Earnings call transcript Q2 2023

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Operator

Good day, and welcome to the BIOLASE Second Quarter 2023 Financial Results Conference Call. Please note this call is being recorded. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation.

I would now like to turn the conference over to Todd Kehrli of EVC Group.

You may begin.

Todd Kehrli

operator. you, Thank and discuss everyone, ended for us joining XX, Good financial thank results to BIOLASE's quarter for today XXXX. afternoon, you it’s June second

call Chief are On to Officer. Financial Jennifer questions. call financials quarter, review for performance the Beaver, from and call operating will and in BIOLASE to company's before the the President Bright, review today John opening and more over for Executive the Chief then Officer; Jennifer the the John detail second turn

Before which that everyone be forward-looking historical financial we regarding and to a that statements company's remind will forward-looking presentation the begin, I'd anticipated are performance. like strategic subsequent number of including and Q&A made facts are statements, during this statements session, any not initiatives

are of Securities and These that and XXXX Such current defined Act of on Private statements the variety are assumptions could expectations differ the and actual under made. a Reform risks the and to results Litigation based to BIOLASE's company's materially uncertainties from cause subject forward-looking statements replay are will the company's website Securities of Exchange XXXX. shortly A the August XX, today's with conference this discussed view risks on company's and representative the are forward-looking today, These the in of completion call. Commission. as be the of available call of only filings after company’s statements

financial news earlier today issued results. to announcing release to XXXX listening the please company's second call, When quarter refer this the

with in a report copy results at Investor SEC. Form financial have the the www.biolase.com. not the website found section be which is will on also do you BIOLASE in be company's can filed XX-Q, release, the the If of news that of available BIOLASE’s

the net you as The release per in we loss share, well provided adjusted and financial more per review as to regarding and loss GAAP reconciliation non-GAAP non-GAAP today's EBITDA EBITDA tables disclosures. them. we've company's to additional share adjusted of so offer information unaudited loss loss a tables net The news information, include encourage

Beaver. call and I'll John? to With that Officer, BIOLASE's the now President turn said, over John Chief Executive

John Beaver

you quarter it. earnings results. us everyone. into excited to share get let's we right afternoon strong joining so are discuss Thank to today highlights, Good for the We another and significant quarter reported our second

Our revenue the represents was we revenue the achieved highest million. quarter quarter revenue laser highest It's mentioning was quarter's $XX.X of the since for This that reported since quarterly XXXX. XXXX, also worth fourth the the These the dental clearly dentistry. tipping into believe taking the we gold are become imaging I that account no sell. lasers of achievements to demonstrate care standard products for here is they because that in longer important point we've

we are quarter. proud and record of figure during demonstrating is products. demand year-over-year, $X.X Furthermore, the consumable revenue $X generated the This consumable to last another better than our million XX% growing up for with in the is our quarter, previous record million report

all Waterlase compared Our we on quarter to the XX%. our success rate with we due year success year-to-date to for track conversion our impact improvement seven high We Program XX% to customer which its reaching or second adoption. Trial WTPs WTP of the effectiveness trial our of positive interest. level rate during full XXXX is are experience a is about This program host of showcases contributing believe success XXXX, the and the for and hosted XX to on also

training. our of education on and is driver increased Another our key focus success

the response in led state-of-the-art programs, novel translating We from our rates. The lasers. to training increased attendance dental of which rising positive higher dentists from WTP witnessing and sales has community interest engagement our is into are education

sales XX% in US quarter. new Waterlase accounted customers about of market, continue As we to second penetrate the the for

products to the highlighting the Additionally appeal in dental to product were sales one-third our US almost of of specialists, segment. Waterlase this

dental are the studies have the dental train dental practitioners to raising community targeted more benefits our Through lasers and market. instrumental efforts peer-reviewed efforts of educate in recognizing practices within go-to-market been dental lasers. and our of the awareness Our their best-in-class with upgrading

command laser the dental market worldwide approximately Waterlase tissue brand. of our XX% we with all Currently,

have While as go-to ourselves and still for after a of quality all-tissue XX% estimate training, for reliability we market and established BIOLASE. the dentists practice, we a representing brand significant are using an not over opportunity in self-service laser

not pursuing actively who to incorporated have the three-pronged practice. are We lasers yet dentists strategy engage into dental a

increased we our EPIC, for and hygienist as specialists. such significantly pediatric First families, training specialists, we these Waterlase our dental by product periodontists, dental dentists, engage each have academies of efforts simplified endodontists have launching and to for

