Earnings call transcript Q2 2023

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Operator

Good afternoon and welcome to Shockwave's Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode.

We will be facilitating a question-and-answer session towards the end of today's call.

As a reminder, this call is being recorded for replay purposes.

I would now like to turn the call over to your host, Debbie Kaster, Vice President of Investor Relations at Shockwave for a few introductory comments.

Debbie Kaster

participating call. for all you in today's Thank

Officer. Joining President Zacharias, and from Shockwave Chief President Doug Godshall, Medical are Financial Puckett, Chief Dan Chief Officer; me Commercial today and and Executive Officer; Isaac

June Earlier today, Shockwave website. is A financial results release of press on XXth, quarter the for copy available XXXX. the released ended Shockwave's

laws, includes Securities that which of of statements during make we I begin, will meaning to pursuant would Before made Act the the call are like XXXX. forward-looking that the management Federal provisions within to Securities Litigation remind you Harbor of statements this Safe Reform Private

and Any statements hiring trends, fact statements, historical All business contained of forward-looking this sales in including without than relating operating statements forward-looking statements statements. other and are limitation, call our to proposals, current revenue our assumptions. technologies and its future development and Neovasc integration our and into the financial expectations, upon approvals estimates of based product and prospects, and various business are reimbursement

risks the events by to COVID-XX statements. from statements cause forward-looking or pandemic results and the These anticipated or actual those uncertainties, that as macroeconomic material impact conditions materially global such including these involve could events and implied of differ

undue these reliance not statements. Accordingly, should you place on

other our refer SEC and the available of and a and filed on the with annual XX-K with reports list our file periodically of For description report on to Factors our and uncertainties business, associated section risks the Risk with please the on in SEC. Form EDGAR

information today otherwise. of information, is as forward-looking or XXXX. as This the whether or any or revise obligation, events Xth, disclaims statements times call only live Shockwave contains accurate update any new of financial or required broadcast sensitive conference by to August except and law intention because projections future

And with the turn will over call that, Doug. to I

Doug Godshall

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

both in in the to internationally US franchises. solid the growth and peripheral continued experience and across businesses board coronary Our

revenues quarter of a $XXX.X XX% XXXX. the represented increase million from of Second second quarter

and both are with our newly the product with In Coronary by pleased the and our of and penetration the continued products products, US We internationally. designs work capabilities the lease a CX+ design of encouraged Peripheral are LX testament customers released of to acceptance product in traction these needs we're two seeing particularly products enhanced cases, resonated together customer our needs. with efficiently and the that the have to new to understand and are address organization those successfully launch ability

we up a were The we job and stellar a the quickly integration quarter, team they Reducer for profile integrating on projects at into past they financing and and team. structure together This closed Neovasc got acquisition Neovasc and made to top. to of product But of work heavy and Shockwave. the process our lean complex approved resource did our for our was set first a workload creative

generation, particularly last the few months, execution, study. into on of clinical to the the future program, infuse the and COSIRA-II we're value Reducer additional data Over which will much performance begun confident Reducer help up-regulate of we hinges have resources

We have we as the executed to become are operations to team, to overhauled existing have resources and accustomed should tightly study to the clinical Shockwave. adding effort a lead existing which to

be a critical will Our principal having of is focus more component since right more shots goal now on to activate sites, enrollment.

centers. testing the conventional exercise amenable change The is The is effectiveness to that trial to obstructive endpoint and for to to sham-controlled, evaluate time. system will and include in a primary angina randomized not COSIRA-II Reducer As double-blind is coronary approximately revascularization. patients tolerance due in refractory with safety a up study disease XXX reminder, IDE patients XX

subject, a US approval evidenced remarkable at symposium the our EuroPCR regulatory Reducer by we program, with Now the the rather The product training we for get clinical the XXXX. around as that to projecting arms was standing-room-only moment. this we have multiple are saw and and Sticking energy begun sessions. well-attended around in very

global about to well-positioned address increases a to business Reducer our available. acquisition meaningful further enthusiastic even this The unmet potential strong data confidence, and the in more and is contributor COSIRA-II become to a interest need great Reducer is significant is once has our

