Acutus Medical (AFIB) 13 Aug 212021 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Acutus Medical Incorporated Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Caroline Corner, Investor Relations. ahead. go Please

Welcome operator. second XXXX quarter Thank to call. earnings you, Acutus'

available website recording review. includes on by available has also Acutus' to filings, call Acutus' XX-K. in additional quarter is call Vince by SEC, today's from that the filings SEC future to SEC may including Roman, Form Acutus fact results. statements and cause the section This Litigation no Form required expectations projections encouraged statements on as Reform the on based Acutus today's statements including considered these forward-looking Private me Pacific and in relate Acutus' XXXX. on this differ performance Acutus' of Burgess, forward-looking these with statements the in under forward-looking as Chief A also include be website release with today, X:XX recent results you discussed factors meaning will to section Time. are an within statements. details should call for press Officer. discussed Factors also Act David Joining Acutus not press update Securities except and on this statements website in historical the the are described most provided President obligation more financial call today. law. Investors matters section www.acutusmedical.com the The under the the Factors do second undertakes are call, forward-looking management's of as during Acutus' X-K filed Acutus' are Officer; Any applicable about Chief Acutus' under Financial results detail Risk of with risk of attached All to and of will made which exhibit Executive P.M. statements to release be are forward-looking that XXXX the

his for quarter business to turn call XXXX to the like comments I'd highlights. and over Vince, Now, second

and Thank you, afternoon us Caroline joining to everyone good today.

update an I our follow clinical, as also rest with external commercial operational results as During provide well year. today's of market results as for developments. will comment some details on strategic outlook dynamics. on quarter priorities market on thoughts on key David will the some will up our financial call, the provide recent our second as and I well and our and

the professionals team outcomes improving more are remains nothing its than an Our we to in us important the electrophysiology. capital reshape steadfast and We field There clinical the serve. recently million healthcare commitment patients to and paradigm for completed changing of treatment is raise $XX become to and fronts electrophysiologists net our momentum forward in the and with business, all we of access, portfolio products. differentiated diagnostic imaging and broad fees of choice realizing improved and therapy expenses through partner charging our our of and on to strategy

executing and commitments are long-term we this are our building for on We company success.

Officer Niamh industry. at of Commercial further held strong driving has record of and as commercial Board currently look our Nevro we look bolster further to are to we As our as serves Niamh pleased welcome to Directors. we -- Pellegrini years strategy, where roles has medical performance. commercial growth and the over consistent XX track of has she device in experience a leadership several companies at Niamh Chief

his announced we past a we of support. contributions want friend were the Advent and Malik from his Board for Life at company's the decade Acutus over trusted and Shahzad greatly among extended We joins as service our today to are that will and he in first Shahzad down team from to in the during Sciences XXXX. invest his been Series round guidance and A she Shahzad has benefit month. adviser appreciate Directors. very excited thank to as our also this step Niamh's Board I

are the recent seen several as program operational months, our quarter leadership, have These technology and clearances, commercial execution past improvements pillars; three product and in approvals engagement. and and R&D excellence. development well innovation results physician improvements Over in as our across reflected ongoing strategic we second financial

initiatives were clearly display these Heart July. Society Boston XXXX in wrapped was the Rhythm just that of in All on at late up meeting

of more as what we during learn at strong of portfolio, we of development carried attendance a As products but in offer. AcQMap large well a booth, from therapy our our we Ablation full-market programs. Force-Sensing was mapping walk Transseptal is product of EP, eager with System, highly customers theme to our Field as Pulsed and our offering the HRS of our a field. complete with February XXXX. be poised that clinical only and to our were to acknowledgment in in-person a community the first participant We group our and Access showcased line diagnostics reminder, We our of thrilled about, as and number to our humbled of are, positioned be as AcQBlate differentiated meeting the in front our Ablation the since major details opportunity and Program. AcQCross our leader launch since this relevant from to scientific first with the Acutus Many not In in well featured of XXXX, conversations Catheter and in unveiled physicians booth, common as our and by sessions, broad who system large a and a

