Earnings call transcript Q4 2022

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Operator

Good afternoon, ladies and gentlemen. And welcome to the ViewRay Q4 2022 Earnings Call. At this time, all lines are in a listen-only mode.

Following the presentation, we will conduct the question-and-answer session. [Operator Instructions] This call is being recorded on Monday, February 27, 2023.

to Investor conference Relations. like Harrison, to now of Director would turn over the Matt I Please ahead. go

Matt Harrison

Thank you, operator. conference call. And welcome to ViewRay's fourth quarter

Executive Joining President our Scott are Financial Officer; Chief Chief me Burke, and Drake, Officer. Bill today and our

and issued of call, available our release are for website. today's Earlier today, press appendix ViewRay on a both which

and Going which of with broadcast filed in lieu live. will an is will presentation. webcast our website providing call days. appendix an will on be we replay be forward, of metrics, Today's earnings be key A our XX X-K being available for

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

exhibit discussion be the GAAP comparable historical measure Also, Reconciliations measures. include in today on financial with found most SEC. our our results will to years the directly the and Form X-K and of of can current filed two report financial non-GAAP appendix

turn I Scott. over to now the call will

Scott Drake

everyone, Good full and year you us to for afternoon, review quarter our results. Matt. Thanks, and joining XXXX fourth thank

Bill And our many Bill. of years begin, have for to our each to we a like ViewRay. and Bill Welcome, as to financial together He and Chief team. global is other worked years. Haemonetics I of known served welcome significant I'd Officer, Financial Burke. and Before brings XX and previously CFO new he over addition operational experience

performance and and innovation, today's our I'll covering year I'll commercial financial highlight clinical call patient metrics. key by start wins. key some full

and will cover Following my guidance. Bill financial our performance comments,

closing open provide Q&A. for the I'll call and thoughts Finally,

patients adoption them is The the accelerate patients. number a or five continues these grow to many to to to is allowing therapy highly as were and of with stated MRIdian the majority out. with date, MRIdian growth rapidly about The fractions side team to centers the vast back installation. footprint as precursor conventional get patient XX XX,XXX some and effect-free stark and has XX This we've throughput. fewer over get with virtually our or in MRIdians health treated ended day drives of day quickly. pursue back we stage treated to what therapy, in year and As in the We adoption expand times, contrast between in treatment of MRIdian company. To more our therapy effective, life backlog ground

top $XXX with has to team in major Turning revenue, million results great the over driven is done. crossing milestone testament by This full year performance our our by work financial a XX% line to growth.

to also projected, was company, improved this continue basis about for X,XXX As margin drive at we points. gross higher. will margin an all-time the and metric crucial high Gross

with the which backlog finished the the orders, increased our to year commercial We impact million. And reflects of success. XX clinical $XXX and

in On to accepted we're the JAMA were results the MIRAGE field. Oncology, that clinical share publication a leading front, pleased the in

efforts. the SBRT this MRIdian conventional Phase by supporting of adoption evidence adds was MIRAGE the UCLA Acute lowered to and work versus form Oncology zero. toxicity our of picked that these commercial significantly to was cancer. great highlighted X incontinence. a X get MRIdian conducted randomized the grade trial comparing localized for toxicity This for As sexual and growing takes by is a UCLA controlled major MRIdian dysfunction life-altering already the toxicity GI GU prostate patients of publication. body of We're in pleased see helping and effects therapy up reminder, JAMA the acute

organization. across wins XXXX yielded strategic the many

was our ease brain of are workflow, use, throughput resoundingly AXi, On next-generation positive. innovation feature treatment Customer and on front, launched. set, the feedback

in both positive more treating deadly survival safety value take to MRIdian a continues the common pancreas pipeline we alike. with Through cancers clinical the Our tough-to-treat short forward. this of and SMART belated saw disease. in proving and critical signals therapy steps when are trial, Customers course

