ICAD - Earnings call transcript Q1 2021

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Operator

Greetings, welcome to the iCAD, Inc.'s First Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation [Operator Instructions] Please note this conference is being recorded. I would turn the call over to your host, Jeremy Feffer, Investor Relations. Thank you.

begin. may You

Jeremy Feffer

and in Davin, everyone. you Thank Thank call. good participating today's for you, afternoon,

Joining are Areglado, from results XXXX. Stacey Earlier me iCAD afternoon, for Stevens, Executive and this ended President; Officer; the Chief three and March announced Scott iCAD Chief months Officer. Michael Financial financial Klein, XX, Chairman

also meaningful and to iCAD. Management company. operating begin, we note way conference to and by certain would non-GAAP contain management like believes that regarding call involve uncertainties comments risks of that the Before management caution would may the that refer investors the financial future these information the operations reflects view of forward-looking I measures. I measures and they this made provide that results performance for statements, during

a the or said, this With Michael GAAP the to after to XX, no call. Commission, encourage and I the may call is information measures can contains pleasure call only as circumstances to the revise to differ earnings of or forward-looking broadcast, factors conference accurate to obligation or risk over date my Klein. this Mike? that with to those in of reconciliation statements. you of including, materially cause time-sensitive end events XXXX. statements to content date which the the limitation, You reflect XX-Q our actual live conference this undertakes of of that Furthermore, that filings April it's iCAD turn described any events non-GAAP Securities this results company's of and the at XX-K, forms identify release. specific without from Exchange review the find update

Michael Klein

first product and XXXX. of detection our We highlighting financial both in total everyone. year-over-year service in both revenue Jeremy, segments $X.X iCAD's first strong begin to therapy. represented I'd with highlight particular revenue to our iCAD's million, of momentum. top-line a our achieved over and growth QX good performance. quarter and a I'd XX% like in Thank on focus increase a you, quarter like business the few revenue balance metrics afternoon, by and

XX% Our QX last XX% service product XX% compared as sales, year-over-year was detection year. business in growth and This in growth sales. up of year-over-year includes to

important revenue is detection. overall that off of becoming our period service newly Importantly, associated being new an installed Prior coming increasingly ProFound and especially technology replaced aspect AI in XD business, of installation. by are systems are initial the with warranty generation

service go of deeper QX. result detection growth As revenue forward warranty, sales on these recurring Diving roll the a a basis. is off business contract recognition little and of and our into

As we in prior a call. indicated

of five-year adoption Solis branded attachment patient recently areas. XX Local a accelerating both agreement that already centers operates clear as begun by well ProFound in more adoption. campaigns markets clinical other local has stimulating awareness screening Our AI as Mammography, that screening centers, the in in signed than activate states leader XX services industry exclusive and

areas. for Achieving role a broader a and reliant said fundamental significant diverse momentum differentiator our Risk score momentum achieve ahead detection a continued cancers. product more that moderately have this dependent this, not provides large, future available view our nor in and basis QX a of in played deals is QX looks our revenue year, on of goals several offering a as a of sales that scale longer is significant model it's continuing to Importantly, positive sized for two and sales anticipate market healthy indicator in growth our a we to regions and overly as deals, dollar Having mix of basis. And not revenue Risk do broad the moderately business us is large sales specific number a a on cycle, on deals. and penetration for this period. on unique objectives. defined was was quarter multi-million by This sized we limited We probabilities geographically personalized in QX also Mid-to-later licensed as customers breast well ProFound deals deals. sales a pipeline. recurring product subscription iCAD's Assessment is newest key for our offering AI years product potential with

a to luminary transitioning to only with to We experience amass subscription Risk prior continue model. clinical

revenue. the for offerings meaningful, those revenue With note Our and to and subscription, margins. Risk year closely that demands with with strategies Risk us we customer will move provides said, We subscription-based procurement predictable temperament. to towards years. it Revenues split anticipate we recurring is between offering streams opportunity higher that the our go-to-market be and come map for that will important subsequent the current our as

to and a hour also with sales. and the recurring as steadily they has throughput patient towards subscription-based governing We COVID-XX. increasingly screening with Understanding pace have we relatively move to caused continue the per ability backlog catch high value, modulate per strong increase pace which this by up day, sites and prior

Assessment Yet, in that visual sub range. a Risk may or are they ProFound can visible identify exist reminder, cancers a not As discernible today.

some in cutting-edge so before market, unique Risk particularly available Risk future. each Our for growing those large patient Risk the AI years cancers field, the algorithm and XD predict they provides enter physician's can and score a doing still currently outside visual is two for a U.S.

plan curated. launch us Risk carefully has commercial for been our Importantly, XD offering

to sites. early soft leaders luminary at referenced luminary a [ph] believe sites, leverage this moment these X:XX:XX to which Our commercial critical We I experience will be is ago the opinion for of user key it with ongoing. success the from targeted launch product us

offering AI price about ProFound AI's is has into related [ph] improves XXXX Again, how effectively recently that us AI we several for most detection important market. which pace achievements on flagship in QX, cancer taught ProFound to mammogram. of viands detection, the and products. X:XX:XX and launch products started new Our potently to introduce announced our We this detection and today's

that at our the forefront greater underway cancer performance, will installations. mammography iCAD This are have provides and clearance see XX% images, with cases detection years with FDA Compared to keep well to to Risk improvement precision. XD two additional to even millions of already ability previous we with FDA AI We integrate looks X.X in additional systems, this our entry. detection the March, tomosynthesis ProFound to see for lesions XXXX, ability now image the algorithm with of unique of illicit all received XD workstations, innovation. of imaging images. significant there faster technologies We product unlock today. detections AI physicians efficiently this XD malignant along and and competitive mammography with and AI generations ahead. and many are pack and ProFound as that barrier XD for X.X offers solve interpret offering versions clearance Version data version transfer over X.X providers, had each to of We this to for as increasing that software, dealt XX% said years. processing. these a up XXXX past, data detect Digital distinguish the in and more a providers that the ProFound up was breast in I amount we've of and analyze and to And In me an Let that combinations from over are over

each of our images gather to also the further month precision of AI. refine We thousands

assessment, of risk foreseeable years of area the we competition. any believe in we ahead are Additionally,

in offerings. growth Moving the of parallel with our AI

year. in influenced growth our product QX and also due controllers which in last to a and in controller relates including reimbursement, the driven this of in treatment were specifically dermatology in and QX glioblastomas to development to XX% Operative increased represented that, therapy additional to shifts and by heavily like therapy Year-over-year of increase GBMs. the recurrent in search Radiation product air QX provide revenues. an coverage our in change the XX% the QX of by business over With QX. in product to emergence revenues growth Therapy, regulations. of XX% QX move sale of I'd was business detail significant a The million our year-over-year doubled revenue We on sale on service Total experienced IORT, minutes. as it in Stacy positive a as installations few both revenue several XXXX. will Approximately in in or program therapy or initial were factors, service compared $X.X Intra XX

updated in as survival know, group time. the of cancer improvement dramatic to As on both the glioblastoma control free data as indicate survival, rather you areas well a progression to the continues overall endpoint compared

first these Santosh multiple Cancer patients. sites the both multiple is Institute, Our enrolling anticipate patient Kesari, further John prestigious weeks are the and led and to outcomes the designed neuro ahead, in Dr. dual Wayne U.S. is by new occur Europe. We at the recruiting treatment endpoint a oncologist will now prominent study now at in sites validate nationally as

trial to As a assessment reminder, XXX-patient of overall will XX patient survival. the be outcome for this an

The secondary across that adverse clearance to of long be that used overly of have equally pattern expensive progression, of since the Xoft and endpoint yet most a technology, be sites potential the not FDA significant events, cancers. an wide will This disease a already of or can life. is has and assessment quality technology trial, access range

experienced be the take end current endpoint multiple U.S. the for efforts like will while in anticipate data of of well have a beginning a of as may key publication, to that regions The submitted country the preliminary lagging the lift COVID-XX progression some as also few operating mild environment. out pandemic. vaccines scattered disease moderate now I'd Europe the months In to appear recovery is be by behind. moment presence the We cases, in to discuss the uptick or on to of presentation the XXXX.

