TNON - Earnings call 2 2023 | Tenon Medical, Inc.

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Operator

Greetings, and welcome to the Tenon Medical Second Quarter 2023 Financial Results and Corporate Update Conference Call.

As a reminder, this call is being recorded.

Your host today are Steve Foster, Chief Executive Officer and President; and Steve Van Dick, Chief Financial Officer. Mr. Foster and Mr. results XXXX, for update. and present ended second will XX, June provide Dick of the operations quarter Van a corporate press Relations results available these website, release today A is and www.tenonmed.com. was on of section released Investor our company's the detailing

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

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

ourselves not in undue keep revise reflect Please future the light the release You statements to are any or statements, as events. or of forward-looking date on in which mind cautioned to publicly opinions of to only these of place forward-looking obliging results of reliance that presentation. these revision information we this new our not are

will may today's predictions. attempt that business to we important to our some present affect Throughout discussion, factors our relating

For under at a prospectus XXXX, and with Commission of XX, Securities other and Factors, April dated review factors particularly you the these should heading is risks, on our Risk Exchange which file more www.sec.gov. the complete discussion

over to Steve this time, I'll Medical's turn the Please Chief Executive At Officer, go Tenon call Foster. sir. ahead,

Steven Foster

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

in we year-over-year $XXX,XXX first quarter, Over and the second from revenue, a the sequentially quarter. triple-digit course our of of XX% achieved representing growth XXX% record

conservative chronic degenerative with deliver increasing commercialized gaining surgical Catamaran for refined sacroiliitis care sacroiliac patients momentum rapidly pain fully procedures. designed and joint to or surgical is a Our System that fail option

margin gross second important milestone XX%, turning an respectively. and gross marked the quarter at $XXX,XXX and positive We with in profit

a building on team. sales and management reflects commercial second positive our infrastructure quarter Our focus

workshop who Technologies trained training procedures facilitating an have to on SI local Surgical or aggressive We by experience significant been with physicians SI program. continue target have

We combination hands-on of solution a a customers. on to to and through efficient System. proven variety are unique our physicians our has This wide conferences synthetic of workshops channels, model physician a for and showcasing process include timely train lab Catamaran the and which local our workshops, be cadaveric

All are acceleration completed surgical our increased of Confirming with designed activities compared of ago quarter, these the second our XXX% critical number drive Catamaran during in year to to the the procedures quarter. the approach System. procedures

continue market of System. highlight sessions quarter, aggressive implant use pathway of physicians demonstrable to surgical produce This to To over the sales our posterior momentum as system addresses the we the go-to-market second our grow the significant market to marketing, advantages as designed featuring Building opportunity quarter, the workshops procedures to broad distinct continue expect second interior, product in promotion team the we the XX execute strategy as reach on is and are a hosting and designed broadens ease unmet and the competitors. effectiveness our how Catamaran These the number to well optimized approach workshops. to Catamaran sales during our of goals, our anatomy. in of

representing tools deliver our These to QX, expansion The imaging. Catamaran system multilevel and starting software a September handling, In procedures newly our Tenon will utilizing enhanced fusion our refined into adjunct ongoing upgrades XXXX. revision limited release SI will access stabilization. and graft access an profile upgraded smaller application to enhanced surgery, assist SI and market navigation initiate to of continued in commitment deliver innovation, promised

With over that, Dick, to Van Mr. I'll it our Financial our Chief Officer, discuss financials. turn to

Steven Van Dick

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

Revenue $XXX,XXX same X in XXX% for to in Our revenue increases increase was to increase the ago of period. months XXX% to in an and of last compared this an of in primarily in comparable periods compared of $XXX,XXX, the increase quarter due was revenue procedures compared first was for surgical period XXX% year. $XXX,XXX was Catamaran The the X respectively, $X.X year second year the XXXX of which this year and X XXX%, of to the System the same used. the months number in as million,

negative in the to XXX% comparable Gross year this year of the a of ago or compared quarter of second XX% of revenue profit $XXX,XXX gross or revenue was loss $XXX,XXX period. in a