X advanced intended a to controlled pancreatic change LAP-ABLATE, is trial multicenter announced trial global MRIdian survival is locally therapeutic for This in how Phase cancer. randomized demonstrate of benefits guidelines treated. pancreatic also cancer We and the

and driving is customers. We it and are short groups adoption. highly and our seen awareness that that they our and are increased from also Patient patient effective, requesting I've for is will highlight greater patients This through have available, driving and clinician learn educational firsthand efficacy effect-free to it. data virtually therapy efforts. ZERO when PanCAN awareness market begun events engagement like levels travel course, demand of side our

a efforts To These results trusted are partnership into leverage to and that Katie as awareness, with such a broader is patient available population. our to broader Media in that and today entered working source therapy we strategy patient a is intended. highlight our Couric further evidence

pipeline. amplifies our enables commercial awareness clinical demand, effect. pipeline market and the data drives innovation Clinical Our

adoption, efforts All of and these the P&L therapy to revenue margin growth, precursor leverage. expansion drive

year I'm was the done we've and proud past the accomplished. work that of all over that

our deserve Our most challenges promising who persist. macro for customers our XXXX, several very need that therapy. cancer despite milestones team ViewRay, and major personalized We hit much importantly, year look precise to and another and promises delivered on forward significant patients

now the I'll Bill. call to turn that, over With

Bill Burke

and release, filing everyone. afternoon, quarter XXXX today's and press this and fourth will Scott, details call. results our found in you, Full be XX-K Today, subsequent be our can will good 'XX financial fiscal provide to I guidance. our review we Thank and

I be his ongoing with the graciously the comments. me I'm thank I Before to as which welcomed continue a I'd for Zach like want financials, as support with begin has a teammate. to the of we ViewRay team, transition. make to part few excited

patients' ViewRay journey, to amazing lives. on anchored both having internally of past long-term learned by positioned The for the MRIdian's have care and its impact MRIdian cancer become quickly create learning value leading to and I've and opportunity that the seven been a clinical the weeks technology experiencing excitement, evidence. externally, technology and the positive treatment is about about standard is

There percentage and of During limited revenue for which as quarterly intend other construction site of in but including the to systems. that we permitting in value of uncontrollable sale the we of Each MRIdian. influence, items, have Timing results, and customer a years. quarter, well represents with required way business individual events multiple long-term are we quarter. connection impacts in significant as measure our process these each elements where MRIdian often are install creation, which may impact installation no installation

in our far the pace company's perspective stage growth. to these measurement. satisfy a barometer chain a than annual are relevant results and the resourcing from requirements we this installations more At throughout supply Quarters quarterly and maturity our as relevant in continued business scale, year for are

guidance. by the in was fourth revenue, and same to XX% year. million, compared XX% five Revenue period increase Now the product moving to on $XX.X units the quarter in which the to driven prior growth compared an nearly financial highlighted in grew units, two revenue year results prior by to of

grew XX%. service by revenue We also

an in six XX XX% revenue year to compared by the same in units product of units fiscal XX% 'XX driven primarily million, 'XX. in Revenue to to approximately including period grew in $XXX.X fiscal increase growth revenue the prior

revenue to by service grow. as base XX% We also the grew installed continues

to was the compared of year, the approximately of in our expense prior revenue led XX% minus same product X% the compared quarter last in same margin base minus fourth X% Gross XX% by with leveraging to period year the was demonstrating in Gross margin margin period. additional benefits units.

in to Sequential Gross decline costs prior due that margin current the year. service the from service fourth trend from third by parts same fourth X% a to quarter be period quarter. quarter XXX declined basis and X%. anticipate do gross higher fourth decline prior The higher service freight of consumption margin compared in was to to in year points the onetime in XXXX. to item decline a the We X%, to was quarters not on a third from the the the sequential X% in quarter benefited due the

essentially XX% to margin 'XX the led Gross of year compared year additional in of was X% gross period. approximately revenue the period, Gross same product driven units. leverage margin compared from by same fiscal approximately prior the again by to was XX% an once breakeven in in margin margin benefits prior

Gross the margin X% due the in minus to improvement of with X%, was year the growth period efficiency prior gains from same an on installed service base.

