TMDX - Earnings call transcript Q2 2022

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Operator

Good afternoon, and welcome to TransMedics Second Quarter 2022 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 process. I would now like to turn the call over to Brian Johnston from the Gilmartin Group for a few introductory comments.

Brian Johnston

operator. Thanks, released the TransMedics XX, ended results XXXX. financial today, quarter for June Earlier the available release Web copy press A of is site. on company's the

expectations events, management pursuant and within in and in for the Before remind of the These federal this would Private cause regulatory I which meaning Safe this results, that not will are approvals, for Act implied Harbor and forward-looking operating assumptions. examination laws, reliance that and/or margins, upon anticipated risks guidance of or of potential Accordingly, made call organization, statements performance we our without predictions during statements XXXX. call in the that Reform make by contained or including, forward-looking growth like material or relate current include future various statements. securities statements these Litigation to statements. on differ opportunity commercial products, include undue those materially and should our begin, reimbursement, Securities of you you our of forward-looking to results for provisions and statements are based future expenses to or are statements. statements, the All actual estimates from involve our and revenue, expectations to could place Any operating forward-looking expectations XXXX gross these which trends, financial are limitation, that uncertainties events expectations,

XX-Q only I'll turn future or revise Chief by the accurate over disclaims or forward-looking call the With uncertainties and information to with that, to update Risk broadcast our Waleed May X, except contains new or the any on quarterly on a Officer. time-sensitive projections of and whether to or now Hassanein, description For TransMedics risks that filed as Securities information, obligation, XXXX. business, statements, is of our Factors today, list and any August with refer required as the XXXX. President please This of intention otherwise. Commission the Form events, conference law, associated Exchange live because X, financial call of section and report Executive

Waleed Hassanein

Thank Brian. earnings quarter and XXXX Good welcome you, afternoon to second call. TransMedics everyone

me today Chief As our Financial always, Officer. Stephen is Gordon, joining

much briefly XQ results, with million was have balance greatly enabled to arrangement our and let OrbiMed, $XX previous discussing new with Before debt earlier me very CIBC flexibility. to come. facility, OrbiMed establishing CIBC in closing, a partnership first financial which successful funded financing fully with strengthen further today. and look provide partnership highlight Banking, the agreement was debt sheet years us The announced which our forward upon we We retire to appreciate to our the Innovation with

accelerated unequivocal our execution post approvals momentum Now three to for second XQ results. with markets. OCS our let statement technology me shift quarter, growth Through FDA TransMedics and of large results potential commercial delivering on an transplant the exciting our commercial our

OCS main XQ in as for our States. in the growth importance underscores NOP, business driver performance Program, National our the or Importantly, the United of the

results. the summarize me Let

quarter, XXXX. XQ and XXXX, sequential of post revenue XX% net Net million, year-over-year revenue. growth was approximately a growth we for sequential period QX growth third the XXX% record from For same the representing QX over XX.X in

approximately XXXX. Importantly, U.S. total accounted XX% over growth or revenue same for represents XX.X centers. foreseeable U.S. the We the of the NOP revenue million XX% XXX% will NOP expect 'XX. for the for remain organ the and This in his cover our driver call. attributed of Stephen the QX future. business split main that of came from from QX U.S. period fully section in details will our revenue

discuss in near potential. our confident trends and me long-term Now growth some make us let other that

is This led We were the liver organ markets. concept. quickly see to of operations markets. become for ability addressable quickly quickly have and three second build -- liver come also the to quarter, First, to NOP largest in our sequential accustomed our momentum across accustoms have three the indicative excited the of way scale that our centers

also heart National grow to despite normal Second, in transplant and than transplantation. remaining lung June the normal U.S. and reflected volumes pre-COVID slower continued reports its was in and a This phenomenon organs. across in the U.S. lung sequentially, below relatively rates overall U.S. slowdown OPTN

rebound As July is, also experienced. which and the we rates in

of foreseeable NOP that the U.S. our earlier, validating in portion do expectations revenues so continue Third, second a to drove as quarter, will and future. the will our we highlighted for it significant become

of As stated came U.S. our from revenue total XX% earlier, I had NOP.

