RBOT - Earnings call transcript Q2 2022

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Operator

Good afternoon and welcome to Vicarious Surgical's Second Quarter 2022 Earnings Conference Call. My name is Brica, and I will 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 Investor conference for Relations remarks. like Brosco, to some now of Director of would turn over the Kaitlyn introductory I Vicarious Surgical

Kaitlyn, So, begin. may you

Kaitlyn Brosco

today's you Thanks available thank results on release A for ended website. released all copy call. months financial Earlier three the XXth, for preliminary Brica company's unaudited today, you is participating June and the of Surgical Vicarious press in XXXX. the

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

of by only XXXX XXXX. XXst, filed intention law, Exchange Vicarious report with obligation, except the with risks today, Factors XX-K Surgical as our time-to-time. required contains and or is Chief for live SEC file Commission or as forth or turn business, events, refer revise Risk call with please we Executive otherwise. financial of may Form forward-looking and information, or a set will December time-sensitive of the year Securities from on to Officer. For ended call the Adam any our list annual broadcast our any to descriptions and March reports XXst, whether future the conference This disclaims information And uncertainties with XXXX the the filed projections associated and in the accurate over new because to I and update August Xth, that, Sachs, statements, on

Adam Sachs

what I able Kate. Good call. proud on joining by With earnings very for to Kelly, thank was today start how of off Bill and all since is Officer. team you today's our accomplish Thanks want afternoon saying me our our Chief us last to am I Financial call.

agreements cutting-edge outcomes of FDA our to technology agreements monumental will We of surgical forefront country, HCA are training. with and of supporting launch. widely HCA on that healthcare promised center care center two in the Generally, Healthcare Hospital. and robotics our setting deploying excellence for and have health advances the excellence but At field not clearance, post-market to networks clinical the thrilled delivers commercial focus in top improved executed are of patient they course and trials, innovation, platform, recognized just UH University one, of leaders finalization the be the the of and and as surgeon

current Trauma addresses validation throughout partnerships relationships, associated -- long-term we technique. of to procedures surgery payments much Despite than to surgery. objective allies surgical times, annual surgical the leverage suffering. our with estimated addressable in XX XX% and of these market. XX of significant collaborate robotic-assisted that However, partnership phases In advances and over in last invasive deeper. the laparoscopic robots Surgical's hospitalization formalizing powerful more ecosystem solution that is development, bringing to techniques million minimally the today, years, shortcomings launch cost to extensive results by excuse These surgery, directly these go multiyear to large establish are and invasive verification, robotic minimally high Vicarious incisions the using technology, product long epitomize are open care of deliver proud recovery a to full next-generation our performed open learn clinical, from and still it

features technical to marketed minimally including of high address from required but other advantages and by trocar limited current our solution deliver potential invasive size. While of and short of and requirements, techniques systems laparoscopic coordination leading Surgical to administrators, And system reach and some our Currently limitations, and are of visibility surgery, of and technical to offer number extensive these by actuators substantial surgeons factors. techniques various unmet needs as as to are proprietary with enabled instruments, reduced smaller advanced surgical These technical platform, perception all to a seek and need. degrees by well direct the hospital further collaboratively the compared surgeons decoupled test limited manipulation Vicarious able our due the visualization associated fall valuable and advantages freedom customers. dexterity meet to for reasons, future in robotic significant validate blocks also costs The depth with as solution significant refined these a settings robotic training we through improved see insights designed team. adoption a difficult incorporating

system a procedures Surgical and by doing faced and In procedural across aim improve care and supply systems hospital patient workflow, associated mitigate to attractive hospitals standard design, to intricate costs. operational better management collaboration more to our challenges so, we at chain more efficient enabled today. Additionally, effective of -- the empower economics clinical with Vicarious

we play world, confident surgeons patients with of choosing overall as these sincerely development surgeon important and us. further excellence and the comprise, hospital from across commercial by achieved to leading a are result, team, and strategy plus input for hospitals the XXX our center technology working adoption. a talented role Concurrent they group. partnerships, center with we each our platform leveraging and are an in to and unique widespread to excellence of and doors needs of Vicarious I grateful their that needs partnerships our our also am our together open hospital systems optimized strategy, Our and their provide of commercial meet luminary Surgical the will hospitals

