Earnings call transcript Q4 2022

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Operator

Good afternoon, and welcome to the TransMedics Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Brian Johnston from Gilmartin Group. ahead. go Please

Brian Johnston

website. today, and Earlier copy financial for the results the Thank year TransMedics ended quarter company’s on available full release A December the press you. is released XX, of XXXX.

management Before we begin, include the statements would securities like forward-looking during statements this including portion meaning will of laws. you call, federal to during question-and-answer make remind I that that within the

are forward-looking results potential statements. operating to Any forward-looking statements our our expectations upon relate and estimates or expectations, assumptions. organization contained products which our revenue, performance future of financial and/or various trends, in for that without guidance are in including, or XXXX growth for events, All expectations of for operating statements, based and limitation, and commercial and future this predictions examination gross current include call our margins, expectations are opportunity in the expenses

uncertainties events by from cause material reliance involve could actual that on statements statements. these forward-looking these anticipated or results not those you statements. Accordingly, risks place These should undue differ materially or and to implied

these and regarding with Securities Risk and XX-Q at available and our at Commission under Commission, on Securities website the X, with information on filings www.transmedics.com. our Additional and Form uncertainties Factors filed November on are which Exchange our the risks subsequent XXXX, appears heading Exchange the www.sec.gov and

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

Officer. call now turn over Chief President Waleed with and to And I’ll Hassanein, the that, Executive

Waleed Hassanein

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

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

the increase finished quarter we adoption capacity. our goods of the to fourth module, are of another despite business. OCS for quarter as perfusion commercial clinical momentum accelerated significant This through marks demonstrated and constrained working performance continued growth Our NOP, supply assembly sales

the XXX% year-over-year growth, total of summary was third Here growth $XX.X quarter results. revenue XXXX. are XQ and XX% the over approximately million representing

continued NOP growth be to driver the expect trend for continue revenue for at future. we the foreseeable expected, As primary to the

financial was for over the split revenue new $X.X XXX% million, full in including this effectively revenue adjustment Total tripled favorable organ revenue his year in of the and XXXX cover XQ. represent and results contour $XX.X million and XXXX. service These products year-over-year in revenue details Stephen million and section XXX% XXXX of respectively. growth our We $XX.X will call.

provide the Now, a and NOP. let the and granular case represented high on some for XQ full volume me for watermark more year. Overall, OCS highlights quarter

XX% approximately of case volume XX% were the from from modest heart activities XX% heart approximately Approximately pleased were see a XX% organ in the of to lung for XXXX. maintain lung per consecutive liver NOP. QX, the As of quarter, liver, a approximately came we to the basis, encouraging NOP. On our and of and cases of which also trend in growth U.S. total increased fourth cases sequentially but hope we

XXXX the demonstrated in marketplace. TransMedics is us uniquely is here differentiating has to stay that and to NOP

next of care NOP organ the several is new the goal Our be to to the U.S. in years. drive standard over transplant for solid

and modest first and saw market the of year the OCS, overall As launch in we transplant volume predicted the heart liver commercial U.S., despite of growth being in overall year-over-year. transplant

extended criteria the are encouraging the transplant the early grew the and sign and the DCD, transplant is approximately by in overall by distant in of approximately X%, enabling X% this through We lung OCS believe up U.S. and X%. Heart were donor use U.S. even XXXX NOP over grew approximately volumes that in transplant Liver use XXXX. in growth of an

Simply market. stated transplant are growing OCS the and fundamentally the NOP

trend continue XQ and will to XXXX increase mass growth see of transplant with to NOP. using growth critical expect over rates ended to time program three these annual and in we track OCS We all this organs. We with NOP

There used were NOP of XX users. active were that OCS liver there and programs in QX, XX which,

XX programs For repeat and there active used OCS heart, five were In of that which there users. were OCS users. and XX NOP, lung, NOP, of used XX which, were that were programs

being It is for important the we weeks several during situation in a to constraint despite achieved above supply note have results XQ.

