Earnings call transcript Q1 2023

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Operator

And welcome to the electroCore First Quarter 2023 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It’s now my pleasure to introduce your host, Nicole Jones, investor Relations. Please go ahead..

Nicole Jones

participating electroCore for call. all you in earnings today’s Thank

the Executive Dan Brian today, Joining of full the for on A are is company's XX, Chief ended electroCore quarter Officer; March year results press Earlier me today copy Officer. website. Goldberger, and XXXX. and Financial Posner, released available release fourth the Chief

of Safe laws, include Before statements Private during forward-looking make are we the be management forward-looking within to that statements will begin, contained securities Securities I'd you Reform Act facts are Harbor call not like historical to the the this deemed statements. pursuant made statements meaning Any Litigation should call which provisions of to be of statements that federal the of in remind that XXXX. the

without and that All by based performance, and any differ various assumptions. these involve forward-looking operational to or events or These current and forward-looking from guidance, actual are or expectations, materially those future implied estimates uncertainties including, anticipated assumptions limitation, could risks statements, cause financial results activities or upon statements. company's the outlook material

you place should on reliance statements. Accordingly, undue these not

For uncertainties the business, with sensitive call the time statements, as May required of associated of information, new see update risks the today, to XXXX. contains or company’s disclaims that only because This or whether revise X, any filings a Exchange the financial the conference or forward-looking broadcast projections or with company’s future events is live otherwise. as information Commission. accurate and obligation, except of please Securities electroCore list intention and any by law,

over to With that, I turn will Dan. call the

Dan Goldberger

and us for everybody, joining on you today's call. Thank you, Nicole. Hello thank

increase report the Quarter the to the of for another nicely XX% over to million XX% prior first XX, March with thrilled XXXX. quarter for sales XXXX, Gross year. expanded revenue a are margins We period ended $X.X record of

active late in two human We business TAC-STIM lines non-prescription direct-to-consumer wellness brand duty a personnel. to and new grow product XXXX. headache continues for Truvaga worldwide. military prescription for our launched as Our performance

in are as quarter our sleep. for currently and Both products for direct-to-consumer we excitement acuity, Truvaga this stress, positioning wellness available required exceeded the our expectations mental Truvaga new product No prescription about the is are exclusively a through e-commerce future. first platform@truvaga.com, driving category. is and

this Truvaga the $XXX,XXX accelerating for recorded marketing first net raising sales we the and of initial are on Based quarter line. XXXX. investments success, internal in our our expectations product

greater ratio our this what mer has advertising this below revenue been We're so So far which carefully monitoring rates have industry return or on far than spend, XX% media been year. the a return well, X.X. efficiency year, calls as

sold these the being We training, human Laboratory sustained if attention, TAC-STIM the Force performance or AFRL. business Air defined reduced we as fatigue, is the believe Air we Forces or for Force and through maintain select metrics, improved Truvaga Army Special a as scale Research prescription can by for mood, that without nicely can year. improve units move to and accelerated

evaluation as deployment. the line by first in of with is later and in a active product to product. and Base expect prototypes bulk AFRL, collaboration developing parallel, Patterson encouraged In pilot to for for of this that product for we're TAC-STIM lumpy We in generation recorded the internally Force Wright revenue purchase sales deliver duty growing I XXXX, Air $XX,XXX I'm summer. units to for growth this likely Note be revenue X.X TAC-STIM known funnel as quarter this second

prescription headache VA Turning DoD to be to continues hospital our business. The channel our customer. now largest

of million $X,XXX,XXX benefits, grew Covered covered DoD in XXXX. patients $X,XXX,XXX to XX% first QX representing XX that is You'll therapy prescription by channel in about from quarter the gammaCore XXXX recall Administration's our Sales to live. free Veterans in VA the

