VRAY - Earnings call transcript Q4 2021

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Operator

Thank you for standing by and welcome to the Q4 2021 ViewRay 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 conference call is being recorded. I would now like to turn the call over to your host, Mr. Investor of Director Harrison, Relations. Matt begin. Sir, you may

Matt Harrison

welcome Thank quarter fourth and you, Good afternoon, operator. to conference ViewRay’s everyone, call.

Financial Strong, Joining me Affairs. and Officer; Chief presentation Executive President Earlier and and today are a Scott Zach Drake, today, ViewRay Stassen, press of Vice President our our issued Chief Officer; Clinical available Paul release for webcast being our be from call is our or broadcast replay The webcast on website. can A viewed be XX presentation call. for downloaded today’s live our live. and days. on website Today’s will our

begin, filings Before materially could differ that will the now will with cause this call would include we discussion call recent to results are I SEC. to you I discussed like to conference Scott. the that actual turn the in remind forward-looking the over Factors statements. most during company's

Scott Drake

customers, These systems, growth represents results commercial for to Thanks, a finished in call. short number base in relatively patients Q&A. report and clinical company. installed in doubling and of XX,XXX I rates more treated. detail, treated an to and This the quadrupling Matt. represent for update of and rapid and guidance, of since XX pleased I'm line our We patients programs quadrupling our the on business Today joined patients active our number XXXX we open than I the patients treated and Zach anticipate years X timeframe. adoption with wins and the significant afternoon, year exciting doubling results MRIdian everyone, and installed company. we'll again and to the therapy with systems a highlight our provide about our pipelines. Good our the will cover along welcome will more innovation

momentum bodes for is over growth our drove Revenue and million, very much future and built This clinical grew which XX% XX by which with orders, prior pipelines. full XXXX the Turning well year. over $XXX performance complemented our momentum represents in We backlog innovation commercial XX% for finished the year X. year. to Slide strong accelerating growth. This

with want markers, MRIdian conventional MIRAGE and sets of in for toxicity Number versus a are half. The groundbreaking no the in Gu Highlights comparing performance early by week statistically treated Number cut closed fewer X. MRIdian implantation fiducials well avoids no on significantly superior a zero of about the MIRAGE enrolled for cut reported to include: quality six; UCLA. five, about MRIdian margins XX%. trial Kishan GI the results MRIdian volumes by patients or half. MRIdian and who five the so customers. two, and randomized and AXi rapid the solid first and hand MRIdian toxicity of our We control 'XX very MRIdian received therapy. data value from to and are presented Dr. huge accuracy Number by patients. life foundation remarkable toxicity. forthcoming. fiducial or fractions is grade-X were in four, about scores. margins is The our number Last full win The and also low This cusp of and for number treatment beyond. interim This was MRIdian delivers. the customers reported success growth at on Number treatment the clinical MRIdian for XXXX, ablative catalyst These is cut and the tight data was one, Phase win with was deliver III are trial the cut Slide This XX%. patients stunning in huge display. clinical conventional Amar therapy precision in are invasive launching half. powerful that is head-to-head and dose have results arm of on three, MRIdian

and terrible the of type MRIdian for cancer, most radiation data therapy second trips to by as hospital five These treated treatment, help side first the in healthy effects Just line will prostate position mitigation tissue prevalent the associated toxicity. cancer radiation. with

Slide toughest exciting front for Pancreas. our More All this treating possible post-op has a patient readouts real-time the SCIMITAR remarkable both by in designed real-time with and customers results demonstrate automatic Again, is the diagnostic studies and our delivering. and of prostate list of Slide prostate SMART imaging, confluence world-renowned We are patients, of X. made proof this plus MRIdian therapy. XX via how in quality X and beam company. fraction patients. Again, a right adaptive us, versus be These delivering data five will mid-year. automatic weeks treats will including trials. We SBRT only on and data is groundbreaking punctuate huge These the UCLA, ultimately would Center patient lead and standard we're tissue gating to results feasibility are available X by differentiate a more planning intend Cancer meaningful is treat excellent be X, another of experience tracking MRIdian. to win data customers cancers. low and On to ago ubiquitous clinical point and toxicity SCIMITAR imaging, this of survival. XX clinical to beam three clinical and we long of MRIdians, at daily yet follow driven ACRO. that conventional SMART Pancreas March our for released said are the data, years gating. The changed

