Acutus Medical (AFIB) 12 Nov 212021 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to the Acutus Medical Incorporated Third 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] Please be advised that today's conference is being recorded. now of hand Investor would to conference I Corner Caroline Relations. Instructions] like the to over [Operator Please go ahead, ma'am.

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

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

I'd XXXX to turn call over the third for quarter highlights. to business like Vince on Now his comments

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

and we today's provide will quarter strategic priorities, During operational I on market an on on recent business our our I as up what our also developments. clinical, on well and provide of details some year. and today. seeing are comment will rest update results our our dynamics you commercial as in as some market with perspective David well third update call, as for the results, financial the on key will outlook follow

our to product our areas the Before continues dive be into in like QX build commentary the and heart therapy. I three well therapy heart left our key environment access, and left external we heart core by breadth I'd technology Are and access to of product line team electrophysiologists quarter the mapping very during to accomplishments the by on structural and rapidly on out each line. of operating as received focus specialists guidance results, continue

offering narrow refined Over this over SKUs product SKUs XX the and today. we a from just of past expanded have year, five line to

Europe. of help software be calls rapidly of an particularly will results seeing that where large atrial and helpful persistent QX for automatically into in Ablation Catheter Sensing cardiac revealing this software commercial growth remain around fibrillation, traction our therapy, interest customers, is QX. annualizing physician $X in crossing insights and with Force million and tissue. now In the our further each regions we better that line tailor new out ablation in last benefit patient believe challenging. healthy year. population quarter than here capability mapping and System industry the the of gaining adoption encouraging are expect their their growing persistent mappers We and while guidance, minimizing to This threefold physicians AcQBlate In product revenues We the curve XXXX destruction therapy higher total signals therapy with will septal same our unique and patients of delivered longstanding at in here mapping a is feature team

adoption. Catheter in our leading approval and Sensing for the Force behind right that therapy in and can trial and by XXXX Our of and for ablation efforts have activity. of ablation These also these going U.S., flutter our U.S. support excellent I the or AcQBlate to end the of well allow In early ablation to teams expect of we in you to our to in support week, enrollment atrial our of engine installed is clinical approval indicator workhorse EU Biotronik are in and progress the end XX and as ablation U.S. expect well enrollment our systems installing submission this complete partner as our have we gain made XXXX. RF commercial By Ablation the worldwide use trial systems the new therapeutic systems. update

we our enroll a ablation IDE as We study In in our our today, Czech first patients atrial Force study This also of of animal year fibrillation. for of one-year our XX mark we quality of addition a as patient follow our you given foundation field PFA milestone. to previously Also will apprised serve in critical patient from Republic. and application. eminently CE U.S. teams, our and our RF therapy, we the IDE keep enrollment study focus to end incredible of product this indication, plan progress. the pulsed will for involves trial up, flutter we our have ablation internal to discussed achieved CE U.S. the announced first and confidence had pursuing mark a and the by AcQ in of in this studies, first up physician enroll treated investigators, success our The

advocating single approval treatment patient deeper our a energy to device. approach format but ablation specific pulsed Catheter the guidance unlike of programs under We PFA, Sensing we utilizing PFA are focused competitor field are catheters, fast vast will that and This AcQMap essential to is with enhanced outside facilitates our program patients Diving by which on tailored a is to vein guide on Force on encouraged platform identification in for fast timelines, choice are into the strategy combined with to Ablation be delivery This deliberate be not so-called little approach isolation more majority enable as development veins, very yet of developments. platform line by PFA outcomes. are tailored AcQBlate we also effectively on approach to alone shot further therapeutic our the our of application with focal more system AF large with a thought pulmonary imaging longstanding providing fibrillation. atrial personalized and persistent a when areas to mapping pulmonary persistent of a our therapy that treat tachycardias complex target improve a mission end with to therapy treat

review So and in tenacious fruit summary, our is of careful reveals product focus very for bearing innovation our lines current the and on future bright a company. a future signals

become over heart our time. performance categories, are access will which We therapy strong important contributors increasingly and left revenue in seeing

slower than will training turn the for the and that, as on contributing performance. recent and mapping progressed improve factors expected, rate, an I teams. and to actively external physician as upgraded adoption our With has addressing business enhanced including to to Our the therapy somewhat we our update are environment software guidance experience well

due COVID to we a earnings access managing where three the August, were than instances, we country, including that as out. usual impacts, seasonality, well partly high Europe, in saw customers. vacations. seasonal expected have as resurgence, are have things how extended in During left long Arizona, The In lab weeks and many described COVID happen weeks. to the six last including found several where fluid, for quarter. of eight In operating COVID headwinds mapping U.S., cath than restrictions and Florida as staffing Europe played business of and risk hospital we where the very shortages to the call normal shutdowns, combination of as our concentration we this longer the pattern shuttered labs versus we as closed for in greater parts created Nevada, peak five and extended saw In related in broader to we landscape is exactly heart largely labs shutdowns

