- Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Motus GI Holdings, Inc.

Third Quarter 2022 Financial and Operational Update. At this time, all participants are in a listen-only mode. There will be a presentation by the Motus management team, followed by a question-and-answer session. I must advise you that the conference today is being recorded. the to turn LifeSci Russell to Advisors. like call Garth over of I'd sir. go Please ahead,

Garth Russell

the operator, Mark GI. you, for quarter today. Chief of Chief GI us you Motus Andrew and and the third Tim Taylor, Representing Chief Executive call Officer Officer; update Officer; Thank XXXX thank President Motus and and everyone Financial are Moran, Pomeranz, company for joining Operating

These for remind statements their reflect call. take are note Before could that risks the opening I to opinions subject differ. turning these results that the and of to and to this call our would forward-looking the call uncertainties cause a Please to conference management minute of to contain statements you that over this only certain like will company. statements remarks, forward-looking as webcast about actual date

to floor Factors are any implied statements these publicly not reports differ yours. filed events. future by of in obligation call the will Form other those Form our XX-K and greater is periodic statements light Tim Moran, to to results filings over GI. our actual such materially to I’d in detail revise We revisions from the and of or forward-looking outcomes recent expressed Motus or results that cause or discussed most X-K now to SEC. could Tim, with on or the any information the forward-looking undertake release XX-Q like on in turn of CEO new

Tim Moran

the quarter. provide seeing of as update on we're today. in insights you third joining through call an pleased morning, what the I'm to Thank everyone. Garth, progress XXXX, early share fourth well quarter of good for and Thanks, as our our

then an overview Following my performance your and for the our of the will Andrew questions. open call quarter take third will to we financial update, provide

XXXX in compared the quarterly and of the second reported We $XXX,XXX, date. of increase XX% third quarter with represents revenue an to Let's approximate get quarter our started. revenue which highest

six continue some With take We as the of overarching since third EVS, the an additional months ago. quarterly the offer our Pure-Vu back in me behind performance color steady drive drivers that key and let to our growth quarter. a step launch of view,

enabled the continue is success expansion bedside the flexibility we've Pure-Vu's launch to on with a and the improvements dirty on primarily Pure-Vu have being well the our our rapid by EVS, made cleansing enhanced comment the commercial Our at been the capabilities setup, to as Physicians reach. of efficacy scope. complementary use of as of specifically and to technology

these of feedback years. over All for in based at were of direct QX, to of improvements upon from placements the me hospitals. XX three brings have Through EVS. number the use end Pure-Vu customers the we now the our Pure-Vu This last

experience new from community most hospitals. placements academic, As prior expected, no customers are are and VA comprised with balanced and of a coming between mix

leads me we and While solid performance, growth driven staffing to shortages. did budget pipeline. to hospitals primarily a purchasing and accounts our to continuing manage of This capital by QX, handful their we delayed see a believe constraints decisions through QX strategy represented

initial physician Expanding key facility Driving of solid to same-store extend increase we existing predictable to it important, approach it base Pure-Vu of also our sales, go is the in we as with procedures utilization success, to market during our we've strategically to site. as have that physician period. and the number month physician expanding recurring meaning Two to base we will to in sales deeper of deeper, that long-term champions, new metrics repeat we users. a thoughtful important with are each ability hospitals. consistent team higher utilization by incentivizing Now provide are our continue and established each a accounts speaks It's our to to while EVS metro each track within adoption quarter-on-quarter at worked revenue. going the use that hospitals beyond drive is evaluation users

