TNON - Earnings call 1 2023 | Tenon Medical, Inc.

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Operator

Greetings, and welcome to the Tenon Medical First Quarter 2023 Financial Results.

As a reminder, this call is being recorded.

Your hosts today are Steven Foster, Chief Executive Officer and President; and Steven Van Dick, Chief Financial Officer. Mr. Foster and Mr. results XXXX, for over before from analysts. present ended first to will covering XX, March turning Dick of the operations quarter questions Van the call is these our of website, www.tenonmed.com. released A Relations company's results release the Investor detailing today press and available on section was

Before the that predictions, include estimates I other information formal would everyone forward-looking. to remind may we statements and made webcast be begin might considered that on presentation, like the call and

what to statements the to forward-looking our represent are that judgment on holds, these subject future While risks could current they cause differ uncertainties and actual results materially.

cautioned opinions reliance on only are this these our the to of reflect of date which You place as presentation. not forward-looking undue statements,

or these Please any future factors results will keep our to in statements that forward-looking events. are we attempt mind new some predictions. our revise release present revision Throughout publicly of we information to not light to in business affect important of the discussion, that or may to today's ourselves relating obliging

factors and this XX, the is complete should dated over prospectus For a the ahead, our review at Commission Chief the of Medical's April turn Officer, you risks, sir. and particularly with Securities file Risk Please discussion Executive Factors, go other on heading time, under which Tenon I'll Foster. Exchange www.sec.gov. At XXXX, more conference these to Steven

Steven Foster

First afternoon Quarter and Colin, Medical. Update good everyone. to Tenon to Results XXXX Call Financial I'm welcome and today's you, Thank for to Conference pleased you Corporate

surgical commercial or is care. XXXX's that patients chronic sales delivering focus ramp growth support conservative on During deliver Catamaran go-to-market top revenue team to designed with and for the procedure line primary building and our with surgical refined commercialized to pain System fail degenerative management our continued joint our on we fully infrastructure strategy. to sacroiliac sacroiliitis first quarter, option

specialists trained technologies, who and and We area sales have are or workshop aggressive clinical surgical local program. SI been managers, utilizing significant conducting training experience an on with procedures physicians independent SI targeting have distributors

channels, wide aggressive informational efforts. a marketing We supporting Also, are solution social of showcasing and websites our education surgical workshops. training hands-on outreach papers, includes our through is also variety and program media conferences and that promotion manual, white and unique an

We local process a workshops the to cadaveric combination physicians. of and deploy continue model for timely Catamaran and our efficient to physicians synthetic creating our train a lab System, on

increased a these during our with critical completed of Confirming a drive year in are XX% System. the quarter, number growth All activities the quarter, to of approach designed ago resulting sequentially. revenue to growth acceleration XXX% Catamaran compared and surgical procedures in first the our procedures a year-over-year XXX%

clinical research line. to time Turning our

to or treated enroll I enrollment providing into We studies, our and well have into scores, patients to strategic strategic and assess the designed X patients X look is During outcomes commitment to forward and The across recruiting represents with validating on in is XX the our these updates sites now begin respective post-market The will degenerative sacroiliitis with and fusion quarters. out to study allows patient to up and the as clinical clinical up we System. study patients Catamaran post-market patient continued XX centers our first as strategic pain report country. XX advance quarter, studies. research study differentiating to System. designated post-market outcomes CT-scan Catamaran our XX of X outcomes and multicenter investment reported clinical joint sacroiliac our recruiting our patient radiographic the enrolling coming to disruptions in sites other objective with studies The study Catamaran continued assessment months. This with to in and patients

commercially and System Catamaran to we well reimbursement are launched. build is revenue and The ahead, growth. now positioned secured Looking FDA-cleared,

our debilitating are revenue SI ramp Early from its with surgical their patients joint show and by issues. utilizing delivering to We procedures suffering providing enhanced treat number from on customers our the promises of system system. the results physician increasing the an encouraged option

I'll the hospital further Mr. over Dick, to to the increased outpatient increase System drive also done our are selling Financial for us the for Joint procedures a price. With SI setting. SI our by for will allow in to We procedures Officer, and and Medicare ASCs reimbursement XX% encouraged Van XXXX fee procedure. Fusion the Chief Catamaran increase Joint approximately our that, in adoption the performed of significant We these by in turn Fusion facility average believe CMS discuss XX% financials. maintain it

Steven Van Dick

succinct you, Thank that available The a afternoon. release this full in crossed wire our the financial results. our of is press Steve. review I'll give you breakdown

Our in revenue procedures XXX% revenue year of in the an number Catamaran in System first was the of the quarter quarter an used. increase was period. comparable the increase of surgical in in XXXX, which compared to the The to $XX,XXX was primarily XXX% $XXX,XXX due increase of the ago in first

