TMDX - Earnings call transcript Q3 2024

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Operator

Good afternoon, and welcome to the TransMedics Third Quarter 2024 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 Lane Morgan, from the Gilmartin Group for a few introductory comments.

Dorothy Morgan

Thanks, operator. Earlier today, TransMedics released financial results for the quarter ended September 30, 2024. A copy of the press release is available on the company's website.

forward-looking like this you question-and-answer call, the that I'd make management portion begin, meaning call during the statements including include we to securities that remind will of of Before federal within laws. statements during the in contained relate that future call predictions forward-looking statements. to performance results or this are or of statements Any expectations events, beyond the investments current All expectations expectations revenue, potential could current commercial the guidance by our infrastructure, our forward-looking to operating and these forward-looking and statements products are estimates timing anticipated and and outcomes of next-generation trends, in impact statements, of from which various as including, and results programs of implied examination material without actual future gross potential and materially potential the that based new for uncertainties include organization, technologies, differ for financial risks growth expectations, in and those as limitation, assumptions. These our upon impact our operating our and/or events and margins or for involve opportunity cause XXXX well expenses statements. in clinical or Accordingly, you statements. these reliance should undue place on not

contains included and Form at or under today's Securities X, available TransMedics disclaims Additional risks these website information and XX, of uncertainties turn in intention broadcast the information, the now earnings This statements, subsequent Executive Form with are and our XXXX, any press our obligation, as Waleed which www.sec.com the filed heading only update and information statements or Risk future and at Factors appears our forward-looking Hassanein, and Exchange Commission regarding August to release, whether XX-Q Chief the new the on over on will www.transmedics.com. filings XX-Q that, is or of XXXX. And live required President revise time-sensitive to accurate Officer. call I any forward-looking except otherwise. October as events conference call or today, with projections by because law, of financial

Waleed Hassanein

so much, Good everyone, Lane. and Earnings TransMedics afternoon, Call. welcome you to XXXX Thank Third Quarter

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

XXXX we TransMedics of represents for year growth. we discussed, into foundational next As shift an year the important as

As we a product scale support of the and transplantation, perspective laying organ to our leader the have also growth. while from business next operationally to groundwork market in phase continued

OCS next-gen Specifically, focused we enable These infrastructure and adoption clinical potential NOP have lung logistics completing for and going transplant network Lung technology volume to of indications annually. and building overall infrastructures. remain aviation U.S.; anticipated approved completing transplant launch Heart year and the at XXXX. three continuing catalyzing programs first OCS on phase expanding U.S. market heart of growth finally, been and aimed to First, to us in our OCS and new unlocking things: development better the are to the our forward. the our and first position clinical Two, in market programs growth on And in finally, the heart growth and technologies, next lung the invest capitalize of and phase

to across conviction particularly OUS progress we modest perspective, a initiatives third to maintain through future and quarter a discussed as an headwinds have these significant in Meanwhile, continue maintenance each routine meaningful revenue, overall to We deliver represents which From by come impacted part scheduled was revenue well as we our we transplant the expect. call. in on our of viability runway volume that make continue year-over-year our business, of beyond. last and growth growth, by offset aircraft U.S., U.S. which key XXXX our the in

XX% the total for revenue from million QX in driven declined million, in OUS. X% XQ TransMedics in transplant and by U.S. by from XX% XX% sequentially From sales up quarter. a Total from XXXX, we QX sequential X% highlights of saw Here decline a XQ are year-over-year million QX $XXX.X XXXX approximate perspective, revenue the QX growth logistics increase a sequentially. decline growth $X.X sales service was representing year-over-year but the $XX.X million, declined OUS and operational offset key was XXXX, XXXX. QX. sales in X% from sequentially $XX.X U.S. an up from from revenue XX% for

in XQ Our from resources network, next-gen clinical decline overall The down somewhat given sequential XQ continued gross XX% of margins extent and technologies. XXXX. was OCS investment XX% in our expected for was logistics

a of we million profit operating of X% Finally, revenue. GAAP delivered representing total $X.X in QX,

