ASXC - Earnings call transcript Q4 2023

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Asensus Surgical Inc. Fourth quarter and full year 2023 Financial and Operating Results Conference Call. [Operator Instructions] This call is being recorded on Thursday, March 21, 2024.

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

Mark Klausner

thank Quarter joining Business and Update Call. and Ascensus for and everyone, Conference Fourth Surgical Full afternoon, you us for the Financial Good Year XXXX

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

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

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

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

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

Anthony Fernando

for accomplishments Thanks, today. Then recent notable XXXX. I'll being dive Shameze with Mark, results. our give you our performance will thank summary a start, in and of financial and To all us into

I'll have. the for focus that, for Following discuss areas And XXXX. we'll our you questions finally, may open any floor

with throughout XXXX pleased and solid we've I'm future. the progress made built we've foundation the the for

remains XX% delivering our seek volumes towards while greater adoption capabilities. Senhance a surgery refine next-generation enhance increase System. LUNA Senhance to System XXXX. from the We our of and the in development ISU the procedure same procedures critical and drive continue significant Globally, Surgical performed factor Growing making to we over at were as both X,XXX of progress and utilization the using digital time XXXX,

quarter, During Senhance we across globally. XXX specialties the saw over procedures fourth performed of a variety

successful in in As the surgical month, data, completion X,XXX Clinic cases learning continue three University A Krankenhaus this, ISU. each insights gather to clinical Hospital through enabling to Germany, we testament the Presidential to us engine more and of to Evangelisches we valuable improves, last hospitals. Klaipeda the in CIS provide announced surgeons at Astana Lithuania, our Wesel region. than machine

cases. Hospital, encouraging confidence acceptance they XXXX, where the four continued growing the registry aided completed volumes, participating the the by of and data our over November brings the achievements trend of observed X,XXX cases to and registry. with at now TRUST have increased sites Senhance customers been our realizing which Senhance how proceeded to expansion Due patients in the number value is we've Idar-Oberstein These program's a since in in Another XXX the initiation includes from in months OR. underscore growing has are just over

published were between publications clinical levels peer-reviewed X using After and research study due and surgeons Senhance year, stress Senhance. compared this paper Senhance by including exploring demand analyzing the distractions a compared reduced investigators, using levels during traditional TRUST physical stress surgeons the Led during to laparoscopic levels procedures. XXX laparoscopic found lower procedures, surgery. to that surgeons overall users stress experienced Additionally,

program initiated in one region Nagoya Moving five in programs new including the to to total quarter, Senhance University the new year Japan one for two the the one in at bringing CIS initiations. in Germany, X. Hospital, We and fourth Romania, in

the pediatric procedures. a hospital pediatric hospital Senhance One program leveraging of these representing be to sixth in initiation for was Romania, the

pediatric With specialized of for X-millimeter Surgical the procedures. X-millimeter and instruments, delicate designed the System nature uniquely is Senhance

system preserves also but solutions. As recognize unique Senhance's more pediatric not only surgery robotics laparoscopy surgery and with advances design, which surgeons minimally invasive digital

ISU pediatric We for the to in expect Senhance grow. to continue applications and interest

committed demand market. this to pediatric rising are in We meeting the

wrap financial with we've update. sustained groundwork the for I'm to a Shameze the To up, now in and achieved fourth the pass quarter progress to floor pleased on build for the continue I'll success.

Shameze Rampertab

Anthony. Thanks,

fourth Turning the quarter. to

XXXX. the XX, $X.X the three XXXX, in million $X revenue, million in system of as million million and of in of $X.X to quarter months December million three For December $X.X included the reported revenues in million ended fourth ended company months XX, Revenue the compared services. lease revenue in $X.X revenue and $X.X accessories, instruments in XXXX

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

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

$X.XX loss share are stockholders the earnings to million value release. to of stockholders common common an December loss ended of for non-GAAP or the warrant loss GAAP to financial amortization impairment or fair to per of months in liabilities, adjusted adjusted as contingent share in net measure. net months Reconciliation December our measures in net three in adjusted following equipment loss non-GAAP net $XX.X net per consideration, of the three Adjusted and change million $X.XX assets, can be $XX.X which XX, intangible items: compared a all was loss is change attributable value is XXXX. from GAAP XXXX, Adjusted the charges. XX, For of found attributable fair property and noncash ended

Turning short-term balance XXXX. to third the equivalents burn plan initiated restricted of and as investments, the excluding In XX, to cash company of approximately we cash, XXXX, had reduction December streamline cash The sheet. a cash $XX.X million of expenses. quarter

a now in XXXX. I'll Based back into available that plan, on the June As call current cash turn early our plan, of we we a financing first operations recent project until to and fourth Anthony. saw operating quarter. decrease the and over the result quarter burn the sustain cash will the