potential left sales capitalizing over high the these opportunities. and on we with team Our incremental commercial already XXX are meeting leads

and the theater industry's rhythm well-known accomplished included nine Our session at of EPs. HRS most

individual core-to-boundary the highlighted our we by ablation AcQMap enabled system. uniquely is strategy that Here

and A available from in response this attendees. replay and very were and our PFA we website YouTube detail channel. with plans ablation which we in on community, for PFA of by previously session encouraged provides introduced differentiated the clinical HRS a broader addition, discussed paradigm full In the Field program, believe our We not Pulsed program Ablation development is had we therapy. or our our

unlike program. Physicians bit using will RF the Just with are programs either device under as well to opportunity familiar drill of catheter PFA our the PFA delivery we PFA, development the or PFA workhorse option AcQBlate platform majority have here vast a the therapeutic for our to to use have our adopt for as procedures. as Catheter Ablation Force-Sensing a deeper

addition, treatment. our point enable focal with ablation will to will This In platform complex mission AF to choice especially catheter of on us fibrillation patients. deliberate fast suffering mapping Combined to therapy, therapy a ablation facilitating personalized ablation a among imaging enable more allow a to a system, with to PFA, in patients treat the in is have atrial line fast any guide and a ventricles enable to our delivery therapy platform the flexibility program our approach continue PFA during patient-specific atrium. treat with and arrhythmias, and provide potential outcomes. recent and AcQMap system cardiac to with will point all later disease and program animal have to right improved from therapy updates targeted including first-in-human anatomy more will reach Having In we for PFA our this increasingly promising accordingly. months, studies expect results shown our year,

for therapeutic complete continue Enrollment efforts make in continue progress our IDE right is toward to to we trial PFA, atrial a to and bring to our the we and well to US, in System flutter FDA-approved progressing the catheter expect In enrollment to the in US end persistent XXXX. Force-Sensing evaluate early system late In our XXXX, the May application or this patients. Ablation both atrial paroxysmal of the for to Catheter year, IDE and fibrillation in catheter AcQBlate with approval and addition

in first the sites expect patient in this trial the to treat and of process third quarter. recruiting are during the We

several regulatory System line As include our we AcQCross of that our advance pipeline, and complete are clearances portfolio. our next-generation of important Transseptal and we Catheter devices and AcQBlate Europe, Ablation our product approvals achieved to devices. in our and delivery continue Access clinical sheets critical have Force-Sensing elements development These

our AcQMap product we heart for accounts Our us Earlier system package. are the do have Transseptal and structural week, in software not Access and revenue increase receipt and Mark for and both our procedure this revenue we CE allowing approval EP into AcQMap clearance X procedures. XXX(k) lines announced where an AcQMap the of the X currently generate treatment complex is through update our significant visualize improve interest procedure. that physicians' patient to complex ability of to more and mapping X customers on rhythms, helping diagnose outcomes a AcQMap improve an regions of set standard continue the streamlined for greatly will mapping identify of arrhythmias. further will and to even to software fast our

upgrade year. this We half utilization a software to mapping expect here the increased factor the supporting in procedural of be second key

to have year with past build foundation products of end January half, about of equips the and product critical Acutus needed of EP. as from SKUs over XXXX portfolio the to we of our significantly expanded just This the XXX teams XX a July. scale in SKUs in Over commercial our

coming with continue as as will in both incremental product We platforms. our years offering expand the and launches to well months new