Through and infrastructure provide our me quarter. let continued reaching QX. aircraft, logistics XX updates by to fleet of of the results we owned in Now QX, aviation on end our expand

hiring training and We also in to pilots. invest continue

and we growth in were NOP made to the Importantly, maximize XXXX maintenance for beyond. in TransMedics in infrastructure demand to and investment internal by at maintenance our of growing strategic investments expected in our and aircraft staffing hub prepare and Texas made also in building a operational for QX. fleet missions Dallas, aviation These OCS current efficiency the

maintenance use This QX, We As completed were from average our of NOP meet Still, our call, XQ aircraft in logistics we on resulted XX% we routine our our earnings NOP owned lower of daily available XXXX. 'XX. planes to covered planes aircraft in XX% flight to of stated emissions QX our scheduled maintenance. several compared also owned for third-party in XQ partners while in up in missions missions in QX.

background, this context on I'll more these provide with results. Now

X% declined clear and U.S. the discuss volumes U.S. variability while by than other availability potential and for the these overall reason In heart and revenue volumes. me transplant declined let declines First, approximately is lung normal X%, QX, donor seasonality. liver summer sequentially no approximately in national case of There total volumes

line in national sequential decline case volume the So in decline the was directly in U.S. transplant volumes. with the

competitive see OCS or in dynamics not case fundamental crystal three role we center playing to clear: I not or volume any seen any a all decline for market degradation Importantly, sequential want QX. penetration make on of have in our in share orders. did any it We slight

case the there in it repeat sequential slight me or competitive any QX. we Let role playing have not decline seen been not for again, OCS volume in any fundamental in or dynamics has

discussed volumes remain near the On a will revenue or of decline, in lack the reimbursement. are part OUS heart portion of term. as we've quite lumpy very small revenues focus previously, OUS business a and broad and, OUS national our on and given heavy

secure working are growth mid to in initiatives European to and We of national on liver longer catalyze reimbursements OUS or technologies over and launch countries terms. several lung and to OUS Europe broader the

on let discuss margins. impact our Second, the me transient

clear, to resources to impact ahead driver our capitalize higher service in infrastructure maintenance and of be margin of we growth the margins. to decline technologies scheduled our To opportunity discussed earlier, in continuing our the logistics OCS invest In in significant impacting QX, transient of our is profile received As growth. near-term to catalyze a the and of investments quarterly was we are us. partners third-party on to future growth utilization next-gen planes result investments network, gross of margin logistics clinical a our ongoing NOP variability our cover as in related the and mission direct primary

margins our of ] business. investments will growth, believe before, remain efficiencies gaining we've said case variable scale service are [ the further that margins we confident we several start given summary, levels. the in and quarters, over will ongoing In next grow we to healthier as As

However, conviction future these optimally us will we growth very profitability. degree that of and high investments have position a for

we to and clinical now launch in which lung XXXX. heart Moving next OCS our programs, plan year to

and to designed anchored clinical Heart OCS As are specifically indications and I technology market developments lung our our next-gen mentioned our OCS earlier, drive and for adoption by these momentum technology. in programs significant broadening

more would hours, transplant conferences long-term our to nature these platform in upcoming in Again, are product OCS Lung and programs transplant preclinical XXXX of excited morning we potential of the the drive long to year-to-date confident presented to lung are advancements the to in Heart cardiothoracic lung a of revenue of and near, to milestone and compared conclusion, heart time OCS OCS superior potential about while encouraged and We and are heart the at by invest has up will XX as our transformative that which nationally. In new testing XXXX. for transplant our and results to enable hours catalyze these results, for the our field scientific aspiring we volumes XXXX, represent huge as effectively consistently to doubled pipeline and continuing perfusion. lung the publicly have clinical growth achieve. first be and has formally demonstrated mid- Detailed outcomes increasingly we OCS heart programs have growth. been future transplants we in These impact stand clinical preclinical and history,

and XXXX 'XX maintaining of me $XXX million, year full and on detailed guidance 'XX XX% are which represent we We call range for note catalysts million end, on ending revenue revenue. With To the now full several our the preparing growth $XXX to for throughout a focused quarter. that, to are financial over XX% that annual cover year Stephen let turn to strong results beyond. to the growth