And the for at our Shockwave our a international referred same initial We anniversary we celebrated our time, the was at had five-year at board. Congress. of it IVL to fantastic EuroPCR commercial of PCR conference coronary as launches us of customers the across XXXX. CX+. official the Many launch

particularly follow are real-world we forward competition TCT several focus will on have eccentric for PCR October at years, TopShock IVL conferences we consistently with included with The including more we events Eli from coronary efficacy registries transitioned a San being is includes just together Spain where presentations to symposia, that replica Shockwave. becoming several and almost and X,XXX have which the our respectively and relative that IVL environments in nodular in one care. of IVL in unknown the including strongly a strong and outcomes the and real-world events, and from safety of calcium. standard looking five Francisco, in achieved highlighted reinforced and patients The in best many evidence to remarkable It practices IVL IVL. Lilly data of presented And favorite from France

launch from are global XXX at TCT our we had to forward Innovation customers XXrd. Investor on US Day the our and looking We this And year. submissions of course, CX+ October to roughly of

pleased the which All population that kind study Our to up in Empower first we IVL of enrollment announce In a always in IVL research. groundbreaking in almost XXXX. our the the of performance continues underrepresented study assessing quieter its is work clinical after Female ramp is first cardiovascular were a quarter, last to

healthy the will BTK patient by of we and enrolled pace, Our is a XXXX. the anticipate study at be enrolling middle last

Overall, XX% in Innovation investment second IVL a than have it half will roughly period year our very in was at year. the this last clinical of pipeline in discuss of Day. We our full we'll the which the same higher studies future, at studies other near be

CMS very by NTAP temporary such how structure reimbursement great more encouraged we Regarding those like it continue IVL to permanent the and programs reimbursement, progress -- US see transitioning innovation as we programs as conclude. to coronary are from those make

collected the procedures, of the under may NTAP for order IVL coronary In coronary September recall, the IVL coronary you creating duration most proposed appropriate XXth the with Consistent years -- their fiscal being CMS to NTAP and As MS-DRGs relevant on structure of program determine expire end year. IVL best IVL pay coronary three NTAP. how structure set is is new is CMS out at long-term for two the of analyze data on proposed and program the April, forward. the in to going coming to for creating CMS'

watershed in has CMS extremely field IVL. suffering of coronary DRGs think the created new DRGs interventional the the final a calcified years. see This is from complex over the are is cardiology issued for for pleased of XX good artery field PCI first in because We inpatient this this and last three disease. rule new of the We for patients is coronary to time week, that confirmed the event creation

corner or with majority capture implantation. of stent DRGs of IVL IVL, new a cases it's the whether The stent. involve without use The coronary vast

to to comorbidities major are focus DRGs I'd $XX,XXX complications if those present. pay $XX,XXX which So like or on or average will on

will $XX,XXX PCI $XX,XXX other without the comparison, DRGs involving stent implantation pay and respectively. IVL For

and NTAP summary, was $X,XXX We in structure in enable economic October hospitals believe for program. paid physicians more effective approximately procedures best payments end on So, Xst, DRG IVL make the than non-IVL by will coronary decisions than PCI XXXX, new to will for be alleviate the their $X,XXX patients. clinical this help more and pressures

about . CMS of XXth, not they to any has On the through front, highest well early how outpatient will APC. the continue in to And pass-through the plan hospital permanent. from We our prospects program signs landing very transitional remain of transition given temporary June optimistic XXXX

As in what fees we remuneration IVL remain To-date, the in or our with the any side inpatient CMS for for follows from therapies. the RVUs process physicians, NTAP, the been confident seeing you've additional not conclusion we're professional and via the of coronary have seen of hospital available data.

, this CPT Xst, I will We go effect. into to change XXXX Category new as will a report are code that but excited add-on of January

-- not receive proposed up will We're with remuneration November. will issued in calendar final know XXXX pleased coronary year the month, physicians amount until that performed. physicians IVL released XXXX schedule XXXX in draft starting which We the schedule is to has of additional CMS' for when fee physician XX% last

operations. to now Turning

and to We to investments make support sustain our continue significant growth.

site starts Clara a from are Rica, have of time Costa at in our many day high accelerating where ensure a leadership for over in employees, strong to investment We XX whom significant Santa we new and in one. place the training that are spending hired have level operating team

we capacity our pipeline, even on will we Based in and our Clara be Rica Costa combined Santa believe facilities and will momentum provide. need able the to than global future more

have we exercised Costa triple will cleanroom our space phase initially a than earlier Rica by option second there nearly an So in for planned, which we XXXX.

our using and fruition location innovation as production hoped. strategy had as of Our as Costa primary our Clara centers Rica to Santa we coming

develop for pilot of of most Rica and in to Santa the in optimize them to wave make them therapies processes to next Clara, new designs room transfer Our and order intention then is Costa innovations. to

out step products seven would is up we're considerable again and once us anticipating having of space. which year, Next production, pilot leave and a

So of towards also on middle fourth we exercised we the building year. occupy have an Santa next a which in option will Clara,

ramping high-quality We bear facility and margin future for to the wherewithal come. in commercial a fortunate stimulus promising footprint, very continue layer in growth clinical to and These expanding are invest years should financial and investments Reducer. have forward expand activities, bandwidth production a that fruit and we our R&D