Prescription the VA treatment first facilities compared in US XXXX. grew through XXXX to quarter XXX sales DoD of XX, XX, in XXX March $XXX,XXX of from QX gammaCore have XXXX. products military through commercial products March as purchased to GammaCore prescription XXXX XX% and $XXX,XXX

is benefit quarter growth plans, Caremark the While of of certain have covered the including of from of prescribers the Scripts to Express XXX and pay quarter and coming 'XX X,XXX the by gConcierge. is end XXXX. first gCDirect GammaCore from CVS our grown These cash channels channels, at end most first at of

indicator and leading the could prescriber through prescribers first a growth continue during numbers future be We show XXXX. increase added XXX quarter April, We growth. XXXX, strong in to our new of the prescribers of believe

with ship how will electrical Joerns Joerns we work the patient system. and hospital billing to will with directly believe a and a be VA Healthcare, million within select model to with announced we XX adjudications managed business than and handle provide more year, The in distribution will will Joerns servicing and agreement support. system. collections while health covered care similar lives we Last add half LLC, that a patients

Our clinicians field sales within managed care responsible systems. team educating those is for

continue XXXX, We channel late notified work revenue do month. on first prescriptions the through that in we've have this being while been and any last not first processed implementation, the were we Joerns with to Joerns, in the quarter of

as healthy 'XX Revenue XXXX. quarter first the first States in to to from of for the $XXX,XXX XX% channels a outside compared United of $XXX,XXX quarter increased the

included United fees the NHS. by or balance $XX,XXX the while Health National Japan, prescription of sales in by of revenue Kingdom Our funded most in Service U.S. generated GammaCore was licensing the

NIH, Emory Institute April announced Institute initiative of helping three of gammaCore grant National $X of Now, Georgia NIH, has XX, conduct a of part on on clinical end NIDA, pivotal treatment million OUD. and turning Institute trial the use our addiction clinical HEAL to that the to through for a Drug Abuse, University to the long-term XXXX, nVNS the year progress disorder, or awarded Health, we of National Technology, opioid

endpoint subjective withdrawal primary the between will Double-blind on sham-controlled day nVNS difference the the treatment The will the two and withdrawal grant, sham initial be be to study with period. and efficacy randomized of study patients score XXX three of opioid peak approximately OUD. by funded recruit in

the Laboratories Force data stimulation study our conducted improve study announced Defense's Research Department The On Agency, The their was within the at the Premier Language the Language XX, to nerve its U.S. by that learning. of reported April California, DARPA, Project Institute Truvagas second ability of neuroplasticity non-invasive was language School. program. 'XX, Air Defense training from Defense Research in supported we study Monterey, the Advanced targeted on

significant positive of focus. showed The our over sham recall. on energy Participants study also nVNS a and showed increases in treatment receiving language effect significant

of entitled Non-Invasive training Brain XX, paper Volume Vagus March of of a each on the Stimulation and Injury. Improves 'XX, Model Nerve the course Brain Over session publication Outcomes Lesion Traumatic in we Neurobehavioral announced a Rat

showed significant but In of in the deficits all the the control Neurotrauma, Review were these Peer dose nVNS high deficits, reduced group of group. Journal

be exploratory Additional of TBI National development RXX and research by Disorders work on Neurological Institute an nVNS the grant from and potential will funded on benefits of the Stroke.

pipeline We will continue provide updates opportunities. and our other to about

Now, I'll for a guidance of and over turn Brian other financials review our items. call to the Brian?

Brian Posner

$X.X prior net the an due of ended is recorded million $XXX,XXX Thank you, compared approximately across quarter to in period which year. during XX, of an to sales XX% channels. over net Dan. represents Where same the the XXXX increase increase electroCore increase sales $X.X million The all XXXX, of March major

first margin million of of compared to quarter of in XX% the Gross XXXX. compared the quarter XX% XXXX was was for operating to the compared as first $X.X the quarter Gross first XXXX in of quarter first XXXX. of million as profits expenses to first million in $X.X $X.X were first for XXXX. the XXXX quarter $X.X Total for quarter the approximately million of

expense was around targeted XXXX million intellectual of future to development therapy primarily smartphone platform, integrated and the due including XXXX. to our of therapy. the was investments the and support Research to quarter the connected, increase first in in of use of delivery $XXX,XXX as This of quarter the smartphone Non-Invasive iterations property first our $X.X delivery compared

