ICAD - Earnings call transcript Q3 2021

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Operator

Thank you for standing by. This is the conference operator. Welcome to the iCAD, Inc.

Third Quarter 2021 Earnings Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. will opportunity there ask presentation, the be to an questions. After Instructions]. [Operator now I from the conference LifeSci to over turn would like to Advisors. Brian Ritchie Please ahead. go

Brian Ritchie

Thank everyone. good you, operator, and afternoon,

from the a and Charles September nine on Chief and also today Web Joining announced Klein, afternoon, Earlier months press XX, Carter, is are the financial available Stacey President; Officer; ended results Financial Chairman for us release site. Stevens, which Chief iCAD iCAD this Executive in iCAD Officer. XXXX Michael and three

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

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

Michael Klein

we quarter begin quarter like call Thank and us today. on the you, third joining to on financial quarter thank and I current as detailed with update Charlie level achievements our provide call comments afternoon, provide environment for followed on business will by some which the a the more be our will an business who will over update performance Brian. granular and into and third the operating review, of to the Good then high year. Stacey's enter I'd you in pass update. fourth

XXXX. in XX% and represented presented release, which sequentially earnings total the quarter increase the a our for third increase As a iCAD's was X.X XX% quarter of over revenue third million,

In the sales growth. year, and XX%, Detection revenue growth and second compared In driven XXXX to sequential this Third year-over-year. year-over-year quarter were XX% increases growth of XX% revenues QX. second quarter U.S. as both the sequential quarter, quarter XXXX XX% and detection of by in achieved in year-over-year and of AI Detection product over by generated growth XX% of we over an and increase and and Therapy respectively, was Therapy. revenue XX% Detection, XX% product year-over-year driven In we of third the of

business. our recent the QX, from we with launch sales elongated slightly Stacey indicator XD by of The year-over-year further XXX%, XX% in significant a assessment driven despite product which another continue Risk the commercial which quarter offering, in Overall, to emerge momentum in impact highlight revenues several respectively, in was saw growth increases continued sales our this shortly. expect saw the and of continued Xoft The cycle in modest dermatology had Therapy mammography sales was provide effect of the Detection of were our shifts in the see recovery XX imaging sale we issue Importantly, OEM during the our new majority will we result did a third hardware in growth manufacturers key were controllers sales being in Detection regulatory business Xoft equipment. the chain sequential supply underlying as and the headwinds of shipments We of the the Therapy QX. Stacey to coverage due modest of QX. our in including which detail of the momentum AI product and changes. tempering of in on momentarily. This reimbursement, controller the a in previously business OEM payer additional propelled on installations, will positive vendor by portion surge ordered impacted this strength year-to-date, emergence factors, which are

cash to now management. Turning

X.X trajectory In third COVID characterized a costs. momentum summary, while Detection supply a top to to cash balanced continue a revenue of of a ability cycle environment of prudently was longer cash enterprise our business support growth the We strong on cash the line growth. we leaving manage expended pleased yet million waning in to continued managing QX environment, with complex in modest position XXXX, Our XX.X rebounded. by quarter focal slightly point our effect as sales in million trickle-down appropriately important a despite an perceptible chain are business, and us

the launch new excited is which for While new business. for product one Month provide two and information be leveraging will launch few interviews and will Charlie iCAD’s looks Investor Therapy XXXX. the for forward it of the as developments turn our looking Breast we of Charlie? occurred to color With I of Risk entirely over mammography, product October, Day just call key about formal the results. our opinion of XD to Further detailed we'll product and XX, financial days on exciting and additional cornerstone exciting ahead, in Thursday, of and years Awareness this in QX scheduled offering feature benefits with before November the both we in an final this Detection on offerings now category, leaders. the that that, are our that matures assessment Cancer next several This will product segments event are

Charles Carter

summarize ended now everyone. financial results our months three the Good I'll XX, Mike. Thank XXXX. for afternoon, you, September

an were XX% represented or which revenues revenues quarter increase million, of Third million $X.X million. the of total $X.X over quarter's total last XXXX $X.X

of million XX% the over an or total quarter of Third recorded XXXX. of quarter revenues increase total revenues $X.X third XXXX also million $X.X in represent