Stephen Gordon

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

in was logistics XXXX our OUS on heart and XX% quarter. is from XXXX, revenue million. transplant QX million. The $X.X a organ was $XXX.X X% XX% revenue sequential from $XXX.X million breakdown XXXX and breakdown an decline lung. in down In revenue. liver, quarter sequentially third million $X.X revenue million, third decline revenue decline. lung. U.S., increased from million the in in $X.X For $X.X This revenue third the $XX.X a of million in was includes from XXXX was was U.S. of $XX.X was last quarter U.S. last of the $XX.X total The sequential a of increase heart quarter the XX% million Ex and of and and million revenue XX% X% organ from quarter. U.S. XXXX

on revenue. and Next product service

revenue revenue In NOP reminder, a service was total. revenue there procurement this $XX.X ]. of revenue In million, service was management, and organ clinical the of includes quarter, million. the revenue $XX.X logistics and product surgical School and reviewing service The XX.X% rep several Flight were QX, headwinds. [ portion our was service As

to last quarter, as recur very not we had revenue expected some a going orders international QX small that decline and revenue sequentially in while we we were to our knew OUS QX. was of discussed this As portion in QX stocking business,

revenue the decline pointed decline overall out as both of sequential was other trajectory, headwinds transplant was well this these U.S. and yet as expected. from so to performance driver a on QX were not in reflected long discussed. also our that we growth We of the And QX

gross to margin. Moving

QX Also, XX%. comparison higher In to quarter XXXX. did For from include QX XX% in quarter component logistics. gross the year, of our of service of This business. reflects of third was down was our last XXXX XXXX, the quarter margin third this not full a the

Our up this XXXX and in last steady QX QX of XX%, in product margin was is from quarter. XX% from

margins XX% product to the the range. expect XX% to in We remain

XX%, the service was decline several side, QX driven And was On a of factors. margin from this by 'XX.

spending prepare for we First, to similar to service and future growth. of three quarter, last clinical areas highlight. as are spend ahead we were logistics in There

are utilization pilots for of training quarters. planes our owned in additional prepare We investing and coming pilot to the in

margin. a Waleed future approximately higher we our greater partners have will time as expenses negative also third-party that for had this demand. service I also maintenance again, over to And on in costs, represents nonrecurring can our required mentioned, very margin Second, What NOP to say confident efficiency. additional feel aviation cases service that related Hub. as logistics reliance made saw impact is we improve gain on cover million have I we in, NOP third, and which our initial hubs of investments All we $X new preparing

and million of growth new And R&D grew as clinical from last quarter in-process which in we will of was recorded up and as $XX.X mentioned technology XX% example, of quarter. will I will operating XXXX. year in $XX.X innovation, was in This X% development. flat the was was of QX the still in next mentioned know additional 'XX, is that not in I've QX next-gen For and our is represents of from efficiency operational to quarter. of flat programs last we OCS cost well be XX% was from up already expect availability. last QX know from we the that QX R&D grow, we longer-term that and both the from R&D down above as as add million, expenses SG&A near-term this excluding And saw QX. Total XX% XXXX quarter. we repeat And that this planes expenses OCS nonrecurring for also have quarter. but the items sequentially investment past, added just included rate coming XXXX

of $X.X $XXX.X $XX.X common year-over-year for was million a quarter the XXXX. outstanding And in $X million was approximately for of $XX.X weighted June Net profit earnings is operating diluted from net share aircraft about were $XX.X QX quarter, cash million for we compare a XX, loss we million income of or three in XXXX, million. and again share per and was revenue. outstanding shares $XX.X X% million Total of of strong growth. summary, GAAP the average loss the decrease quarter was These showed operating XXXX. Basic common the September costing weighted this purchased and $X.X average cash context, and were diluted per in shares quarter million. In XX, $XX million. $X.XX with end generated and million $XX.X operating an Our the at was as Earnings $X.XX. of of million QX

transplant While we our momentum. our reflective sequential in see in extremely launch, commercial since and slowdown national initial will continue dynamics the to trajectory pause overall our is high we of gross than this margins improve have that that have a a I given XXXX. confidence growth quarter-specific and U.S. did consistent is normalize for maintained more expectations and commercial our volume Meanwhile, short-lived our believe we