XXXX. includes in the $XXX the top-line million than XX% XXXX. to representing number million for $XXX to year for We now growth anticipate of XX% year XXXX million revenue Reducer This of sales range from full full the $X of less of

call the that on will the to turn more With Issac? detail front. Isaac to over commercial I provide

Isaac Zacharias

pleased efforts with you, in the and results team's QX. Thank I Doug. am

the of grew US driven newly-launched business and catheters by Catheter. from strength LX all compared and prior increased Our from XX% sequentially peripheral year, sizes XX% across our usage QX to

device LX the to LX generated a in We femoral lot conferences, energy of which enthusiasm. Iliacs the and arteries. and the multiple cases the love for Customers power able it be the profile were pleased ideal quarter, common to live at large as including see treatment showcase and in of several

LX profile. results larger power to Our sizes due provides customers and angiographic believe improved

than quarter, on that plan the more and and two-thirds majority of the in LX seeing in also X approximately millimeter solid that the the XX reorder are were X, with IVL millimeter of cases We're We launched of encouraged we and likely sales our XX launched During the peripheral LX These vast peripheral accounts LX half are patterns. would our MX+. remaining cases get not been QX. sizes. customers have we to

as QX in driven US coronary prior sequentially compared quarters. XX% Nearly primarily that our from accounts, came to continue growth. our increased X% open revenue QX revenue were see accounts in same-store by year, healthy of in all existing the we sales penetration and from grew to prior

While and slowed, volume are new solid account has high account per accounts. are in we increasing units growth growth seeing

XXX territory. We over by we'll about to on clinical grow specialists to year are have and this end plan per two the the of sales force US territories

January. growing of any in inpatient CX+ in coupled the additional the the looking of for are forward October, sales With physician tailwind reimbursement in starting with fee launch team, IVL to we improved coronary starting the QX

from that to and QX effect a the support year-ago reimbursement ago. demand. the a international half the of headline year over revenue X side, Germany took up quarter and to in was higher in the add during of year than drove XX% XX% quarter The more On increased that in revenue record from XXXX the where was to quarter. XX posted from expanded the coronary January we it Germany expect doubling salespeople We territories was of IVL second increased of last

In team momentum current than in The is Japan, the revenue from the posted the doubled more increasing QX great and in QX. QX QX. results in

the our exceeding expectations by launched are penetration response in the encouraged for physician are accounts. We and

to in revenue global years. We a expect will significant coming that contributor our Japan become the

payoff We headcount and marketing were outside It nearly KOL for our the to non-US work pleased of our peripheral have peripheral focus programs team international Europe. XX% efforts is adding expanded of to US see sales see our and in hard bolster We've the business. been network our to account and peripheral peripheral in nice sales the QX. and

second We also during sales from Spain in and transitioned distributor-to-direct Canada, Portugal quarter. the

to drive seen, teams Our exclusively increase focus penetration can their distributors we were good But direct due in to those partners. ability as have products. on countries typically our Shockwave

more these penetration expense, that in the operating investment in changes disruptions seen quickly caused higher small the offsetting we an gross have margin, While generates and in some costs. revenue increase increased than

in to transition sales of a QX will year. We in Italy this direct model

On product and practice rationalize focus treating intent resources the Reducer network the on side, angina that can to the we centers made afford the and good countries progress distribution build refractory to underserved a solid patients. both with

to excellent to and establish countries revenue. partnering of outcomes are the be we contribution will ever building in revenue said, we continue to this generate and do those evidence That learn than year, more care point with a a build While that how of can hurry relatively reduce sustained are small methodically and so excellence to not for patients. optimistic prefer in We at we will business. clinical this pathways achieve patient centers those

the the With that, turn will to to Dan I review financials. call

Dan Puckett

Isaac. June XX, quarter million quarter in revenue was million, of afternoon, from Good XXXX. XX% Medical's everyone. the ended $XXX.X increase you, Thank the Shockwave XXXX a second for $XXX.X second

contributed was XXXX, an million the million in second revenue second Coronary of in in of US XX% the from of products in to million XXXX. $XX quarter of second XXXX, from second revenue increase XX% million the US increase quarter XXXX. an quarter $XXX.X of the $XX.X $XXX.X of quarter

quarter of peripheral the the XX% from the second of revenue new increased million XXXX. $XX.X during in sales of generated in quarter second existing US in million our revenues US reflects force quarter of an The $X.X XXXX. adoption utilization IVL accounts, revenues of products increase US second from growth quarter account of million the was $XX.X and continued in XXXX, expansion.