Waterlase are tailored practitioner opened general a Second Center BIOLASE recently US training in initiatives the increasing XXX,XXX provides we Trial actually state-of-the-art the through Program environment around dental like the our facility, Education with engaging dentists learning training comfortable the and education. which by clinicians engaging education over laser

courses including also Through are our is with state-of-the-art and Center The driving designed dentists provides to BIOLASE improve more of The providing initiatives variety laser to outcomes. BIOLASE is education. a Education LaserSmile, located safer patient we Center WTPs. and live to patient alternatives also these our dental events office to Education advanced and which host adjacent access adoption

of dentistry strong various adoption with momentum with universities. have laser lasers As and residency the into Waterlase remains the postgraduate we the embrace The from skills the in central dentists allowing careers programs EPIC early our fostering and corporate and look in future, to them schools focus our to the and aspiring across retirement. substantial country, partnerships dental equip gained on dentists

We growth. have over service events for alone dedicated we organizations training and adoption the Additionally, conducted DSOs seen the within our aid quarter in laser the DSO partners, interest enthusiasm brands. and the propelling networks XX future, adoption for the past of laser their advancement remarkable purchased standard to care continue In the dental of or the the in of EPIC envision Waterlase within elevating further laser expanding integration dentistry near industry. in and

opportunities quarter and second performance the to strong our are ahead. confident with substantial ability our pleased are we summary, in In growth capture

growth is of continued front as XX successfully But substantial achieving us. by vast Program toward plan success of Increased evidenced of majority education growth. consecutive in our us market our Waterlase objectives. training the the revenue our still the and our of propel revenue and Trial will We executing profitability are quarters opportunity

for call talk of questions. Jennifer look into turn point, At Chief provide results Bright, participation. will this forward Thank guidance for insights our over Financial the financial to our you the in-depth and addressing our to I the Jennifer? We Officer for the to quarter more year. your again your remainder about

Jennifer Bright

operational during the some around provide Thank you, John. second we to going some the well of numbers improvements I'm achieved quarter. the afternoon, context Good as more of as everyone. highlight,

refer financial please you of our details, further our results and For tables the can financial to XX-Q. release our which find in earnings

continued our industry-leading because our demand and increased reflects second Our of quarter dental and training. education consumables, for lasers performance,

XX% For million consecutive is the second revenue year-over-year our year-over-year. of of quarter quarter, representing XXth growth we This $XX.X delivered net growth.

record BIOLASE second XX% lasers. quarter highlights, year-over-year, increasing additional Some consumable increased procedures include: sales using driven by

second with and continued with from adoption sales US in specialists. Waterlase our sales of of from the new We XX% dental quarter, momentum coming Waterlase customers, approximately customer coming one-third new

approximately experiencing the consumables. rate of for we and compared the positive XXXX, lasers highlighting Trial year-to-date success than rise our the increased conversion industry-leading our quarter, to sales increasing XX% Waterlase to success to the rate These indicators, more of are program. our XX% Program with demand continued full are Lastly, dental of the this year all

components, end During completed with the we warranty from FIBER components. a ago our that in XXXX, compared an quarter. in us for acquisition This own gross third-party At our which quarter, in-house XX% manufactured of the This allowed of second expenses. goods, improvement XX% of new to margin lower us to has suppliers, overall was the has represents year resulted changing helped supplement components. has TRUNK key key reduce supplier those to cost