Selling, by well compensation severance to targeted first as The sales general million our was XXXX to the of in marketing in and stock-based by offset decreases continued in commercial expense $X.X was quarter quarter investments administrative driven million efforts expense. the charges and of insurance compared increase for XXXX. support $XXX,XXX, as as $X.X and first

in of million $X.X million loss EBITDA quarter XXXX compared XXXX of in loss Adjusted quarter $X.X was a the compared first net in XXXX. to million was $X.X XXXX. net the quarter of as first of million GAAP the first $X.X to quarter first loss net of the loss in net the

loss investment Net cash the net quarter A increase and million reconciliation of used was today's approximately $X.X press loss provided million is in due compared in tables the in included evolution to release. primarily our March the XXXX ended in in financial expenditures. GAAP to to This has EBITDA operating XXXX. nine first quarter net XX, activities been of product $X.X as in adjusted GAAP statement

We to expect taping the in off remainder of the investment the year. begin d and level r for

Total liabilities compared approximately XX, XXXX cash XXXX in million at as used million XXXX. from of X.X XXXX. activities December of the the December equivalent contributing million decreased first restricted and of quarter March to net XX, $X.X XXXX, as cash approximately as million as to of million operating $XX.X $X.X of March total, XX, to cash in Cash, $XX XX,

channels growth We that net more the by of for year. believe Truvaga guidance XXXX. continue products will than the ahead $X least full the million representing revenue headache $XX our XX% more million, in for million TAC-STIM year new be growing our million brands reiterating are we revenue Looking to full $XX and $XX and XXXX, XX% prescription full to the more at than than from for year, over could

the we've expect cash continue quarter decrease expect net of significantly net XXXX. to average cash complete the development cash XXXX revenues the to our We to We cash increase. Net rationalize will usage products below in year. progressed usage decrease be usage of through net remainder other expenses. new we Therefore, as as and operating in of the usage

back call now turn to the And Dan. over I'll

Dan Goldberger

Thank company's and you, long-term prospects, especially Truvaga increasingly Brian. TAC-STIM. very our product with our I'm the are quarter about first operating results, new and lines, XXXX enthusiastic two in we pleased

greatly our covered cash business models have in therapy the expanded prescription investment market. pay Continued gammaCore and

by the facilities growth the of quarter and of continued in XXXX. prescribers revenue number of reflected first As number realized

and in direct Forces Force right are will through financed channels focus a performance their generation look as investments commercial a has human to our TAC-STIM of started tons progresses. in direction, product will year, trending an I next being platform next to of a our we've forward adjust the consumer Air part year metrics is we wellness launching to We Special as continue e-commerce product program. the believe year. X.X by generation this model, be business next the which in in and boost all potential our with Truvaga app-enabled offering, the

human for duty for expanded military from our adoption of among nVNS different of adoption future in in develop interest quarters. the which to result military may performance our of accelerate A could TAC-STIM pipeline It branches product, incoming the years. active continues

gammaCore prescription and our grow the XX supported about therapy clinical performance for XX based customer field, straight We field. and small our DoD experience in by sales or the presence Demand have to team channel VA XX in commissioned team. by the agents, of reps territory on and managers now our increased our managed continues business

Note that first the $X.X to marketing XXXX. in the of XXXX $XXX,XXX quarter million expense increased and our from first $X.X sales quarter in million by of

led $XXX,XXX Brian almost in disbursements revenue explained. to increases in in leverage increase of operations be as the quarter, opportunities While may time. used The timing there first P&L, in if cash sales substantial a grew over the certain real signaling that

investments, Quarterly intention R&D shareholders, products is of meeting and usage the expected quarter, the new go due anticipated to to cash reverse as expenses split one we Gross Our during our the around margins declining around on than we to expenses. discipline R&D XX% and peaked time revenue costs. maintain operating growth. likely severance special greater through year spend decline had and

