SWAV - Earnings call transcript Q2 2022

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Operator

Good afternoon, and welcome to Shockwave's Second Quarter 2022 Earnings Conference call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Debbie Kaster, Vice President of Investor Relations at Shockwave, for a few introductory comments.

Debbie Kaster

Thank you all for participating in today's call.

Joining me today from Shockwave Medical are Doug Godshall, President and Chief Executive Officer; Isaac Zacharias, President and Chief Commercial Officer; and Dan Puckett, Chief Financial Officer. financial the released XX, ended Shockwave XXXX. today, results quarter for June Earlier the available release copy press A of is on website. Shockwave's

could make begin, of meaning we material and trends, current which not that that I like and of revenue forward-looking our results statements and sales statements. safe will reliance our anticipated include to call during to within or to including Federal uncertainties, made the Securities financial product Before actual harbor statements this are prospects, approvals to provisions pursuant remind would are differ and management the estimates you the statements. and laws, events, that are to and relating forward-looking of in and this contained statements. place should XXXX. development Any expectations predictions these statements pandemic risks COVID-XX future limitation, Accordingly, from the operating or cause materially statements including, impact involve you Private business performance various Securities statements upon undue implied those Litigation events or Reform hiring these the results of forward-looking All assumptions. future that forward-looking based Act expectations relate or statements on of without by call These

list X, because the otherwise. on and business, filed or SEC. information as And reports call is conference report with description Doug. I'll on projections SEC future XX-K over in the any or call uncertainties please contains or to August live to For only Form that, XXXX. with Factors the law, by of update This and a as except revise or accurate the today, events financial of forward-looking information, and any whether our and available annual our turn broadcast Shockwave new of of time-sensitive file and statements, our intention refer with periodically Risk associated risks the obligation, section to the EDGAR on disclaims other with required

Doug Godshall

Thanks, review afternoon, everyone, thank you quarter and us the to results for Shockwave's the Debbie. second taking join XXXX. Good for time to of

to strong our We share global pleased are results delivered of quarter team. by the another

international once Our the quarter which the significant solid contribution supply that the of details of strength, additional increases grew the each using almost growth some contrast statistic of their is of represented quarter. from provide business mitigate sequentially these patients for able U.S. quarter market the outcomes and as witnessed Sales customers the across globe we quarter XXX% second second up XXXX XX% our a and will to coronary last XX,XXX We quarter. improve help witness compelling this but quarter. commentary benefits have this that begin areas of in over IVL a to business dynamics, and I in of $XXX.X at performance headwinds quarter. of and call, regarding Isaac patients, and every from were Perhaps respectively, team staffing across XX%, meaningful around our help million across of the treat with our first from topical to the Later continue the our is the will to XXXX. in XX% The period its most over XX% the again testament from year. strength this been whole. the the demonstrated U.S. challenges peripheral first sector quarter of quarter. first of

continues Our footprint outside to expand. the U.S.

tripled has since revenue more in than international fact, our IPO XXXX. In our

Europe, expansion, we signs are meaningfully are our to going of commercial comes in able We over of agent be early forward. countries. our XX international revenue And contribute now though we'll most seeing from

both existing digits. launch for China, devices peripheral procedures double Despite our had million modification each growing of the March, of XXX,XXX They of represents over both an in the is heels peripheral multiple physicians. granted their coronary to events utilization approval this including coronary audience and calcium, for rate are our in a initial opportunity extremely calcium PCIs under outcomes of IVL for X% year, in patients. peripheral products partners coronary Chinese in in X.X Shockwave and promoting IVL and been already China been in of which in have significant event great the Japan improve in that low for have performed prevalence JV China over On May. an approval Literally, procedures. virtual physician the X,XXX for both China was and There our of

over of June. launch. was CIT events team was person in Chinese it cardiology. or dedicated observe and to in-depth able who initiating engage and congress Therapeutics, we Shockwave scientific demos, other our with Conference fortunate XX,XXX impactful cases, to the highly were was IVL, is that participants leading online Interventional symposia, interventional CIT, And conference Asia The workshops the able as One held largest KOLs to live was in interviews. the just XXX training, the China are over in

many in quite the China, As scale things remarkable. is so with

July for physicians Moving IVL The The the cycle. but have were access meeting remote, will to to our eager in to XX% be largest MHLW IVL, Japan, fairly the certain we room are of symposium interventional the packed. us one Tokyo December the year, carried are reimbursement CVIT, now of held granting in was and was and in meetings today.

to now near-term Turning our pipeline.

can MX+ XX briefly a about was the to the complex spoken even goal lesions create as femoral disease diameter than XX-millimeter with tool the past address such severe further The have more into sizes. calcified common in which beyond even offer the catheter, LX and will our the what diameters in We the outcomes bifurcation. larger the and transition catheter enhances that MX+ iliac

bit more in an visibility. a discussion have the update regulatory pathway, on we'll once We FDA regarding timing expected and we are the with provide

generate data high-quality also continue disseminate clinical We to our and supporting products.