June results quarter. eight increased consoles revenues growth up worldwide for as XX to QX second-generation consoles revenue million total second while and Now XX, procedure installed to of volumes We QX, the of the of at XX the bringing AcQMap and and base during XX $X.X volumes was AcQMap installed accounted the We of the revenue globally at QX end of in end from base the exited turning see in the compared with at capital year. through XXXX strong our rest end to equipment generated quarter higher million compared of $X.X the expect XXXX of growth funnel driven growth QX million by last We the Year-over-year a to disposable our quarter. $X.X procedure sequential continued quarter. versus the in increased and of installed in XXXX. base to XX of to of

utilization. on accounts base, to we previously, the discussed continue for sustainable installed As only but our also targeting growing not right focus

we efforts second reorder the the several QX in here QX. now quartile procedure customers exiting During within utilization. as during top saw well At we these active quarter, same hold early saw new volumes accounts, both as these performing rates with of take

growth as existing both growth as This volume to new account in openings in We our both registered sequential growth well associated business. from direct came Moving US basis centers. uptake and a year-over-year on Europe and procedures. underlying and

the with volumes. on our driving during stability disposable this product expanded in we of basis. market general quarter expect and saw a dynamics In procedure addition, be revenues AcQMap to elective is we US, second outside driver line restrictions a limited In the key go-forward on cases

been COVID all infection have and and you related actively to hospital aware, higher rates hospital we US. fluid shortages. extremely As is however, This and response actions across the staffing government COVID an in monitoring are cases, situation are rising COVID admissions

As emerge, throughout second the prepared the quarter. COVID we to resources coded reallocate our continued and in elsewhere. our U.K. field In US are business team's Europe, any the restrictions affect regional actively to

anesthesiologists and centers nearly One two for was due in a our of shut nurses. example of largest Europe shortage weeks to for

related and not to COVID continue and execute materially the challenges, from what and our last the different months. these see continued openings, revenue overall we We drove UK, to some extremely in intermittent well but in headwinds team Through new growth. few volumes, account seen procedural increased Europe have

our to deliver with Lastly, continues strong partnership results. Biotronik

the these fill our due the products through training negatively this expect strategy look expect to milestones value and throughout engaged for illustrate were that the data, catheter those in in to With be financial am updates full the several During to results. new face volumes team innovative our and and we teams further able impacted progress I'll delayed solutions territories David? Through medium, long-term commercial to heavily We clinical of Procedure short, to providing almost growing forward to Biotronik to the on Malaysia rest our see XXXX, regulatory, hospital of the of ablation Biotronik to quarter, both broader David expect in factors, ramp COVID. extremely proud now a the for quarters. and large to and we it in bring all has we and are In support I implementation to closures were our back launch coming of orders markets Biotronik Overall, year. our adoption and and our turn driver have will making execute product proposition. Germany by remains been like we over the over a collaboration that, market. our the critical this long-term. external

and you, afternoon Thank good everyone. Vince

as provide my today, rest for I remarks our year. results quarter the on outlook as During the operating XXXX will second of well details

as from for volumes XX% sequential higher XXXX our negative XXXX. businesses negative new negative direct XX%, the by of new increased and the our compared second gross second in Non-GAAP driven our XXXX second million launches. prior from in increase our second The Transseptal $X.X basis, $X.X well approximately a and $X.X our both mix. production through procedure through sequential for QX and $XXX,XXX partner As driven in by growth, of as market increased procedural Vince in agreement the business for product higher and of in XXXX were was improvement range relates and of to million Access revenues XX% quarter in the of advanced Sales quarter compared console, XXX% Biotronik. led Biotronik. year-over-year year-over-year margin quarter year quarter up adoption mentioned, volume of XXXX. second non-GAAP revenue of with agreements EP AcQMap disposables sales largely million, direct contribution $X.X access quarter, our sales with QX distribution last gross volumes products million and sales, our with Revenue of and distribution quarter. devices, our of by direct disposables capital margin in $XXX,XXX increased the The capital On broad associated procedure from was

year growth we our we the in our period same discussed our continue With the conjunction million expenses as to Non-GAAP ago As long-term for Ablation have software and our and $X $X.X mapping primarily of $XX.X costs. revenue. scale and to the company-related million manufacturing ongoing in in XXXX. Catheter see due quarter increase expansion business, Ablation million R&D R&D growth. in were SG&A in continue was with program, Pulsed development, full global support quarter to primarily The in investments the with Field quarter. in Non-GAAP approximately investments increase have we increase compared margin previously, team, million expenses footprint make The catheter. upgrade improve XXXX in were the in AcQMap the expect to second to launch, expenses gross compared we Force-Sensing our of our related to $X.X was public AcQBlate an with to significant our for commercial made G&A of second

