Outset Medical (OM) 4 Nov 212021 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Outset Medical Third Quarter 2021 Earnings Conference Call. At this time all participant's lines are in the listen only mode. After the speaker's presentation, there will be a question and answer session. [Operator instructions] I would now like to hand a conference over to your speaker today, Brian Johnston, please go ahead.

Thanks operator. everyone. afternoon, Good our to XXXX call. earnings And third welcome quarter are President Ahmed, and Participating Financial from Executive Trigg, today company Nabeel the Chief Leslie Officer; Officer. Chief and

on the review During commercial close host of after results offer a we today, the the commentary market we call, released after call session. Investors activity third be our website our which and the of Investor Relations The section will website. our press quarter release of question-and-answer and outsetmedical.com. section can is financial will our This be archived recorded found in in will the being at

Before Act statements forward-looking I'd results to statements based of statements. that relate XXXX. it Private or be that all today's we forward-looking All during forward-looking the begin, will Any of trends, call statements remind our market you expectations future events, made protected or our to that Reform like predictions are Litigation intent performance are under is Securities upon These material you by upon these not to information, All assumptions. those assumes place available implied materially statements. or various events to Outset and statements on these obligation are anticipated update forward-looking statements reliance no differ or and uncertainties estimates risks that forward-looking Accordingly, cause results these involve current current from actual could statements. based and undue statements. should

over Outset's quarterly with and to For call reports. of risks with please filings I'll business, our now associated latest to Securities of annual refer including a turn Risk and uncertainties With Outset's and description section public list and Exchange Leslie. the the Factors the the that, Commission

foundation XXXX were In review sustained thank and growth QX in you strong again into the margin revenue building our everyone and in third afternoon, third joining for Good a we while and us improvement Brian. gross XXXX. delivering for growth successful quarter, to results. quarter Thanks

total revenue growth million $XX.X year representing year. Specifically, we XX% reported in over

fourth the third today. in will revenue into and our fiscal year raising As XXXX quarter our visibility quarter, given elaborate we progress on, guidance the are Nabeel

our Our health commercial customers top line goal regional by In market. acute of progressing driven largest we the to new our find with in QX, success XXX top toward systems. the yearend well growth continues to sales agreements third be added

successfully the expansion and expand team within our base current Our forward. customer drove also land propelling strategy

before, of said As as quote, I whether are networks hospitals Tablo there across I last a their recognizing team a mentioned are using system new their when best result economic of rapidly to of systems workflow adopt our health about operational to expanding technology. use put within and The it he three when Tablo things CEO health week deciding benefits. additional care

be it patients? of drive all Tablo these for down by criteria. is my third, staff. And accepted good does cost? three First, it Second; meets will nursing

XX% health grows, dialysis Tablo base inpatient or installed our savings a dialysis order see service line. As XX% continue systems These supplies program. insource Tablo in by reduction cost reduction, that reduction to to labor to in cost the adopt cost their hospitals for both driven implementing hospitals of are

average. Tablo alarms of this unique demonstrating using Tablo's used of meeting Week treatments the was Nephrology's wireless study on Tablo's XXX,XXX of dialysis just in lower labor treatment last, time, versatility. week. is in by simplicity than believe a conventional will hours, which acute machines. advantages The consecutive Tablo on the in the analyse this that per were of XX.X operational XT treatment, showed our Some far power seconds which Leveraging acuity patients. consecutive treatments of way just showcased Kidney of was an also nurse its that at demonstrated is Extend released with setting treatments data from shared day workflow in preview how had Tablo of the number transmission, Conference dialysis Tablo the Society American be be the XX regardless of a to the XX ICU high at study, of ASN And analysis treatment efficiencies XX of hours was two time resolution we mean interim long in clinical was, alarm very was X.X data that to a to the with Also to data highlighted a a retrospective respond range which wide median two

machines and stop complaints cloting to in a common is ICU dialysis the high the the the nurse set One extended in through extended the treatment this patient's new clots, about again a patients way of treatments When the When treatment. cartridge with to treatment go restart setup are machine, for tubing disruptive needs. used obviously therapy, disassemble the most is interrupting set process has the rate. conventional ongoing cartridge a tubing clinical prescribed

to required see are operational rate far we these resonating with benefits really in nurses rate treatment. low just industry means customers study, as to per provides be we our reasons, with XT attachment once rate clotting the treatments continued of since third X% less XT's to value to by in thrilled a We clotting workflow benefits a ability and strength these demonstrated patients again, quarter. a nursing time standard. what below deliver For results interrupted which show Tablo the clinical the long believe early Extend

are In encouraged significantly home acute increase setting, success sequential and consult bookings. continued chronic front basis. third also in the the addition quarter, we on a to the Again progress home our in by on

progressive to clinical decision As and we're inroads similar value economic with to We we the for Q across space, what entrants is systems new believe home that Tablo operators, and spectrum of the of in make seeing with emerging providers customers. dialysis the further other home to health resonating existing from dialysis makers.

