TMDX - Earnings call 4 2023 | TransMedics Group, Inc.

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Operator

Good afternoon, and welcome to the TransMedics Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Brian Johnston from the Gilmartin Group for a few introductory comments.

Brian Johnston

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

forward-looking are management results securities this without relate predictions the our Before statements. make forward-looking question-and-answer our upon assumptions. call based of potential XXXX revenue, include forward-looking statements begin, our I'd that examination commercial meaning expectations, and for to estimates to or statements include margins you and current we of of contained expectations in the expectations federal this gross like portion financial in that statements, or and products statements organization and limitation, Any beyond including, and/or expenses future including call, various operating and that for during performance within growth during laws. events, the are opportunity trends, expectations All for remind future guidance will which our in operating

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

the Additional Commission XXXX. XX-K and information risks appears Risk and uncertainties Form regarding on Factors on our filed under Securities these the XX, with heading Exchange February

are subsequent XX-Q at www.transmedics.com. and available which press www.sec.gov the at filings all forward-looking and release, statements our Our of Form earnings included in today's on website

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

now over Executive Hassanein, turn will and to I Chief Waleed call that, With Officer. President the

Waleed Hassanein

TransMedics' and Fourth Thank everyone, you Year welcome Call. Earnings much, afternoon, Full Quarter XXXX Brian. to and Good so

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

strong a months that first the solid note, Also, We fourth transplant X quarter the performance TransMedics watermark of for business. continued had TransMedics during operational growth. on high fourth quarter. services year the quarter foundation Our for we new very ended the laying was logistics full the represents a quarter a

Although is to the early continue of early footprint on We overcame I successfully to on early we TransMedics innings. the early logistics it -- every thrilled front is report our logistical its as successes am operational in services. although expand and team. executed challenges and

full sequential XXXX to representing me XQ Let the results growth year XX% summary for million, share for and and XQ Total a $XX.X XXXX. from of XQ from growth grew revenue our QX XXXX. XXX%

'XX, XXXX. For total million, representing the full year XXX% revenue over was $XXX.X growth

$X.X exceeded $X.X So was we delivered aspirational for up and XQ even in logistics the double first services years TransMedics million consecutive revenue year, revenue for of to in XQ. OCS our on year-over-year launch. commercial second aspirations from the million,

and NOP impact are bullish of to We We efficient to an on seamless, fully U.S. enable of deliver help today, potential across of to NOP services significant in know programs solution end-to-end positive the proud the integrated safe and full our services logistics confident on logistical success us platform. use transplant grow to the we Based operations. everything growing this extremely the are of quarter first TransMedics we expect TransMedics and

Simply a providing through stated, world-class a model. cost-efficient highly service

XXXX. today's section know XQ this XX% I 'XX. of was to XX% margin our for in XQ gross compared overall XX%, is from going gross The XXXX, full margin was presentation. year his down to Our XX% in Stephen detail in

our and still logistics remember early with opportunity to gross very services. want take I However, more in TransMedics ramp commercial give our you topic Please we perspectives my to on this of important this are margins. so

extremely are for we the XX operations. to in up the be not margin points several achieve today, on there gross revenues that our XX next that months know in are yet. of repeat, models over we both and to I confident fully are leverage more leverage reflected ramp able several points, our leverage everything will service scale There Based are product as we we

meantime, we we margin In projected, it the are that we early the our XX% exceeding thrilled business service a is faster just achieved beginning. our for Again, than gross had expectations.

in delivered achieved we profit XQ GAAP also We critical profitability quarter. operating first as our milestone

in This delivered as we of a $X.X future. operating critical near marks of step cash to the million flow million profit and in strive reach quarter. Specifically, profit we very $X the sustain positive net forward fourth and

a these possible only TransMedics Before like take to moving on, recognize that were work the entire hard of team. through moment to I'd exceptional results the