XX% to annual to repeat over of of Finally, XXXX. XX% comment, to range year are earlier in revenue Waleed's full million, the million maintaining the which we represents our to guidance $XXX $XXX be growth

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

Waleed Hassanein

XXXX as in made organ Stephen. you, future team Overall, year-to-date the has proud significant designed and progress the we're initiatives transplantation. of in Thank to propel performance several our into our across leader the TransMedics

remain each commitment We enabling and unwavering. clinical for while further from Q&A. transplant as the remains to begin made today we will Our transplant continuing particularly bullish world-class discussed to operator delivering in this major and the of benefit services to forward to extremely volume TransMedics, technologies I that, on initiatives of growth call partners year. With to investments the several look to turn future now the Operator? our the execute

Operator

the session. Gong [Operator question Our We comes with from Allen first JPMorgan. will now begin Instructions] question-and-answer

K. Gong

quarter shy of little little to So I it's in but on a those given guess my because fourth you fourth say expecting that have that seeing been now? just was confidence you're is in a first some a far question, looking Street so dynamics we're been right? the in forward fair to you see in bit think guide quarter, that dynamics highlighting, of third in the came able I of you've about a recovery bit the month that gives quarter what reiterating that

Waleed Hassanein

October. the that early We ourselves. dynamic for guidance normalize have we the reiterating And seen are that's in starting set we why to

K. Gong

the And after looks a just of really kind that outperformed there noise quarter Is we of then definitely heard back. strong it, at kind I'm some you'd a there? NRP while market the look breakdown bit I impact guess, competition. steadier, there's step you're second saying it when organ, going more the we've is else call heard a but quarter as market? of liver sure held in by Is though anything around, definitely around out no you've the there it, really heart from taking is

in what there? I heart happened So guess really

Waleed Hassanein

in led OPTN significant as and into throcoabdominal is headwind the [ [ of aware, or by a the And or specifically impact any been it, QX, NRP is negative thoracic dynamic no States looking categorically publicly ] the competitive decline as sure of on in United absolutely, there's stated I I'm heart. what there stated. has in reiterate ] inertia I face technologies you, HSA methodologies in

not So we the That DCD transplant about concerned year. in facts from of The approximately are up the all for DCD XX% responsible facts, TNRP. TransMedics, are at United donations is actually number heart is last States. heart

quarter. the in impacted decline by and it. got So that a play volume, dynamic And role we national It's the in of see national lion's major we the because share the take all playing volume we we literally went the role any don't down. at

Operator

comes Our from next Plovanic question with Canaccord. Bill

William Plovanic

then I on get comments just a lead back making. Just I that would pickup -- to the and going mean, Stephen to any we used are quarter? think very different to we the statements quarter? fourth tracking help stabilized" on I are people service. the it. will the to helpful you "we're on -- was of handle to go to go that, significant I of kind think, Or want to October word. And I same as But know could fourth we you you're of expecting are be just just use get we a to a the try the in, think for I think get word

investor into understand [ kind million it as direction? the head $X quarter in roughly kind out, of ], new million service to of see point to the rate a margin kind onetime we people continue we like in that I kind you it on and going get and subtract had grow So sounds $X kind back of off the you of If overhead these expenses. same the should and going gross leverage run of of everything is that that

Waleed Hassanein

quarter That's all decline, national that seeing significantly we And that in remains or I few the all on. end of your up October. are pretty To any can and the cannot quarter, believe again, that of comment indications, at quarter, month forward-looking but first in if unchanged. the of shouldn't question, our decline close to the from through first started we're the part or guidance a I was on say of gap statement the we're discuss middle, the this address we really I middle the weeks volume first

confidence set degree a of high we the So guidance in forth. have we

Stephen Gordon

Yes. And the margin Bill, on question.

you as mentioned, nonrecurring So about was there of million $X expense.

also recur been not which issues, is next buying we've will those again more other So But there were exacerbating quarter. some planes.