that for the worth which It XXXX. It we achieved performance versus However, performance. approximately and several to waning reason and on that I in Europe. and offerings remain this, overall what outlook are with referenced detection of conditions been AI XX%, while and cognizant we as of operational operationally QX, QX We top-line both mindful growth highlighting our diligent We efficiency, U.S. managing over multiple we see expenses phase is pleased X% is careful evolving have our still the in our fronts our decreased expenses last the from very business of see operating COVID-XX. quarters. and scheduling, business this assisting in we earlier, truly very operating With our

the both $X.X our was accelerated XXXX than at allowed We leverage of cost to QX pace. realize and combined lower million while iCAD's product losses. release loss continue controls which QX, pretax us growth development in the a surge gains Sales in reduce achieved and team has to XX% productivity goals to above an productivity

$XX.X closed in proceeds of public with the and QX includes which March. successfully ended also offering We our cash million million, equivalents cash of $XX

on quarter areas the may manifest areas in second Commercial we the Looking commercial intend or ahead, in to coverage, our expand The utilizing our specifically, improved and Asia-Pacific in outside in gross and of the broaden may commercial outside we both our margins footprint particularly U.S. emerging we second year, East have for be core into begin patterns half Europe, above U.S. where impact have products. of some iCAD to in OEM regions. intend proceeds as may add efforts, we of metro clearly to or to distributor these activities, an Middle of the adoption move areas. efforts More threshold we reliance broader these

debt retire mention the - of to $XX near use a remains portion modest of our Additionally, to balance of in XX we million our Scott on our amount sheet. plan cash that will

both sheet. instrumental of years. such Interim improving He expense disciplined to on future CFO private today is team by we significantly comprehensive endeavors. Charlie Stacey call. would been in public iCAD discussion a and XX join financial years, continue as time with the CFO and remiss Areglado. is departure this having working and Charlie's subsequent assume valued I expenses wish Carter. iCAD leadership management and to has summary, drive Charlie, team Charles Scott as his look that two during of business seasoned highly is the will the next to a successor Chief goes a grow, if for balance Scott and company onboard revenue I been significant I until now named. didn't well he announce upcoming Charles with improved served pleased CFO the environment. We in confident Scott May and in forward in has we X, experience. as executive executive us I operate a approach mention acumen. Officer be Financial title our vastly for with week member board The have of cash, to who permanent momentum on earnings will very am clinical economic and Finally, to then our In are of last helping our our retained

forward remain a inflection throughout achieved points and our confident have progress growth anticipated. long-term important growth our detection We in highly Both the therapy segments prospects. are growth to business, clear significant look with and palpable rates and continued

towards Scott? steady We flow have an and for and like increasingly sheet turn I'd EBITDA we'll both continued his with strong cash march along of review continue balance top-line to our call over the the financials, Scott positive to now growth.

Scott Areglado

into And for many XX kind last industry-leading I with years people years iCAD the summarize that iCAD quarter spent financial the our ended those am and technology past over results words. so talented medical is for everyone. now you, I'm evolve an fortunate Mike afternoon, March XXXX. I'll that, truly to efforts work Good thank of on the to proud two particularly XX, can first our With team. I company. have as

increase First revenues over of a representing total first XXXX. were quarter increase 'XX, by and Detection increase driven million $X an of XX% quarter of $X.X service increase revenue first were XX% in XXXX as the the of to XXXX revenue. the million first detection XX% XX% revenues compared product $X.X in quarter a million in a or quarter year-over-year $X.X million, in

On to to pure to dollar gross XXXX XX% in first was for quarter first for first gross gross a a of Moving quarter XXXX of profit of the compared XXXX. million on the $X.X profit compared on basis, for was XXXX expenses X% were in the first or by basis, improved XXXX percentage million driven as of million, quarter $X.X profit, XX% the margins the of Gross decrease of XXXX. first million, improvements quarter the were quarter margin operating of for the Total quarter XXXX. service primarily the detection in in first first $X.X quarter from business. $X.X

call prior QX XXXX, our some QX. had number on noted revenue onetime a in we As on items expenses in higher

run-rate. So QX expense is more representative XXXX of our

mentioned earlier, invest we to Mike drive to growth. to long-term As sustainable continue expect during XXXX

associated XXXX million. per Non-GAAP of loss first $X.X onetime net margin loss of convertible in a diluted XXXX the $X.XX of for it of $X.X of metric EBITDA is our committed the last share quarter XXXX managing investments, net or $X.X adjusted QX a million per items in per However, million compared and as loss $X.X adjusted for loss approach share. $X.XX the these in adjusted $XX.X This of million we first to or net a represented share, $X.X loss in loss expenses, $X.X or million, improvement or operating quarter improvements to XXXX. share first eliminates disciplined 'XX quarter per non-GAAP as to the reflected remain million which $X.XX adjusted the $X.XX non-GAAP first highlights which of Non-GAAP was EBITDA XXXX with an as the year. retiring debentures quarter for of of diluted to first million was quarter compared compared

sheet. Moving on balance to the

of March million and company December to cash cash XXXX, of $XX.X compared of cash XX, had and million XXXX. XX, As equivalents $XX.X at equivalent the

the As Mike number public of offering. March, gross in shares institutional were approximately stock share. $XX.X received our that We from $XX mentioned, of at company pleased million with common sale the price proceeds healthcare-focused a $X.X participated the during per million leading in offering investors of of

the the with Stacey? would that This of Finally, our call which like to financial outstanding I presentation to over Stacey, Alliance forward. our would we and like costs term I to going eliminate now turn million will interest highlights $X note retired Western Bank loan concludes

Stacey Stevens

everyone. Thank you, And afternoon, Scott. good

look unprecedented performance XXXX challenges pleased XXXX we to the positioned despite are studies the clinical ahead very market strong pandemic, our on both brought success momentum we for balanced product segments of a and beyond. introductions, we emerging, as continue new opportunities and across with by be business and new with QX, and Following in well

the highlighting progress ProFound Risk. advancement AI by company's our begin latest Let's of

tomosynthesis. and reported earnings finalizing were the the algorithm the we I On XD last validation for data breast call Risk that of collection

with that we pleased announce to this are on are this to product summer. We market track bringing

collection for this requires of highlighted, cases training a I As and both XD process validation.

already to XD cases results significant when for supported, work that research offer groups to truly XD retrospective, the we team, promising. of study priority used area very with remains Since evidence the performance at far results validation solution the in particularly global high to restrictions years progress the of begin in studies focus Despite technology for already collecting with mammography these of Germany. have from months. and Risk upcoming each a Spain with thought EU have age-based together sites analysis we family and multi-ethnic multi-geographic to The in the clinical each begins success with XD Expanding AI efficient AI of We systems the is Italy, the is be and paradigm breast. woman. for primarily are impact to paradigm. transition installation challenges model the plan completed positioned ahead XXXX. DBT of the more imaging This agreements by anticipate an and which with finalize practical a showing with ProFound travel in offers risk screening supported technologies January, our needed effective in We the be significant images images performance what of published made Risk a superior preliminary COVID finalize amount conducting equipment to the AI images, leader clinical physicians predominantly models the personalized screening and screening risk-adjusted Risk our that individualized us. to a goal for in of to empowers is a the body a Radiology compared better ProFound supporting with is more XD on will that traditional well history. as model ProFound even based is today

women As Professor we also of ethnically diverse Radiology have ProFound an study will reflects AI led Risk months, XD data Conant, design, XD of with women. at previously younger Emily of stages by and couple have UPENN breast. of predisposed women finalized genetically early analysis of Pennsylvania, be we data of high stated, a moved a group such protocol special XD with use African-American U.S. risk, also as focus In to research and the University on of last for the have whose retrospective the images at both and analysis we agreement the hospital the on Dr.