draws development, time one Newsome home, at early market The the week retrospective a the showed home, the patient both allow days, and shared of incumbent lower most week alarms important existing earliest data XX% probably Tablo's there's analysis average The the and mean adherence time XXXX is seconds. being intimidating, the here indicated that from which and ease sensor respond set goal. treatment IDE to headline the number stressful patient From to conference XX.X machine. time proprietary showed our world also and study the options mean And cloud-based in the platform, XX% highlighting XXX% our this specifically at software else Tablo's analytics training data Another to to research completed our treatment Tablo product which with of an using was also X.X treatment is dislike of the of nurses patients and patient's stressful design. home first real ASN patient of within our with hemo per days use, machine The this with and resolution eliminating the treatments six unique time at Again, its study for home. had that mirrored intimidating. isn't training focused conducive which we the is prescribed of at XX% just than something commonly meaningfully just treatments alarms, on retention someone is associated of about four are alarms they're nephrologist. data of retention,

and about in data with of the warm to and Tablo's on chance alarms Our on extremely for demand, of and in where driving links his can at He's device with reduction with would of is and attributes home I new sitting disease. instrumental cold was Tablo Tablo and benefit and diet patients on for week, of of that of reminded about from and to changes automatically heart three, HHD because incumbent is adjust deliver while of a found and get in and music research his most to, came he important temperature. choose. failure he his nephrologists days who the to someone home increase transplant himself, patients was notably the seeing minimize what and barrier freedom, for onto view, steps professional, extremely intake treatments power the center market hemodialysis the of changing and musician. dialysis the self-worth who Tablo now years the talking engineering into sit reduction patients, choice an been learn use home can Tablo it instead accelerating in impact dialysis. their freezing past for in and waiting storage software to solutions greatest his and at being driving his, dialysis without try prescribe that decision to study the recently and What based frontier as also interesting in in test the his in is were time. who words, bay of a common the According that accomplished changed which something We cramping dialysis the quiet and chose Tablo's research spent Tablo I patients new a a sense through in the returned was making made Tablo or here area, himself reduction XX% chosen specifically nephrologist a He clinic, some schedule. limitations ability the now team they to make manual use. three during device cramping were amongst them supplies. was nuisance wanting PD in control starting a surveyed over enough without adoption frequency, can to the have to not dialing and more one to significant we benefits treatment. what increase away. and me market what constituted choose four, likely or is sensor per to likely were monitoring results talk HHD appreciation peer patients. sense until story nephrologist to to half many a instead instantly last option remote He improvement controlling availability the And with show And knowledge that remote on the greats nephrologists his that X% words, developed and and five tour to paramount partner. musical bother ways nearly life said three ambition. and frequency. patient that of treatment his patients becomes him said someone's fluid all employ shared Tablo. of have and jazz just parameters Tablo's we're administrators, automated in His the results between or monitoring, affords of the wants flexibility of these and your a What understand He surroundings. Tablo who to can the through up, the didn't And his kidney as several they their Tablo go home consistency him physicians, I requirements the to see used with He time home to device days both in Tablo time, your ease control. choice. because to system's in delivering he time more any conducted his in it. capabilities currently Tablo. of times of of using those quote, at address same his patients in on told study features That's to flexibility father, demand learned Every and likely He's to life. to treatments prescribe fortunate was preference the uncommon, uncommon through transplant his to of that HHD Tablo week are alter hundred agency dialysis incenter common The stated treatment easier to home in The He what have Ne the the with I'm the a the dialyze to with one is home XX% He destiny ease of they power accessible were to who views legendary survey, of likely craft on helplessness to and then of revealed of dialysis nurses back XX% own his suggest failed. that center

Our over all home patient service lowering a retention continued revenue term. around blocks and driving high differentiated growth high barriers creating focus long the adoption vital rates of on sustainable on experience in building are the

