VRAY - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the ViewRay Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program may be recorded. I'd now like to introduce your host for today's program, Michaella Gallina. ahead. go Please

Michaella Gallina

Good Quarter operator. Call. and to welcome Thank Full afternoon, Year Fourth and Conference XXXX ViewRay's you, everyone Financial Results

Joining The our Drake, Officer; live me press release today, Scott and for a be today Executive today's viewed presentation site being webcast Chief call. Events ViewRay our issued be and our can & of Financial webcast our Chief Financial broadcast will President downloaded is Webinars call Stassen, the and Officer. at presentation Earlier a from or Zach Today's available are on live website our days. www.investors.viewray.com. replay for and and portion on XX

forward-looking laws. and actual caution material factors. we that projected this by uncertainties comments statements I These risks forward-looking meaning and differ made numerous could include in during due within federal of statements any like Before statement the begin, involve securities to those from listeners management results may would call to

these to it XX, after the obligation please will its over I circumstances quarterly description the as as December revise time-sensitive of December Form of or or of statements turn XXXX. Furthermore, update SEC and XXXX, a reflect filings ViewRay Form this date only events company's see no the otherwise to contains information this XX, today, the fiscal XXXX. on ended for now year including and accurate Form content conference call undertakes March to for with the on report X, of XX-K updated Scott. call. any reports XX-Q XX-K For fiscal other annual year ended ViewRay's risks periodically its uncertainties,

Scott Drake

from be recap Today, quarter I'll therapy more adoption. answering Good to we and welcome detail in our on questions. Investor pipeline forward slides share and Zach and presentation our Michaella. detail driving Relations QX on site. we call. the you, our cover referring your will financials it's to clinical our everyone, our look fourth how afternoon results, Thank to will

Turning to X. Slide

can't. is paradigm Through we'll than mission Our more reported the others over treated has critical X,XXX what improving patients care data outcomes. depth more having later This of MRIdian XX,XXX year-end, and changing them of to clinically of share in the prove to treat growing body is and with call.

to turn In ended business. the Slide results our year solid QX five Let's performance received MRIdian on we the the X. orders. quarter, with across We

propositions region achievements. and and is are clinical, We with and of are Eindhoven our Hospital MRIdian's value pleased how purchases value In Netherlands, Evidence the economic the the commercial recent MRIdian. our in strategic, of Catharina traction largest our resonating. evident prestigious

second top Hoag have. their first a patients. Amsterdam about excited system surpassed added SNUH the and As in X,XXX-patient Henry facility, Jefferson State treated Hospital Korea Ford will they each patient the and Thomas South impact both and Penn UMC we're milestone. and University training MRIdian their

revenue. $XX.X million three to at days. date marked recognized our also installation including working XX to We one revenue system Turning QX units, upgrade. fastest primarily from

particular, operationally. serving We we're continue training focused better our improve and In on customers. to

have $XXX continue cancellations about to system We and removed grown has million. backlog one zero the Our to quarter to COVID-XX. in due order

we approximately cash, $X Regarding used million.

progress financial past cash significant years, Over has on driven reducing few burn. the discipline

sheet recent and innovation and significant runway pipelines. clinical capital topped the commercial off raise balance progress make our Our on provides to us

solidly executed As we the face look back in on pandemic. the of XXXX, we

solid MRIdian top is systems, process is uncertainty, more economics I significantly at several we've setup that we ongoing believe our driven to for lead. to burn it clinical have is meaningful that and allocating and extend protect installing systems our summary, customers for innovation adoption next a guidance the and our and I and we've we're are shareholder over prudent cash value provide purchase MRIdian feel the faster, driving and driving to XXXX time. In customers, line bottom years. can rigor say, due improved seeing What that However, this not therapy capital incremental we

slide X. Turning to

clinical accrue to and commercial Our traction. pipelines innovation

driving automation. front, of our imaging, and times are increased sub-XX-minute the future, On goal package brain MRI improving can the treatment workflow In toward dosing, remote enhanced a treatment and innovation we expect you access. and

time. it concurrently context, work are We go is efficiencies therapy With into central deeper margin improve cost our to to as driving let's broad clinical over driving that adoption.

represent critical to customers implants one, the The and frontline These no fractions also very meaningful low-to-no Slide is has X. data. our dose, number Customer fewer slide one MRIdian of and tight success. number Moving clear grade goals Ablative clinical which demonstrates been X. two, They to define our five how MRIdian clinical input expand how therapy. are, become pipeline therapy. desire shaped expands and or elements have radiation utility toxicity. the utilization number seven about SMART MRIdian of margins, thing they the clinical three