TransMedics. to Team Let message the me send

We are navigating operational commitment XXXX. and for business rapidly challenge every creativity our of grateful world-class effort your growing in in

to I now of we year another strong XXXX. Importantly, execution want up make for clear crystal that it are gearing in

what do with compared they line grew In Now provide all strategy, our important for 'XX. some organ let on 'XX on me volume our in move mean and markets my to to we our trends case business. across perspectives growth X

volume by case XXX%, and approximately tripling by by and OCS Our grew XX% case XX% grew Lung our almost approximately grew case approximately Liver volume OCS Heart from XXXX. our volume OCS

case transplants X,XXX forward approximately plan approximately compared transplanted XX,XXX U.S. annual to U.S. For U.S. volume XXXX. the full performing to report in goal OCS in the in as stated going OCS the year, our in benchmark we by of X,XXX transplants the We transplants have a 'XX. the towards

rate than NOP overall terms X organs. of predicted, all of In with represented as ended the across share we transplants NOP the lion's OCS in of XX% an We U.S. more year contribution, NOP the

efficiency and NOP transplant confident clinical United growth this of of grow transplant programs highest based volumes, organs by sustained States. efficiency the level overall solely operational is to and of across are success on care donor that cost the experienced We the

OCS Importantly, NOP XXXX using during achieved in upcoming the to several I analysis unequivocally conferences clinical NOP U.S. program to planning experienced of anything a stress outcomes clinical, present economic to want based better on on operational improved the The not Again, and the we centers are outcomes the and transplant key is transplant point. demonstrate data by else. success OCS in based

] In QX, new surgeons. trust bought clinical adding procurement NOP we specialists clinical XX staffing [ and by X the

share our U.S. the in impact OCS and national me on transplant of let volume Now the overall technology the NOP

the and modest market. our is step transplant For a mix, primary confident increased time donor OCS DBD OCS years, overall are and use NOP and in nearly and the in to in drivers X-plus ability donor grew This first great case both volumes OCS for services U.S. driven nationally liver on this XX% The number our volume were we by donors, that technology of NOP growth. transplant use Based to DCD overall annual heart as utilization. the prove from growth first U.S. national by of both as came the a transplant well the grow increase OCS

similar to this driven over hopefully, and 'XX in few seeing growth forward continuing OCS looking in by and NOP trend are We lung the next years.

national the approximately transplant share discuss in use national percentage market We let's volume Oregon of the the volume national the XX% of and each X% segment approximately U.S. volume the U.S. the in percent liver heart in the OCS lung share volume, transplant of ended representing approximately XX% nationally penetration of OCS with the Now share transplant case XX

growth to For have we clear share that go U.S. the evidence data grow anyone assuming our a be to who that way potential, our out these in crystal TransMedics to continue provided may long has maxed market on

in are fueled our to desperately the in This help ability be life-saving national procedure. also who U.S. overall to further will of patients the a transplant growth need by unique expand transplant volumes for

total XX,XXX OCS a U.S. we Our vision is the transplants the portion U.S. transplant would that and the market. number, market the by XX,XXX overall not this that reach time U.S. of addressable represent

a and me transplant review on discussion logistics early detailed more turn its in strategy to late our XXXX. let Now performance service

share small value This and I were OCS demand program. fragmented significant learned go of want huge repeat, of very have one, local transplant. an highlighting distances charter charter mission was topic. to and/or flight preservation the on quickly any charter local for all the is XX/X to charter strategy some that on or utilization local important and our NOP donor used small help on technology in operates. when These of for allow to what the broker capability covering crew operationally program, Please and cover we a costs brokers significant bottleneck organ the center operator afforded from limitations important historically, had flight that significant as to Two, own too promote role operate deployed use of regional U.S. don't and centers TransMedics the When you and relied a capable plane brokers availability increase longer local a transplant this of charter Their shortage transplant and charter the remember, by experience added is regional volume using aircrafts the by missions simply asset-light operators. needed. new flight One, a longer-range cold center growing proposition. a background donor on approach network becoming brokerage charter for to: now laws new relied allocation charter brokers they mission. not and donor transplant and NOP's organ due our inefficient and model the typically a they transplant relied to national meaning transplant to to flight exclusively to the facts grow and for start organs transport or model NOP brokers. contract we older for U.S. operators firsthand an Unfortunately, same was aircraft. I through first the me regional

lack routes, air control Four, or the of standards over charter aircraft. of sorry, the XX% to early over multiple use transplant missions of which led by order starting a lack control of aircraft the mission, local which This inefficient bill operators the highly more and transportation 'XX often reposition more sometimes aircraft. in lack of costs loss contracted control in 'XX. contracted use in center. double Three, the these even of Five, receivable pilots -- and safety resulted these XX-year-old the planes paid most added crews to resulting XX-, for charter location donor NOP single to the brokers the in to by over flying of of of of the XX% and complete approximately regional