As potentially we U.S. screening ethnic technology organizations towards and of more including and research personalized National will way evidence the the Cancer groups as screening established near cancer recommendations Comprehensive sites development, Cancer for Network, final identified stages origin. of such Southeast the for recommendations and to the paves Radiology by women guidelines XD other inclusion professional body of others. we breast American Asian-Americans and the risk Institute, the National contribute clinical that supporting our Hispanic of of growing have This additional College

see providing the in moving ProFound interest for solution we on in to innovative months. in will I coming Risk very continue strong further our the updates look summary, Risk on forward So business Risk positive to impact forward. and about the market remain have

and Cancer In our AI AI XD on both Detection flagship for addition our continuing Risk, to XD mammograms. focus Breast are ProFound to we ProFound Solution advance

as reduces iCAD to subscription the an our results ProFound introduces platform also a in which images will track summary we more clinical now enhancements release of the it additional The March, in which customers received accompanied which provides platform view. product, for mentioned, to Mike ProFound AI ProFound AI which as us by marks offer new model. generation the specific includes well a operational AI major release, to simplified process clearance on performance license usage all new third cards, allow FDA time index takes with significantly widely AI ability is our As a of single the

generation and the release our efficiency offers or with ProFound third enhancements PAC, of vendors. all stations workflow the the the reading months, AI mammography, In for XD next mammography algorithm supported Additionally, in improve the and reading AI significantly how European markets few further customers. our XD for release further outside performance U.S. for integrates AI for to are the to other plans near-term to improve and ProFound will

from screening. and as that at learning synthesize In release and addition, able Emily risk this normal We're AI product, of and images a exams XD Congress as UPENN mammograms Hologic. will just to to on one-third also couple density from support considered such of age was triage breast additional we missed indicating research Radiology, pleased with announce screening with both cancers. European month the breast supplemental are breast may assessment plan deep which XD how in also should to no Dr. that review encouraging I'd The new our performance used GE to Conant improved are benefit presented technology get ProFound density When with factors last study screening XX% and miss the relative study Dr. to can Conant with could results as very sites' be exciting operational and of impact cancer breast could In that our further scores almost an have cases found now X:XX:XX future. efficiencies, normal, to on products the cancers. triaged further be no [Indiscernible] who like this potentially interview that of our internationally. the these the AI refine that case indicated

headcount our sales drive build Germany largest a direct to the looking among in channels mammography France, of to in continue to actively sales second in in addition sales. countries fill of a Europe. Europe are Both markets representative We these we're with and the

sale which quarter marked Swiss by the first first The also our Risk. distributor, AI of included ProFound XXXX

direct a have Breast Innovation Korea the landscape, and with master Three distributors XXX than channel iCAD in teams attended. countries. is the Greek is public and into Australia, We a Asia-Pacific region, at expansion market an an investigation who participants Thailand, nearly largely South also building. historically, with vetted interviewed been Radiology being by regulatory In from the six Course area latter more and want timelines and untapped Athens to underway distributor webinar already executed with and the in tender

in QX, During result, sell Taiwan, received two in as regulatory first units able quarter. the our a and to we approval distributor was

moving Now to has areas progress important our QX. business, multiple on in demonstrated therapy which in

to our KOL two-tier around implement worldwide, there through applications, and including We and commercial QX trials, the rectal, more a to May. which lot were neuro current segment. Xoft dermatology clinical revenue we scheduled continue about drive will a sites webinar developing new systems strategy sold XX while pre our the efforts, the it upcoming In in indications talk six shipments into

the the in mentioned and Carolina, now South Southern favorable some California. was with revisions business, As usage. including And China, And in shipped on in States of to consistency and the Carolina. Georgia earnings of strategic the In we we in KOL to we Florida restarted have Xoft seen three systems due South changes. momentum placements sites OUS saw controller source last favorable business QX, for skin call, QX XXXX Derm reimbursement some regulation continued in with

are and grow future in areas, to working on sites. pipeline China we continue We the other in neuro for and actively commercial opportunities OUS several

Moving on clinical the to application. new

Mike discussed indication. also on neuro progress the making addition In we're to on our rectal updates

We we add half Kai Wang, expect area a upcoming the in physician the and treating colorectal in months. regulatory U.S. shortly to in in expect both the submit will of and Europe for second to world-renowned the additional patients KOLs the begin Dr. year. clearance

look with business sustained we to we both shareholder as driven XXXX drive you our of accomplishments have in across So leadership in forward we updates further the providing to progress sides And value. create continue are we advance summary, forward about our additional and and business. excited

We will now open the call questions. up for Operator?

Operator

Turkaly session. be from a with question Instructions] first question-and-answer JMP we line comes question. Please time proceed Securities. of the your Dave this At will Our conducting [Operator with

Dave Turkaly

Great, congrats.

also the detection your The the and above I core geographically? press the continued the release AI of coming called On I you announcement. in also the product to what kind increase, present by mentioned adoption us and on in Europe. just to the on can maybe XX% ProFound you then your business. Risk versus And side even U.S. out any wondering, XD comment in want start ProFound of you'd quarter was And ProFound - could, of driver AI. Mike, that if then sort was color give here anything to of you XD? Risk as maybe biggest

Michael Klein

Good Sure, also it balance coming without On of geographic the mega balanced the that in contribution There you. to deals - from a a hear effort. multiple Dave. terms it was were we get size - was certain deal basis, cores. really it's to the single defines reiterate to offering biggest disparity, indicator is Risk that finger does geographic What the on sub-visual. probably that a offering. finding your - is The point, Risk the put things typically are

a show would be it them we had individual regimen, at cases rare couldn't we six patient precisely there a a a even if So or false either this the - may see informed physicians make wouldn't them personalized they choices to a to about wasn't it it sub-visual, show a couldn't was or beyond as not. up verify that interval. had we product, assessment to we advance. sees what more the But positive. algorithm develop risk now that some with how call patient it's capability allowing two regimen, to they years biopsy and to it, in nine sub-visual If Previously, it declare show it, this that months it, considered see to not it for maybe it can and things That longer May, didn't things, months, have set have didn't we allows prescription they even regimen. screening information definitely back about normal - fact, in if

that that people backlogged does, that for is delayed, patients terms virtually are for everybody The is other Dave thing it are coming treated. sites of in and

which and determine basically million and we year, last If every first, in XX basically were did is who you're XX what to trying behind. XX% to a only screen bring you million

and and You examine as rational use do to They're That's might days, element, sites for of centers gives that open up of as from spending beginning or they're a bit the to Stacey lot want patients that's a as what more what basis year's earliest of get back determine before, their ago line. much prior used the once widely. to know the deciding front them but missed, images which most bring you screening this who go they referring triage is the product a to. the to are was be screening a can tool to risk were problematic the who year

Dave Turkaly

- on on that that out hope versions. licenses business. I And up, as a and of your AI other XD, as majority you Got ProFound have only, in thoughts follow as mentioned the have it. in you've a task mean, this into basis? year, here I think we well into contracts, evolve that, you And quick updated you hand, new Charlie's you said, as the subscription mentioned guess Risk of - timing? that next move done of you thoughts subscriptions any I up be maybe Thanks. That in kind do to we rolling maybe midyear, here. then past in new you'll product the terms that begin will that the that the as that Because may U.S.