liver On the heart was XX% NOP. was lung approximately XX% approximately per and XX% was NOP; basis, approximately organ NOP

X centers it Further, came organ category. have shows It important number to is from is that upon strategy growth touching for XX forward, commercial NOP of in transplant stocking move transplant given be transplant modest for we and will important I orders. for use to as percentage our XQ area of adding revenue revenue it of note NOP more of high the our heart reasons. new program. board, across critical U.S. as most of to programs. Notably, we NOP, opportunity see grow a and centers, the a growth and penetrate just or important to numbers. is growth terms continue results interesting to later. further programs This in the from more impressive contribution business linear our be one NOP that we greenfield our in expect actual cases the features especially of This we fairly that two is As makes high of not represented between significant each This growth, transplant a

OCS workflow. these programs programs. integral a us Second, is the continued huge that positioning This number who of transplant are deeper standpoint. of NOP part from penetration U.S. centers competitive within shows is to it initial becoming on many TransMedics operate their relying of transplant an

of we in to encouraged OCS in see conference Boston since of live results ISHLT XXXX were OCS April. presentation outcomes program's OCS were EXPAND This on the meeting. successful EXPAND COVID, results, very first and several the There TransMedics as public long-term very a focus the and clear had the we was Lastly, feature of NOP and first Lung meeting NOP concept. Heart, this and presentation DCD

we launch In several growth U.S. to next to took Importantly, doubling transplant using initiative positioned opportunity we achieve QX were the the we an lung trends years XXX% to and publicly over program. year-over-year five aspirational this encouraged in TransMedics and very TransMedics heart NOP numbers 'XX. through revenue believe have by all,

deliver momentum our to Now and on expectation let into strategies discuss me extend this to and our beyond. 'XX

infrastructure. will of number U.S. and especially surgical growing expanding launch include increasing clinical liver NOP the support coverage side, gain our the and of on expanding to is broader critical by in the geographical staff. points staff First, the our This number

need we our transportation and performance. to and financial and execution Importantly, logistical grow to network drive efficiency

expanding capacity. manufacturing our by production and Second,

cleanroom well our organ production by enabling to are tripling underway end, to across We us all significant platforms. OCS the three infrastructure meet year of use demand

our We shift. headcount production a second and are instituting also expanding

addition, buttress chain we're meet to risks. raw to the against continuing and In our growing mitigate material to demand supply inventory

transplant three number the Third, by organ active expanding NOP markets. program all in of

in impact the a three transplant from modest active We have number significant quarters. past seen programs the revenue U.S. over the on U.S. of

of into 'XX to methodically in and We and programs number NOP 'XX grow are beyond. the our throughout planning active U.S.

operationally generation to are organ This we invest technology Finally, critical OCS ourselves our and strongly our critical that distancing well is to view, to take long-term further potential growth believe in next next programs. we from is by competition. our the and steps. roadmap our any these forward In continuing and clear next prepared

the are challenges see increase that present of in growth rapid bumpiness OCS business. of may we the macro believe we trajectory, However, technology while in rapid early create environment some some we our in our stages for current and could demand level also

half For 'XX. 'XX. impact some on potential what cautious uncertainties clarity, us the us throughout let in reasons prudent that main negatively These provide for me expectations in second we as the and view are perspectives our being of may

XQ capacity our during our results chain demand finished First is scalability demand for global supply outpace goods technology. to continued meet the challenged the forecasted our and of the our growing inventory. issues plans production OCS to

mitigate team order doing that back some job concerned we rapidly continued of cautious, suppliers. unforeseen Our our one by issue raw because supply however, to or vendors has chain negatively operations are any to our of risks investment remain supply chain We increase and been impacted material from be the situation. phenomenal a may our

able The second scaling staff while recruit, time is functional we the in fully volume. case our time a rapidly NOP be train The to certify potential infrastructure. to the growing presents and be field to lag, are up clinical in

as field continuing to our standardize clinical instituting programs as United States. the are efforts initiatives for team, recruitment throughout the well We several our training

flights are charter the is to to important availability. for an conditions the seeing access the limit support global air as area the Third is transplant of and organ used coverage we maximize chartered U.S. This transport in availability

are vacations summer It half We second on strategies the and of of Thanksgiving Europe. impact States. month that summer and our 'XX this is potential. new of long-term norm the pursue expanding risk end will holidays to impact our actively minimize is year aggressively Fourth on the network international the volumes vacations August QX negatively impact transplant United impact slow is which transplant of the growth activities and in holidays, fairly also for in given a will our have may Christmas revenue.

