Earnings call transcript Q1 2023

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Operator

Good afternoon, and welcome to Vicarious Surgical's First Quarter 2023 Earnings Conference Call.

My name is Alisa, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. We'll 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.

turn for over a to with Kaitlyn like Surgical Vicarious few now the to call Brosco I'd introductory comments.

Kaitlyn Brosco

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

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

otherwise. or to projections because our or set forward-looking most Form in Vicarious contains uncertainties our XX, broadcast live required revise any our or information business, information, with by the whether XX-K Surgical forth and risks and please law, of filings, associated list the conference May a update as XX-Q. and of only as accurate to risk disclaims description statements, call new events Form For intention any factors the except and is future Exchange XXXX. time-sensitive obligation, recent refer of or This including Securities financial Commission and today,

Officer. over to the Executive Adam that, Sachs, Chief now call turn I'll With

Adam Sachs

all every OR for surgical Vicarious vision, Surgical, enabling and actuator economics. you, streamline and for envision for surgeon. thank and a and robotics reengineered we joining Driven the our At from patient every we afternoon training capabilities, Good superior achieved exceptional workflow up [ph], future compelling by are surgical us. outcomes by

that, that More best-in-class of incorporation safeguards collection, visualization, our system information robotically the enable architecture is will than in unique all and unlocks data collect to performed key sensing designed procedures. that key automated

It for unlock is of potential us sensing that combination surgery. to safety digital our will and the unique efficient practical enable with architecture true automation of

realizing month, important vision system. we with toward last lock our of the an took our step design the X.X In version

Our system team quarter Group, surgeons Beta inform feedback and XXXX, a X Center spent Excellence across our our design shape the system. VX.X our and other of of the on of to partners extensive collecting handful of surgeon Luminary leading first

In refine platform. system QX dozen total, with drive continue we administrators had providing to alone as almost assistants we surgeons invaluable in numerous two test our and insights also our latest system room operating robotic robotic hospital

potential garnering understand feedback system we on a of reminder, broad for better from iterating we a not hernia. By indications. As system of of are a number our spectrum the just specialties, ventral across our

hernia, Beta hernia, as ventral cholecystectomy in our models to addition used hysterectomy, for GI X resection. system have bowel cadaveric In we such inguinal procedures and

of of core with cadaveric Center time headquarters. training morning steps high-volume surgeon spent at full hosted and recently a This For gynaecologist system one for day Excellence a partners we in our the a afternoon. for hysterectomy performed from the instance, of our our first the

leverage with System, excited with and hours of using our potential confidence provide of renewed our motion dexterity the just in additional value year team and versatility only the procedure set the Not a and of to greater procedures. and progress him Vicarious familiarity across work range was current from walked diverse watch through it the the systems procedure but the encouraging away to of cadaveric to around

increased confined spaces, Informed motion VX.X and these long-term with motor a refinement incorporates to by our further we refined of improve will value in which will quality for We and restructured system our joint pipeline, enhancements, profile believe arms into include higher controls processing dexterity system's in first image the a the greater design of believe the number changes quarter, software proposition. gathered architecture. reducing our enable insights These the along the system with safety. video and electronic life

of believe and that are now processes verification to on the required testing, technical our best-in-class functional capabilities through achieves system manufacturing of a ahead we development focused of deliver ensure units formal specifications safety we extensive locked, profile. design the VX.X We and assembly With testing. will

Part requires hard expenses a our While our work, we longer response, parallel mitigate of to maintaining efforts team are emerging risk. path streamlined to remains market In organizational environment for persists. we runway. growth multiple at line structure challenging reduce to our extend more companies contingencies no cash time a

this our naturally to of current expressed delays introduces time prior call, risk we As in lines.

our executing adaptable defining in the success. hand the our task and and Vicarious to Our collaborating formal Surgical heads submission continued down, a continue is of we excited on we're team market. is work on work, at remains All to at path FDA ensuring the the XXXX with the toward agency hard flexible technology rest to all, bringing team as and