levels candidates At been concern underutilized paradigm couldn't to cancer opportunity share soft tumors and moving customer to cancer systems, value MRIdian leading consistently catchment the in center a few expands on is toxicity. They had were generally examples. note to treated cancer previously. treating tissue trade-off limited the who and travel the areas healthy how this with for radiation site healthy value patients from treating radiation not and believe referrals. now, include that IMRT, in same depicts that And with X delivery of drive the translates of as AUMC A to It's patient were tumor trade-off. historically the RO is pandemic, Conventional strategic overall risk. kidney to the time, versus today, in other been SBRT, now APM with outside patients has MRIdian. types yields customers dose for short-course important economic in from clinical stands therapy. old and key slide into this in increasing in-network adding accelerate improved wouldn't that in for candidates due treatments, will treated to adding likely the high-dose, SBRT about IMRT technology to a Prior data, form on The desire paradigm it Slide and practice. As X have high of risk SBRT. or MRIdian they at MRIdian their treatment Clinical patients the tissue radiation tissue radiating customers treat due prior MRIdian, organically are trend. patients to how of generally outcomes. therapy. US the patients shifting to the organs not shift enables not market the couple pancreas Moffitt, it's that of radiation

in our time XX% utilized market early versus MRIdian, of the even SBRT see days XX%. overall You over the customers about of of the

of is percentage our IMRT customer are dramatically. are ablative, MRIdian XX% driving rate. treatment. systems. remarkable sparingly and treated what utilizes SBRT safe, market enables customers As increased confidence market conventional patients toward knowledge via utilizing SBRT The nearly over that MRIdian of market the grew, It Today, short-course nearly the with as five completely the is as times SBRT noninvasive

We Dr. CT is radiotherapy, has of at future As that on has business "the Dr. precursor Steinberg XX so which believe were the two has obsolete. to patients growth dramatic MRIdian, it's by shared to of x-rays this a said, grown CAGR interesting this technology will just CT-guided to growth. a ultimate Haas-Kogan render SBRT machine". day XX% MR-guided Slide replaced dimensional On treated note be MRIdian And one. since

demonstrating successful Our program are to and lead can that customers does another. one MRIdian increasingly

Our innovation therapy clinical drive adoption. and to pipelines will continue

XX. Slide to Turning

strategy. step take view to back clinical a our Let's

out this by led also to prostate, pancreas, have meaningful MRIdian unmet data stands of these customers Our areas clinical tumors. journey application tough-to-treat the an We demonstrating generate in MRIdian there lung key brain. our need targets in and in is cancer They in and types. beachhead adjacent that signal believe value aim of

Staying As expanded our prostate, II an process curiosity. SMART to clinical is in pancreas breadth trial, work can confirmatory reflects the customers leads The than represents predominantly trials. XX, level effort value have feasibility this to interesting proof XX When Phase Slide the clinical Phase III. of the trials. conducting by investigator Phase on result Currently kidney. over we and an in definitive that progresses signal are required, led. pipeline customers view extraordinary Other developing macro I at that of example, work proving longitudinally. to depth

pancreas frontline has Let's of delivered of more SMART how trials example Slide proof clinical view signal toxicity XX to and aggregate road driving went importantly, about not to how signal Also zero. that randomized doses led The two or only high ablative higher are double powerful. was high-dose disease. an with process the therapy. Customers Retrospective depicts went to was this the for customers This spectrum path grade work began low-dose map than two-year multiyear us trial. patients The body down the a pancreas. three of in the takes survival but span trial. XX% systems. This conventional down to controlled led very in

where care in standard first metastatic is The SMART. of chemotherapy care is MRIdian compared of standard plus late-stage to cancer

or inoperable medically robust patients SMART. XX to a intend of management patients protocol symptom down pipeline. Slide compares these MRIdian that operable boiled for We for is typical cancer second therapy otherwise. as is pancreatic MRIdian establish our The the data versus frontline view

conventionally trial has delivered discuss just randomized let's targets: we opened to clinical road key UCLA first the map. for patients, pancreas, SBRT. MRIdian two head-to-head As SMART are assess shared prostate controlled versus There in intact a

Second, frontline we can fraction prostatectomy therapy Cornell five of controlled expanding patients, trial fractions as compare disease versus therapy. to SMART. post at Like for MRIdian believe a that randomized a conventional opened spectrum the has MRIdian dose position XX pancreas,

through execution moving we're the and studies confirmatory lung phase Next, metastatic for cancers. in

courses XX, for shorter treatment. Slide are patients on effective pushing Finally of

allows to MRIdian clinicians SBRT technology continuum the to IMRT to along SMART. move from Our

and us year leading in in The adrenal value, on In clinical ONE slide our both single single Our kidney, customers enrollment trial XX, and pancreas, are value. for lymph MRIdian work SMART. located SMART primary opens summary which oligomets yields this strategic economic drives now exploratory tumors liver, nodes. with fraction lung, value to fraction therapy

on net patients in who treatment from in-network MRIdian be travel catchment the that The and form referrals. share Our wouldn't for attracting system, they multiple areas proof increasing buying systems. new patients customers is that patients outside incremental couldn't or in customers of are in treated another

our pipelines. and made propositions value meaningful progress have across business, We

discuss now to We our to are improve for positioned it With turn financials. I'll care over Zach to well that patients cancer globally.