Anthony Fernando

in surgery. precise the instrument XX instrument appreciated an gynecology, December, hardware, Shameze. dexterity on lab ahead Thanks, hosted We range instruments with in with and of also LUNA's offering motion evaluate and different at lab systems surgical The Triangle general lies reliability vivo X-millimeter across X the different procedures wanted in update participating surgeon . The Research the to notable evaluation lab highlighted maneuvers. in Park, Starting surgeon in essential versatility Carolina, LUNA's a porcine line of allowed types. XXXX. we what models. to software true North an to provide in Asensus conduct LUNA, and instrument risk urology surgeons or Surgeons strength functionality of and

the and feedback refining feature. found this patient easy Additionally, to the surgeon robotic to LUNA will ergonomic positive aid Insights system dedication The be bringing us participating our delivering surgeons evaluation the during of they in product. console that exceeds to developing a access final noteworthy expectations. from and closer surgical design underscores platform gathered a design,

advancing time the with at demonstrating Relations for half to The launch initiate key its and regulatory Systems QX submission the a QX economic and freeze maintain on second an to adjusting XXXX, and lab We order testing strength conduct will for by range look is XXXX closer the This first line. Subsequently, XXXX surgeon clearance decision our a physical now video us provides of the overview conserve insights from is anticipated of half website. motion, features The participating are intend still stability validation we systems to expected we thereafter. milestones allows in of of pilot benefits. In verification in manufacturing surgeons, in a For towards submissions. capital, XXXX. while our and available LUNA. LUNA the Investor in instrument video and prepare followed design the now development

costs. submission As for following we the than we Senhance, for in interactions we in both shared pathway, anticipate pathway defined our the are novo de before, have following clear rather regulatory a we our LUNA, XXX(k) time believe from more success U.S. save the proven rigorous which and pathway will traditional a FDA and and drawing with

training are collaboration valuable feedback effective. In advanced XXXX, QX with are digital Solutions on within tools statistics us Senhance is ] shareable had with we to our platform telestration functionality a during for Digital XXXX. website some portal and analytical Additionally, step users parallel, Ascensus user-friendly multipoint safety and or conduct measurement data ensure planning launch This the useful us communication into integrate in our the platform, innovative we [ term. By will our and digital improving capabilities striving aim and features helping several tools our Furthermore, and accessible to time be will cloud significant are It globally digital give and community. accessibility customer milestones in testing plain same LUNA that within features. Surgeon our user we features prototype like highlight QX providing all forward including procedure-specific connectivity, with to near experience, to advisers to resources important solutions videos. frame. downloadable functions, and user new we enhanced

efforts. Turning to our ongoing development ISU

with is future primary our goal for the ISU hardware Our manufacturing for up ramp the partners. to year

XXXX. efficiency flexibility include at meet are preferences. and LUNA platform configurations the that on needs second configurations the configuration and stand-alone aimed the supports which a configurations to and robotic will we be expect ISU, two enhancing surgical for offer will working Additionally, quarter laparoscopic the ISU various These we These hardware of ISU, and finalizing design procedures. by completing the

programs to XXXX. to Regarding Senhance XX initiation, intend in initiate we X new

registry procedure vital valuable. expect further. to by from and growth to TRUST LUNA. we procedures and from with volume ISU collection The gathered in And more Senhance the registry months, for during expand these XX% close the been bridging adoption data XXXX XXXX. independent of plays data track the has the our the role studies XX% sites Additionally, a immensely data over to pool growth in TRUST will This coming

our advanced provide clinical This has for outcomes enhance interoperative initiative Cloud's to data the patients. superior aim Google real-time we architecture, achieve surgeons Additionally, potential to with intelligence. leveraging cloud technologies to

we important quarters. reaching XXXX, ahead optimistic about milestones Looking to are coming the in

focus our system year. primary the Our in remains LUNA surgical

appreciate to sincerely the to Additionally, work of we patient clinical advancing underscoring that, evidence utilization, these are bringing to dedicated surgery, and expanding technology adoption, dedication enhancing hard in increasing would open team and We innovations now questions. to advancing like digital for our global we line improving Senhance commitment the and our life, outcomes. With our capabilities.

Operator

[Operator Instructions] Ross first comes from Your from question Cantor Osborn Fitzgerald.

