RBOT - Earnings call transcript Q3 2021

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Operator

Good afternoon and welcome to Vicarious Surgical's Third Quarter 2021 Earnings Conference Call. My name is Sarah and I'll be your operator for today's call. At this time, all participants are in a listen-only mode.

We will be facilitating a question-and-answer session towards the end of today's call.

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

may proceed. You

Marissa Bych

call. release months ended Thank participating XX, XXXX. released you thank of September on results Earlier the the copy today's website. press financial three you Surgical available today the all for A Vicarious is and in for company's

could of during statements to begin, to performance, you future that Safe relating meaning commercialization statements I'd within material trends make statements forward-looking and opportunity include anticipated current like the undue remind Securities are materially these results and that not involve this we place limitation which that Before or reliance our expense uncertainties will by call to Laws, made actual based Accordingly, Federal market should the assumptions. including to management pursuant statements. implied forward-looking Harbor XXXX. are of performance provisions financial or statements. of upon the events future cause you that our Private this projections various risks are and Securities or Litigation results forward-looking estimates those Reform statements. and Any Act those management, contained relate on of events, statements operating from or All differ statements to forward-looking These without expectations these call in

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

Adam Sachs

Thank a and afternoon thank good you call joining and company. as everyone public Marissa for earnings you our first

Joining Officer. call Bill me Vicarious Kelly, Chief Financial on is today's Surgical's

our be driving public Before we begin, and to for investors I thank our become growth our contributing to advisors We partners Exchange were our ability to want trading company would company's not York on a for and New and employees incredible a and if company. team and congratulate who co-founders, Stock have it leadership the our from not to today, an our this reality. driven idea my team

tremendous an journey opportunity have We and exciting a of ahead us.

to welcome to story. course, I'd investors newer also our like Of

last a At of estimated surgery our are annual technology procedures back next by technique. surgical take highlight an no the open robotics to surgery minimizing time, patients while across minimally pain open associated the surgical and to system. to Despite trauma XX robots are cost requiring to significant open being surgeries care overarching surgery, trauma the leveraging such create large hernia patient complex step procedure and to a that required incisional result the in me are cost correct. surgery long-term variety company's technology for resulting associated invasive The mission. of significant XX% advancements with to addressable Let Due we than the legacy years, of of standard committed high They patient Vicarious over suffering. it of improve with care performed all. XX% generation Surgical, more is to healthcare to XX% additional long performed invasive minimally at still XX currently recovery and million surgical in incisions hospitalization using for the to

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and area. can in operate visualization and strength a motion, limited include only challenges Additional small

single laparoscopic The invasive virtually assisted transports continue to used of and the incision as majority inside intend surgery. the of perform surgical Surgical, well minimally robotics, the minimally science Vicarious robotic to At next XD visualization robotic procedure. techniques the non-robotic build reasons, be system deliver to surgical generation current of these shortcomings For miniature to and an as in surgeons robot invasive surgery advanced surgery, deliver in combines cases. computer we Vicarious vast patient to intelligent that open

motion per to in procedures force, any and instrument on angle rotates on arm degrees to imaging abdomen is contains and patient surface equivalent actuators surgical three XX degrees multiple without Vicarious from enter real-time of with robotic procedures sensors In with the The that proprietary upper akin system data Our provides natural key freedom more and body surgical nearly our to that's any more outcome. nearly to camera other direction human work enable and in conducted surgeons nearly enable abdomen. intended the per the cadavers, stereoscopic allows A surgeon's and surgeon the in incisions. the of to own arm every designed of feedback surgeon an also nine enhance motion system experience providing movement. decoupled freedom

and system to is much its value much and be point ambulatory efficient expenses surgical is in comparison our The technology price legacy technical to facility. sterilization size not will the room easily operating ambulatory to be systems. so clear. and learn, to provide would within use we procedures with engineering Hospitals room moving operating healthcare enable advantages, throughout centers turnover. With to to system cost-effective Beyond centers an the and allow and overall to dedicate required existing designed to during surgical product to significantly reducing system Vicarious performed more hospitals space with more the a to patient, risk intend is smaller, faster setup, our reducing setup excellent flexible dexterity surgical enable and relating effectively be It's capability is procedure. abdominal costs. designed robotic proposition to less system, a injury the many permanent medical Unlike and from cavity, robotic

mobility and motion thoughtful and the our and design barriers created prototype the of specifically adoption. system natural to human feedback location. of was ease and Our adapted validates from physician setup use Surgeon to system's current training value toward to location address