features positive. innovations profoundly auto-gate adaptive patient faster The workflow, feedback deliver increased clinicians auto recent desire MRIdian on table by allowing our features expand automated customers The customer's contouring of desires. auto-adapt tools. remote for treatment new On technology. treatment the streamlines newly These of AXi top times and Customer complement our us clinical auto-contour, to workflow intelligently. address and parallel enhanced innovation throughput. brain front, and is The utility with our voice to we're guided clearance allows AXi work. by deep customer

the of mentioned X past end, the As quadrupled and doubled years, front of treated. at number programs the MRIdian patients over the I more than we've number

of built but virtually rebuilt the The team we the aspect has every heightened or of time, pandemic our that During is difficulty, delivering. degree company.

and Our clinical, Zach. We're the and we're the of I'll strongest of history pipelines call are company's changing commercial now position paradigm accelerating. to care. in the innovation the over turn

Zach Stassen

release, Scott. details our Thanks, results today's guidance we'll full business for found cover with in will can morning. filing XXXX. and I Today, our our fourth quarter XX-K press year tomorrow be Full along and be

X. Slide to Turning

versus quarter, period one our continued the revenue and by revenue innovation Service For grew units grew three to upgrade XX%, year. great reflecting our in including three base $XX and revenue million, the driven same installed growth units by team. last XX% work service in

$XX XXXX by service a million, in including XX full year, revenue with we accounts. two X in contracts Service XXXX. and units the XX% versus essentially revenue XXX% units active For XX% to ended revenue upgrades driven grew of grew

During increase million. year. received five value ASP million. value over Order same $X.X quantity their a represents of and the totaling in the This of a for gross customers last value versus XX% quarter reflection always quarter, the seven MRIdian was we currently ASP order XX% is system. order period period $XX how best last the orders order the same year, increase a

aim deliver clinical we anticipate as value. As and ASP and improve innovate maintaining stated we ASP to before, to continue

XX% XX period year. at For ended year, year, $XX $XXX increase had a the We the million. during the net to over the same last representing increase million, full orders a of backlog backlog

assess progress As and our to we the review it regularly we are backlog being when very to previously all on disciplined have discussed, systems. it comes made

over course As will ultimately a what feel reviews, these five very of as we the systems XXXX. convert revenue. report We backlog of result we confident from to that removed backlog

fixed during quarter positive see was $XXX,XXX year, XX, negative Gross highlights. $X the leverage efficiencies. costs million and profit an over Slide improvement our the for a $XXX,XXX Turning financial driven to XXXX of full you can and by

and XXXX, of cost move solidly we progress a of through basis. an XXXX, expect we've combination margin on turn improve gross gross we reduction. made a XXXX Since lot both on to growth direct on and annual and As margin positive into through

that in confident year, quarter $XXX continue X%. We our only million coming on increase industry an full Operating will the for standard make margins. the to in the significant journey of expense and to million $XX are we progress years was

ultimate be to investments drive. with continue disciplined our the they returns and We

Going forward, we revenue expect growth. growth to outpace operating significantly expense

cash use. to Turning

our proceeds financing November, net $X the the quarter. equity from use during in Excluding million we

the For our flow balance gives with the sheet, our full the year on to feel under we million balance use to get just excluding proceeds, equity and finished $XX and financing raise breakeven. cash the approximately sheet us in opportunity cash strengthens recent most $XXX We million. year

guidance Now let's on turn XXXX Slide to year full XX.

growth ranging of our two the XX% environment room in million and revenue deliver along to million. $XX XX% $XXX system This operating roughly year-over-year range expect confidence We of represents variability revenue to for reflects to in current with units. the from

we our use, variability to $X investment. This guidance cash million in represents is $XX and million between $XX million. Regarding expect an and revenue million cash $XX R&D driven to of to use in increase collection. range cash This commercial of due primarily utilize by the and timing

in reduce XXXX to cost and grow reduction of XXXX XXXX, continue benefits and cash again realize efforts. the expect beyond we as in substantially we Moving use our to

year for and for record it to We the for be XXXX opportunity prospects revenue are excited of a the ViewRay.

and worked revenue, has position to promise With gains manage company capitalized we and now to that, the well ahead. material to deliver make the the and deliver are to continue clinical incredibly as growth the several flow gross innovation Q&A. We margin The data. I cash through open will pandemic, call and and team on hard years show next our on