transplant minimal trends. see We of COVID or impact liver COVID. heart and on Finally, no

for XX same for However, financial are million seriously, before, quarter. the between XQ solid will make prudent of year guidance and growth realities growing to our by above Based XXXX. and lung we call and period. sure stated let new results million, are turn that, million the that up HX results great 'XX to cover the potential COVID we the variants. With represents on to being guidance We growing with pains. any XX raising detail and headwinds, to we a we from as million or sequential XXX% take over the our very to the these reflecting the impacted disproportionately XX waves results quarter, be annual me for always to XX for wanted potential revenue Stephen This full XXX% second to the balancing

Stephen Gordon

I for some Thank other provide additional financial the you, quarter the will results quarter. now information on Waleed. detail and second

products and was from our quarter quarter or XXXX, is XXXX. $XX.X U.S., quarter net The the XXXX revenue again OCS a Liver, OCS revenue; X.X XX.X grew of on of sequentially the X.X of X.X the Heart Lung. those organ revenue million net increase organ million from In of currency of sequential million and XXX% X% XXXX. of an X.X over a OCS numbers the second OCS first for million growth of X.X the repeat was U.S., million the net basis. of last and I'll on increase This XXX% of Heart Outside million second grew quarter XX% from follows our Liver, breakdown listening; the was OCS Lung. quarter. U.S. of X.X is For of second of million of million. folks All OCS revenue as constant

of across of million, further OCS consideration in X.X The XXXX of continues from of organs, XXXX The the margin Lung. XXXX U.S. from QX commercial quarter key a XXXX of the QX is margin in and revenue revenue for quarter critical of included margin OCS reported However, result customer performance in the vehicle result Program sequential National of driver was was movement, currency particular of up Heart be million in XX% U.S. revenue. higher That's Gross was in down revenue to is unfavorable for our QX XX%. QX further X% mix in of sequentially OCS NOP-related XXXX. the utilization reduction taking commercial adoption the OCS the gross improvement fully from all revenue million The and into reported X.X second from of X.X higher gross and the in XX% and of down second the the

the the XXXX improve We we XX% were to was expect its in our across efficiency. growth of organs in allow and and significant increase of the and more program investment out expenses This as effort in Total to transplant QX in NOP QX million all operating access margin operating in in expenses and phase infrastructure regions. continued expenses. commercialization U.S. national a in move increase A by improve NOP gross resources future XXXX, cases XX.X to our early our over particular. represents all the us driven our again the regional

development to generation related primarily R&D in growth saw also next We OCS. our of

XXXX the million However, spending compared quarter quarter our sequentially to XXXX this as in of Operating XXXX. for to Weighted and shares. we June in of QX marketable at of XXXX. next million million outstanding million of lower Cash, net compared the XX.X QX quarter balance XX.XX XX, quarter XXXX first as which for second of the the million in gen to compared XXXX. was to a XX.X loss reduction in described X.X securities was equates due last from quarter, equivalents XX.X average loss the was to the shares second development of less X.X last R&D cash quarter. were quarter And of activity common million XX.X the quarter million were end XXXX,

of to new approximately call the I XXX% Finally, our financial guidance added to usually XXXX the existing and used a the term before new by returning was over as growth to mentioned this And our Bank. balance the reconfirm flexibility I Innovation million step range loan pay million as with to our to loan cash will took refinancing prior important with loan XX earlier, to is Waleed, XXX% increase revenue XX debt CIBC we additional off represents Waleed our OrbiMed with year. And in XXXX. A of new sheet. for an $XX new the XXXX July balance of loan of for a of provide fiscal do million portion in just the million $XX