X XXX% $XXX,XXX this to of a gross year, revenue procedures. was compared XXXX. due higher increase a to XX% revenue the number first X revenue of months associated the months improved for in Gross with For surgical of negative of of or of loss margin gross the profit the $XXX,XXX first or percent

losses of and settlement QX Operating to expenses and The of by consulting quarter marketing an increases XXXX. for in other expenses. arbitration of million and increase compared compensation, quarter operating second $X.X in $X.X loss were XXXX, expenses of in sales totaled general result a stock-based our second the the a million offset in in decrease

stock-based and months and and this growth. general compared support increases builds company expenses a prior in of in million expenses losses period. For operating the infrastructure as compensation, marketing X operating $X.X future first function year result sales year, of increase to were The the to the million sales an increase a totaled in $X.X in

net in quarter loss $X.X of The million loss period compared in XXXX. to the of same million was $X.X second a our

in incur was X the million year, additional The loss months the period. the million in compared this first For future. expects previous year $X.X net to losses of $X.X company to

XX, million June $X.X equivalents XX, December of totaled to investments in compared as XXXX. XXXX, $X.X and short-term million As cash and cash

call to turn for closing Steve the thoughts. I will back his now

Steven Foster

Steve. you, Thank

growth surgical pace the of gains management the this on commercialization second a and system. growth and we with with can team. margin positive continued accelerating We infrastructure optimistic our seasoned for trajectory strong of With we're implant expanding procedures, quarter Catamaran commercial sales FDA-cleared the and very our proprietary believe continue gross in marked revenue

growth, year. the raise capital with to Looking half in appropriately positions combined accelerate revenue further momentum recent our our of ahead, the second us the

radiographic to SI clinical studies commitment to patient adjunct differentiating assessment to and outcomes the revision post-market and We reinforce procedures expand application to address validating offering fusion multilevel product utilizing navigation ongoing continue and SI our distinct and expect and surgery, with our of to software imaging.

our updates to look come objectives to the as We months long-term sales continue thank shareholders. our forward expand our value to I additional on in infrastructure everyone execute to for growth and attending. deliver to we

now Madeline? like would over question-and-answer call session. And begin the our hand I to to the operator to

Operator

from with first Our Instructions] Jackson Bruce question [Operator comes Benchmark the Company.

Bruce Jackson

doctors the number are Is sequentially. trained you the you profit it's in -- gross something up trained of who can doctors continue quarter, The quarter? XX achieving on congrats number off, First that that next increase do positivity. to of can

Steven Foster

team Yes. number, Thank to Steve. sales as speeds continue all this I they've our up grow. can et expand their the And on comfortable, Bruce, expand to number as to for and continue congrats you itself. that broadened do and is we frankly, the speed, cetera. of that believe trained question. the do gets activities, to I And anticipate

Bruce Jackson

are the at all? Is happy then all helping you with model? And synthetic you training Okay. still that

Steven Foster

to degree dividends Look, that to Very workshop convenient, really a having it et someplace, very are to what or an bring them pays have do them evening jump a and or cetera. weekend much you, extraordinarily make can The so. keeps session in which busy. it the go from over on physicians a we plane

quite technology well with us So do about the we when it with And through lets exposed to ready move this us you, tough very their quickly it virtually physicians experience leveraging faculty are to honestly, their they're the model received. in plan to to a bring with takes extremely synthetic and seems be lets have move more and trip physician be quickly, the programs time. local it to system. talk to to them, for bringing what schedules, Bruce, getting

Bruce Jackson

Okay. of and with in have the Is repeating procedures? they've physicians procedures -- you terms trained in are fashion? that it in, have something and performed they it how been start are the then we trained who the That's comfortable we get procedure, Then they then routine where well a performing the great.