our become cost clinical aircraft donor few own the a progressed if not model, teams a 'XX. DCD Six, brokered events procured an fact, inefficient NOP even in or donor. 'XX to and near and donor catastrophic never organ surgical is transplant experienced In on for if a round-trip

to of a the and the aircraft transplant these Finally, broker multiple profit the burden added paid cost All that and owner associated the the of for of aircraft, middlemen margins flight. the centers. very operator with unnecessary with complex structure significant the cost chartered

asset So paying model the heavy light this while ended middlemen. is the burden for centers clearly and a very payers transplant it financial broker, up might be to who multiple

is it to goal stated as and aircraft, severely to ability severely and transplant limits the dedicated volume. to a road volumes -- shortage it also U.S. block of also the due our Importantly, saw it transplant commitment growing to we grow

inefficiencies, meets model efficiencies that centers. TransMedics and address historical and while issues constraints above transplant and cost for the new, needs significant created To operational these U.S. safety of the significant scalable markets in future model through the the a transplant the current capacity growth in providing more

is with reduce donor a used to our our the to waste get lack and leveraging transplant goals plain that operating for caring organs using not clinical missions due organs four, modern precious availability. the longer This of cost become the by created donor. and availability we we've jets donor progress the that building environmentally conduct our distances. allows which you to to be flights, algorithm that fleet control to and dedicated fuel, to on cost reduce maximize for do can structure infrastructure to we centers. use and highest dispatching of newer finally, not network reduce actually our level to with users. a share users donors logistics we aircraft for with reduce NOP go command cost us that downtime given to burden are of maximize transplants ensure air us transplant proprietary unique by me transplant responsible, unique is has less date. DCD costs maintain achieved modern center NOP for. model significantly charter our of And the ability goal share a One our our operational the TransMedics don't staff digital to can goal Three, efficiency, The safety center reduce a network and was efficiencies of transplant fleet our availability utilization and missions. maintenance to and maximize Two, will that so Let vision to

Now for you with with logistics NOP metrics ground for above transplant service, share encompasses missions. performance background, TransMedics let aviation important some me logistics and early which

approximately XQ earlier, mentioned service of in to million efficiency important safety us revenue only As $X.X to relatively the were only X inefficient aviation planes aviation the for $X.X XX% able both number were X XQ. we in flights We using compared take XQ. unequivocally logistics planes and XQ. cost with cover an active XX% in XX was cases to metric At service used million alone logistics and using XX% are of programs compared compared approximately in historical of in operational that approximately in for TransMedics NOP availability, needs fully from cover model in transplant TransMedics approximately market average XQ transport. to our XQ share air to U.S. is our This We programs in XX to Approximately the The X hoping quickly. compared operational as X.X% the enabled in weeks to planes XX high XXXX. XQ to show logistics of XQ will operational disrupt owned total transplant standards approximately NOP year that ground we in TransMedics a in aircraft and XQ. ended early service are to become scale, TransMedics

missions. reliable lifts support highly for supplemental safe to selected operators our carefully use will We and

proud we and early are by far, humbled results. these So

We are aircraft. fleet expand operate our and continuing crew the to air to

operational have and December, I'm are dispatch to digital to -- at of designed 'XX the hoping we in facility. is of center are aircraft by the end sorry, to dispatch state-of-the-art and this XX center We early fully the resources minimize from We 'XX. potential and XX case operational today, end the positive opened Andover now operational efficient transplant or control maximize command repositioning This XX/X/XXX know based services plane and of to everything more our on cost availability Again, and confident our efficient the of routing volume we clinical utilization on extremely are our of and on NOP a on impact resources. programs. NOP of we logistics transplant growth bullish command

TransMedics we and Many with in recently the an a letter to letter, leave his the U.S. February I practices. matter capacity as want some may individual the a public this TransMedics of member contains of which receiving of aware to with section, you from Prior wrong Before never writing communicated are letter information. inaccurate, logistics a entered task. I Congress be e-mailed that This based TransMedics accusations, this share perspective of XX. nor on that serious domain. on member was regarding business member grossly unfounded his had Congress congressman to any on The

the this straight. unfounded seriousness record again. grossly based with set repeat This letter factual evidence has inaccurate, assured, to me TransMedics with responded and are to accusations, wrong Let the letter level same which on information. Rest serious of contains

logistical of logistics is response section clear the model formal is that is publicly the on disrupting this brokerage website. area in our is posted antiquated of doing transplantation. for Our TransMedics organ It what or charter transplant Investors some capabilities. and This struggling historical this compare brokers is -- by of competitive efficient to that our dynamic area cost-effective our some with are operationally compete creating the of to some in historical

our give hope growth these to let strategy eye May. in in our XQ you Finally, in a call initiatives view detail and me bird's XXXX of XXXX