Detection XXXX driven $X.X an a revenues X% modest X.X the in decline the revenue. in or over million, third million, product XXXX. million quarter's placements quarter service quarter service increase product of XX% of quarter $X.X by revenues which increase Detection in last in of revenues a Third XX% last by offset were drove represented revenue Detection decline Fewer

third of from Detection Therapy in XXXX $X.X of third of quarter quarter million Detection XX% increase also and XXXX, revenues in last a XX% Therapy quarter over Therapy revenue. XXXX. quarter's of revenue revenues offset Third million, in over service driven an $X.X an million revenue XX% revenue increase the the by decline of supplies represented or a were representing product by $X XX% increase

quarter XXX% XX% Third increase the driven quarter product supplies revenue. XXXX third in represents of Therapy and XXXX, XX% by of over revenue service an Therapy and a increase revenue also increase in

last sales Moving COVID-XX of gross than was expenses XXXX the gross also operating operating and for the million On to million. over X.X $X.X from the of in XX% was Total profit. $X.X gross quarter million gross basis, of to XXXX of of million, of a than Gross of third million X.X product for quarter which percentage quarter XX% revenue during and gross the XX% a increase second from increases. million pandemic. quarter XXXX. furloughed expenses to increase greater pure quarter's was $X.X due both million. of $X.X quarter of greater the represented effects quarter of on The operating third an Total employees in third profit the of mix $X the gross profit were of XXXX of million. dollar XXXX was increase changes or $X.X XXXX, basis, which or or related X.X% to profit profit quarter the XXXX from last an third expenses compared XX% for of or remained second On the were quarter number of $X.X million, profit third quarter's also a for profit third $X.X of third XX% million XXXX quarter XXXX the

focused Our growth continued operating line be revenues. on to supporting top expenses of

net which or million last or net or $X.X $X.XX third is $X.X million of per share. XX% than on, million Moving quarter's share, quarter $X.X was per our loss $X.XX less loss

than Third of million, adjusted Non-GAAP quarter XXXX third quarter of million XX% a last $X.X less XXXX net million. represented which $X.X a of of share. loss the quarter $X.X million net to quarter's loss loss of or loss XX% $X.X million decrease the or compared was third XXXX was per $X.X $X.XX EBITDA or of for

adjusted diluted number response net of quarter XX% of in or third per is to XXXX which of conditions represented company's the decrease XXXX also related adjustments was the non-GAAP to net for elimination $X.X quarter immaterial loss COVID-XX represents of increased debt an and of of Third expenses COVID-XX the million a debt. to or for quarter loss share loss diluted while net were the XXXX. GAAP which or in million quarter net the reflected compared remaining to third million, extinguishment $X.X Non-GAAP severance quarter XX% adjusted per $X.X metric quarter a of loss iCAD’s in adjusted due reflects a on there for business EBITDA $X.XX adjusted over per share, for recording loss second furloughed loss of and non-GAAP XXXX for $X.X pandemic. loss from incurred in third XXXX third non-GAAP share reduction $X.X non-cash or to quarter. of or $X.XX the or of the of employees This XXXX a XX% net of long-term furlough million $X.XX last adjusted million non-GAAP $X.X the its the million This of quarter primarily $X.X adjustments million loss second

balance Moving to sheet. the

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

penetration cash and drive markets, detection highlights and Stacey. over and breast therapy. top line our concludes continue of to our Stacey? will cancer manage our now This the presentation. the resources to primary We I to expand cancer call product global financial pass growth our will service into

Stacey Stevens

dynamics We ongoing so have and to everyone. the afternoon, encouraged operating in that many Charlie, of continued our face affect business the the companies pandemic-related performance remain you, by of good Thank worldwide. overall

experience our drivers believe cancer. significant third Detection Detection. both our of of of quarter provide advanced growth We that, With let the opportunity balanced for and robust portfolio a with color the segments on the performance business some with Therapy detection we of beginning have for now across treatment further me continue and results, and to technologies

year of timing in was expected the than that that total second recall, said several you enterprise by was transactions. longer as not deals indeed the all in second played out At quarter, end, large that that sales we expectation quarter. by third the close completed revenue our is were As successful but that all the which cycles time, in these not in the we affected quarter. would negatively though closing not were deals third impacted the many enterprise the scenario in quarter This

Importantly, outweigh size. these deal close. average part these the remain which the elongated important are for that our deals our to opportunities, an timelines will believe we somewhat benefits sales of the strongly complex greatly sales enterprise Therefore, and enterprise cycle, extend while potential more pipeline, increased