Waleed I would comments. turn back to call for the Now, to like closing

Waleed Hassanein

transplant we're you, ability The and integrated Thank process summary, has unique pleased TransMedics In its our significant Stephen. streamline drive proved XQ clearly the growth. performance. transplant approach for to NOP very with centers

commercial on 'XX NOP to and past over new the launching initiatives rapidly quarters the leaves liver execute than ability scaling drive confident to continue beyond. us include demonstrated significant and to more growth hearts our ability and Our in two throughout ever to

the As continuing trajectory. we on on growth And early focused we stated we our we on before, for are build commercial are believe future. laser our still to fairly momentum

the are and the future excited TransMedics organ therapy. global global the call and Q&A. across turn in inspired position Operator? the to transform We transplant will I for as that, geographies we for our transplant of leading With continue to cement now operator

Operator

Instructions]. Thank you. [Operator

Our Bill first question of the with line Canaccord. Plovanic from comes

You proceed. may

Bill Plovanic

A of questions. Great. Thanks. Good evening. couple

second did this, experiencing have ask but range? First, [ph] said these I'm about which to second are of million XX contemplate down of half are the range Obligatory you half it to on year, the would first I or in in is XX in many the guidance. to first. to the The today, would How of you what's be potential headwinds your issues in half. concern? that XX.X XX, more or seeing that understand you a So just trying XX.X embedded

Waleed Hassanein

lot up rapid giving Bill. finished our by. guidance our in The growth you, Thank and have to ability continue we're is stand utilizing to inventory. really the in we The inventory a challenges goods guidance put beef of acceleration that

experiencing So something we're that today. is

able is today experiencing to same we're transport be in evening. ability cover air to that cases enough thing flights other finding charter our cases when the cover to The many many

more others The are cautionary.

NOP what and take the up to would understanding the cetera. the et scale training programs, and it dynamic Just understanding

So want be as thoughtful to to want it we we it estimates. see to be it But it we today. prudent, that's be we in our want cautious,

year. We as will to this we look will guidance, continue refine throughout at execute to continue to the guidance the continue we

Bill Plovanic

center for for kind Excellent. adopting the of seen. is success greatest comments Thanks. concentrated see One was regarding the the you technology? transplant what impediment And you've a then do your of

been centers the some adopt the this to in what's to impediment So of at getting point? other

Waleed Hassanein

an as see it don't impediment, I Bill.

conservative just They've that that We the is one number a wrap past broad transforming way know all it fairly process XX to And doing transplant party. into years. the with we NOP. time centers. for community group. by engaged been heads been here it a completely It's their more the managed of is have super around takes that We come third streamlined

own want the be we to time. want We for around get time to their takes on their them it. So NOP, head don't anything. that's we want it just wrap We to prudent. And really just to force are them to the where

not cost that cost NOP centers but that we're is really to addition This And outcomes being service the the understanding to part rush It's NOP, to acquisition. compared adopted careful to from we it organ proud be the And through direct growing we're seeing cost in convert product and we is the will of are of outcomes any of using number coming see have market acquisition it. that a bulk center, that major take things. impediments. NOP. the of the As have to time don't is to just the delivered

standard appropriate solid And that just that and the because transforming the doesn't happen things care for in 'XX. mature foundation laying Let not the we're knows pace, standard 'XX, 'XX care. everybody And of transforming we're of growth overnight.

this centers prudent to need around get and being why NOP So the very being is they allow their we're the we're careful concept. head to time

Bill Plovanic

And was, And was last then UNOS the given the the think And they oversees today. especially the the breakup Senate is I how real there article meeting. hearing committee post think finance in I UNOS an of had impacts you question OPTN? that Wednesday question

Waleed Hassanein

of growing something States. OCS that highest not we What of of has that solid XX last the interest months, broken managing we do and in as successfully transplant that new publicly I've federal is organ Bill, cases, have don't daily in DCD transplant. have number UNOS. construct in TransMedics history system. programs to like the and the accessing commenting up think legislative organ present donors, the United is are donors the I OCS any solution, mandates achieved NOP a transplant and two, to very case the this that is times, demonstrated up an significant to presents that extended the is represent anytime organ we of not volume more any quarter-over-quarter, we rate on going positive, on And to success DCD or into break pools, the by -- something of in the said soon. to month-over-month basis. antiquated for part Yes. the be federal in utilization numerous continue growing Number pointing UNOS to don't We're donor play structure that results argument the within pointing criteria and

complicated positive very a present. So present problem. this to that's what we We solution

We will something national sure don't another should and that too revamping as around discussions make we our these is our or into factored United it's federal voice that want UNOS about. States. structure, to the we operate the be and in structure, whether see we within any concerned that transplant But all data technology our and organ NOP our system

Bill Plovanic

taking for Thanks my questions.