Let we're area. this progress seeing an in example of provide me the

thinking growing are QX. the This As of is our staying a we the a one expecting in mind proxy to Midwest increased for result our sales XX% see to of what doctors hospital across and approximately from of base volume various procedure monthly team be has where physician QX benefit the their customers. our Pure-Vu opportunities, front EVS of are number hospitals both VA about expanding the sure accounts, of to can by users

to our pipeline. now Turning

health land-and-expand EVS. additional the Pure-Vu targeting our outlined the at approval have approach, system, of flagship or use of a We following for hospitals within center

we fact, getting have hospital several and already networks In at success hospitals introductions centers. had to associated in

comprised As XX comprised of System we hospitals, approval of sites. example, affiliated VAC system-wide Group, received system an affiliated Health well Texas Resources Houston a recently at as the eight Health large Methodist in as

and decisions expressed wait VA's Pure-Vu EVS. experience deploying in in that population to VA procurement that also Motus VA's sites as streamlining often a business. During valve the longer of thereby provider travel experience average distances provide for designations QX, rates the The direct has announced arm, us system longer shortening we interest preparation, can access inadequate the times. sole-source special care higher recognized small and GI These purchase and

provide Additionally, care the system. strong procedure, desire centers is VA Ensuring a their the priority. for a outside improved have procedures are the of to first time VA a high-quality patients penalized medical top referring for and

Finally, system not payers. policies the reimbursement care the health VA beholden is to third-party of

inpatient EVS system can physicians use procedures. and outpatient As a Pure-Vu both for result, our

care opportunity, VA now new XXX,XXX in years. with XXX hospitals health Administration In is centers, approximately quarter. integrated in Health the this at colonoscopies performing in of the including the Veterans use system five agreements last largest that the EVS third approximately States have different three United medical the Pure-Vu two sizing over closed terms We

quarters. commercial US result across expect new we which VA We evaluations coming are the also in actively pursuing the in new will agreements

on catalysts. upcoming discuss key let's our other Now, progress

percentage aborted let EVS will study on update endpoint in an provide showing a adequate data, completion by of achieve those substantial of the outpatient or a academic guidelines. outpatient anticipate hospitals, community that well a View enroll end We a care of trial. ambulatory expected study expected system's patients to in evaluating this the multicenter large the prep lead GI procedure an approximately patients our outpatient the exams colonoscopies. study reduction from including ability The is as clinical X,XXX outpatient-focused an be centers, compared to as quantifying a primary see study's and The of Langone study of to reimbursement study, Pure when large to quality study number early the NYU with system. designed clinical with at and First, Tri-Society with repeat are The patients mix used support defined the the the applications, XXXX. significant aim show the the use before in will We in seeking in me the System to This initiating this poor in Pure-Vu near-term Pure-Vu to standard results tremendous the certain Health. conducted reimbursement of market. of a as improvement surgery need generate

of of it – which procedures one for is reach may or a the a to the and to How approximately However, ask from in system, is outpatient procedure. patient, without burden aborted us high-quality a year, Pure-Vu US you X.X conducted System, XX million struggle answer many the delayed, their perspective. the patients difficult more that, the both puts four and million each patients. to prior get procedures, the repeat This big almost these lead reimbursement the to to care than on economic in health clinical prep problem can is and

risk repeat early the of for come them patients between XX% at as leaving occur many a exams only However, interval back cancer. as prescribed, time do and not XX% higher

we Another additional growth for drive Pure-Vu EVS expect pending our that is the device. upper business catalyst GI to

EVS We advancing upper of to continue Pure-Vu designed add development existing which to Workstation progress Pure-Vu is capabilities EVS GI make the gastro platform. to the the

system, further a to key larger of completed XXXX. the GI GI as an potential eventual complex In and on address feedback such cadaver The visualization providing significant initial project anticipated is the utility the This to challenging our GI a and Pure-Vu challenging an with proposition jets, platform. unmet We by of in the will to profile approximately of XX%. the upper rate bleed suction improved reported of and optimized of smaller system much cases. channel, provided the enhancements procedure. Some development a improved believe EVS mortality in lab, upper flexibility we solid value new efficient an solution design procedures overall more be These be animal the QX, device. early broad provide EVS enhances irrigation allow device during addition the has need on upper an can track with which in product launch the

turning partnerships collaborations, the partners, our with opportunities both various program potential pursue provide in future. opportunities Finally, with us to with of to believe strategic we success strategic US. and potential continue commercial the We outside and can in

I'll Andrew our to focus our and With financials. Our over potentially on these sheet. the progress to that, balance in evaluating strengthening provide accelerating now XXXX upon opportunities centered our is Andrew? turn QX commercial call detail

