- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Asensus Surgical Incorporated 2022 Third Quarter Financial and Operating Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mark Klausner. ahead. go Please

Mark Klausner

and Asensus everyone, update for us joining call. Good third thank quarter the Surgical financial XXXX for afternoon, you business conference and

On Officer. Fernando, are Officer; me Shameze the Chief and Financial and Executive Anthony Chief Rampertab, call with President today

I Securities could are associated differ to caution begin, pandemic provisions by any under Safe forward-looking results from discussed statements Company's certain listeners including the call, of no like business. our update and the with this the Reform those XXXX Securities due the Harbor implied Act you Actual the and later of including or during covered materially our be to management stated conference the XXXX. discussion of COVID-XX expected business, to make Company's from would beyond Litigation impact risks control. to provided this filings XX-K XX-Q with today undertakes with associated the February any we and with I that statements information filed Surgical Before uncertainties by Company Form other we including forward-looking guidance Private filings provided, the The the call obligation on SEC. any and uncertainties the factors Asensus in encourage risks Form other or information filed the review Exchange Commission, and geopolitical to XXXX and

these and related other by information U.S. Company’s are GAAP non-GAAP common indicative stockholders expenses excluding operating information to of uses per for release, tables certain certain in During believes and certain externally share conjunction both and to loss relative measures financial present to net compare financial to compensation to and of performance our performance net website. over Management with Management this found and adjusted provide competitors, results. Executive strategic measures the which common results loss core stockholders. not our the the that non-cash useful Surgical’s to call, our will investors management now taken from we to that the are financial adjusted attributable Investor common also non-GAAP to turn can U.S. measures in against call Anthony earnings GAAP decisions. in Officer, be Chief and Fernando. benchmark With for President non-GAAP plans, it's accompanying the pleasure my to non-GAAP that, Reconciliations our forecast Relations presented Asensus section attributable

Anthony Fernando

Shameze with you all Today, results. our Thanks, financial us for will review begin will recent I thank Mark, events and and discussing today. our then joining performance

and our I that will of priorities go Following to quarter third balance XXXX Q&A. over performance turning for before the

like our Now, I to an recent performance. provide overview of would

the application In events. community in our Senhance Surgical the or of by installed Unit one We one Subsequent Intelligent Surgeons ISU. and are multidisciplinary new industry Laparoscopic remain the region. quarter, SLS the announced accelerated initiation. Innovation a pleased Robotic and awareness XXXX focused Japan, system total of surgical an this we or the additional quarter the we September, benefits that year five increasing the to two four leveraging Senhance in base an educating for initiations, Award expansion CIS placement innovative surgery. of of on to received bringing in year-to-date We see the minimally to Each Germany, System Year in Germany, of on Society products the have in recognizes end SLS most system with invasive third system the

the team's clinical value commitment to our very OR. ISU that clinical are enhancing proud performance incredibly the and the excited tremendous community to sees of We the brings

insightful Center Annual European procedures a Society Medical the in [Dr. gave in Spain pediatric surgeon Maastricht robotics Endoscopic Senhance. success Hameed Pediatric We on class, his Congress an pediatric of Barcelona, Surgeons at focused also Kakera], September. University master during participated in in using presentation the XX in Netherlands, the late

recently showroom new grown very adoption, as country. to facility. global to the have great state-of-the-art moved into our drive This in with over a Japan a with last in new and seek have office exciting continue of training and our installed we in we is the few efforts momentum As we base Tokyo, the Japan, seen years heart clinical

and Senhance the surgeons two number and have System. are number facilitate that As eager the to laparoscopic Japan continue is to partner seen in digital order with to these market, procedures new with one technology, we this market we robotics will adopt hospitals laparoscopy innovative

our and accelerate across add work Senhance of talent adoption globally. of we to as We drive continued developments have the senior leadership team surgery to Performance-Guided

Shameze Professional Following and hospital administrators. update. President for With new and Education, Vice a among to we of bolster Global efforts of awareness platform the to Vice new addition recently of financial over I drive surgeons call to appointed of President turn our a Affairs the the Medical will Marketing a that,

Shameze Rampertab

Thanks, Anthony.