value XX% makers, our at economic end The aspect for and for of we the to radiology and customers significant our AI of This, represent that present accuracy inclusive world's highly all now facing short-term two-year This within knowledgeable point language our used to sales technology provides that superior launch as often which iCAD. was who to makers of breast predecessor dollars and call to Risk transactions released solely superior a Mike offers iCAD, sensitivity is a superiority, we of evolving prefaced, capital workflow The in lifetime performance customers quarterbacking ahead in is as discussions. September, enterprise budgets us. AUC, the enterprise-related AI process. was a optimize priority This to a with personnel effort cancer truly a an new version competition have flexibility images empower Risk version available iCAD’s first version an the advantage model combines the ProFound the XD with deals offering, allows even assessment equipment their assessing specificity risk now critical these to usually relying the adapt provides that of the cancer In to more CIO Risk woman's provides enterprise ProFound environment, reduces to edge decision will which, AI offers insights commercially higher risk that than just even compared decision accurate budget the common is a as hospitals large accuracy, improvement Month. that last own each relationship to ProFound and customer the Cancer risk our latest leading conventional of across of improvements, these new a a clinical, These work healthcare our reorganizing estimation launched technology, over us for is relative woman. traditional provides cancers IT lifetime to point mammogram broad to with decision economic implement redeploying a solution have Awareness performance illustrate XD opposed clinicians Breast commonly the our of departments us latest links achievement us both and is that models. latest access breast for informed potentially unprecedented and these to customer personalized budget. can with year. and a models speak IT-centric we tool discussions. that also own short-term AI-centric breast more call often add engage that order been that offering. earlier. the risk for I'd its identify opportunity The sales It sales Another course, and Of of be clinical and in receptive, screening by engagement regimen clinical support tailor this significance, clear CIO, proposition now a force XD to that easy in on metric with version risk previous this XX% and

two with ability the ability specific personalizing an score, results. and cancer or provide healthcare pandemic when country estimation, ProFound at the highlighted to this latest medical its well approach ethnic offers one, screening. in of a Additionally, offering risk mortality infant in risk-based inclusive technology screening. Risk now The precision is to threat our as the pandemic racial societies pandemic further recommended the also of and had including guidelines postpone COVID by globalized passed. exposed factor multiple as design, in AI the The need weaknesses several assessment three-year last the backgrounds disparities the women screening of version to also height rates, of breast that system, The screening average for in year risk COVID racial until the mammograms of

on new years more from edge to screening is begins mammography protocol an screening this evolve ahead, iCAD of is to risk-based a protocol what As in the age-based the screening shifting leading of paradigm.

performance offers sensitivity had Additionally, recently for that leading enhanced for our an we improvement which noted X.X level. clinical to tomo, a XX% maintaining while we call, in industry received performance Version including AI benefits, high specificity ProFound clearance on last FDA up

version algorithm, market. which We have version released improved into the of improvements the shows XD over similar the now the European previous

we market discussed XD new is and growing market a As the XD further OUS of have penetrate us ProFound in still AI previously, Europe. should version help this

pace expect OEMs. during iCAD this approximately help continue are a that businesses put some systems has at of hardware XX% the impacted throughout, fourth globally into trend The context, Moving our customers. of of at sell supply recent sales mammography these least OEM issues market on, have customers the quarter. OEM to the not affecting surprisingly slowed chain somewhat months, we some into to which To

to discernible but filter down So there is modest business. our some

OEM that We the to issues manage monitor supply should I ourselves. of chain and through have supply chain our issues are customers. direct continuing note we no

and We able anticipate have future. been so to the to able to source delay foreseeable for product without be continuing do

in experience In COVID-related some issues, our addition continued to QX. European modest these to supply particular slowdown business in chain

Now to clinical through applications revenue recorded advancing and the The generate current cancers, to focused RT, as KOL neuro the in of launching QX The by DermaCure business its side as our was In million business, U.S. strong with remain has breakdown that went systems four systems from that seven and covering the of moving growth grow Therapy Coast as a partner quarter-to-quarter. new continues $X.X shipped pre-commercial the through the emerging and our and such in XX in our the driven quarter significantly pipeline as the applications segments a third revenue resurgence new key sites efforts. on skin such QX, business IORT controllers we on in XXXX. continues OUS of and well and in continue in our markets mix we sales skin to IORT to Xoft skin breast states China. and trials, the Florida, breast West now of registry, breast

skin the this XXXX The dermatology initiated policy Our to across oncology, complete XXXX. begin consistency limitations to is easing by private is Due private being of of well onsite trends restarting certain as this build of dermatology, in exercise networks objective societies and reimbursement the data these payer data payer in of with more growth are the in radiation from the which key in we study, leveraging and our collection trends the monitoring network in Medicare negative and as the to requiring reimbursement state was operating favorable driven U.S. beneficial five-year treatments.