used year decrease from and for missing compensation current the $XX in year's On higher which stock-based this on in operating targets. meeting services training depreciation were shareholder decreases marketing, $XXX,XXX equipment due line, decrease and recent ago in a sales for the partially for purposes and offset million demonstrations, of educational nonrecurring mainly the financial spending expense down expense by was was performance quarter, total and to expenses quarter. in on our less year. These for This expense legal consulting annual $XX.X million the were

a net loss GAAP loss for was was quarter million net the $X.X XXXX. the XXXX, $X.X the quarter stock share $XX.XX $X.XX, the for split. of loss reverse million, of to for net of second compared as GAAP per for second quarter the to adjusted quarter compared for

for adjusted share $X.X $X.XX progress, positive for reverse continued for the loss quarter quarter EBITDA an loss adjusted trends toward compared adjusted quarter the of XXXX, EBITDA of quarter, the indicate was million $XX.XX loss for XXXX. for second split. of stock compared million profitability. the $X.X EBITDA second Adjusted achieving Our as second was to These per to the our

quarter of WTP are price and and cash to completed growth, the expect profitability, cost while turning cash we And increases goods million. the We we Now, have TRUNK FIBER balance we finished to sold to the XXXX, with contribute approximately lower toward to equivalents of ahead, our expenses. projecting top-line drive in looking lower as to acquisition $X.X sheet. due

to approximately our savings TRUNK driving XX% in profitability. reach close gross expect this in-house half XXXX, and internal cost of of XX% fiber the will as we we projections. first is made up of needed This FIBER Our to increased the margins shipped own we get well-ahead

to customers. end on its drive Center, WTP celebrated four using We lower our facility, train centralized dentists which own opening expect the at We grand of prospective July. by year BIOLASE this have now expenses to Education staff training the

with to facilities to locations no at also little educational We work WTP around country their to at events continue cost. the host

quite we savings mentioned, meaningful. year, XX host John will be this so the expect As WTPs expense about to

broader third cost Additionally, BIOLASE's ability our customer workforce. to value $X during generate strategies initiatives is savings to starting continue of The we the reduction approximately base. that to expect to of company's in workforce generating or and quarter, implemented gain company's delivering annualized revenue we the the roughly in our greater million a organization second XX% quarter. $X unparalleled The reduction throughout efforts cost-saving the impacting US efficiencies million the without part to included global quality cost saving initiatives

WTP for to the period comparable continued ago We of the We to and savings than year mentioned will year the expected the XX% growth EBITDA a for initiatives our we the margin, cost gross second XX% now expect revenue be of higher year. achieve higher with and positive revenue just profitability adjusted second half the savings, we improve believe, significantly I expect. half the

call With that, open questions. the for back call the Operator? to to the I'll operator turn

Operator

first a from comes At this our Excellent. we’ll question-and-answer time, We Instructions] Benchmark Bruce be session. do Company. with [Operator that question conducting have Jackson

Bruce Jackson

your among taking any customers. Has you a wanted about start questions. my the Thank looking on of the for credit afternoon. question I at? to with or macro sales, good types conditions had just on that products they're Hi, impact general off that

John Beaver

Yeah, thank believe you for Bruce, has. We your it question.

in of years, it have we second this macroeconomic revenue without experienced I the and many is even facing. against standpoint benchmarks While from that the prior the quarter mentioned conditions quarter revenue in fact some quarters growth best better that and the a our could been tremendous we're

I think rates. the sales interest hurt higher with did it

we whether I where a a I laser, underestimated to no on to will takes the impact it you yes tell months probably ago, six sales ago necessarily the complete versus or that but not time to not the want as -- sale. it on year or buy the I look had back I or -- were

the timing our I I we've pipeline of think become don't those So sales. -- any the longer. and lost has think

taking doctors under scenario. they interest than are think a different a I little time rate more have bit just would normally