Zach Stassen

Thank you, Scott.

the million attributable $XX.X For year. upgrade The from year-over-year full Total primarily is $X.X decrease was impact period sales to XXXX to pandemic. for a year was compared a lower is our $XX.X full XXXX, was respond months loss the were COVID-XX. Total loss the ended million initiatives was improvement full anticipated COVID-XX $XX.X Total in quarter improvement expenses for $X.X XXst, same million XXXX for same XXXX to the to million last year million million for in expenses year positioning infrastructure full was compared the for period million $XXX.X for system result XXXX. to installation million compared lower installation year. $XXX.X of $XX.X cash last quarter the million last year gross $XX full including ended compared in one expenses of a full an as XXXX. was gross largely full profit December to quarter profit margin. million period installation year the the well ended the significantly the to Total December XXst, primarily from for one The loss upgrade $XX.X recovery operating XXst, $XXX maintained We compared loss three total million operating revenue $X.X of Operating revenue was volume. gross in three the capacity, three more year. our months offset full as to were service as XXXX. of result for $XX.X system our lower million for last units XXXX same as compared XXXX by for three to the preserve year $XXX.X savings decrease $X.X the was XXXX. year to XXXX full as the for to margin including absorbing loss the revenue increase Total year year the than full the million year. for the million same operating revenue million a The the for December reflects our the to compared of travel This units Operating company for as in infrastructure. revenue expenses fiscal in profit $XX.X compared million, of

same the $XXX.X million share the XXXX year three share to or loss $XX.X full $X.XX $XXX.X XXst, net ended XXXX or XXXX. Finally, share full last $X.XX for per $X.XX share million compared million per or the for loss compared was months to for period December million per was $X.XX the for year Net $XX.X or year. per

backlog. Turning now orders and to

we $XX.X million period Scott in last orders approximately systems earlier, quarter new the $XX fourth new four As totaling to MRIdian totaling for approximately compared received million mentioned in of XXXX, year. the same orders five

As to To-date, from XXst, of our $XXX.X was backlog system not backlog of at in have we December One million the compared XXst, to December from orders any removed stood as $XXX.X due quarter. million as removed COVID-XX. backlog XXXX.

ultimately public cash quarter levels. this working to used cash of and our approximately open times, positioned improvements solid through January well will capital $XXX.X million. allows to prior line primarily finished use the ease net We With sub-XX-minute ultimately commercial raised cash offering reducing in reflecting of of pathway made we now on $XX.X proceeds feel leaning cash, that us strides our our acceleration. on achieving we the questions. continued that usage. where Regarding clinical year for the million stock and progress commencing million in we our in of $X operator, in out move runway focus with well immediately inventory common continued We treatment workflow in We down

Operator

Bednar first Our of from from line Jason question Sandler. Instructions] [Operator the comes Piper

might Your move still you, you question, Would to your not please. me on Jason to like mute. you the We're next? Jason. on hearing have phone

Michaella Gallina

please. Yes

Operator

Certainly.

line the next Oppenheimer. Our from Suraj question from Kalia comes of

please. question, Your

Suraj Kalia

hear you afternoon, Scott. Can everyone. right? all afternoon, me Good Good

Scott Drake

We can. Suraj. Hi, sure

Suraj Kalia

Hey.

Scott, a presentation of So today. information incremental your in lot

there few Let the to slides. it us wondering timing is give the a of bunch last you a to trial, have me about taking approach was facilitate on up hypofractionation. the SMART-X, or additional are if IIIs start of Can to extreme to types can just the II, for pancreas? Phase early from the pretty the in too fascinating Essentially, talking you give tumor that. you're Phase be And to just included details It's how one radiation. I just some go on SMART-X it? it

Scott Drake

reverse Yes. Suraj, in let's those order. take

begin SMART-X the trial, this Regarding enrollment we'll year.

a little We goes to I likely other information in data pancreas the and you're those first secondarily, too SMART here, med-tech at a trials sometime years trials anticipate time much It's for right, Suraj, randomized time. sharing the this XX XXXX pancreatic that will regarding be time on premature if So I as map. for XXXX enrollment the more sharing industry. data mentioned, for bit that data first the mentioned the give frame it's And frame, be two in that the XXXX we'll planned. clinical data controlled for in road here But two we're candidly studies. likely

they And any and experiencing from studies, I clinical patients customers are think or curiosity we're these XX initiating system. perspective treated that quite what is extraordinary. a over on be other say infrequently, not couldn't wouldn't

well keep quite most really conversation we that's precursor we growth the the and have think the what the where and we in to led clinically that because since we're you're that's we I think drive ultimately as going that's aware, business future. look matters here, going, to So got to

Suraj Kalia

Scott, SMART-X right? yet be dumb on question. wouldn't clinicaltrials.gov,

Scott Drake

I don't believe so.

