Earnings call transcript Q1 2023

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Operator

Good day, and welcome to the Asensus Surgical First Quarter Financial and Operating Results Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Mark Klausner. Please go ahead.

Mark Klausner

thank Quarter joining Update XXXX and Asensus for Conference everyone, First Surgical Business afternoon, you us for the Call. Good and Financial

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

materially would forward-looking begin, with caution to of the of harbor from statements by our covered geopolitical Act Litigation I information business, XXXX. control. including implied any to could differ the listeners including our conference provisions during under stated this Actual Before call, certain by those Private guidance discussed like we that management provided, Reform Securities forward-looking are risks results or and the any due statements beyond uncertainties factors associated company's safe

no this to provided obligation information the call. undertakes on update The company

risks Surgical the make Form For the review later any Exchange March filed and XX-K we filings with other uncertainties SEC. and today encourage and XXXX I a you Commission, associated discussion Form and business, be Securities to expected with the to of in filings including with the company's filed the XXXX XX-Q Asensus the

are and in of measures indicative management certain useful by investors provide During to net operating call, expenses that not stockholders loss related net to both the we taken core conjunction for attributable stockholders. non-GAAP excluding financial that these present attributable financial will adjusted and non-GAAP this certain adjusted to with share U.S. loss measures information GAAP the information believes financial results. per noncash and common common company's also other Management

found competitors from GAAP accompanying the website. are in Investor to section strategic our performance our compensation to non-GAAP be relative release, decisions. benchmark Relations in tables Reconciliations Management forecast U.S. uses non-GAAP compare certain to the earnings outperformance can against externally for financial which of plans, results our presented and measures to

turn Officer, my Fernando. it's pleasure to Chief Executive to the Anthony President Surgical's over and that, call With Asensus

Anthony Fernando

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

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

We including the was The number focus, body utilization productive first significant of the of of at the progress development a portfolio. expanded key of our made of our areas ongoing Senhance, quarter of across and continued evidence development clinical our highly Asensus.

addition, we unveiling particular, announcements, of exciting that number LUNA System a very Surgical of the In had our is in in development.

Procedure optimize our our The which we look volume delivering quarter, to more and During through first continued geographies surgical over continue our to effective positive across will digital us machine with XXX the XX% the ISU. year-over-year learning very volume the clinical trends growth. procedures larger and critical see surgery is data, as procedure multiple specialties we expand to enable surgeons to of collection deliver more engine becomes, intelligence capabilities. to

support bolster increased includes of the postoperative a is of volumes which high-quality and will our Another increased patients. registry build expansion of benefit interoperative development our of procedure unique purpose primary number follow-up data, over publications registry, X,XXX this strategy. to of market clinical collection XX-month The and which further is clinical now

some of new be expanding new was leading to continues partnerships institutions. excited one of growing initiated which in to are region's Year-to-date, our Moving we Japan. be program, we the and initiations. Senhance to program Japan regions, one our have with fastest

in at initiated Hospital we recently, a Tokushukai Kasuga Fukuoka Most program City.

region continued feedback see look delighted from throughout supporting We to forward. the are moving adoption forward to customers and positive the

receive across capabilities which high portfolio achievements. the had for continues with ISU, the expanded development QX, the obtained approval we in to we On praise CE Early vision front, multiple Mark machine the industry.

in technology Solution was medical industry. X recently our in with named where X,XXX from ISU to This nearly the as MedTech from the against the it was category. commitment first globe, Breakthrough, across a remarkable New innovation the prestigious boundaries nominations awards, ISU the of and honored the reflects surgical competed we achievement Technology The is Best pushing

comes Future potential honored Digital title. second for Robotics of from Digital Awards the surgical ISU has digital Platinum and the Best ISU where the Innovation, our the and in our in Excellence outstanding to as Juniper robotics surgery. a field are The awarded Solution capabilities Research been recognitions These revolutionizing Medical Winner Health and testament of

tracking solution feedback, eye System procedures, the a surgical is includes with and today Senhance market control, which The provides of during ISU integrated the measurement suite tools haptic real-time digital surgeons their that on with tags. camera use the only to digital

to surgeons are the seamless enhance team to without at control that camera also surgeon communication engage digital allows the console tracking the There and tags OR the website the the between and experience. operating pausing position further Eye support room seamlessly procedure.