XX% expansion the goal. and rule, new treatment the transplant home the rates for the benchmark facilitate their same the benchmark. is the choices hemodialysis, transplant a by change that improve home original The commitment every in measurement In continuously the transplant this increased continue increase set dialysis CMS XX home incremental known of to work of model. model we and is administration's to continued dialysis expected by we CMS applying in beyond new the final As to the further S through increase center months D of providers dialysis of remain to TC encouraged rates demonstration and ETC to forth et impact will as R home benchmarks dialysis the XXXX.

that health incremental of facilities incentive patients rates, home disadvantaged ensure to their ethnicity help rates, is growing in or to to addition In payment dialysis access among finalized transplant, and dialysis improve dialysis populations. new regardless socioeconomic CMS performance have equity a home

home Another Tiffanys supply implemented CMS renal innovative technology. providers transitional and adjustment Tiffany's a the demand called was specifically is program important CMS add-on element for in adopt related equipment new for to payment dialysis encourage to new by driving and

date of this two the approval. applicants to Although years, been has have around program received for none

and dialysis tip clinical in XXth, new However, this to benefit tip of to system. value that efforts first CMSs improvement this home tailwind payment Tablo home is our was the the tip changed in Tablo's commercial thereby Tablo only Notably, that The hemodialysis hemo when per system from over over policy. needs providers further validation economic Friday, proposition belief incremental Tablo advantages believe is will decision the grounded approval. incumbent XXXX, payment substantial to constitutes received to beyond We CMS benefit incumbent on the Tablo customers. a provides and needs. a the our treatment This and adopt sales October bolster duration which of technology XXXX

setting progressive enduring with commitment on We're home the access work even patients. and with space flexibility, partner that in seeing to to there across choice centric greater an continue administration, convenience, designed We expanding care further. Washington enable advance policies dialysis is patient collaborate in to change to to the for

in component continue emphasized focus equity, mission which as to a we've see the access on critical is our policy health We at of past growing outset. a

gross expansion ahead of chain continue target to deliver our reductions of expected on digit Moving the top of supply side, from of growth performance, delivered us capacity S and increases margins. XX.X%. line and margin attain the cost to Mexico, reduction. down now Despite facility enabled gross now the manufacturing growth of the by QX all margin cost top drove ongoing cost schedule to double our margin non-AP team another quarter our in chain built programs our our initiative Non-AP consults quarter One Tiana, low and are sequential supply our consult. at consult in and

on our ESG in significant start five, continue employees, all Tablo on a that And And and to of assuming cartridges investor taken social the inclusivity, enhancement Mexico, On K the coming course report this our our We expected produced website will new to of many the contract there highlight I'd mitigation, be the demonstrate, lives remain XX quarter clearance advancement we've days, public of FDA report within of, as plan turning ESG our manufacturing impact the and the we with on wellbeing. cartridge outset in to patients, relations Navil, to has will our path. stakeholders. like we call side, over leader the to outset on application enable our before we engage timeframe. to enrichment initiatives. to environmental other partner the productively to strive fourth forthcoming We dedicated FDA believe across of track as and make the production are that steps in

to access for optimal Our to leading kidney for care. focused better patients our all progressive access healthcare, disparities promote policies organizations drive that ready and believed advocating lives centric since working to patient to and have patients of we we outcomes dialysis with in help socioeconomic increased to improve erase specifically, inception the patient end, critically to in home are

pointed that patients HD to strongly home not system In out criteria, S fact, their CMS eligibility support will Tiffany's equity is equity and the encourage of approval uptake D we Tiffany's that with health specific believe Tablo R for the a board decision while health in the of at vulnerable level.

are in We more have we're way and leading that the a in of board companies long is championed diversity, that boardrooms. gender placing men group proud us gender outset of than gap in corporate women closing the comprised select

setting, environmental recycling outset, first facility focus water We of ambitious operation manufacturing our on there. also exceeded tight have year goals, we stability very very at a Mexico our which in

we will into provide see more expanding periodic $X.X proud look our opportunities updates runway quarter, of build setting, ESG on plan I remain and In outset be and on long customer in ahead, our steadfast to XXXX, team their four within third to Looking expand base. summary, Greenfield not key could imperatives strategic where performance we current penetration we our end year success the acute initiative. tremendous in within and the we billion our to and a reaching first as

by treatment for for focusing adherence Second providers. patients creating a over and retention solid and results foundation near term growth building home differentiated time on

financial and turn business. imagination our dimensions the and expectations review the reducing on manufacturing key further Third to of with remainder to increasing across costs now drivers to for resolution over financials nil invent XXXX. profitable call capacity growth more that, our of continuing and the sustainable all to With for while facilitate and and I'll provide intensity