TransMedics throughout more Our us efficiencies. building leverage in XX to invest 'XX transplant out is in services and operational to logistical to our goal continue give

both on market segments volume growth X take our and the volume focus in in existing all transplant growing NOP We of share driving overall volumes. case by will

new program a United initiate to the will the reinvigorate transplant We try clinical to lung States. in activities

clinical and that are for will investing in more and the NOP the staff our process maintain we Finally, leverage. management product next-gen clinical on highest support streamline platform quality technology OCS better optimized to be achieve workflow our

by 'XX. humbled in success are We our

not are still. standing we However,

the we That plan business. bullish focused TransMedics balance challenges. help to laser volumes XX be drive with the to -- and said, our for we plans being competitive and our are in on balanced U.S. execution scalability overall growth need We to for need transplant potential in

We XX% XX% guidance are to $XXX annual $XXX which XXXX. growth providing an revenue million million represent between over to

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

Stephen Gordon

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

revenue. with starting So

million our quarter total $XX.X included total related the The quarter quarter continuing XX% For related. that million is quarter. last be Summit Avation's $X.X and of $X.X of our to is flight expected business XXXX, an X is fourth to of the not sequential $X.X non-transplant of the $X.X The was million. the XXXX, in million a and $XX.X increase related from legacy to legacy school increase to business first This XXX% revenue of of fourth million XXXX. from is million

that million growing on of TransMedics The $XX.X all and lung, the U.S. quarter $X.X million So from from quarter, included U.S., revenue transplant-related the revenue fourth liver, was last increased heart of In the of of U.S. revenue $X.X was XXXX. this revenue revenue. substantially million XXX% and the organs transplant $XX.X $XX.X million worldwide. million. QX leaves organ over million of breakdown over XX% grew of and XXXX, also Logistics U.S. of sequentially

a from heart $X.X U.S. continued sequential a of Ex also XX% but liver XXXX. from XXXX, in sequential was see revenue increase QX decline of lung sequential QX QX. and did in modest decline strong We revenue, growth while a million,

not nature outside may the The million to was U.S. we and the As lack consistent heart of States. revenue the have $X.X past, breakdown love. organ United transplant and million $X.X our of the reimbursement OUS of be in outside of the stated due

Next, product cover I revenue. and will service the

now service for includes was million. revenue we QX, added $XX.X procurement Our for includes charge and the organ $XX.X product procurement the surgical revenue million the logistics. service and organ transplant and charge management amount In we amounts revenue also was and

the in from component in So was QX the total the of service NOP the early of and XX%. in which service margin was was service stage of in includes reflects the business XXXX nontransplant quarter XXXX fourth and for QX, XX% quarter down portion Gross This higher was our XXXX. fourth of that still revenue. the of XX% the

in Now was cleanup drilling did to the level, and end XXX margin margin margin product repeat unfavorable XX%. and We of inventory which experience year an X QX, will was service QX, down about impact to not of in the points related was adjustments. product that XX% basis

We the quarterly changes future. see in of will processes, so our have to not anomaly made we type this

repeat, On the were pleased logistics the gross And just margin are service the our to side, service of to we quarter NOP service air clinical able providing service deliver the XX% and that portion first logistics. our well ground in as we full business includes of service. as

So provide footprint our as better the to that we gives we or service the grow able this will with this and confidence margin be mid-XXs us gross of achievement service aviation. utilization

to to of in R&D the throughout above of expense net allowed growth profit related sold. both was the $XX.X of quarter driven As profit for XX% $X first of in and NOP including and for The revenue while growth operating operating XX% XX% a overall were XXXX. to growth and and are XX% growth million depreciation development operating of QX investments all by GAAP million service costs expense goods by NOP in cost investment support XX%, growing TransMedics organization, quarter tools reminder, Total operating pilots, its and deliver the in this million, for $X.X including fourth and expenses fuel, SG&A corporate of And related XXXX products, maintenance infrastructure. expense. in aviation, included the new

balance XX, XXXX. a at the from compared was $X.X December at an cash QX Total of the net usage These end the operating the of $XXX.X million QX of of XXXX, $XX.X million year loss of cash end to with of in as million $X.X which in 'XX. of million of equates QX loss

weighted operating the in for $XX.X purchase quarter. the average shares quarter million. for X was $XX million. in Basic million, a were which However, weighted positive $XX.X the $X.X common million and about offset cash outstanding by outstanding average common the additional planes diluted of quarter was shares quarter for the were