Andrew Taylor

last approximately XXXX quarter reorders compared for and an the and Tim, to for quarter well primarily customer over reported you, $XXX,XXX, second and thank derived workstation sleeves, as were same of increase revenue period this as for $XXX,XXX us year. from Revenues for limited and represented past new everyone, Thank joining the you, sales today. quarter also We XX% rentals. disposable third of the XXXX orders

diluted attributable the per months share a loss or $X.X For or $X XXXX, attributable year. compared common common shareholders reported of period basic loss million $X per we to diluted shareholders basic September for and to XX, ended to the of last three net million and $X.XX net same a share

fully financial equivalents, at-the-market same million with liquidity cash existing or operating assets are facility. our for used XXXX, we $X.X the and quarter million XXXX. third September cash At of activities covenants facility. the fixed third XX, shares reported of the worth was cash of we which approximately XXXX, the million in During $X.X sold $XX.X no and credit After facility $X.X funded Kreos There to quarter associated for Capital. compared in purchase from this our with period million includes net end,

cash the a result, is of Tim. needs to over call through meet I'll back second to turn expected balance the XXXX. And quarter now current our anticipated As

Tim Moran

everyone, for you, Thank you, call and today. thank joining Andrew, our

higher by ask We sites. the for to momentum the in by build while operator this organization to call US market. pleased new on utilization are now progress EVS your driving I'll make Pure-Vu the the continues to in strategically launching questions. commercial account We our plan expanding open

Operator

question-and-answer a Lichtman Please first [Operator conducting Thank be the with line and Instructions] Oppenheimer We from session. of have time, you. ahead. Steve At this we will question Co. go

Steve Lichtman

And year-end? what -- going that pushed Thank balancing I accounts a start pipeline of before know handful customer new guys. a confidence the through maybe account you those you little look you. this expanding, about and in into little accounts you but the was Tim, those talked just if coming on deeper in for broadly, fourth at point. does and about off then talk you between guys wondering could quarter. talk a about visibility current you like maybe I Evening mentioned bit Can bit that with purchases think you

Tim Moran

Sure, questions. the for Thanks Steve.

is pushed quarter a Steve I of about a my the into it been quarter, growth, demand So clear got happen, and have the had in We have good about terms sure think to from the the We a has mainly that comments not capital question XX% had it first contextual that comment perspective quarter, wanted demand. released but were and it that did been mainly expected in been make seen nice was over funds there. with bit of deals, not the which we've budgeted prior could for a stronger before. some that about to third QX. That part accounts few

in these hopeful seen for accounts to will So we're now fourth comes to when full on visibility and occur, of delays them through make will to as planned. through funds are a Hopefully, target but got our come that they off quarter. be pushed at given have these times actually couple that don't We've that the the QX. the purchase,

We a capital. are pipeline of nice building

will funds start to will these and eventually, it numbers. the So hit clear

across to always of think built, seeing physicians for not And the this and end you've stickiness terms some you is mind. us stay that been so that day, We're In just now driving memory. the like to accounts procedural we're to like And the handholding if things keep diagnose at there that mind we in front bit we've these accounts. rep approach, grade we've kind of board, we conviction of Because muscle got seeing XX% that when until we're sites sales been procedure, kind of looks drive competitive kind building not same-store mentioned, the will. now on our and you need a becomes at what accounts where the the a of that important a to in all of it's really little be as just some remember, around new it you're what as We've product. procedure. more the to of quarter-over-quarter, and look the the increase obviously able But across of focused but I we of base referenced, all looks of accounts. XX% see I front

focus to to some as incentivizing of start ramp deeper That their a asked across sites, sales bit the board. to same-store but we doesn't other want going we've we're the accounts. I that up not in So QX, and really to on team to sales mean expand see go they're them

between managing per in X they're our are terms pipeline, We that anywhere still Steve. across XX from organization sales working and of rep accounts

plenty be have we of drive know, you So to and both still expand able as opportunity, to utilization.

Steve Lichtman

it. Got

like basis, now of in terms in for does volume users. higher higher of of right you month… in On absolute an the user a look context, procedures number procedure Just terms of growth volume some mentioned a some what

Tim Moran

Yes.