That post-traumatic and featuring product out, app performance we we're be wellness can chain. XXXX, to our solutions. provide supply Further platform prescription stress use new launches towards up health that disorder. human and for for in headache, indications technology digital enabled working launched disorder opioid product additional gammaCore establishing ramp will in Look treat our or as

including mental beyond, efforts. business see We channels. our sleep driven development and of XXXX increased growth prescription Truvaga both US growth headache potential to Further marketing drivers wellness, VA the in for and consumer product commercial DoD the and many for direct acuity by remainder of in the continued

Further development military human for in of active the TAC-STIM performance beyond. duty brand and the

XXXX into facing and label enabled XXXX. OUD extensions that facilitate business app product PTSD Our and new gammaCore prescription unlock solutions platform will models and digital or consumer and in new health

effectuating Finally, requirements reverse We've with and March split X, one comfortably requirements since in split. for February, XXXX, any we on implemented listing lifting XX been above compliance XXXX. a reverse NASDAQ regained the

the This time call I'll the line Operator, to for questions. over operator. open turn please the

Operator

instructions] [Operator from go Ladenburg you. Jess Thank comes ahead. our Please Paulman. with first Cohen question

Unidentified Analyst

Hey, is Jeff. like I'd actually actually this what guess for DoD with for you taking Thank is I the VA destiny on and to questions. our channels. start

now correctly, XXX, heard have XX reps. You if facilities I and

Dan Goldberger

XXX.

Unidentified Analyst

XXX.

Got got it, Got it. Okay. it.

more So can you balance and beyond. you little the, throughout that kind reps, have obviously growth see a and the about growing the then of bit you talk XX year the it there how of the now

Dan Goldberger

Yep.

thanks The VA for the so So, basically tactics. hospitals Destiny. have two opportunity we

end within going And customers, new second those is us first that care existing our customers. ordered customers deeper require up of way these found Both of based sales street. get kinds hospital and on tasks from before. of is new of still showing the taking feet hospitals The up We just opening VA without those showing haven't day existing to haven't the the at reliably. the a and

at And in, as where the as home that's really business on customer then targeting our them medical office, new involved sales us up. managers our rely agents facilities our, local specific commission team of activity. affairs in us agents up, the them we opened the territory And well get straight open to to team, have allow I call the to we through. follow experience Many our, once our sales

to are expense our expense. of them. sales about success. in they're also to our we're fixed existing no just facilities. at as colleagues some within with well and variable and looking the facilities deeper their those better And agents go all And their doing hear are as and sales agents success acceleration network this in more of where one more begets success ability is who neighborhood be reach clear, new to areas as associated There's the We're,

Unidentified Analyst

it. Got

Okay.

Ha said at both has a you had last, reps. all? XX And you -- Okay. that Since changed

Dan Goldberger

That's Yeah. we of last of year. last our we from, the where together we XXXX reps were a put as increase end that's -- to dramatic a at were just starting network exited year

Unidentified Analyst

Perfect.

TAC-STIM then yeah, go X.X? calling start some have then of making I'll up. now over and little encouraging. you're differences That's between you. a Okay. Thank talk TAC-STIM And you that Can about really the some I'll a and bit perhaps or to it. X.X with just you're as let's the device then follow advancements And well,

Dan Goldberger

Sure. Of.

our has a so air hold to So closely courses Force at working in rugged Research Laboratories week. speck had version pleasure Truvagas mill we, just been last with develop of great us some the Florida operators the, And special nurse showing personal actually the, in, use prototypes reliable handheld field stimulator. to I

them this it's about far And because they're generation excited configuration field. be getting very useful going more to next to the in

to going are special we're timing is operators it. quiet the when going excited forces it. And, as but excited and importantly for launch, to stay timing as product have the that far very the, more are, about about maybe about we're, So to we're

Unidentified Analyst

Absolutely.