note Conference in and particular [Medi]. rate and results mechanism a publications lower presented X randomized more the confirmed action X-year had a PTA. Sky the clinical we were were unique and with of infections which lower PAD delivers presentations These of DISRUPT of data trial, at and that dilatation pressures gain quarter, IVL's significantly luminal versus significantly III the the During multiple

we with customers the was This statistical in may continue achieved with suggesting and treating diverge significance Kaplan-Meier in While actually additional curves of both primary see predefined their endpoints, improve of correlates the one results over secondary the years, our IVL very well certainly observations. to of X that benefits anecdotal resonates the the time. and aspects to

our and prep confirmed endpoints provides IVL excellent calcified primary secondary PTA options. long-term and future the in a vessel that preserving superior together, of vessels Taken achievement treatment versus successful outcomes

but scenes this and Our strategic would none commercial have in behind decisions without the quality. flawless nearly teams key of received possible attention been operations efforts the most the performance and of the of

have Santa broke capacity agreements getting build we the their volumes. result, ground of have unfortunate around at the and will facility we Clara avoid increase to which a being own impacted front, macroeconomic our will current our our in the given issues, work, signed current great Costa extraordinary Rica chain growth complement contract As world. have witnessed to substantially there, we supply by Continuing and just remarkable manufacturing approach challenges and enough the rather and the

cost to and and our scaling. do believe faster we run, in position our it is mature growth more online will effectively be new deliver and location establishing to up and products. continue strategy products operation future manage us expect when XXXX, manufacture also to that facilitate will of sometime to this and use will We more We our to goods market

Given I over closely, aware $XXX the President, Commercial full we as a the have I before Officer partnership pleased will has leadership witnessed growth to of million for team. our effect, joining in to in be Isaac, for instrumental to compelling the outcomes significant our $XXX to has sustained a of seek of years driving that, of continuing results to revenue him to year XX% to likely XXX% we forward moment he story a XXXX, scenes, patients execution. has the been line strategic promote ago. brief delivering representing to to do, Chief a look the globally commercial couple for call is tremendous recognize years turn growth what been the of rest for was since he want has first able take followed partner us acknowledgment year, anticipate In our to With Anyone months. who over and Isaac creating improve me a I how in I come. business contributed half top of Behind to for but X the and of to million now from range the XXXX. we of I

Isaac? Following and on Isaac's the share Dan will broader results. details business comments, more financial

Isaac Zacharias

for on the the will had of board, words, comments add Doug. quarter. a our kind some the Doug's bit industry that quarter the We I peers despite a across color solid challenges mentioned. have you Thank to of

shortage us. to in COVID While much relates Thankfully, pretty new on to the it QX. much hospital under the issue control a impact the pretty as is with procedures, seems by be behind contrast challenge June,

of weeks still the of impacting it a shortages, versus we see procedures. of cases. a has procedures, staffing losing impact do While total few this not seeing shift delayed more are We

of highest challenges through level that been team sales work at in U.S. front Our have the them. execute the thrown continues to and all effectively

upgrades the launch year to MX+ In this that terms go our remains and improved the weigh product, later proposition new early above-the-knee they the replace next. MX+. well, phase are or value and continues to out performance offers of as it with clinical plan appreciating very MX+, with MX The of customers in benefits features the combination our the of MX+ and excellent

back work anymore. unmet once nice marketing done product, have a don't needs. and approvals validation satisfies customers that successful to of develop been product MX+ have our use want next-gen It's use and the We the to they teams MX R&D obtaining been our in a for customers really

continues we launch expectations. of that the As IVL outperform pass U.S., of the business to in coronary anniversary the

the reorders This to really IVL our use make a still continues continues CX reorder we while increasingly accounts, with are progress accounts. our also as high portion getting broader in we within I team of add accounts. deeper the to accounts. supporters During existing that the represented existing have to going second on am within of indicating physician they the XX% pleased target U.S. reflects our new that revenue And significant attention we existing rate are fact customers. working quarter, with penetrated focus the turning grow the of

team continue We the to half our the year. U.S. first add in sales to of

having territories. and device of easy-to-use the physicians use and simple staff efficiently specialists more to confers, As and the are particularly relatively This IVL. said physicians teach accounts One advantage quickly helps who new of of time with of are the in existing a is clinical techs that during hires shortages, new the earlier, proper system we field our the efforts about nurses and learn are able such to and during cases. this staffing to assist most the hospital

and half coronary During coronary purchased our U.S. of the only peripheral of XXXX, XX% both products, accounts purchased peripheral. XX% first purchased XX% and only

continues coronary to using and goal lot but Internationally, peripheral of IVL. add to will of both customers be Our have few a I all more our details. the hit a highlights, Doug

solid We international have growth business. in had our

pleased job from and our France. have their distributors. in an after growth especially direct U.K. transition our the are We of impressive done the with performance to teams contributing They

well a in take generally peripheral required. improved the The attention U.K. multiple As and greater particularly both the the complex but meetings, from direct, cell resulting example courses time less more as sales peer-to-peer prime go field than likely are we by we we are where is in to seeing performance see market selling. uplift peripheral is as since coronary that across from a team distributors and portfolio a