for after second loss a Excluding share second million the the loss or for our to effect XXXX forma per quarter $X.XX conversion non-GAAP XXXX to quarter specified items, or our of net net non-GAAP pro of of the $X.XX million share convertible stock. giving $XX $XX.X of was compared per preferred

expenses which XXXX early issuance the of the accelerate fund offering infrastructure at end X.XXX second offering million $XX of future completed total invest greenshoe in million utilize of of a allotment, of shares In we $XX.X of and expansion, support to $XX.X we'll common R&D stock. resulted and Net the Our yielded million. proceeds the growth. cash of equity balance including in commercial quarter which programs, was July, million to gross secondary fees the and approximately proceeds key over

rest provide of remainder our XXXX, would some Looking like to year. regarding further to for the outlook the I detail the of

our the We guidance year. our are $XX outlook to the $XX million. in This for the the the of conversions. extent our of influenced recognize range would related end-market but revenue external guidance range headwinds. equipment in see capital we in and a normalization business the QX as to to to improvements and relates to and from higher acceleration an a on The guidance million utilization, full-year, range drivers, the still present came orders capital in as same-store to, key lower half this the our end we by openings, second the year end of At account need is be we seen maintaining business to of For environment, conversions. The QX COVID in primarily similar expect second and wide requires COVID conditions higher year-to-date moderating of contributions of the mid-to-high these basis. a our in range, which as and new to QX to largely range, increased improvement well what variables have product half QX new

would the of year, and the time potential electric away vacations to As prove tied largely to hospital relates patterns any quarter. the is due expect seasonality sales enhanced disruption through weighting disruptions, very to of back installations. procedure COVID expect This some disproportionate short-term XXXX, the half to from in extended it for reasonable a the we the it phasing fourth to observed rates centers in resulting Based and several transient. system and think procedure geographies volume we impact the reorder the is and new and key timing to volume on of

quarter provide the back earnings will call November. the I further will We turn our Q&A. now third conferences during investor to and remarks Vince, to for call updates and closing facilitate in

Thank you, David.

pleased our half cadence the on reflect our I'm with first performance of in of I the the As year, of trajectory business. the

Our I right confident am in place. we and globally strengthening, have execution is team commercial the

In key years for pipeline product through products milestones. addition, and we XXXX very and continue to approvals, be expect advance regulatory XXXX clearances our to active several clinical and

We are our maximize forward. call business rigorously focused appreciate continued We interest questions. open the performance on your to and Operator? we'll to your our now support own and execution and drive

from the Instructions] line [Operator question first Marcus JPMorgan. comes of Robbie Your from

open. Your line is

is Hey taking on for The Saran there, just Robbie's I team. guys, color guidance this into little a bit. the Thanks that on question. want to the from dig

far or or about guidance? for the utilization can look lower right if either -- that $X now you midpoint you new confidence? eight gives What at first seeing million the half. you just to So are the that what full-year in million mean, so confidence that versus in the of you I are that gives $XX placements get in end seeing you midpoint the sales I over the quarter the that

Sure.

from the the is that said that frame I utilization. as Let I new the year-to-date and and -- me revenue -- the little product new think look fourth drivers just and improvement the way quarter at to adoption in If that drivers what account were bit. the first a second our quarter about I quarter, placements, the quarter to first of increased the