difference I Truvaga? in great. a if to pretty could over type over Thank Okay, available. a want seeing And you. to there, huge or wondering gamma demographic demographic Are you Truvaga. bit given that is little data change talk and then your that's counter product you I this your readily an,kind about between of the an the bounce was

Dan Goldberger

conclusions internet and don't is search spend, our really and this younger the that are to our are still of of I younger grant So and we're in that's our, the more small numbers Truvaga demographic demographic. spend it's But things. very the is targeting currently with and social VA side I our, affluent. media and by many it's, our, numbers most on closer. hospital the and But sales what draw at commercial But media want the, personas spend through different on skews really system, and our a U.S. point, gammaCore I, the from think small scheme too

Unidentified Analyst

level going I expect The Yeah, should Okay. have guess or a we And expansion, with the Got this start that. is channels couple see I Brian, just volume get ahead of I to both? of for driver kind gross a then or myself. is it. And forward? margin you. let's

Brian Posner

around okay. cleanup past been try right you. we we consistently in qX. qX, Yeah. the with that's the to up we've were eighties without where year, in we keep to I'll some been in No, for cleanup that finished but on No, sheet the so we had XX%, would've balance down

increased a of way more I So labor for I that a overhead. in we that, assume think think place right to the that'sfor, and combination revenue, is that eighties now it's absorb safe

also is well. gross margin more and longer acc to as creative more also continue which sell duration We products, to

Unidentified Analyst

it. at in then Okay. marketing, greater are percentage a Thank I what in maybe kind of basis investment a terms of promise, one, Got you. investment And forward? going last looking you on

Brian Posner

talked so back marketing to the envelope and in a Yeah, sales less little of I, growth at expense than the in sales our XX% revenue of grew and compared growth to bit expense I revenue. the sort marketing our, our about and

I a marketing revenue in So line. that think think grow way about be going might reinvesting we're and be to that sales how to good to

Unidentified Analyst

Perfect. in questions. many for I'll taking back it Thank Well, my queue. me. does hop Okay. for you that

Operator

Next John Vandermosten, question comes Zacks ahead. Please from SCR. go

John Vandermosten

hello, And Dan and Brian. you. thank Alright,

on lot do. something thought wide You it just guys the have learning how even of I profile you the, of is about. andwhat had great of, lot a can doing that releases device else press just a the And,language haven't

distribute profile and, up on and of But and of right? in have rely and areas And the you doesn't eyes a really I'm that product. you've as kind have you know seems also on, you,it, the also effort opened channel that and of about to the you lot product without it on safety leverage that seen research,we've well, also leverage our Truvaga and exercise, benefits FDA what a can get that more doto the But,in, wondering,how that rely the can talked on in, a other have? to you channel it

Dan Goldberger

should stress, versa. is our draw early stimulation wellness we and the, days correctly for have and to fundamental acuity, if the but brand for vagus carryover this going we're, you're right? the to John, is mental Well, We're, to you're, do for to this vice consumer direct us, attention nerve right, sleep absolutely of strength gammaCore prescription and, benefits for

really work Force campaign Army are and that we that's, work Forces Special Forces of used I'm And then I can Army as a example, for forward all start that exciting the yet. talk looking Special doing And day the really that to the Air Special Forces. about by can't

three correctly, are on if all build each other. brands, and do we this reinforce to So going

yet It's from non-invasive and, discussion and opportunity relatively broad-based a the us, talked holistic is about much that ultimately really haven't society, course implants forum of minimally other, well. too society. yet a, Truvagas including healthcare for focused all approaches. and approaches, becoming the by as and on professional the lay another The we and and, method young of by I and invasive for vagus a operation think But society that nerve by public the of nervestarting of is neuroscientists which academic professionals, is it benefits

John Vandermosten

a some the do NHS you And your relative margin to But kind basis, to I Okay. a of other very, prefer, of the guess, revenues of, we're low with still as businesses. of dollar or, prefer do on source? early we, from you revenues VA Truvaga, Truvaga some very in stages

Dan Goldberger

of low, in the gross three know, You that of brands the, these, of margins. all are XX% now right all

in the because insurance. expenses all fixed small still rents, very spread and helps the, public they business of we're and, revenue So us company, general public, expense, a the each company the help other

John Vandermosten

with So, par kind attractiveness increase, it like it kind now right Yeah? Truvaga sounds is fixed leveraging of efforts. the one it -- other just sounds as the of the, the, the on grows, might

Dan Goldberger

absolutely. Yeah. Truvaga, Absolutely.