U.S. meet across early distribution have to the flight. these to demand chain continue the case in primary any location difficult our driver were margin inefficiency this able capacity production and the meet we NOP OCS the grow modules demand This meet the OCS, our to of by service up leveraging was we build charter supply using demand. grow hub As to the our volume, situation, for navigate network to the to absorb to the erosion, TransMedics XQ revenue growing since to costs supply

leverage expect a We transient and once logistical that production will we and develop to this the capacity process. revert on more our phenomenon scale be this

several expecting certification Let clean by decision to coming or over documentation FDA us taken months. expanded already over to overcome for enable review space. the that me this We’ve FDA use are FDA is to opportunity we the room the several coming certification production under constraints our the update actions months. you in and capacity we’ve The

further stages qualifying expand our are sterilization and in to larger final chain. of partner sterilization and existing a capacity We expanding our supply capacity total the de-risk are

We staffed fully assembly second have shift that now is a operational.

at of to Operations of we served Senior Vice Importantly, we’ve Supply to continue scale. President Corcoran, in brought our roles Chain have Nick and responsibilities on lead as as initiatives these multiple Stryker Corporation increasing who

for resolve we production runway is constraints that of the value There’s however, significant for long our proposition capacity TransMedics and NOP We a XXXX. potential TransMedics in business growth beginning was and we business. this transformative growth just for second the doubt a States. expect the strongly XXXX as significant summary, sustained to OCS United of believe, that mind In the half by demonstrated in of no year

growth our Let articulate to me strategies achieve potential. our

capacity, as as areas adequately we focus we our and transplant production enhance four First, starting franchise U.S. in soon XXXX to grow in further. will

Specifically, we new for to the lung. initiative transplant heart the programs and NOP add U.S. will liver, to in continue

criteria penetration at Focus We donors with and OCS an will existing drive distance of clinical transplant using from transplant overall on volumes growing these the new DCD at deeper programs NOP based programs. the and standard efficiency demonstrated these outcomes the programs infrastructure. extended and cases on

OCS contribute lung program the to in U.S. growth. the reinvigorating additional Finally, the through NOP

our will continue we infrastructure. NOP to Second, expand

the new launch points maybe clinical geographical our to expanding opening across as board and support are needed reach we in Specifically, our U.S. capabilities surgical and staff expand the

the developing United Third, and air we best-in-class transplantation organ are a for network logistics States. dedicated ground in

critical. is This

Let repeat, and managing to growth this costs and me margins. potential our controlling critical service our improving is transportation our

initiative catalyst NOP strongly for the further would U.S. believe in this create growing we that a the franchise significant Importantly,

create the Importantly, wider United positioning of larger, uniquely more standard fully care us offering, more and in it will a the NOP transform deeper to around our while States.

from programs. continuing by the our Finally, importantly, growth, on to OCS is distance organ next-gen further our to long-term and horizon. potential ourself competitors any This invest to critical in next

facts heart we only approximately X% X,XXX important we This growth of conclude sharing XXXX. be transplants liver, on. the heart in that and me transplant believe planning the existing represents on for the some that potential to U.S. volumes the lion In to Let NOP transplants. cases OCS. front are section transplanted help of and capitalize total have magnitude to TransMedics lung are of by U.S. strongly to perform the liver, this in quantify fully existing and of the XXXX, We creating we infrastructure able share lung

and new looking seldomly are on successes volumes we historical our forward use humbled to TransMedics market in we we total grow of to XXXX organ the – for methods. transplantation. U.S. our due effectively build In and demonstrated beyond. thrilled early to from heights on extended in catapult for utilized continuing in criteria transplantation of grow that expect opportunity This this donors by we and solid TransMedics addition, in procurement our addressable XXXX. to the XXXX to all, benefit to distant by and In and enabling foundation are And we're ability overall preservation is the will organs have DCD, also standard to limitations transplant criteria as from the were

plans in We are we drive and TransMedics our the our confident for gear growth strategy to next and of of on focused are execution laser NOP.

our capacity. As goods demand mentioned, XQ plans continue forecasted and to results finished outpace our challenge production

probably As continuing finished us the end foresee this with a be in which until of supply of temporary shortage QX, impacted today, immediate term. of OCS by may we products stand we issue

$XXX are we and $XXX results XXXX. for revenue on and in That expected our contra to setting full find up XX% During revenue in be year in total XX% our finished ourselves reversal. and may in these annual XXXX full XQ excluding pressures year process, or between this with another QX XXXX results guidance ramp million based goods XXXX, said, QX strong revenue, a the back order over HX revenue balancing representing growth million situation we to

to let that, turn results to Stephen me over for With the the call cover quarter. the detailed financial

