ASXC - Earnings call 3 2023 | Asensus Surgical, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Asensus Surgical, Inc.

Third Quarter Financial and Operating Results Conference Call. [Operator Instructions] This call is being recorded on Tuesday, November 14, 2023.

I would now like to turn the conference over to Mark Klausner from Westwicke Partners. Please go ahead.

Mark Klausner

thank Quarter joining Update XXXX and Asensus for Conference everyone, Third 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

could stated forward-looking differ with would implied forward-looking begin, caution to statements update any XXXX. the control. of or due harbor business, to statements information by associated obligation covered I information our geopolitical the including company's call. from any the uncertainties listeners The conference provided provisions materially Litigation of during under those no Actual this by this Before call, company factors certain Reform Private beyond guidance discussed to our like we that risks management the undertakes provided Act Securities including and are results on safe

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

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

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

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

Anthony Fernando

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

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

I quarterly I a moment to violence. the losses to acknowledge those like suffered and all. Before attacks to escalating in or would conflict injuries dive deepest recent our the affected I there Israel. by deeply into review, have events have take and to impacted the extended The us who all sympathies

our time. their and in thoughts support during and with team families Israel this are Our

We and with are our I would proud spouses of for team this Israel the on own another shown like incredible thank they've their team our of you members to called military care been through in trying and managing say having time. support to service. to some one

to an of third overview quarter. Turning the

are We recently. milestones significant pleased reached to we've share that

key One a technology. for the advanced achievements, LUNA manufacturing including innovative reliable manufacturing of process this finalizing system, ensuring our partnership for surgical upcoming our

to improved Additionally, to hardware which of contribute performance. capabilities ISU, provider partnered the we our graphics will a enhance with

clinical focus guided performance the value our through ongoing advancing utilization, expanding to launch Our surgery portfolio of on the Senhance's the of and our evidence, remains of increasing deliver Senhance, capabilities adoption enhance LUNA. refining

comparison were system traditional the promising papers of clinical in want robotic of and market-leading the highlight X to performance I quarter, the to discuss. studies various During laparoscopy procedures. in These published. Two current which Senhance

versus and system. Taiwan study with market-leading reveals The patient operative shorter robotic outcomes current Senhance the comparable first of advantages from cost times

between website. [indiscernible] second Senhance a papers all Senhance's hospital information The our the found published to close procedures More shorter laparoscopic outcomes benefit laparoscopy. In be showed can times match on emphasizes with and comparable on study added of the also stays.

improve capabilities. our and Procedure volumes Year-to-date, a XX% to in performance reflects our continue to digital be strong procedures. input surgery develop an growth important

performed we over XXX [ quarter, year-over-year third procedures ] Senhance variety and saw the of growth a specialties across During X% globally.

to Our via machine to offer clinical the learning useful engine data, us gather ISU. enabling surgeons intelligence as we to improves continue surgical

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

of As efforts across help in improve step TRUST inform grown general decision-making signifies accumulate data and and to to patient urology. our to patient ultimately help call, and surgery care. this patients from X,XXX a with registry notable over include growth cases has data valuable forward gynecology, surgical This our

a of play collection of months we of a and our strategy. advancing clinical create digital and follow-up information clinical data. and organization one-of-a-kind intraoperative multi-specialty a is market The primary vital registry in foundation to as third-party focused postoperative investigator-led a data ethics collection only approval on XX is managed research of for registry registry is number serve high-quality by data a publications full development and at points committee each XX-plus that goal [indiscernible] registry The Senhance clinical a clinical The poroscopy. is the TRUST with institution. role greater This

Moving to Senhance a August, Senhance in initiated XXXX. program Japan. is being urology system We used new and initiated gastroenterology department. new X we in September First quarter and with the initiations. XX, In gynecology The centers ended in program Hospital their programs Towakai

The about Japan, are region. Japan the driving in efforts, our enthusiastic highly are in a We further with seeing to progress in adoption agreements is institutions. expansion encouraging solidifying testament we and ongoing regarded

given machine suited haptic was control, the XD a tracking in to first as for be the camera Mayo at Hospital an eye second announced X- that is and milestone unique procedures X-millimeter U.S.-based utilized marks The leading important exclusively hospital feedback, learning, mix importantly, visualization July. like specialized and Saint by surgeons most was This system features this a in United instruments. of intelligence, augmented hospital. Clinic system The Campus, Senhance well pediatric States-based is pediatric Marys

we end Senhance quarter, to additional initiated programs. Subsequent the X of the