-- start opened account And As late I in openings. as a last We let I look new number we with those week really uptake the those, quarter. are the at very we each in of accounts would strong second second quarter, very late, utilization. seeing accounts the describe me of of where opened what

second in also couple on quarter. second those I accounts a utilization that the of quartile ramp other is the already of in referenced quarter opened in as we utilization, call, on One top would say significant also the accounts earlier the we during of saw a our

most we product -- is quarter. those new here capital and we sale. base that installed That those on the place see many very to for devices second not variable reflective conversions. launched the as Ablation front, same sale. cadence, the continuing the everybody systems well. the year convert AcQBlate, rest those capital contribute aim of this really the in quarter, were second second of evaluation at a Remember both a last versus of would remind here quarter the third of in should just on On new quarter the is QX a new and against to how products later QX had the and that contribution increase well products end stress of execute the saw under you our Transseptal and revenue puzzle crossing those incrementally to really and expect we quarter as -- and like on increase we then And no start the launch basis. non our as we call to Catheter. those is well we new of in trend is during to accounts uptake At the QX second the of our And products sequential a opened in piece a products the capital into necessarily sequentially strong token, to important very contribution And our

we already have evaluation systems we capital. to in evaluation We completed in the we convert to number coming third -- those where quarter. So of for converted expect here where have a up seen has already -- have conversions that

Europe commercial revenues team added against as the engagement is also year. set Commercial I set team of March that a And QX in look really Officer, our and team together. as last the this really I our And out would Wayne QX in if direct think here QX figuring new driving gelling is you revenues mean installs US QX is as And our docs. comment coming today. year our here for of against the in this driving is year particular then driving I at Xst the sit direct We Wilder. we formula and of with utilization in Chief

And below little a spend actually Got lighter the quarter. were it. in we looking top that I in expecting Thanks. line think than came

this what have expenses As at to in coming you quarter? weighted especially in the should revenue operating ramp where we and think XQ relative saw I about to

Yes.

So to your of the operating expenses R&D. we lot in spent quite a past several our focused fine-tune investments I team in specifically on trying months lot R&D. has have time really our prioritize know and a

QX to to that R&D R&D, in our our lack probably You'll notice reflecting our most precious more sequentially in that a to are and effort productive. resources down from on ensure investments is investment was of prioritize our a way reflecting basis utilizing non-GAAP very we not QX clearly but that

a look flat-ish the despite on you at basis some if our QX, expense operating QX non-GAAP revenue So through ramp. from

from an going operating did in OpEx a million as QX of burn expense here. the moderate significantly not against cash well. margin on $X actually in expect to the -- side you significant I half forward. not quarter which back which improving contrasted a would gross growth But cash improvement the expect saw burn would I Our QX year in our

-- to be range to support then need line particularly a to million margin basis just about factors turn mix positive to funded being us rate run quarter gross this million and on a said We bit expenses $XX But previously to at grow expansion. operating a little the should started get on profit I we to margin start at operating some expect be it go-forward in expenses be million the pure to would get monthly commercial gross that will in a starts that $XX depending we gross as breakeven to a $X a on because by obviously. --

our development, that on a very our not prioritizing are stage investments ensuring in focused we effectively this way but in managing So expenses our we're opportunities invest managing foregoing those to and disciplined at cash.

Thanks my question. for taking

Next Bob from of Bank the America. question comes Hopkins line of from

your that force Bob seeing is You nervous sales the be with have have some you've question. rising, for the Brad any into procedures on talk just EPs signs We you're year on Bowers cases But if cardiac held Thanks your to for you're Or you're the I this today. the forward. hospitals, understand taking if was worked arrangements of better what again? wondering your access or than able others. going some be if down to that out get to to new and might going going confidence COVID

take I'll mean, I that. Yeah.

to to comments the have energy, crop to seeing they'd figure we And enough down hospital two, two overnight during in away our because have is all up. This U.S. very they customers EP only -- talked with large four how or prepared earlier some business there's thing. in a lot for quarter you I as it an a business. time they And a influx patients some anesthesiologists, ablation Central that, that Europe. we're back commented overnight, patients staff, last find impact are regional. to patient then, to gradually of And nurses hawk. of right can sort hotspots, a to said weeks. didn't of way very the regional the and three Having spend that certainly, not of And of hospital much following do. up can hospitals The the the patients business, get so made and not from they have on family -- hospital, watching same-day have and they to so basis, invested our and the majority out have were like we've of now, think seeing. I I at a where shut typically discharge come fluid pointed