Operator

Instructions] from Our comes Pinal Frank with [Operator you. Thank question Jefferies. first

open. line Your is

Frank Pinal

the quarter see from Congrats that. data congratulations good here. to Hey strong Also, a there, on on guys. interim MIRAGE. Really nice

have to higher takes the sort of And the us of operating get first about are I that guidance should What of and On side? spend? and a how puts follow-up then a an I lower of guidance, guess I and side we cadence revenues included to the what question Just the And think then there? have follow-up. that. sort that

Zach Stassen

Zach it's so here. Yes,

of year or in our we of this this I well prepared remarks negative, set kind mentioned really point up for swing see what of a two-system year, a sort view. terms think feel demand positive kind from of I I of in we're

get of and of looks projects. later just year ramped the kind managing really we've to the a half first the your of So, -- we as into kind 'XX back it's year. answer lot manning into that we of commented And like before cadence then year the question, effectively half the

X. is year along the of revenue recognition a and to back QX see something think risk material QX the you'll end really But back guidance from lines. kind standpoint potential more weighted is out in the and of number a back QX, a spill of system similar the and X on end think half, to units. the gain terms I in ramp I cadence of of terms steady of of those X, 'XX

Frank Pinal

that. then the do hearing full should next how on Thanks. from oncologists? on release be and that set? we on touched helpful. Great. you that'd if MIRAGE, overall the milestones about data Thanks that And And of can you what there you think prostate perhaps guys the touch for on seeing Obviously, of earlier. strong program, data in And sort some

Scott Drake

Yes, Frank. happy to it, on touch

didn't the the other And was that the leaders obviously, therapy I think something know investors think between was social into some our well And two-thirds And incredibly received a via data I like media interesting customers there of on and fact conventional Twitter follow difference. would platforms. difference customers. has by remarkable of been MRIdian there opinion therapy. be coming and was what any key some MIRAGE

up with around And all sharing well. us for of bit and a it's the out wide I far So, we're customers sets having lot really that it of moment world. our there. an a And are aha think that fun customers

SHORTER, very having to it safety of that the sets, to can that we've also show a the and FORT, March, effect complimentary getting then is fractions and surgery do to prostate, we're MRIdian specifically a will by two of therapy, not post-op MRIdian will invasive data and a in very where designed SCIMITAR hope, early we a within here upcoming got which one, and ultimately then therapy to relates but aggregate course and therapy As week compete of things. we only getting excited have fraction, way the which the coming in And first treatment if up prostate, surgery short of effectiveness and to fraction completely SCIMITAR, goes patient frontline couple Number studies prove for everything days. be follow show XX about. with two noninvasive the form the catheter it's to

attractive will clinical that hopefully So, this we data alternative, very unlock. think a that's

Frank Pinal

Thanks, guys. Appreciate Great. it.

Scott Drake

Frank. Thank you,

Zach Stassen

Frank. Thanks,

Operator

Thank you.

of question Stifel. Rick comes Wise from next Our

Your line is open.

Rick Wise

order recent Scott. year, the talk of package over you're AXi terms impact I next to Good just talk throughput, comments, some MRIdian Zach. this said else talking launching, months? this what maybe have building cusp Hi, Maybe innovation start about what but about in business this positive of all with maybe is product on off from see and afternoon, might product as the pipeline, what XX launch launches. pipeline the you new this, year? to about means I'll of And limited in we terms us pipeline the the next going Scott,

Scott Drake

Rick, it, and for to the thanks happy Yes, question. share

from success company. -- perspective it a company. of of I and treating think innovation what way the proving others first, pipeline see mission can't important proving is the our macro commercial critically driving is: the we The the is to

heard customers begins then I they MRIdian deep pipeline work everything is the we commercial from fueling that represent. is brain we wanted in it and see our is So, see to would to pipeline. referenced remarks, do, moving very clinical the into the we our the MRIdian feeding in expanded with AXi, prepared we really system. clinical customers like value exactly capability our and with Rick, what And as And they really And clearly what that treatment. from understand what innovation

And they key to heard that XX ultimately treatment prevailing minutes. simplify getting the drive more streamline So feature want feedback we've and is that is times clinicians to AXi. from throughput patient workflow down a of under other

