Earnings call transcript Q2 2023

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

Operator

Good afternoon, and welcome to the Asensus Surgical Second Quarter 2023 Business and Financial Update Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] 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 second 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 are to could caution begin, associated differ provisions under Safe our by forward-looking discussed any statements certain listeners including call, of like results from this Company's Securities Reform those due implied Act Actual factors control. Harbor during of including or covered materially management our to stated XXXX. conference would beyond business, Litigation the any risk we geopolitical that information Before risks with by guidance Private statements provided, forward-looking the and uncertainties the

XXXX update review and undertakes Surgical information Securities Form later any with Company's or associated no the including this call make and to in other to of be Asensus with filings Form with the Company today you on the expected the obligation March discussion encourage provided filed risks and we and to uncertainties filed XX-K filings SEC. I XX-Q the the business. Exchange Commission, the The XXXX

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

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

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

Anthony Fernando

kick us our recent joining performance Thanks, overview Mark, everyone, To and I'll results. thank Shameze an will provide financial which for today. achievements, off, and after key detail our you, of

Next, I'll we XXXX update of the the before open for questions. our rest line for on you priorities

the made all good During we quarter, key second areas. across our progress

remains capability our our of the clinical focus surgical Our on adoption to driving and Senhance, portfolio of utilization expanding evidence refining of ISU, Senhance. or enhance broader our the advancing body further of unit intelligent

new excited we in surgical system. with about Looking for Luna future ahead, plans of place development the our are the

key our to in a volumes and ability remain our expand capabilities. optimize factor Procedure digital surgery

we continue to to ISU. valuable allowing becomes As us machine effective, provide our collect data, to surgeons through more intelligence engine clinical the learning surgical

second growth growth, over quarter, over performed Senhance we sequential delivering a procedures across positive the X,XXX continue XX% see During and XX% year-over-year robust of to trends, variety with specialties globally.

quarters, commitment a maintained past reflecting sequential have and consistent XX% the we Over to rate, progress stability. growth our

procedure Another volumes the of of registry. increased our clinical positive aspect expansion is

urology, which data cases with the and participating by of sites been gynecology, over has growing a includes patients now number registry general expansion of trust Our aided across continued from the surgery registry. XX,XXX in

strategy. support contribute The to intraoperative quality of follow-up will market collection post-operative to data. registry primary this of XX-month used be publications and This create goal clinical for and is to data increased a our an development number

new year-to-date. to We Senhance new initiated programs two initiation. Moving program

with into Kasuga in which earnings was Hospital City, as we we our prominent our Fukuoka enter In in agreements Japan, first growth institutions. Tokushukai continues previous call. The highlighted

the region. the to We momentum adoption are pleased are with in the supporting further country forward positive and looking in

system milestone program that of hospital important exclusively based Senhance's the as pediatric pediatric applications. marks utilized a U.S. unique has is at pediatric a exclusively first hospital. initiated their Senhance This surgeons second suitability highlighting an by be the within surgery to this The U.S. is leading department,

ISU, Senhance, be about active Luna. key generate and to to continue meetings excitement industry at We ultimately, the

In Melbourne, all the surgical specialties July, Surgery SRS we participated unique in in Australia. meeting Society various where robotic event, a technologies is from annual of come or Robotics SRS together. held

we event, opportunity company the showcase LUNA ISU. had podium presentations capabilities During unique featuring the several providing surgeons symposiums and an the and and representatives Senhance, excellent both to of

in and this were LUNA ISU our event engagement at The signifies and driving substantial digital interest our presence to surgery. encouraging we innovation and regarding robotics particularly and commitment received