John Vandermosten

three is that's wanted Yeah, it and study… year income statement? your And, was helpful. really through yeah, mentioned grant. that no, the How at a to to Okay. look flow You going NIDA

Dan Goldberger

It's well, that…

John Vandermosten

I'm Dan,… oh, sorry,

Dan Goldberger

and IDA execute those grant the is, the going the VA, The, is the all Hospital, that of University Atlanta VA to is Emory to Pivotal money entities to trial.

the it's to use. think an Pivotal from offset the XX treat five label and maybe because foundation it's submission expense to opioid will a it is K right symptoms trial a, the withdrawal about way of [ph] of ultimately become extension So that a

in that So don't have it's money in to spend order additional indication to get future. the we that

John Vandermosten

year And the you, that, date? study. Okay. anticipated was start start date you, three it what or on The a was What,

Dan Goldberger

the, on process towards which in coming the So enrollment start complete they that the in we will months. in execute end we optimistic case We're the trial can regulatory XXXX. of ha will can XXXX

John Vandermosten

had in help predict from Great. received there the come? look thing them. Jim term page, median you Are license that for term release And last we us a the that announcing fee any near should when press may to out annual you or So… revenues milestones royalty

Dan Goldberger

We're, quarterly they're license and, basis quarterly a making revenues we're payments. and booking on

sales? I And the to horizon into think really over product is what turn is over, probably that's there. you're planning still it probably when that's asking going

calendar going Our be a the friends at least are collected going [indiscernible] working to of to Ministry there's accept which hard of still pivotal Health high the up to Ministry with They're that trial, they're the United is to to the likelihood was small Health. data conduct but get chew in that Japanese good at forced a States, that's, pivotal time. in-country lobbying

John Vandermosten

as you Got much. And it. so right. you well. All thank thank Brian, Dan,

Dan Goldberger

your appreciate John, John. Thanks, support.

Operator

from Next ahead. Wainwright. question Please comes Swayampakula H.C. with Ramakanth go

Ramakanth Swayampakula

kind translate more as indicator. A of we and is you Brian, quite Dan them a new of obviously lead there approximately so in number company. quite terms a in are quite you. interesting on which that a Good the know the, that of six is discussed thinking additions, like does things of decent a revenue? Thank business, prescribers that stated you to the how commercial a, believe you're I pieces you X,XXX I little prescribers a and few quite to said bit added. on of, are would few, have couple five And, afternoon. about understand How, this is

trying just basis? you, coming them from how, a regular how to on conclusion say we coming is understand I'm are and scripts getting you lag that are of on to when and, do the like, to So board, lead-in, time you what thinking to return how, how

Dan Goldberger

so that Yeah, at counted cohort our those first be that we in of prescriber XXX as engaged metric we they for that, so, one order least the new quarter a prescription filled that prescriber. that that to is in

already revenue. And So they're generating there are two metrics there.

The prescriptions many are installed said for come about are refill of first prescriptions the how to if many back for to prescriptions. they, the of how question, will, is that earlier those So happy margin refill new prescriptions? going product refill in And and order are but to something we and, then an prescriptions Brian patients need you build higher are new base, us, mix

So that there itself. are on two this ways builds business

and a good back The patients and have prescriptions. once their their patients prescriber, engaged they that population on within and, for back more experience a patient come stay to therapy getting first if we've come refill and prescribe patients for their getting is of

Ramakanth Swayampakula

stages. what, you potentially become that then, statements know something that, happen we what to John's you, very to for needs healthcare yeah, for to suggesting I this Very you get so are your done? with, good. what And you, when when early really is doing also you close just about very, are could made

or I'm how, how take of understand the would, like, April. long to like processed trying said become been how how, just in how have just would first it meaningful? to late that could set prescriptions become You But meaningful

