mean

already contingencies on can Otherwise, flexible it we're on need we them, virtual. can't We to how again, -- get multiple market. can't spend, hospitals, do how the we when into have If seeing on no reps how doing depending you're it stop change through do when plans still you demand. can and into in can they our the we they on doesn't can that. based are to. spend If a flow they we're virtual. about -- is adjusting that to, and get But ebb Remote talking they'll virtual market our virtual you what consultation, very have if

and to everything at we been breaking they've to. we place really working And end. have year, is our But would our were for the couldn't this if a -- wanted cost the apologize. environment. I we this it already adapted the say we've to, increase up -- I them you hear if to I if or have rest contingencies So we of structure, the spend adjust in bit, at have way even

Anthony Vendetti

that No, just of quick Okay. the Paul, I a most answered have follow-up. question.

are? Just the we where end in business terms of your set as are up, sales you reps, reps all are of few Or starting the more move picking to is sales into as add a you year? with you

Jeffrey Nugent

team while successful have achieve. to bring experienced, a position trying the growth in we to to the side. very additions way And commercial we at are constantly looking of people we we experienced and selective a And to been have not guidance on we're We we're looking that drive course, in question, seeing. continue this additional as opportunities we've quarter, to of very your answering objectives forward. at have confidence, give go beyond significant Long-winded we're that

Paul Little

whole business. brought always a where frequency, year, he has now recent different to that watch been since of group in has this And We we and about invest beginning to. we'll need Kirk the that perspective

ROI predictable we a add will do marginal makes we correct? sense where the but it that So see very So well, it's as it we will we territory. when breast be invest at a as fit, in business

Anthony Vendetti

then And XX% revenues of Okay. quarter question just business. this miraDry from bioTips. know were I the the the one on

or going year Just in an business? into as I on new equipment emphasis this time? on at the you is year, be going trying move customers emphasis through the in an is next to you're rest of to to there it, into business know restart but there and selling that getting to not capital back be this

Paul Little

equipment. And bioTips our and At bioTips way We'll for best placements watch there. matter I cost-effective to capital the think it. guess, a, that's point, to X,XXX to guess, we still we on is strategy made the success the still create that higher-margin and value now. drive out I focus Concentrating the in decision this drive right the market on X,XXX, we franchise given on the this to have the

this right is our So now, strategy.

Operator

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

Alexander Nowak

meet of here. calls efforts Jeff, of from the very you Ron, from procedures backlogs market? the between think the in first the to do quarter you. the here representative underlying appreciate in nice the all, pushed of in a to Jumping Do Great. the quarter QX But any few last you five in benefit was or orders think volume the pretty demand of here? came years. all QX Or getting

Jeffrey Nugent

off significantly. demand. of there's surgeon are that think I question of pent-up effectiveness that of was but I community Well, interest I'll let effect level, practices. certainly about is we talented up And second That that at they the overall, Kirk add extremely the no part we there the it picking that their certainly the an trailed talk it and beginning see own to of quarter that. think business leaders plastic often effective in don't But

So true it's add that? to a something partnership. you Kirk, a to combination like would it's But and

Kirk Gunhus

is think Recovery your both. do delayed has Drive with QX question So seeing started in initiatives and to answer we part key a the the I in We're it both.

to new more product line, to are use recently to in the started also just itself their get depth XXX is we we add in and QX, of QX starting starting that QX. And we see of brought you other in, The surgeries. start will believe we're that that and that offices really thing starting more to those more in show

there's that the relationships effective the So new our starting in. have we that's in in really to momentum a itself show the we practices then accounts lot coming we're that initiatives multiple launching see and when of Recovery Drive existing

Alexander Nowak

But plastic kind the my a there. a with breast tacom getting has surgeons on the That's good incremental that Sientra sales clearly, job you've of really product been into implants. guess question AlloXX really generated and second helpful. done I good is, ties these with good like some foothold And you've

how -- filler a make adding about you better might matrix cellular else as be that breast implants Ron, actually here are but products this such of to So picture question the sort thinking bag? might void a solution? sense bigger add to tacom or Anything for to

Jeffrey Nugent

the of And And one in Yes. some And at in to time. is that's involved our that couple our to program. of have adjacencies portfolio have the think been works to the But consider, existing those the the beyond products. are categories cleared. process we we've for regulatory getting yes, particularly things looking of I in a you mentioned these add the these -- innovation results

a we have looking there's we're that confident about, very we're did So include couple script in that more but that we the at. always

Operator

And I'm And lines. our for Nugent the questions to Jeff remarks. to no phone conference further over from closing turn showing any back I'd like

Jeffrey Nugent

most no the faced. I challenging much, enough say overcome can of Sientra. this has only rewarding operator. all And say and I very a years and past Thank able the being support And to in of in real and way we for one challenge come the at you team whatever here been career. and can't that X-plus there's have long experience that question adapt from the commitment my we

to with support, very with be transparent that the and that, that, expect we Ron good in going confident hands to So coming I in, with we're I'm this company your is can we But you and as appreciate continue. all to very with as be. continue momentum possibly

So very much. thank all Have a day. great you

Operator

now you wonderful gentlemen, disconnect. your Everyone, call. and today's conference Thank day. for participation, a have this you and concludes may Ladies

Sientra (SIENQ) 10 Nov 202020 Q3 Earnings call transcript