peripheral China well events the well. and the in for is and IVL JV initial gone cases and prepared have promotional of extremely launch Our coronary

will of vascular terms for In depending level country, reimbursement on peripheral are in already IPO procedures. of province. varies PCI in that reimbursement procedures the reimbursed these used namely be and China, The that procedures in

in component market. reimbursement that there In time, will country, to China, is is and also complex in the take variability which to process IVL What will to an place procedures we strong Again, seek it of reimbursement the will IVL Over to most a patient. current time. continue with across the reimbursement receive improve incremental JV that expect have uptake the the specific important do out-of-pocket Japan, will positive have initial that from comes used. As IVL-specific codes from payment is procedures the there's this is we we relatively for time. in as get very is IVL work with feedback and over to

really and well. to free at have reimbursement, per conducting We cases cases limited of we to financials. very Dan limited launch a XXXX. that, number a charge to to our of the call coronary centers. center IVL gone in initial being they look Japan With few are to turn have We with only able I to in been forward review the KOLs, will Prior

Dan Puckett

everyone. from in U.S. $XX.X in million quarter Isaac. for of increase XXXX, $XX.X the of revenue from International $XX.X peripheral of XXXX, our the to XXX% increased of second contributed in Shockwave million continued in products $XXX.X of quarter for quarter revenue, order in joint coronary was the revenue products prior stocking venture. products a both at XXXX. of quarter of Chinese in products included $XX.X and XXX% million from driven quarter was a the quarter the as a XXXX. represent a in the peripheral million JV launch. second sales of revenue $XX.X ended of XXXX. $X Medical's $XX.X increase of of force XXXX, the These increase expansion. XX% the was increase XXXX, the XXXX. in of products the ramp they growing in XX% for sales million second from utilization inventory in revenue increase $XX.X second sales revenue million U.S. to the accounted second second million Peripheral XXXX, quarter quarter quarter from $X.X for IVL XX% International up International coronary new in second $X.X XXXX. for second June XXX% for The the quarter from reflects China, million year accounts, of million million international revenue year revenue in revenue second a The demand a of $X.X by growth in second XXXX. over and in ago million XXXX. XXXX, U.S. details that XX% account for Coronary in the Generators from prior from quarter U.S. accounted international XX, stocking of a $X.X direct Because existing second some our million the $XX.X million customer is period from in the an Good of quarter initial continued increase of of the afternoon, the sales quarter. Thank second quarter XXXX revenue we'll quarter quarter. was million contribution $XX.X Europe. quarter. order, the the accounted adoption force geographic Generators you, International second and $XX including million, the for growth China increase to in revenue expansion this in in share revenue million China U.S. revenue in from second million expansion exclude quarter was $XXX.X was

growth year XXXX, ago period. of second Excluding represents which international the million from of in XX% was stocking the order, $XX.X total revenue quarter the

in $XX.X of the Excluding international second XX% stocking order, from revenue XXXX. was second products XXXX, quarter the the increase quarter a million of coronary from JV

the was million Excluding revenue second order, of stocking of from a the quarter quarter from JV products second international XXXX. XX% $X peripheral increase XXXX, the in

Looking revenue product at total by line.

a accounted XXX% of revenue the representing second compared XXXX, in of Our quarter increase. $XX.X XXXX to coronary quarter total of for the products $XX.X million in million second

quarter of increase. Our $XX.X XXXX $XX.X XXXX, in peripheral second in to million XX% the million quarter a products accounted of total second for revenue of the compared

was XXXX in quarter this in XXXX closing XXXX equivalents of back million of in quarter to second XXXX of initial was quarter of continued the net with a $X.X In Diluted quarter quarter of XXXX. million force Total to XXXX for mix the was compared XXX% of primarily in the by XXX% business. growth. the gross of of XXXX. second XXXX. expenses General of of quarter XXXX in support of of in quarter productivity income $XXX.X million was contributed in point, stocking $XX.X compared million $X.X second was million second of in million The and XX% order administrative to the was second sales in of excluding increase driven million The share quarter R&D turn for income million the investments. for $X.X improvements the quarter Total increase. Gross the million per primarily XXXX. the cash, profit $XX.X primarily second second for for second higher expenses compared second $X.XX. the in million compared loss well was $X.XX. compared product income to as million the in driven operating the for was as margin of XXXX. comments. $XXX XXXX, addition, to ended second second in of Net for was expansion. process for $XXX.X of the quarter to second quarter the expenses revenue to in compared million as were quarter Improvement increase quarter by were to XX% At efficiencies. increase by expenses of $XX.X the of quarter second XXXX. the I'd a XXXX XXXX Sales a second XX% by sales the XXXX, and for per quarter was XXXX the The $XX.X quarter quarter second second million XXXX increase and JV Basic XXXX. revenue, generators second second for driven to the $X increase $XX.X second XXXX. Gross of million of cash the marketing Doug of the from second of quarter $XX quarter for headcount to call were million, the growth share of quarter million and million We compared the the $XX.X quarter XXXX in were net like second short-term $XX.X the the net driven $XX.X primarily headcount in $XX.X margin

Doug Godshall

the in Thank Shockwave. today you joining for support for and us call for your continued all

open proud very that, for excited customers the investors. to come made questions. of are We things and progress call are to we've Shockwave, we'll our With our and the for the

Operator

comes Travis [Operator Instructions] America. of Our the first line of from Steed Bank of question

Travis Steed

quarter. It's an awesome

I'll think the quarter. I with start margins, this op XX.X%

margins on this for see if by why going out end curious that you that or call how going with operating know of be to think I don't OpEx what you're about do year. like spending peak of of there's would be like and to or forward anything Just the extra to where this kind great. business you the there some you can't want cash,

Doug Godshall

want you do to Dan, start?