FDA, breakthrough as kind clinical from are its the the of targeting is designation a receive we first first the to robotics application. our for indication ventral specifically Our which hernia

tissue and the by excited soft are we gastrointestinal hernia, hernia, abdominal of array of procedures. procedure types and including potential to ventral an hysterectomy, other target pelvic cholecystectomy Beyond certain other

are the to We we plan announce a a to have in pre-submission pleased have - and including beta that of announce we form units, we multiple have to we filed regulatory which FDA. developed prototypes the just are pleased that detailed

we are regulatory to on file late by indications testing the single minimize system to to Today, are market beta Vicarious we a plan We thereafter. to for hernia intend to and risk proud well minimize our Our time our XXX(k) focused application successful hospitals. is other focusing indication. system ventral of by Beta initially procedures also way with a and for surgeons that on XXXX and first announce

have integrated ensure utilize surgeon to The first our that is X need. and system ergonomics. exactly what attributes hospitals We continued and value was and surgeons clinical feedback of and since as our such feedback to critical transport five collect hospital to across device then, workflow units over on summer, complete we the plan Beta to

Thus Our testing X that formative the our confirmed plan X. results XXXX. we ultimately further our testing as toward we system Beta have the includes hospitals, surgeons far, Beta forward of of will testing to later begin and look support patients, FDA to continued submission and proposition work in our value

history. support as SPAC as first are base This and many sponsor, Holdings, quarterly third the development for broad by now and our call call of Chief known Officer to discussion honored from a Kelly, Bill proud luminaries innovative the the quarter. well as our story and the technology supporting our results DX financial will turn of of our of members the in I Financial marks over formerly we

Bill Kelly

new total which have are all our are recently timelines transaction this and key execute and company. $XXX we us in the we which on Adam with continuing our ticker you, completed U.S. successfully comments Holdings planned With over to that thank merger financing, resulted of after pleased proceeds with symbol our were several prevalent our forward very development hospital and approximately a in financing like very Dickinson demonstrate we can forward. transaction market York become months. Thank across able our to Despite multiple us of September well look strategic and the which to New the that million going joining for chains on Through that update and begin, redemptions pleased on you and with Stock few RBOT. should transactions, about all to regulatory to continue on progress Exchange closed SPAC today. the $XXX we proceeds including, To under XX closed that coming in we Asia, you in we to investors secured, make Becton as serve validation DX successful the million I'd Corporation, net technical increasingly and costs this the addition both listing

headcount quarter the was in of net the net for attributed were quarter of to primarily adjusted loss XXXX. the share XX% to related $X.X $X.X of and expenses the increased materials operating of expanded from increase by million new $X.X services for for the administrative million third was to $X.X in net compared period million the the XXXX Net a the of increase facility adjusted quarter million $X.X the sales continued million, net or million transition for of quarter. attributed third or for a $XX.X the XXXX loss equating third loss of for loss of compared headquarters can same expenses headcount, $X.X share an an $X.XX company driven $X.X net Total the increased per in particularly of expenses and equating a were in quarter and the third R&D XXXX adjusted Sales our fees, the expenses of increase third compared $X.XX XXXX. prior with for the increase and loss headcount for quarter to expanded share third loss new per the of million of compared primarily same million and increase of costs as R&D to to were can results share $X.XX marketing associated XXXX. our expenses $X.X being loss quarter of personnel related to as primarily associated net public a prior per loss $X.XX $X.X XXXX in per and in share expenses was Turning as of the Adjusted The $X.X of compared The in General the third expenses to be third a headquarters. merger development of Vicarious net of G&A increased $X.X with third to to well The System. year. the be the professional million increased third a and in quarter million XXX% million to quarter to increased were quarter expenses, period XXXX. quarter activity. million the an as per and marketing and year.