September system revenue, the the included ended third million million three ended in million XX, months The Company as in XXXX. quarter lease $X.X Revenue in $X.X $X.X revenue of revenue $X.X and in in third and XX, million the services. for million quarter XXXX the accessories, months instruments $X.X to Turning revenue, in three of $X.X reported to September million of XXXX. compared

million XXXX. the ended XX in months million were expenses XXXX, ended to months operating $XX.X three compared $XX.X September September three as the total For XX,

the three share to or was For to $X.XX ended common compared loss attributable $X.XX stockholders months as three of XX, common loss $XX.X attributable XXXX. million net months the XX, XXXX, net million, to $XX.X September stockholders share, per per in September ended or

earnings to ended XXXX. stockholders GAAP net per months net or consideration, adjusted to or which loss and retention per common net in employee the loss $XX.X for non-GAAP financial $XX.X credit, to release of adjusted to million, can a following ended our of value $X.XX three measure. Reconciliation an attributable the loss measures website. share attributable is months XXXX, posted September non-GAAP net million as of all loss share, and common contingent stockholders the Adjusted items, of net compared our XX, non-cash as XX, on assets, September was Adjusted intangible loss fair be in from is GAAP three charges. change amortization the tax in adjusted found $X.XX For are

back Company now million balance approximately had cash the excluding and sheet, to and to working turn XXXX. XX, for I'd of like Turning short-term the million equivalents, the $XX.X $XX.X September Anthony. cash cash, long-term capital investments, of to call over restricted as

Anthony Fernando

an data year highlighted growing the data. proves have the peer reviewed of made we as with In would the we the I of Shameze. like areas market for of These XXXX. haptic mentioned the for of feedback. publications efficiency world well supporting vital as world in vital new the enhanced Senhance platform, capability, had to third as across studies is XX. the of to with Senhance specialty. across This unique publications providing past, on benefits the how bringing for publications surgeons real list development, wide real total on variety of Thanks Starting of update clinical and specialty provide benefit quarter, the workflow cost system this effectiveness that and the Senhance's Senhance's focus breadth our we three multiple ISU, procedures a benefits key surgical progress research towards patients have for can and all are features

section our publications be reminder, can of under of found clinical these all the clinical website. a As resources

continue of we continued real we clinical our As clinical also data have our to develop to growing our list publications, registry. world leverage through clinical

of size accumulated and the the robotic-assisted in Senhance. registry, held investigator In Siegen, share scale, meeting publications, and studies in to that highlight thoracic, real Gyn TRUST facilitate are hosted together registry, the X,XXX leveraging St. Professor TRUST thus to industry's was key continues registry data was of XX% approximately data been over including opportunity in October, to collected Willeke with of the the XX% opportunities grow to-date. participating patients Amsterdam, focused largest on Marien the urology registry surgery, upcoming who to goal Our meeting far. which collaborating procedures. Hospital incredible remain The by consist which for abdominal laparoscopic and was come is patients, Germany. of has XX% investigators the general a an enrolled in we We registered world believe benefits with on and The and

very the Senhance of are the is our and improve the helping efficiencies. System data importance registry accumulating about this surgical the We and to and excited opportunities for ultimately validating provides research outcomes

in one of have As training the centers one mentioned located six the States the providing in our we Japan. United opportunity at is Europe, our participate focuses to surgeons and sessions past, in of

system the and System department our hospital. of sites. This initiations The to Senhance the with surgery. placed Germany System global of procedure has the Germany quarter, Japan initiated at Surgery laparoscopic quarter at in initiation, base, end Beginning program foundational the in general expansion new program their Hospital General development volumes with regular one Germany. placed was initiation to in completed Evangelical since to general work to Saiseikai Hospital volumes, similarly the in the footprint, quarter. effort distribution in we Most segment be for the our and a continue on the We became the system the in Visceral the the the the region. third drive Senhance next installation a additional Shiga Hospital Goettingen-Weende and of leased the increase centers used number surgery partner Ritto, program our seventh CIS surgeons and acceleration the of has hospital Clinic Senhance a basis. Goettingen, new in of the fourth in been Senhance within had Hospital the of of including and of four our growth Bernhard market through Kamp-Lintfort, sold St. is recently, of increased installed this

sites to to great to Ludwig had Germany. at patients. Munich and we Hospital for in the programs this region. von All in University November, located be This deliver Dr. German at of will are bringing their Senhance total another Hauner nine Maximilians the of In the benefit opportunities Senhance system installed Children's initiated System practice these placement

ever to be installation announce dedicated We are the very pediatric to completely procedures. Senhance be this excited to will first

feedback, dramatic of areas on especially for is minimize to on Senhance's As total to better, now initiation provide year-to-date growing clinical Senhance and surgery. at With System this the into can install minimally is tremor help base, and help second digital as advanced in wall. surgeons Japan very to world. integrated positioned outcomes fully important the our expand medical exerted only validates well optimal capabilities micro deliver hands for filtration in of haptic in instruments, on geographic Germany abdominal safety program laparoscopic complex an working forces millimeter surgeon. the pediatric features variability, the two creates invasiveness as fulcrum assumption five. these our system an reduce This continue is have by person to now predictable it surgical becomes. world surgical combination intelligence patients. and well smaller more invasive the and X instrumentation, that The the their and are System, reusable, devices the surgeons and in largest third Senhance Its features instruments access the environment adoption in greater area more market new the robotic-assisted