Dan Puckett

start. I'll Sure.

term, long -- scale, for XXs be we're the quarter. So strong shooting the near to term going upper margin. the a lower business, R&D, in on to and In we've said operating definitely to we're at going had sales in invest continue We XXs, full marketing.

to looking of out we're not We're good leverage said, looking that we're the optimize. getting to With So grow. business.

performance. from it pleased take there. we're with we Maybe So can Doug, you the

Doug Godshall

-- No, just morning, We're Yes. this agree. R&D I we're discussing additional hires.

to of than We cash. we obviously. we'd in of find far, to in our year hopefully at more which But the and company by be -- this as have like per we at to us enables will we company, terms opportunities best sort be us the projects using to even launches working derisk we aggressively. instead that So series so outside want as don't how portfolio process parallel opportunities more product enable our we R&D X-plus continue the those that in launches and of build can traditionally, product look things

for reserves it's continue -- into want invest give cash and this to us obviously, the business and the we we're to flexibility how build helpful, juncture out at build to future. So up

Travis Steed

helpful. That's

line, the raise, top I just question million think quarter. be follow-up the $XX.X beat would on the guidance this

more second quarter beating a -- you're raising I guidance for the beat. think in all than by

out. the the in peripheral like business the confidence of you the from here quarter how what some guidance? versus think about about coronary the raise do confidence to think giving So like of And you out doesn't kind your quarter staffing of July, see June, to love May, the I an calling big how know of companies shipped April, other on as seem trends, issue kind end?

Doug Godshall

some flushed in May. Obviously, tag Yes. with this on And late largely -- think those this. team issues this through saw Isaac April We we contrast quarter past or early I'll quarter.

we is live that there's and the challenge of said of a think future. that's sort going new norm we for sort that staffing staffing As we to ago, several months it's baseline -- us foreseeable the with

you maybe And on sort worse you January, the Isaac, in had want the coronary across staffing just tight touch shortage. So it economy. of to staffing now COVID plus it's was peripheral. because

Isaac Zacharias

Sure.

what I what think with internationally we're feel the said, we -- good in on trends, coronary the seeing both just consistent about Doug and U.S.

second really kind the was quarter us strong track the that, the I you're older feel on think Europe quarter yes, and us of think for a I made right and on in good international organically businesses. Asia

On launch really features the is we're the by the product and well the customer. good The performance in the pleased is and internationally received really both and way going, MX+ are the peripheral side, benefits U.S. with

think the you uplift I money. of just in month have physicians continued piece, the the but And from this in benefit, procedure that tailwind nice that MX+ get product reimbursement not understand you got just U.S. behind the this of that's know, lose launch now We reimbursement we year. in building is understand as is I and going as above-the-knee not is quarter above-the-knee and you they're quarter. turns to kind we So think just -- And it's X our tailwind X procedure then every that hospitals on with feel team strength where kind the something internationally. the coronary, as not last Travis, good Shockwave

Travis Steed

And again quarter. a Thanks that. on great congrats for

Operator

of line Biegelsen question from the Wells next Our comes of Larry Fargo.

Larry Biegelsen

strong another Dan. here and quarter Doug, on Congratulations Travis'. Isaac echo I'll

thoughts from to and what staying XXXX think QX, Doug, a So to guidance, hear QX just could XXXX is from you I'm high-level drivers, in on of little assuming you color maybe kind just have hear interested China? start the for Japan but China of out, contribution away cadence love and growth I'd bit on year? some you're to And what next

Doug Godshall

Yes.

of So China wander we to detail. to let more sort I'll little a include Isaac bit --

are as lucky just MHLW cycle. are it and we we reimbursement Japan sure get December, really we is -- if in anticipating We busy. September weren't in we get clarified, the

lucky, So is ready December. be in get that's come a the be will that scale December will momentum really team a reimbursement be full-on and so in we because But in it didn't we're way, fully building both Japan launch. staffed for fine and -- they'll XXXX so that it

We to rollout be thing their cases will a a expect we've of methodical Everyone in we're launch. in Japan, got have the engagement -- nice that lot limited is it allowed will KOL the now. do the although done