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

$X.X again the For total million full was of $XXX.X heart year, revenue was U.S. year. XXX% million, of liver. full a the lung prior Ex $XXX.X service million, liver. lung. for increase the and year the million of revenue million year And revenue $XX.X $X.X $XXX.X revenue of heart, And $XX.X $XX Product $X.X for the million over $XX.X breakdown U.S. and Organ for million was was of the million. was again, million of was year nontransplant million. and

in is Gross Total was it's year margin year of NOP XXXX full the from to compared XXXX. of the acquisition-related XX% million in-process and XXXX. Summit, XXXX to the from XX% full XXXX, $XX.X million was to of were up margin $XX.X and acquisition related expenses full the of XX% the million of acquisition Product $XXX.X for for Bridge onetime in both XXXX. and our our XX%, of result a this of service service third year revenue. operating for Again, $X included higher margin of R&D expenses quarter million from life portion was technology acquired XX%

Wally's net $XX.X XXXX. loss loss was a $XX.X million to in the was Our tremendous million was compared we expect offering, to providing represents now million in to million which in grow of to over for overall extremely our opportunity XXXX margins we Overall, To year to year repeat to turnkey earlier annual we continue $XXX while growth our range to of the the the modeling we comment, in $XX $XXX continue solution compared the XX% customers, million, gross center guidance year beyond. a in TransMedics to and gross expect operating helping XXXX XXXX. throughout transplants. can By demonstrated in 'XX Also increase million about transplant XXXX We to our for number $XX true million the be to for to XX% to improve range overall for our margin. exit optimistic business as grow purposes, XXXX. for would revenue $XX.X logistics to we of adding services are to to full and provide potential XX% NOP XXXX XXXX

product and the mix be service and expect in product We mix service to XX% XXXX. around XX%

grow expenses the expect likely to XX% range. XX% XXXX, in We to in

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

Waleed Hassanein

to you, of revenue. the very logistics transplant performance grow and and Thank new We're U.S. more Stephen. drive efficiency we operational In our We totality, We need our volumes humbled help more for our solid TransMedics growing business and an operating doubled numbers. quarter by helped foundation first launched we GAAP double-digit for clinical and cost the profit and XXXX. organ TransMedics transplant to patients network a business. achieved of in by proud than in users, growth We liver volumes overall national heart set for a mission of our for transplant. sustained our

XXXX plans OCS on towards we by path are our on our and laser-focused Now achieving transplants XXXX. XX,XXX operational

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

Operator

first comes JPMorgan. Our Gould with from question Alan Instructions] [Operator

Alan Gould

Congrats your diving deeper to want bit start. a start guidance. on I a into good little off

the your versus drivers see? top disposables margin gross How the we I on think disposables outlook the when that service think the You of about provided big is growth question that we think versus still should about a service, but we you're to expecting line. have by

Stephen Gordon

Waleed later of a X Yes, the case program growth volume, we impact in mean, lung want far it's we Alan, to the to mentioned, we business drivers penetrate growth, as want which also the as deliver expect increase help to in organs, and as year the and for of will just we -- the clinical across continue grow to that all happen. the logistics lung to I not is in logistics, deeper

Waleed Hassanein

you for bit but perspective, response. granular growing give more agree nowhere thank Alan, close done, the Steven, in let being question. me From We're I little to volume. transplant with you a our

X lung going organs volume lung by deeper in the we adding program program all accounts. by more well to areas don't DCD will across accounts the We have franchise. like reinvigorating enough our DBD and grow DBD by more as existing adding transplant growing our by by into where as accounts adding heart organs new

this are in We the beginning just of ramp-up. commercial

the or actual logistics direct indirect our with case business. impact growth and aspect other the impact logistics overall growth operational efficiency even from into of may TransMedics of more drive the is volume the The revenue

So and the exist sides and well adoption important have will it's of as disposals. -- and service synergies the the we drive both the disposable of our catalyst The to between product as that business. X monitor also an