Steven Foster

if course, what with we they if and exposed to with that do early adopt it these Indeed, that happy see sticky, is sure. technology, technology stages, and get see the stick to they and In front. really of do trained our people we're we're keep on looking and rolling

on is several -- from technology unique we've occasions. to stress. proving and Bruce, that anatomy this goes again. little approach This posterior this at And that The be a over inferior But reproducible to to we any of about, is competitor bit way getting different talked really other want I a have. over that this

vascular pathway they where a structures to get a be comfort to prove be away will approach the that job from need and more that can reproducible stays believe done. neuro physician the that efficient, they get and We gives

early, technology this And just we quarters couple of launched we're a ago. course, of

So in patients. makes serve come we're We the technology. quickly seeing coming their But as and And what back really the early and reproducibly we watch is it that on to us the process. fruition. expose is how we watch to physicians technology their we're encouraged use reaction they

So seeing. we're what with really encouraged

Bruce Jackson

is topic new delivery the Then system. last

system bit the So the from new us can fairly are trained could doctors much delivery are easily? maybe you pick the about system? who a how current little And the like system tell differs current it they up on

Steven Foster

question. We do believe up, -- me improvements. first iteration medical well, the Yes. back and devices that Bruce, for and constant about thanks let foremost,

technology hear of to And can sequence really the focused way on you're if that. hands, exceptionally your feels physician things improve of you carefully, customers, the their that in You nature. listen the from we're instrumentation, enough smart

quickly done of want small a what to we here. kinds organization, very feedback. those And that's to respond we've As

graph This gratifying to believe tedious, and handling. that up we that with efficient, et great more graph. for drill our make talked I more physician alike. own process the graft pack be bit that the X a faster, when some holes staff frankly, harvest Handling cetera. patient's ideas we've and can bone about We just that we implant is the with the come

sleeve of soft effectively. but a pretty profile, done put every job as still course, access is get physician yet XX%. through the humanly The possible, implant shrinking do we approximately this little And disruption as dramatically wants the is access which to the tissue

so And what all that's that's about.

out that through that it size And reducing prove period, sort we requirement, we're dramatically. the that this size incision of pretty test we this in access will believe the it, call of alpha

intuitive, be for the third, who to things you procedure want always entire that then satisfying stable, nurses things And want of to the to nature. the be easy for physician support

number of steps taken that And process. to continue we've so a refinement

make alpha just September delivering to access. in You been make to just aggressively position put technology a in exactly asked we're users. physician available its the our base with existing this everything then and promises and quite on together. And rather small somewhat the involves that it done our satisfied, we add-on It That's are advisers how limited a trade sure be is We've physician right. procedure. aggressive our to to trade about in we've will

relatively access have it's to for So them straightforward the to technology.

Bruce Jackson

profile Financial in statement Great. to quarter one or Okay. Is actually first in have a second more like bit income year? the downtick line. question. the had quarter third I You the a quarter the the SG&A question. look little this of going

you is going level that going that activity? with forward? the is come So level back that this would the quarter that like to up is Or increased the expect

Steven Van Dick

for thanks that. Bruce, Yes,

find between. to going you're think somewhere in I it

the the SG&A, R&D stock-based with line. higher some may stock to flat remain due go the relatively cost QX QX, up I see and think G&A we course, is compensation to But except increase in administrative, commission of the going revenues general -- the structure. to compensation should

Operator

like back it no to there this [Operator are Foster would time, Mr. turn closing call for over appears now questions. his further the Instructions] At to I remarks.

Steven Foster

Thank you, Madeline.

you like you look happy our progress to than assist. forward your please unable more ongoing to and If answer today firm, be thank update MZ continuing on reach Group, for to call I'd we of we'll each of IR questions, were earnings conference growth. out joining to any to to our So and our

With everyone that, wish good day. I a

Operator

pleasant a today's conference. concludes for Thank Have you evening. attending. This

Tenon Medical (TNON) 8 Aug 232023 Q2 Earnings call transcript