everyone. Leslie. Hello Thanks

to $XX.X The to impact quarter $XX.X upgrades by revenue support by year driven As agreements. console million customers, growing higher the million install XT by Leslie shipments in highlighted to increased in over services placements of acute so HHS Product our revenue and year shipments. grew year over quarter increased driven lease console XX% grew increased third and higher third XXX% consumable base year the primarily grew to to our year revenue over year $XX.X ASP. million XX.X%

and of, availability large revenue revenue and million. by the over XXX% part $X.X million four Given year XX-year other driven year in and was order consumable by service customer increase to prior half for XT a Tablo demand a and grew the of versus

other installed service lease serviced portion we service, and the were expected as a was offset placements revenue strong agreements. on and HHS basis slightly service and renewals by larger three As console service a and HHS impact contracts on new down of revenue X a base recognized sequential the of our of

we I have be results. As expenses, can of discussed gap the highlight earnings today's moving release. will gross found previously encourage margin review I non-gap to operating you measures, to in non-gap our which and reconciliation to

Our while and improvement orders of made was our progress expectations was need our despite consumable XXXX by as to for to fulfil disruption meet headwinds have emerging our challenges was gross year our and seven closely improvement customers lowered operations and ensure with this approximately to of our suppliers chain growing demand meaningfully supply ability points which ahead global percentage enabling the teams to XX.X% Notably our products. increased sequential prior the of and respond console versus output. costs of the compared non-GAAP posed work primarily and activities, commercial our console and reduction improvement cost This points. percentage ongoing period a approximately and margin the XX result

compared to in from quarter. tied consumable were and and public year the previously QX from organization growth, in We our headcount investments period I commercial driven million up quarter order by primarily as prior some the the investments resulting versus to the mentioned. third D operating a also million X.X prior in company that operating saw expenses XX.X R Non-GAAP large benefit expenses DNA in

million of non-GAAP to primary our as in compared increased net relationship $X.X as $X.X largely $X.XX is loss result gap we the and favorable R&D investments commercial the manufacturer. prior manufacturing of of loss for sequentially, OpEx or QX a a execution per net the million to share, of $XX.X a third a had with quarter $X.XX reported in expense per conclusion Our a resulting by period. in million in our year contract We million we're making of share $XX.X loss result our by net

because to non-gap in We cash, in loss approximately ended to of year compared XXXX 'XX to share revenue range of a which X% our our Our of associated to $XX.X to including million I'd same results cash in with project expense We compares XX was XXXX, the our a completion non-GAAP quarter $XXX.X IPO. XXX a with our million expense XX% $X.XX growth net our the to million restricted QX for gap detailed and QX a the non-GAAP to XX loss a XX per million, was cash release This $XX.X as compensation move hundred, equivalent, per investments. to a or revenue. to compared largely balance reconciliation, million XXXX year decrease hundred million. approximately sheet, stock of $X.X net XXXX press included to for share over QX $X.XX or guidance represents strong and million from the million 'XX, fiscal like the now full revenue prior outlook. period

given visibility monitoring into And reflects nursing and recent updated second we're backlog our shipment guidance of in shortages. around our half schedules. trends conviction QX Our around our spite XXXX, hospital position unchanged some

XXXX We also enter XXXX. expect up position, which us set backlog in should to a we'll exit

given this enabling roughly improvement we contemplate and One schedule to logistic distribution emergent us gross previous production expectation from our our guidance, gross ongoing decrease. expansion. double margin expectation elevated long-term manufacturer to of expect level expected to move in were exposure in we online, initiatives our to line low margin. margin our the are margin, we quarter and this Moving of cartridges expect of cost level to reach its down the around transportation production anticipated a with maintain comes in QX, this low contribute quarter, the to and sequential for Southeast cartridge some specifically costs to double in very with new Mexico a to digit transition cartridge Once notably third our cost of headwinds Mexico, pleased shipping both level digit cartridge ahead our transportation Asia,

we we to forward revenue results financial drive very have year. long-term to In operating open Operator, expense, been given QX lines. sequential through a increases forecast pleased look growth. strong to finish planned and our continue the to Finally, in investments closing, with the please

Your [Operator instructions] the Hazan of question from first line Sachs. from comes Amit Goldman

Your line is open.

the Hazan. Hey, this on in Phil XQ, to is Thanks million I question. I flat but $X guess by should down probably for beat for to taking over start with the raised guidance, million sequentially. implies $X

what just as then staffing but and you I on of there's expected hoping think what's going change more the a number I some forward on bit detail what's can heard XQ answer down sequentially to part flat might give in to the be driving the Thanks. basis sequential acceleration on moving thereafter? front, a