Alan Gould

market? to . impact continuation been the quick TransMedics? of there about was How an seen in thorough And the for won't you last of Got letters, of letter we kind years. think the ongoing article but talking a that's it. out should the the And said follow-up. also potential as then more disrupt we over a investigation on investigation just that think the response as about that a that, a kind OPOs about to transplant congressional longer-term We've the into should how few so I underlying dive more

Waleed Hassanein

Alan.

the you Post in country alone, by what results double to announced today and hasn't it, we volumes executed transplant The delivered we the trying in been build digits this and As out unique U.S. seen We grow a said, decade. is developed in TransMedics in model it, of following. for is was to that years. line network went NOP. numbers called OPO a almost revamp ongoing bottom Washington disrupt several the or the just the what's continuation been a

and know this that. it. we what already think to we to to how will anybody what's proud transplant has do And to are country. happening grow and the or been going to what's we to cares with volumes to anything announced are continue are in who we've We accomplished. do don't are of here earlier us. today We continue with OPOs But show We've we done do proud it,

said, focusing driving our meantime, excellent in our you as years. service it's and organ We're for transplants But our country are on. going logistics using on what's unfortunate been it's results on focusing NOP the more now business. again, several successfully with on So we . In going service. this

Operator

The next Cowen. Jennings with TD Josh question comes from

Joshua Jennings

a year. strong Congressman's the just on about to Congrats the wanted remarkable letter. finish I to ask

aware to bundle transplant in could every that stronger there added issues disruption sense going But of headlines it. be the this all fruiting allegation. potential. programs disruption or next expect our then any that with the a Congressman. many is customers. Willy, two, provided just They're business any by And you've have as one, think around model. any business these so seem accusation you you from do You to any I short-term inquiry don't steps the short-term

Waleed Hassanein

of field. us not they're first or expect is the level to listen, stand to is from sure to what confusion, any This to going came some of whomever complete guys on your completely should business. going try you letter But TransMedics is question, has to that am out TransMedics assume facts. It what okay? by of distract counting behind is letter was use not to not It to left try still. one Josh, always part unfounded. I was supported

we have doing vigorously institutions for goal very for all fairly. defend our and our defend our years. to to volumes, to positions their support the And as you best organs that -- we going are transplant past success ability transplant practice, the -- been know TransMedics patients. for and these our to We support grow all XX deliver clinical our their

still. we So because to minimize We're we're it's Absolutely, much that not to expect can. as standing as Do going we distraction try distraction? natural. going be to

steps don't know, there's the don't than being pretty don't -- about and but same to this D.C. response facts Washington, senior know to of are TransMedics the what to Josh. in go letter But I misinformation have it next letter the before how it and with I a our know right are, appears well. this advisers And as we accusations we the exactly course, of TransMedics. need we're around Congress our team propagated is and that legal question, people far came a in doing fashion. levy comprehensive responded come strong, sure if know. they and know in -- anybody on make time as was propagating other don't really where other coordination As the wants than I against these of to And as down the full the our all part that next some and positions we designed that they such path that

Joshua Jennings

And follow-up. just a

OP within the do share to that in improved Any Just for should these looking clinical driving you trends you using us OCS. Welled demonstrating plan analysis, transplants metrics of be some using and and demand you centers the how outcomes about transplant increased NOP. terms mentioned or can OP can be the with and think And for? data OCS adoption analysis impactful we data in U.S. present the

Waleed Hassanein

Thank you, Josh.

dysfunction. We're graft I dysfunction early think graft looking monitoring our ones are both and key we've months. XX rates at both been and looking of at the at definitive long-term and metrics outcomes. allograft looking survival, the primary X all We're PGD, at patient short We're time.

these So measured programs each we each also are the metrics at that we're by. are within these case metrics -- in of market. growth transplant transplant looking And program the penetration the are and volume

we'll be the are and at ATC metrics these ILPS. ISHLT and discussing . So

Operator

comes with The Bill from next Canaccord. Plovanic question

William Plovanic

faster I of what liver Very kind triple like was looks XX% which adoption is. because you heart, in at procedures up scale math, looks the which strong just help pace quarter. going I our it sequentially could understand the really seems year-over-year. especially about like I'm and was if it liver, mean, just curious, the just the probably up the sequentially, It kind -- by the were but liver much and like, almost liver it of us not looks at be is than to driving and

Waleed Hassanein

Thank you, Bill.