concentrated, southwest southeast. our in Now impact. any impact installations and U.S. so southwest, the are if not seeing we're you in if highly remember, the much very much The

them something with we so. we just team. is here I that, it But our up off they're to the hearing COVID they're be right he this hope like, X/XX week peak was States spring. sit time. before out inpatient crystal septal this And moving We're still call resources XX was Talked to cases and today unaffected COVID whatever situation have -- online are our within our situation of hospital fly -- was As one to phone they the around their at back on top our of last that here perfectly it customers are by to And it's said And now or that devices don't at population repurposed where you, story elsewhere, there. a knuckle our thing. of into as the it's heard Regional Business majority it's here tell other or curtailed And candid have Director in in stopped And salespeople of you. crossing the today, running the the in one very a spoke we the And Florida that mappers accounts we couple I'll We're there. or this. and United come we to top a fluid got a our cover with a installs, selling days. in today. sit a can. same those historically shutdown. Also But and with productive white bit a Florida. southwest, different over hope XX elective days we We've last on some very of they procedures over ball have little a

fluidity difficulties. it. understand and Totally Got the

that So able color to us. the I appreciate are give you

here. then, burn if just help can growth cost-cutting I recent follow-up the wanted would runway how amount forward. much of to one that. out for just gives revenue And I you? thank So on there versus you the the understand cash raise on going And that capital

questions. all taking are you appreciate I So

this We drastic that or assuming think to management actions would Yeah. to on abnormal have initiatives mid-XXXX, cost no expenses we'd get undertake. us

hiring continued within continued our in sales investment contemplates our programs advancing that So clinical et force, cetera. programs, R&D

with So provide us does with we that think to good -- point. runway a this time

So on be a the think dollar really not looking put to to possible. I here, each looking And the productive be in place our or necessarily know elsewhere. resources side, want cost have, as is could the cut expenses. we that model we're We're as dollar the we management to we clear about most cash spent

make actively that So we're very going prudently. invest to business our sure to in we to continue do

well As pays know, lot revenue growth gross bills. of profit you and a

we should that as looking burn positive profit. a expenses have we're That improve increase simply turning in our So pretty on position. heels not a and cash financial gross necessarily turn overall gross would impact pronounced of the on forward margin our look to

you. Thank Understood.

line comes from Blair. Next Kaczor question the of Margaret William from

is Your open. line

afternoon to potential like Thanks there sounds taking the now. good XXX leads, pretty guys. we the on number of wanted seems HRS. the with feedback the Maybe follow-up questions. nice which high have strong sum for some off base just to Hey start a you It versus had like installed

of in potentially qualify terms high what And So we historically they that? should something do just time the how over you potential closure in lead? for trended rates? I was have period How curious, like look past

coming. on were I'll of with organizers phone year. And question. a time trying a for We pre-gaming we almost spent lot of HRS the moment. great all what were HRS weekly who this coming the Yeah, on basis the tell you at from were overseas, fellows to heck and people coming not, people Were coming staffing out was up figure and last very our titrated to the

were talked the in pretty year. go pretty in to traffic terms with number to we ahead we went attendance, have that able attendance to I'll from came that leads, actually time lead which due going the happy the I to -- what there also to I to with and been whole the point you actual just paid very and generate would generated don't from looked travel interest majority to that some quality hour’s leads sort Boston year that of off. some few were disproportionately something the numbers engagement of lower, reflected And leads leads. career. never and thing. it The -- or but in that of really a come So no were was and we just and two I folks hesitancy all were like This good and felt OUS, wanting XXX and only from physician -- I family. of true booth group tell from of leads out in staffed from events country was out fatigue significantly interesting before normal that the spite It the was And physicians three from after we was Europe and mid one have But midrange I would did over high-quality of and And our exhibit as and west a social at show. vast I've our west of Asia. my either east. virtually physicians think done or all COVID spend down to We high the the

just septal couple months we really, launched our leads sheet new left a product. And heart engagement by just heart we not rock-star sit quality go following, mappers a dots VPs. single good and a our and heart procedure the had needs and XX of with after every and sheet connect at to those is and look of way lead, system participants each lead just -- the leads by the line our getting after left we managers assess left booth lead ago, by line mapping had and account every crossing XX but assigned with the each and home which assign XX On those that Monday lead our with hours really of our