We of ESPES Endoscopic master robotic class, hands of Additionally, around in our robotics meeting. or class the joint surgeons received the Endosurgery including and master of meeting training or the a Society International first and system attended Group Surgeons precision pediatric events, Pediatric number efficiency key the Pediatric globe we European from which of The surgery. hosted ESPES IPEG feedback sponsored the positive on explore in and sessions the allowed pediatric showcase to procedure. Senhance our

over of these of quarters, validation on influx conferences we've be potential the several to strong seen Senhance’s planning amidst new market. systems of past few attending the the After

an and real intelligence sets Our excitement from interest. we over generated and backed time hospital world understanding has are needs market future us valuable of apart. market administrators augmented input of alike real The user confident we experience edge by unique surgeons offering hold and

recent Turning developments. to other

Since the expanding XXXX, pediatric we March space. in during earlier, having surgeons. our seen FDA stated interest made quarter, in clearance we presence progress pediatric from in received have the we As strong

and Senhance the the world and highly makes have The cases. intelligence along procedure. pediatric promising Our as safety it Senhance’s results develop such clinical real features of feedback data for specific combination millimeter effective efforts of shown pediatric ISU's using feasibility to in with pediatric demonstrating instrumentation haptic X

CE We to FDA necessary support Mark allowing and globally improve clearance have us clearances outcomes. XXX(k) approvals, the obtained and including surgeons and

and our market. in to for strategic I'm continue meeting the are Senhance and quarter the We pediatrics long-term growing with we've success. committed conclusion, and see to progress in in made ISU positioning the second the the increased for In demand happy interest

provide update. Now, I a who will financial to hand Shameze, over the will call

Shameze Rampertab

Anthony. Thanks,

in for XXth, June in second compared lease $X.X quarter, ended months of June in months ended the and the $X.X services. million $X and instruments revenue the in million as in million three of to the revenue, $X.X three included million the XXXX. quarter XXXX $X.X reported XXXX, of accessories, company revenue second Turning Revenue to XXth, million,

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

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

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

assets, our net following Adjusted value of found impairments items: loss are stockholders be all non-cash can of to in and intangible loss change GAAP financial release. in contingent earnings adjusted Adjusted net of non-GAAP net is and loss which non-GAAP measures attributable charges. from GAAP consideration, Reconciliation to amortization common for the is fair of property equipment, measure. a

to million $XX registered term allocate balance the proceeds of of company XXXX. equivalents, capital July, and XXth, our funds research offering to investments, the as In subsequent to $XX million. had sheet, We of and of short approximately development. gross to completed excluding bringing and June cash the restricted cash Turning cash, we a the direct to plan these second approximately working reinforce contribute quarter, in end

has cash recent current XXXX. plan, runway the been extended our we project operating and financing second quarter of our on through late Based

I'll turn the call Anthony. back over to

Anthony Fernando

you, Thank Shameze.

of balance are to LUNA now R&D achieve of year. have ahead what for evaluation focused XXXX the and back half we significant progress made filings expect to of on the testing and during XXXX. regulatory preparing the to Turning in With we the in regard and program,

complete the finalize on year. testing By we [Indiscernible] includes quarter completion our Preclinical the surgeons system is procedures manufacturing of LUNA several to by end of system quarter with and model full scheduled end XXXX, fourth the system which this a of third for and evaluation, integration the strategy. performing intend

to end Our FDA XXXX, QX aim Europe in XXXX, and up bodies to systems plan other Japan. ramp and beyond the designed to the submit Looking ahead verification conduct freeze of testing, XXXX, and regulatory we pilot the is By and validation of in manufacturing.

of receiving in mid-XXXX. the FDA expectation clearance With

XXXX. Following of this the milestone, we will during proceed with second-half commercial pilot a launch

relates LUNA As like would go-to-market key to it two I advantages efforts, our highlight. to

Union, regulatory streamlined the to States, applies this significant First, Senhance, and we presence also based U.S. the with regulatory other regulatory the believe expect we positions market clear contribute XXX(k) than pathway a expertise of continued expanding parts and the believe Japan, regulatory leverage to but regulatory we rather of market other and space. significantly communications the to favorably in-house intensive us a process the will LUNAs We to this outlined to for novo de that our cost pathway only new a In derisked be have for This This to entrants to pathway. traditional FDA, advantages, on able time time submissions more compared European effective LUNA. successful for in to not approach United strategy our U.S., world. series globally.