You restricted this cases on charge phase. so how have do phase, limited can free launch physician a during many every of

be with or we'll our on Japan. our launching So be start China well launch time we in the way by JV will the

in key 'XX. transition be Japan fully MX a to through our be from driver growth We'll MX+. So will

got everybody very, well on to of using and then coronary we appropriate build as site, team we site at the the fourth got sort if accounts be look of it is growth rate think -- reimbursement. one of part our above-the-knee account we at do multiyear at envision really IVL from penetration. really making you that increase a XXXX the coronary utilization tailwind And how cylinders. everybody using a that China, that's as we'll on if users And of their got now that a focus driver and driver as that those key a to as are more well sales a you've the And routine accounts. thirdly, we account both number expand acquisition is we IVL on transition but very firing you've rate U.S. is you practice described, broad small as So so where the we patients. Isaac will of what uplift in are a It's -- important that -- at is momentum MX+, their as and of through bus an that their user which think all will of on spectrum clinical XX%, above sort being

the QX And color it again coronary 'XX part once growth QX, real have let I'll of as has Larry's have maybe sort of 'XX. XXXX been so in be you question. even in that's opportunity driver on add and And to Isaac, a the we

Isaac Zacharias

internationally think the on so procedure Larry, the growth I lowest just are. on we've year's layering involved kind procedures of on building And well seasonal, QX what QX, quarter hit for I multifaceted it's elements of it and multiple Doug Sure. fronts. On it the continuing the drivers importantly, and QX. guidance, year think is what of this the started we're in. in

QX generally we'll versus we think and QX So step up strong then a QX, see industry. is a very quarter the for

again between and QX step-up to QX. expect see so we a And

Larry Biegelsen

helpful. That's

one Just follow-up.

evaluating to -- you through remember can't lens I the what said you effect, but looking external used. something opportunities, you I external think at haven't something attractive, are looking But the you seen you about talked that's you're opportunities. kind of You words when

Doug Godshall

Yes, sure.

that externally any than as we to internal and the I spent of spend So that the right -- we're IVL, more are has have some opportunities and think better very than be very $X external probably pushing iterative. about we now, exploratory different -- XX the some challenges opportunities one dollar internal we resourcing projects

blend patient internal it of that and customer will line, make year up with in our bring who market to somebody us compete on to with going into and interesting important projects enhance very improve refresh now performance a fold. have lot populations upgrade performance like satisfaction a the a we MX+ harder whatever new of So the show might for are the product from incremental opportunities kind that

opportunities our of all they of So years. acquisitions, have for in our they that could most multiple Isaac when did That external more said, external internal some and the ones certainty and internal on prior same both -- of that M&A don't we we lives look spend cost at ones. always I the our those acquisitions, -- money and

it. with familiar reasonably we're So

a opportunities towards external we've of very that situation we're us about away don't -- accomplish at of And there's and we terms with be are work. we open-minded, hopefully what is so like to we of feel times -- But these. it M&A current from creating our We be because of deals We nice distraction in the market stampeding a M&A need to feel another to strength to IVL. selective what's would portfolio, steer pressure. recognize we're as obviously, of able new do opportunity, no enables rare really is our that but we find spaces lot look crowded don't commoditization. not really a also hard the been And like and one it here a our

So we got sure do has want that success. high make likelihood to we something if of really a

careful know being so that. color anything distract thoughtful way the And of from about And that Isaac, in on mission any I hand. if want doing don't externally we're would and you to

Isaac Zacharias

I Doug, said No, I No think you exactly would what Right. color. say.

Operator

from Our of the Maeder next line Adam Sandler. comes Piper question of

Adam Maeder

Congrats on promotion, couple housekeeping with another just well congrats, deserved. really very nice a on Isaac, Maybe questions. to of start quarter, the and

around for able is provide models just pricing. to of kind our curious you're pricing in first dynamics around QX. And The if any color

for premium a carries U.S. MX+ think ATK. I

for technology. Europe is So I around latest in us then just question launch then any that to remind one U.S. you're Can update shortly? timelines the What's the remind us product. And is that on follow-up. And And had the if color there? you then there? second CX+ or expected

Doug Godshall

Yes.

-- a at products this limit how after in And in are -- selling still MX+ premium price by is expensive. thus encouraging the anticipate to think which probably of and a next approval awaiting the are the Europeans MX. MX+ trying for to time internationally. up, really MDR numbingly that. MX where the full correct. certainly to both FDA is process sooner a I price of our we'll is limited year, far, all you're CX+ launch because Europe. is We showing and U.S. than start to The too, The conversion mind efficient prove stability, So MDR

get make starting And keep to And sure limited no time, we to didn't a want we goes We all make that So right, process. we we're close. into months from FDA we're now. want miss changes an we are couple be the we then and well, through this we will before working assuming -- start anything thinking we'll that of then U.S. there's a if launch

that we're we the PMA to sure FDA because to so product the commit want timeline And as before is a we make supplement. undefined through -- yet

Adam Maeder

That's the very ask And appreciate to that. I Doug. wanted then for helpful, follow-up, about U.S. I peripheral.

impactful by And up about more that I be there think guys headwind be digested put additional would takes How the really coronary? then topic customers? was Would terms flesh a just that of quarters couple saw? maybe much to of is kind heard change, a any which and you nice of a quarter-over-quarter. you obviously, much XX% little I of that bit in was hear you I guys MX+, that of talk on the out is Can to great. number. more business know contrast how Just peripheral to side, but what the fully color just some staffing love sequentially on reimbursement that versus

Doug Godshall

Sure.

take this to want one, You Isaac?