Ross Osborn

off, background quarter? your where starting going thoughts through to during size noise. am costs traveling terms would apologize quarter June? structure I financing then burn the to But company you follow-up, able today. in past during of walk and I'm first going and a of were the for you improved the had cut around And fourth the as your

Anthony Fernando

thanks for Ross, question. the

we areas. cash, on cash, cash. are the the we plan. Then came And And including I ended with shareholders. interest company think execute That's equity, fourth in several it to out think and transactions, kind noted obviously, agreements. will options, in the the obviously, best of we something, the the that's quarter licensing on several as the million exploring cost, for raise capital we $XX I of from look and non-dilutive kind of

other front, R&D from which for the also the LUNA lines we why to the development had function. on Some time and shift is all

it was budgets. expenses streamlining and company, the our of across planned So

Ross Osborn

Okay. Understood. And I just if question, then more may. one

commercializing needed, couple quarters? or comes you raise that how past develop, need think of be the story successfully do point. financing to the LUNA Assuming not, as you'll over the I especially is through cuts capital given about to at much obviously think, to going

Anthony Fernando

and I I of the based mean lines continue on quarters, Ross, that kind with the think previous we outlined. to burn, that can have work through trajectory what time we you we've need the intersect done right? the that's before to

to get have So place, then doing the we we -- and need we've I the the have all team think things where right been in right we to to.

matter just of And now execution. it's time purely for a

So can to continue based I'm sure up and numbers you burn on work that the on approval. historical regulatory through will

Operator

RK from from question Wainwright. Ramakanth next comes H.C. Your

Swayampakula Ramakanth

to you've you how working Have market managed and the at is how for able up better -- in but get what of year of past you your get understood also are growth in you as your you that, looking So needs initiations, be thinking year. well? the to come to initiations been after than to history sense X because done? of terms XX add how the volumes And trying the to procedure new managing certainly you

Anthony Fernando

for you some parts, first. I'll training. latter and the respect the two question. Senhance the of I familiarity I'll to benefit Thank part of and take mean, efficiency the are laparoscopy of Okay. With have sites mature that sites cost their seen with and the so in terms procedures, take

over kind a mimic some how a site the years, have driving gained of some best newer a stand amount site usage this, specific performance the drive experience up they sites and trying volume efficiently. increased that obviously, to and to of is mature significant of that also at seen So then the And of we've and sites. are about at

of that's increasing on year all nicely basis, quite that if the of look after of grow to like playing been trend a at utilization we So for year. kind system said year per to before, after through has I've utilization. globally, And us continue

systems So it's doing cases. the new not just more

maybe a Like time, been really the So of terms part, this two Japan, pediatrics even or part. And good are had Europe bit the we year, systems, in quite Senhance seeing interest pediatrics sites, driving there. are helping be terms I Obviously, that's record to and procedure in pediatric has one to sites grow. of mean, one we adoption And us is in because and a continue that second in U.S. in last we now track forecast. and also they to costs to the responsible us, are we six that have -- do with a up priority other in where want we anticipate working economics there proven they

together. So we kind of are able to work

once say are to And that that. things two that to continue obviously, would get ahead. grow be further we I the to those do So we it will able beyond continue

Swayampakula Ramakanth

the these novel Okay. up with And configurations. I'm then to terms trying two of in come ISU,

just And commercialize line how how the development to this? the trying you So what to the time at understand on do end -- this day? I'm of plan

Anthony Fernando

Yes, RK.

today. process is And will have one the developing of the version the two we of the first we obviously, second-generation So configurations, part are the in the robotic generation and that be on ISU that the version of market ISU LUNA, of ISU.

terms some have and So evolve currently it have will all we to -- applications in that of the features to manipulation. platform, robotic and on that performance, robotic related features, of so continue are

without of second on for primarily The a use the robot. use version stand-alone new ISU laparoscopy for

as relative to several the area, again, and for able So -- to other us to to there are are other gain build and leverage we that we we have think ourselves ways are opportunities multiple it partnership continue options surgery. seen infrastructure do and going interest be of adoption. some explored. that being to are Do commercial to applications that and in relevant commercialization, And I non-robotic for

but So we a the is that's the regulatory we part commercial know well and features have need and developed. pathway relatively clear exploratory, for the also there this,

robotic So reason not two for able going decided we that's these to only be use. that the and stand-alone why down also to we're but go pathways offer

Operator

Fernando. Anthony Please proceed. this There Mr. are time, questions further at no

Anthony Fernando

to Thank today's progress for you the you, joining operator. our throughout look Thank call, updating we you, forward and everyone, year. on

Operator

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

You disconnect. may now

Asensus Surgical (TRXDW) 21 Mar 242023 Q4 Earnings call transcript