to We initiative term short margin continue positioned to mainly well to margin, attributable the see term. the improve down in growth longer we and gross are our our gross cost contribution in in expansion, units and revenue with

other quarter, same and an of compared to fourth income expense year In in the of $X.X $X.X million period. was income expense prior the million

on liability price Other 'XX, balance other reduced end same $X.X a the zero primarily prior of year-over-year impacted the warrant by share approximately fiscal income to lower expense million from the sheet in expense period. period. was compared the was income year For a at our

balance, was increased by driver higher on notable Another interest costs. our offset cash earned borrowing

for million loss share or fourth Net year share per $X.XX or $X.XX $XXX in Net period. loss net million the compared $XX.X $X.XX per million period. per was same in fiscal or or the loss million of was $XX.X to $X.XX the compared a prior of prior of year loss share net share 'XX quarter same $XXX.X to per a

with 'XX equivalents. million cash and in fiscal ended $XXX We cash

Our cash 'XX $XX.X million. fiscal was usage for

payable. into pushed confidence inflation, expenses exacerbated have time usage year by but was frames. net $XX.X was combination fiscal with partially elongated the of has deferral the proceeds currency interest from ongoing future And 'XX accounts November collections foreign from a operating We and debt offset a this rates, cash periods, as capital some and higher impact been working collection deal in by there term loan refinancing, collection. of Excluding higher usage Cash customer for certain regularly million. we for high was

guidance. 'XX fiscal our to turning Now

the the We of service quarter. expect the to about $XX growth turnkey in revenue. includes similar planned System in with at revenue and will XX% two fiscal revenue. be of be growth seasonally half to weighted of million This fourth back for approximately XX% system to year total in late growth the units XX% revenue range

may primarily A update not Revenue guidance the health but expected to turnkey at of recognized would units variation our on in customer acceptance. in any an two the slight our underlying reflect from these is concerns timeline result business.

critical adjusted adjusted will for cash with our providing as flow greatest of capital business. capital elongated within are EBITDA substitute measure believe is our our a be company supply predictable years. chain and collection a pressure point, is We which guidance 'XX, in or guidance a the prior particularly Working growth in We for consistent more fiscal times. initiating as EBITDA and and metric

in We to product our to adjusted million cost $XX estimate range a million the to of to be and costs initiatives. million of down includes loss EBITDA related fiscal our $XX $X 'XX $XX engineering for million nonrecurring

For approximately $XX.X fiscal was comparison, the 'XX adjusted EBITDA loss in million.

the in to-high largely on upgrades. margin the strength teens gross mid of guidance, On of revenue AXi we expect the number predicated

experiencing cost to a also initiatives. grows leverage expense rate expenses despite revenue operating our We than investments down anticipate short product as operating at more related term significant

into We continue overhead expect making growing to our strides structure.

that, to few a With the I'd back like call to comments. Scott pass for closing

Scott Drake

we we and and that Thanks, Bill. differentiate with to are ago, data, Four delivering clinical on years lead chose promise.

the data, the only are meaningful this We we happy we the very put in space and clinical leading stake are in with company ground.

be limited was niche Four to patient application. years perceived MRIdian with ago, therapy a

before now customers Our top and customers XX years customers thousands more patients take Four desire quartile from throughput. expanse benefits increased effect. heard is over types tens the year, treat of have and over across a our AXi tumor of that ago, XXX Today, common of of we for a treated the cancers. tough-to-treat patients,

ago, were centers. academic of our years virtually Four customers XXX%

approximately customers our Now hospitals. of community are XX%

four past we have progress. significant the years, Over made

years greater of are drive clearly to is ahead. positioned adoption working, and strategy the therapy in levels Our we well

for open call I'll Q&A. that, With the

Operator

Ladies from Stifel. you. gentlemen, conduct question-and-answer session. question Instructions] the and [Operator line Rick first Wise will Thank comes we of the now Your from

Your is now open. line

Rick Wise

I'll Good orders. start Scott, Maybe Bill. afternoon. Hi, hi, with off

representing solid good through consensus the for serves, we feel if potential heard new fourth But I had the particularly about which to order. to talked memory help orders, a nine Chindex order before. had your upside think year us quarter, obviously and you China like models. And expectations related You had ahead

how first that in are unfolds? sort orders So would as order think Help assuming year we as the several about about What and thinking the giving cadence And you guidance think you're us quarter year? of for things. us context. the

Scott Drake

in to challenges QX. from track perspective, despite momentum I that good pretty would few tell did I macro we we've an what for was company And Yeah. you QX, record had over think faced. order going past the what QX a record a the years we've we're of Thanks, surpass with orders. already nine in we announced the given Rick.