Operator

Thank you.

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

Your open. line now is

Calvin Chu

is on This taking me. Thanks. for Two Cecilia. Calvin from questions. for Thanks the

the within First, I more wanted traction on to NOP. ask heart

So hear. and is stepping which it up like positive XX%, update sounds a heart mix about to from very op XX% to

So been do the just curious, learnings have what or ramping that as has XXXX? surgeons cardiothoracic adopting exiting towards I'm just OCS? you've trending But of some up also you where for level worked, been what these see education

Waleed Hassanein

to focus than continues is That and by see managing other well. the organs trained of deliver number the to organ working And heart Where to question. many, be Bill's Thank leave organ team. own up we and earlier be make many is showing very we very said learning become We that team. outcome. going data. the that's of that the to the it of convince the two the Without the very these organs with managing very is outcomes these that their them the people take if better What's better staff. to trend hard this their than organ I that's match been if We is it's to team are surgical that on we them, to biggest to to -- laser by that the our ones cardiothoracic management for focus But organs control for We The understand And institution's We're you, a takes. is decades. organs. the will focused an the lead convince on mindset us, learning? them our to -- lead difficult quality them. time that, know it's clinical to do biggest what sure for Calvin. we They've Up. grow trend? managed going or managing for

Calvin Chu

Got it. Great.

on ramping Second kind of is question of really account.

And backs contemplate or So your I wondering with into taking And them centers talk is as how a comfortable? little NOP, gets what process really initial so and discussions could just acquisition around currently? long if bit you've also seen cost what's guidance associated Thanks much. was really, timing push you for the more process navigating this it? this baked account new ultimately about

Waleed Hassanein

you, Thank Calvin.

is two As up things we sure they to I of frankly to implement. new works, key spend it stated time make it is our all a earlier, on sign to center easy the how that how NOP understand

it's a acquisition is much involved that get listen, cost it going revenue portion, they center. into is their sure always process portion, is That's workflow, to different, that just that we're is understand in much organ earlier, decision not really they not accept or our part and is two service Number around So the technology guidance workflow, we to the double in is the control have over this I XXXX. but baked penny it. know just as will of make and the How to -- organ. every stated clinical head the decline different that really the to the that that

quarter they not wave the partner disappear. need just to of centers 'XX long-term growth one 'XX. focus convert they the and case need to into and want be establish of time have a foundation these need we patient, be to the -- a we -- centers 'XX. is establish rest and the year, give shifted then for to that time converted very And 'XX Our the We and we've to already, a next this for like for centers solid the ones right now to

guidance. when technology say our somewhere centers the throughout that XX the a center of to XX what's ordered end use our it's not fully to minimum that into And is XX expectation quarter. baked it So to will baked in XX our that guidance XX organ. original we twice I between And is month per that, year center once. XX It's the per with

So in that number is away to end And that, compared -- our And from these baked or far is we're some the numbers. at that's what's organs still year goal others. to guidance. into the

Calvin Chu

clear. very much. Thanks it, Got so

Operator

Thank you.

comes Our Jennings Cowen. next question from of the with Josh line

Your now open. line is

Josh Jennings

there's the not business that a prudent you're your of a quarter. evening. your as have that Good supply come gentlemen. you ask wanted to question, and current Hi. half strong a -- wanted growth you may on constraints just not also I infrastructure Congratulations shared but But NOP limitation outlook constraint does for your top you're make Thanks, just the that some clear another that implying million of the just the for where about another year? initially the of ramping capacity the some that observations of isn't not guidance sure ceiling on I guidance, and apologize, XXXX, conditions. for it's end that to the a prudent imply back I was there's guidance market in XX