Michael Klein

of product. to digit will be low-single because impact year, because one percentage happen it to total this year, risk So an will this will tied [Indiscernible] X:XX:XX our our this be later sales for And only largely have iCAD primarily will mid it but of a subscription. is

be six this we just improve, that mid basis barely will later like the is just everything to it buy will factors. on single at we're still prescription sites nine And designed year, another many, licensed that there - seeing is modeled upfront. many And iPhone will be products, This offering. a And the get low-single that risk we risk improve detection XXXX, comfortable because - this today which digits. where But disappointed be such the in and every even and just sold be a be need have a to being upset continually digits. product into other will to largely continue Our front. product I ways. enhance number this next the breaking we product to risk six That I or to then bought that and new expect we've and iterations double months as than that rather still in look that And we up is we very product now on in other the as one. bought is months I introduce are digits improving what's this

we be business. it's proceed. So going to be subscription we growth could on a the nowhere near part our business of And certain, and providing dominant will be information as of this signaling you

particularly everybody's while patients also full catching till is versus think screening, on a wait because time to two back an to want - with to I be it's field four also good volumes, three. in full that's hour we it's also a tied screening current up the this capacity not to

still license that So once we paying large we fee if onetime number to a do sites container upfront, tilt us. are pay the they to at, offered versus a of these when that there self-govern to having extent towards look the even And contracts.

again, in core in of lot that the digit year So of terms - modest terms as said, of as very theme a implications modest low-single well around this next.

Dave Turkaly

you. Thank

Operator

Our your proceed with the with Chris Please next Guggenheim. of line Pasquale question. from question comes

Chris Pasquale

Thanks, congrats business. couple questions quarter. A on about the therapy a nice

taking the First, the the see And how more and about progress they're I there? program do generation in derm rectal indications, And to hoping Curious history the little continued a the what adoption you building data around neuro. make plans that on support a clinical that with you something have see Where segment. sustainable? to go new to place in you then given exciting indication sure do was there, going? bit detail into the changes

Michael Klein

that let opening made addressed our fill - Stacey Stacey? in I comments those she when dialogue. was Well,

Stacey Stevens

ago. back Sure, take that that let successful, years into two in me lot taken changes give dermatology segment, very very the place me - market have we been confidence this Chris, have let about sort several the have There first. us a questions be the where of going business did that successful of can a we market dermatology important

was first time XX the And in there until and expanded. now country. the were bunch reimbursement months ago, been coverage and is there of about policies coverage states. has if really change states to today, until greatly you a reimbursement The is at that in only at - lot in a negative only a that few positive look Up where up of

Now, basically, positive good we payment [Indiscernible] X:XX:XX country. very entire policies silent in policies policies. silent or have have we coverage either cover And are where there areas that basically the

and up. market a was the up has has skin of incidence that and always example, now very been opened were been considered where for that Holy years, opened the there as market cancer. been has So was of negative Florida well, Grail which sort for non-melanoma given the place years Northeast policies

our thing, first coverage. the that's So reimbursement broader

that The lot COVID, a appointments telemedicine-type during that second competitive us the that to and to healthcare office, more are oncologist really moved That format. radiation typically which The important allows of each for in gone patient. personally of as now that physically a market away. into got it's of a treatment in required aid be is be time regulations each in-person there the relaxed, overseeing dermatology present requirement element

have oncologists oversee benefits day in the to dermatologist. So to Because to treatments. economic what until radiation able between and that patient And pay these we oncologist $XXXX had $XXXX is dermatologist for that a remotely to radiation important now, personally come the has treatments. oversee a up being

successfully. market combination a own. if our go partners. very we stronger with So to that being doing back broader We're for of for recipe is economics at into all reimbursement, and not on the now the it derm it doing look We're able

one us arrangement a practices. and we business partner equipment who primary purchases is the have with executes So then a dermatology from services who oncology radiation provider,

market beyond. for of business but a different and we're derm after very there's lot the driver a the ways in confident this, be we're can going that growth XXXX So

question Let the about what was your me other see, rectal Yeah. implication?

as that some So we've months, CE-mark be really to submit looking the FDA good and couple next I to the to product. of for we'll mentioned, made In progress.

of go-to-market in study and Kai time, Canada, out And a name who's woman of primary by our she that area. indication. clinical colorectal up in heading be will over Wang, And area the for be we'll this Dr. the is the Our want and she'll be use researcher the primary you on rest that the strategy. of and our to investigator, aspart of of U.S. be sites beginning Mike world. the And pieces But we'll neuro this? then our Canada, both in she's generate bringing a specialist world-renowned other she'll data

Michael Klein

begin in now we we're in a I There Will that obviously, actually the dozen But trial, sites to in want technology. entrenched are the are Neuro, over broad study. sites get clinical interested than which deeply eight sites. multiple don't enrolling the at more Yes. indicated. too

this want are expect are is of current the questions controllers, So idea for out for what to as eight the as do to it firing onetime allow that given procure many it's we may other This we'll we those more episodic be have would validation the this sites which verification study, free areas the controller, move recurring from locations. registry, don't also have to create This procurement, what similar said, to capital purposes, largely total model will would to procedure registry. sites, strategy your additional on of basically but further to an multiple --to embedded different forward, people data on a get in in us interested to exploring is participate and a a to per answer call service model to five and the you sales requesting, the obviously can our basis, maybe those we're indication are a in ability win begun which paid study. are we potential FDA-cleared or one a some the would is that commercially side. on technology done to month. That the our controllers European accumulate of use who to to three And about for treatments have people that major use also a study I bifurcate, is to instead in we similar been we and software Because as in optimize that Eastern that model, return ideal technology, as revenue technology. quite say, a four of would the versus results we want treatment, site. the mean we of the I've of we neurosurgical have the this nature market sort talking sought move Again, Those the offering. would

quite model. we XX partners, thing still model. controllers beneficial. go some are invented it locations. other school where XX we [ph] logistical allowed about some some Technology-as-a-service and XX from that but we more little this ship it, Fed last there that. very to what of benefits in with model, they model, a significant to actually And the of And that We're I'll There creation instead kind So us X:XX:XX playing the SaaS model, we TaaS for a our Taiwanese or now looks to learned say watched bit like to are challenges that's of And are them. to And obvious business at on treating a they've have done. is being obvious this hospital generated ways, whenever

with them you. good answered for three So it that's for parts. unpack to Hopefully, we've

Operator

BTIG. Marie with question. next with line Please comes Our the of question your Thibault from proceed

Marie Thibault

was the taking luck your steps for good questions. Scott, I you to you. Thank working wanted Hi. say your just next with in future fun It And with plans.

Scott Areglado

Marie? you, Thank

Marie Thibault

field I you AI know heard in. Gen the And love existing afield? the to my interested product at That's it's also product. X I if update ProFound investors Yeah. year sort an the licenses not it's at of product, some plan for from your or this What as metric you as farther know feedback that point. go we'd all? on to to the hear wanted are product. the whether two number launched, but first version far to early on parter look get possible ask sold for Maybe I have a of of flagship launch that customers the

Michael Klein

Yes, one. Marie. take that I'll

our announced ProFound in as you So midway the XD XXXX through. we of install quarter of fourth know, and XD sort both

a have I month don't as well you the quarter. precise first Q, benefit as on So we number last have the for last of to the year, this. have of

market. of we to think this probably say I guess XXXX I focusing rather got we the that were XXXX, back just But what of calculation. - cases that the or installations systems I installations hitting a that's in envelope point, earlier. total, just XXXX or the and on I XXXX focused the I've And mean, at as between of sort on mentioned we're of this subset

ability But competitive things what ability that better that approval, it's But to run as X.X offering introduce current the on your side again, version out far there. a by As to - by those approval, ran X.X. our just both side to hard sort specificity a significantly version, little part side which already both. X.X this out means side feedback, begun gotten into And we QX. We having a brainer, regulatory is did part well soul second I as of before no would we specificity, know latter is the which as the the this on results of the to say because do of market we that question the of bit aren't the rule to made have steel, sensitivity, is the the cancer. which

also mentioned You XX% XX no that showed of up marks, cases to show site Conant's are data the heard are normal. had screened no show that in that And at that Stacey cancers. Emily those up

as seeing So as would if on data to much that no as we're that cases, X.X. XX%, and move up accuracy based being mean, the no marks, by they cancers. before have is prior XX% that much was to have that What up potentially as able of they what potentially

always we XD because we you of TOMA X:XX:XX. when the XX% our fact reading time, save combination product with significant, that's about Now, use in [ph] that talked

certainly don't would up it read be If or actually physician. the need to to you

more thirds of that the that suggests are that cases data Well, where there two have you are read. up need no cases to there that of marks, not means than XX% the be If may to no cancers.