Yeah, the for Phil. question. Thanks

to to QX over at year and growth, really X% XX all, are we XX% guide growth in coming first Q. with pleased being of year here full hundred, year between able four in are, then So a and

third to and Now, had the of in when it the quarter in comments our order, talk And here our we was about consumable our we guidance the this thing which expect business large to one commentary performing way think is August, in, in August. our we beat. contributed sort I to really back given our

just from way sort if comment. expected the will, excluding it about that performing August that of we if is you you so the think business And

for the gears CMS half some around Thanks. nine number, simple, I'm the if a million and maybe, the maybe X.X light a pretty put you that Tiffany's. number was wondering it. one switch payment, that that little a perspective I'm from in line you of right there's, estimate that of next here in there's are I'll touch Okay. put can about bit hoping and of treatment, payment an on that but provided embedded XX and year. an, some if, context context if add on million two can specific There thinking to that's treatments way be per explain math implies their

to. happy Yeah, sure. I

So And the apply it here, talk talking just approval of amount apply payment. for think payment. clinical improvement to I things that the CMS, the, you, we're, that about which two about don't threshold, clarify treatment substantial of did. We we're device different let's course applicants so an meets the the add-on we're, which, affirmed for per

to And new says, rate we're baked of rate. and in into less this going what's of that base this this so base for of CMS using XX% cost device Medicare the reimburse regarding cost already okay, new offset Tablo the then the equipment in case,

expected add-on extra the add-on the $X.XX. be payment So not is to

We expect it $XX. somewhere of to be in neighborhood the $XX to

will of of new program amount to payment us. know final beginning year, new will the add-on end this the for of what the We of becomes next sure a X. year, kind until it's be effective January And it's again,

to communicated don't a that remains submitting know, amount. XX our likely finalize per something complete amount $XX our now treatment have above which process bundled over in beyond expectation the max with the rate. but We working and with pricing, CMS CMS is But invoice to the So expecting to involves year, it. we we've the that payment we're and what

this that The proposals impact of is to all second and part you so X.X of ratifies of new final estimate any the million CMS at the to it varies what final rule. in is, and has kind rule the the of refer back aggregate

from swag really of actually calculation lack CMS of an and better to what percentage goes the a Medicare are make those a of home of estimate go beneficiaries hemo this beneficiaries tapon of budget. they of on word or for what, on review might management And simply to was Tablo kind during period. that number so before its currently it really what office the And at calculation estimated the of, is

$X.X for is there in million system providers that's or tool that impact no so outset potential costs. uses the CMS any effectively to of really healthcare a communication And in the implication for in, communicating the

great. That's Okay.

any component follow treatment is a room this or there the likely for there could going a it's Just quick be that not be on on still capital for specified you table really on per this that's basis. that to upfront or of one that year? you, the flexibility Is

the Well, are helping they that providers affected what actually. cost defray on to is

our So that have the application console because clearance home is received of, met XXXX. in of Tablo Tim's criteria of it that basis because March was newness newness. the was on Tablo the of that of one And you the console criteria meet to the that, console

elaborate to that high five at And with the I price want they believe average much what detail. be did, use calculation level, so I'll you CMS don't get a starts of And a into too the kind what and selling the the they I, use But of treatments to tell per divided benefit. methodology of, to of year $XX this period or operating of by that's by $XX divided calculate year. or roughly per number number what sort you to useful Tablo life treatment average

so mechanism the using per mechanism Tablo idea treatment It's the that being that to to per the cost is of or of on payment cost actually CMS delivered the incentive And a back treatment specifically just ties payment is this incremental providers the call. basis.

Bank Bob comes with from Your next of question America. Hopkins

line Your open. is

Good afternoon.

perspective. on the follows happens? Can remind a when couple Mexico you of us from Mexico a cartridge that quick just the Just shift

fourth Bob, shorter that, is chain. go here. it'll approval lower will cartridge to in we Yeah, be in supply than two, supply the then two benefit the It'll in actual is we'll current from in ready we Mexico from a Mexico that expecting and FDA the are at here manufacturer. get chain right. Coming the And real of come late we XXXX so and cost quarter, the have won't it be One, once our forms. be

navigate. supply simpler to cheaper, a it's So chain

great. That's And one maybe guidance million, that. consumable the, QX order that to on the Okay. question that on I then was assume X like something on the,