We these are thriving expand two going to forward. continue areas see to excited

Looking system initiations ahead, year. continue new to expect to for XX X we the

XXXX, customer based drive of a the As quality final our of our head on pipeline. remain we ability we to over on the of Senhance in long-term the confident scale quarter global adoption the into

we volumes, very In XXXX. Now multiple as procedure on Senhance case procedure video. with procedure continued volumes Senhance collect trends, system across procedure increased XX% XX% wide volume When procedures with increase variety turning specialty. System, completed a geographies over September and focused to X,XXX to we specialty the a quarter, performed a ability XXth, with the of surgical see have over of strong see across data remain the increasing have volumes surgical year-over-year. We to is and

of the surgery that In to continue Performance-Guided to returned surgical we digital accumulate surgeons to generate have more drive will to utilization insights United adoption typical hospitals superior environment. we appear rich a variability help clinical and trends data, we saw outcome ability accelerated rates library surgical operating As as reduce consistently enable volumes powerful and have States, procedure. their in and a normalized to the

Senhance. continue an surgeons In using addition, of increased we to see number

and Asia, hospital surgeon saw in procedure both points Importantly, hospitals multiple expect to more continue expand in have than Europe value we from rebound in in during surgeons single installations the slowdowns quarters. headwinds Senhance. to procedure to geographies. the resulting a we other install existing we driving some surgeon to volumes see the see coming multiple seeing quarter, clinical due in expansion from slower user uses, base Despite In the that which high a volumes European seasonality, holiday are COVID-related seen of the and to customers some

the reinstall new sites to to continue and these expect appear to We in the see we improving, hospitals recover seek to more be see COVID now, enhanced as system. region circumstances

our We with of in Dr. team Surgical have also discard, systems case the some Narimantas Senhance University Samalavicius his Hospital milestones their system. XXXth Klaipeda completed at read seen significant and Lithuania,

portfolio a develop to we to our regulatory the and applicability. Turning broaden recent upon further expansion excited and milestones System achieve to Senhance build are accomplishments its continue efforts, that additional will

in X providing and clearance and updates been U.S., features, capabilities pediatric this We point, demand early clearance We millimeter from combination have pediatric recently advanced XXXX. increasing we safety utilization forward you following and with of to to it for millimeter XXX(k) in haptic instruments. robotic the uniquely the application a systems to benefit Surgeon X this for submitted regarding including in have our not millimeter U.S. potential of strong Europe believe instrumentation optimized clinical X make look patients enhanced from feedback, able and

Surgical the expand and to applicability end expanded year. Mark continue Europe of expect of the and to Unit CE utilization vision or ISU, globally in the receive by Intelligent machine We approval capabilities the for

to Importantly, processes the filing which MDR entire surgical approved speaks one through achievement expect MDR new pathway quality platform. more will the Senhance of our to successful, of this the rigorous If the in significant continue the through of month platform European to platform in review of millimeter final year. new articulating this the process, early of regulatory and systems the be organization's the robotic the across launch expertise globe.We a the included commercial X be instruments

of and thoracic procedures urology. we received general approved the XXXX, for Senhance. and for by We with Senhance laparoscopy Japanese laparoscopic are to use announce happy recently for In Ministry that gynecology, the first in Labor Surgical Welfare MHLW or was PMDA approval system surgery, Health

wide Gynecology, Now, thoracic This our with procedures, in Japan for of as is with expands a meaningful already a indications is it additional XX total reimbursement. XXX including approval surgery, approved procedures the system general make to region. that and This patients of for more neurology mirror pediatric. surgeons of broadly Senhance and in that Senhance use Mark Japan and in adult applicable to approval the CE hospitals, indications in our

expansion benefit this from Senhance for hospitals seeing of Senhance's excited breadth and System very are and We the applicability. of surgeons

towards are of its We development have very progress and our the the pleased capabilities. we advanced goals with advancing surgery and made this past intelligent Performance-Guided quarter further

I'm open like into of reliable line proud innovation, the Asensus a work I installed take increasing would With so committed outcomes more year, head driving even like utilization system to consistent and dedication further. far them for for to year, that, we hospitals, to would and the patients. this safer, questions. As and moment growing thank to to we our their surgeons, has ultimately for remain the final very the team base and and done of quarter

Operator

now begin first [Operator Cantor Our question question-and-answer from will Ross ahead. from Fitzgerald. the Please Osborn Instructions] We comes go session.