We have maintenance, it's in but were the of more our of third-party relying on were those in we capacity own, some planes partners.

third more the increase. our parties, we the will own So we use less those our planes, use margin

we And it as volume, And will then things better. forward. of think so improve will help more go as make that both even we I those do

William Plovanic

how into understand there and this is a help the it's schedule, Stephen, you Is thing? year, these see you'll can quarter next us just that we every were And nonrecurring go then because about fourth think as like that? into those something a maintenance quarter like Or to just investments? maintenance

Stephen Gordon

onetime But now year. it Those managed kind We'll manage the were truly think will normalize investments. we've the I over out Dallas. maintenance, hub in of the

I so throughout And the will think it normalize year.

Operator

Josh comes TD Our with Cowen. next question from Jennings

Joshua Jennings

bit was seeing they what on did our kind line than headwinds already. called out the ] that like the bit you a expected. would expecting out, on on of XQ, for you Waleed, your were in sounds of team. quarter, had a a including decline call got were out call? deeper you there relative itself, actually [ reviewed Steve U.S., on reiterating out just Street that performance here you're you're the buying had and a the XQ little in relatively I that with headwinds comments the laying the XQ Because were you mean, you like Or little what play, -- play it fourth volumes which was on the side the you stronger and those QX from say it but ahead call in caught this sounds

Waleed Hassanein

than all an we for want maybe but in we us. opportunities organs. higher the may we a anecdote happened themselves. and think forecasting of it, from QX three were headwinds people the case, one across but We for maybe And We that doing just our are And coming provide in expecting and made during some summer I challenges. of this what sure, what anticipated, we believe if habit speaks on we slowdown I to see but thought there didn't were was expect we clear, the what that that's months, headwind number slightly always again, not be

Joshua Jennings

investors sorry -- there liver of ]. the any for heart, in what I make do this you kind you terms share And did go BCD back a to of could in to [ for that [indiscernible]? mean, is reassuring But way action you just

Waleed Hassanein

Our I And what share and that's level, again. level confidence gives the the volume, and us unchanged. center both at at the repeat national remain

in center and Our liver, the level remain and share at national level heart at unchanged. both the

Joshua Jennings

the was So XQ stable share in in DCD heart liver and segment?

Waleed Hassanein

Right. Yes.

Operator

Blair. Our Ryan from comes William with next question Daniels

Ryan Daniels

the we Maybe your a DCD you have in a that follow-up high years there, that past thinking on little so penetration about susceptible in a again, that bit will things given don't it's like really to you that bit up opportunity be quarter. to more versus remains the weakness sales the Should of focus where in now be given given little strong. so market forward were drive you already the fluctuations, going just that being

Waleed Hassanein

we the term, but us in not Ryan, of that's in I've and numerous QX, have that. what still happen maybe we've degree times, as confidence in to short we high -- seen outlined certainly, are

getting We we're yes, at Maybe yet. the but fully level, are started, mature not current just guys.

We the are to XX,XXX commitment our transplants XXXX. by standing by achieving

reach we about actually in in slowed transplant onetime It's we volume happened the continue year a This down. didn't the our the end This of we is inter-quarter. But transplant integral expand -- year and are at we're that programs lung more think and market, areas national happen, overall even is do you our The never not further ecosystem. the that to we of an seeing market going need heart tackled why we annual said, yet. looked overall overall continue forecasted why U.S. and this until sometimes and because to to going tackle used higher this, and not market. are talk to our for designed inter-year grow when we that to Unfortunately, we happen. clinical TransMedics to variabilities. one are our And have one has some are to And becoming QX, share. and fluctuation penetration is continue to next in as [ and more, thing. the market that penetration we that to has grow have we are of be that's to ] annual always or take because part the For

decline the we're So definitely address, is best assume can event yet Ryan, national that it's mature QX. if happened in from going not front an actual looking a But by what I of are in volume still especially that's going impacted case across-the-board are to opportunity this to forward or like and significant penetration be frequent the growth we standpoint, a volume, to be us. to

Ryan Daniels

Maybe follow-up, my for Stephen. for one

center margins. the the kind Just up pressure in for towards investments But make on kind you are understand still strong and you of of the trending mid- get to growth. the ramp as year of ready another quarter longer I bit that maybe to little and and to hubs margins upper maintenance term? now XX% service a the Or own could does actually dilute forward. your lower decision as in the training going be more invest

update just on goal. So there longer-term the an

Stephen Gordon

Yes. No.