increase International to of was increase in $XX.X quarter quarter million XXXX. $X.X $XX.X second in of in from increase the million from XXXX, the of an a second revenue quarter million revenue in million the XXXX. from products peripheral International of from of second million $XX.X second was of quarter international million Coronary $XX.X revenue XX% second the XXXX, quarter representing an products in the XXXX. of XX% $X.X second our in of quarter XXXX, the contributed XX%

and million second that our through Neovasc $X.X contributed to revenue product, from the international in of acquired we which XXXX. $X.X to this in Generators second year the revenue period Reducer million geographic April China our reflects international in The closed expansion, Revenue contributed over quarter teams international the quarter acquisition in Europe increased sales of in Japan. selling the XXXX. revenue coronary prior The increase of year the direct strength including continued and Germany. of productivity in

Looking lines. at product

shockwave accounted MX, increase. $XX.X Shockwave Shockwave compared of SX, XXXX quarter products, the second revenue Shockwave million million in peripheral XXXX, and in the of second quarter Our $XX.X MX+, for LX total to XX% a of

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

of second the contributed generators from XXXX. million in revenue The total Revenue the in $X.X in quarter XXXX. of for of quarter $X.X second Reducer our accounted million revenue product of sales

gross margin was XX.X% second of the second of quarter $XX.X a the XXXX for $XXX from XXXX. were above second million quarter to which second the Total million profit for second of the of for XXXX. XXXX, operating increase second million Gross XX.X% $XXX.X $XXX.X XX% Gross for the quarter XXXX. XXXX in the million, expenses the slightly quarter quarter margin was compared of quarter in was of

was XXXX. $XX.X $XX.X by sales marketing compared of and force in The Sales second expansion. million driven second quarter to the XXXX of for expenses the were primarily increase quarter million

legal $XX.X quarter expenses business Neovasc. of to was acquisition second driven for quarter million the primarily $XX.X XXXX. to General expansion of with and acquisition-related and million the higher higher of in by the driven support were facility growth, second The of expenses in was million related the the XXXX second the clinical $XX.X $XX.X expenses increase the to to primarily of compared of increase other growth R&D compared XXXX The million headcount for quarter second R&D. by headcount in and expenses quarter XXXX. were associated support administrative

expect QX expense million Neovasc of upfront, full-year of not the non-recurring our the despite higher-than-expected $XX forecast XXXX. do that will approximately in prior full-year exceed operating We from spend

continue of investments anticipate growth full the to year and to XX%. make XXXX in support expect to We our XX% operating margin sustain to and significant range

Basic operating income million in Neovasc, of Excluding net share XX% XXXX. $XXX.X cash, short-term income quarter the for expected a of cash of to net with second our margin quarter and range net to is second be the million income the for period was per the investments. $XX.X ended of share to Net second period per compared equivalents income quarter XXXX We was for XX%. $X.XX. the was diluted million in $XX.X XXXX $X.XX,

for At this comments. the like point, turn to Doug to call back I'd closing

Doug Godshall

a thank we as you, all while businesses, for our path paving grow joining the you us Thank Dan, existing our and same had Shockwave execute great future. for and at today. time, continue exciting We at and to quarter

With that, the will questions. open I to call

Operator

At we Thank question question-and-answer Our this Bill with time, Plavonic you. session. first from be proceed question. your [Operator conducting with will Instructions] Canaccord Genuity. comes a Please

William Plavonic

or of kind taking TCT Great. and at kind you out the wondering Day help topics my look of any may things Thanks. could you key was some you Doug, processing just other questions. color at there. for Investor the gave general but of themes just And us dates to next how that we cover. kind us look on as then major timelines, understand maybe Thanks OPPS I if reimbursement some for

Doug Godshall

now. guys you thanks, -- team Sure and who on also and with Fletcher and who with is I'll are call, Rob all tag think I'll Bill, familiar I the

So, a fall. this rule OPPS, will out final be there

IVL final -- IVL rule. will that proposed it's more in of We likely we'll the are see We change the would next any this that or something in think be mention rule summer. not anticipating

go pass-through early don't we'd July, that map APC-XXXX to June. in a will of then XXXX. if in color January transitional Rob, And sunsetting know see -- of in So what to from the I on be want believe that. And will we starting would we end at you how add

Robert Fletcher

Well calendar Doug November see and bill on from Xst, stated approximately on OPPS The we'll was CMS of thing is as for said, next the that year Xst. XXXX final November Doug.