we LUNAs us innovative allow platform's model, the adoption. drive believe performance, combined strong with Second, clinical economic commercial disruptive will when to which

approach greater available through for adoption current LUNA a customers economic way by in based the model our hospitals our laparoscopy. cost, LUNA for broader leasing level offering This potential and significant a innovative capital subscription increased model, to without to paving aims increase provide to addition purchase model. they In there of be are the the is for to to compared flexibility a of accessibility system procedure

We ISU to milestones two Turning XXXX. during reaching ongoing anticipate efforts. development

finalize an advancing future in strategic crucial for expanding And steps LUNA the These The and the by the provider with first entering our the and developments digital ISU end second-half. manufacturing hardware a are ISU. ramp in into with of the second, up program capabilities graphics agreement fourth to being quarter. our pilot

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

will the has that more second months. data seen insights the been collected Additionally, the first The valuable follow even additional in crucial coming anticipate procedure and we remainder this of of ISU and trajectory in these growth are optimistic we year. similar adopt as procedures a the from volume sites quarter as

exciting times make excited to to particularly with year-end. preclinical at in Senhance. These by are progress are LUNA, we evaluation, which aim the complete we Lastly,

We better, digital and deliver of to outcomes tools to push for deliver the and capabilities keep pushing boundaries surgery. what is in patients. need that possible will And consistent surgeons have we more continued the to robotics their

With the would like that, line questions. for to I open

Operator

ahead. now comes session. from go at [Operator question-and-answer Wainwright. Please RK begin the will First H.C. Ramakanth. We Mr. Instructions] question

RK Ramakanth

is Shameze. Anthony this RK and from you. Thank good H.C. afternoon, Wainwright.

know, driving you above? me. see it's sustained that, encouraging least from assure have the in volume now. for you Certainly, growth of growing know, growth questions of quarters at really when are also quarter-over-quarter you what sequential you, what yourselves couple three and to So, XX% that XX% the procedure I done growth is XX% is and that and, say what to either [Indiscernible] you seeing

Anthony Fernando

RK. question. Hi, for the Thanks

that we try familiarity once when time few the you a So number we And gain more of same this I passes, there start to at when the we the think how -- are that hospitals know, hospital, gain. more and with see as the is that familiarity, also, system. start, the use surgeons they surgeons

growing. So the have been procedures

hospitals, one seen more growth cases the that's area you from coming surgeons. So with additional doing existing that know, we've

a of last you half is, you were the amount year, know, of the significant second remember, systems, second-half. in as you the know, And placed majority back we placed at

playing So up the to curve. done that in getting learning their now because up installations speed and is they've coming and also

produce. begun So to they have

contribute. think those to are factors that two the So are I continuing

you can these last given of a procedure know, you when think on two coming you we compared we it year year-to-date know, and think have XX%, what that's together. factors at And, to we I look grown basis, volume kind continue

RK Ramakanth

that. terms to in been the second-half it situation happen the these because, the installations the take probably first-half. it outright -- same And second-half know, be the And know, we'll least, for know, have anymore. an to is installations What it in be know, you this to event? you Thanks watching You itself, you I year? last sale at than And going rather sales as in more longer for is we of be couple have drives said, a doesn't cycle. you a things years of

the like, folks you you a -- but is sales bit subscription -- taking I'm know, of I'm not longer. seems still, helps, the the lease saying longer, which model, it a You but long. bit just it are trying have understand dynamics cycle? know, to And a

Anthony Fernando

Yes. Sure, RK.

one is operating it you to a And know, a think play, pipeline know, interest sale or It the, is the to trying I the the of it's placement again, have So, speed trying a exists. the staff, ready the decision, you willing get that up and be is and you of you that do their economics also system, know, whether hospital the and into decision, know, and pipeline lease. also system. convert but to part training, using start to, be they to