Dan Goldberger

revenue this answer short we the it's exit that we is the, going so be Yeah, as think year. meaningful to

are, system bumping to get then out particular and with Joerns patient. plan out where deductibles. have they first the called adjudicating And practical the the identify then the Kaiser dispense these to where patient that is patient, to neurons before from they to we they're respect to collect and on, the individual way prescriptions which figure are It's and prescription. has a matter their As through copay can first, they that co-pays benefit figure

out has scalable. And sorted to in and so to of start steps it's systematic far one become out, but each bureaucracy, once sorted should those it be more the

bureaucracy got as to calling field the hospitals a characteristics same take same it's as And Kaiser the business. the lot that's of the on scale to start engage force the so as we're VA going facilities the that sales smoothly VA our business. to prescribers to calling starts hospital on to And work

optimistic I'm always, want, we roll I'm covered I optimistic XXXX XX lives. that to access as have very So another it's that it's than to going we'll but fundamentally take million longer into

Ramakanth Swayampakula

kind good. a of two-part Then a is this Very question.

pricing Truvaga of for, the contribution think X.X you what it we these of from, taxed So things? what each the how contribution for when about then TAC-STIM Umcor these one in is is each him, different one know how, for is the, how, margin different these? the the, is And is, from margin also terms of

Dan Goldberger

a for And question. So it's brands small. very are, it, our good numbers it, new still the are very

the currently that internet the So Truvaga a profile we're going $XXX the, evolve. for first transaction. The selling product on margin to is is for

know, point. of kind pricing those of is certain profile. to very TAC-STIM is special that's each is of you distribution units right limited The has forces. price that, and now transactions So one its the own And,

So right pricing business information of very now not, it it's, not complicated, it's not lines sharing it's it's, we're these larger. substantially un until but publicly, that much

Ramakanth Swayampakula

Okay.

different it's is So the, different these among any that or the the lines me line, except of it's again, uses? uhor. the packaged brand, technology differently is, or for last four devices, all question same brand from Is Or right? from

Dan Goldberger

the strength Truvaga is So same is the the safety as our wellness is not energetic has strength. way direct prescription that I our product and, like and product prescription to is describe offering. to GammaCore exactly that but the it consumer profile as same,

XXX store you I dentist get to get corner milligrams it, talked or prescription under the about you much know, can of may pretty is brand the and ibuprofen You milligrams for Advil But also of my we I any know any, Motrin, go go and doctor a have to ibuprofen. can to. which but store XXX want

direct differentiate prescription and strength. So lines. then how we're the trying, And consumer that's over how the ibuprofen, counter we there's, there's that's that's, there's product strength, to those

Ramakanth Swayampakula

Okay.

tougher to truer So have going a me it'll not language, or time. is a teach different

Dan Goldberger

No, No,

Ramakanth Swayampakula

You. Thank Okay.

Dan Goldberger

Although is evidence you're there mental there, evidence pretty there that, sharp. but that helps that is acuity, it

need it. don't You

Ramakanth Swayampakula

taking Thank questions. you. for Thanks my

Operator

question Please Brookline go with Capital Next Dolliver from comes Markets. Kemp ahead.

Kemp Dolliver

you Good thank Hi, and afternoon.

of from of you S a mean, how we a about When think d talk tapering about? Just reduction r and much questions. I spend level, should couple QX

Brian Posner

Yeah, we're Dan. Oh, go ahead

Dan Goldberger

I ahead. got Brian. No, No, it. ahead, Brian. go Go Go ahead Yeah,

Brian Posner

specific, I know, that give the but of we the, end we're So it, the the significantly. were down call, guidance gonna that about think expect this dollar X,XXX,XXX go on you number will year don't we quarter. by

Kemp Dolliver

were the gonna give away Dan, goods? Okay. you

Dan Goldberger

was I gonna him, than Nope. than be Brian. vaguer even

Kemp Dolliver

Fair All Okay. right. Enough.