So AXi. that's be a lot delivering to of what we're going with

around of front And to be then We year. be will much it the that up new who of in forward the driving half as But is in driving customers largely to you back AXi. XXXX looking will launch doing world a receive the of and from from to I year is see be precision think they relates And can half way. disruptive beta with you going as figures X, MRIdian. any here the defined the seven the are continue very to these next go very us customers we capabilities to us MRIdian. other here Rick years the to us want think personalization I care we're those the cost we it over innovations, from and cost to continue by taking other MRIdian a of are and but as not along disruptive, What working that as our want X as the with things expect importantly, significant be out hear in of clinically, on simplicity program. down we to really open

'XX. you of 'XX and and timeframe You're not lot out the the here coming 'XX get in But going 'XX, impact, a see new until to with we way system. of we're when along packages on the that some into will progression set probably see features

gives of innovation hopefully terms a you So our pipeline. product and in that little context

Rick Wise

we didn't have on fourth ViewRay with Scott, than and could related if clearly backdrop? heard better. today, things order of pressures the It turn we the first trend to U.S. do pressures, we of install discussion the Obviously, earlier quarter. think highlighted orders January, in Omicron And impact discussion, getting quarter, competitors back lot months results, anticipated key almost It particularly that an through your COVID one certainly January couple are How maybe rates about about to the leading does. quarter are your softer during I a

rates, your all the should -- rates, saying year? year? the maybe Can quarter do first that we even confident it install through this moving and that, to is, of your seven, is when the the flow up about So, And happen that be order how question think I’m that we eight?

Scott Drake

I'm would Rick, Yes, the way perspective, performed really with I say the the macro course throughout from has pandemic. the pleased team whole a of

really countries our from continue perspective. the to it And in I that pipeline getting do think, you, creative or about tell are relates any 'XX. We time year. very, from we anticipate have I time here supply hope throughout challenges being order will feel we've shared chain frankly, And, into hospitals we and to mitigating to specific good had we would a impact early that as full installations.

take that in pressure, more I is clinical MRIdian think that really other I be is active Baptist Rick, really incremental two hold that fact that two we systems agitation, a four and feels and would that that in and got forthcoming, pipeline give ordered market really moment that to led system effect. In the MRIdian traveling is which South, highlight MRIdian an desired So, quick Florida, data we you market patients the Orlando to which And more, beginning hand, the ago, really GenesisCare examples. from on the the to good by I'll being we've have treated markets. programs, is innovation us, more to about just Health talked having order. thing

So, centers state. we'll currently online, in have the California. in six part active MRIdian of across systems country BASS, we have programs. freestanding now we the have one Southern market that at another three and and UC California, two agitated have to go southern the coming those Stanford And Then three

and that going have And seven to see in of state. States. we'll systems more the in United more So, you're parts this

performance France, we're of going Japan. it pressure more you're in of U.K., seeing that's it it I bit confidence us 'XX think little we in happen and gives You're what our Germany think a more need apply I the really more beyond. in in relates see this. And Italy, to seeing happen and in to to But and as

Rick Wise

Great.

Is maybe optimism but Zach, in couple purely it? highlighted that are spot. How top we each And think on factors, or the in positive quarter two just let just Zach Thank half? just your a it it than XXXX. more and Gross what they'll the you -- could more put fact, second mentioned volume? about him positive it [indiscernible] the of you Is turn drivers? this you. sneak one answer In do margins,

Zach Stassen

Yes, I right think quarter choppy. kind it’s of a little units at level a revenue a now. It's we're with three

It's over but we've on that a basis. think said spill really we our business about We really quarter-to-quarter. annual an expenses installation this bunch, from have sometimes --

line year, the improve I to think I expect kind cadence, the in margin gross quarterly revenue. throughout like much of with

So, think related in number directly given to the similar. of without of kind too revenue of getting Yes, any recognized similar quarter. terms I specific, units in

Rick Wise

you much. Got you. very Thank

Scott Drake

Thanks, Rick.

Operator

Thank you.

Our next Piper question comes from Sandler. of Bednar Jason

line is Your open.