Bruce Jackson

heard Is that dentist offsetting in true that? then mitigate that they having And that, are kind also Okay. still offices, about traffic. staffing issues increases any physician office we've of or might in

John Beaver

tempered they think believe from it's hear still but I I been staffing somewhat. -- have issues I what it's

is standpoint, I've I better of patient in from it was year traffic a same it think in an certainly From than the all was the about last foot it's the the staffing industry issues. terms year. as seen ago, numbers -- a

much. that So I don't changed that's think

Bruce Jackson

revenue then quarter. by plays And that guide quarter on terms in out question last one of Okay. the how

have see patterns. quarter you Would fourth -- can evenly matched? you will you year, fourth the Sometimes might very results or depending be the fairly is strong that third upon the this purchase that quarters and pattern

John Beaver

third and will quarter historically. that continue same patterns they have Yeah. We the seasonality the believe fourth

third And quarter. be our the and should quarter the higher for strongest so quarter the than fourth year

Bruce Jackson

Okay. Great. taking my Thank you very much questions. for

John Beaver

you, Thank Bruce.

Operator

We'll Ascendiant Woo now Capital. hear with from Ed

Ed Woo

that see your do Thank to Congratulations your heading you opening been educational Yeah. into center. yourself strongest on receptive question And prices? how has you. your to the My raise quarter? pricing able is do being it strategy holidays

John Beaver

Yeah.

the for thanks Ed, on So the center. comment education

increased compared this of for half year. first has year the last the to of half pricing first Our

couple price margins. a may help we would our announced that You and ago gross implementing recall were that of increases we quarters

I in think you the saw the impact quarter. of second that

we I existing say of quarter, lot on prior a discussions with First year. carryover from dentists would had going the

pricing held the to those dentists. so we we that previously And had quoted

So actually quarter it price to took about the in. get a increases

at look year. don't increases see necessarily each more the year, I second our having It's of sale. of second value we price getting the the more more pricing for As for and around discipline us for from creating revenue the half customers thereby half us

lot higher in For the we -- instance, that about driven price the talked on QX. that had A some consumable increases we quarter some by record of was consumables.

on on think customers an to higher a we value the was consumable education sale those led training, that basis. kind There talking to as I well. ongoing of And also placed

story make the as second increases standpoint always to year. of that. get year going any that revenue balance the from from But stated believe we do we customer we're as long the short, though -- I each in to finish more believe we're a don't a we'll have looking I So half price at

Ed Woo

Is your for strategies strategy well across that consumables on as different pricing your all those? products guys you device, do or pricing as have Waterlase

John Beaver

The that market. international pretty quickly as -- the only difference would say consistent we is as prices not is in strategy. US high raised we I in It as did And that the seeing market markets. still price the currency those internationally products with of the of we Obviously, dollar. local that in have was headwinds that some increases US strong we're the by driven have largely our

that to our higher And in equipment so dollar much because US we just the sell distributors. price it makes

taken we a increases than have we've So approach in say I'd price the more US. internationally measured to

Ed Woo

you. my question. a for I Well thanks you answering Thank wish good guys Great. And luck.

John Beaver

you, Thank Ed.

Operator

Instructions] [Operator

John Beaver

are questions? there more no Operator, Okay.

Operator

That is correct.

John Beaver

Okay.

Operator

for I'd like So remarks. closing back over it now turn to the to host

John Beaver

of on being I our delivering I dentistry. successful standard thank to commitment to Each want their everyone laser for has tirelessly want worked them thank continued BIOLASE of make customers Also elevated the great care for through an today's to dedication. call. in team and

additional testimonials about our technology our to physician to to from company details. If learn to BIOLASE an and you'd like presentation more directly video investor view patient go updated please biolase.com include and informative

day. everyone you Have call. Thank This interest you, operator their our in thank BIOLASE. and for concludes a great

Operator

does conference this you This time. disconnect and at may Thank conclude your participation. for lines your you today's

Biolase (BIOLQ) 10 Aug 232023 Q2 Earnings call transcript