Suraj Kalia

on competitive what there and a the give front question, seeing rev in pricing believe Because update just you tag what also? there's color take us And don't structural it measured sort step I tumor perspective to different of dynamics and see gave each. to of, is on would will off-line. many rec Scott, be PO Any the you're the interesting take a on back, it so dynamics, We the can great. types to be maybe an along that trend. just

Scott Drake

to, Suraj. Happy Yes.

I just has relates had of to installation most certain of make on pandemic the time, the the yet that question to achieved making. desired the to So do that would same pandemic working here therefore, in of as progress PO really it an put get hospitals midst we And first as XX probably operationally. I there, you, been that solid work. of our rev your that out on to has rec, fastest the the say, this QX, highlighted installation in the we to even We to company would continue the in at call us ability kind nettlesome we're anecdote terms tell into days. progress At countries. We

me So relates better second and that's to we that frame. it we're remind getting just front. have as not of that Suraj, time control, question, your better helpful, overall part But where the on please?

Suraj Kalia

a zones level but from dynamic what's you're say, non-Siemens competitive perspective, I higher seeing Elekta predominantly pricing on just would going More a structural with what Varian? that

Scott Drake

Yes. I is very feel field. competitively the for good that would you about I tell happening in Suraj, what us

you around with. appreciate years, we'll customers success company they ASPs report one, remain $X see primarily had distortion steady at new QX quarter-to-quarter orders million. looked to pretty do some I've they starting when models past by been business with are call. just have number that on, as from But as a things; at able I clinical driven and our there the we I think deeper the of that is deeper the at over our the least obviously, The couple we've QX view of to terms is we've pretty our of to by chain our And perspective, past calls. that the kinds as is speaking, and think goes steady. in ASP applicability economic time of the now strategic number and customers an MRIdian value patients. several They on of understanding that that highlighted ASP from we're patients connect and treat I solution. unique a generally three since the for and that And

end. that give this orders our often shared price kind terms maybe in of two, the of proportion upfront of three, on the an are lower are take $X system but or some number economics think at for versus ASP million a quarter upgrade. million. had new back $X Upgrades in And like, direct through an distribution. Number So we a versus

gives some quarter-to-quarter. feel place we're a color you'll I And that pretty you in variability like hopefully, from good So, there. on that see

Suraj Kalia

this DaVinci you, Got you about couple just back. on like Scott at in discussions, sort What we are you, of status doing around or has average just said for hop shared a a so Scott, revenue Are is what is -- know quickly age what Zach MRIdian could Intuitive or reality? it. revs. it. the we just become time. where of a for are similar in based a throw my the this see in be units of And give because XX backlog? and bantered going there much I for what we the been shared in piggybacking FIFO for point format. taking leasing or Hey, pretty And appreciated. greatly just And quick to Got Any it would now? LIFO the I'll Thanks questions. you color is some right is

Scott Drake

Suraj. you Thank

touch on me the question. of your first Let part

alternative of couple with conversations a And of say advantage take during has we it things. been had some freestanding capital of couple have a some kept success. going that Number want one, models while we've that. Regarding the business to overstate those had pressured. have I would models, don't worked pandemic, budgets We've I centers them.

cracked model don't will ultimately code the on I believe be. what We not have the

do time that we think here some to creative a away we're MRIdian. with another well. different Suraj. recently opportunities But have And a really as was think portfolio did one solving for that pretty from customers of I chain acquire for-profit I actually for

second your do we it strategically because ultimately terms are and don't what and this enough define we really patients for the for our be, what being customers. on flexible, the in of in big I'll might have to let component. our believe model cancer I therapy means we appropriately to So think And a Zach touch economically also N but return point,

Zach Stassen

Yes.

driven we on at tell the by process specifically quarter can But So level it activity a primarily users. end comment the relates we of I to every with backlog, don't assess as see average of it we you, backlog. age rigorous

in cancer are the out of that You that some got into future mind orders take systems sometimes. we to for slated keep construction the centers far at of are for kind

and we So and a make it an really each activity at call. level with system progress look on

So, evaluate signs the we backlog that at see it or in out Otherwise project's to that need -- not we moving and point. to stay in we order forward. whether to take activity

Suraj Kalia

you. Thank

Operator

Thank you.

of Our next the comes question Anthony from Jefferies. line Petrone from

please. Your question

Anthony Petrone

congratulations today staying and a sit and hope on on year. got then where afternoon follow-up Scott as just I've COVID have healthy. good couple maybe to I'll I a implications we strong Hi, a on clinicals. everyone's

to perhaps half as post-pandemic most capital COVID headwind companies the follow-up us year to vaccine the clinicals. give sort second then how look an rollouts update On front, a demand a COVID to relates of and we which ahead a the and hospitals? near I'll as have much second term pent-up purchases of you a do you you here as then at half recovery it can in view at potential on But have How about. And look the start maybe setting do of view as been talking XXXX? the to we