Gross the revenue $X.X the ended quarter a in losses percentage a $X.X future our and a produce future. first increase X in XX, the the a general totaled to the function XXXX due XXX% of million were a procedures. first growth. Net an was surgical increase first additional in margin result incur XX% the in operating the was of XXXX sales negative for losses loss to expenses loss sales and Gross period $XXX,XXX ago the gross the compared expenses marketing compared second The $X.X XXXX. in results, in quarter increases in XX, Increases the quarter $XX,XXX of to in loss gross in infrastructure margin of was of stock-based expects with compensation, negative comparable company in million to higher of March quarter. Operating improved percent first and associated company March a XXXX. first loss in number does loss the quarter XXXX the positive XXXX. company $X.X in year the on and builds of expect months to compared of to in million Based XXXX, the quarter. quarter ended quarter of as to the margin million a Gross of same support

of totaled March turn compared back call cash thoughts. $X.X million XXXX, As equivalents in short-term the now cash and Steve $X.X as closing XX, for XX, period. I'll investments million to and December XXXX, to

Steven Foster

Thank you, Steve.

we surgical in surgical the With and commercialization growth implant Medicare of procedures, Catamaran, continued FDA-cleared national very for launch optimistic reimbursement our increased of proprietary the system. accelerating are

driving outreach and We for with optimized growth order and management physicians infrastructure team of commercial sales our to our introducing approach this Joint our are Fusion. educating to in continued the SI surgical our commercial and build-out ramp

clinical are that promise We also distinct of the focused research on technology. reinforces delivering this

to X differentiating studies. to Our look the patient validating post-market outcomes develop strategic we into shareholders Catamaran clinical assessment in We commercialization data. I have now patients as of our our studies radiographic forward commitment scale providing and studies post-market updates clinical recruiting represent our X system. further quarters with and continued and our sites subsequent

covering thank for question-and-answer to all to you begin and over Colin? hand our with of session back I attending, our the our analysts. to now each like call operator I'd

Operator

first comes from the question Instructions] Bruce Company. your [Operator Benchmark from And Jackson

Bruce Jackson

many quarter, color I'm And pull the not were of they bit procedures in treated on trained how did during but sorry, through? surgeons treated later in maybe -- Were the little trained a the quarter? quarter. that the So XX that early

Steven Foster

I joining us, appreciate Bruce, thanks question. for your and

So pretty of the a quarter. X big between sessions even had training months X We the January. mix in

as of big January March had in heavier we than probably a a So bolus the is little February. well. end then And

So a workshop to things if nature. January, March, the exposed short And bigger system is heavier cycle a into bit smaller It a if variable be their to and can frankly a environment, they get what through of environment. There you. months. is it's can access should pricing, can the establish to be we technology, in once that gain go longer facility, laborious physician to and have The hospital process ASC they a that process compel Interested. it's quick and a and very be

So of variability there. lots

I'm in X that in surgeries March. February We -- physicians or first did a from their training in that January adopted session sorry, have did

So in that we that efficiently for growth we have expectations their great quickly along love as we move trained and we XX as forward. going mix, as and adoption them were that their can. And

Bruce Jackson

they did the synthetic how respond And to model? Okay. training

Steven Foster

this various with Yes, in in this to get the wanted learning them of access shooting is The a Guidewire Fluoroscopy imaging. pelvis. great comfortable need placing the anatomy. They and getting access a where they a mix, getting question. views The curve to it's big and the if trainer -- gives in and biplane using there's and or great imaging, the instrumentation the comfortable repetitive lot our

hard a of us nature. response been there's the Anatomic positive actually to So can locations. in The can very gives material that of be local going get. to trainer. things pricey, very synthetic be It trainer flexibility a to lot

So gives flexibility, the training. desires a quickly for of synthetic to really lets us model respond lot us very

Bruce Jackson

And question the these for -- now, Okay. fixation in spine? of they physicians procedures you're procedures that are they fixed on the fixation? the other SI are joint me, conjunction exclusively are last doing sort doing then in Or with doing

Steven Foster

which both. answer a Primarily, that the as been as a part can and targeted of bit done a you process. impactful to specific even be diagnostic joints of are if implant joint focused up cases little a long the a single -- the SI procedure, down spine. bigger level, fixation with are on is during our These There the question. constructs have single fusion procedures constructs short good Another will, has are SI or and been that done

these a these growing spine, to up on this do of a a have research There's few a the conversation lots of about area, there fuse share of do when clinical area. those joints, down look, levels we procedures. work side the lot we lot about, there been that. load overload So SI can there's and in of do change what multiple It's

right as we dynamic discussion community be that So in a very the now watching physician something and that carefully. we'll very see

Operator

time. further Steven for no closing There Foster remarks. are this it I'll back turn to at questions

Steven Foster

in for your I to that continuing earnings Colin. out and any If to IR update conference please assist forward growth. you questions, to are MZ happy you, of unable look to we'd way. to firm, reach today thank I'd ongoing call and like Thank progress appreciate everyone on our it. our Group, and to our be joining answer we

Operator

and and Ladies for your concludes participating call your disconnect conference ask today. thank you please We that this you gentlemen, lines. for

Tenon Medical (TNON) 9 May 232023 Q1 Earnings call transcript