this feedback. group announced our hospital an last ongoing Dr. XX by of robotics of expands most across quarter, surgeons led we is the Bellinski leaders XX in a and As providing additional experience talented development systems, in innovative access to Igor

also cadaveric details eventual hernia procedure take in hospital have the around ability environment We design, would enthusiasm robotics on platform platform. in the X we're operating. and robotic that beginning we continue focus completed receive the to a ergonomic Beta X system these phase we its our of surgeons. to in a share development to we strong X demonstrating which platform the continue toward next and from the are Beta our plan ultimately strides to regard, make Beta moment great In surgeon and move to operate. our business the prototypes, previous and beta capabilities, Updates abdominal build. for freely year. through a sensing I enhanced of improved their changes acknowledge feedback bringing which comfort, visualization the expanding the positive ergonomic very enable greater on this significant access and within integration we to setting, later is like motion which towards to further With market the our surgeon capabilities This to X initial step cavity to

and of that we time line. team's and supply experienced chain these to-date. challenges As continue, our If other challenges our they respond ability semiconductor That mitigate up of our challenges to of risk noted. limited delays increasingly More chips tremendously we the most said, can proud to we've these face am shortages peers I and present a ramp operations, and same in many to have months. supply hardware recent of specifically, our

internal to opportunities continue supply to supply details enhance and key evaluate for and design components build our our We product constrained redundancies multi-source chain chain risk. address of the to

Given are for This we quarter been Vicarious exciting environment. these in factors, we this an well has Surgical. positioned believe

as the will the center as foundation more group, expanded and will traction. Surgical outreach of help the and significantly have of for Vicarious optimize relationships partnership. commercial announced serve with recently excellent hospital development the We first luminary as These strong our surgeon platform the well surgeon

discussion In quarter will call setting. be believe of we meaningful enhance delivering to continue differentiated for towards technology, hospital which second our Bill positioned ecosystem, I unique our the progress make for and access, we leveraging a Surgical uniquely now and our effective hospital surgeon over to a turn results. a financial addition, into switch disruptive Vicarious integration will

Bill Kelly

million million, in up beta the net the for of in adjusted excludes $XX.X to of administrative today. our loss equating $X.XX year. basic per million expenses due continued $X.X equating fair an per within the same of loss you, inclusive all quarter for of second and share adjusted value a to and for prior to year, loss opposed an $XX.X second loss $XX.X expenses. $X.XX you of million, second period loss, million million of loss X necessary per $X.X $XX.X in million share, marketing million net prior Adjusted prior of the for and the of net and from development Total quarter, year. a XXXX R&D $X.X and general of expenses $X.X in liabilities, loss internal expansion loss net operating our a an as per in of teams. for quarter Thank was was for as million net adjusted platform which adjustment thank of respectively, GAAP share, joining $X.X basic were million, were compared net second $X.XX another or to Adam, for same and share expenses warrant quarter the the in the $X.XX net period the diluted of a or primarily the of changes us Operating to sales our the $X.X investment expenses

a additional XXXX of GAAP, reconciliation detail please regarding non-GAAP release. second press our earnings quarter our to financial measures all and review results For

quarter second was for of cash equivalents. ended cash burn of for the million, cash and -- $XXX quarter million quarter Our $XX.X we and XXXX the the with

our clinical As burn development, and full continue million. we year processes, XXXX $XX cash expect regulatory we to approximately to million $XX advance of

sheet. continue million cash $XXX with cash approximately to equivalents anticipate such, year also the As ending balance in we on our and

forward Adam. look quarters made the We we that, to call back we've come. And sharing are to-date. excited the to in progress the I'll further turn And by Adam? with progress to

Adam Sachs

Society like events Bill. surgery XXXX experience for recent for Meeting I'd SAGES Surgical years to Disruptive Both health robotic care Annual you, highlighting at to and important examine Summit. year, close the provide to by our opportunities each the come. of community Robotic the coalesce Technology Surgery of Thank the direction and

market anything, the is and With the to landscape We been. ever leaders next-generation to pleased to from than single-port of is importance panelists expand the community. and differentiated long-term robotic surgery the access appreciated our become the success paramount for than extensive in appetite robotics and it's that more hear The clear enthusiastic surgical It's system emphasize reception adoption. technology large. surgeon were more differentiation and we of participating capability thought a of

these transform surgery. the landscape as surgeon the and at has line you continued the for Operator, call. all attendance our again our open more for well confidence of us please robotic questions? feedback you conferences to Our made Thank in joining as today's would support ability