Isaac Zacharias

very to it. the -- growing the doing continue the pleased the work peripheral in The business U.S. Sure. team we're and is with

we have the On a quarter, volume we and both sequentially. then contribution our increasing. unit the still with increase ASP grow below-the-knee product, the of which second saw to MX+, MX, And continues

that more us. to as moving the have around And growth using -- we stability, feels think table, So we go what the our been R&D that's kind forward, keep a business MX who procedures. the like for how overall as economics, I that to durability having of a some story they've the long-term I it's it intact help and coupled customers and marketing that, is of through with think and to going partner in do the -- then just feel be going MX+ business teams. improving brings helping peripheral requests really help of satisfy kind And to had

And it's of definitely strong a part so portfolio. the

Adam Maeder

I on if coronary just And helpful. could peripheral, up follow versus I quick mean, That's just contrast. any...

Isaac Zacharias

month, up as of tick -- we in as you sequentially, in -- June, on of again we kind generally went flattening with kind which think saw saw was strong March. good I of April par U.S. we very Yes, sequentially saw April, May, expected. kind the is and relative usually with revenue a to then sequentially a

parse out, and guess, So a this procedures it's to of I guess were but so I kind hard mean -- it's more. peripheral impacted

the think, procedures by and impacted had team But surety You think that June. can the generally, of for the to less. early kind at their coronary curves, GE I was behind ones supply I kind of had were look our hospitals contrast using that

a a less probably that it that but cost peripheral really something And the all. was the bit nothing punched little hole coronary, seems revenue, like quarter but in maybe than of quarter in little so at peripheral, a transient

Operator

the Canaccord Genuity. from William comes question of line next Plovanic Our of

William Plovanic

And kind but us QX not governors' QX, about further. QX we So should follow-up is on and have up a questions. of you're then color that question I the view much I have I half guide it be in of QX basically, a then QX the Is unchanged. already guidance, where directional. conservatism? first would the that something asked, on couple today. we different of Is Isaac think would really year are a that is the know little seeing And this up thinking Or it? gave be we from of for that. QX, then -- and just back just And people But than already little should there as terms to consensus

Isaac Zacharias

want me Yes, you to, Doug.

Doug Godshall

but I'm yes. same not reading it way,

Isaac Zacharias

-- you but consensus, first with now, actuals, was where new I just But I above the follow in beat. don't the but the contemplates right have moved quarter your guidance me front of model We Bill. offline. definitely half had we I not consensus we what the half. can up saying, plus look you're including at that second in second think

expect expect relative be be consensus, QX I QX. consensus, think expect for above the be we consensus, above be -- QX and to QX and to to to to above QX above QX we and both we

that we're in So second the in through the will and that's half, first we're there's continue second why the tailwind from feeling the half. like half half blowing -- the was definitely above second where consensus

William Plovanic

Okay. quarter second, China fourth we that quarter? expect any the should from And or then third stocking in

Isaac Zacharias

No, that's done.

event JV and sales June push their can and brought coronary this the feel products in with quarter, good is about inventory then peripheral a they the enough they're second more the of carrying that channel. that So and into that in

did it's get wanted revenue be as that a XX% China the threshold So revenue distributors any large the second organic will we we call out, quarter half for -- clear think revenue. all It third quarter, that to in be define kind typically because quite to stocking from we we so on -- the relatively won't compared small comp just large won't other material, but it business, second of we order do. stocking any be

William Plovanic

the difference we're, And in on our went just -- launch. into usage us, out on with X.X or expectations. we And help coronary, models can like original thoughts severe on what, Do potential you moderate any Okay. or then all penetrate have the But and you U.S. updated the what decreasing to today? years is potential usage this expectations have going experience you and look increasing you Yes, point. this than think given any TAM the what at all basically, learned? deeper

Doug Godshall

sort impossible continues what and when almost need quite -- work know range job really it to of pleasant certain day balloon the or they And is been certainly we of and successfully uptake Shockwave north or back of than they on a large the to accounts what has I an when smaller are case, of our bring from and from it been done. using uptake of vast mean, a We get either didn't cases X% has that for they're something see is of large, forth atherectomy utilization be. this, finish rates patient fairly to can a -- customers moderate, whether the in the sort our doesn't that's of majority -- real less and patient some and of then use am Isaac. us us surprise else severe. speed go and a XX%. tool the substantial are X I It's docs using us it

the a to utilization in that penetration. terms of there's so to almost what even rate anywhere in what get every every count and modeled matters huge we originally certainly, upside And account, we close

ago. thing to used lot used more to is certain. patients And of view one meaning so we're we're what -- tells altered like meaningfully to decade TAM decades not they and we I'd It's know, talk a treat to the don't I for ago, a us -- opportunity. our really calcified hard is Everybody and than the potential we've potential they X say think

on prevalence is which And timely launch. the for so is the calcium coronary certainly upswing,

Isaac Zacharias

bit little Yes. more And that. a on maybe color just

where know, specialists. to clinical you we sales model as have, territory team, our managers of sales We all a the Bill, have from

have We coronary focused on them -- and pushed peripheral. all

was side focus year, on last and There's heavy So the this of of focus with MX+ the coronary business year. heavy it a LX peripheral a more side on the the reasonably business.