our the with and reconciliation We equivalents. non-GAAP cash please release. million For cash $XXX review a GAAP, measures of ended these quarter of to earnings

merger Our is third quarter the of which bolstered the by combination XXXX gross concurrent million closed the excluding of cash provided PIPE for million burn transactions $XXX recent business proceeds. recently rate impact $XX.X in our

continued as quarter the We in $XX of expect development sheet million cash the burn normalizes fourth of the to our million system. $XX balance in Vicarious

proud we Overall, approximately $XX strengthened regulatory initiatives recent to of in as Adam? we advance and forward to Surgical fiscal I'll our quarters balance XXXX. clinical million our updates $XX the turn Adam. expect are million believe very As and on sheet year we we is execute we burn that development, to look in future and We providing properties, cash transaction of call bright. And the our the ahead. Vicarious development of with back

Adam Sachs

commenting Thanks Bill. our ahead. I'd close the the and company's aspects footprint, of and to leadership expansion on into two growth by our like critical years positioning our of team

to standard Officer, the Strategy. In executive to be on Pratt as addition for team addition Their have care we General to of expertise our been Counsel Vice invaluable Financial with and minimally of the Michael respective has Bill's of June continue embark transforming we appointment to expanded path procedure. and Chief President invasive Commercial as as will the Morris

recently new innovation. expand is technological by vital our Vicarious This a building square facility campus lease a area budding manufacturing in Surgical and famous in addition, for to development, feet testing Waltham, In for capabilities signed represents step an we out toward Massachusetts. another XX,XXX and

toward the Q&A? the call. life. please positioned well together would Surgical you brought joining are With last we today's our again Operator, people to future all of open steer patient year, and for for improving capital, up the Thank goal over you of resources Vicarious

Operator

comes The Zimmerman line Instructions] Ryan with of [Operator BTIG. question first the from

proceed. may You

Ryan Zimmerman

gate right, quarter All here. congrats well, out first the

to talk the more or you of pre-submission if that question. kind the and I may follow-up hear talked a the any could color about should So, to you may I do from their Then, not thus a wondering or far around when say component? FDA, color you give around the wanted about FDA to expect them, and few just submission Adam, what components. you to I'm be provide a other feedback have roadmap can

Adam Sachs

question Well, Ryan. Absolutely. thanks so for much the

close what with and we the going and/or under the the the it's especially been we've a the we're the what's pleased overall. the to had At provided, relationship incredibly submission, able FDA's feedback so day, to of without be FDA, not decision of of So, to and be come engagement to of backlogged breakthrough as or I'd on a and end they've designation with ultimately expect have that speculate months. They prefer they that. amount say. soon are as fairly to and at not We do we'll all expect results sharing over after come may conclusion number we back may to an and some the agreement forth end a the

Ryan Zimmerman

the I Bill, And color Thank and then, of sales but imagine commentary than R&D also terms burn just taking quarter commentary questions. cash modeling of, around but kind appreciate marketing for cash think the for fourth we more as next loaded and directional initially, next there really about any year? any for around so the much you for your would in that's year; not burn,

Bill Kelly

and what as we're regulatory well. in our providing predominant call on think the obviously fact obviously overall not quarter includes is the the thanks which for burn no, cash as first guidance it. you've appreciate Yes, the really development well R&D, in the on as I is both system Yes, as of process we've spending us had actual seen joining

we line year the spending but to develop as and going year R&D of so you're Strategy said, towards over So, think marketing think see that time. being I I start the lion's related, that the of share end towards see to of Commercial you'll our item that did more this this being middle - Head the Spratt Michael yes, of but hire so

Operator

Genuity. Rose with Canaccord from The comes the next of line Kyle question

may You proceed.