Waleed Hassanein

Josh. correct, exactly That's

to be demand that forecast Bill, to or are a is far inadvertently of our our ramping definitive said impact in to I any now to original As we're the not number up and that. for are any may in negative not disruption not other growth outpacing to experiencing reiterate absolute the sure than That's we and aware headwind any we 'XX. prudent, ability that prudent up negatively situation or all very want as or be we that we're to that, focus want Again, growing, that stand Because laser our know. scaling I I and by the in take and 'XX. It's is And I is because be to I 'XX. of situation we're ceiling XX any want cautious seriously. be right we causing want conservative, same that make guidance be issues not I again, forecast. updated to able

centers being very why time very that's we the make sure that they So solid XXXX. giving foundation the we're and the deliberate need have cautious to exiting and

Josh Jennings

my network Excellent. And follow on That's to reform HHS but clear. you. by just volumes. transplant CMS, also the Thank to the up just drive U.S. grow

was great not after of data in in there adopting a one-off. anecdotal indication Are high share point XQ of of terms volume that can Arizona any growth and they've that like that seems seen in type centers liver that's cases in It shared terms for Arizona their just growth? volume any transplant occurring I you transplant the organ NOP. where is there a think other Thanks taking questions.

Waleed Hassanein

Josh. you, Thank

of and DCD the that on transplants of certain we and using I discussed liver extensive I of see number we primarily first think the by individual the use and of in year, centers, in will overall livers what hearts driven based DCD OCS the program. NOP increase 'XX think will heart 'XX, an rather over Based almost are the reiterate half than I naming see, I've publicly before. on results we what

at whether is definitely and year data the but we the the all-time So the that this Arizona, just United NOP liver of DCD have. dependent accessing one Mayo States the several half large more utilization data they're becoming NOP high on there's and are OCS that DBD than workflow volume distance the integrating at transplant looking programs growing by there significant donors, the throughout is but DCD, NOP a into in or first also

Josh Jennings

Great. Thank you.

Operator

you. Thank

next Our comes of line the from question Oppenheimer. Suraj Kalia with

line Your now is open.

Suraj Kalia

all me Can you Stephen. right? Waleed, afternoon, Good hear

Waleed Hassanein

just you We fine, Suraj. can hear

Suraj Kalia

Congrats quarter. on a Perfect. gentlemen nice

So, Waleed, two questions.

were number of doing Waleed, jump use multipart Stephen sites utilization What NOP? one us to organ for organ how guideposts some sites many just would could can give so another? The utilizing question. the one, predispose triangulate first each not a organs maybe we And somehow and multiple the in one aspect? on NOP in, and just that

Waleed Hassanein

Sure.

center XX the in within programs. their out center NOP total across organs. are least that out use them logistics, The XX again on example, up is of of So one been approximately for lung majority to of the three have if QX, on get its What OCS, in recruit feet. transplant at a we were three three additional multiple the programs the four that we are to sometimes them total of taking centers months precludes used transplant program two lung multi-program Suraj, surgeons back inherent heart, working three there not all that it's with

sometimes things end, that's confident them. by we'll are more NOP. we initiatives on center -- able we're adopt more to of get to year But So able we're just It's delaying with will out and that working to that control. the be be own that our

question that's number So one.

XX using we're that's to going the want a we're practice And NOP The transplant now 'XX their second to category after, over number OCS but of XX between part, previously, next drive that we the anywhere converted same volume macro and to which programs to of XX XX those next routine as XX% XX the XX is two of what between and programs over discussed market. of quarter. after is organ the exit throughout the that XX regularly we of the months. centers years, Right part in transplant number each

Stephen Gordon

somewhere it at heart heart, have COVID talked of And we high historically. of low kind look middle. lot XX. the with I is market end a dealt is X I would and of is And in lung, is centers Yes. the think The we we what which on on the a is we lot the challenged Suraj, organ, because by end with heart to say the centers, liver about

should without sense of a specific, So at. we're that where being you give

Suraj Kalia

additional Waleed, question. And enough. one just Fair

Waleed, taking and dobutamine again contrast to OUS, shortages Presumably love really for my OUS, we color if key is just compare you, love but a we you an additional would the I'd So there's just but tell dopamine. the Waleed, -- driver could? huge on OUS, any of when thank U.S., did what impact get not -- look NOP and obviously, contrast the there? Gentlemen, questions. hear not in it, kind and the you for at And having it and compare in mentioned I congrats you and of us obviously, that's TAM you market take