feel very about in we So good the business. the momentum commercial

a I think consequence. that's

innovation pipeline. talked drives other we've all it which our originates amplified and metric As all that our therapy of market our in in enables awareness, orders every adoption, many with culminates which That's clinical pipeline, in with times, business.

good very business. about of prospects at in feel I the we're terms commercial of So where our

we on don't actually reason. guide well, indicator as, that to forecast. I in and But orders metric, for feel most It of growth future is the in do to the the and one good We is business. it believe, that of front. an you terms know a Rick, very we But very good company an difficult important know the I

about On I U.S. of of But to patients. And one hand, largest and I going opportunity that in getting relates business encourage is the real we in embedded which a is the parts catalyst demonstrable the way in other a think in what what it a That the are the market. agitates period China, mitigation some that have very ground learned think Europe other is it hand, excited time. China or investors in China, really don't plans we in As penetrate about the our other we've on of Asia, there. still put terms have to think of terms question, fastest-growing second and we're system to treating and we for out market. to The upside risk in the

Rick Wise

freight, environment, issues. season To FX. far a macro expect think for specific you. what talking got component medtech has the macro from the inflation, Maybe supply general everybody's mean macro headwinds understand of Scott, if us terms been availability. or some extent seems this improving. of the ViewRay I picture, improving, could to 'XX? what environment heard chain yeah, Got in companies we've macro you And be the in not stable, about lot do earnings a message so hearing stable hope, are easing about I lot that help in or But

the highlighted several the complexity how and -- of of you've times again, guidance kind in embedded You've installation judging times given us? what's

Scott Drake

an great kind into Obviously, question. of bake these and year. and the take to of try we're of for standpoint, guidance signals Rick, Yeah, and a top-line. and grow of a now around continue represents year growth And beyond. pretty momentum on opportunity all from coming exhibited to of our challenges We significant our to million really 'XX nicely that that positive $XXX the thinking with really off all XX% backlog revenue quite in for the us

remarks call same the in continue. time, and our macro those At prepared prior to this that we have challenges shared

be While I challenges we those And today, it one in or components have of still even chain components our would overall face say chasing the takes though two only fewer improved, those issues problem supply we're to a unequivocally. really business.

say would still real I improving, is we So supply challenges. but chain have very

distribution we that that against Inflation, us our The against partners. and persist. work mentioned work others currency and you rates, interest other challenges face

pretty have to cash. they're aggregate given of their effect And quickly, hanging seen We the on their those behavior areas. change

the But Whether inflation past quickly rapidly. things back what the partners. even about of things you're currency up, cetera, change. how our And et move seeing now in years hit over distribution we've is COVID change we're three seen when spiked we've learned or talking pretty direction first can

to take and to provide as into chain, all got provide challenges supply best of those as There But receivable business. our forward. we account our in no to that of the account. all move into doubt is that transparency thoughtful do continue of we've we very with take we'll trying we in But backdrop, that cycles, be dynamic guidance, this very elongation

Rick Wise

if at to -- that's one maybe least of first a in bit. last I on just me for split, not to pick -- tough Bill business. second we you good should the as for helpful. should And half suggests the on thank ask Okay. But going call, half, perfectly Thank quarters you. indicative first what's quarter. Welcome appreciate Bill. I the about I'll I that predict that maybe say, ask we'll you the Current questions. housekeeping could. and you little tough are One the

current If might that and at XX% you I year step underway? $XX quarter with XX million and just at kind change. down this this Are the quarter? midpoint midpoint of looking the XX-XX sequential comfortable your -- quarter first consensus to the first change, get am of half look first and the consensus a as range. And fourth guidance, suggest at I I we correctly setting expressing Am all I'm

Bill Burke

XX try but and to healthy from really about out Hey, is to did I'm at a revenue away that guidance, growth to to the revenue with the specific So say you. to for just year units. that stay half what be to going appreciate going I'm said, stick XX And reiterate range which I'm of did And to about XX% right? I going be And Rick, thank to represents year, I'm would now. us. we ViewRay put just question. growth the the XX% you here, back happy weighted XX%, that growth for the we for to which quarterly is

guidance, there, again I viewed do reiterate although us as believe quarter-to-quarter company But of our better are I numbers on internally, the there's quarters also still do understand -- to say want quarterly that is to right? right, than definitely a too, out for value the we we annual basis. our want that important performance annual

to the inventory standpoint both critical. human of from how is -- resources have cadence and from the a resource installations planning also run We and have that provide, we

the throughout evenly thus installations year. try we do units So to those pace and revenue

to is a there So that. do business need

evenly per the at XX going to do obviously, they're X units se. you weighted when than look more at quarters, be So quarter

with the my the of to the half and XX% like back year comments that I'd just I made. stick other quarterly in So so

Rick Wise

Thank good. Sounds you.