where we with to the claim that's the to would sites something need would most it's we a in the dramatic it impact is developing likely used And high be on no, Now, kind their U.S. But are that specificity. particularly make. area seeing but be suggests. reading data that make of of able probably this of it's specificity in perhaps that on and there's that ever But of a certain claim in clearly and cases likely make FDA, a radiologists. cannot what countries we decisions shortage not that own X.X,

Marie Thibault

with expect envision to kind partner of I strength my All lumpiness contributed you. Chris follow Or a derm how certainly Mike. guess going Xoft I'll and event right. we get it a sounds Was could Thank on strength sustainable Thank sense ask working to you you're of the it there's ahead? for of explanation, of whether therapy forward? we possibly and therapy, Maybe since a similar should like orders expect be like a like should we onetime here quarter. that up clear On seemed this asked. the trend. And out? I derm, kind want it this business shouldn't it the rolling

Michael Klein

a I'll comment. add Stacey And make color. let I'll

coverage data think silent, new positive I bit surge negative or this a, indicated. folks. Florida this removal many product, news And in the think came anymore. of the policies I'd impediment particularly of to enormous using this They're derm. in lot a of see then of the coverage was sense to say a good no QX that I the coverage. was is as all they There's an is to And boon course, little

that on this upward trajectory. do business I is an think So

hate remiss associated would that longer wouldn't than software our in of tuck the of - equipment have capital Because some pressure it. I capital in However, degree let's time cycles lumpiness, word any cycles. some elements equipment saying with say, this be kind degree are just market I

if inherent I trajectory that quarter-to-quarter, So from precisely the can is want it add longer capital think to be you it don't it clearly to to know would gain Stacey. hard time the northward. over the I But take. given cycle,

Stacey Stevens

right, I think that's Mike. No,

don't steep think some variation to is I I think sort generally, We it's and may downs. going trajectory ups see be but that of quarter-to-quarter, upward.

back I won't this at the confidence big lot the be business. think and have lot ups restarted to maybe same work We're we business. downs, sustained performance exactly either. and of we a I a have the not But of doing think, be And in to promotional in down marketing we going it that, it's We've restarted work derms. QX. up investment

going and from I XXXX. to going steady a think that throughout particular to see trajectory it's performance we're be segment very strong

Michael Klein

used it's add is lost I the you are that of but source would service, people that new just may different renew not source and in add require you thing at Stacey's can XX% and not when that on add you be going would recurring case contract. businesses and volumes revenue contracts, to our add skin that be one the business, a contracts balloons to comments folks

about project having like controllers XXX% lead product also products, increase for the a and placements are they're XX indicator One source of the revenues we new is things always having in and and the recurring installed, service, balloons, where used.

that more so doing help of of units it recurring some relative more can basis the kind in on of the may the on numbers. revenue a So are lines in element back service placed, lumpiness ease overall the the and

Operator

from Per line Craig-Hallum. your Our Please with the of Ostlund proceed next comes with question. question

Per Erik Ostlund

to my Scott Good in by you Good wishes as luck well. Thanks. will future adding everybody. your I best in afternoon, start endeavors.

We you. will miss

I AI talk Priors you've didn't I hear but be talked clearly that about hear didn't the first fair I that's and And the was been my it a guess adoption of flagship. Risk. roadmap, the said, about drive I know that may product. amount helping there's question about of So ProFound not anything

And Mike, roadmap but could truly I I about sort about to product add prior you're ProFound patients the Priors of specifically, be Priors this is in year hear past, think how value the applying where radiologists when it in curious a Just stands you talked think mammogram? to flagship the to beyond and simply kind AI bit viewing of it helpful as priors we've it today? know little again, a

Michael Klein

last to the detection Actually, Because go year's prediction the Risk it What is put back to that it it was previously platform. it on providing together. me then Priors great information predict for year what algorithm, to a panorama, ability clarify on to this I'm for able we that tie question. off important was algorithm the results look it's risk you the of look and at ability compelling more the the compare with the all you algorithm ability took that. but for very the - done say - on That's be more glad And that to to and detect. even to have factors and asked platform it we've prediction useful It's the us and makes multiple heard also forward years, to backwards. is

of mentioned to that we Risk. will to the is next I the continual for be innovation. reasons of that go version is that And product the it risk earlier we accelerated tied our what putting year-end release, the or the as put on anticipated our platform, and Risk platform by effectively the which product, did to panorama going we we So Priors Risk subscription. one expect

is wow we yield bigger Priors Risk program done the So on side. and the we've and what where do we customers for we even a better put the factor detection get platform, than an on

Per Erik Ostlund

expense side makes lot a of the sense. operating to that Pivoting Okay, things. of

and quarter's comment So operating X% about the I reduction revenue growth think of the XX% the expense of your prestart.

how bit commentary, like we your to it based As pandemic, is might fairly is the that XQ regularly other the some more actually quite And structurally future expense it'll normal much think layered a in a a way stay needs periods? the representing And probably lot of question coming much on hopefully on. a about to expense that investment that sounds back back? are little I with of right out. with how of up actually out come side on run-rate I stay come know get Or there of ultimately will it? maybe Is

Michael Klein

been and in. comment, in a going mix interesting, make is the alone is think that can I color and change. we're I this can Scott expense really don't What's to

think thousands these reaching literally haven't whatever, be travel level expenses back we've even productive. come are some fully on will of to doing of expenses. having same. those that, cost think now, actually we of these on And shows, of but to shows used we've demos we customers don't obviously ways things effective, ever The approach said is I these I additives. and quite - a presentation and of therefore just so web-based that that are go And of I trade we we're prudency spending maybe endless had customers learned actually the and I All meals, But think way so French and that call productive. will way the really don't are the it's there they're we'll just now those think not work finding back. hundreds

price. optimization do our So website we're that climbing that'll will There that's it an back hit, the mentioned, of will give us search terms to And direct auto people XX%, with would XX% customized expense. information, be be to offset say some a customized presentations, them a hit. dollars. to we're replace going we tools, engine of our be transfer distributor back to to I be be ability costs and read adding that depot, I sales in to the a by going But when ability bit to our distributors, with of hit hit a there'll putting also, have where what

any our the investments designed of top-line to faster. be will grow help So

for It's the to one lower side that think we we expenses of. create steady in before. a ever sales just acceleration free-floating than become the almost say about support rate offset thought revenue how terms about would to we've expense advantage expenses all our we're think time unfair and we no all expense. state both going I we time. that, I a - rid smarter of us an spend invest purposes, gains these will on But can So to But believe for I - lot have sales to getting where

Yeah. of sort two good in your different It's answer that ways. hopefully question. question So

Per Erik Ostlund

there pattern fluid. easy say until middle the probably get I more been new been kind just things anything timelines the that year? in the answered quite very one. Has have Last that are of RO-APM model question, of holding around finalized structure the side? a would But fairly realizing we of well. a the Or and on

Michael Klein

that's good Yeah, question. a

Stacey this very So monitors Stacey. carefully,

Stacey Stevens

Sure.

delayed December sooner the you no until model was as of know radiation XXXX per what So than oncology January the Relief Legislation COVID XXXX.