well, service, in running planes dependent not the than next really the the more fully our do planes expect those it's to using few very think, of I mid-XXs we quarters where the line and but on much and to efficiency to definitely still mid-XXs is time I want where a be, be. a on want long we don't have Ryan, that, we often years. but which is term, own

Operator

question Sandler. O'Brien Our with comes Piper next Matthew from

Matthew O'Brien

full QX range number, here doesn't QX pretty specifically. guys the bit, little lot for end, Waleed, of a reiterated it's year that's you growth. still wide imply sequential bottom if it And a the about thinking a

to be then should of here thinking about midpoint likely? the you is we And QX? data quarter-over-quarter OPTN should what do expecting? really in Is expect most the range that So the we outperform be

Waleed Hassanein

to stand coming three we think to quarter United listen, volumes where going need -- I'm transplant numbers, a across in organs that. I here and of States. the are declined that not outperform we the out to say national we're prove just going

first of guidance the the far as As the range question, what is. the part is

And I range can't that think beyond And that's can I the of the that. higher I the with. lower quarter. on range, can't of comment end then we in there. the the the But have comment or of end we're I at address middle all range that given the question that out

Matthew O'Brien

just maybe availability like-for-like points? side, you logistics of higher than any meaningful then on or the know kind U.S.]. we're you NRP versus And across the just the around can much -- and can if partners in XXX sorry I and what bucket down rates those? [ it to XXX your look to difference up don't just like sequentially, -- think And I that charging expected did things quarter, -- degradation the if of basis then, wanted I But the at price you that. QX gross or QX of margin that point see specifically, the because basis some buckets made but Stephen, keep circling was were the competition

Stephen Gordon

That third-party a so lot investment much it's about then it. capacity, more capacity. not charged have think No, mean, of getting points couldn't it's X Yes. the that was use to is Sure, it. for we logistics, that the half costs I -- we're I mean And the Matt. I of added buckets X for like more that but of we

So parties. third we're using

of hit really half two of So kind It's the get just there nothing that. other more really that's we buckets, than for cost. And it. a those double

Matthew O'Brien

on Nothing pricing?

Stephen Gordon

pricing. Nothing on No.

Waleed Hassanein

any NRP is taking few I it NRP ago OCS. the highlighted NRP. We And take not want be I several in is the The a time. liver does that And does -- days place that. States taking years. pricing Matt. impact United NRP crystal whatsoever. is note not clear, from to That's your our all on for think pressures abdominal abdominal Guys. It not abdominal been ongoing apply

out be So misconception that's there. that a could

arrives cover and in $XX,XXX of and move has pharmacy at abdominal per is the that, surgeon product to as in for liver cold test charge a your [indiscernible] the device to On NRP prime add warm from liver thing to look actual this service top referenceable. to circuit. easily non-portable, for the center. On abdominal the you case to NRP the U.S. second of is one back a that, blood to to you product need top from need that, The program. storage is when add step the of On to happening that cost a of device need add the transplant $XX,XXX it perfusionist. we to alone States, United the The perfusion and donor $XX,XXX top take it's the to the

that but you're all of we NRP With a and much to. costly already important you XX% not add NRP we cost is those, costs forgot yes. add have with more rate all that that nobody of and know you to very donors attention more -- progressing. than paying So two expensive DCD,

do if liable and logistics NRP, cost only cost of of with XX% you the are which a burden is dry full liable it's centers for are cost. ] for the full for our cost a the liable cost. program, burden not OCS logistical centers on [ they And NOP, If service are run of technology dime

I'm OPOs significantly controlled therapy. States, regulated that not [ stated facts States to is share towards an So NRP earlier seen is that's the really thinks anybody in NRP from have [indiscernible] all these it's during the who And United question, all unvalidated sure recent going take in from of letter abdominal NRP. coming given and not Bill's you the or as OPTN a about I United public ] and OCS understanding headwind the to underscoring

here, is guys, despite this. in doubting And ] NRP from NRP and them everything the States. has this just is mentioned These does never all are taking livers facts again, are and hindrance them of has and anybody the managing transporting a them if do and [ So abdominal abdominantly for to United anything preclude moving us to who not the perfusing these that, with facts, NRP for applying centers. and them I been us. It

Operator

with Our comes next from question Kalia Suraj Oppenheimer.