Scott Drake

Thanks, Rick.

Operator

of Your the Bednar comes Jason from next from question line Piper.

Your line now is open.

Jason Bednar

And for any have Thanks noise in It's guys. afternoon, here had questions. obviously backlog first even advance our order you Chindex for background stronger the account good in [Indiscernible] you Hey, in the taking here quarter. is apologies taking here. impressive. the

backlog that some the gets Questions book-to-bill business to denominator hope of decline bit a conversion on in we and with a It's bigger next talk you're thinking when picture rates this the topic, forward we your will over starts improve, look that you're backlog asking that converting as book-to-bill few better. often either the but backlog years? anticipating you how can cases, paradoxical, there rates about to or respect about are, get conversion

Scott Drake

thanks Jason, question. the for Yeah,

think systems continue I book want right. I would is a that you're -- have It's don't it's actually these ground. interest paradoxical really we an indicator. expressing to That's you or is problem of And lot ground. And is a We system to kind one we're in MRIdian having grow rapidly. in a getting we've much tell definitely urgency anymore increasing. our of have control of and conversations really leading order urgency their great out interest problem. more our the demand with a in motivation And it the It's as getting of of here. customers that because our of highlighted

you a to our past take four remarks. over unfolding. the then your point, address we at you you, that back tell this company forward, if prepared attempted a things see pretty you step in can years, I and set look try interesting this the to What and project if a of you But little of transformation bit to

prospective now that to X, clinical was had Phase niche what years today. so perceived the compendium Not and what ahead. today, a Four and X ago, technology. is lies We know Compare Phase data, to data. virtually both clinical really no you MRIdian be

then we that four And we hospitals. virtually in we customers that well very that four rich AXi, there talked throughput now add of pipeline years were We today. about And will I ago. that along XX% don't have innovation are have we nor again, our years publicly we centers, not would had ago, the are of with exclusively we and community benefits say problem have incredibly and a academic about you today. very, positioned an is hear

you think the significant ultimately would I changes difficult So to things with slow Jason, when a look down down. it's bit predict taken have place book-to-bill and very very when would those that and come forward, improvements

to see many at of And don't adoption term. would think adoption parts We different that you it's happening like. technology in really also that in of will curve across that's the see medtech, those I what difficult project short when look here so look different instances, think I you very

Our the of and is more that very unsee the this radiation believe to a cannot meaningful the data both field is of in age. addition and cancers here of dawning you things future customers that common kind tough-to-treat oncology, of clinical an

think I characterization it's to So their with I it. but difficult And question, quantify very agree them in MRIdian. of characterize appreciate your I and

Jason Bednar

Yeah. sitting, what also a looking to trajectory of darn I want just saying, maybe we mean, folks lot Thanks, that, I that, But see the really backlog book-to-bill, convert. are changed want that that also that then denominator. shrink of wondering mean, think but as and saying, Because that backlog that's to Scott. I follow-up I'm piece, your see impressive. revenue at could that the not a we to

rates that years? a conversion back at something normal? may be far normal when next ever few to as backlog -- backlog over can at So I we we What's there conversion look mean, rate look get -- if we the what's as is maybe

Scott Drake

We that. in feels installation That too here have even we one that. hand, good still into of slots Yeah. conversations much more think I God Paul where customers And one trying And I of instances including good the really and that, weeks here 'XX. willing, have we or that's never a on Jason, over to enough will. to get to relates as on customer, our very of Offsetting couple couple see. it with penalties are hand. have past

that to and supply we obviously, shortages, construction of hand, But don't at other are process, hospitals both construction, the companies and labor lot control. chain. permitting on question, things at Rick's we a The fighting

real positive that signals. And say other are the challenges been facing would over I very on there have there's hand, time. we very So

mirror, are able been be facing and business But frankly, we've in we very over past to those are the the the terms rearview very happening that years. we in things perhaps want things that, the challenges transparent be When three positive face we'll real up. of that things both in the today to speed