I of faster, grow probably to And I said sales targeted force, we that, think we it's -- stool would important and balance if the legs us all for could the sales the as something forward, it intention in each so the new what make with appropriately, but and see the continued go force. go it's only X, we balanced, the can work balanced keep them and to products X, from bring kind over increased really, the relatively is growth line product X grow things our it penetration see faster, and a next years. these category of on

William Plovanic

Okay. if And could then this I lastly, in. squeeze

for Just editorial meeting. for codes agenda the CPT coronary AMA, IVL proposing September the the

Just that add-on then have codes reimbursement? payment any or would today. you think coronary the is granted thoughts if granted, higher And our what's specific lower what under

Doug Godshall

thanks, Bill. And Yes.

CPT the the so is confidential. panel as process knows, -- everyone -- As

the it about pertains physician on procedures agenda. the other going CPT So whatever we're and we hospital The than know, payment. for code is talk to only -- not to

So certainly, I there would code. CPT we be thrilled a if Level were

mean extra get do bit to think might atherectomy. do now, to paid a $XX right little IVL I get procedure. extra paid like they outpatient I So physicians an something

to So will going certainly, drive not it's a won't it number or big that that's not number And come adoption a IVL. is of through.

confident other that throughout unrelated certainly, will APC the it's And than data device APC of terms whether sunsets the pass-through the or a a side code transitional good and to of period of matter IVL IVL based do APC Level time, pass-through fall it's transitional we be more of land collecting And in XXXX. to payment. will where pass-through. we and the once Shockwave, levels for unrelated that's the I CPT level on will cost cost in transitional use, level the once and into So have the on lot don't CMS current a the on we're that what will physician

Operator

Furlong of line Our Morgan comes from the question Cecilia of next Stanley.

Cecilia Furlong

on Great. you in just the BTK the quarter. you you're thinking you've utilization relative in what Congrats out, as how with on seen once another region? get specifically fully really early I very of to look nature complementary launched And SX. days, And MX+, the ask MX+? just kind really versus to strong wanted SX, peripheral growth overall about

Doug Godshall

Yes.

a speed very seeing below attractive lesions are the longer SX, of knee. higher below So than public MX+ any we the pulsing than utilization the device but proximal has. profile slightly deals, it's the It's treatment of the for SX and the of because segment

And below-the-knee. so XX that you the would XX get tracking we're smaller sizes, and the

below-the-knee, device, assuming being certainty with being used we cases where of the are and all we're And know don't it's that although as counting we're done. so below-the-knee a

many so have now. on cases We going

was MX+, to X through team to strength continued a our we last both are as SX off above-the-knee term, introduction the coronaries of for the by smaller year MX+ terms with durable totally balancing continued below-the-knee SX of products MX and or selling all a SX portfolio is multiple In segment, and further how worked and And product, I and commission was of paid SX geography. of keep of count that the products envision because the and segments. each, SX, below-the-knee to the each and we portfolio the above-the-knee, think SX, and engaged of plan. in through swept that attended has the commission the now Isaac facilitates get reinforce into of of way really we stayed now continue products it's presence which plan a below-the-knee been sort coronary balance long below-the-knee, compensation, inclusive just to the folks ensure portfolio cases below-the-knee, a really coronary It's impressively products above-the-knee And of compensated. didn't everyone think CX through products I mfp

Cecilia Furlong

how China could follow on well, you up just coronary if rate peripheral, if Great. just as I speak about you could and as you the that relative of view either think versus just from to in the a what And of Chinese versus place antennas other. the reimbursement of landscape, could we've either or U.S., dynamics seen standpoint, other the push Europe in really ahead rollout

Doug Godshall

words, Isaac, I'll for thanks touch and let the Pleasure, you on kind China.

Isaac Zacharias

I we're to then Sure. coronary And seeing a country, Yes, a think, depending around Europe, that or peripheral, I look I the XX% kind and coronary XX% and wobbles XX% overall of got that's on bit. similar between split think unit China little peripheral. to you've went similar think, what XX% look from -- -- in and

So the by it's adoption the quarter, XX we a but in from -- excuse on internationally and the lot kind base unit of to probably XX guesstimate of of me, mix now from end different next see look I our the coronary think know certainly certainly a what -- China too But above-the-knee peripheral the XX the more the we'll is year get it's products right early XX. like. to by that not versus

Operator

Research. from comes of question next Wolfe Our Michael Polark

Michael Polark

making been the sales coronary case need on of users love to the driving there just so focus have accounts. account? element been to your and touching but those there's that more want adoption TLC patient where so with handful transition X, X that I all in on or sure kind is. it is a to you of some there that understand force the curious, different picked on an major this deeper the far, better are the also complicated Or you're just where going key at what I'd can I'm cases focused Is types, there. U.S. the focus come gotten need leaders profiles far? low-hanging to here and fruit You've Again, So existing double-click others on hook on there's different

anecdote around to or year the little the a needle and next effort on this going so? what's more move over Just color