Jason Bednar

unfolding Hi, well on thing. And Or backlog tracked using for looking as should 'XX to nice be maybe you at thumb guess, good the finish forward the next a ViewRay. time that? over kind your the like are here. as of will everyone. conversion business? the few Is business we do maybe above of were improves? next in the that few Scott, installed hold leading presumably just there indicator your we years that system's something to your as all for 'XX? roughly years, revenue at that's revenue far Congrats the metric for to rule be a like out year growth obviously then is in potential equivalent year orders think over here one orders it's a moving book-to-bill, just see how [ph] And I booked as

Scott Drake

thanks the end Yes, Jason, great the for at there. compliment and question front

right going a you years it road. way, the that in if X that's about year, roughly take that approximate I given revenue in down think any to orders you're thinking

hand, I now, here really for instances. for system our find us us prior On is right we up, about 'XX, in pressure customers that center, you're they're extended we've will going a in order have ground I in question I cancer What to and kind and 'XX. order this an roughly again, in that in certain backlog helping that referenced as from speeding talked period. may the interesting up previously, one is market of reside the that think and happening what's a see building

that we're slow kind then of analysis we order. ground, as frequently. hand, customers a recently, more want very another patience little program, a of to MRIdian a that traveling every and want patients because with the to for urgency, set something be higher more don't get therapy. they systems a other seeing more going the as but And treating state customer, especially we're level had that and I On want to patients losing expectation And And is system. MRIdian possible. customer now this they were from kind frequently hearing is the of quickly quickly it's what more of to as the here to are in moved an of

in wants backlog. the flagship the they're over I think building we shortening a -- a time, time our bit time that to be mentioned, again, it's I will some order offset of a instances, those from that average where have going So, piece ground by in center up. But a -- like somebody technology cancer that an is of

average is So, bit and your I puts time. a but of and it bit hopefully a narrows X-year right little over about think takes,

Jason Bednar

got And the maybe part and several on quarters. that business in for margins have helpful. for me. probably That’s burn Okay, going it. to loss quietly the improving operating They P&L one critical Really, the last narrowing to been cash most the forward. gross here then

years I system in to MRIdian couple million of a that now response that system. of here net came think mentioned you the Scott, X about again, ago, just recall per Rick's cost that question. out I talking you actually,

put I Zach And today. safe early willing to to getting stage a is still normal industry margins as of it's to So, journey. there you'd guess on timeline at we're the reference say gross that be

Scott Drake

Yes.

perspective, in. and invite macro touch from Let then it me just on a Zach

'XX, you points over I'm 'XX, when we wrong. I annual I gross think correct at going of And and then at get to timeframe. to you're benefit improved 'XX basis you on margin think is XXX if Zach, right, in gross think look going if in the margin things that down 'XX the mysterious, us. is very out work. in big This supply working And timeframe. that all it's kind engineering on -- of happens, cost like we're so we've backdrop to not to with that of any we kind work journey, improvements, that And roughly little see macro comments It's chunky aren't hope the he something a clear basis, this an But these that is you're project a our and got big in look is Zach the our of Jason. I something lot make 'XX, confidence me that those wishes.

Zach Stassen

Yes, of year absorption what year, -- will and I raw will by around install come driven this and think growth, next primarily fix infrastructure related most be is our size and -- teams, of other decent gains just costs. revenue costs, just infrastructure a

I well then down and as each keep revenue that the side And timeframe. helps the to of incremental this. kick Scott on trajectory in 'XX think moving really mentioned unit us cost kind 'XX So, the system will and

improve MRIdian opportunities opportunity new effectively as see we'll scale-based we'll that also -- business grows, service as side, from invest terms I freight of enhancement rolls usual opens of there. as as an think think, installed have engineer field service get we and to accounts, system. field those one more a density grows, our just forward we agreements, service base leverage. to we'll kind up systems, have support per around the now On in really more supporting. economies of And And and installed service the machines base And service then I Right new off, period ratio in -- generally our creativity customers. of our more into full of roll margin scale then engineers our regional a of it's our the we warranty XX-month

Jason Bednar

a maybe Okay. got be like take if X-year volume and normal, that'll years, may and to on just follow-up to there, Zach, the then kind couple is timing maybe gross we're thinking a there gross industry mean, 'XX again, you've I you margins like getting care this out cost that, plan but is I'm anything, And of, and then the that to the of get hold next margins. down of in 'XX. not the industry

Zach Stassen

bullish. probably Yes,

may gains it I that kind the of you'll of kind And years. X X over material the way. be in opportunities probably, along But ultimately, I course us of think there make some achieve the see years' think timeframe. next

Jason Bednar

And one for more it local hiring just in looks are me, perfect. some talent China. you Okay, like

waiting hear have needed whether And been that will a trial to might you the as on think you a update guys. market? required? about think when guess, clinical trial have [indiscernible] that opportunity the have be do local in right then be whether I market? Thanks, an to way I that what's sense to will approval do we've once we from in

Scott Drake

at I'll don't to that. in Jason, this And still on time. touch any to on Yes, he We comments invite Zach have that wishes. announce really clarity again, make front and point don't have anything

want an can don't don't we expectation think -- create I that we hit to there's So, here.