Doug Godshall

and we've peripheral pipeline, forward excited of talked And Investor obviously several see folk's And not the new we've -- pipeline. not Day, then that see about heart, for previously. we're products will we Reducer our structural coronary should spectrum participation, to the about putting our

are truncate time. customers about hopefully, our excited incredibly glimpse they It once And share our at will appropriate it that a we this of pipeline. Our get to things are to are investors think too it.

some have We covered, of for XXXX. our the things that but things launching need very be no until to preview under we sort competition interesting wouldn't after

to it still reasonably we're things platform. to already keep our So, a disclosed such previously pipeline been near-term than going that as other heart have structural

William Plavonic

kind QX week Thanks. operating. in we'll how our know range questions be in high-end then, guidance, this Then just the And contemplating Great. taking of Dan that and don't the in of at you reproduced that to QX -- won't if just I that and and you're giving. many thanks And one-time that in say saw how see for are low-end costs quarter on what conference. of we wants kind my

Doug Godshall

and forth. go can back we Dan, So,

and the we couple expanded of but back seasonality look US obviously. we footprint end Isaac accounts, the And not our cath obviously of Northern in We'll as labs clip over obviously, labs same we as lots as -- as we other do. continuing our X,XXX the cath the internationally. a As companies in a got this the have year, feel and Hemisphere did ago in we summer are years of -- to at at add to elucidated, you've

but know to So, to we'll the with I if quarter. the progressing in want that? year see And -- add we in don't you the back-half more substantial growth fourth Dan weighted

Dan Puckett

was Sure that . million changing Neovasc It was and for severance. about $X non-recurring control mainly

William Plavonic

All right.

Doug Godshall

Bill. Thanks,

Operator

your is Bank next America. Please question. proceed Our with Travis from question Steed of with

Travis Steed

million wanted was the because to the to guiding got year. I the it to to just to in ask looks wanted there. margin XX% I follow margin in Neovasc beginning $X $XX the And guidance non-recurring about up G&A it because just step-up be XX% clear, XX% op for the on you're and million in question. you've then that Hey, the The year going at was to now like XX%, G&A.

three margin to months let's expand see points should full-year couple If about changed to be are op of for Thanks it beyond of continue closer ago 'XX. the that a basis to what versus So and how kind XXX in margins. the else going of to margin expansion, think in margin expansion not guide question.

Dan Puckett

Sure.

that, $XX G&A. So, in million in million non-recurring Reducer. for most about OpEx still of $X was We're expecting

earlier, had As it We expected than most QX. chunk I in -- bigger was a noted

looked So If the XX.X%. at if the margin, look operating margin is XX%. business, at just we combined you at it's the base

So, of even alluded Doug with over QX our a investments improvement kind to. pickup slight in that

in this the without Neovasc. give did -- XX% As far year we as had like given XX%, past we

So to about XX%. down to that good R&D we've very XX% programs. some feeling We're knocked

that in accelerating the increased the said decrease which probably down of right really also a programs, activities more So, Rica and little the will clinical. we spend help Costa plant running, driven We're road. to R&D get some up I R&D in now in footprint. And spend more and margin kind little our a by is

business, So, long and we've spend always the said, we're grow to going near need what to to we term. spend

was 'XX will months guided where always we hit and points kind back bit some which we've to basis said three that's where upper But We 'XX, points, margin and to say, back think a it's investment to be be the XXs. money. basis Longer-term, get is I of So, scale the potential what ago. a from little like XXX absorb you expect big we'd get XXX smart this of up. year. of we

Travis Steed

scenario. gap six-month the on Doug And Great.

early of revenue curious that help overall customers to or kind the are of your the yet at that if kind you about too impact willingness through on customers how it's if and a Thanks, your think thanks all. any about Just lot. in talking

Doug Godshall

Yeah.

are reimbursement of aware months. Now it's becoming reimbursement it's here coming even now for -- into -- few reimbursement. just aware of not Barely customers fruition the the not a because inpatient

the side is as impact not two be fees, there the be is outcomes physician, -- And is the any future making in -- airtime. comes would device. we've will momentum the fall juncture, that that said physician we outpatient, The of then far January. that's next order January, to are and we which go business, the is transition sure the till outpatient into So in anticipating. finalized the permanent you've they're before, so really then very getting business And assuming not the our from behind much of aware outpatient momentum on -- and and and physician-fee our transition NTAP so think from July clinical inpatient. reimbursement really we're between in favorable that, effect got And physicians on at this other

So we're rates. not anticipating a in change utilization

Travis Steed

lot. a Thanks Great.