if a of just, the seeing mentioning end wondering confirm Like business that more you and topic to of those the Just you just any you I'm issues get quarter? just, the a impact two kind topics. towards wanted it's little clarity on are QX Or are, the actually mentioned you staffing, just sort QX that impacting sequential? you of could to are you there curious, other are

candidly, course, can with order, big consumable talk Bob, magnitude so let really driver is beat, of staffing to pipeline in was of we what the I'm QX then consumable zone. way that touch with pleased what you almost our the on And the really me and order a here of gives expected trajectory, that have less me right. as played backlog seeing. the we that we pipeline we sitting the given QX about the is And are it to gave exactly essentially Yeah, respect order maybe today. and the the backlog left we QX. are the you confidence lot the given the we maybe actually It the This and into had consumable

helps their that less. hopefully So

talk to about that? want You

training program flexibility guess deliver see staffing versatility the that very, implement the on and and mind helping staffing their me. Yeah, in sure. on I I the can staffing hand, levels new it's out the very Tablo of device get and done are flexibility Well, we and timing can dialysis I'd in the when everyone's thinking hospitals other install, clinical something that, obviously are and, pressures. give patient definitely when say to our hospitals of experience, who through they're monitoring shortages the closely does that alleviate and contemplating in simplicity are the is and and excuse planning

of be problem. this because negative, maybe you you how a think is a you to on a solution it closely, as are But it's, in, big bookings for potential where of it depending it's us significantly our like a, or parts problem short, positive watching affected not you reached would said, has equal that did point our forward trend but it's a most schedules, know, ship we're the as would I So kind certainly going

right. would, I So

think I might actually that benefit. be a net

like open, our Yeah, this think team, our team, chain coin supply and and no, the well, I our implementation also there's I you team much probably credit it our commercial group sides is I at clinical eyes we've I our so said but think here got two navigated. think ears the and

device lot well, astutely. very, navigated think it heard from the other I medical very that companies a of challenges we've very NA

on Yeah. nursing In maybe some Are Are thoughts and kind any you last preliminary as just opportunity? any into you of seeing that you, seeing facilities skilled selling magnitude one an one? quick yet? are

Yeah.

surface opportunity I, continue in But team, reasons getting of about think that barely for we view have speaking first enthusiastic in the talk we later. facility I, it the a we future inning, to and very about have bigger myself I and skilled the nursing there. whole really be say for the variety can being said, of kind scratched the

had of magnitude only with growth so penetrated It's we've So and of, acute just about. something looking and and, much, that but long into forward. a opportunity your runway richness another goodness in us the the we're of think the of we've whole kind a for part use to It's core future. part because that's the that excited of, certainly not in business, absolutely any of I word

Great. Thank

Leerink. comes question Next SVB Antalffy from Danielle with

open. You line is

two the Leslie, for for just I But how to however Hey, it. color first much the, it calculate the that. on about a think like ponies. good they afternoon. the how incentive? we question or Tiffany's ponies so the Thanks all all potential you you like taking question. and question can Thanks say for because I

this programs? just providers under. to centers an about from home this perspective, we dialysis the incentive? is operate incentive meaningful about meaningful already are motivating as this build these they as be think it you more How margins a service that Is Is even So thinking incremental? should when how than far

comment. let another to like Yeah. that the elevated Well, yeah, XX. saying first mass so we start we of elevated do just, the news. piece that too The was rate all, that But obviously I, Tony, if by bundled bundled is of was rate think have I off we good me

in zone you're eight, to So, providers will XX% speculate yes, that again, the if nine, a if you're margin it's at $XX a $XX we be of kind think it improvement, I and I be to for at more. any paid Right. least want meaningful. typically they don't don't is Medicare from That we're is hear that the operate that providers think population, going to meaningful. within,

need So have, a It, of said, we on, and that nice over terms communicated couple years. the and, to you next certainly internal that feel not that certainly growth to a, And said, meeting very on and I a, in still think our Tiffany's to we consistently it projections have, way. a our a a hurt. always will not nice have but is hopefully we've very,

or providers payment really it's think for higher very I impact. certainly But to to they're news receive that, the health incentive. likely story, and beyond are etcetera us but happy beyond to the the, I probably even quantify new that think is. it too the to a it And, equity almost try prognosticate is is hear going Yeah. good it

how end do inflecting? and calls? it relates the to a out, are to putting the home renal And about this and follow more these this aren't the and can labor so on on correct is helpful. patient know learnings moving talking the of further home inflect, to the launch there's home from can think there around business we're reins but certainly shortages, the launch, so COVID, quarterly least numbers when is a much. that the, XXXX, really really quick parts. no when about holding population helping, stage or disease, and that business, if But Thanks things wrong My controlling market, like ensure you acute That's have of do and if as is it the then up, kind we business, we I year, supply sense extent, the start I'm lot at guys on a that. these controlled think me you about some Okay. you starts earnings to