Jason Bednar

Okay. I'll fair. That's the center here. if color business? all business the or I longer Rick of want set. you of appreciate is format hat kind on kind for the follow at And put mean, where I the guess, mix mix in on the your provided Scott, today. go squeeze maybe your you -- hat three-question center the were wizard to that your that community there, community one more where there, you I of term Thanks. whatever to wear, does kind

Scott Drake

brief I kind here. Jason, Yeah, can of be

think goes up. I it

I interest MRIdian. more more think in there's and

that patients, think new I the fact data, attracting people clinical our a the they're they're customers are that what showing, of net throughput doing. there's The fascinated interest. by are lot

number look you of hospital versus at community the larger. community And hospitals is just when much the number academic so centers,

see we go that's forward, of hospitals So up. is by proportion I the going to go you're going to think our represented community business as

Jason Bednar

on you want higher as just XX? it Or number that? throw Any than to believe

Scott Drake

a fourth We're question. good. like sounded That good. We're

Jason Bednar

you. [Multiple Speakers] right. Thank All

Scott Drake

Thanks, Jason.

Operator

Pasquale Chris from comes the from of next Nephron. line Your question

line now Your open. is

Chris Pasquale

guys. I sure units. I make Thanks, turnkey good understood evening, about your wanted the to Bill, comments two

units for the those how from or just gave today? different whether typical are could that term you guidance are us you then not define And just clarify that's So included install. and in first, maybe a

Bill Burke

question. the for Thanks Sure.

guidance So installation is recognized the units. acceptance. the turnkey units revenue VA completion are unit both specifically on in It's included customer the A provided. in we the of are these turnkey and where units

due slips year. not acceptance in the to if the change some may revenue timeline, then construction recognized So until the be following

point. on at we doing acceptance to unit the we customer understand get and And can. them installations I as quickly we XX want as is turnkey We're laser-focused team get know in by can. we December that done getting these commercial everything

the of slip customer X, until timeline they revenue But of of again, a if sometimes. It's acceptance like company. wouldn't doesn't just the or on that difficulty the construction just and of later. trajectory valuation said that be in January till factor three all -- anything or change And terms the days recognized what Scott the

Chris Pasquale

That's helpful. I'd be while maybe Thanks. And have curious. I Bill, you,

now, that on opportunities for structure got base. company's and a in be eyes fresh this cost a financials. how trying think at to to quickly growing Obviously, with set you're is but a Anything line revenue the up particular where could You've of there very here in focused get company the that at as capital you structured, working how come is managed, look sheet being balance you take improvement? looking

Bill Burke

Yes, sure.

-- established them. here, we've the finished I just priorities. of of just seventh quickly my actually week, being So talked right? set we've few I And we a a on Q&A here, spoken about

deliver to the forward. our that to that and going XX% we first ensure growth supply chain To guided The growth right? XX% continuity, is continue towards really

part margin. have second the gross really I Yes, is improving

million dedicated we cost running. down have of that initiative $X cost cost program it with improvement this to year. to in remarks But prepared I the that. our And volume $XX mentioned of associated later spending and longer gross that margin get will come And we're the because million spend in that the of that revenue term intent to is of of the that that Some fruits is down years. with portion and a

imperative. that's So

and I but we're the out also that being third too, I spending think what getting like that's of growth driving of the a and So we're frugal mentioned, combination then that continue taking right? revenue at really to a top-line expenses, And OpEx, what around spending. leverage is second look

after less say, company. like, this very want well-run [Indiscernible] questions is overall, But is to I a just two than months

too. value I think long-term I the Scott really has entire right and strategy in I rate -- the the is think There's team, place, up long leadership think not team created is run leadership company been a continued just but has the set creation. clearly And for long place, runway right across the and in for a company the success.

don't there's by board going think I me be radical coming there. So changes on any to

Chris Pasquale

Great. Thanks.