Operator

Adam is question. question Sandler. Maeder with next Piper Our with your from Please proceed

Adam Maeder

Good Thank taking one it by questions. Hi. million you at $X for think be guidance. on million raised Healthy here, with would afternoon. change. top-line and start the midpoint, to QX the I wanted $XX.X the I guidance

contemplated able had Reducer for number? kind amounts. talk follow-up. in that the components confidence what's updated by And in of to of So you then bridge a Are specific us maybe just about what's with kind being larger the I that ? raise increase guidance to and giving

Doug Godshall

very helpful did these is small we handful taking we the The year, the -- on the we in than countries do with you're referrals to. data, We're that so transition the chime commercial in will of and little We'll that sort be others. be market Once let you countries. seeing And team, to it of bit will it's we want which then a is experience, is just we I'll as model, may understanding stay but some and in now. focusing on we're us for adding field. we less that Isaac focused call, Adam, model, in us which for $X former aggregate, of for many on Isaac on in as gives impact we're Reducer, Yeah. have you're we -- US how how quarter. that confidence. On maybe from the will focus what a we're said seeing on understand focus our whom making really on be commercial last side And million Neovasc of going the last the two what But necessary the working one, think bit driving incredibly X.X to COSIRA-II for what adoption. whilst to approval, not a are helpful, We global on poised. take well, patients.

Isaac Zacharias

Yeah, sure.

to in probably is I with particularly QX, QX quarter-on-quarter look still the second what contribution revenue we it we at but that, grow modest compared being seasonal as growth from and able think go for business in QX, pleased -- were. to the everybody. we really We'll And throughout for Japan half really versus see into bigger saw if what expect be we you where Japan, through the and with then but increased guidance, QX getting as growth the international year, QX will in QX. Japan more QX much seasonal in we're we'll what in a obviously be have, our you're expectations quarter-on-quarter in

in business effect the particular, which businesses, fourth in is and in going direct the incrementally QX. some now Germany for quarter. have to that continue be really on customers coronary a CX+ nice Spain coupled US a selling story And direct go strong contributors organizations the build. as this have that's they we'll new we've then to the October. nice have And reimbursement have product taken be with Italy in going our performance with then would We'll tailwind in year. inpatient will with the international of We and We'll that in generally will launch seen Canada,

growth we the out and So with that we think momentum drivers on mentioned kind the -- going a the itself there's builds second QX. into nice seasonal of as of come in a nice half QX

Adam Maeder

Great color.

Doug Godshall

in you then quarter We launch also US inpatient with the in stimuli have fourth and -- the CX+ reimbursement. additional two the

we're So building education to this which from our we're the I we've continue and out prior and sales think see we've the and physician and done work investments -- continue year, years, momentum to we benefit specialist done building substantial team. quite clinical relative to is

to bear continues bear fruit that quarter, end -- will the fruit. year. this Last bear it of So through

Adam Maeder

Very that. quick one for helpful clarification. guess, Thank you I just color.

guess, $X go that or previous And updated you roughly into had I then I follow-up. in the guidance added guidance to that So assuming million round? is for Reducer? the range, I were want a understand this

Doug Godshall

Yeah.

So Reducer it. because have was obviously, into in our -- last either or the into spend looked street the year beginning but everybody's commentary, on we Reducer Neovasc of revenue. the the didn't But model our not expectations, as we incorporated no incorporated

mixed So did a included. a bag on little there's bit of street. the But we

Adam Maeder

touched Thank that. then you response, perfect. you in it for for follow-up. the And CX+. Isaac Doug, on Okay, last and both your but

business? pricing little is I Thanks color launch Just for of get was growth hoping how much How of and for this terms in potential quickly will that bit terms that guess more the strategy. in questions. the lever US to a taking rollout of

Doug Godshall

Yeah, go Issac. ahead,

Isaac Zacharias

question. good Yeah, Sure.

October launch CX+ US, the with the strategy what in bring to on of you in launch message seen with message we based the and coupling in-service really that get will the we inpatient parity international message couple Xst. we then that can with reimbursement so So the markets. The those point. CX, same compare an A with will about price in change price for we've CX+ improvements feel And very is -- good CX. on the

launch the more territories that We've we'll of have in So past. typical. we a kind got

will go launch explain. that the it's more to prior reasonably launches, this product, quickly to CX, CX+ simple expect compared I So than

we're the quickly but two probably get basically pulses XX% kind can inpatient more expect it You do the still launch we oh, side not the of reimbursement getting now to roll -- by more that way, business. power, your before still -- up quarters. on specific and next, we're you're a the the reasonably in incremental of And kind and I did exist tactics, go contemplating of this

launched most through the -- part end by we ready for the teams in is of launch is roughly need be can next for so reason we six part clearing for of the reason year, a 'XX. we of as And the need QX kind they the of the to, of two launch. then of launch that products get kind that months, the So of

Adam Maeder

Thanks.

Operator

Our Polark is Michael from next your Wolfe question proceed question. with Research. with Please

Michael Polark

what a much threat maybe ask productive kind From far impact thus CX+ launched the there, a you you would I number seen it these on CX+, sales the from the analogy of same-store of will accounts, more Europe how in specific does make very continue kind hazard of, have question. frameworks?