anatomy by allows ISU distances contour the decision-making. and surgical tools digitally Digital enabled and to mesh interoperative the support the surgeons of to over planning measure quantify

Senhance March, late packed SAGES of by had broadcast tremendous this we Vivianda To attended breakfast of live in a Surgeons hosted or Gastrointestinal Society and also of attendance with interest surgery and ISU. full We intelligence deliver ISU in room we this the off moderated telepresence Dr. Connect. symposium the sessions This platform. on with a Montreal. kick performed In our conference Senhance where and to capabilities in Menke our Asensus' our to well Senhance Senhance hosted we to American surgery Endoscopic capabilities at Germany event as multiple a from from Interest ISU conference. outstanding as augmented an focused year's booth, our in conference ability System led the SAGES, through both demonstrated strong

the better importance hosted on this surgeons. focus an pediatric market, key underserved with the specialty. surgeons a of engaging special we pediatric unique We U.S. with understand pediatric for had needs Finally, several their event to

Congress We also DCK XXXX Surgeons Munich, in attended posted or Germany. the German

fully of and a the tools. hands-on of from surgeons than and demonstration event, Senhance SAGES, surgery a This in to hosted individual attention System deal booked dedicated time XXX During ISU more to digital and agenda which great to for ISU similar more learn the attendees. experience this we live have a led to the Senhance drew

To continue the expand surgeons and support a pediatric SAGES, and better can research European we the learnings their specialty. from pediatric how market to we key for on focus needs further group on of understand hosted the our

We Italy will continue in this the Pediatric at IPEG into focus Society Group International next global Surgeons European ESPES, joint Pediatric and and quarter Endoscopic meeting Endoscopy [indiscernible]. of

to developments. other Turning recent

developed partners Investor from nearly we Day we X As years which the course about next-generation during excited currently was our LUNA performance We encourage watch of is learn hardware software to to February, scalability. hospital the are believe administration. you incredibly Day LUNA Investor the our and about in in entire over of strategic enhances we development. input OR reliability, surgeons, and with System, and unveiled teams, safety, webcast combination unique that

in signed definitive commercial of major progressing In understanding step, represent STORZ, expanding an and capabilities. player and development industry. February, memorandum The disclosed KARL we had surgical agreements reach are our important a with a the device we towards signing will

the KARL will of base. to are it organizations completion, possible. Upon extensive to to enable diligently as benefits working Both Asensus as STORZ's quickly agreements finalize bring the customer global the ISU

the highlight call turning presence Shameze, our expand pediatric the I space. to to Before in continued wanted over to our efforts

calls, the effective the ISU's at discussed procedure. platform at Senhance's clinical As and of previous uniquely combination feedback length we intelligence pediatric performing X-millimeter on haptic make have the instrumentation,

we this in globally. to CE clearance indication deliver XXX(k) pediatric outcomes of pediatric With surgeons better have this a received a Mark in ability having FDA clearance, we U.S. After XXXX, help now received March for year. FDA the

work at hard been to real-world also have data. We develop pediatric-specific

Senhance our study Senhance the safety XXX(k) of experience pediatric During quarter, in in in conducted using first U.S. procedures approval was published paper a utilizing cases. the platform IRB prior detailed to and that pediatric with showcases the feasibility early clearance This

on and population surgical from XX The surgeries months the years procedures procedures. removal, of types These other and its results and hernia urological GI X effectiveness. gall platform patients further These pediatric validate the team safety of to performed early repair potential of and successfully highlight included bladder our in age. ranging

see specifically to continued have interest the ISU and Senhance We using for in pediatrics. increased

there to our for accomplishments of underserved will be quarter, focus installed Surgery be system our we efforts largely first bring a a expansion breadth fourth demand. Germany all surgery of with to the Performance-Guided to of that a the to exclusively to long-term increasing benefits the a opportunity their In the and during pediatric announced meet believe in continue positioned market, is the during how which we pediatric department. of ourselves with thrilled have We quarter As used I'm significant summary, we success.