Operator

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

Your line is open now

Suraj Kalia

Bill, me Scott, you can afternoon. Good right? all hear

Scott Drake

you. Thank Suraj. can, We

Suraj Kalia

Perfect.

So XXX Scott, treated 'XX step-up little let me FY over a patients by start our a math, per out. The took in installed utilization on significant average. machine

So about I are XXX. systems your guess of about mentioned you quarter doing

an we curve. about So the of have utilization bell sort idea

Scott, contrast TrueBeam framework that much have CK what a say, let's just more of is we or are compare established a or so versus, and sort doing something? or MRIdian relative specifically, Tomo being utilized machines a More how

Scott Drake

Yeah, Suraj.

just And go that. your less on if from for back pressure were of years, that one who And throughput. you little touch was bit me let So the a that those familiar, we that's hearing a great point, few customers and be points been doing really might up even speed. only to in train them also pre-AXi. done engineering the not but and help what improvements customers through we're to we've system, bring in the addressed to And

what one we like they And pancreas of now, here, incremental account what and one Suraj, more treated prostate. time, of we're new next And they're generally this very type then in to or treating. what tumor by like tumor that after you're actively big And types is cancer have And moment simple difficult they the add either customers. that's individual a being with want find over start part it's of they and types doing to seeing kind something mind. aha in often

a personally, and is even it step-up And bit many or seeing and MRIdian, system will systems. to facilitated think what I here. know that there in further that's I increase, And think on purchase happens that contemplate what you system continue MRIdian and that full completely can anticipate more XX-week on are AXi. in the customers eight, forces basis, them be backlogs have that that, when by incremental this And you of we're per then utilization a instances,

Suraj Kalia

I for if map you forward systems this, Scott, year? X,XXX road XXX what, average. you we look us say somewhere are just doing to. should Or to on Would other normalized how push venture -- a could say, per is let's to

Scott Drake

XXX would be XXX take or the Yeah. low patients outliers give a on I say year. would end, or the

customers of now. XXX, north on doing looking On right their at the to patients. have XXX high we I'm end, of couple Zig may -- maybe A way

curve fully and once But to you that kind is throughout curve positive of forward think shift the would go going base. in more implemented you're we in to the right our bell that's a bell customers of way think find I what customer AXi as I again, today. the see

Suraj Kalia

and know leasing it. if there you. backlog, on if alive, And were many the specifically Maybe still questions the Scott, one love meeting, question, is to that you MRIdian. I can Scott, updated at of ago, get a thoughts still dinner I Bill, you, Would model was last lot sort for thought the some any I about Got musing remember you, Bill, for for that's a one of alive. about a right? for rephrase years book-to-bill.

and how been have as years, look -- last you know backlog, you three define added. And it simplifying over the at how even the orders maybe would have how backlog As more many been many churn even we the further, canceled?

happening is you turnover for the how my thank flavor some taking questions. backlog. us give Gentlemen, of in the sort just So

Scott Drake

Thank you, Bill help Suraj. I'll out.

know the the if year. this. of five three that's on had, I have question. answer past may But for come average, systems pretty component in over you years. three this years, on there his per Maybe consistent think over of systems terms not of other been sure we've out and I'm Bill, year, a the last backlog, ready You X Suraj

Bill Burke

for five orders that year seen right, or did what six But have And backlog come and we the just said, established out generally, answer, do reviews is seen what's we've based backlog. and criteria I of of this you is per stole No, quarter. my cancellations, haven't each taken the we're what the on that Scott, right? So We've thunder that out we know any we seeing, you there. example, right? like that year,

we've last -- XX as we put orders added XX the year. units year And the come and out Also, we've ordered this backlog revenue units XX this XX into out seen backlog units. year. last to We year come

in seeing. churn in overall, of right, terms 'XX. XX% compared of that in we type we're that's to FY have the But FY backlog, the a the growth increase 'XX So really

Scott Drake

Suraj, Yeah. of touch I'll question. your the And on part other

conversations about a of to customer to amount we the we upfront you conversations I anything, continue models, a the customers have do Oftentimes, the acquisition that We ongoing, ongoing full that acquire for lot And have if ready capital will. of say, a with have timing various more of have would MRIdian that to and conversations, system wants are lower Those in. like and about get revenue. models frequency. if they at in doesn't would kind increasing

the of our price math, work decide to will friction for to increase ways continue I on for And $X funnel. commercial looking think the top and have not of cracked always the and to the do average of the but million around overall selling the construction it. code that. But on often to we just creative our there, we when the do system pay we're reduce they velocity customers

Suraj Kalia

you. Thank

Operator

B. from line Your next Chatterji from question comes Riley. the Neil of

is now line Your open.