So, okay, the to last beginning and to for the looking say, come know just takes it's to pattern, somewhat to time decision year let's it’s hospitals program. at this it that I this it see take but is start a -- like continuing time -- and of it is now year to

bullish view, you long but commitment deliver diligence pipeline about with that are point as successful. a pipeline trying XX internally of as surgeons, from hospitals that, and, XX feel this is the that that so of we can, make because I doing to systems, know, you say can to the much cycle very they a the on get one, program know consensus and know, the can But we they decision can

RK Ramakanth

-- to, the as your in for you that. How thinking obviously, are adopters. you it the conversations also some sweeps the And pediatric is well? is you of are about you install hospitals? have And that there these the into How expand already that surgical to Yes, know, extending know, of any it kind indications. they trying thanks some know, pediatric which hospitals other had, attractive to beyond, on the then initial expand of

Anthony Fernando

Yes.

you a pediatric I the few think, you great -- happened a One, site, I within sites, things. RK, I'll about to two would specialty know, existing So, talk the about there points. talk have existing that hospital. I'll are say, know,

smaller and Senhance that, for But then pediatric for looked procedures. pediatric, of obviously, many because cases somewhat unique I an can pediatrics, with now is You before you the like and underserved it the the was separated for the in in significantly a do in space, and know, they looking it. it like now. that consider, know, U.S., surgical okay, pediatric, some have device here's instruments units surgeons capabilities been doing could features they're at consider it have feedback Senhance sites pediatrics, But seeing value and are the especially because in the Senhance, saying, haptic we and Europe, nature didn't what and somewhat time to cases it digital think certain of other we've of given pediatric

-- from this a start of at more get the we those especially know, also influencing surgeons pediatric the that, these that's you U.S. share presenting about performance, their case And, of the some program. data and kind to surgeons congresses

that you surgeons we've So build we that, they know, inbound just be something and in those and space announced are pediatrics the saying to other centers. seeing But having are one surgical the and in and even smaller to conversations now. but pediatrics can good general continuing that, from are is decisions adopt, that on had interest this pediatric and feel we instruments different pretty tend interest surgical they choices we between hospitals they so from

reason So all that's one. why it's in the not

RK Ramakanth

So, my feedback. question, this is about last talking

said was Melbourne demonstrated a at You in that conference. LUNA

studies you done? the LUNA? as incorporating feedback of the also that this you So approval include and your to learnings from get marketing was that into are studies you received you what's the And you are presentation need how for much when future -- do treatment

Anthony Fernando

RK. Yes,

but a by perform what sharing lab the good you I in could -- complete when extremely of front. physical it system we the system, surgeons on clarify, of a team want -- this presentation. is this that know, know, LUNA was presentation end not Melbourne, R&D to video our you the just preclinical And, to is goal the progress the at making do animal or LUNA, procedure. lab a meant where year So,

doing the of where verification, start kind will regulatory key And we the that get So surgeon to to milestone gating met, validation a complete submission. proceed is final would that once then to of, prepare procedure. tests do all kind a to be can we milestone, the

the it what millimeter the feedback the instruments overall, couple X and ability to to at continuing can know, surgery help say when instruments engaging would having But I we've instruments, you and for of the wristed evolve X I fully with, straight and LUNA deliver how X going it's program millimeter been look the past, them the and think millimeter. low perform as use know, from on you years, surgeons surgeon with system, specifically surgeons to at system the but

some So independent and Senhance also very that arms, you hectic like, other feedback and much, kind on know, tracking of cetera. et eye things they options and

So when of improvements already kind that's they that's level a done high can and of also the what's driving see they yes. see been interest,

RK Ramakanth

taking for all Thanks Anthony. Thanks, the questions.

Anthony Fernando

Thank you, RK.

Operator

back would question-and-answer I our to concludes closing session. the This turn over Anthony Fernando any like remarks. for to conference

Anthony Fernando

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

Operator

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

now disconnect. may You

Asensus Surgical (TRXDW) 1 Aug 232023 Q2 Earnings call transcript