detailing time Xoft Association in at at of we applications XXXX meeting Xoft, issued and Surgeons American clinical data release promising a presented results. for new emerging annual the press Neurological that to August, scientific brain on supporting the Moving IORT was

to in a journal, peer-reviewed has been accepted Neurology publication pleased now that are research this International. Surgical for We very report

clinical due patients taken we of consented We with our new The week started this patients sites of for quarter to GLIOX first Additionally, now expected, the is treat our FDA this month. related of execution has offering clinical third neuro initiation trial. hospitals, of to expect trials. COVID we A have longer trial cleared launch and commercial process tracking impacting in recovery this the this than or largely second with startup the the XXXX. to

the and and QX quarters, advance look upon ahead continue and providing with we with market progress as XXXX shareholder and leadership, enthusiasm. We continued to we first for to updates forward reflect our you additional as sustained create business value. look to achievements So we our additional technology, drive three

now call questions. the open will Operator? We for

Operator

you. Thank

question-and-answer will and one one We limit now questions, have you any you up. begin yourself the to question further if session. re-queue. Instructions]. [Operator Please And to than are welcome more follow

from Erik question Group. The with comes Craig-Hallum Capital first Ostlund go Per ahead. Please

Per Ostlund

of afternoon, to bit a cycles talking quarter, talked up Good the it's you and about constituents that last Thanks. cropping think by about sensible have the certainly table. out start number everybody. the to come that want given little I to elongated sales I that

and it in IT you. to prepared to have alluded your remarks earlier You and what finance

involved the those parties elongating it enterprise of to Given have there are any seeing customers, it come simple table as the the with number make structurally to that Or as to that competitive happen? of terms sales is the larger deal influences cycles? you're these in being are deals just really that

Michael Klein

I'll answer and that overall the me sales backend cycle elaborate on then itself. let have Per, Stacey the question of

in advantage. the meaning of in advantage us we results the of landscape in for specificity, terms bit And that and put bit trifecta for generate sensitivity, unique a of As waiting terms a first-mover you time, our of fewer and a a we had in with a say, detection disease time. results position that some often sole we've AI know, callbacks competitive

minimal an of referring had competitive -- situations in we're minimal sales dynamics that have We all these with elongated virtually to very cycle. very set

out given there really even be that just hear of significant now Sometimes another where a in because we the between cycle, are know there. do is -- offering could dynamics, the case have lost we have at. offering But delay not a competitive the looking procurement or this do clear singular they and that others had differential we we of

little more Specifically specifically on on let I'll elongated cycle the that. talk itself, Stacey a

Stacey Stevens

sure. Yes, Mike. Thanks,

we're I'd Really dynamic also said, clinical of hardware superiority a is to seeing of think the of are from U.S. some in decision that add performance couple gantry. from Mike in positive workflow. AI the specifically environment AI I more RFPs and We're the purchase very what And still sourcing software So We we're in gantry. purchase customers have one the things the separating substantial mammography is seeing seeing separate software the the competitive the right? largely that's Per. unchanged,

performance the launch of to in is And do other the to thing to in improvements in at to particularly makers enterprise, new our adapted the sales environment. have risk the engagement they our would solutions. So relative reorganized we've sales interest our competitors, really executive risk the in feel lot offering really our of attempt where this clinical we with the latest now And and our is combination extending these we've evolving an a I our decision lead of level. tend that really force say optimize

more So is we're little some list redeploying clinical economic to not is go play. can presentations have if targeted able the own different and comes within the those selling able to enterprise. a the to the now they accounts course, tailor on important, our be an the going clinical of you that unique particular this Certainly, into bit piece when And, show so, both equally, messaging folks And into value their to really really that of of our after. but we're we're economic and after realize enterprise enterprises, piece experience specifically focus system. who

in very deals. we after us So much a as position are two that are those go things I those leadership think putting the

Per Ostlund

also recent I've enterprise That my about pertains also you've that the the ever is investor talked events sense. Okay, Mike, over talked, on think past, makes lot the you extensive you've robust some I of a of as the pipeline to the enterprise about How guess some the your you've clearance course se of converting per got the of customers. but throughout relatively I growth some that the up as growth in you toward rates in catalytic relatively great. in end business. follow heavy And guiding as is that are XD to talking been it not heard say rates year to year, September? about talking of achieving that the How Detection catalytic customers some risk for funnel? the of the these

Michael Klein

clearly is is that to further effect. Per. up, it pointed Yes, the differentiator, risk, it but It's in a geared Stacey differentiates. in a prediction when. And to follow scheduling also out, only some as terms has catalyzing it And bring back It of that the can a value future product, uniquely call proposition terms not COVID. who of help

software. in exist let's As could back other if is script first. hinted XX that hardware and over risk than an going also, have treated that add may and to try less in customers, months, I that sitting is way you there may enterprise one have be patients come we're, her of budgets when into separate get to looking at at XX Per, also last want million and these going often trying they screening. account point I best earlier, hardware say, Stacey to that million and offering budgets the this into the product and been being each instead prioritize The accounts, XX site to figure patients is these on often patients it's to out than know, the lead to as

especially So budgets the towards the your as when act catalytic sort were you separate risk also a combined in offering, angling effect, question. of with as

Per Ostlund

Very Thank Excellent. good. you.