Hospital clinic first and Idar-Oberstein be Surgery. The Visceral their Germany Invasive in was Klinikum General, by to used for Minimally

the states region. to sold distribution in pediatric company's partner the commonwealth and hospital placed independent was be system second of will The in a

In allowed with for engage and expanded March top younger as we precise have Senhance U.S. tissues. leading the enable smaller of pediatric benefits complementing Japan. especially haptic hospitals instruments, in feedback minimize digital our advantages system pediatric our the invasive the have surgeons, existing minimally this tissue at to approvals they surgeons for pediatric indication a of The and us children's regulatory year, fulcrum surgery those particularly for to This by trauma recognized feel who operating Europe and of touch distinct patients. delicate been appreciated preservation of expansion

converge the Pediatric European July joint first Group from in societies and Endoscopic the International of Society surgeons for As milestone Pediatric marked Sorrento, important we around meeting Surgeons our discussed of last pediatric an call, world on to the Endosurgery Italy. at

the in class well master and the Asensus role delivering opportunity played of pediatrics data experience. robotics, a as to with valuable attendees application science integration impactful science, cognitive an gain as the of hands-on prominent robotics insights providing robotic highlighting on

interest of to Triangle surgical invasive customers committed well beyond recognizing leaders, applications and execute their With partner considering minimally children for interactions these meeting engage Asensus, With potential clinical surgery are in in Park, thought forum, in Senhance to in incorporate leaders at with in and advancing hospitals goes market. to design, headquarters that we demand laparoscopy preserves Milan but into pediatric by not leading rising this grow, hundreds ISU customer awareness the on and Senhance unique which continues only solutions, pediatric and robotics pediatric digital surgeons and the as Research system to at our Asensus how events went to those as programs. the surgery this with

be hospital on to outcomes. for also ultimately the providing read reputation. address shortcoming, launched surgery adoption hospitals surgeons, nurture operational potential to positive like can in medical I advantages highlight variability answer and of patient our medical advancements responses It which or technology encourage how talent community. The eBook can surgery everyone e-book guided recently for the and The field, the performance and construction generated attract has I'd to website to Augmented it. Intelligence, from e-book the improved surgical highlights explores our LinkedIn, found enhancing titled

range the of delivering development supply record track us requirements for to life portfolio enable with our LUNA industries at deliver of recent a will LUNA scale. LUNA devices to focused a this and services network platform has in Starting chain Flex scaling complex electromechanical across front. LUNA and provide medical accelerate will trusted complex to enable us Under understanding announced platform. manufacturing a the Flex's manufacturing. design advanced deep product at proven manufacturing agreement be portfolio systems, market taking capabilities system across diverse agreement, the of Flex for Flex with globally. of advanced instrumental Also to time Now look cycle for LUNA's the and

intelligence already directly providing By relationship NVIDIA facilitate hardware powered NVIDIA September, based expand has surgeons announced announced to enhance refine shared with on the collaboration surgeon by The features In develop to advanced feedback. of to ISU's been will features ISU. the on advanced real-time access XXXX. road to aim tools, since collaboration This and maps. product to support ISU capabilities we the augmented further the NVIDIA's a we collaborating

surgery. We growing that ]. potential development and highlights are leveraging exploring aligning [ of data-driven This of the surgeons deployment the NVIDIA's innovative models application collaboration support procedures advanced and for goals through both digital the of technologies of for computing tools, advanced and surgical decision-making the highlighting Poliscan in companies the improved platform, AI AI surgical solutions, importance

gathered our technology clinical Cloud's performance focus cutting-edge architecture analysis. potential data the surgeons an collaboration patients. in data and cloud overarching tools superior immense joint data, tandem and particularly for achieve data providing collection By value, framework. we ISU partnering intraoperative Google in on real-time our with integrates have to holds the machine This outcomes learning With guided through the intelligence, our surgery also Google secure harnessing and with leading with effort with in Google's

these the conclude. [indiscernible], Regarding an are provide we agreement, an are finalization will organizations discussions Both expediting update once of to our conversations dedicated and ongoing.

sustained the To wrap build the for in progress and on with to I'm we've achieved the groundwork third pleased up, quarter success. continue

for update. the pass Now Shameze floor a I'll financial to

Shameze Rampertab

Anthony. Thanks,

third to the Turning quarter.