Scott Drake

well Anthony, family. for and same you. Yes. thank hope We're here your

in reemerged we from their customers impact is second to year. think point, also to our as I having and an improve are psyche that improved on to at COVID, throughout order go put continue had lens that it will that about pipeline are year-end. of the state seeing think way kind is think it on two everybody. the I down vaccines of the here terms And we real and break it significant originally through crisis likely your it's a One environment already say and we I and reasonable would ways. has the installations. In I of perspective the And

reengage. button that most had hey We I the example us customers on to give very have we're could customers would said, the be overtly pause and hit who ready conversations have concrete you maybe -- intentionally with

order are will improve I likely area we is front. the things the installation environment. front. And on us the on The that's the think of in seeing terms on frustrating improvements been most So, for side, that

getting We today. being certain of position are primary guide don't the to point travel to and parts I to in why in world we get reason visas still installation work. having that do as the challenges believe a the we're in would

know swing As systems standpoint. one a two us really can for things or you from revenue

travel So, to we little I to time of need do And the to think line need that kind those we do can that's bit the we sort of just of work. question, But of improving. planned here I get countries I really out to vaccinated here. teammates more to That's a is -- macro commercial what need QX sight installations. believe your clarity think that pipeline ours

Anthony Petrone

wanting demand is you kind on you a MRIdian? much when pressure of how overall of there a therapy, situation mentioned sense mean orders on just the bit way sort a hospitals just I coming radiation in particular, pent-up that little for then And think get and there back to and post-pandemic you do there particular, to to broadly is now about negotiate. in But --

Scott Drake

I Yes, do.

saw of we'll know you think as little space beyond the even QX the progression three look here demand. orders I do you in healthy mean the as and a us XXXX on from we move and landscape of I from reasonably reporting quarters there's and across I bit forward. be others when saw you last in you

that tangible in show to a progression we'll way. be hopefully, able So,

of about overall size you good as the programs. feel these is thing that's MRIdian know Anthony that. about I So, The different

Our ASP is higher.

significant cost installation frame linac. Our conventional more time than and a is

bit is So, system. they're a The clinical sinking the utility of differently. probably big viewed the I thing marketplace in think that little is in the

And treating, got the now in-network and other helping share marketable patients stand of the they in need three their how would or to customers buckets prospective we've our seem pleased If the willing couldn't Our patients number just in an strategically, their only programs technology, a customers with a you this nontrivial on a traveling customer also be number out already is system, second, primarily one. third. was are wouldn't MRIdian for treat that Patients that therapy, they economics. with customers, highlight. pretty purchasing MRIdian we have referrals, any they're and increase to purchased perhaps of that

good and doing. at like reflecting, of the I think in we're ViewRay think, this we're at I portends point can at don't So, where overall things. market I But you really there, what it look terms

what we're given given overall expense is doing in put the system, unique MRIdian the benefit, given think place. the clinical more us to to I a and program

Anthony Petrone

large That's want helpful. this we clinical On correct. And XX, just think on would I sure Phase starting slide be a enrollment should last we be, specifically, the one have prostate the will how as make Phase And you simultaneous to this about together? and on viewing X you X referring do X, to think Phase when enrollment be? Thanks.

Scott Drake

you it. got Yeah,

Cornell may I see and overall UCLA, in that happening UCLA fashion. anticipate are we happening as as early are this studies there's data concurrent at prostate – relative to the So year. from

narrowly therapy of from those specifically UCLA post XXXX, head-to-head pretty relevant. how here see Both some we're our some we'll get data We'll So clinical and from perspective. in I more complementary surgery. is MRIdian and think get signals also, going to interesting very think from I program, interesting prostate are a pretty robotic even

Anthony Petrone

Thanks, again.

Scott Drake

Thank you.

Operator

Thank you.

Our next question line comes of from Thibault the from BTIG. Marie

Your question, please.

Marie Thibault

for questions. my you Thank Hi. taking

practice of buying of from a hospitals order to needs two to to intrigued systems. kind Just seeing me. in center in you quick on the a their trigger what second about discussion little Can by I pull us system? bit the be a Scott, second was talk ones

Scott Drake

they buy it, kind when would they Yeah. have we've us, perceive. short my Marie, an, customers the and almost now percent that more moment, think webinars Customers thought think we've they there what example system they held. shared the of heard our And And they clinical heard goodness, as perceived. as I be it to is their precise. utilize clinical MRIdian, I on XX% now where as that XX% say, than get that Dana-Farber, of SBRT again, invariably, because on on that at high they we time an at SBRT might X-X the say saw for of you XX aha in to in relatively I a time. number Then that occasions even – there's value a value here period MRIdian. times they're MRIdian, of webinar

drive across and And into what how only then indeed translates do customers help from patients conventional productivity, more get strategic follow-on utility, initial to the Dana-Farber you traveling Brigham clinical their quickly, helping in then out and value world for time capacity words MRIdian really oh again kind we we it's is, there's and we their across line and we that very strategically them of them of with lot the hard-to-treat a in market. not bought value. more that and bottom Linacs. with the than putting my up kind Sticking bread for recognition butter Women's of they in country and hear thought, – that their shared their because are it of the on them they how So cases freeing goodness, here other patients therapy, on region stand example, economic MRIdian

in-network traveling on line. or top of and any patients kind We them area outside other wouldn't they patients Again, in from couldn't the drive uniquely to catchment increases systems, are treat positioned help referrals.