Kyle Rose

again, for here said questions. Ryan thank quarter congrats first And Great, on like as a the public you company. the

from what typically thing be commercial? systems companies, one some understand help do invest the of the side us understand, the do us from into So, or really I so don't was PIPE and SPAC ask some we can commercialization international they help just investor and see a around of if from investors; we beta about what in your of mean perspective help just just you us U.S. flip should how wanted the to broader do I both relationship help rights does understand if to type thinking of that about just a have maybe you adding perspective model that for any layering a the base when shareholder type just and you comments

Adam Sachs

Yes.

answer specifically the rights special special investments. are XXX color specific and to and it is we potential they you the any ensure us of rights want, special of rights, it that? with exactly do thousands like what have with are product our market. hundreds are tricky were of incredibly bit much but bring is our we - lot Bill, hope our major today working bring one our to a in of answer customers want them So, to invested they technology inside ones in the of huge become want no These for and for you'd of thousands FDA thank what to are total us company, partners their there the had between our all, the operating in our - any of so question to that multiple they the to alright. and when because that surgeons hospital, fact will provided engagement chains of investment, is also To over that we of there potential proud We've there future exactly be hospital no customers. hospital This you from a to aware any outside of first engaged is staff opportunities add are about with chains rooms, States, of these tomorrow United and the investors have our question. hospital including and

Bill Kelly

no, you think Yes, on right the hit I head. it

us when engaged twice was of to pleased sure, very For stated of involvement we none are started fact with level any think described received in that. obviously pleased or strategic of back it hospital we the supportive we to reach I and with (inaudible) shows all about this just investors we process our investors any hospitals we they this PIPE, because extremely rights. to and got I systems, in has and of the engage of them feel that But, then are wanted what that out bringing system our just special actually appreciative it excited is multiple of

Operator

of comes Piper The next question from the line with Maeder Adam Sandler.

proceed. may You

Adam Maeder

Adam. Vicarious This And, engagement going? is questions. centers come those is ASCs the and are for to clinicians you'd physicians hands wanted Vicarious any on Simran through or on guys Thank the so robot of commentary on large taking with and hospital How I you how your to of for like touch these physicians development the have associated with systems - share? academic of headquarters many feedback that current

Adam Sachs

of both and through to thoroughly I to our States. they we've They've a room staff number hospitals and all as had academic larger ASCs beta are of well hospital chains question? every for-profit it's engaged system exactly have that whole examine bunch outside with the in centers, a working United the our many we've smaller facilities way include sure large been to Though invested through at across going mentioned that Did make answer in other including as chains we're and feature as as chains hospital those there as level operating well understand the academic of us addition your It testing and hospitals, hospital want. what surgeons inside centers, you does different been [CX] community with. us

Adam Maeder

I standpoint? on on both or from Yes, maybe us spend And things little and of side looking, subsequent quantitatively the that you ask are perfect. understand was more how OpEx Could pace bit help an could maybe SG&A in no, then, R&D of things qualitatively? quarters

Bill Kelly

a it's good question. Yes,

very have. to guidance obviously think I we back they the that reiterate

coming end look the November transaction up we're at as XX. - really now QX up on this you quarter will of here coming to you out of see If the

as again is this get the is significantly spend that - of CapEx pure involved year, can for for going is $XX well, majority provided and into million of point to For QX burn run where the continue QX, us million majority rate trajectory XXXX, and of that from you of some significant cash $XX but with the you in we if vast $XX million our see $XX about we guidance definitely year is total OpEx to then to very next for [indiscernible]. cash and a the guidance there that sure those million OpEx

Operator

line from The Josh of with next question come Cowen. Jennings will the

You may proceed.