Operator

first Cowen. question of Our Josh comes Instructions] [Operator you. Jennings from Thank

open, is Josh. line Your

Unidentified Analyst

early the discussions trial be Josh. be on with finalize Hi. around Thank any next updates may question. timeline, year, if the that hoping a This study half place? the for Indication? there any get is good just first but great. timing to for you recent hear Eric finalized, maybe Just And in you. been wondering of plans any Hernia could I we taking trial to the still design for maybe was would Ventral when and hasn't provide thinking detail can if the design FDA Thanks on on

Bill Kelly

Thanks so the much for question.

not with, a the positive We're it's really that FDA say with good forth around back collaborative. design, the the the follow-up, locked we're statistical and off go very in. to our designed line before required. trial. Again, relatively been in pieces in not and going everything continue So details that be starting with Very actually that conversations this indicate a we've again, right of bat we'll having seen thus small but trial specific question. short far the at has just finalize significance I'll very those. the Everything to the trial around with no peers would that that be

our on I I'd trial off to design. commenting end when think is hold on off simply because sign on the they the day, agency's around discretion like specifically timeline specifically the at that, it though, really of the

Unidentified Analyst

be number. assuming Okay. say, less, a a this XX of patients if investigation know a site, patient XX to Understood. few we one Yeah, just a you'll trial? that's you I'm patients not you totally maybe less, fair. trial, blessing do I the you're being or And sites think that is could smaller if number do as at think need or think or complete But

Adam Sachs

the provides think through being That don't multiple as have have risk -- at because We're these HCA given resources Hospitals clinical it variation derisks up the to one them support Healthcare look of really trials, explicitly gives multiple frankly and use process. doing about to trial I as your want us mitigation support the said, actually and typically, that on it well. for lined you in to have sites, we University our enthusiastic well have and to that been helps for basket, a we filing, actually both that agreements for that we from that launch. in it clinical incredible with set simply I'd all well commercial relationships standpoint a support derisk put so broader and probably and And part us a geography, as eggs our up better better can filing. data

Unidentified Analyst

Excellent. so for much the Thank taking questions. you

Adam Sachs

course. Of

Operator

question Piper on Adam of Thank you. We next now have line the the from Sandler. Maeder

question, with may your proceed Adam. You

Unidentified Analyst

Phil all for Adam. you Hi, is hear Adam Bill, me on [ph] right? and this Can

Adam Sachs

Yeah.

Bill Kelly

Yes.

Unidentified Analyst

it has it how headwinds. you've progress Great, start any could to been it could say, you've way? go there these beta detail guess hear I exactly especially navigate great. I impacted I the the Thanks overcome this have, describe hasn't And into been for question. a supply relates able you challenges? to as chain Good But unit, to design to quarter. able macro level, taking X the to in more and the understand from how you just in if would you these

Adam Sachs

the are challenges we're sourcing facing that most So capabilities. today of around

biggest wish So it towards as looking the is and us. a well are and I impacts that change as when the efforts the But way design line really parts ago. drastic time few ways quite as could or where delivered which a two becomes especially highly of in but is amount -- there's were development things, a we're components where future simply unpredictable, predict a some year better I world risk, from we

mind for a for top a the I think and So the component just source, in some that’s were to not best is chip different the critical. We off around arms probably if easily our able and you're able that's particular well. shortage to looking we're redesign component example, specific example that involves of as software my robotic rewriting amount PCB it a ordering some but swap of that and

a just So with as effort just good a And but time additional significant point, with we've product. good a as and as result. up at ended

Unidentified Analyst

terms beta know you ergonomic detail X there feedback in X, of color. that feedback but and for to going into after stick you you understand early, be you've on been beta would X it's visualization able that garner to beta could great? between Thank And But No. I here. were any any those and That's go changes. great. just I if