XXXX just for apprised include for we as we market year, think, commercial our to go we'll relates forward. models keep you us. the anything us, as I not a So, opening up in it China ought as specific And

Zach Stassen

local side of talent Jason, the on Yes. I And think, things. in

a move to if think the either or have phase whether event, commercial the opportunity trial, run we any have path, in to I more we quickly.

[ph], -- we've help China what to things us ground what get and think I Boson felt to the us in we with collaborate on done the zone, time request. is same effectively necessary somebody [indiscernible] have appropriate for in

really that systems we we're need MRIdian is whether that selling sites, we at in -- think trial something for resource or enrolling in patients event. certain a either I

Jason Bednar

Fair right. Thank Very you. enough. All helpful.

Scott Drake

Jason. Thanks,

Operator

Thank you.

Our next question Oppenheimer comes Company. from Suraj Kalia of &

open. is line Your

Suraj Kalia

safe is Zach. Scott, healthy. and Hey, everyone Hope

installs? turmoil at And of the some geopolitical times. [indiscernible] current how the do factor would specifically, Scott, in So, influence y'all to European

Scott Drake

Yes, first of that part you hit the Zach, the on question, want second. and I'll do to touch

Zach Stassen

kind ordered rec Yes. rev to Suraj [indiscernible] you're [indiscernible] of timing.

to time we've historically, XX-month experienced think frame. of I the XX kind

dialogue think beneficial customers we're with I and with backlog. shift seeing as both with in prospects we timelines talk the a in refine orders

prospects we're you patients to want as the question soon possible. be hearing more and think, treating ask we as I when more, when

chip this And your think, second maybe of away frame. around at Europe? I at XX-month -- So still you that that's to of to encouraging. And that we part of sort question I then stands kind time rephrase the point. hope currently But XX could

Suraj Kalia

Yes, all you influence have installs? some to your the just curious how geopolitical factored of in turmoil

Scott Drake

from Yes, hearts we're first, all that people resulting with number our active investors, surprise by I might an the and the working have planning, to war. is that the way impacted out invasion about think on of we Suraj, we programs contingency say, go The would installation -- it of standpoint.

have perspective, expensive we've comfortable happen. whole but and this to to And pandemic. unlike we of difficult what the planning, something our how so, to done get contingency concentrated, things that's predict bit far a not pretty But the very wide path more have is from throughout

our some So, believe point to out time highlight contingency is in this go we sufficient impacted. there. our you planning to at risks of mitigate everyone hearts again, And the that

Suraj Kalia

And Fair ask will albeit part I enough. one a question, Scott, question. multi

treated treated? layers or required number helm, type know -- let's were X,XXX, it. say So, Scott, and of that so on if And the adaptation? percent What a far, maybe table kind couple to patients if could cancers of dice let's What you XX,XXX at were you beneath. of say define you since X,XXX, don't I patients could, however pick I want since last there X,XXX to you the a X years, are slice

Gentlemen, cadence with or questions. next couple see and years other you Now armed my how the Pancreas, MIRAGE SMART thank SCIMITAR with soon do the are so? for of you that taking over you and

Scott Drake

your clarify on Thank you're that Can front? data question Suraj. referencing clinical the there, the that cadence isn't Suraj? you Or what's you,

Suraj Kalia

[Technical because Just the system right? the system, utilization, you're armed with difficulty] right. now existing utilization, around, data,

color be directional any curious just would great. So

Scott Drake

turn to a of you I'll it over Yes, make a couple shot I Paul And maybe happy that. Strong to comments. take after at

XX% which -- So, percent the in adaptation, treated in the United XX% average about obviously, of globally terms about of all, treated first system. overall States and is A SBRT fraction of in market the about XX%. five difference, our on dramatic patients between are

patient. at of to So, are start that I two somewhere three that important macro percent per of between think is it's treatments kind and adapted The level.