Doug Godshall

this center, looking everywhere, are we and a mentioned we're have Yes. in understand Yes. things have where and we sort at significant user of to how the his that some we're drilling almost Isaac it a a is -- but where upside which where we're and at, is having is expand team on which not and of I really unitary going opportunity. making do working better to driver do continue sure to

work. walk maybe doing are how guys through So Isaac, you this

Isaac Zacharias

Yes, sure.

it's put put March. I is after the for had type for NTAP new say in And in then this in So TPT the that I of think payments early we've reason And work. that. and the anniversaried hospital, the launch

MX+ decide effort we to right to to of nurses those effort I teaching why it's with the looking focus they field do that are where accounts within barrier that our start but our and on going and going at the physician it's that launching there can and would think the for that and across that very Shockwave, that it's the and utilization. broader then particularly they the in So but when well, understand it, work teams, how where account differences and mixture things that instance. clinical I a to that in requires focus tech base so all and now, be behavioral seeing also including broader time think calls what at use not that occur physician and some to specialists have terms the contrast to and of for going And when in we're accounts, us doing work

it. So that's of part

as, you're time. NTAP especially things, becomes a you loosen explain it going see more little a that don't them, up to think bit and little accounts the understood, start are to little I while takes reimbursement -- a TPT those and with more again, over when

think and there. of of on the There's reimbursement talked But case use and our the on which work what lesions see did does works. as are from, or hit it be head the you we cases going investigators it and be about. looks to And instance, clinical data what compare and that's sort on use from where So OCT to for get to it what team what the from have and obvious those the is most gestalt what X the -- continuing publishing how going part X and CAT a else can to we nail educate like. situation standpoint, lesions? that And CAT I then the

cases some think maybe I in well we're it of can is didn't used in reinforce going working we would physician message. imaging so it's there hasn't out think that and -- it the IVL intravascular then very go that to a work imaging you get well see these where cases this, tailwind on and -- can and

Doug Godshall

Yes.

in work -- didn't out lesions. was our worked is there perception, eccentric initial Europe, point, coming be concentric misconception lesions case short a to only this think IVL that turned in I of there launch which out in

year, calcium. and is biased -- are you of if calcium towards is our we've OCT the every if last And long our balloon data kind concentric. look the you leisure calcium, -- of it's almost one well to of of imaging much the we've education but too enhanced OCT, -- we're where I main work we as we ever type nice don't one So we that sort calcium side outcomes there's that at a our but more across been drive tech, understanding since eccentric almost little have a artery. data identical as really have, to mean got morphology probably points the astonishingly that versus

ourselves of short, we'll just from of to or broad the et don't calcified is to I maybe lesion ease don't that cetera, just mean, us you this one for an stent, consistency, most into, use I'm array important so use -- the is a use subsets. build IVL understanding the long, And -- one case, safety, of specific to us expanded under our that where getting for I of concentric use sort being going of lesion think, undertakings have devices us continue use pigeonholed eccentric, save where just cases, which concentric, well, there's preventing beauty going across out for use is forward

Isaac Zacharias

other saying. to do. that. some we support there will that because the I to think take want And That just one data the point on to sure make we're what time is reason are

it's a importantly, have cases experience. company And peer-to-peer with physicians More in conjunction that they then aspect the that saying those happy but physicians data to of that consistent too. it's aspect their rep and takes with because that to are who the done work doing, believe something, respect saying having anecdotal it. be peer-to-peer That be we're the right doing time, where then

Michael Polark

Just the The XXX,XXX, product worked just not here sitting least It's this, little about and a follow-up of potentially to think already a the midterm couple I'll about XXX, right the up X next, XX,XXX on at of $XX,XXX] type the this at U.S. years? run the if asked hundred are those in of year over more [$XX,XXX, kind in not to be running you here can has rate. coronary a a procedures I Doug, if been still quarter XXX,XXX, XXX,XXX precise, over a year. say, TAM I have procedures mean still available IVL. U.S. that be numbers question.

Doug Godshall

think if selling X currency years we to to -- still have I continue then not. the laurels rest now, our from to we and on are probably Yes,

least to some We just come have be -- features, getting yes, calcium at do think new it, think versions. say to refresh of with it work modification. like make I XX% ought would it's of we most their with up physicians MX+ I sort not And on cases better, add

percent. you really regularity But gives they product it they'll maybe good. Current they're I better often. start more that make so If it, think product XXX,XXX with to -- got XX%, cases. strive to more continue about our think as drifting into use that it's we've eager is XX-plus to like So to about

I think even make better. it can we

Operator

wonderful ladies have conclude you program. Thank today's Well, and and that your for a participation, does day. gentlemen,

Doug Godshall

your Thanks, for everybody, time.

Shockwave Medical (SWAV) 9 Aug 222022 Q2 Earnings call transcript