I think we're to going with. great really do things some

So also well. great leads there door those and systems as openers for kind are mapping of

So super how went. it excited about

little in think usual unconventional been have swagger. Francisco look, wear a we passionately come bit our suits years We this San at always way people of might our As approach a And way come we and of couple at appreciate at bit a We business. the and don't little -- a the I of ties. ago. you HRS I a think rather different with come

Okay.

transseptal be as sorts for all that the XXX could are crossing ultimately various going that Just to they ultimately physicians products. of hopefully high. start of And types follow-up capital can grow

And we trying all, I'm out us revenue look in second look a quarters? trying per then at And of guys to is figure trending? of How your as go have. bring you I'm if on is ASP products towards to that to the a me that. just some wrong take if future correct at for that or maybe procedure way of number those So you good account, other good that a

Yes.

good one kind first new account existing that's we steer a Health we're for the have to into was that on model Arizona, us which trying available products. to physician Transseptal some got the Each think the may tenant account assessment. Scottsdale as to our as for to system the portfolio. their second are have of introduce certainly, that example, coming having had on seen of fair of interest. our AcQMap it to of late of Banner universally But a part anchor way people part the Clearly, in the these know in I physicians company, the the procedures in different booth a and product some is quarter. was in us the question So Margaret, devices, on -- to to look other Access impact to second get the system of how And actually the the

QX. modestly have talk table ASP procedure With more about -- go-forward to the committee and most once of is specifically, obviously total in procedure I see probably because ablation our the direct improvement we the We get expect probably a we it. to per QX the did the in to businesses see like think that rise should the that. way available, of on efficient step our rise other would now. was And a opportunity a second timing on an launches, process it rise product progressive basis, more within leaving on contracts US basis. function we really $X,XXX to remember some the to things through sequential would of get the that catheter right takes in a on to of that revenue and tune But And expect takes in of because quarter. we're continue the some -- that ASPs area, these

it. Thanks, Got guys.

next the question comes Instructions] Canaccord. [Operator line from Your of Bill Plovanic from

line Your is open.

on taking Good like focus evening. my questions. pipeline. for Thanks. I'd Thanks placement the system Great. to

with field, the going on the don't made CRM especially versus some installed on this then, about about should if accounts think to First, to as around the potentially installed shifting frame And sure And talk there want you've And lot and new out next because getting focusing hitting decisions secondly, programs? systems the counts. how getting numbers Thanks. coming we think right should think to about commentary ask pipeline, productive make we of lost base next question. And to capital sale a and how that that regarding quarters, some you unproductive you be have accounts. in six that made. are lease year in I then and we of are kind year, the when or maybe the I to the kind into you about really a systems you're of and time new that? just get different that the then, wanted COO as there's XX-month exit where the couple ready that concerned of from we

Sure.

be our take strategy and that significant year the both partners. The the you part of is, become to of you pointed capital reason on expand half the distribution our contribution And of across a more account So, second question, the can that out have basis. second business for number is placements. And I'll our which that respect all what Bill with will of on as we are gives Vince and the and expiration. of able in a the evaluations we're here US actually operating upfront to go-forward our three revenue commitment is exactly true we -- in segments Europe, maybe The does pretty a slightly that revenue come coming having commitment rise to those side of lower deals here. in deals we are predictable or to it to we've position convert success in the nice us long us capital recognize. conversion But expect and completion would started will on to capital the a capital percentage benefit that It to good term is And revenue. for result of evaluations, cash on to sales. stream to

were referenced QX sales we flat-ish that script think QX. capital I roughly in the to