Ross Osborn

Starting the four off, you've one XQ, installed quarter. during announced post you the systems

So you the bottom three guidance. more need end your to of hit

So stated what you to achieve otherwise, reiterated target? comfort you how guidance? conversations level are in Or along your in far of hitting have hospitals with do your

Anthony Fernando

Yes, Ross.

pipeline, guidance developing have and the it time pipeline a before stated long over period the the relatively of we But question. good hit do think, numbers. I So, has to been we

they very of criteria various more local are are about when have hospital, think the to hope related. where and we some the is relatively hit reasons, pipeline financial and robust the the -- due timing, half I certain others mature believe that doing it's guidance conversations to year. and a So, in of and to stages But we the timing month out between coming after close and that I the

Ross Osborn

pilot the to looks And hear switching tails, then, great. that transition kind like? to Sounds watching can articulating curious of from what instruments, quantify guess what us help I you full just acceleration commercial to

Anthony Fernando

the articulated compatible So, instruments the those it's with system I instruments. guess making and available

for certain a instrumentation. also through the pathway go to upgrade of system have the the that new hospitals make and sure we use understand the So,

making instruments in and getting the So, sites transition that that more the of are are sure systems compatible we and up process running. with now

then we system very of this changes starting the U.S. to soon, so launch, once and these in about the initially I ramp get in commercial So usage we think before clinical Europe. year, start talked of of final of to upcoming the Europe end systems full see the approval we will a moving our where up

to ramp very what close the up. once are straight do, and now kind has are the, do sites be And start of seeing running it to instrument They So, instrument, to very customer should to these getting months. made use? launch the we they in want but the that the they use saying instruments to the articulated use we do of or instruments want that kind I and up here want we we weeks using compatible coming think once okay, ready and with

Ross Osborn

then the the on and going development published And be it this quarter? publication able prepared the we studies? for provide forward, the takeaways important clinical and Would little but from touched data see of your one is remarks, last your efforts a And during can what more maybe bit you expect color to me, you in story. an part on three key to

Anthony Fernando

So, a of data. actively have good a when sizable there's slew takeaways, engaged yes, you registry, are especially whole and there Ross, investigators,

we case do on. looking can at Senhance what another outcomes part, start number, in that cost, they seeing be I the they're also to equal is the good fast terms the looking data order to are this we come And at laparoscopy. you what versus than just need how that clinical looking would close trends laparoscopy you more beginning of we case. piece what can say are seeing, And of need stream at areas clinical So, have costs? at that times seen then also in their or this comparing outcomes know, And looking in outcomes, play. are Senhance? laparoscopy And volume saying to that get you and Are say, a there comparing a to see, better they we of we to how some data where get efficiency in to good is work is track in because the clinical focus

So, it along. is coming

two to I in think leveraging data on outcomes. clinical to improving tracks opportunities a there's further led further TRUST and the this other work basis pretty that's the one, the and registry, ongoing benefits investigate continuous the for investigator

the interested the with sites use data big to So, can And evidence a the real high for to installed, and it systems getting part work other use we world very able be volume that and really plus world generate Senhance System. us trying is that is now the produce leveraging benefits have of to for to evidence for XX real we goal us. sites

Operator

comes from go Sadeghi Jennifer question from next The H.C. Wainwright. Please ahead.

Jennifer Sadeghi

HC dedicated your we expectations on if Senhance the announcement be the population. Senhance poised System. pediatric would as and of just XXX(k) to this you first of Germany timelines in exclusively of new is in Thanks. I be Any for taking could on for as program U.S., details wondering, Jennifer congratulations some this Sadeghi utilization to in recent utilize on additional the forward? maybe the get color indication Hi, appreciated. of the I Arcade. going And questions. was hospital clearance will on some this the understand submission for nice from well Thank the Wainwright your the pediatric

Anthony Fernando

Hi, question. Jennifer. the Thanks for

in with performing hospital unique recently to they we had partnered approval primarily we've pediatric cases, we Europe acquired hospitals, what and a and and know, you as the was announced in So on focus pediatric a few currently pediatric very because cases. system us

FDA half to a couldn't hear timeline. timelines engaged a that give just I time us say submitted specific month But is for timeline, the but that to you expect respect that and an see for the us we it's With think one to is first for focus the you on hospital what exciting to so a I to really in ago just it submission, are we that's with seeking seeing and would exact in first is would reasonable variable, back. about pediatrics. this somewhat I are me But very would we of assumption 'XX give clearance. the the half hard first So,

Operator

concludes Surgicals I'd the any more President are in Asensus Anthony no and and closing to over question back for turn This queue. questions Fernando, conference CEO There like session. answer to the remarks. our

Anthony Fernando

updating Thank in you for interest next you look again and we for joining. forward call. our that progress Thank on our Surgical, your to Asensus quarterly you

Operator

presentation. attending for Conference concluded. has now today's Thank you

You may now disconnect.

Asensus Surgical (TRXDW) 11 Nov 222022 Q3 Earnings call transcript