think know that. procedures I liver all transplant even for reasons or several transplant double there's and are X.Xx frankly, that heart several expected procedures. reasons We nearly

is to always number liver in at surgery surgery heart adjunct regular open transplant one. two, So that's dedicated general. programs heart Number transplant service is cardiothoracic and transplantation versus a

number That's two.

pick the of just of always I lead up. heart liver procedures. the that the sheer way are think we will confident because will number

demonstrate OCS liver that we there growth. we're really to go the overall contributing our or will volume, heart years, next couple up same get other. should to to that in importantly, in close as a to more number of the overall next reporting over out to will contributing at X IHOP, the going the level effect are to we will of the long-term X each goal procedure but the transplant become the the see pick confident we the I more we years, limb our heart of to get of we as the number that's growth is starting all we think and over get continue extremely X because the Again, next see be sheer procedures, start will of not we and will at pace. up say long the And up of that organs

William Plovanic

question, aviation lot we just faster Great. has if then I a my could, than And second ramp expected. is gone

term? do per to revenue Your you -- do how said think you Because gross little of this. XX%. service we XX. XX%. then now, When got expect us to margin XX aviation And get the you be information, longer for how points then we And gave it'd about XX you case you How think XX%? originally, a about deeper should getting to hit metric you think you're I the that we average into as think thought do more I

surpassing XX%. already You're

Waleed Hassanein

As always, [indiscernible] questions.

own the or TransMedics doing scale we of hope operating of XX% with sometime fleet. which at second we operational half fully of our aspect XXXX. missions talking flights When transplant be we're surpassed first our to The aircraft, means XX%,

one. number that's So

the are that the per United think And the XXXX. me per West finally, the States, average early. as comment as on question equally then because of far of Bill, and it's that mix remind is we exit the happen X concerned, again, as margin hopefully East can't will I the is across please mission. sides until -- part price was, dispersed completely the price second We The the and we different,

to I going be leave we executing then And see are going for think now. will we it in that the we'll are XXs, forward. as I how and

Stephen Gordon

I on the more improvement as that of -- really, of we important planes of would cover ramp . just year have expect cost over as we plan. number we and I the hours aviation the we do as the fixed what's add, modest the mentioned,

Operator

question from comes William next Ryan with The Daniels Blair.

Ryan Daniels

strong Stephen, It's quarter front. and margin on with Congrats related on maybe year. actually. the revenue more the I wanted to start

own it covering NOP with solutions. came looks cases with that's of your about This logistics and like of your logistics, only about from XX.X% you quarter, the XX% your sales

percentage stay as ramps that the same would at that XX% why it XX-XX the only you're given XX% So towards today.

to square that up. trying Just

Stephen Gordon

Yes.

that's just NOP I note that's the think all service. that, today, it's logistics, important of to that mix not

smaller So had of which total. we service, $X million percent a only is the logistics of

we to couple was part from are the going business, this of some different. as this a non-transplant service so One And things QX. revenue. grow is in overhang away related of quarter go That's revenue

of So a little service. that's coming the bit out

The other international to expect to quarter. back we it come thing was is kind last of where

so higher revenue. is that product And

But year. our to think I XX% rest the mid portion to pass kind then say, gets we ever going remains a direction. like the of to in how product mix we don't the of the of service upper through generally go to in bit is both service how those skewing the business. seen speaking, it think range. would in be wrong QX. be QX, will maybe I I slightly And it the So are kind of change it in of XX%

Ryan Daniels

X very to color. Okay. an in a product a we then to strategic getting of That's the that perhaps really support building much as your X set opportunity clinicians the outline largest XXXX, your ton eye that for here to growth business, broader with targets. Obviously, logistics I'm plate, life on strategic bridges should keeping the set be the growth you're but out development, to curious a the but dynamic to and on you've if or this question. year, of new also platform And initiatives not got maybe you maybe lot XX,XXX really acquisitions, could technology hiring platform helpful cases.