Steve Lichtman

metric of, can sort any, provide? Or you

Tim Moran

we can Yes, anything see of, penetrate as XX procedures procedures over to to anything tool XX month the think Steve. but is a go We higher board, docs and we of kind -- all what of really a than is the becomes, the nature obviously, month time, we want we physicians more north unit. accounts. where north really across that, second much in see want consistently And our it of to

Steve Lichtman

CPT look on on -- -- And it. need for plans to you mentioned Got are with DRG track perspective Can Okay. of is there remind will me And a reimbursement? then year. this you next where device what as launch to Where relative lastly, fall anything this perhaps just you from the the your to Gastro the side? you within do product?

Tim Moran

Sure. Yes.

I'll prepared upper bullish across a of we've mentioned comments this KOLs labs got services, absolutely And GI at big in animal and of make device. a I couple advisory a the remain them gap just market, There's across remarks. been So cadaver in the the there. and in We the on that lot providing that's validated country. participating many physicians

on So remains we're excited on the track. it development, and

in some to provide hospital. Now the bit as add additional. But color, clinical me happening of I'll reimbursement these can to a little of are procedures, it even relates and activities, and initially, let then it kick Steve, over and a lot he Mark,

scenario. So we are looking at a DRG

it dissimilar to and ROI we colon. model GI the as lower So present that today, relates not to

and avoiding able necessarily, identify dramatically Now source to, have procedures. take hospitalization couple get GI the are hours the -- nights that the that down believe we'll to a time can bleeder upper a not to of with ultimately able obviously, our They complex to be treat bleed these we cut of but bleed. really we can of device we're and

the there, we've this to we going a device kind much worth by particularly the they're price. of procedure, is will cost, think we a I pristine of procedure, be them well. that is providing if allowing the about in seeing and that that that procedure think pricing less gap a during market make as visualization done high that So quickly, believe more some -- mortality visualization such this the is go And analysis benefit this to there's because the it giving be is And them well today.

available. to Mark, about we relates and So as how we're add kind that clinical you reimbursement -- do to me Mark. the of it once want additional color device even kick or any have to activities let thinking it

Mark Pomeranz

Sure. Thanks, Tim.

to they It and do the in have of me high and works I if get can't highlights But a them And more being the really fleet track to move some the transfusions they'll upper anything they they Erythromycin what see well, too with wait if a are could happens patients a these or bleeders they digestive refer get can hit there, to like little anything stabilization when GI, really technically more help try on see Tim typically that IOR that, hemodynamic expensive, more go well. and look Tim DRG on call but scenario. really, prep have really can't these second issues let to endoscopy another transfused, these which then to patients. to invasive as think are get significant for give they'd lot in to for nothing again, doesn't mentioned, around of that patients. procedures the there okay, the like to more again, type they much I that They'll will And more do other is along patients, as and bleed, tries there these in, -- are thing back avoid. say, inpatient Steve. colon, and faster, patient go patients the is of if visualization more. have try and these that that in And they isn't that acuity

Steve Lichtman

Got it. Thanks, Mark. Thanks, Tim.

Tim Moran

Steve. you, Thank

Operator

Thank you.

question Alliance of Haynor Please with ahead. Ben line We from the Global go have Partners. next

Ben Haynor

one of to afternoon, up taking Steve's your Hey, questions. the for Thanks questions. gentlemen. following response on Good just

utilization key it wants, And hits there characterization account on sounds one earlier may of would hand, kind you And threshold that kind then to answer if Any of utilization have a a per front, repeat of be fair the On what stalls color it's an in every out. being the of kind to you once XX what of but found Is that growth. your then they obviously you company the consistent see XX, long-term more get that seeing to it utilization question there? sort don't month, accelerate. you're mentioned helpful.