again. in deeper some and this system into start the have about to time that system. that conversations get story that when we that is So, instances, time-and-time-and progression, now third that's hear they we second as And

fruition. we've really on occasion. And many lot of So same hope a bring we that story to now that to heard

Marie Thibault

the think the That's for then, all fascinated When Scott. helpful, One think clinical of know you end I we're on detail. that about we for the meaningful here. X and I Okay. time business the are really the follow-up can X sort by value. said cancer prostate lines how customers of if is Phase all studies, Phase things? this on buying I Thanks just that clinical side, MRIdian

with be trying needs Just data, X And that, gauge,… sort of we So the see in done? how Phase shift of a something that much could, way that is to XXXX? in to if proving still major

Scott Drake

Yeah.

Marie Thibault

for … this what means orders.

Scott Drake

-- there's little the know our the outcomes the therapy of I Yeah. it's question driving important is and that's know, really to the into pipeline. ultimate us a commercial bring Yeah, that mind, conversation We the pipeline to the innovation in driving we're I also that, really And standpoint. adoption from I and hear I clinical central kind driving think data question. you.

And MRIdian. All how have we value, described customers the you treatment with I've we get of with feel, of today, data when and really more-and-more imagine we of to form this brain strategic for treatment when current things they this coming stand economic will package. sub-XX-minute are the times, is, that clinical pleased with clinical the If the get way out. our

therapy. but to MRIdian that lung, want Marie value cancers see And more-and-more a believe, clinical really in single to we mentioned liver, in which see into cancer. and only is they fraction also the, as oligomet, do central lung, workhorse, I pancreas, in toughest-to-treat data matter. They want the in So are prostate be for led really example, SMART, ubiquitous going we're of ultra-central to you MRIdian in kinds started -- being not kidney, in

like So of early early really for be in news exciting and and we what stages investors. in the for cancer feel the could days patients we're

Marie Thibault

helpful. really so That's Thank you much.

Scott Drake

you. Thank

Operator

you. Thank

Our line Riley. comes D'Silva question of B. Andrew from next from the

please. Your question

Andrew D'Silva

afternoon. on any Again these, between if And jumping Good taking calls. progress. you Hey. I touched for was my Congrats question. thanks sorry, of on the but

really months. tell me anything as pipeline? trial start, with about timing thoughts end you transcript, either, check just on to operationally the to just me -- your six change earlier. expected and APM So, specifically pushed or if shift interested the being Did let your these it just of about in that But I on relates any in hit the out was

Scott Drake

Andy. don't so, I think No.

in by in pushing of months think APM it. the the, six what do, is to do, really thinking to customers that. for to get of helpful for back about, ability the that they they're need terms APM, the knowledge I for their And ready prepare

going the -- I would the very than impact important their clinically that, program. really strategically And under the think APM is tell scheme. is one, going more to the that the reasonably And very well things Both certainty us. of two I going good increase. is courses to our is the -- of are happen. things APM, to number under confident, I'm of think economically in We toward important for the bode the And ViewRay. those MRIdian And treatment customers you the they current for for and and patients Number frankly competition shorter trend organic reimbursement continue. of APM love timing. two,

market prepared nearly is the treated You of XX% are may the at about and patients with XX%. deck and SBRT X-fraction remarks the overall in seen slide MRIdian in have

or that's just we And yes that clinical boards therapy fractions data ablative tight the you treat at of X, on for importance Y, no look you margins suited are there. of the cancer incredibly that doses after. treatment innovation all sub-XX-minute pipeline getting times, single So that five our Z are then can the fewer being things fiducials will the to done with work fraction throughput tumor in indeed the of customers all well substantiate

that incredibly world. are in I think well APM we positioned

Andrew D'Silva

Okay. of half believe lot travel -- of the Do what least still challenges That COVID better there two last in has within a what months? a was was true, ViewRay around the than various positioned bit, relates was believed or the but it statement gave any countries specifically sort you and statement I tied having regions with certainly shift COVID changes been it restrictions think operations January I'm be it to to I ever very ahead of to as how was XXXX. first was really, went good of -- that were really great far little call a while insight. still thought what you operations offered paraphrasing in color Then evolving. at about or

Scott Drake

be Andy. to that true believe I Yes.