X-X-X the been the pitch for with a had We get to year. them CMS time, that personally actively back CMS. with meeting make to updated next included this what open the to and we but was since So of with encouraged along our communication hearing an ready our further meeting very perspective expert to a really openness We right. new us and data to with to very IORT know really soon. that. go they model engaged continue in have topic, going on to don't own that data clinical have And one will outcome submit discuss we're They on study, KOLs people. had encouraged I of had and to our be, willingness

attorney, CMS. the So policy with a work But continuing DC-based happen. what with we're working background to we directly don't in health know will

advocacy engaging women to forms organizations organizations access particularly more here, have We are to cause challenging patient radiation. some support the to now of tend behind stand who traditional that

be I more delta company, are you the have that in that in because that narrow discussed where So this model, favorable the six of between end into the now, think we weeks it's end in than will as a delta, we for IORT, it's January next don't Even XX% going to go in all place to to been program mandated it's still don't is up up. Right now, we year. us back know past. treatment of the in geographies as if going the that and be much

the our it's more primary can, along be that staying why with example IORT doing model. pitch going be. we competitive, some will high-quality time everything to So course. we're help is us the care, take And of be that should will a alone of cost-effective We're KOLs the what but reasons know to in outcome and the it to

Per Erik Ostlund

Stacey. Thanks, Excellent.

Operator

a comes proceed Mikson the question. question with Cantor Fitzgerald. with Please of Kyle Our next from line your

Kyle Mikson

the it's been you. Good Hi, working taking your with nice luck future. quarter, Congrats Great. Scott, questions. great and the on Thanks guys. for on next

of on the one from things So expense the. the

AI quarter, taken occur expand wondering installed those was of So maybe your next ProFound into states, a also, equity to quarter level recently, we've any SimonMed continued I the by quarter was visibility, this quarter? firm. in if out then the multiple pretty wondering your private meaningfully on first could during new or during this was sites confidence that. And is

uncommon, but that tailwind happens So a not a would like often be plans? something that expansion headwind or to SimonMed's it's generally

Michael Klein

potentially up Obviously, John take Simon, thing and the hear news did I I Yeah, in will called let in fact, was glad new reverse still me markets heard still he's the other that that growing order. in in indications. program. in unique we with to in other the And and first even ways and was new - did, growth. he interested when And very be

say, quite I would over them got interesting. dozen And Solis So well of that's the which him dollars QX they what become then and be going added the grow. could without in agreement say already number sense has in to chain like is one told in and he's a that to part for behind deal. would into the they it's be. for too worked that's to to exactly want develop, quite well us. the locations, worked the which country, radiology a was it that They Because mandate good and very much detail,

know, five-year deal, it's you exclusive a deal. As

in with So as this Radiology, recall already it's which may of And yet SimonMed, have XX it. will Ss, expect we awareness they we particular, Month, multiple Breast It awareness or of in of account get Awareness quite agreement, the happening this that loud. expect private to to technology. was intended to Carolina, led is around so continue in the was adopt in And QX. their effect after grow. mandates. And throughout happened that happen you and lot they where announcement deal, has has grow. see really do to by the it continue significant happened quite that - and influenced we Solis we Hologic it's even you'll Solis we growth our large seeing And expect the another two that - equity-backed interesting as And end Mother's campaigns kind North And are grow, capital, the mostly have a that sites that really impacted we in Wake that had which of sites heavily in Cancer Southeast, campaign. Solis's QX, Day, made loudly that both in the

don't campaigns the I do effect. It's will effect to campaigns, of direct-to-patient are have I SimonMed that now the effects in in Solis. it the had have do QX, prefer expect to it's QX. both direct-to-consumer, people with company which with an had them. Some we'd effect that want and continue to

Kyle Mikson

was kind bit 'XX. should you be expected? like little previously sides second than appreciate the maybe sooner profitable great. Thanks forward. about the to going - a of pushing I in the core of color the how I be we're timeline half under Are if even we talked by the Xoft I the guess guess, for both and past, that, business profitable on that the the That - up of But OpEx getting and a kind lot, Mike of Xoft second in we quarter,

Michael Klein

hovering our I top-line, decisions EBITDA, close to we the a and cash make we is profitability. to positive build positive press advantage some to do think and we're this in turn where profitable we're which position or continue have strategic want flow, around or drive to

close quarter us COVID, enough the to I we think or we they one our, for capacity, at thing of that always further we've model X% our there's that will the profitable. always to we'll being but digits, by got want of in the profitable, upfront, again, advantage most got challenge to That's call if surge some of a is make give be. if top-line. call $XX in I've that impact, forward. always let's also all aiming on workers continued turn also quarter, significant or press Because want - in I as of, pull of can kind in a has any year timeline of But happen The impact is I'd indicated put momentum, it been of got million low that coming that the - time being of it of say profitable the decisions the to need is out let's like the back the subsequent that COVID, are on we of moves what pursue for been that stay that will lot we've having thing a good, enabled a returns year. it terms we the hey, have we've the one that single pretty the subscription growth. moves that's lead, And costs and yet sort capital two, any a but spirit

turn stay been the ability around our So you the if goal make we that. has if to. loop profitable mistake to let's But hovering will, to need with no

the inevitably positive grow, now. turn of has business to may As much of in and with lot EBITDA the flow, profitable continues generating a no think matter leverage we're cash we to because investing business in how

sense. margins as to turn in saying the basically that - picking that get direction. profitability that we're manage if do a growth, or positive it sacrifice quarter expenses, inordinately just grows which having greater inevitable saying it's prudently it going means why are just we two - to top-line up I'm to basically that As the of because that, makes we're and is as

Kyle Mikson

Congrats sense. there. taking again. leave Mike, lot Make it time. for thanks I'll the a

Operator

Our with of question. with comes Please proceed Francois next line Brisebois from Oppenheimer. question the your

Francois Brisebois

for taking question. thanks the Hey,

top-line higher if numbers? Is something the there section come a the having Just mentioned one - preliminary in specific was a this quick here. from numbers there better I'm expected? than certain you before, that than is there sorry, but

Michael Klein

quarter QX, this $X.X which think doubled. of million, to over related was product number again, our last version aforementioned the and of I up in to year Xoft dermatology first XXX%

use this happen first capital northwards of word other to equipment can't would were on seeing that any certainly the quarter. both side, we think that AI the uptick given in as exist particular well. one the I probably to on we're some sales, a if quarter, that continued growth it exactly, Xoft can in predict the But see will performance would in to that side as Xoft spike the questions, where clearly So And of indicated on but chart spike in you breakout say that, noticeable you inherent a was the out, I sides.

Francois Brisebois

year. of the thing mentioned, and the the income statement that it's X%, and business? about more Risk? of road just Great ProFound something think of in Risk separated becoming down ProFound next in other you have this then subscription as thinking guys model this you year maybe AI, if just out more we especially are parts with Is more here this little breaking the You might a a

Michael Klein

third a talking been We've doing. this a been creating back, that sort of And have something we is be will Yeah, talking a while. while a Charlie line.

would and So call we subscription. we have product, services, what

just we're that'll we So said to Certainly, providing business year. XXXX the ahead of part as we out. break that will that we breakout to the meaningful to a waiting But be this for it more case. it be be

as know really the to But - Risk model we will certainly change be enough. enough mid we subscription-only you with earlier. it's we said if we meeting, point, have to could that waiting happen to I year, latter that measurable do build will to to we give which the It to will suspect we definitely the we're be And forward. a if to in in have a may for we significant think We in would them of want not force it not notification move it. And been want move that it. to I want up. At fall ample do ample been to part that. don't fall it's investor that warrant do even which probably be you notification. special the we when would But

Francois Brisebois

subscription? for that on Risk? Okay, - be Or just is detection, if AI great. maybe this, are will understanding the on we subscription also the And right, subscription I'm is focusing ProFound

Michael Klein

The model we're going with, is by ProFound.

arguments, on subscription say, for to top let's may people not to buy subscription XXXX only that offering only say in to makes We very sites prize you think license. introduction we being as the Risk. of month certain a such products products detection the a But think make. choice presentation and replacing. format. be to a away to product we can the into the have argument. better you Risk Priors business there of at pay, we'll will $XX,XXX right that Let's itself keep to later a And a be for We're Risk risk. for as want a it But compelling say point model. intending $XX,XXX It two to that of have previously product, When lends we be can a that mentioned,

it the don't would to as think be volumes, a later well, So it right really drags notice But you If what we've lends ample degree case, itself at something straining market be we'll with year. volume-based want of in the that. if to think don't this indicated. given Keep now a a have that current weighted that. to detection that further happen pace overly we to it's to going about mind, of faster certainly that along kind model to is than

Francois Brisebois

what's in just the if us slow reason one. reason - to just there? necessarily what that Is reason is EU remind going a XD the And guess, XD? quick you so I not the sneak great. Can or has last I from a is Okay, there been

Michael Klein

Yeah. Stacey, you handle that? want to

Stacey Stevens

Yeah, absolutely.