Stephen Gordon

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

was million last and XX.X million. increase over on revenue from XX.X XXXX of The increase U.S. of This quarter XXX% increased the XX% was revenue XX quarter. liver, sequentially quarter. total fourth organ the XXXX, from an XXX% and million fourth and X.X revenue million. For of the sequential U.S. last breakdown the of of U.S., of quarter XX.X In is from our fourth the heart, from lung. revenue of XXXX, was quarter XX% million

of And dollars. revenue of X% Ex-U.S. heart, revenue ex-U.S. liver. a decline million currency, lung revenue U.S. million, X.X X.X million But of grew X.X X.X XXXX and in million in non-U.S. of X%. constant QX was from the was

organ breakout revenue of are the service includes and the surgical product quarter. management we for the amounts charge also revenue the and We of part reporting service NOP. procurement added The as this

was and In XX.X X.X QX, revenue product million, million. revenue was service

the NOP in of service mentioned of QX service and This component XXXX, the early revenue on on was was the service XX% from higher The XX% XX% was in fourth in the product the in XX% QX. total margin that Gross Waleed his XXXX. QX down So in was portion inefficiencies and XX%. margin quarter about and the reflects the of remarks. fourth was for margin XXXX quarter XXXX

for XX.X XX% our primarily our be scaling able XXXX Total growth above the QX were resources to and infrastructure by It’s quarter NOP investment. in million. That’s meet driven demand. of operating NOP continued expenses to

XX.X to X.X in for result fourth to And our business. of in loss million XXXX loss of XX.X the XXXX. in million million fourth the net million the of XXXX, revenues fourth the of in was fourth quarter X.X operating quarter compared was quarter XXXX of Our the primarily quarter compared growing the

as shares XXXX. for of to From to was TransMedics weighted which NOP December and the quarter cash of were XXXX, field. XX the from XXX.X QX Total and of utilization X.X the outstanding strategy And million a very average the balance common transplant remains in of strong XX, OCS perspective, a million equates execute position end a at throughout organ our to increase continue million. reduction cash

year let fiscal results. me full Now share the some on detail XXXX

total million For $X.X year, million QX. XX.X the of XX.X X.X million year, for was in increase was heart breakdown of year prior a full favorable revenue OUS of revenue lung was and XXX% of X.X X.X and of and X liver, the million liver. reversal of XX.X U.S. the million lung of over and million organ million, heart, full contra million included the

for Product year margin in full Gross And of the as for for XXXX was was total XX.X million. margin XX% year the million same was year product full was million, full was XXXX. XX.X XX% service expenses were XXXX, XX.X up million XX.X revenue in revenue year XX%, XXXX. that’s the from service and margin for operating and and the XX% the

was XXXX. million strength Operating a net XX.X significant commercial for demonstrated general. in of we XX.X – XX the compared year to Overall, loss year XXXX. as for loss was full OCS, million in TransMedics million XXXX in NOP million XX.X the And was in XXXX and to TransMedics XX.X million the XXXX compared

and of favorable OCS or next Waleed the As we XXXX to XXX providing earlier annual to which adoption over guidance years. and reversal are XX%, the we XX% are XX% very range repeat about in the XXXX. million to to in comment, Waleed revenue grow discussed, enthusiastic represents XXX million, contra in our opportunities several To XX% NOP excluding

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

Waleed Hassanein

organ however, exceptional delivering the in a and U.S. was our period for for strongly TransMedics, Thank we in you, that growth. general a believe, Stephen. We sustained of To transformative summarize, business early stage XXX% are year revenue transplantation the XXXX growth long in

laser TransMedics and our lead now our forward positioned We global to OCS achieve capacity production With is infrastructure our look are scaling clinical furthering XXXX. goals. the focused to uniquely into transplant to space and NOP logistics on the future. and NOP, impact in We

will I now to the Q&A. Operator? operator that, With for call the turn

Operator

[Operator JPMorgan. go is Please Instructions] ahead. Allen Our question Gong first with from

Unidentified Analyst

Hi, could for taking on in addition talk what Alan. a for center Thanks specifically to the assumes off this quarter. XXXX to start this and is actually was I [ph] new just on Rohan guidance penetration congrats by wanted ads hoping about range more you question rates? organ nice with and and

Waleed Hassanein

guidance? XXXX mean You

Unidentified Analyst

Yes.

Waleed Hassanein

year, center soon. not and provide We on guidance provide for change never that anytime or revenue total We the to planning we’re organ. Yes. guidance

Unidentified Analyst

question. guess demand Okay. the out give that I you through as you in quarter? And already? to situation that most stands able kind XXXX, the the and more given fourth today, if meet Would of next durability the could of of way then performance we’re on drove be And also the to I just comment quarter your first additional color demand on to over during ability it supply guess specifically shifting

Waleed Hassanein

On the the really innings in in QX. early even that the demand demand, believe was XXXX, we in

We demand scaling space, footprint beyond. that why This supply leadership, and continue focusing production We are grow to we expect we’re is throughout expanding why capacity. And our to new XXXX is adding of this our create demand on be allow to to one us to that demand. and to thing. not meet ready be because infrastructure second adding to to growing continue we do need expect that done shift the a

grow. until capacity, we and to of order We because expect and situation guidance to our conservative back have be create. have to what be the continue supply out estimation to know And we we’re our this could that in prudent we

I hope your I So addressed question.