Suraj Kalia

to a all understand -- quite shock. remiss a together, struggling I'm confess still be your to moving I'd Waleed, I So few parts. trying Waleed, And connect comments

August September volume, So our strong. the was by pretty July, DCD least okay. at was account,

I'm was to of And XX% loss in it so say correctly share more trajectory importantly, or gains, been curious, you gains. DBD. the share heard in more there is break Waleed, sequential I if volume, math DCD a share have suggesting Your seems your your

So I'm share seem hold X,XXX to the Waleed, market a us how just understand in to struggling by shift units this sudden XXXX. curious and the overall quarter explain. it's you gears. something I'm question. still help in understand up doesn't long-winded know maybe, gave I

Waleed Hassanein

approximately in organs. X,XXX focusing X,XXX on transplant It's will a Suraj, this of and add XX,XXX is we X,XXX on we there 'XX, no additional and shift to we is doing on perception last the X,XXX transplant lung reality, see did towards Again, transplants. transplants liver. liver path your in we soon, year, track year, community and heart, We're focusing between we're gears. did

as as you So not highlighted, far that in DCD the share numbers we lose DBD. market did

simple It's secret we in In to United expect recover the the as fully fact, volume It's we percentage in we from in add gained expect DBD or all in to from point hidden on it, down -- X would least anything livers no or anything else? like to QX bit overall just fully States. transient you There's it. went behind of a and the and event, a we that. monitor. Stephen, at transplant of that that's it and recover data based little

Stephen Gordon

distances heart might thing because some a service were our shorter. revenue this a organ-specific bit was portion One portion is would say the I the Suraj. impact the than bit higher decline little a product quarter of Yes, in

So was average heart it was the portion like in than logistics for last what our selling lower quarter. price

why a longer, revenue Those liver. were a so in market. little the bit little bit the bit businesses is a shares on than heart little sequential And decline the happened the higher, The a was more was opposite little that's higher.

so sequential revenue by a that bit And the of had an organ. impact little on

Waleed Hassanein

revenue do distance versus OCS, we at per of can it portion a transport quarter, the longer of case as surrogate the correct. echo transport, said, organ, were Yes. the volume be now NOP increased X higher Steven absolutely may saw liver, careful revenue of report service for the use safety in car only Stephen [ not of because hearts the Actually, and hours Stephen includes is the When revenue And the volume component. we both just as to service Suraj, liver. total said, the to what which more case with we ] and looking for have up planes because for

here. be the So that disconnect could

Suraj Kalia

And we to heart XX% right, should Stephen, XX% determined So don't I account in think heart for our guys by Waleed, and question, have earlier, my talked QX about in price we elasticity liver, or are forward? it. where last you, share now orders take give are demand? liver, that zone being going getting gains the look about you mentioned the share, missed in we stocking by of about incremental when that you more maybe but and QX, recollect how I

Stephen Gordon

So question Suraj, OUS. about answer not in a consistently, there's let first said the OUS. me trend We've

a what quarter. would have this to changes any probably this to see something really. quarter, to don't orders on, similar going it's the say, probably We was be going I similar new So change next I it didn't stocking quarter. and be it's to this Unless quarter. customer comes

Waleed Hassanein

transplant Again, I of portion that to we've Price to create to nothing during or seen programs the tell time. trying happened transplants of for from major to major in QX in Street you I'm pricing XX talking lose have that can caution with done transplant in because sensitivity. would program behind nothing programs anything States. XX, with do nothing. transplant transplants access pressure out get I being volume has has example, of month the the their significant do August, elasticity to pricing what annual United something these

I expensive the you NRP look dynamic. more than dynamic the you factor competing pricing is just NRP outlined competing abdominal when a you there, to at NRP. Second, when if that is because clearly comes out is to not it think OCS

feel it always that the as pricing do pricing if our QX At factor. or when forecast but And that that's driving XXXX on and deal today. confident we even we not frankly, what will point. see least, see as based our pressure, in as see impacting we see we So have a with pretty forecast. we we We do not