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

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

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

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

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

current our restricted bringing the our operating extended and equivalents offering, gross and direct project to funds sheet. on cash, July, had million Turning $XX.X September cash company plan development. late quarter reinforce these investments Based working and approximately to to XX, of balance the our of XXXX. excluding has XXXX. as In approximately proceeds research been we a through registered million. second of to of We runway financing The recent plan, allocate completed cash capital $XX contribute we cash and in short-term

I'll turn back the call to Anthony. over

Anthony Fernando

Shameze. you, Thank

the anticipate into on let's lies ahead, you coming what can delve look Asensus the we horizon months. As what and for in

the LUNA the and program, to and the integration fourth to end quarter evaluation complete expect line of time on and by full remains the year. preclinical regards With we this system track, our testing

and in for conduct freeze will ramp the and regulatory validation systems XXXX, We up verification prepare design manufacturing QX submission. pilot testing and

LUNA X advantages. strategy, our to like go-to-market of terms our reiterate I'd In key

FDA, U.S. record on submissions Based the our track to time with a our in-house Firstly, with more and traditional pathway, cost-effective anticipate leveraging and the rigorous successful the in novo Senhance, clear we've a pathway. communications we regulatory LUNA. regulatory opposed as established for de XXX(k) expertise, for pathway

is drive model, poised clinical adoption. Second, its commercial performance coupled economic LUNA's innovative to with

options, are Beyond purchase for subscription-based our capital we model leasing current exploring hospitals. and a

Turning to development ongoing ISU our efforts.

year, end the ISU, X the milestone manufacturing remainder have believe of which We for of we for the quarter. we of have fourth the will by ramp-up the future the

XX%. programs evolving new to we XX% capital Regarding to Senhance This to down initiations, expectations the to refining from XX adjustment is are in initiate response environment. our XXXX, X in

market believe considerations. and approach balanced tightened into refined budget like aligns We current that provides taking the trends a landscape. this with outlook are We factors consideration

quarters. are for milestones conclusion, In poised we the coming significant in

the time programs, steady. line remaining With LUNA

adoption team for and Our digital dedication utilization, ongoing our and focus a capabilities. [indiscernible] increasing remains these to want on clinical I of our expanding global evidence the advancing advancing their make Senhance, to thank reality. work truly hard our technologies

delivering surgical Our and remains technology exceptional commitment to strong. advancing for outcomes patients

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

Operator

question [Operator Instructions] comes Swayampakula from Your first the H.C. of from line Wainwright. Ramakanth

Swayampakula Ramakanth

is RK Wainwright. This from H.C.

installations So What or turn ending you for than less installations weeks before can you you gives with will where X business from currently the with so year? off And just so the that confidence get installations the have X the X far of you conversation, done weeks. ended X year.

Anthony Fernando

we we been bullish into mean, these accounts, already and of some Again, through QX. working quite I out. the are and RK. months over during are forecast question, the put the for these transactions we've that QX about pipeline Thanks

I these pipeline more most So steps for process. few therefore, accounts, think, are the of there in a

they to we the fourth Time quarter. far, is to short, tracking to XX good where all of getting the before so feel we X end be pretty number And about the completed but from are. are

Swayampakula Ramakanth

Very good.

In where a kinds is terms sort you seeing? so itself. in there see terms the the we at nice is all And Clinic on at But growth that also, [indiscernible] Senhance of cadence what the amplify -- basis? that pediatric certain performed And hospital? for to that this of procedures understand from procedures Mayo there it's that of being way into itself. are of of kind utility a procedures, you're Are of of any commentary system the which procedures, folks in regular to

Anthony Fernando

Yes.

Okay.

when And gynecology this a per from to year think big with mix, following, relatively is year. I being of procedure pretty a change it's -- and then leads have charge the moving comes not consistent through General we surgery specialty. kind So it even the se. been seen urology and last third

that's use that's Mayo with week to week seen with And pediatric clinic And more piece also this extremely X are increasing is increased growing the -- it are scheduling well. cases. the or because in think case added program, starting kind we Europe. them over we've I on then of going and numbers year pediatric increasing their

at So an are we still early point.

[indiscernible] more X in procedure in X -- but Clinic. to numbers are X/X there. be than more and think are have they trained at quite We the And in growing, I or doing well Mayo getting started

Swayampakula Ramakanth

as in saying this in then and in are with And growth the kind good. Very is still the commentary, were How going the because terms in of market seen of Japanese Japan. adoption you of much your left is you not where of ago, in [indiscernible] comfortable your many. of installation, terms of I terms how the a Japan And think installations device. then of couple we years have year,

your you make that in you utilize do to sure opportunity? are need resources thoughts can Japan what So to that think fully on add more you And that?