I'll Kelly, that, our over Chief to call Bill Officer. Financial turn Bill? the With

William Kelly

XXXX expenses R&D first compared a expenses of the quarter XX% the first for XXXX. quarter $X.X of first $X.X the in for the and for Adam, the in XXXX. were in of sales of I'll million quarter XXXX General $XX.X us were first quarter with quarter XXXX Thank quarter of you, administrative first operating XXXX first million And expenses you from million first and $X were expenses thank in compared in for million million, marketing increase joining of compared of Total million million $X.X XXXX $XX.X of first our quarter today. the all were to million the $XX.X start and quarter quarter the XXXX. to results. to first XXXX. $X

operating expense year-over-year higher in increased increase partially in income million overall by predominantly headcount, interest by interest $X.X rates. a increase to was driven due primarily The offset

compares share first of adjusted was of net GAAP for period net XXXX of $XX.X equating warrant million, the as $XX.X first the the loss million net compared share, net in of diluted $XX.X of respectively, from or million adjusted basic million, XXXX income equating an of fair net $X.XX the Adjusted or $X.XX the to a to share year quarter a prior liability. The our a income net $X.XX of per was year. per adjusted this value quarter prior a same $XX.X and loss same for the of million prior net the of in to loss benefited share, $X.XX $XX.X reduction to for an period per and an loss loss year. per and for in net loss $X.XX

a non-GAAP release. measures GAAP, please our reconciliation of For to review all earnings press

end $XX representing the $XX.X cash cash the million, equivalents burn approximately short-term investments were and At cash, overall of an million. of quarter, first

year of timing our for be cash $XX to were to and full XXXX million between due While we cash can the elevated quarter to payments, continue burn to $XX slightly vary expenditures expect million.

market that high continue particularly in our we Adam be heard processes. regulatory and earlier, disciplined development initiatives committed value-generating environment spending, to to this in you As investing only and advance state

on expense first a market and robotic has The potential expand differentiated a together required I'm and our rallied difficult to Vicarious meaningfully delivering the of regarding allow team decisions focused proud remain worldwide. quarter number personnel system investments, of the robotic patients benefit with and but Surgical to

And now closing remarks. for call the Adam I'll to back turn over

Adam Sachs

foundation perseverance, hand the well ahead. executing as our is The the bright Thank essential and regulatory DNA regulatory of developing a is our while focused company revolutionizing approach our at the innovation we is grit you, set believe outcomes. for our that Bill. to as our it requires surgical strategy exceptional bills process, enabling thoughtful in especially access closing, surgery In development to greater market, fundamental -- organization will and today's future. innovation of achieving market remain and confident on approach on and to We pathway pursuit

over I'll turn to call Q&A. operator for With Operator? our the that,

Operator

[Operator Instructions].

line first with of Ryan from the Zimmerman BTIG. question comes Our

Your now line open. is

UnidentifiedAnalyst

this on one the updates on congrats and all Sam Ryan the is any wondering on on you. trial I hernia was and have progress I if with clinical for quarter. the ventral based FDA This provide follow-up. Thank having us then could with you're you discussions

Adam Sachs

so the Yes. much question. Thanks for

conversations agency the realize we while to pleased this with this the it's and of the really future. discussions provided meeting to details details with in we a still I about And we're do submission. our agency, since providing the continue on a the detailed far. been Candidly, and -- and are looking on of trial been update that an we're near the We update so the a on basis in that progress regular forward more have relationship the progress with and

UnidentifiedAnalyst

you any again insurance partnership large our umbrella? you. Thanks taking University their Thank given received Pittsburgh Medical feedback from reimbursement-related Have the of questions. Center for

Adam Sachs

don't good involved right our definitely as partners. with an now, and for procedural well but economics you detailed have back them conversations been We've the as with can answer. really I understanding a question. It's the other details get that the to in of a I answer