clinical just When we better our I pipelines the better you look think we pipeline are talk about, positioned. and at that three it's extraordinary.

customers have Our over studies. initiated XX

want what use, really Our cancers quite all want. treatment to potentially brain we those our accrue things innovation driving thoroughly really what and also They throughput we're down capital. so customers with XX-minute believe compelling. targeted exactly we've They throughout been team greater is and I've how has to package. operational is And And treatment innovation asking brain getting times. want pipeline. a that bring operated pipeline at to two of of improvements pipeline allocating that They that's our exactly clinical Simplification, the they're the way our those commercial the made. impressed for pipelines ease

just know work we I continue So frustration The and installation of to in to is the be this do better aware all that you're desire positioned. of both our and and get better big I do. want to with think going challenge. quite enough to our point yet. customers remains the clear vaccine but that's vision That that our and have dissipate And don't we we a on

Andrew D'Silva

Great. Okay.

that really So correct? is since guidance financing up the could on based January you've you to the in versus anything experienced unknowns provide decision not completed that specific come

Scott Drake

That's on get to installations the do right. business careful especially progress don't. the with meaningfully systems we and that be you or nothing haggling terms we two countries the go for right? in XX/XX the happens installation installation front. we're But we're real want And need still work. that know of one recognize about for size just either Yes to or and all get We're still binary, QX it's because and and that swings on of externality. it's as in operations to prudent things or very on of or the and And we example revenue before clarity us that making. visas we the credit We

Andrew D'Silva

we at install initially just have useful for know of provide that least think maybe how at question that scheduled least least kind this a from plan would let you an at you what about you year? last If granularity so standpoint out currently And be me. to context cadence us can Could or have modeling?

Scott Drake

of like that sight. feel we when have we provide We'll guidance Yes. line more complete

lot install get and a have demand out to there systems. of We

lot do so. the of have you guidance. through of to we But that capacity to to desire level to be able some things have right a still We and provide work

Andrew D'Silva

Okay. much of best very, very and Understand, well thank luck you forward. going

Scott Drake

Andy. Thanks

Operator

Thank you.

question Cantor Brandon comes the Folkes next from of Fitzgerald. from line Our

Brandon, not you. mute. please. on phone your Your question, Brandon All you right. hearing might Folkes, have we're

question Our the of line Morgan David Stanley. from from next comes Lewis

please. question Your

Unidentified Analyst

taking is for David. questions. on Thanks Calvin This Hey. the for [ph]

Just ones me. from two quick

the is, priorities And right how on on earned The the or you I'll just quarter comment you fourth good cash that XXXX? now R&D sales throughout marketing G&A, first second your view one just Thanks my still four also feel any and can half? between updated ask is flat see could and the about -- first so quarters over And, of in just, you improving over XXXX? OpEx you on sequentially perhaps which staying question, perhaps of much. touch whether

Scott Drake

provide I'll color. a Calvin, of to maybe Yes. little Zach your and bit on question touch ask

the cash an our is think I best on way at look burn basis. to annual

significant fluctuation pretty from see You quarter-to-quarter.

little you me back Let you take some and context. a give bit,

really In discipline and is. Our And of It belt last organization. that see cash currently. we and in strongly at basis the about this from would put and so that's burn it you how business -- $XX basis, And in our XXXX, to down that that less to position our on trajectory, on the a in to chunky going think annual very $XXX came about that to an look posture number but I prioritizing pipelines rigor about financial robust here that I standpoint, others, in and given an quarterly shared last clinical we encourage team's the year to OpEx came operate, were intend and ability $XX XXXX down us a pipeline. our parts to positive We tightening that continue remain million. innovation are clinical other that you're We we was here we're And year, million. today. million. is

robust see very to I think going pipeline. innovation you're a

our you add? going to things impact hopefully to going being, for pipeline, any the is loosen we're that to Zach, think want the time but color up commercial disciplined, very as pandemic. remain I with

Zach Stassen

system of a systems, much payments same. think on from I around shifting commentary quarter-to-quarter the No, much our those like the very is

the why word it use is it system, of very cash But, to each to a we as undiversified as do we try So, impact. a from kind possible. soon in and with relates it risk as an from it's revenue really large lumpy -- annual of That's manage perspective kind obviously quarter-to-quarter. both bring

quarters over is averaging important. So, the

Unidentified Analyst

Got I If it. in sorry, if just -- much. squeeze so more. could I Thanks could one

was on back I around certain timeframe, December in know in circle in ex-US you to the Asia regions challenge commented on. perhaps, wanted Europe. trends I or that I the Just installation and countries back think the some

was I down. And sounds than I Is is Thanks as that that front in you do China see still kind like well? that -- and locked to just the any China on think is So, improvement what kind slightly of is. you latest Europe Japan Do -- much. wanted probably Japan. the Europe still pattern? so it better see of

Scott Drake

But, spot have you're is Asia been challenging have and it Europe. for us, the improving. those think most And Yes. spots Calvin, I been on.

again, But like, improve things, and to loosen solve we past provide a a like You've months, a what's challenges side to level from feel in to happened from few little of France, guidance And perspective. real with visa will happened Asia, these desire up we our bit that things had the just and what's there. seen the the it's customer's on see in have example, of we'd think Lots over and specificity for in I a give we've vaccine. challenge our had we Germany, perspective. early and side

Unidentified Analyst

Very Thank you. helpful.