With that, a call Shameze the for I will financial over update. to turn

Shameze Rampertab

Anthony. Thanks,

quarter. the first to Turning

quarter months $X.X as For $X.X $X March the instruments compared X months of in revenue in and X lease in ended the Revenue of revenue, the services. million first million XXXX XX, XXXX, to company in XXXX. reported and XX, million revenue accessories included $X.X March of $X.X ended in million million the

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

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

net Adjusted XXXX. $X.XX XX, the is share $X.XX contingent following net noncash net fair common For to as intangible per loss million X $XX.X the change compared items: adjusted per in of was which of or value March loss GAAP in XXXX, are X March $XX adjusted the share XX, of for both net and months assets or months ended adjusted attributable million an the loss amortization ended charges. considerations, stockholders loss to of

GAAP measures found net is common release. Adjusted Reconciliations non-GAAP can stockholders measure. non-GAAP earnings from our loss in be to financial a attributable to

cash, of balance of cash million approximately XX, short-term company the $XX.X cash March long-term Turning sheet. to restricted had as and excluding The XXXX. investments equivalents,

I'll over turn the to call back Anthony.

Anthony Fernando

Shameze. Thanks,

much moving and and XXXX to and Turning the expect of we program, we what during of with quickly LUNA testing filings. the Starting the of into half the years ahead evaluation completed balance over R&D to back last have year. are of the few the achieve regulatory

tests we XXXX, manufacturing surgeons preclinical system systems perform second half evaluations verification end freeze capability. by of before we'll the the validation our XXXX, In Then of ramp the and design, the fully half the system and feedback of the have first completing provide complete testing of during to up built year. will

to FDA in bodies submit to intend we and of expectation the XXXX, in of mid-XXXX. and end the FDA Europe clearance regulatory other Japan receiving the with By

pilot a We will then launch move half of XXXX. second during commercial the into

progress systems, continue we forward. towards as We are launch our in updates these of to the provide move confident commercial and we'll

relates new XXXX. it we XX continue Senhance, to to Senhance initiate XX to programs during to As expect

for first we saw what volume to track growth Additionally, the rest we expect the in similarly XXXX to procedure of quarter.

coming the will than the have the make The of data procedures The sites it instrumental. level this And With Performance-Guided half can collection, significant of to these innovation able to been more will nearly we has be continue ISU our and additional in increase sites through to fourth collection and leverage. hope utilize data Surgery. tripled in the by ISU months, drive as sequentially, advancements collected we data quarter. the we using data

at are times These exciting Asensus.

continued the global reality. to deliver thank to surgery. have team a capabilities patients. We work boundaries technology make to what's their need our will surgeons dedication in And and of robotic novel to this hard possible their pushing want consistent deliver outcomes that the tools better, we for more truly and to for push I keep

Meeting, of on details Stockholders to XXXX. held to about turning investors I Before our upcoming X, will virtually Annual Q&A, wanted June which remind be

on the the filed end of and see meeting was more our discussed, proxy what matters April. For please will how be which statement, access at to information annual

for With that, would open the line I Q&A. like to

Operator

from first Fitzgerald. Osborn comes Today's Ross with Instructions]. [Operator question Cantor

Ross Osborn

Congrats and progress. on industry your recognitions

there provide? placements? So your starting going to on in off, drive you you is launch any an the think pediatric And do feedback inflection more that's could system

Anthony Fernando

Ross.

on about talk we start how to since very SAGES. U.S. able which saw those time additional -- pediatrics, with interest, we've active the following we But there's see been at to couldn't been we then, were have be accounts now, to speaking until for just So got And might up we we definitely not approval. some programs. and we

And you know, in that's started, site. also with growing. one Europe, We as

then And Now are there's X. been interest. in up sites be Japan, we to X soon and also

definitely, no So is of there interest. shortage

speak about this can other adopters the their program. and sites connected the that It's start technology organized early they of before to trying some so each they of to get

meaningful And share we robotics it -- given solution So overall, I some differentiated within have think the -- opportunity. there in an and in unique is because for is System and to it a offer, haptic think will instrumentation pediatrics. the feedback is the I be truly there that Senhance

Ross Osborn

maybe then And Shameze. Great. one for

sequentially through already just the year-over-year. imagine I Could large of you R&D of fourth I walk LUNA, part quarter. had the drivers a during is and there? come but some it the thought into had there's So in that step model

Shameze Rampertab

in sure regards your work And year, our towards that LUNA you event of a Yes. investor look ready out of unveil, Anthony Ross. Thanks of we terms making with had QX to And in seasonality we be in terms to question, getting effort for QX, tends for our which we to lot continue did on us was investor milestones burn the With laid at ready heavier general LUNA. this the and for event. at the QX a of year-over-year. when spend quarter in

standalone ISU. And we also we disclosed a working towards that are

U.S., Japan, is Surgical have the the Europe So into we integrated Unit Senhance. and in that's that approved but currently Intelligent

will a this So ISU. standalone be

we're a be run QX terms of in of rate. But indicative projects not towards. should So the lot the great of that rest working quarter of that

Operator

our Li Chen comes And today question with next Wainwright. from H.C.