Unidentified Analyst

not just mentioned wanted Yes, that to the something, clarify resolve I’m was helpful. of you to just year, I mistaken believe by production this hope guess you capacity And half I second if that to.

Okay, great. Thank you.

Waleed Hassanein

correct. That’s

Stephen Gordon

That’s correct.

Waleed Hassanein

you. Thank

Operator

question Please Furlong The with next go from Stanley. Cecilia Morgan ahead. is

Cecilia Furlong

up dynamics Good follow XQ, thank taking talked I if wanted Hi, questions. to afternoon a for Waleed, supply there’s bit on pressure you in I the great. and about and bit know of you a the don’t XXXX line few first run think to the we from we impact supply, as the relative about ahead how standpoint, think scaling of quantify top about upside should way but rate? a to the the quarters of XQ

Waleed Hassanein

with demand demand ability we modest Cecilia, continue expect because our to continue This outstripping to our be QX would to we we to ourselves, it. and methodical the again, grow expect our growth plan either or because approach we and the flat perspective, guidance. advise this capacity experiencing shift. we’re are our to to is beat expect that increased second taking why the conservative find highly outstrip we from QX would to to and I

Cecilia Furlong

model, just can you we Stephen side, you’ve OpEx if in think through the as you Okay, in out story? the about standpoint, the progression think margin, just margin thinking we understood. with on and XX in scale, from just the how you at your about XXXX side, in the to think how I on logistics talked ramp to SG&A expansion too And should mid-XXs a relative about continuing could an the build as you’re about initiative or XXXX how NOP follow an I think And gross know from that XXXX? should about up, talk basis about coupled ramp

Stephen Gordon

good margin. Cecilia. thanks, And – you’re about a question Yes, it’s

do revenue. continue was supply and to because XXXX. revenue The be overall line. with provide constraints goal, goal limited maybe similar top margin on until more costs expect in sequential us would I had the see the other to we of grow slight margins and to improvement completely allowed year. going of the to that don’t able in That’s the supply the throughout that mature the QX challenged So, I XXXX we’re in – mid-XXs, out

I just do overall spending, R&D modeling single to would the spending model as think grow on XX% range far purposes, of OpEx XXXX. XX% for As and a to of in in SG&A. rest about would expect we I digit

Cecilia Furlong

Great, the congrats and questions thank you on quarter. taking for the

Waleed Hassanein

Cecilia. you, Thank

Operator

next with Josh The Please question ahead. Jennings from Cowen. is go

Josh Jennings

I the standard buckets and good organs lead Thanks questions taking on called DBD, then good see out and that was I’ll for – distant just the Hey, to extended you of guess afternoon. criteria, three finish year. strong – about, echo donor I ask we’ll to organs. call DCD it’s the the the hoping

because the think earlier widely year OCS just were or OCS maybe comments just And you’ve it’s the versus early I through earlier looking a in seems very kind today just public the mentioned be think buckets. some I us up like, volumes year of those seems XXXX. are DCD thinking in throughout commentary opportunity, national spread and build XXXX in but of very, the about it like that it in heavily the of at on towards database, the if could think terms some DCD weighted Just – organs opportunity are may you in step still each limited help

the you it. gist for long-winded the question, Sorry got of hope but

Waleed Hassanein

by you transplant market, the script absolutely, why This – thank to exactly question. is the Josh, I and the we’re we not growing for highlight organ. went Yes, that DCD through just overall

same DBD procurement criteria organ, all the three is and hospital But OCS In rate was being across look NOP. Extended fact, actually leading at across XX%. we’re the including used way. when than all DCD organ, organs distant transplants seeing is DBD you organs the less blended within using transplants, either

– of is the trying used that the to intended limit. across gamut or not the transplants. organ opposite I being is excuse to me, this highlight was segment actually So OCS