Joshua Jennings

to and [indiscernible]. the on manufacturing and guess front? well, your the towards I few early expecting you anything vessel but the just you can about sterile one a similar can how great the earnings over the the in and VR and a manufacturing to disposable, public questions. timing work - should next be them, those be then you're on pipeline we just moving of kind portfolio? XX the fully Thanks it's also the system is but wanted X days manufacturing post-commercialization to be taking you your next to just gentlemen, system second and I the development as Thanks your of portion one on key ask goals about first XX give question projects. talk have, development additions months the of call and Beta what of in roadmap what years; may sealing us pipeline And, but is features for clip think are And, development

Adam Sachs

good Yes, question.

with of additional So, features. let's start the launch

in and many you that along, applying very sealing, mentioned ones far the them clip to fact our the from functionality are in VR development vessel those between added system, are of So, time to in we add might regulatory expect any data our our to unnecessary clinical and filing that's additional risk main but for we require clearance delay want them don't market. to that currently,

manufacturing be initial to after the - ultimately, of is our each are the be But the discretion these product will timing, we fairly a out launch. are there a be FDA and but reason To of building So, there's at of and - system, launch. instruments expect well. sequence service also equipment capital the not we're those that that's complex manufacturing, accessories, will them as manufacturing of process function the question, following goals, it's our in manufacturing launched support again, the there's that certainly a our in following and initial directly the shortly there's exact lot

So, these XX,XXX - feet, clean chunk sterile out as existing big door well in facility be the next a manufacturers, this of out a room some manufacturing space production partnering well And, We're capability disposable. in with it's converting the in-house with individual major out process each additional one of for significantly of is building biggest initiative. cases we've existing both for our as that. some of contract cases to than part we'll and as have of new for an components that reasons facility into the more and our and facility building that sub-assemblies built square as of

Operator

with Matt Suisse. next The question come line of from will the Miksic Credit

You may proceed.

Matt Miksic

evening you're the Good said, initially described and was and think units, think for that questions. what and or what had congrats one have I on - echoing everyone of map the said has sort next your getting X out sort here criteria maybe could or thanks or the the getting five of timeline you on for first then to just that first I the next you like the still cycle? call far, Beat what taking and follow-up. pathway you other units else of plan Adam what one out the the for I that's that I And, for then we're look if

Adam Sachs

primarily to and more engineering and We can four going are they're as remainder them continued staff. purposes expect One certainly share to going of are future. to the and production, near and all units or hospital for the in with info completed we them currently currently them be - be in then so testing remaining actually Yes, be testing in of are happens. that two testing the for surgeons

Matt Miksic

for of of and of regulatory great, growth given part sort to years curve at and facilities and but it growth thought into people new would talk might you've now about a the execution with I that I be be That's number expanding helpful steep and bringing this at are and then is just, been facing now, this just be and helpful hear the where a you night on you thought pathway, it the of challenges, XX in everyone through you helpful environment challenges another, keeps to getting terms what up one time? X, or the the, are kind through that stay it'd maybe what need are what some of moving and at in of in to what months' things XX, your next

Adam Sachs

very Yes, a good it's question.

challenges and our achieving effectively grown night, building what building exactly right. and our plan and what end engagement. is I answer it been company me up our grown we're to our think company and down of directly to any there day, of we're associated stages the your team are milestones our in a sure and you early complex. is keeps question lot of have the product At about effectively what - regulatory making the at that incredibly We've keeps with to really comes successful really really really proud up

have want C-suite from We we the believe that all have with to so really and to sure staff a for a turned and it's everything successfully technology and provides the important. hospitals through operating engaging we product And, incredibly night perfect make to day into and why difference technology way that we're is and the demanding surgeons scrub sure everywhere customers, just right. many that firmly that that's many including the level making we very surgeon techs, room exactly rightly is legacy circulating a so nurses, against technology advantages

Operator

give waiting this There Adam I'll so back remarks. to pass closing additional at are no it time, questions to

Adam Sachs

earnings everybody joining you as very thank evening. call our Well, much Have a a first wonderful company. you. public for Thank

Operator

the your concludes day. and That the your conference call. you rest participation for enjoy Thank of

Vicarious Surgical (RBOT) 9 Nov 212021 Q3 Earnings call transcript