Waleed Hassanein

looking these thank forward And next call. goals more we beyond are earnings next our for you the We're to are and . about in to doing very Ryan, important, sharing above. 'XX detail call. all in of in our earnings question. all granular But and our specific we details planning

Operator

question with Company. from Next & Suraj Oppenheimer Kalia comes

Suraj Kalia

quarter. Congrats on an excellent

So only questions. X

First, heart X%. market and with our shares math and lung exited of you liver approximately as QX XX% XX%,

hard you movement? math? additional you and XX% is for and us looking give in guide, things or how the levers you our in are not some through get share are math put guidance And starts a XX% you your to could. in do million performance You $XXX thinking And approximately to 'XX telling FY strip based building guess somewhere DBD the you years to your XX% granularity? more out especially Are little Street slightly guide, guys can on lungs. just guys us given in XX% site rough if in? down I to right close How last the DCD us, X

Stephen Gordon

Yes, is Suraj, Stephen. this

where where from today. improve give don't we expect think we we can I definitely share are So to to share be. expect We

and your -- go XX% we an to as certainly and heart me? we As XXXX. on were annual XX% it remind into to And and your improve we question, we at expect at in said, share kind of that basis, part we next of Suraj, looked the liver,

Suraj Kalia

Just in targeting guess thinking of and distribution. color versus the telco I terms numbers? also you is how DBD about to getting for any to DCD trying additional or understand are just you how site those are that

Waleed Hassanein

Suraj, you let that address one, the me for and thank question.

And what we I way distribution. Suraj, think, case look expect. approach at our is very we we here's broad. mean I the this

we drive expect to we expect organs. But not We used expect if heavily and that continue, going that X to DCD, to to all we're forward stop across continue in here. we're

adoption variety area drive do drive a We through of that volume. are invigorate different utilization. going that find to mechanisms and in transplant DBD to to programs national We to ways overall

ways as least, or at our near are that or we concerned, we to quiet overall, the is are whether like imagine what that and heart After transplant mix And our the would in and would penetration Can the again, that, as do quiet we point, the a areas three, does is be where relatively revenue if great. program you DCD. number at look we than lower or matter lung to penetration universal. loan. reinvigorate So at it far more are lung it that service and it's find DBD

every proven we we service set results in or been that to or set to value that promise achieve. hypothesis achieve every Our has to

the is growing way And programs now being the leading transplant OCS logistics. want welcome they whether standing not thriving program. that. our know up we contributing And the are transmits field. contributing to many by we in their it. are look to transforming it's every And part And we transplant and expect the because is And and of future. should and to proven forward to programs This be we commitment that be at decide and future NOP our or We've of to the of transplant growth growth. program going a will transplant

organs of rates it early achieve X in a a be broad size And not we one we the it's levers to goals. again, across discussed. types are very pull given penetration how on all our donors we different X And we have and range [indiscernible] tackle to the the across creative fits

Suraj Kalia

Fair sequential jump the could quickly follow-up number sites if aviation. nice a I ask very TransMedics of points. using in Waleed,

comments it like the we like, to run. aviation of X it even TransMedics shop, want every at So to made leave visit, you make was as we a look, one-stop normally right, happens, attach had our site

number, sites a you on just and I'm TransMedics you aggressive is to lack has XX pick about to you the And sites X dice I reason, you went go what remaining Gentlemen, for Congrats, on XXX reception? it again. are know, to, So whatever is or talked sites, don't how thereof. resisting for the are guys the to or the slice X roll. board, us stage trying a set QX in understand, all been like

Waleed Hassanein

give the I by to our Again, would use Suraj. price programs very or whether not that for go very, you we we you similar. programs to provide option want granular than a called we logistics these them it's Unfortunately, to to. us remind When approach them disappoint there other to you case, there more provide they might are much, decide up I very we not. quote and saying, an Thank cannot them get use out to to is NOP our TransMedics detail you that XXX

Some to asked using us and back and came Tamer Andre a centers for contract. long-term like

have stage hope I early more model more detail help are that And that, but -- meet the quarter, and or are wanted know there The require to logistics. to achieve us centers bottom we Some most official the better do of goal. addressed you it's are or than can we It's to them and going Suraj. cases. some sorry that don't more we we granular in at confident operationally only up launching cost-effective cost only that this center and not. quarter. this It's from and get the many leverage capacity United for efficient providing that, question, more is are it's And we to in X and program scalable structure transplant I participate an and of plane I'm these here the X States. to in I transplant as logistics we give line to

Operator

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

Waleed Hassanein

evening. wonderful Thank evening, in again . you being you, with and very us speaking May. look this Thank we a for operator. much all forward to Have

Operator

for you presentation. \ The conference has now attending concluded. today's Thank

may You disconnect. now

TransMedics (TMDX) 26 Feb 242023 Q4 Earnings call transcript