that like delivered in So, thumb, very on a that two it rule of adapted, three MRIdian are to -- as range. about something half rough fractions it's of

cancer treated, down pretty of patients we of back pretty think give terms that And that on Strong, on treated a sense was two breast, if for us the given MRIdian. broadening it going XX they to MRIdian. here, a of bit some any time. it how you focus across Suraj And common see what In prostate cetera. break for were a I with with kinds really XX% that, types cancers of pancreas. prostate, treating the back about is X a varied customer share had you interesting, are if in treated sites go years, one that And just you, in are with of moment or little Paul to What's roughly at you et of rapidly. XX% to we a how would growing I cancers odd

that's frequently third they you treating. were turning Now, original now sites. customers And our even a we've is doubled fifth. or now that MRIdian that asking second a system, what from expand And a cancers or of number to out into those see

so in expanding recently MRIdian We strong, one our a treating they're and customer to about and fill of couple they're cancers of question? utilization helping with their the system, kinds how have the Paul there blanks Suraj's ordered that that's system. fifth

Paul Strong

Thanks, Suraj, And Sure. [technical the thanks Scott. difficulty]. for

the terms utilization. your clinical of how question, in was second half that data the which think impacts in I of the coming,

liver of to for Scott treated tumors As now treating one ubiquitous reach clinical large and the [indiscernible]. of And those a the of justification opportunity the being application there's patients Combine the treat pancreatic with data motion, better on to mentioned, on that sites a now look a are tough lot their maybe the portion they that more with key conventional to cancer MRIdian. with gives were innovation an safety there's profile cancers now that just But treat technologies. do for cancer. MRIdian, based is technology pipeline then what more the we that data. metastases remained steady. we're with Scott more bit was the the to those fact treatment one that faster there's get anticipate with would to early the cancers, treatment talked to see Other the and of on quite starting fill there's about has in advantages breast And I that of been And customers -- treated start in tumors of of including times. and a sites clinical now ubiquitous has with

technology for patients. treating down a data that growing leaders on cosmesis as have and in interest adopt the the one Weill So, at well to those their impact published well in treating here a in cancer fractionation those Europe. in on ago as to starting toxicity starting [indiscernible] reducing to to the few was of patients U.S single as fraction. They years We're now seeing Cornell centers reducing patients both as

we'll are many X is as from start technology really just justification the the mix the that suited they look think anticipate clinical drive over described, data I diversify of like. because can't to based Scott, thanks. data that I profiles on see to why grow the X to market just The based what the tumor would to in data. the broadening Technology. know out starts Scott that UCLA, come will of on or are the project time pressure starts to heard years of the that I triage treatment I of what best. patients which and So, to number patients we've for best MIRAGE as MRIdian

Scott Drake

Thank you.

Operator

Thank you.

Stanley. next Our comes Morgan from question [indiscernible] with

line Your open. is

Unidentified Analyst

thanks Kevin is taking This for Hey, questions. on for the [indiscernible].

me. quick two Just for ones

you've First, MIRAGE there. from so note around awareness little aftermath [indiscernible], just access expand anything the just I on in was of geographic wondering built if readout, around the you perspective a a of particularly could just

Scott Drake

I'm In -- …? terms Kevin not of I question. sure, the understood Access

Unidentified Analyst

kind of awareness that you've the just but built, that highlight awareness just it have readout would is since the particular kind more then geographic broad-based any readout? the of since Yes, centers that or you overall

Scott Drake

that Kishan tell response do the his would and Dr. the we I we have Well, and of Q&A a fact. some you -- did recording [indiscernible] after poster presentation of kind

and as MRIdian really I get And been a that communication I expect interest, of well. terms positive and U.S the U.S prospects, at that have then It's a active and MRIdian the seen Europe in heavily, global our over the those from early -- think are more get have has been to users passionate and response, and specifically based interested in now. I returns just broad and aspect. very market of an very of that to think word community presented we opportunity the probably response us lot time, we've pretty think a broaden we I as out But ASCO GU. the

again, ultimately, interim will data be become future that's then the the MIRAGE I as future final set MIRAGE at once presented likely conferences data in think the and point -- some complete. the

SCIMITAR year. be a complement that of we'll or the So, rest throughout clinical data of course the drumbeat then kind it'll the that of and nice supplement with other data. And of

good So, it's yes, been it's -- far. so

Unidentified Analyst

Got you. you a want follow-up the your quarterly to across And maybe you. just little on bit perhaps cadence, the question. just unpack quickly throughout Thank Thank on I items the it. Can OpEx three-line 'XX. and mix