Tim Moran

Ben. question. Sure. for the Sure, Thanks Yes.

do typically, you'd now that it's hospital, there's when be it in So granular of And I of the things accounts of why to are in that There's not is utilizing gap seen physicians the would But of XX to. gets imagine. combination the again. I best at docs diagnose a if not on So Pure-Vu one, and happens of dynamics still multiple number gets as we've getting a our before, a you level, get terms right? – is is, say pulled different kind able each inpatient think we're service, there's happening, there's used a one procedures and device, that right? time volume,

So the facilities giving right? thinking you right, we get, So in sure also to becomes and management sure in a of together. all more but more of front the second of they're be with about kind them about kind do more it influencing the tool of and as the it down need they and be team dynamics it, change just more the to the that, the think thinking staff order of that being they just number about certain thinking proactively volume that and the that nature of it the make of And plays kind this. coming patient they're to mind care. physicians, and be Pure-Vu about to And a reality optimal and

able being doing, metro in will drive was of same-store on that rotating the is putting to of kind facilities training that Pure-Vu, other talking our the more we to sales, between some heads constantly on grabbing we're to from if the someone more ground piloting accounts, to rep clinical One them, bit perspective, also to start device expand and those that our just then have few contracted about a physicians, are a while determine little rep areas a things go in sites. in we addition had Ben, focus that

looking further that we of to So provide we're action that's kind that try taking but procedures. test that well. to more it, that as at as being updates theory that we're differently there We'll get into drives something some

Ben Haynor

account Okay. point, of -- maybe is of the your that follow-up kind out you that go utilization automatic move kind drive there? what seeing is just are And in of to the another threshold a that. force then it level to of kind what's level assets that sales of easy -- little bit or on a or utilization, Once account, to at you and get

Tim Moran

Yeah, exactly.

there level deem for doing be meaning of So are use that at comfort setting either maybe it, the those as done just to it down all don't look independent, right? -- or starting where of become to they're to see need that don't come roll and grab when right? you ready most for to up we reasons they high they one, accounts also they help cases the use we to some so can them up I of or us kind just oftentimes, just the those independent stated, the a level, So not getting it apt that then it, as getting the and kind it has couple those they to revenue in. volume utilization, accounts much are in don't of we get not accounts the need physician more of to -- we're that So only them staff, just

Ben Haynor

Pure-Vu? -- situation, helpful. like just VA you hospitals Okay. guys. sounds do could broad how these quick And for How you a could then you development XXX-or-so adopt think That's great and that VA on the

Tim Moran

Yeah.

really year, spend VAs acutely across in the for at areas. facilities. us imagine, as focused any good area XXX right, our we on about does our system sales focused That are to you'd a And that time. So got colonoscopies there those team XXX,XXX opportunity a look as we've over

patients oftentimes issues, Pure-Vu. prep have about for high-volume So accounts, are great So right? higher as their we talked target bowl these

So a different of couple we're doing things.

we've the and addition just works our kind marketing the to model, year. they're to and doing receiving done all VAs, receiving on end perspective, feet to will accounts of building in reps also getting the into not these XXX on center. that now we're directly a front outreach information from And So the that's relationships, ground value of all the completed before in ROI that so information they're analysis, but is it the only be Pure-Vu, kind and of

trying sales the we're So if you will. team, soften for ground the to

We conducting national also are webinars.

So we executed one working regular to to invite in country able and using September, hear what benefit where has we using had physicians exactly they're we're a across able KOL and Pure-Vu the we their on Pure-Vu are who one been. were VA other peers of from how from And directly from a VA a that's hospitals. the at colleagues basis. And

VAs would we here scheduling say, bringing of right opportunity. in allow try accelerate Ben, to in I probably I us are our to fourth the the now, we're So another this to pipeline. quarter. those attention one XX have think And that all of nearer-term will XX

to in to So, that QX. online. were and the quarters we've past pending trying of next bring that towards We are over going got work several to for able we're this quarter, close couple two

think that closes I report the see us we've within this you'll So got designation. VA to start more now

Ben Haynor

even maybe closing couple out your quarters. be half a a we as dozen, could or several a quarter it insight of look So few

Tim Moran

I that's think reasonable.

you right? very those if handful rep, bring across more, got each the if country, it realistic. As to So down I not into each, XXXX home, out think, break for they've seems we a look