Operator

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

Your line is open. now

Kyle Rose

One questions. far the is just regulatory just a to much trial we the on and and very remind FDA FDA a lines future prior some Can you time the you for you runway Thank and I conversations perspective. and And the just time you now, needs? thoughts of get as line Great. where conversations, us are decisions then with few me. the you'll market. taking question guess just expect obviously, trial confirm could just complete for about to cash streamlining cash the the when secondarily, from made as

Adam Sachs

Yes.

dependent what's as have actually FDA end to next balance system question authorization So year details conversations testing trial. submissions device year of verification happen specific the the testing through specifically sort a being of That around in summited versus we I'll end things, highly of still use with interim through well of the in our of year, exactly variety and an the said, tracking of tested as good, clinical the first XXXX. what's of validation there. including for The are of start being on are when like a build-outs being the really definitely but been tested submission

off a specific a pass of around order production have. to the focused line for time that of but impact Bill and an in non-R&D really specifically reminder, to that G&A risk details we the might reduction, kind it as the I'll to minimize

William Kelly

Yes, exactly.

$XXX of million cash million $XX we and burn. we've guided last recall to So million $XX of cash, with you may that year closed to

retrospect, it's to, longer to As us streamline years' we we Adam this operations. alluded burn that a worth I of difficult in much given stay very obviously, we cash. year's decisions, two made think since our effectively But runway rate, have some

a in thereafter. So and that upheaval saw changes, Obviously, we us almost market, those lot difficult a announced the optionality. gives immediately obviously, banking of you

So and we're remains right opportunistic. the comfortable with at and every us to we'll financing that. obviously, virtually look available be would option say I to time conditions,

Kyle Rose

just ventral gathering one regulatory the Great. from impact one to that that any other is for specialties, the and And seeing change you're last feedback would me anything the lines guess it Thank its that utility? we're time then functions for in you. Or the for how hernia? robot I expectations

Adam Sachs

Yes.

exciting already it and we the been launch. hernia rapid of incorporated first initial follow of committed really have gathering So the is step indication, actually of We've frankly it X many after gathering but to additional remain about system. are excited and indications, indications this and our it lot a have version and feedback. X.X Ventral we is into a incredibly an on Beta start, to

indications has So do what the a meaningful to value really does around that capability of that provide confirmed system additional it in our really and done it lot them. order has is these

then ready incredible out So in so of confirming an it's the and offering. refined sure to that bit map little all moved workflow we're these details to by and we have making bring indications, around a market, them that we started actually additional the really when into

Operator

from comes question next of TD with Josh Our Cowen. the line Jennings

You may proceed.

UnidentifiedAnalyst

designs the on This version Josh. to impact robotic made design your the with made changes is pricing curious Thanks to get strategy I question. for Does there. taking to with for that the was Vicarious system? thoughts X.X. -- Eric Just your just curious

Adam Sachs

take one. we of the Yes, this start

to remains X.X. position to that We from sufficiently goods Beta version of are us of it fortunate really a X that's gives goods changes cost fairly true pricing the to flexible have and cost with from -- low that

can initial we have. the So flexible remain remain pricing pricing And capability our we tolerance encouraged had pricing feedback and of system after in the we've for incredibly that launch. that by about

UnidentifiedAnalyst

you're and milestones? hear. systems that? that do as accomplish verification then great should testing, you'll testing mind And to there approaching need as to component That's issues you any keep many And in Okay. supply you're those how we validation think approaching are

Adam Sachs

Yes.

of handful small not haven't And Everything seeing to number needing we're is date. any system, chain before chain VNB delays data by in systems component the supply parts in our single that frankly, is every about of directly So seen need expect order constrained and the in more our it integrate [ph] test testing of clinical quantity that really and on it a we're we're supply be do Overall, just coming for and enough collection. a to to and system. quantity. around to It version is already system. we'll is complex to to issues ready excited because and components X.X ability source low reason is order,

UnidentifiedAnalyst

great. That's for Okay. questions. Thanks taking the

Operator

Thank That you Mr. Jennings today's all concludes for participation. your Thank you call. [ph].

may your now You lines. disconnect

Vicarious Surgical (RBOT) 8 May 232023 Q1 Earnings call transcript