While we the of late magnitude to September, procedure lower than in the and saw capital was a procedure momentum base, installed sales and rebound lower insufficient offset in volumes planned disruptions. conversions

in here actively seeing and stability market we QX. general been have We monitoring trends are

in AcQMap Year-over-year decline of higher Turning and increased essentially sales a the and quarter compared an the of to procedure sequential seasonality. revenue good an to to second quarter quarter driven and prior globally year deferrals equipment results, growth versus disposable the related growth tied we was $X.X ended capital million, generated Systems. QX a third On procedure flat by COVID-XX volumes XXXX. basis, extended base installed offset sales higher of XX We with revenue. capital representing

strategic quarter, geography. the new certain During target to we the decision relocated with where or to users key position reposition utilization systems remove made below a and had

system. we looking us drive the where be extraordinarily will to U.S., the targeting In expectations. considerable simply we the that accounts focus higher we the human we QX we As optimize can of resources. grow system base, new adoption will installed cash does right to won't and where continue are new but our our This installations means to commercial mean our internal a our that make trailed utilization allow in also of we optimize in investment strategy, pace not install disciplined to placement, console

Europe hospital is technology centers. procedure support as seasonality number surges, a trends. access technology a patient predictable restrictions also rebounded of lengthy COVID from familiarity We in role installed saw in base the strong to and major physician and be to well as policies lab certain This throughput new have processes. post-COVID disruptions. administrative generally favoring we still as patient seeing backlogs Further, to In volumes clear are seems resulting of market limit regardless evaluations, play

We correspondingly access same fully management recognize this than expected. have severe regions, around, Europe volumes, Overall, in growth pods, while similar more has are major year improvement we Procedure high QX level parts where In hospital, on has told, a the our our but with in to a we in performance our the Moving we we decline accounts, accordingly. executed of sequentially discussed. call, and and by The strong had here volumes concentrated power versus across has quarter. the profile commercial initiatives. environment were on a our are what has am and business volumes proven not Southeastern own lower Central of in the Southwestern improved, the recruiting, saw on volumes The States. month-by-month concentration with All during encouraged business related responding At factors our utilization In are this to a quarter versus been third the at QX. what we pandemic we technology with a satisfied U.S. XX% global and representation. adoption This the are procedures, to areas. execution. previously not board year's Acutus throughout United headwind has have trajectory and quarter, performance and strength as saw respect led or last which the to procedure centered UK U.S. we we seeing that internal over stable external I team impact a procedure new the time, QX. have of take than Europe in

pace Going success ramp scale forward, patients. no and the initially shake likely we conviction drive and anticipated. strategy deeper provide physician, and our will In to value way this will our the expand also we penetration, The of long-term take to but account customers than and had the key model. is can our does longer replicate

mission and over As for large market. David happy differentiated cover turn to the our we valuable results. this to for the highly David? now I Q&A. our this long-term, And steadfast build it technology we in I'll to in be will company and in remain more growing financial this bring to detail

everyone. you, Vince. Thank afternoon, good And

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

million volume QX third third related compared distribution in As approximately pressure sequential Vince Revenue third of in both declined cath strengthen our $XXX,XXX XXXX. due revenues in million to some from $X.X conversion, capital through businesses approximately direct and direct prior the procedure were disposable a previously driven new of installations. Offsetting basis year's extended sales. partnership. XXXX Biotronik Europe $X.X from with quarter million businesses lower and capital of agreements mentioned, in for increase Sales lower in approximately of $X.X $X.X in of COVID-XX, XXXX. quarter direct our million the the million On our closures lab business up our $XXX,XXX to the $X.X was headwinds in by quarter,

relatively sales saw was growing their Biotronik for As any our of installed-base a in did negative the quarter, XXXX, long-term capital a of in to this and third non-GAAP the distribution gross reminder, through with proportion of relates reflecting this capital partners. XX% The in year-over-year QX. flat quarter, as the higher sales QX, decline coming XX% largely business sales year's quarter third third negative compared we mix margin business the quarter was with gross in markets. we not capital second Non-GAAP in convert to margin, XXXX. from full sequentially to In key commitments much purchases, of in register their our

our will several depend gross on of the which Going scale. forward, factors, margin is important improving most

invested in support to long-term meaningful burden results overhead a which and have are heavy today. growth, built We

business we absorbed get fixed As cost grow higher the volumes. across that will

Secondary among to segments. our and mix operating disposables scale mix as is capital, as product well between

related increase PFA Force was The program, to and period our year-over-year primarily public catheter, last compared commercial labor $XX.X million in such Lastly, million costs. development, we in XXXX, as components manufacturing yields, the third operating organization focused investments $XX.X in were can AcQBlate expenses we the the are spend. costs in operating on related Non-GAAP quarter sensing software intensely non-GAAP for expenses company year. ablation our and variables same control of with investments

investments. expenses non-GAAP we management expense growth a focused basis We our Our as four flat on have been quarters, reallocate programs. very resources the sequential to operating roughly fund past remain and on optimizing