Ben Haynor

Great. leave color, I'll for thanks there. Okay. Well, gentlemen. it the at

Tim Moran

Ben. it. Thanks, Appreciate

Operator

H.C. ahead. Instructions] We have Thank question go of Please Chen line you. next the [Operator Wainwright. from with Yi

Q –Unidentified Analyst

I [ph] quick is a on just Hi. answered. Congrats This of the been others questions and behalf progress. few two have all Yi on have Chen. Chait

are or the one end XXXX term of normal And levels publications more the below in of XXXX, first either what near if hospital end lastly, placement colonoscopy expect of Thank being, is even and The your possible? volume XXXX? numbers still procedures most the target the we hospitals? can And you. for of by

Tim Moran

Thank questions. Yes. for you Sure. the

Okay.

So work had the let first just Conference, that on at doing, presentations publication I'll Conference. GI have most ACG the we the expand me couple, and Mark few take a we're and recent some

small to each we while back it point XXXX. time The of nimble, disposable circle quarter right? sales in see that rather either deeper have a hard this repeat these quarter, publicly we'll do But accounts hospitals expect want expand as terms still my number So running year revenue in with resources strategically quarter of out, So have, come would if you we process -- that I the will relatively we recall, So that sites be right? number the and we drive you us would not all organization. commentary on a sticky we where is, this have a or will initially, I provided that. to up have requires see we today, of go there getting hear have and into to from that. reason be getting and revenue today we XX them and us that in Pure-Vu

with we So to there's only many and so efficient very be effective have those. resources and

chase just that looking around number got we the business if and not XXX accounts, because not into may a a we're don't over you time, procedure. sustainable strong say to So have conviction be

So we'll and But this I launched of relates already provide new detail more as the XX point we numbers to in hard seen, in product as now you've we're it into think accounts. future accounts. March,

that of rate. sense bit give of run you a So a can little

colonoscopies they're where volumes we procedures, period, hospital procedure the post certainly think COVID they that of like feel, terms back were. to In for

to economy of as the all the the seen. funds delays capital be and of that impact other think that the some I in pressures we're of continue seeing noted, given mostly business our is, macro this market, under on pressure we've current

staff So some as right? probably are a bit dealing the times shortages, heard other on that elongation still of reported, And of areas. companies hospitals just cycle sales that you kind have puts certain with at from in

just say talk So me then And about right it market current now. over the clinicals. to kick our of a you abstracts I would view kind could let Mark, of that's dynamics bit and little if

Mark Pomeranz

Sure.

few a own that publications meeting in mentioned, of had which the we're abstracts, the around Tim seeing, three was the and also just at on abstracts being own was most things and publishing company. one as in general, approached nice October, history any clinical research actually back by nice in we their And and meeting data So Pure-Vu. of the the ACG too, had and things is we've their ever investigators in doing presented one data

that, around the studies shows independent support conviction talked which working on technology. the they that investigator-initiated with where moving with research, looking as clinical forward. see folks but at really reimbursement, type pushing around because their things some for that seeing help we're So we folks studies And is also their trial several we see besides also about to big nice

we will continue that abstracts. So generate to think

into of beyond. turn some four manuscripts these And things will next into year and

Q –Unidentified Analyst

so much. you Thank

Tim Moran

Mark. Thanks, Hey

Operator

and like you, you. closing back have gentlemen, over sir. Thank reached turn I'd the remarks, session. for end to the to CEO we Moran, question-and-answer And of Ladies the to call Tim over

Tim Moran

operator. call And to very want today. I our for just thank Yeah. everyone you Thank much, joining

incremental The that I we're pleased commercial earlier, noted we're drive As to with progress growth. team quarterly making. continues the

validate Pure-Vu new about catalysts today the investments additional a towards We that upcoming talked around product data reimbursement. well for upper making have to call, around both ultimately that opportunity, during and as the the System clinical as some development significant GI, we work we're innovation the indication as

look forward We'll another attention. at of to providing the this and quarter. time your appreciate update I end So

for joining. thanks So

Operator

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

for lines your You this disconnect your at Thank participation. may you time.

Motus GI (MOTS) 14 Nov 222022 Q3 Earnings call transcript