Scott Drake

Thank you.

Operator

Thank you.

comes next from Our the of Jason Piper line Bednar question from Sandler.

Your question please.

Jason Bednar

hear Can me okay? you

Scott Drake

We can.

Jason Bednar

Great, great. Good afternoon, everyone.

thinking earlier question stab you to just, So the how back Scott, and a about kind are take come maybe of, guys I'll a top-line.

assumption Would in question. to go-forward as that per XXXX anticipate right access we pretty then think your like that. spite quarter consistently will as having along But teams a just allow follow-up it very to systems how reasonable backdrop can you been understand in a hospitals? restrictions. still to couple these And mean, a being just vaccination limiting just And just your further is say provide near-term install the you installation access of pandemic the do guidance much hospital I long still the has to now of the formal frustrated. not visibility you able all the as appreciate limitations in? a is being once moved hospitals general rollout that's I access of from quickly throughout totally so And with you've what

Scott Drake

the be tell would specifically ourselves QX attractive confident over in macro That is but in at how time. that to Yes. are we can't certainty be step. is But we're one, standpoint, able we're I think revenue But in calendar XXXX, reasonable number accomplish certain very intentions growth a Jason to of of The a very out in I'll there a thumb that say in. we it have the really to moment. going of a of higher take we it don't putting back Because don't And what higher really is demand the put we a sight Street and XXXX. feel you particular want as us that line from couple our to your that's good position having up so I the that I that installations less than is to. should push here guiding and relates then than What that. with given of holding we have things out feel rule restrictions quarter

Jason Bednar

I clearly a on be there mean, then And Okay. That's should pipeline. helpful. there's as Scott, here focus the clinical been

offers But the today. each down? both of can these the here that those updating in you on product pipeline you and on not time I map imaging, change road maybe increased improved MRI bringing MRIdian the looks pretty some the expand about brain talking treatment mean, you're package. also think interesting your items in I where development out; dosing, laid are treatment within clinically step advancing

Scott Drake

perspective, our I product the underneath been from for And things customers us Obviously, these a a way enough here. talking highlighted. this highlighted, to get of Yes. we're of that specific have a into development and what we more we we that to I customers want that. want have throughput. don't that number one our is publicly comfortable Yes, from it control that the Don't the fact regulatory the that would do perspective us. about exactly from things lot but we're helped near-term they asking than the it's have but behind timing that that along thing deep anticipate pathway, say have that, full is given happy items greater

the we're week. just them this XX every vast XX are suggesting the you math If patients treating be year. and vast, X,XXX That's case or patients majority fewer. instance. day not five of will a do But if a the a That's fractions and in I'm patients

that's Now seek customers I our the than a a granted cases far our think and point tend customers system our too have to hardest that. stands away. we the may take believe solution longer time the fraction that not to throughput that single But of that put therapy we period on

believe as tell and there's lot how customers cancers we use something access are have as this items. elements been appear you brain remote well. that we of excited us and bring simplification Our can't on a customers unique on also such helped that journey of and ease to excited to be And I collaboration other and workflow very

Jason Bednar

that in trying Okay's. relationship? back hear. Chindex Is have stand there That's great. Thanks. in to commercialization XXXX, me we you for I'll sure then you where One your dynamic? Good a relationship? final China make a Just to expectations on us with update XXXX XXXX, reasonable to appropriately like set our quick queue. occurring one hop and time with Could frame

Scott Drake

Yes. the We feel that we really have good really, about partnership in China.

share the will we clinically we more in pathway. down needed of frankly, partners get world. a once Jason. there any to ready that MRIdian and are is And things road China. helps fastest in largest the quite the very quite specifics. the not do growing specifics China some second closely more market working We're further But bit are our there the with on We regulatory share little

motivated our we're to So with really get partner. market there to

Jason Bednar

Thanks so right. Great. All much.

Scott Drake

Thanks, Jason.

Operator

program. question-and-answer any Thank does remarks. for to of the hand I'd program conclude you. further the Drake back like session to Scott today's This

Scott Drake

for and safe. be this on together thank you, back stay future We'll and everybody the not everybody's call. reporting well joining Thanks us Jonathan, QX. hope much. I in distant thanks on too so

Operator

participation conclude for ladies in the today's and your program. you, conference. gentlemen Thank This does

disconnect. now may You Good day.

ViewRay (VRAYQ) 5 Mar 212020 Q4 Earnings call transcript