Doug Godshall

good That's a for I don't question. right a number good moment. you, this at Matt, have

to that also of additional with whole standpoint for done or story even lot publication, we've the the a results It's is we But some just on think do same-store can without using those benefit nodular that take more IVL. telling that to we something think -- good when work then pull difficult help If launched And addresses about that go have momentum. we publication our educating markets. hard question pretty do use nodular really and same-store an do year, treat you we if -- -- anecdotal IVL perspective, one want the coronary CX+ uptick. see I are put we've there sales of base incremental clinical as the versus least else how and trial from any our we where your to when think still growing more. pulses the on the think to don't -- from a CX+ I lesions at lesions. a eccentric lesion in clip. IVL or and extent some is didn't and internationally. help divorce think and CX+ customers us, to what eccentric At works little shot And And in We those calcium, marks some this IVL and diffused customers if those sales that we and in the on you anecdotal good the of you longer they -- were is want for those with that's selling pulses there think, a lesions they additional catheter. direct that's

results of the feel are I getting than So think XXX -- better pulse telling our where comfortable pulse they're catheter. of us the with XX kind both they those customers and are catheter pulling more aspects IVL

Michael Polark

prepared XXXX, For the I follow-up XXXX. answer, now remarks, question potential on range sufficiently was XXXX, the squishy this Reducer and a wide is on but for maybe my note XXXX on I Doug, heard target. the that US the such had approval that's

a kind market? there back-end extent why once know well that So the What your you position come runway a you kind have to mind could the it before range. was of, learned range before, the in of to more you little as that of

Doug Godshall

saying XXXX. walk a we has next are we and when switching then Yeah. crawl we it, probably And slowed which Neovasc inherited publicly crawl really best, down run inherited trial been that a to now to from year. had at

sure And it how stimulate enrollment. so we weren't bought able when -- we we quickly to be we'd

heavily of on how of imagine done that's of and because So we the into would models is there have a to didn't don't that enroll. time could think much that have enough fascinating we sophisticated approval. enrollment being we and we approval going to And from and hard in understands to take of sort a now when everybody it's to at can -- but back in terms it's better timelines at expect -- do juncture. -- XXXX on sort how bit we things on like sort significant so but this were a or the we sure assume is are with just There a it's end, trial panel, might enrollment of approval you stand do you we so -- to make have not to we in that -- think take approval there get landing leaning still complex and we think to offer it's we thought XXXX cautious that we understand get long some are we that only to that trial we XXXX enroll all want now fast upside likely, do today even where so to about impact,

Michael Polark

much. Thank you so

Operator

comes your with Biegelsen Larry Fargo. question. Wells question from Please with next Our proceed

Lawrence Biegelsen

quick for TCT, ones from Thanks is kind me, of kind plan taking or afternoon. Good Investor give question. couple Doug. there The of directional? any Day, the to a any of anything A long-term guidance financial

Doug Godshall

We a Innovation of the on lot But get folks a looking that a lot of we want a will are appreciate Days view when let that, Investor focus future. these we you Larry. We're to we Day, that -- technology. calling know for of into bit an

So we'll financial what outlook. about thoughtful of be we for future sort share

Lawrence Biegelsen

by that I the And Reducer wanted assumes, what just helpful. to was also dates. understand I surprised XXXX That's Doug.

last they It's end design. TCT, said, Gregg complete hope Stone an patients 'XX the XX So, to by enrolled they had at adaptive year enrollment. of

are XXX So to us analysis you're what assuming, you what Thanks. US of XXX, you understand to XXXX the that can interim roll is approval. kind at up get first just help and assuming to

Doug Godshall

was matters been in past focusing the trial is Yes, What get to on one the got so had characterized the that ways enrollment. really you've randomization. of

randomized So, need we what didn't XX some-odd XXX and randomized. they that's have

activated Well, get had sort of XX today than of eventually And of Frank, been sites. XX -- to. when the bought with than that company we the so we out been half less fewer initiated will stand had where the

activated better you happen, get enrollment, the et the now got for to yet we're -- So clip. And activating sites adding sites randomizations cetera. site to at a

half in seeing cetera, back XXXX. in that we're sometime et how on XXXX, submit, what so patients the based we're which final and of to is far, you we trajectory anticipating the kind got which So realistically XXXX, patients, probably be of then randomized the follow will landed