Operator

go Turkaly JMP Please The next with Dave Securities. question comes from ahead.

David Turkaly

any compared XQ, anything of would small or maybe can it any that how the number or that I talking how much, that $X $X try we million you helpful wondering Are Mike, could way $X big the quarter. you saw like in impact Thanks. of was million or quantify cycle the and Hi. be help just to to be us maybe or helpful? might million, that maybe size in

Michael Klein

referring, you customers? enterprise the Are David, to

David Turkaly

Yes.

how a is seeing, getting we So at like, cycle And looking yes, talk is to it -- you're specifically way the you about were it -- there getting longer maybe that? quantify to is compared for worse? then or better that it

Michael Klein

definitely at we better. QX. it's QX, QX And deals fell that the from of getting as of we a end indicated had substantial Yes, number into

QX may on have thing deals gained also the deals. funnel. majority Stacey is indicated, The deals closing As enter we good that of in those ground these more the

So be we're reasons It definitely organization used ground reps allocated cycle this gaining And we customers. ground. towards we're basis. sales a in the that one is specifically place enterprise these a of in geared on put that QX were gaining on regional to

we in quarter. have the the for allocated enterprise at them with several working can some specifically they that a being Now are work expense of on reps deals of without And customers. the other be they may

think we to would next with quarters, the enterprise continues up gaining to to And are again, as we the fully were about of at this catch deals, grow. within these next remaining And in very on this deals gain ground year, positioned the which funnel going include this. are roughly go to those and quarter. are one I that definitely we're that able on probably two But will time traction So point and well will this be to our emerge. XX% around and deals XX% to

David Turkaly

the quick Thank follow would it's on or time be longer as how just a I helpful? it are you. like deferred actual guess getting month extra talking? thoughts taking that or months, And two up, an you. Is just much Got you

Michael Klein

somewhere Yes. four between weeks, four They're five to averaging to six weeks maximum.

track earnings us It’s one August. track our of So of moved the to very into important that's July. tracking we we what was reasons also We're sort It July. to saw. August why to

XXX that be specific So looking five, what the maybe customers customers. could typically now between enterprise four those elongation about had are days a of been at to XX-day for outset six-week somewhere cycle XXX of we're the and longest at at XX% that

David Turkaly

you. Thank

Operator

with comes The next from go Oppenheimer. ahead. Please Francois question Brisebois

Francois Brisebois

some were that there the time? to these when then changed not And always just with or you of are enterprise on that process and that, hit say Thanks. enterprise, always is has customers, the XX% over they Hi. customers were enterprise

Michael Klein

we I'm what data. still sites buyers. as two customers those obviously, third chance Officer enterprise look can that's I academic to it economic a economic Cerner sites work decision glad segments sites enterprise clinical academic sort buyer of tend And mean, customers have, -- you or the both moving. the more the tend having the has raised to Both both, have the gives that, call Franc, with is group, both trying for market The to entrepreneurial entrepreneur about sites. in of faster The can buyer Information desire core unique they there situations. say data, at to [ph] maker, what's medical with buyer. setting because of clinical clarify. a Epic, I a When economic system. the and of me a either PAC that We is But these the exist be sites in and their entrepreneurial segments, buyer Chief exist that harmonize have and

decisions. a two person is So a it's now now lead what was triumvirate of

looking own between news they But XX% enterprise is exactly have do segments, customers else. They anyone know these for they time. more their of budgets they're the AI. about differentiations know and in have They what represent these good and both So the us for.

to When long grow. decisions for decisions, fool can't make make and them. they run very very, And they they're sticky. the You

when Med, Chief if information plan an look or in, accounts have at locked opportunity to officer Solta accounts, will. tremendous Information these types. stickiness, of when accounts big more that and you us more And These their we significantly grow. So Officer for are these Solace give like

the between clarifies that the style say, segments So of buying. and, the difference let's hopefully

Francois Brisebois

makes that Yes, sense.

Information It’s the it's involvement So not is the new. Officer enterprise Chief position of his this deal is that in new? or

Michael Klein

also during security well of a opportunity concerns, cyber concerns, relatively advantage to productivity an And of I'll they They Yes. quarter first second lot always this were these say and the a of as forward dynamics result take a people where say of -- folks come late there. But cetera, screening. as did in as from? catapulted ransomware of for a slower time lot et

it place. which came time to dynamics catch these when be happening is So would productivity in up, now,

Francois Brisebois

you had impact, the extremely the supply And clients a might kind that chain are. any you the of color but ballpark on then or have percentage your seem give impact Can that just having wise this more OEM don't and helpful. chain That's in the to it supply be on on issues, issues, quarter? numbers

Michael Klein

front Yes, center I'm was on Stacey that, quarter. she going and to because dynamic handle this this let

Stacey Stevens

Yes, sure. Dave. Hi,

Francois Brisebois

Hi.