Josh Jennings

for that. becoming areas and the explaining Excellent. using match the One match serology the particularly donor two not just then time just more and to that And our surgeons OPOs the use may compromised system approach there’s tests. or testing talk centers organ, it be some heard and about rapid with enough then either recipient are the and those recently. serology Thanks to recovery running on OCS are other we donors was just you when putting

we centers, kind of to then approaches also just the adopters stacking would And how OPOs of the early matching and that procedures hear by in rapid transplant organ are see NOP and buckets those where recovery as two then and organ liver XXXX. love well two transplant are contributing taking organ of a as XXXX growth for stacking kind and using Thanks the questions. you those in to

Waleed Hassanein

Josh. you, Thank

salvage early is their and in more active and very innings. both. and of deployment they’re more and on colleagues an organ, users, We’re the users becoming routine NOP Stacking it’s NOP users The other programs. to their early way it heavy process a rapid preaching in transplant of the to super

are think just the scratching surface. I we

mechanism is lost expect organs NOP these organs. we a traditionally this increase handful and This that another is We’ve that no routine supply just we salvage of been is procedures of would’ve because would of those standard XXXX organs or beginning. OCS no the how there can from throughout done a that

We this grow. to expect

just encouraging that, the and OPOs organs. service. us we but laser coming with just sure maintaining this them all clinical to again, making and we’re and focus to We’re allocate these highest out And quality seeing organs progressing the and OPOs more NOP more for of managing delivering growing with expanding evaluating help near are methodically to not major to to creating hubs coming us, us on

Josh Jennings

Thanks for it. those Appreciate answers.

Waleed Hassanein

Josh. Thanks,

Operator

Plovanic is Please The with next ahead. Canaccord. from Bill go question

Bill Plovanic

fourth lost, limitation the follow-ups just at we have of do you’re the your Great. I on did cases supply the that. is of – is have how how on one. in Thanks. on you on account of users question impact the adoption? much account accounts some active Good kind in. And new much you quarter, this look adoption number two impact think new evening. then Number How many or My first

Waleed Hassanein

Bill. Thank Great. you,

me I think second question. let of part the the start with

new initiation impacted it Of course, program. of

these an You it couldn’t we hubs What do open dialogue it, that – selective we to we were sure mobilized but make why would we we do earth and and – that go could expressed, heaven have highly organs. maintained and supply get NOP when however, sometime. we

is So until any it we had grow – QX. reaction. untoward expect constraint, making out of we at that. And expectation have causing continue to this users course, of not we’re And sure and we’ve already appropriately ability to to this great team impacted getting our active negatively forecasted managing we’re happen. in supply But our

really number we X the X we as The I the QX, In and And shortage think approximately magnitude both had impacted weeks. never liver of first shortage. we quantified had other not to of heart. or of perform that one, X.X know, And you weeks in X than weeks we it cases. QX, could

is is So longer no we’re towards this – hopefully a marching time not where issue. an

Bill Plovanic

Great. understanding could where And from I it, from There there’s people. a points. was kind problem dig one human standpoint, enough manufacturing you so the my have of then if didn’t multiple into

the second that You the said incremental which end the questions. the you end can first of my shift. with comes what expect capacity. Board, capacity Thanks the revenue quarter you shift level of second on second the quarter added now support or incremental of taking for by think for you I until Kind

Waleed Hassanein

the to first we incremental second. the Bill. year. you, half I of the Thank specific the in start or wasn’t coming said, end second online expect of I the of capacity end

number Number on just trying providing and we So the event. now, to one. granular right existing potential, we maximize are because revenue not that’s manage the throughput two, information are

here. months we smooth the today. once efficiencies power with could everything significant have this layout finished that to finished, share else, Nick room process caution he whatever this the So we change run once at number I anything comes the to going this fire all online, think next in bringing because within numbers, and additional clean to to will increase he Once the new this point, not few a is have needs the

Bill Plovanic

Thank Great. you.

Operator

go is with question Please Suraj from ahead. Kalia Oppenheimer. next The

Suraj Kalia

Waleed, hear all right? me you can

Waleed Hassanein

I just fine, you Suraj. hear can

Suraj Kalia

background the noise. Perfect. Pardon

foremost, So first and quarter. the to team. whole Tamer Congrats you exceptional Stephen, and

me the out for pricing active to NOP. increase on sites second total question is, that Do each NOP the flexibility Waleed, start So you time? mentioned over And versus part a of organ. the Great. sites, contracted know, with agency. a are is NOP I’d some to to how your there? other it long how what these for we facilitate of does and transport process to love perspective the let get so you process of have sites the work as But number them happens,

Waleed Hassanein

let I’m part. me was the first add you Suraj, question? the repeat the So address got of – part sorry, the the can part? I What second first