Adam Sachs

positive. Yeah. has The is an day ergonomic been feedback standpoint. and really It night from overwhelmingly

of just develop Awesome. in actually incredibly the for tell a the has surgeon that on So on, that problems, But patient they the love should little console the beta the improvement. us our seized feedback robot it, resolved were system to that I phenomenal. itself opportunity well, the beta on at were Thank we surgeons bit frankly, think field existing a large. we've just not but back the really you. call and with cart to and feedback X, and the left, lot really opportunity up And

Operator

We you. Thank Kyle now have Rose Canaccord. with

with may question your You Kyle. proceed

Unidentified Analyst

cases your hernia units? questions. center is have excellence on simulator Have Caitlin agreement, on made a to other available set of hospitals for these hospitals? out This Hi. just yet then [indiscernible] been Kyle. these you And use of the broader test of systems already to besides engage couple A And the testing able you repair? to are

Adam Sachs

questions. Great Yes.

the the year, our get testing So simulator, as start now internally partners to close our X well, end to with including of we're that we're with partners to we going we the going is a that for over handful with next opportunity we'll iterations beta indications the and looking design. expand about X other show so of be and well. of have simulator of some few available be X and and COE that more a really this question to beta as the the beta audience partners, of we're course, to have as the that, off broader testing, the within for and network final excited we the tested to partners hospital the fully greatly been at as of hospitals be that And including early by the that mentioned months I today. To incredible looking, partners integrate

that. to really believe opportunity We're that. testing on our indications. question we're off I broader focused indication excited last the And excited about early the show is beyond specifically, the that about doing is we're it So to feedback get

include of that ones some hernia course, we've focused haven't that as mostly believe a we we number including that on some mentioned, [indiscernible]. ventral testing other colis, but So repair, was well, we've that are, indications we've done mentioned the

Operator

question from on you. We line Matt now Thank Barclays. from Miksic another the have

You may proceed Matt. with your question,

Matt Miksic

question. the taking for Thanks Great. Hey.

So, of the Excellence on Center agreements. congrats

I'm bit you little means, out you could. going coming look bit promised a still have together I through together. surprises them team, works. But talk something how one little had or work from any follow-up, how you these sketch this expected what Adam -- who like you're came than things And I as of forward, you the you talked just months this Of understand out standpoint, to maybe differently not XX, that positions maybe plans and over Can maybe a scenario how Steve XX to like. sure folks practical hear about if a this next putting may mentioned, this and a basically say? sketch could what maybe could as this about course, sort of for

Adam Sachs

for absolutely. Yes, Thanks Matt. question, the

deep actually that. surgeons is to the both X to beta and are potential stage, the a just where to that that XX, us we'll systems closely some the the really right and these our care systems then be verification is received with we're us trials to for XX for, we're the these is with and of we're clinical we're months exactly to working well these design and with hospital goal making provide as potential have about in supported after patient beyond. to through design, engagement road that surprised say -- hospitals need which start we've but next as on what of hospital after I'll how system overall finally, will surprises, really feedback, commercialization, our data need pleasantly with collaborate across world. feedback both And incredibly sure the on long-term delivered at always -- validation provides patients. work what their then reception use the for a and based excited to level on incredibly work that the and systems over optimistic the all really changes we’ll be hospital So all are hospitals really positive step better looking that to device, Overall, at device then that the the received, I'll care. that We're system down order better build looking and that making next partnerships we of launching refining getting again, now focused together as what need exactly that the not

Matt Miksic

just That's And follow-up sort time lines. of on simple a great.

do time when to investors one of that putting when timing you prospect had if about front talked you I or just any specific systems the forward? of you've able been in think that have there might curious about you host of a and data be like mind more in event going these was

Adam Sachs

more Still yes, end the the about So at in really around off having of we'll excited exact date a to hospital we're opportunity of it probably be this on detail to and the year, looking follow setting. that. show

Matt Miksic

much. so Thanks Terrific.

Operator

will for As I [Operator no Matt. you, registered, joining. all close Thank call. the have Thank we questions further Instructions] now you

You may now disconnect your lines.

Vicarious Surgical (RBOT) 8 Aug 222022 Q2 Earnings call transcript