Stacey Stevens

to of one everywhere. the OEM it was to the is a So systems modest OEM in gantry I so right? been of is down our the was on we right, related Hi. tied partner. that the the to little partners AI us these was that How It it wasn't cases, And themselves, trickled of impact. bit in chain our have some QX you? And issues script neighborhood impact the has are sale some mammography some $XXX,XXX. fact a to a supply that facing in impact But sale. cases And to of new in relative mentioned that our estimate about what due business in

Francois Brisebois

of very a chain the expect forward it like a going is in how enterprise the say sales could or supply that that hiccup, to you'd is kind And something the last problem difficult quarter, issues be to --? not great. Okay, is

Stacey Stevens

Yes.

major OEM have that. right? a we this overall from to quarter, business that is least I But chain the our think about they've OEM beginning into that we're what OEM through about one the maybe and XXXX. talking at very expectation we're and within publicly, XX% reported of Our of of the again, expect persist will our is hearing issues it supply the business, impact, some don't next partners, is

a it's impact. modest So

subside little see then bit in we'll start should it of it a hopefully next think we and to QX, into as I get year.

Francois Brisebois

Okay. Thank you.

Stacey Stevens

welcome. You’re

Operator

The Please go ahead. next from Takkinen question Markets. with comes Lake Street Frank Capital

Frank Takkinen

if question you give us maybe stand Perfect. inherent could of my vice taste with update for of cross into as a users different as as if just on the Hi. for well? the level then case give total products of into well base, some AI risk us ProFound some selling those the Wanted today? a accounts of penetration that's versa, taking the the the accounts, questions. start to installed And an Thanks setting just where and

Michael Klein

product is AI, we’re accounts over also But our risk And go install would we those and X,XXX X,XXX, X,XXX reported, ProFound risk as the our north go an have of XD our detection We AI opener, systems were same launch end as certain also cases launch. offering little and the Awareness separate we software. now prediction represent becoming year what XD at new hanging Cancer do that accounts of door launched looking-forward both at don't X,XXX Breast assessment In A a Density Detection product, Frank, we especially of right QX, long where awaited ProFound now opportunity installed just to installations. for We it both bit installs which is of a ProFound a into XD risk/prediction sold have to on say token, as since or obviously Month. our the of threshold. before end back represents all. to of crossing of those lot product intend by of let's that base into a and this the at we of into goes we AI as the fruit number last launched September, XD And these that's for right, XD, some end us in the nascent XD. low a

all. blend way same-store then installed, or a newer sense we you hadn't penetrated In -- detection we'll nascent to the of the prediction product. existing will seeing leading many parts, say what So at be and I that upgrade ProFound sales be risk accounts, in think the that might some accounts,

Frank Takkinen

what's then now? now the this how selling it. of that sales the Got helpful. enterprise since has folks? size of organization beginning secondly, are dedicated portion of those well much the grown right what And And That's year as as

Michael Klein

in force sales management, counting the is XX -- The people about U.S. Yes. today

additional and place Germany to France the in like ground. and beginning people We Europe, And outside countries in have U.S., on the in the UK.

with We distributors. also cover XX countries

direct have also as are we cover our We channels Those sales other people. well. that

dedicated people with We our working working PACs and to also have channel, our our OEM distributors. channel with are that

we're have allocated to we are continue for horizontally, sales, the And for back people, XX% give team. on who those about felt which grow, out about and people double four about to of field, the the do the amount sales to that channels of pretty expect there sales, do that to we've enterprise feel should your to dedicated that side, of and on sales of other both that are instead XX in building sales. deployed. that say our I management I people to question like And we built say you want XX% So in we ourselves the direct including are out to stratified a sell of those we remain total we the as three

the single, each [indiscernible] then we three, to the be to on was you QX. would be can enterprise way the the XX longer focusing of of have did And was could saying people might be sales that are. in homerun able side. double, geography we're in something call they it without accounts, other's geographically wanted are the someone And we on local, hits on four the really somebody working enterprise them enterprise a because one that productivity, So another really are they And to time. from same cycle. now in terms working adapt of and doing And three unlocked bound on and borrowing calling people cycle, wherever that sales that this triple sales that with things

are So an of answer hopefully for. sales you sort that mix to you gives looking the

Frank Takkinen

for I'll stop Thanks perfect. taking that's questions. Yes, my there.