Anthony Fernando

with respect pipeline systems, close we've RK, the between done So X year-to-date, some well. to and and now there Japan, we as year-end to have

I find thing utility really perform to the who institutions is think their the to share then and cases, trying be experiences. publish and demonstrate right able can good

that expand. to Japan we and make [indiscernible] a procedures so become nice us that the speak build Senhance for performance in robust and even So can have simpler will foundation of very network and sure that's really drive it to who to about focus we a want really that performance institutions

doing at of growth, the procedure really Japan is volume size think well. extremely year I compared in And year. they're is terms record this team looking last in team, for of having to I even year doing mean -- a the Japan growth procedure

to year good this So in progressing. about that's two, seen things be it's year. In and the to are reason sites close why additional really we able you've Japan growing, we the hoping feel some are the and with how Japan,

Swayampakula Ramakanth

last for And the me. question

there I trying different discussions with -- about? commentary about? know one What talked stores I'm some like X conversations And just X ongoing with or talking -- made call this understand is which to are discussions You ]. Because we was going on on conversation you of [ had sort I them.

Anthony Fernando

intend there's the drastic I I I -- think in and It's our to are feel future portfolio to intending that it -- conversation. do. what the trying it's what very and also to in just they wouldn't becomes a in at difference say the road are we mean, map and we complicated looking and do given

try balance digital mutually still of right like are even talking the beneficial. and and to of relationship we -- element visualization right what terms about look find the and it potentially the might in So be

Operator

the comes Ross The final Cantor Fitzgerald. from question line from of Osborn

Ross Osborn

increase adopt particularly announcement stands? the given that following have system, you from your in seen pediatric interest reputation, Mayo has So inbound an the a

Anthony Fernando

question. The answer great Ross, yes. simple is

Mayo also -- there pediatric Europe. smaller after think we Texas. I then the a announced some And meetings another that in there's attended we was subsequent, meeting in of and

that of really All have good interest. generated

to focused So system that using already thesis. the multiple is on and pediatrics discussions like kind leading U.S., continue hospitals in definitely primarily of we Clinic, having validates hospital the have here Mayo a with

So institutions. conversations having pretty with active pediatric good we that in and some other has opportunities, are opened

Ross Osborn

I realized to what But on quarterly more your year. Great. And to the volumes in could year-to-date down relative turning for year the volumes, then or Glad procedure color view? it. provide hear you are to drove and to last volumes up

Anthony Fernando

the primary And why also a the and see think didn't to to much year. [indiscernible] well. think for quarter-over-quarter the that contribution number I I was U.S., Yes, the player I basis, for as reason annualized we the growth. reason last we driving from to a in XX% that had holidays and that what breaks, cetera, primarily, think quarter And European we saw an the between didn't et primary growth Europe. we the Ross, which was up where the in quarter. the slowdown hoping compared are, But we summer That came see on keep are as is fourth

Ross Osborn

Okay. Got with could and Flex you to them what And it. LUNA? little for background drove then of bit a you partner lastly, provide on

Anthony Fernando

Yes, Ross.

add the we've really a for system. value. So what on platform And we is at think we us, LUNA focus good and relatively are always to can tried complex I where

and doesn't the on make strong we that space comes X, years when manufacturing field terms have sense probably the the So the robotic a to to about networks regulatory who when it have medical And years X.X it really to that. space us are to understand that good capabilities execute capital sense can for like understand cost in digital R&D, procurement. of very in conclusion came extensive and ago, there us several we Flex supply who provide deploy specialists chain in device, really ago,

So very been you started don't much view this we small trying that ago, to this help about collaborate with take guys why years, work bigger share or talking they take subcomponents on. assemblies Thank will years this we've which on where say, working where to led on with taking and of a they entire and with that, instead they ultimately almost we us to will multiple holistic and platform okay, the dialogue on led you, and them, over X well projects the to manufacturing expertise full X Ross. been them we'll the us, their suited are we've over agreement that last and the

Operator

remarks. this for to further no time. call the hand at questions will I now closing Anthony back Fernando are There

Anthony Fernando

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

Operator

conference your and gentlemen, participation. for you call. Thank today's this Ladies concludes

may You disconnect. now

Asensus Surgical (TRXDW) 14 Nov 232023 Q3 Earnings call transcript