Dan Goldberger

word use gonna Yeah, wasn't significantly probably. He the

Kemp Dolliver

Fair enough.

regard prescription claim know, you You currently length set where, with the running you is the and in Kaiser know, and, up about it of and process you adjudication talk when JNS to the at least currently would And once world's processing I the, normally? versus but what's experiencing assume look with you're the you're claims of you process pretty the you're, like electronic. what for VA, know, length it what's you're, well set, get

Dan Goldberger

flows a XX there's automatic has probably systems on to Jns, that's that always around the deductibles world, that Kaiser copays. step collecting both that process in reach or always the the, turns day There a And average. the individual so of is lack a out and Kaiser once loaded this, prescription it and a in to in DME the that's, generated is is this a computer everything a in facility goal into it's is Yeah, through.

in very, know, depending You channel much and benefit are now. we plans, that's have on numbers very right but the some that small faster

I'm, speculating. I'm, So really I'm

Kemp Dolliver

the in was you. number. inventory you we you, you know, reduction at I was raised, you there Q looking And talk dynamic about, when know, quickly know, and XX there for a the And know, know, significant pretty you long-term You Brian, and, can noticing. Thank thank you the Okay.

track obviously to XX? know, down it, say for are the You goal write when that we consequence. to disappear just Cuz avoid, avoid is by early here on any

Brian Posner

to news up selling expect what but and we our date the think we more see write a, we're Yeah. project left, revenue current's you right we're year yeah, that the great selling, the an we guidance. risk next our to don't sheet? as a sell balance I two, inventory to question. from good of I, the now is you know, one, it's going the down because there's in the can So inventory, have it's a do

So long eventually next good period. news. traditional, that's goes confident about we be we're, won't current the have long selling month from more term more inventory we're it'll term The means, into that current in be that inventory, But a we'll asset. XX just,

Kemp Dolliver

that. And, I'll, I'll and on pile look,

his years and job monetizing a done we Brian ago. think inherited have great inventory several that that of Kudos. team of, I

Operator

Next question Group. comes from Nick Sherwood with go Please Maxim ahead.

Nick Sherwood

VA the comes the Can Good the for get Vega? speaking of traffic driving afternoon, of LLC. are organic e-commerce a word the a into is some what's that little Nick you from of for Maxim Group, Sherwood you or Anthony mouth detail ETT growth this that seeing Tra just lot channel? more platform? on digital Is from marketing

Dan Goldberger

our we're social I some about in Yeah, organic, and paid starting of these marketing media first TikTok. techniques. of We've up there's lot search. so there learn early on and there, think started adopter. quarter is influencers Most just to to ab on open some testing channels doing went live we a different was around we're the digital We're, spend

So we're pretty excited.

it the and quarter, return those. increasing feeling first and on expectations far exceeded As I ratios, now in script, the about said we're comfortable spend the that it, advertising, our and more and maintaining more in spend

nicely. scale should it So

Nick Sherwood

questions that's the And I I all Okay, that perfect. think have.

thank your for So time. you

your Appreciate interest. Great.

Operator

like no for over to closing are back comments. time. ahead. Dan would at turn There go Goldberg Please the four this further I to questions

Dan Goldberger

today's Oh, new to, were good hope this thank also cohort patients. thanks therapy support I healthcare I special therapy. agents answers. questions. gammaCore our working and the helpful Lots are their give joining you I thank their to wanna of to our we we everybody in our appreciate call. And of operator. of all want professionals employees deliver to and tirelessly sales patients, who amazing our of loyal to

Drug and, and of been We you initiatives and new Institute expansions. tremendous have greatly unwavering of amount our Air made Abuse support. from a possible National for Force supporting and without product progress not appreciate and your would Research support on all the and, We've Laboratories label

So thank good and you evening. have a

Operator

now The conference has concluded.

electroCore (ECOR) 3 May 232023 Q1 Earnings call transcript