Zach Stassen

think rate of I the G&A of course throughout more kind will be steady year. the run

on G&A with the I are, grow adequately side. say of business the kind would We invested to

making some then things general demand year, frankly, to for the side on investments this MR up, and and on year, further MRIdian and the of open throughout accounts those important. that successful start broadly expect and happened programs lot to support both year, on And investment both of one the build more, And can I the if costs we these of on side, addition incremental marketing and program a lot based receptivity on projects in you incredibly the market a sales leads is more the work. the seeing down another, technology so that mean, marketing sales increased renovation awareness think and marketing the a in I both light what in a see data, last not reflect the additional of ramping of in and we're just to ultimately Linac the of of new of if these as success bit ramp our MRIdian little kind and each R&D category, we're of sales then speaking. also new of

the those see will course sales the throughout it's some of of R&D I So, over hiring is year. of the hired course so a and than base and think a because will marketing you the get year, ramp, that smaller people

know don't … answers I if So, your or question that

Unidentified Analyst

Yep. Thank It you. does.

Zach Stassen

Our Riley. you. of next Justin comes Walsh question Thank B. from [Operator Instructions]

line Your open. is

Justin Walsh

more clinical attracting color as see them some on terms the in of questions. convince that wondering more taking see some trials system? will they the customers? I'm to for another centers have that is on thanks convince a questions are role of who how if answering or you Do you Hi, if they're don't provide excellence fence the out you upcoming the data technology piece the new can physicians of providing of currently MRIdian of about missing

Scott Drake

of Great benefits educated say little to MRIdian. they it I kind of the would found question, be on and a both, Justin. how I customer and interesting. very the on it depends are of

a difference nothing a roughly the in arm would difference I and of two-thirds the was fact The ago. be the this of the bit referenced data think yet stunning. think short there didn't polled conventional when customers I that MIRAGE little arm between MRIdian and

the therapy we've is. But as forward. that better the accelerate with so or we've kind just years that instances, it's different, in I really instances, over is and with this and hard thesis other different that's getting and past we're had that to X answering armed a you're has. about profoundly certain believe And data really of talked or that solidifying further a the and customers to pipeline move customer in think commercial that how question really, armed So, it a challenge for the shocking really we hopefully better innovations

Justin Walsh

sort do I which of opportunity to your ceiling of X,XXX competitor? with of thoughts what know could X,XXX many continue replaced highlighted that Linac kind Linac, of to year. you sold data of yours the And overall long-term the long-term, your of believe per realistically either you by MRIdians MR or be you market But how guys these in my builds the have the just the jumps grow as question off I'm it. wondering last and that, sort and on of is, here, the guys momentum, clinical are Got maintain

Scott Drake

treat And we the customer would consistently Board, treat consortiums had of comes this with accelerator, types or I majority MRIdian. MRIdian, really, And very of that Medical frequently the various with capacity unlimited on answer have customers ask who a would they different unlimited educated if that therapy, to clinical the our is you the want vast question Yes, majority the answer uniformly Advisory capacity across a on focused on they of on percentage of cancer. MRIdian? patients of on that is benefits MRIdian back we the conventional share linear board about would the what answer patients that know and

translates with speaks our will a that little what bit patient customers think a what to cancer I you think in sounds feed it's to the that in that provocative, ultimately deadly type going this that happen technology. where It I to And fact a care. question but kind believe of and this is standard beam going? So, the of we this know for would and think not stage radiation is to say, sets and what prefer fair of we the become Justin, belief

done precision delivered there. is a individual of treated being those of where MRIdian questions because we specifically accuracy use and And ask the opportunity these to to yes, get patient, I are us back our to system and when broad need look still we obvious obtuse today that amount being think and treatment. the And thumb ultimately, we that say, they rules giving time considerable it's the not customers is cancer of to will that system. know of for we for someday the But know to the it's going think need that quite I to patient. dose take exactly

context little So a gives that your for you hopefully, question.

Justin Walsh

and the congrats questions perfect. again and taking for the quarter year. on Yes, Thanks

Scott Drake

Justin. Thanks,

Zach Stassen

Justin. Thanks,

Operator

for to closing showing remarks. questions over I'm to at time. Drake would further no any back I you. like call turn Scott Thank the this

Scott Drake

to thank Yes, joining we the near thanks, operator future. call. for all look forward you, again in with And and everybody very talking you of our

Operator

conclude and Ladies does conference. you. today's gentlemen, this Thank

ViewRay (VRAYQ) 25 Feb 222021 Q4 Earnings call transcript