at fourth foremost, Well, for as just acute, which we home clinic And into environment. base numbers care both both to separate the head and unit the chronic out around plan installed also be provide that sure. numbers the the to then and quarter. our or Yeah, transitional our that, into first XXXX, and is the end will of the

flip on patient fun kind been high think like the believe rates, to how focus that's we that terms but been switch keeping materialized from maybe in our have the flip could in don't the said I, more in later, at while exciting devices in our In years I rollout the, rapidly have or And XX think we years And challenges you results. device switch, continue now. could nailing clearance. that's me sort by focused XXXX, right I beginning getting we've really at know of of linear the people like there ever looked years, don't now, point you not strategy sort FDA of fundamentals, when incumbent the after arguably of a and other flipped consumer producing sort hear see XX which or one on patient the conducted know, I that might experience ride switch of have that word just are use the, to to the approach the etcetera, even will avoid the inflection a commercial XX were and with time. dropout Well, the from really I, need right and we inflected argue period. I

are any we change feel XX% that commercial plus think things percent time really and, still ASN around results to don't it. is treatment, strategy. about hundred in care the I great discern the at continue the and you'll compliance. retention presenting physicians in that the I So about. study What We inherence Those anchor providers to a are

the if to I in years. promises of those out will that in deliver So the kind believe we on follow continue all rest

So, strategy. particular change so no commercial in

'XX 'XX. Thank I us think we what helping we and in all projected it's would in in win is we're and win that that you. doing ways the

Cowen. dusk Next with question comes from Josh Jennings

is line open. Your

for great Tiffany's usually CMS a is with, it's see follow private taking Tiffany's up a for type potentially and that, payers. with maker is Tablo on can arena? dialysis take similar for CMS, thanks them convince payer success you've population that Toponas the just payers the there route is, excuse some that that best Hi, Is and their, secure with private private questions the machine their decision the outset payment, had in me. of head-on payment private question The the to leading that on with, with

Josh. Hi,

prepare tell, question. this. Short to interesting too really answer early a that's think with premature I to obviously

the out by the out break rate same much coming pay whether they in drugs. days or for this way, home i.e. much single Just a bundled device commercial for the ago, in don't for treatments, it dialysis clinic a few payers this at and it's

mechanism. sort Medicare follows And payment the of so the it

you so, stands, to there's device. for for raised payers is I technically interesting private more quote idea pay And today, But think so as that preferentially a a no very existing the one, mechanism it unquote,

any not plays this And Thanks that whether in any, for year, should a Understood, on channels. taking traction those the from early, and satellite, questions. just, couple how we'll then you've think, I partnerships or it see strive announced out. but early seen update of too you the

Of course. Yeah.

last, we within home the side, that On added current about the last the excited also our put that saw or progress were a in sat really home this really, expansion. both being similar and then sense I acute the was new customers couple in patients E quarter more customer base. to home

were progress. on obviously the meaningful quarter say home. we in the intend pretty release with I pleased every press new had be to to nice new partnerships don't third continue But again, would some we So yeah, some, we, customer. And that

from Morgan comes Stanley. Ranieri question Next Drew with

line open. is Your

thanks for taking the questions. Hi,

or a, of the that, facility. a some opportunity gross that next a the of little we skilled were puts not about we models of year type from some into year. flip you geared your thinking thinking know takes provide revenue about from or, help and maybe broader you're home just I next be as margin least understand perspective ready switch should towards perspective. I or be getting to kind of, of longer-term our Just but maybe that guidance. nursing a Can those at acute frame won't

true, the question. for thanks Yeah.

but number Again, And XX, backlog into we end and first, results. things a good guidance, opening I'll said, innings sort position QX we've give visibility as will, lot say this position. giving we 'XX. run in our of year, we'll share in print the a expect we couple respect to not are a XXXX you of So of that'll to that business of our when us a with we backlog

signed evolution we XX really strategy, is 'XX in as our agreements large strategy year, a the of with eight an our of we in exit this of Now nationals the will where have third seven and acute regionals. acute consoles sort look the to look expand We'll continue hundred more setting. XXX top relationships into beyond. more and also acute, to the a expand and through top of to those And regionals we'll the place setting working

out propel there's our a that a do margin console of the savings. our meaningful programs now on XX will and lower land console. cost continue take to also continue lot I, the left 'XX costs setting. to of out freight in productivity propel, Number manufactured our will expands here, So we down continue once and four on three, that'll and of from we of taken expect number there's absorption cost that us we're the that's lot FDA benefits And in two, to out cartridge, there. to run the approval given acute we'll component XXXX we our growth the optimistic move that for in from to for Q on shifting drivers both side three see will lead drive about gross cartridge but of us benefit expansion We'll get this large There's are have the margin, and and costs And number and Mexico. one.