States United you terms adoption. of years technology most about in with the in that three Europe, by lagged So MedTech devices Europe typically or four find

so that's one And impact.

going are The of a that other thing in is couple different Europe, on. there things

one, Now only on done population the screening XD. is

So used or women XD for are only TOMO diagnostic symptomatic. is mammography who

So thing is read there as in well. is they're still Europe other double that protocol and - the a

unlike the one already read at And Europe mammography to a that U.S. end XD radiologists. systems plus single two So right And there two actively are use. radiologists going in radiologist that some than Europe radiologist still But better day, the are are prove in looking reads of in is the every data where now every mammogram. in AI there is that that that. mammogram, shows clinical studies there on are XXXX

that product the a sell go to gives and so And AI great us there. back opportunity XD

attachment big XX% aided XD XD attachment day, about U.S. the XX% computer back in that where rate was there of products detection was Another only rate the in that a the it Europe. in is the called about world, the difference in we rename

XD any those of never had type AI-type of solution. systems lot a So

there. specificity computer-aided big earlier So ProFound to with good. is there's the AI, product And where was a in back the And of weren't that high. go so a versions why, adopting sensitivity sell so reason big opportunity is they detection and

over growth little market. predominantly the what's slower Definitely, So, in still it's XD TOMO. there, the we're U.S. a bit growing market be a to going is it's cycle but And seeing a of adoption in than

Francois Brisebois

you. Thank

Operator

your Our B. of next line question with comes Andrew DeSilva a with question. Please Securities. proceed Riley

Andrew DeSilva

strong And Hey, on been as quarter. echo good working the with pleasure else's you. afternoon. everybody Congrats comments. Scott, really It's I'll a

Scott Areglado

too. and you Thanks,

Andrew DeSilva

Awesome.

you're few the just quick healthcare about change the think to So Nuance another I start have here. acquisition would Risk any the by you was licensed-related subscription Microsoft benefit have on first how the material Risk, still business? get questions And on, by during impact going United sales since actually model. it's or from top-line We'll a any quarter of side,

Michael Klein

having healthcare payer, find totally access from to for do the thing that about private the things X:XX:XX Medicare you ultimate specifically of could you makes if I'll that from we one economics, data two the if talked could able the terms be about Risk that be part prove or really calculations that I that own there definitely it little that what to we data. last And wish said oftentimes call It's we look the them that to we looking on to And to specifics. to actually But could earlier. they it's Risk with certainly been want I to model their by point bit the the of tough right can, have the cite so get able a about In easy one [ph] carrier finding they talk healthcare impact to to that's risk the earlier, deals to us aided public a a number Yeah, Scott be a before second much handle Because data. it have positive to compelling. makes exactly far. little and have of able that in at through But of proves Risk QX of on United there, a more we very the And that. the or also may the sort that But intend bundled the on future. to tend kind that, has show, economics change our changes base and one in. be at parties things or years in that's could it all do. to case

to Microsoft on piece, Nuance to a sort Speech mission dictation. Microsoft companies. imaging. Basically, businesses, people Microsoft's on of this the lot of see their getting think decision software focus very that basically, is But that voice into making like medical a I Now the is say Dragon is big now intriguing. of empowering Microsoft. been is concerted we They've this one And

business think, part. much connects on to their could consolidation lead It some the So this and to which acquisition upon sort have what backbone - and based. into really packs is to I them It quill Epic fractionalized Cerner of them very business. brilliant a very, enables is a the is

batch railroad XX work in to standardization to to like railroad-based have thing work said, more do that's there's run But and the make going them. if these on be big these companies communication to of is for The in, some We'd going direct players little of I could we different come have to a As so running they're in space, it's to a just positive basically of hard harmonize it companies, all going enable are they're on to do like going to same tracks, eliminate all tracks. these us all put systems. going us allow Microsoft. with very us and to to we work lot

intend a I in use And But very to the think relationship. to I front it's in it center think think I it with others judgment what terms think will space. Microsoft mean, working a expanding standardization. of of things, own services. use Cloud-based be and closely It'll that if development. put your spotlight them intriguing on and entering the terms and I we some add We in that already of you might terms that very

an to for us So expand relationship. opportunity our is this

Scott Areglado

Yeah.

KOLs, a XD. to adoption. like things risk I less to ASP sites, And say that that in, the probably right to of in revenue is would So now lower XX% XX% get would and bundling putting it to that. is say QX. still get as the luminary than to trying we're our answer it is up I launched We're with But try this

to risk of drive over sales. So being [ph] I But Hope into people start position to realize expect XD grow in as to value can the it's here, offering. helping we this the context continue move now it time X:XX:XX.

Michael Klein

studies product part the is I'll detection. on our this subscription. there. get And Scott's done out. when launched with months nine the of do a to this effort point hands validation six product get awareness earlier, papers to wait it it advance of of hope local is This add We of direct-to-consumer to the also to This of written, launch come that of get XD we Because this do mentioned concerted and for had building which amount some studies to in these launched studies effort last out. in the we with particularly a we in the validation to luminary part in an markets. advance significant sites to we our hard get with the

to will also we're the when that trying screening is of expect there's back will which happened towards with So to the throttle, a together align end of pull full we forces can lot summer.

Andrew DeSilva

process? color build manage sales? we over that Just be as GE. would think to that how useful to And out. like they good? the Very does can help there, a partners OEM model detect that to and any about going to your And plus license change then transfer direct those I just having and Is to subscription that a model from having perpetual something model with are license that Risk? then you from perpetual me selling Or operations reconcile one detection and guess,

Michael Klein

done But Yeah, been could out have in a we've Technology that, of the you you pay let's but more. for terms dollar that next unpack of ability have other say, things break a the bit one-on-one say gives some would to I pay Innovation to advance to which algorithm, amount. the we certain probably we've a - Program, in similar

the it directly don't called that's we always of it now Risk pieces through manage to tip to particularly now partners, well, be complicated have ourselves. It's we sold This right too the because in like, that side. just OEMs the to We So model stuff right a to OEM We've run innovation. offer need the on as case the until for really subscription the we place. closely. technology all that for going our is

In say, subscription be going Nuance, and PACs for cloud-based, that those fact, contracts the our same would Those more thing inherently to are a in realm would which contract. Change where are stay Healthcare, ProFound applies the to parties, product while even those SaaS-like only. partners, our of detection AI be

actually precisely want to want and if curate keep product be of risk introduced. way another of we on thinking complex So to we recurring other our closely line start how guard It's is the revenue more will we channels. eye saying sort --this about an and

we'll get channels first, other right to it ourselves. want And So start we then into moving overtime.