Operator

David with Rescott comes Baird. Our next from question

David Rescott

should perspective comments ask we're QX comments you why of you're maybe how and way looking us some to QX, early [ I about characterizing share your upfront. today. are tend this we on from exited should thinking way question. And from of be from stabilization second on some a in there. your comments the more number just is this from long heard that's we one us maintenance any that first impacting things there's typically the That's give maybe if the in you perspective? about planes QX a should around and things on in think which Two some headwind forward. could at us should transient is other that some how then the represent the other how both just the of the the the way I some ] on future planes. Can Waleed, think for take, views point sense be share that I'll heard going

Waleed Hassanein

share we on we our to part nothing, expect do if question, I the I think exiting first the of So think, maintain again, QX.

strong. are We we us, QX. ending as the focusing hope I on the that's that remarks, fruit. in do For could low-hanging stated better in year And my we

reason aircraft want XX we to XX that we're to the enable and or piece, to On we XX through buying is do a be us there that. XX with between aircraft I to said remind second everybody anywhere want or why operational enough

I that or maintenance. any there just that said: month, one in We two Let me aircraft of assume is some what form are at given on need explain to least

scheduled unexpected. operating are and going life some to That's the of Some be that's are a logistics network. --

that that where happened us we more had average it's aircraft to been operating making unscheduled QX, on running was for enough the maintenance that what up with happen, some us for plan to than we it scheduled early quarter that that in operational and we have aircraft. for So sure point. innings we've maintenance down network. this need What to the to higher first Again, for

use that, the we've impact impact we've on hard is on team supplemental partner. these margin down from aircraft, logistics So seen very the and and we erosion working learned our when minimize to

importance So of the assets forward. and leveraging the going team now our minimizing impact the understands

you would least at that's else? perspective. Stephen, anything my care to add So

Stephen Gordon

No, nothing else. do We today. own planes XX have we that

few add quarters. the a about. that again, a possible. We then the also pause as we've run efficiently take will two those will And before, and over more to try just we probably And margin really as we've probably as improve said talked next to

Operator

Co. from Our next question Needham & comes Mike Matson with

Michael Matson

those, on will introducing I talking be, those to Can kind one then just timing lung? going fit the versions and next us OCS the for new you're about anything you about with year. how of heart programs guess, I more and tell to want of ask So you're these

Waleed Hassanein

Yes, talked about the call. last during we this

new the new next-generation Those the pipeline. time eliminate So chances during ventilation the of I'll lung modality, forming optimize extended period of function new clinical design, edema, use any of repeat and the again. circuit sort lung, it solution, It in involves, to period. new or edge are perfusion that our of edema for leading of model preservation the technology designed case an

to outcomes. significantly perfusion as to XX well use our a heart metabolic both post-transplant for are new preservation up new hours, improve model clinical enable heart enhancer front, the and new solution and additives transplant morning optimize it's as organ to On perfusion designed

and running and be driving for for two heart will two and programs same the time, adoption we and and at in So the probably demonstrate multiple for further heart of outcomes to expansion NOP these superiority enhancements XXXX. OCS clinical lung, lung clinical

Michael Matson

your fleet then And of with planes.

I was said it you think XX.

planes I your it with that I of the to you is, how maybe more what guess So is, capacity you before another way using you grow it much of been revenue start fleet portion have put more? could think XX, existing have there adding or to

Waleed Hassanein

XX, not operate say all we own when So XX in did we we QX.

QX In average about fact, the planes was XX. available in

you look at QX, look you at revenue in as XX. a So when it

volume if that of for reassess as aircraft. now and or and this say Stephen handful QX, purchase or period between on even and an any XX planning going have XX are need a we'll We're time operationalize to fleet adding initial we until we initial then forward these not QX said, based size be any -- not and to of So we can we end we somewhere completely exiting aircraft not. are XX really drive additional sweat additional assets and between planning efficiencies extended purchase aircraft to we

Operator

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

Waleed Hassanein

and your the forward you evening. this evening, wonderful for look time call. to our rest of we a next Have Thank all

Operator

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

You may now disconnect.

TransMedics (TMDX) 28 Oct 242024 Q3 Earnings call transcript