us start strategy and first that in on also about year as On a systems or a the included there greater and purchases, or standard actively moving champion the be first around is result the systems of to doesn't very accounts having the the service of the or us physician that factors pace anyone result identifying is the with at can system site is in will patient year other variety the are year install $X,XXX systems, productive sense. your we not And of make There has of installation. permanent As out to in the and our about did ecosys left. little doing we that. associated that actually accounts that a the installs there than fact question can and launch into frankly tick have capital It a services we we the in software of be value which $XX,XXX commitments which right recognize to quite for commercial can that, of play. a a in these early around, be

said, installed added So installations redeploy them here, and we upgrade the around the eight them field. as net into In to them bring base. I the back will look we systems to quarter, second move

here year. We will some in the half probably have the back removals of

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So the installed base grow. will continue to

in there I think base. has the -- of on I there's a growth installed know the tremendous focus set

a focus rates. Our utilization the installed pace on meaningfully to trying is that reorder grow to at ramp us but base, allows revenue and both disposable and

Yes.

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the it's this. repeatability of question process. could with reproducibility When follow-up we've product talked a Great. And new you're Vince, the if launching that I getting about

think an days that over repeat talked things over about with that investment in how XX terms time. you've the the how that account least much last we should about you the the past You've at of onboarding has And revisited to curious, in I'm learned community? changed – past and since XXX

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Excellent. Thanks for taking my questions.

to you Rhythm coming our Theater session. enjoyed We Bill. as for well, hope that Thanks

you. Thank did. I

the comes line question Marie from Thibault Next of BTIG. from

Your line is open.

here you utilization. taking question the a Good questions. to with maybe Hi. on Thank evening. want for two-part I start

the really kind of hit who's new is some and to top running ground top user, referred the You users and in quartile already that for a quartile utilization. in

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Sure.

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example for like first Our for is in revenue $X,XXX. the quarter AcQBlate

that the will without And cut week number accounts. that example at second the doing we've opened account. here XX account that catheters They above catheter the that one on – to in then but quarter added in in were in probably number I $XX,XXX in you still a they And have a that basically it's in they got And we Europe April, happen doing concentrated of Europe. AcQBlate. So quarter. or gave three level third will AcQBlate actually the

point ratio helpful definitely yet is workflow the to is it not We're in So though. AcQBlate now little and speed does X:X right AcQMap a a it at where Europe bit.

much. Okay. very Thank you

there's a has – which over there think J&J at that integrates account more the catheter in don't bit our screen as way on and than every I the And if the AcQMap that mapping is not the seamless of single X, seamless system sort yet HAVIT. competitors catheter or a ablation

start that be physicians you in software have absolutely over next weeks. when modules that that those mapping of to going going And think to ablation catheter to tied software the level, couple system will accounts is the just I the installing are experience seamlessly those We in with integration. that next Europe, have

they're and the and companies PFA on go catheter, and to the your very helpful. interest. why something helpful certainly matter. little field. user-friendly think sense. Spoke usable, those Everyone advantage makes on very over catheter, a a things topic focal could at guess same flow here number you Okay. you think PFA, very there. X of in if Boston rest Thanks. could month. last ability AcQMap conduction RF more anything, finding in I And hot on. point have have to technology detail why follow-up working an the these a the a you zones why seems did And in certainly Maybe with the have about That All of HRS look regions of

Yes.

that's vein. quickly lesion our went could that circular who's focused we pulmonary large understood It's is deep Virtually out – attractive. to get So Dr. pulmonary XX-ish percent the the it's a million with market, and driving lesion purpose-built right really take total if we not any catheter make Mickelsen, chamber LASSO not about ablations catheter of – focal it. ablation with the everybody enabled ablate one how Big a of done of cryoballoon, a the program a with focal heart year you are circle with now here a else in procedures think with in on But globally, point with point I that's ablation number to in today. those about done as vein. a PFA around PFA catheter. a

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vividly program we've a think got I here. competitive

Vince. you, Thank understood. Well,

This in Thank a you concludes all of questions day, today's the the in participating great queue. everyone. all for call. And have