Andrew DeSilva

the more more of the think and seven benefits with years I that about were be That benefit Palmetto now? Nordic, the really you me to for dynamic the dermatology I makes or question is play open Xoft radiation the touched names me was on If a reimbursement durable current business? like serves side reimbursement benefited traditional Is business. of sense. correct, of for Or dynamic this a the ago? my that or within at as might Xoft. memory mixing Obviously, And the relates shift last it side some so

Michael Klein

turned Good well, once had are the and as those memory, Xoft these was say of happening question. Andrew. would all is last you I They we experimental. How? Florida big said of coverage local, policies, Medicare, fiscal And turned It medical, sites was policies. all negative intermediaries And positive call no either policies. them those technology end of neutral. was and what two the that year Palmetto remaining And ones. Noridian that good coverage what were towards negative all those is There into or may

call the that these was ago. So that like all the was a overall all reimbursement or or ago. same was mentioned, to time all that we regions, basis of slipped is And that those XX from they XX zero - were, on that in XXXX green, years XXXX. Palmetto yellow to direct areas two up red let's secured them you Noridian which the being and great. was about territory, That average averaging At global years from say national about happened,

I If one things having the that regulation. not been have controller. impediment now cost And doctor, just wonderful our say it's of a this as sit [ph] this that that safety way payment, issue average those was and have cost steadily national from back point view really of an we and a coming on I well So in X:XX:XX. top by not elements a to through, that to as at big perspective least XXXX. necessary, the have eliminates the let's was the really efficacy I enormous went two really That of what Stacey the at mentioned, coverage, of the

Andrew DeSilva

much luck forward useful. very best again luck best Scott, Thank new you the very endeavors. going that's on and your Okay, for And go of forward. color

Scott Areglado

Andy. Thanks,

Operator

O'Neil Markets. Our next question with Please of Lake the proceed Capital with your Street from line Brooks question. comes

Brooks O'Neil

there you beyond I market? lot a Thank opportunities have your the two I on body? One, any estimate Hey. the breast Thanks two, hope. have you of in congratulations I quarter. going the application ones, a about great comments breast for wonder ProFound the your wonder diagnostic diagnostic market? and around give I other Are penetration you us quick could you. if And of if

Michael Klein

Yeah, Brook two questions.

out The the million And ourselves strains that when XX that images having that while per been so early that we for not we've with XX% using We first with either of using a now or paid maybe technology. No mammograms generation low-XX all XX XD for install. now. one ourselves, see one is penetration. XX%, get an at women else a screened U.S. unit year, or millions are look balance an there or about may we're over seen our track any in we competitive that talking would AI, in out there. tracking the we've XX% technology. The We spot

we're or that. but well to to half million sites patients, XX So to and with our treating cameras we only the more XX,XXX than goal XX obviously of go penetration million not that XD is the where to with there had above XD to are get out

our point, into go haven't advantage we the believe is sole this much to pretty replace tremendous sold and the XX% so opportunity units So seen beyond as then and market. mover have at any going. can keep mover XX% this we XD, strategy we because just that and just And first

top-line. wanting earlier point to So to drive quicker that's about my moving back and the

Now, in. have reimbursement are product we other just support. to FDA-cleared it's there that when we areas colorectal of think are AI, CT-scanning a already in of there already areas, not actually the that is number col, We of an

Priors, breast we arteries then of Raptorial detect on the part, breast, breast the an them. area at so, are seen on collection of in recognition data begin look to we at that's which is doing the instead the area already biggest in have. MRI, as breast matter ultrasounds And ability coronary a be feed And the focusing, changes let's and calcifications pattern other say we with images. these one third the extensions the of disease doing cancer, which look tree. And cardiac overtime. But that to is obviously it's So we see category is is that continue in we vascular is vessels. information areas the the of can the

for images could be of this. millions So mined that

looking prioritize. make strategic we're So to to decisions

we're at bit are And you applying be that little we're we areas landscape we in is that moment of careful is have the we metrics The used the the at These that area very these. looking that area still discipline prostate. reimbursement, some capabilities we're where a market. competitive big other examine in of the say how might will and that dilettantes about to

an much is make when nowhere near the - So so product this use of jobs. with enable to pay long, done into There And to meaningful be more foray this, products giving patterns breast we information makes giving that our needed I But we care, earlier, as just risk want control breast. say we're we us is change the to in do women years way area, to scores and to it's us. alone going a had that click, had their to risk a that click XX patients a today, change million pay revenue ago. per go. factors long us their imagine a Wish even if model per said

pay for per the a wasn't software have market it. didn't we for the click we over getting tools, enormous share industry course, Of time got the implications current ready business. our just But

So it's breast. in

Brooks O'Neil

you That's today. world is one I'm great. disease artery the sure women number but in of coronary know this, the killer

a and as So market huge that's well. important

about glad at thinking I'm you're So it. least

Michael Klein

women's cancer to once a of Well, breast can at holistic literally we diseases enormous. detect every the images. from is And ability set turn potentially center imaging the imaging it's two center same into coming

not So But actively to in area. ready this looking we're we formal anything it. announce at are

Brooks O'Neil

thank Great you.

Operator

next the with with Our question question. comes proceed of from line Colliers your Please Gene Securities. Mannheimer

Gene Mannheimer

some come you. it with to of maybe last any what just to was gate Most great of you - comfort was level out a feel for any Thank to in like any of wanted to in the if get the questions the appreciate trying relative that but up, over you to - attainment consensus revenue that been extent around answered you're the looks quarter. there of here, Did catch Thanks. there saw COVID afternoon. ask Essentially, the the because delays a your And start feel I'm color numbers, off QX? I Good here. year? I

Michael Klein

I in to would would very latter done the significant little that up say ever we there QX. catch have of had that But in part hoped done deals of been bit were XXXX. there's were certainly that, and QX a

that in visualize were already and peaks the Because people catch even was back - to though starting people amount of already in January, So of a large in that core. some we up to screen. significant part, hit hadn't early-February, were

in we're what second that year think hospital of to X half on does are see much XX% July see, July a is I to X still the of we're to across cycle. the I lot it think a as going going as that

going kicking be in we're a folks got renewed that So of for are they've in hitting we an seeing off cycle a year year, ones January, the little that part may annual in July. bit to their be the on budget But lot early the of budgets. of because

note, XX working So that's to running last longer the which X:XX:XX. we by screening, just weekends. on sites I an are year, are very hours, XX the say to are of catching interesting million point to sites extra women terms would very, in days, were up the back million SaaS of missed catch of cycle [ph] that hard up

be we're at think through of stability, to most year, up. get think catch throughput don't catching It's of that system. a much terms of think we're for be to hard quite in running going will patient playing this I the but kind the point screening we're of caught more up. I And actual I up

first. back to we subscription or ones than whoever see should or a the with saying which else's. know I tool you from more line, it tool, did ones most. which to Now, we calling mid-year, in I believe do might to useful LIFO can help because our basis someone a helpful is half we of profile not on It's it yells the benefit XD, as Risk But is very higher a you prioritizing year it's this very scary launch rational someone say, FIFO say very you head those Risk it have launching later for the start particularly the on your and and patients, to

that I think as from will that we forward. dynamic benefit move we So

Michael Klein

Mike. thank Great, you,

Operator

our And this session. with concludes that question-and-answer

back Mr. Klein to over floor the turn let's closing any Now for marks.

Michael Klein

of in thank a us. of hanging lot I A questions, with for everybody questions. want great you to lot

AI, be ProFound by so business. we the joining saying I'll driven Again, which bring think is application an forward takeaways an continuing with appropriate we moderate-sized just large in larger us. sales deals, start model. outside broadening and ProFound have XD to capital terminology towards leap critical is my by Xoft giant we subscription also upward of to positive being the a significantly by [Indiscernible] as X:XX:XX with increasingly enroll. We trajectory, additional starting that introduce that, see close a wrap opportunity will will penetration, with sales see aided reach undulations also glioblastoma have for you emerging will role dramatically could Risk. equipment in trend not that Risk, significant resources deals our could we near-term clinical all increased that see and we and since We me summarize but now. to And quarters Risk-adaptive we trial screening, an by as times the commercial and want of way. There significant footprint see we where salination momentum thanks the come with with Let our And the there is which but finally, highlights now stating along a as the that up some with that therapy we forward and IORT opportunity of getting only play the real unsealing which we're treatment

join So to with for day your our thank Please forward updates providing I your that, continued the And evening. on iCAD. progress. to interest and everybody look of further want we rest

Operator

today's This teleconference. concludes

your time. a Thank day. have participation You this and disconnect may lines you your wonderful for now at

iCAD (ICAD) 29 Apr 212021 Q1 Earnings call transcript