Suraj Kalia

So just XX, NOP are the of flexibility XX what right? We grams? pricing, today

Waleed Hassanein

yes. Yes,

Suraj Kalia

over couldn’t up charging. to XX we end statistics the the indicate time? that’s XX, current increase logistics Why what Because with it XX, providers

Waleed Hassanein

Right.

in that are strategy NOP NOP is we early sales utilization. listen, the of disposable always our a catalyst and been disposable Suraj, to nothing and So but growth has drive the

talk NOP fee actually end out cannot not having surgical a clinical the charge, portion management positive impact. when about charges. that impact, negative surgical procurement personnel we we a the plane This of front, the organ. any excluding up service NOP just the is and And in overprice So is this

a It Related to a jet, the we is to inefficient harmonized, referring not is it middle entities it a and component. standpoint. in they’re good from transplant think to own even nothing in worth flight right service of operator. broken not you’re the shape reevaluate. is transportation field. structure listen, individual the net contracts future, but single changes the that very another expecting with NOP don’t organ of high in or we significant are But are the cost this Many on now, from And country is individualized. those the transportation, night trying for a brokers brokers of in pricing a We I’m

issue if and we not laser what our way do network at for establishing worried bit want existing confident we it right existing of am one and this contract more creating to the the for in hope do at, be see am I scale am won’t do see. NOP. do. melt for the on to the I organ that we it contracts FedEx to field transformation us any focused Amazon or and about the will own the model we transplantation I we

Suraj Kalia

for two you, one Got One it. Last questions. Waleed, Stephen. for

So could all color and off right? on attention there terms was would you lungs, approximately you, to started focusing of additional have And their is million, specifically for any gangbusters guidance memory soon great. liver, this out FYXXXX, on be you, love now lungs. get Everyone me when Stephen, take if your Waleed, in gone for right. we shows How thoughts, obviously, $XX heart

Here we the product are, provide weeks. ended for did some couldn’t almost we two year or – with you have double guys last because the quarters

my questions. Gentlemen, what guide, the and for And congrats as thanks so FYXXXX understand ahead? year built us of taking help level is conservatism into numbers these the again, you’ll see

Waleed Hassanein

Stephen, first? the second half to address you want Great.

Stephen Gordon

don’t our first. answer question last commercialization. really would The it. was can say happy I first around of I’m to give think year to you though the conservatism specifics is, I year I thing

the to of was So and evolve. that in especially market there was really was pace market to how the the going going unknown evolve a lot

a So we lot we more have lot more information, now history. a have

won’t that put we so guidance. all with together And our

a talk the we So that ago. today I year more of I can’t really we about predict you can lot a but did to level have just conservatism, information tell

Waleed Hassanein

order I’m Suraj, add the customers, to We quarters back – conservatism revenue. is level of what level know Listen, two or our and we I the with lived on on said. also just our what want impact of through know have we situation. sorry, Stephen franchise build NOP

in supply out to are of be this half make conservative. of the least at extremely this prudent, we and conservative first year be careful, we to have We until have to constraint,

Remember, as But heart. it’s ramp curve know less than at NOP started last especially We year didn’t at NOP said, the year XX%. XXs, we the a not of we XXs. on at ended Stephen same high hard and level low

have now. better visibility we So

last several Now, impact question given the lung about to years, let lungs. has the we suffering your that huge the be for to Listen, cautious. have go been back me negative first from

we or activities that the have before the lung and full in U.S. is to on year seeing progress assume We numbers the efforts the some to take going start in tangible our uptake lung

this taking very have We seriously.

that. big is to That on we of is at focused heart long-term not every And activities the for looking We’re we lung not horizon. happen the patients Remember April. and guide [indiscernible] is for a usually guide year. until happening and end going This overnight. catalyst for

So until have to impact that we’re QX. not going probably

year – QX. impact need we’re full not the or for the guiding to So we in QX

addressing on we’re I’m and Friday. forward to your So looking I question your hope visit

Suraj Kalia

Thank you.

Operator

question-and-answer our I would to Hassanein conference session. concludes turn closing over back like to remarks. This any for Waleed the

Waleed Hassanein

you. We again call forward evening on we’re want everyone. looking on for Have to joining XXXX thank Thank XQ great Thank our you. and call. speaking us everybody this a to

Operator

The for conference Thank presentation. today’s attending concluded. now you is

You now disconnect. may

TransMedics (TMDX) 22 Feb 232022 Q4 Earnings call transcript