Waleed Hassanein

Thank you, Suraj.

two OUS impediment. markets. That I between as the implementing in a national are biggest it macro comes One, their to is lack reimbursement difference think NOP huge U.S. things. OUS and of

second it The than the some regulations transplant. organ regulations different are of European when U.S. very very, is to comes

medical charter For to example, in member be any transplant to Italy, the organ the any it center flight other illegal is in a that program. back accompanying donor of

that like make rules outside esoteric U.S. of difficult the Some could NOP

is difference it's in funded positive experiences model the managed have the in volume their with we The Netherlands heart in devices only Netherlands. three to the the great. replicating that However, grown heart Netherlands transplant trained of year the establish, nearly where last the worked by by XX% Healthcare them with NOP in the three Netherlands. NOP in with Netherlands fully National NOP Authorities we the the and doing equivalent they're they've covered And entire using OCS and transplant team programs

there's in dealing to call, try our it the previous the explore my NHSBT in from implement TransMedics to stated time. an Again, with for NOP expanse the I in takes UK interest replicating UK. a long NOP NHSBT from to As the

working have growth reimbursements We're national until to closely hybrid in we're is And we the and also OUS drive to will models NOP these pursuing So in Italy. pursue But initiatives are that achieved. Germany this. planted continue to with them. continue we

Operator

Thank you.

question comes from JPMorgan. of line Our Allen Gong next with the

line Your now is open.

Allen Gong

quarter. Thanks. Congrats on the great

in of then the are flattish a of a up that But and challenges. the bit guidance, third of again you've representing should guidance, or into of macro in is quarter little all to amount touch maybe bit cadence bit of the it guidance challenge fourth can a there's just quarter to presenting about but we third of healthy being kind different your essentially a we agree a think conservatism given from think trends, the with growth guess quarter, quarter? step then put think continuing in we really quarter? quarter prudent second which highlighted third Does a of really fourth put summer a softer how challenge I to and I Sorry on fourth range should a quarter like way, middle of a and assume holidays

Stephen Gordon

in think it rebound Stephen. This Allen. Waleed mentioned July. is would saw of we Hi, flattish as a I trend.

QX least think we flattish So have that over of I so as indication it some at QX. July would and decent, was

Waleed Hassanein

more as that quarter-over-quarter. Again, one flat it realistic us, agree. if of don't and I down impact hope -- things be Yes, prudent we want We just it to a trend. these see a expect we of can. as will we we don't -- be But we

Allen Gong

you expecting got investments the time even we being operating should it. of sense all probably at makes to end you're forecasts momentum, Thanks a think year think have to about doing into sense. higher maybe the growth. XX% of at growth? a we getting XX%? little guide where But think was then came Since And commercially. makes I so that which about than to the much that on think than you think that, expense as our fourth being even Should the from investing were higher you we momentum that how last we a XX% in I I and XX% Got last lot. quarter, higher given to bit quarter least own pointed expense or relative you're in the

Stephen Gordon

question, plan growth the did little good getting because That's Allen. supporting than Thanks, a bit higher to of seeing see we're due a it. that of we and spending ahead really

up the of growth think third take talked of call, to expense a about bit. need at I at rate a little last We I that the revenue. probably about

maybe to a next at So few least third XX% for like from the quarters.

Operator

time. you. There waiting additional at Thank no this questions are

the pass team management the over remarks. for I'll to additional conference So

Waleed Hassanein

much a very to be time looking Have call. for all this next forward great to the in evening. taking call. you the Thank We're

Operator

earnings Thank the for quarter conference TransMedics participation. That concludes your second XXXX you call.

your disconnect now may line. You

TransMedics (TMDX) 2 Aug 222022 Q2 Earnings call transcript