Lawrence Biegelsen

it. Got

Isaac Zacharias

Frankly, landed thought is where land. to right about on add that, just I'll we would Larry. it's we not, That we've where

were last our looked it it hopeful We and about four a thought thought we we've that trial months, acquisition. we back were of landing that integrated three, they and were were place. this optimistic We and spent around previous it peel It's at what enrollment. expectations where sort after and put overly from rosy new we have the plans get as the in would. right. on But arms As -- management

the bid-ask, I the realistic sort what think think of think compared to is, previous what what's we that's So, and management now. that

Lawrence Biegelsen

Okay, you. thank

Operator

Our with is Please question your proceed with Bank. next Imron question. from Deutsche Zafar

Imron Zafar

if just in in geographies back was those business in my talk three the Thank all can the from are contribution XXXX. for good Germany markets, to very big much It especially international like the afternoon. wondering all about relative and Japan Hey, launches first. I you going question. well. sounds you play focus I and half growth three on wanted taking the OUS China, the

Doug Godshall

-- Yeah, we anticipate

Imron Zafar

Go ahead.

Doug Godshall

XXXX to Yeah. I quarters what going mean, but if a Japan. If growth. be are perspective, we -- all continue yet, two we to from in -- you scrubbed on they growth a dollar I anticipate and from haven't we're healthy really just down based

Germany. So it's to quarters effect four growth we've two having had already which is in substantial the on into situation improved a revenue that pretty Germany, early and in reimbursement years are the compared we last

would going China, Germany yet Germany kind for dollar you're Germany is I of little of Japan out year, into coming as and strong to and So, growth tell expect and now. early that this a right looking see we go then largest next through year but to

Imron Zafar

of sort like your this next and top the is peripheral, consistent growth is for for Street then of mid-XXs. similar in thinking looks the rates, pretty the with on that coronary XXXX growth Is Okay. And that it year. looking relative for --

Doug Godshall

not year to a strong what think. we've be. We've very certainly we not -- going next top-line We growth to here, think expect but we characterized be is

there. from we chance a we I think away until number until -- shy I'll out have to a put that So,

Imron Zafar

much. you enough. Fair very Thank

Operator

Please Matson Mike proceed Our with with next Company. Needham from question. your is question &

Mike Matson

Yeah, thanks.

on peripheral the couple a business. Just

And peripheral it's coronary. maybe there, small, just in if the et where guess, know wondering seeing just of I you're some what maybe you talk peripheral you're compare So you've adoption in versus kind just but cetera trends, customer then of with countries. traction objections in could international commented, I seen you seeing about terms what business

Doug Godshall

Yeah.

is Shockwave think -- benefits support expected who high in have is our But in peripheral I'll support who we're wherewithal that just more labor-intensive. sort clinical the of do that one consults we're the that peripheral Isaac, our little dramatically from our across peripheral case The seeing we the team team we market that business. a do bit lab. one, The high. in bag percentage the the have different. and practices -- the both market, not which cardiologists real I expansion is to the the better the industry, So, and synergy too. from peripheral both, importantly, of obviously which coronary is very model benefit And team of sales of this the both, coverage tag does we benefit in because one customers of interventions our more from think specialist -- very territory the peripheral coronary sales a certainly and we is sort coronary in on the coronary There

LX, as and we are One of already also far hospitals MX+, high very to will reasons a be percentage our of going our But do the peripheral we use peripheral. in portfolio larger of peripheral. a with also couple a next as coronary both and have launches product on

you're little covering have vessels versus much a the products more a to got three In know selling. you're spectrum and targeted I CX+. where will you if jump we'll CX have on and of depending or want more bit with that version sophisticated sort in don't a have it's now but the broader then two be the future, in we'll So complex for we'll we And on international selling simultaneously, CX coronary because Isaac coronary more bag of aspect.

Isaac Zacharias

we number, many that countries driver. distributors but for primarily, really international customers we're with and European with peripheral of peripheral because direct done force. product would vascular relatively and mentioned, of And started the it's force countries. our the had guiding That horsepower sales of we've But behind on surgery of sales it incremental the a some on the Yeah, patterns the has vascular is -- large the seeing the -- for Sure. lot -- really is some and focus get more this to we've introducing small gone distributors and of adoption effort privilege nice a focus growth as marketing the in surgery internationally. put lot European international nice juice work you a a to teams it, relatively it's nice job small a good in

Mike Matson

it. you. got Okay, Thank

Operator

the over end-of-the reached session. Godshall Doug like call-back to the now have to comments. question-and-answer I'd We for closing turn

Doug Godshall

obviously Thanks, time months incredibly us. interest years Shockwave. everybody your for the your everybody. We're of time and continued next six for in about enthusiastic and attention, multiple Thanks and ahead

Operator

This concludes today's conference.

at lines time this You thank disconnect your may for and we you participation. your

Shockwave Medical (SWAV) 7 Aug 232023 Q2 Earnings call transcript