Li Chen

Anthony hear and Shameze, can me? you

Anthony Fernando

Yes. Go ahead, Li.

Li Chen

a add percentage anticipate there? are Is sales like it just X/XX additional potential want Or of another or to the question you specialty market to the feel I the sales surgery expecting force size pediatric same adult And pediatric of volume is the what's there? force? in you patients. the do to use get

Anthony Fernando

Li. for Thanks questions, the

look procedures somewhere answer million the I we it's million a U.S. just size, a you not a to can of lot assumption X for so -- of mean terms of is approximately whole you tell -- It's give reasonable say, hard But I in I think would respect number because data million I at kind to X if it's X definite trying market X market available. the and with size. scale, to it's to million between

to before I few with really published. a up us respect and Then goal sites pilot get think on hard sales really the the force, some for we data front, is think to commercial the push I and running get early

we think move use to clinical existing us teams will and commercial this existing I So forward. our our sales team help

we'll but I also a focus that said, who side some in the Europe on do do tend and want be that have Japan, of pediatric hospitals. staff this have are performed lot we But clarify to pediatric more clinical there developing on that to support in more support

team the So there's a expansion little be will will into most pediatric. bit of specialization. that part, support the it But existing the for

Operator

And from our next with Ramakanth question comes RK H.C. Wainwright.

RK Ramakanth

questions I apologize been have asked. if already some of these

Just especially are plan trying the that to of year. sense where you to Surgical do also and get during a of with for testing the -- terms LUNA in evaluation this some of System, you preclinical

Anthony Fernando

Sure, RK.

delivering setting for system is full X criteria. year we So milestone sure we end-to-end, year-end have I the on preclinical goal of this -- we've try think like is the that a do The milestones. make the a test in really we stated, so can to kind performance that system

work it kind of preclinical either also And we or to tissue feedback be ways, small-scale gather right? intend of for could and testing both even surgeons -- some perform where a models goes and bring using year, throughout a it make in more the platform to

We view, know the robust. we what also, think know development is need solution a to that surgeons of point from and

surgeons get further us would where of help the milestone towards the say would evaluation. I to of year that we will and preclinical doing one system milestone be and develop, a to feedback year-end middle the full So get leading

RK Ramakanth

testing Or pathway? And I regulatory the sort think when -- what's do basically, as question of do any before? that's I to such have. you clinical then need the

Anthony Fernando

Yes.

all we following. path because -- so for follow we're [indiscernible]. to I intend are we us, current That's the [indiscernible] think XXX(k)

RK Ramakanth

then Okay. you're what to Can give on the on sign or STORZ, parties how this as working both KARL know color close to additional I And relationship. still the else line? are done on before get you any can dotted needs you

Anthony Fernando

Yes.

an It's complicated a extremely So question. great I agreement. think

involved, there's IP is there aspect being business whole commercial R&D manufacturing on all global imagine, there's discussed a can regulatory, scale. component, you As and a there's then

It's and U.S. the not the It's just Asia. Europe U.S., for

and a of going lot lot complexities a are of conversations on. So there

So both soon say I'd up to we'll we diligently make very companies And but it wrap as is try that. made. finalized, to are as possible, as as we communicate soon sure working progress it get that

Operator

Ladies the session. this like and turn gentlemen, conference to question-and-answer I'd management concludes over final our remarks. to the back for any team

Anthony Fernando

quarterly forward Thank for you, We Asensus. you joining for next look operator. on of to support our Thanks again and us today your call. updating

Operator

and today's presentation. Ladies this for you. Thank gentlemen, conference all thank today's We concludes call. attending you

have lines, You and may your now a wonderful disconnect day.

Asensus Surgical (TRXDW) 11 May 232023 Q1 Earnings call transcript