Unidentified Analyst

is the strong end on Neil. year. Hi, Congratulations a Brandon this for to on

sort Regarding the agreement you as the of Ohio do has And halo that Hospital up expect the pick would of a region? to region Midwest result? orders NPA, on University think you a in kind effect

Scott Drake

interesting that Yeah. multiple attention And up instigating in can't customers and in say some and Ohio, gotten and Pittsburgh of pretty well. systems I our would the as It's certainly Columbus to we Central conversations. up in UH. running also has other wait hopefully in Ohio, first get it Northern with

have to they're team with they there. the do amazing think things I going assembled that

part see announcement. accounts in to But would is that's intense already and interest don't UH the I But forecast. inherently It increasing to definitely more what I geography, to at least difficult geography. will would key So say happens interesting be to forecast something conversations. incited, say, in due in that it that to is try other I want

Unidentified Analyst

Okay. on with have Chindex motivations can the in order other color recent that to Yeah. Do China you behind Are the motivations compared differentiated geographies? China? you provide any particular in these system adoption the and

Scott Drake

highest really generally. say -- cancer Yeah, of I care, Chinese government the ViewRay, a China couple access of to is the things. wheel independent at level, Brandon, would the would say increase I putting their to to shoulder

Healthy have mouth XXXX has They need The China government initiative. they're there. with is it, where money their putting their and recognized a real their

conversations I as in customers, play. and Chindex of I their degree in relates it there. with that MRIdian role increasing the end a that with think there And the play can think is can MRIdian to is conversations interest

we given B or in Class have likely we until the shared system. cost of A previously, that XXXX. Class yet. to do won't the anticipate And Class As be complexity of more We not as and that indication have that, the categorization, any case we're be A kind

to Chinese think with But look, patients highly China shorter rest cancer our true what's bring is true in effects. cancer of patients. therapy treatment frankly, And of Cancer patients. courses in deserve I They more side to think everywhere. negative Chindex And attractive I the fewer precise, this the more motivated care. we deserve that's world. it's to attractive are patients in Chinese partnership to cancer And with personalized

Unidentified Analyst

have already published? the for have one from, you say, results study Do Thanks Great. regarding impact MIRAGE KOLs we the from seen that. presentation? that that incremental you from last Maybe one us. publication the any think the has haven't been heard ASTRO that What now

Scott Drake

Yeah.

the sure of compelling is an here basis, increase widespread, it get does. specifically. have this a whenever in mean, consequence is in helpful I that it seeing publication kind On I you MIRAGE data demand MRIdian as this data that I you a tell anonymized are multiple would this is to that we of that us. think customers

think it. I helps the publication

true, broadly Brandon. that's think I

seeing think We do significant the more radiation options, with and patients we you're would data that the degree more they I are talking full with of therapeutic set when MRIdian have. their that option. And are have share whether to they therapy, patients the a clinical you that about of choosing surgery non-invasive tell who customers or has

that of think there's talking one customers. is another. another another, one patients MRIdian market having from I awareness-based effect That And that increased it patient that is to we're clinical therapy demand amplify I with component is pipeline pipeline. Those a multiple to of at think market that our allowing two of here, us the talking and component effect about to innovation driving adoption. all the awareness, strategy the enabling

I it. will speak. firsthand are and therapy, that I short personally virtually when patients and story for ultimately, highly that effective, think that the we write effect-free seen that that, course, demand available, it, therapy they'll are and experiencing is is it we have they're aware patients ViewRay that when travel side aware as

Unidentified Analyst

taking for thanks questions. And color. the our for Thanks

Scott Drake

Thanks, Brandon.

Operator

you your this concludes for participation. There further are no call. Thank at questions This time. today's conference

now disconnect. You may

ViewRay (VRAYQ) 27 Feb 232022 Q4 Earnings call transcript