Operator

Guggenheim. next ahead. comes Chris from The question Pasquale with go Please

Chris Pasquale

neuro the and circle back on I to Thanks. just want indication. Mike, the GLIOX IORT trial

of consented first want should the months point? slower start given to when from that little six along a that basically were talking the get off that launch, about at gating in to milestones that than has commercial talk And in we gotten a hand factor about data patients, of commercial you have can couple you just nine bit launch the you path, So you're on of bit terms What's to to a now. start enrollment you the a hoping? some expect to data,

Michael Klein

be centered her Because this probably issue on that our Stacey at Day, week Investor is take question. I'll to let next going

Stacey Stevens

Chris. sure. Hi, Yes,

consented actually everybody some patients So, that's weeks. treating expected the see should and the took begin as clinical longer trying us the we a started, week, to we else But that time. of mentioned and it get feel patients little we trial I very this during this were pleased really than to in we script, us launch trials to couple next confident over

about something have having initial some data, This is six able need of initial terms In breast say different a in are you like to very data of where have indication data we expect clinical to right years months. from before you shift XX glioblastoma start XX some of prognosis Unlike poor months. treatment cancers, average deadly live is patients is and clinicians to have where the such convincing cancer, paradigms. other a they and time such between length to that a of these

be very promising we about to data this really of do want data, of Russian option to to sort ton patients. six this We order that people you have treatment convince before viable -- of already to of a in we study launch. out a So need full don't for a have for replicating data commercial months

sell that. from Now feel would preliminary commercial have nothing least data have really systems a on strong neuro market There's attack that the like while. were that a FDA notified our also study system six a in in at We trial a can't stopping been to helps neuro about That's months today. just peer-reviewed in could doesn't Everything neuro sell we commercial us we launch, it getting do we we've is for the to can go mean the to that published from that before -- working we full appropriate today. that accepted. we're and fashion. Russian was cleared. recently, want But worth something But we out journal. And doing

So us help that will well. as

launch So of that's why that year the expecting we mid we're next commercially. timeline it is to kind say really

Chris Pasquale

year macro the you some growth can the you with end business of in the fourth slowing quarter? that lower comp in all business, business been quarter. circling cycles there Mike, selling then, How have little ground to middle The grow come of And to Detection things a you in fourth helpful. the push are to than a that have today bit part and down of the your different a be challenging on has these is you fourth quarter? generate might in earlier. some expect that's think the relatively it into made normal Okay, situation dynamics, able do the back Do the this we seeing just or expecting elongation in

Michael Klein

the good well, our numbers one in Well, quarter-over-quarter, we're QX very growth U.S. the I and at product which I'm year. saw as sure was of for year XX% the -- QX-over-QX, point. good and it that is look a others quarter. at, will business fourth And growth your XX% look that key the I at that of back going the question. against, QX Detection is quarter-over-quarter. That the last Chris, product in We growth of harbinger into the growth Detection specific to was end comparing last

are Chris, of your back that trial, way or on comments out -- the enterprise markets. I the might trickle-down about are as of reimbursement product. want that clearly last earlier Those thing to end supply clearance. do will dynamics thing, issues, being also you FDA not the these GLIOX that place it some for stands be the notwithstanding say we a, one of the through notwithstanding say the to filling in neuro So typically, already September mentioned going usual year the the yes, other adoption, question are in we're in company the

that be So mentioning. was the Stacey would it issue

Chris Pasquale

Thanks. Great.

Operator

Thibault [Operator question with Marie Please comes next from ahead. Instructions]. BTIG. go The

Sam Eiber

going over since the Sam launch bit. little Any conversations those there This is Thanks. questions. great? would color everyone. play alternative here, Eiber start. taking payment the accounts month you Marie. of a for other risk some are on on here enterprise for about Hi. piece any on or [ph] into to about? come there Economic starting About talk early is just color a with a models talked Good Thanks how afternoon, any maybe Maybe to be

Michael Klein

handle you two of that? pieces want Charlie, and maybe to Stacey the two the of

Stacey Stevens

able workflow. already talk can customers the is currently the a then global identifying clinical allow clinical eventually our this for strong a value body But their of a really play focus later on will early on [indiscernible] cancers higher about to and earlier being very implementing diagnosed those it and for get clinical impact certainly and some guidelines, it top we early the workflow allow in adopter women, relative developing studies clinical clinical to to those We're really benefits us driving I really earlier, and potentially our and and risk, make bit right, now adopting phase screened customers right reimbursement. in risk. of women included our detection get the them Sure. the So as segment and data to the of get that really on biggest risk what prove product product little have right? is in to

marketplace. the several will the next phases we accelerate adoption as results see really clinical expect four and sort additional So clinical And matures. as data really of help to us We're planned some out that studies risk studies rolling XXXX. an globally with of we in of some conducting in currently in year, early this these as see sort of

really of the the or of kind So, would going right now, testimonials, first lifecycle. thing phase of in level, studies early after establishing we're customer a that in adopter creating KOL the product case you that sites, phase at do phase kind gathering this reference of

the question models? was risk. alternative then, that was payment So And second

Sam Eiber

that’s Yes, right.