look sort gross when for print XX in four sort helps view also look to grow give frame So you and Again, provide will XX. and of you that hopefully margin 'XX we of expand more you. will guidance, a we to details revenue look, but of our line we'll we sequentially,

thoughts months, XX there kind in approaching it next you. international then I it. I away, now, the I our at recently And with Thank thank is you, I more the Leslie, seems of about this the on this hired asked outset about know a opportunity hire, maybe international. think like conference, it you. which is for appreciate Got details. curious XX your but of years to international, five you head

sure. for Yeah,

that explore we're So international, something hiring. to is and we have going said international

is really international that of going was set do who exploration to first internally. cement Our just helping us

an opportunity the of And exciting the international so nothing as XX% market. believe only dialysis We really us. us global has has changed for

outside And fully to exists Tam U current us for intend so huge the we a through. that our S there's into is that projections international baked not explore

enter when bake to to assumptions. again, so And I going a say. go market, ready What we're our into and sort will it of we're

to expansion, We as us, margin a country growth needs have to a as to gross a high a extent revenue well from we accretive bar perspective. that that perspective, for international enter be the business, both

any measure Lesley cut twice the use countries to going and So to we enter once we're internationally. before analogy,

from next Oppenheimer and [Operator Kalia with Suraj The Co. instructions] question comes

line Your is open.

me Hey hear congrats taking thanks that efforts. ESG Perfect. all the all you questions Can for Leslie on right. and

couple maybe I'll you the So couple and that's for them a of to VR post world.

it, four treatments to period that number has back if a hold. beneficiaries. certain to with the certain for understand outlay certain patient calculate Tecnis, three So, And per you still stellar five that's for week I per of a then week, $XX.XX on treatment treatments the as based an level HD were do

Yes.

two think are ideas I two here separate. separate So that related, separate but, but

used CMS is one that the to So methodology benefit. the estimate

Okay.

was year. three So the based treatments final per is they that it XXX week, treatments to said rule, estimate or on it in per the use methodology

like again, And our invoice did $XX,XXX yet an pricing. was believed think we they what looked they, I what have again, used submit at estimated So Tablo they they actual was to they ASP.

by guests per and XXX their year. was over then these treatments So divided and years five

the be was between $XX head any for is assigned So is which $XX. say has to But a and let's that's once newly Tablo that complete been all that $XX, that establishes Then bill $XX established the that, home. the at Does to it the taking calculation make to payment about and that incremental provider the treatments again, estimated once final patient code, benefit methodology picks ability $XX. sense? that, use they what has midpoint rule

the to support that enough. port understand issues ordered large customer maybe was order, high let I'll this Thank take the you to guess X trying taking for I'm what's forward? could you Beal, be characterize the you consumable maybe was utilization what's specific this just this Fair or amount customer or I in quarter maybe in sale it different or from right? terms the it. it the get issues, a did that. million order forward And specific Got specific the did a perspective, of had there the and change, they

So, in this really total way million it as of all of quarter, first in of these I the other it large right? of million customer it's the of order, this the not one So seen big of a revenue large orders, consumable have about an and mean, terms placed but think our QX. inclusive order order terms all, in the was we now, was can orders, what, our of order, certainly you in $X.X sort driver upside $X

You we've seen may here. and one remember, another

to just that will it's to sure why can more supply we grow, deploy customer make of facilities. no we start maybe considerations, locked maybe as or it's for, own a think, their down do There's I see they reason these. to wouldn't it chain their

think I just these and we'll So more. see more

it negative way. one QX this Now was isn't is huge of through any not pull particular it particularly inflecting this sort not sort to from it, is in a unique order customer, and it QX our of

guidance So that we've questions our Does answer for the baked our in consumerable for into shared that expectations revenue I've edge? QX.

I at gentlemen, and to call back turn for any I'm now like would showing not ladies time. the your to remarks. speakers question any this And further further

for great and a Well, today all you of Thank joining Great. to you. evening, have thanks

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

may disconnect. You now