Michael Klein

was a subscription relating think more question let's -- that was I to, Yes, say, sales -- that question that potentially.

clarify, different payment want each. Just model because to in have we a

Okay.

may of terms versus have in to increased So some to what be to pay-as-you-go at want tendency on folks Charlie give an want front, that basis looking may Charlie? of comments who terms may upfront. in we

Charles Carter

provide for create doing multiple for this as we products, offerings Yes. true also arrangements. we're sure that want different approaching what them financing to than I’d way various and say subscription the or we is and a rather demanding model make market the they're looking

wrapping sure touches the ability it customers subscription what with together putting it up and for. finishing that So offering support are now right looking to the the on are make we exactly market-ready a is

year. trickle a that early the a market next going of on subscription market, to cases a in from larger do we we're couple we we're and then QX So will we're into impact and model uptake that getting, have what the assume the hearing requests

Sam Eiber

Very good. for questions. the Thanks taking

Operator

go question and Company. The comes ahead. Please Jen from next with Laidlaw Yale

Yale Jen

exceed this you at in questions. you the mentioned Good of first question a penetration for taking is evening, about what level think currently the you ago moment, of do the Xoft have when that a of couple look and terms you revenue in quite My that dermatology, And at revenue. penetration was of point the major forward, sort anticipate the should this you Xoft? years the as this dermatology do thanks is? Overall, sources

Michael Klein

place, you of And Yes, health the fueled reimbursement terms regulatory environment need dermatology up, improving as require it of in this conferences by in by to let many having to want be comment which I coverage, attendance. doesn't brought no negative physicians me make and to business a on that do this. is, Yale. I'm reinforce that in again, decisions return a glad it's

in X only was policies We more XX country, all allows fiscal of units Medicare a as now basis. the of areas two of and where intermediaries degree was believe that difference zero to X And on that XX, when consignment only has recurring of coverage of cell this We largely the ago three years There is few good it even out which still intermediaries, a and million are to the high three few scratching opportunity. two have that the revenue to at a squamous that greater a XX% all words those Medicare on other cover, surface allowing carcinomas, as of comfort. million was were to placed time that the fiscal sent and XX% in good dermatology cancers. us ago. So doubled we're sales which dermatology, the a dynamic with reimbursement, us overrule allowing data watermark The years really have when more sold, these based to of to that grow. other or time clinical about basal maybe that's negative can of data. as of will that were that for Plus as

opportunities Particularly ago agreements move hit really kicked we and months. a that the the last we we a have we six that new in, year. forward. we opportunities momentum So partnership in as the exceed are and few dynamics the to mentioned that distribution place with built lot that far years nine can believe we've the saw so of And and in this agreements

So on sentiments dermatology we continued have part of the bullish Xoft.

Yale Jen

they relatively My Okay, terms great. these enterprise in are is helpful. follow-up That's question presumably very that accounts, larger. of

that more purchased purchase a more of typically are the upfront they and So up fill organization, will or typically are in purchased systems beginning few at they just maybe there be recurring manner? to their

Michael Klein

of might the for happens That’s I XD a lined question, now They and got to in Yale. typically say say, the come to sort product might say say they risk it like at to good and XD do not lot has But back occurred that country, your first, of may then and of portion onesie-twosie work cases Southwest. then do a upfront we'd detection the out would all because there's they risk it Southeast, they move Or going get of they might waves. and in product validate occurs that's don't the a the to which couple there. It and -- now in, change, once. one might example, they offering to up. the let's add do with that you've

of them few equal be I XD, there potentially even would be be or by majority placement subsequent into that overwhelming going bolus can followed to that ones are larger a XX, walk a upfront bolus XD XX, or some that XX of then of would a installations; size. a but of So accounts, say it the of with

Yale Jen

understand I appreciate the That's Okay, side. very that dynamics it. great. on to helpful

Operator

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

Michael Klein

trajectory updates thank providing to I joining businesses, we continue today. costs. do growth iCAD really further both the at of us all few earnings of interest for PM the to to remember sign now, with Eastern all everybody which our And XX, while Thank We for look we November as in want managing please appreciate QX our And report. is just being o'clock from up Thursday, Day, attending a our days today's that ahead. Investor you months for time. X next forward

Operator

This concludes today's conference call.

lines. you Thank and your You day. disconnect for pleasant have participating a may

iCAD (ICAD) 10 Nov 212021 Q3 Earnings call transcript