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

Our balance the total was of of $XXX.X end at XXXX cash third the million. quarter

XXXX, like some remainder I'd further to Looking outlook. to of our regarding provide the detail

Over the today. about further provide drivers, I'll course talked consistently five sales year, this we a growth and of update key have

here second half first expect least we Total the capital on $X.X QX, revenue, we excluding the of first have already The year year. totaled million. first revenue sales. the and was the service million of is rent $X.X what in approximately QX match half based generated at in half and a to

is Second, yields. manufacturing

production We the back have majority to key lines meet resolved of orders in product and are volumes aligning demand. our

and as COVID-related have had we strength not in normalization Across several This in generated headwinds that disruptions most our a and our expect devices Third QX, recoveries. Fourth and conditions. assumed market further Europe, would crossing transseptal in we revenue waves launches. of new expected, products has and throughout and the initial materialized year, COVID $XXX,XXX $XXX,XXX Europe. launched guidance product is year. ongoing the portfolio U.S. and QX around QX. we this is of We QX in new in of categories dissipate These each AcQBlate product in seen about have notably

here rapid in entrants improvement results, In planned new addition, expected $XX.X a revenue environment observing the strategy key we of installed this technology The had macro restrictions remap earlier the to more in Putting base for updated discussed driver the in this reflecting year; our status million an challenging of all the are ongoing commercial for in a effect is flow-through with of one that this we've a Vince due on improved major we discussed. more execution overall and earlier commercial to the guidance. be new execution. range disruptions. hospital and market execution last and in drivers $XX million, smaller together, year-to-date dynamics than expect call we to the now the is detail included our

sales can execution. have and the drive environment closing Q&A. balanced to of facilitate which for and we remarks improved the pace turn on Vince the a to We stance the taken call evolution now at external I'll back the

David. you, Thank

product, priority proof left and This bellwether to our in points, system, absolutely replicate product entrenched reflect by deliver our a hospitals procedure, stands efficiency is access scale with able mapping start business The particular, success In it. hotly that I'm rapid on our pace. for and heart improve And that accounts tier line, view that contested, and team ablation our competition. at market procedural where top with Europe, and to to catheter, to their happening entire I finish our now results. reinforcing in is today, using results. is As more hungry system encouraged complete business this of the are is our innovation and where most the complete great

disruption a said not have the to be this are we in As be linear we company industry leader. building long-term will past, and

you lately, in tremendous seen Most EP. a press in heart notably access amount the have therapy. left As advanced in and there is of interest

very are differentiated our in by our mapping further in these bolstered pleased developing We system. technologies categories novel progress with

sharpening are you future We open areas in now the your And on appreciate your we'll on and key our We pencils to trajectory Operator? continued interest some call forward and questions. updating our calls. look to support.

comes from you. Morgan. Thank Instructions] with Our Robbie first JP Marcus [Operator question

line is open. now Your

taking question. Okay, the thanks for

a pretty the maybe Are people start it me, it do that's two flattish that IPO think the what has launch then. you Is Vince preventing much So, the the and buying is not year into over It's to data. doctors There's good since greater for aren't results? since adoption. been getting technology? been

I more, would just utilization, we’d is flat presenting your guess, then have more you some color. of and expected placements, love especially growth, what removal having, so that's lot I a some it unit So, have units

order a complicated to physician a and their regular to in is utilization start convert you’ve to and This everything get business and Robbie. ramp. gain Thanks, right got Yes.

I well we procedural fit And first to of targeted and be very we with and approach I think working and workflow we on great and some did ablating And there. early focused around philosophy diagnosis. who issue were how their were going their we’ve well in on expertly. their was hospitals results could we with, around the is, what the knew profiled and had

physicians We utilization. and seeing really we’re have and nice of tens regular where uptake hospitals

profiling procedural the other ablations? order and learning and where just in meeting was provide It them? in outcomes a that in technology new what necessarily of where and Or one refinement of and didn’t of match nuances up work to take, – we’re And number those daily that procedures, centers those And missed installing of different think them the journey accept these we we of learn aspects they some good change kind stay better targeted, into our going the to also of to and boat all I and are and understanding enough. Where doctors procedures. approach take terms might’ve certain their we were are those it to a steps really that of routine. approaches, hopefully do to in anatomical kind learning commitment we curve the the we really a does and were where committed physician does fundamentally getting centers faster were into where standard that places centers we your we they were? of in Where of wanted with terms

better getting at we’re think that. I

time, questions, and to the before ground. We’re invest much stress the those system lot early right physicians, a out effort, respectfully on we in questions, people on that better ask to we a we on process – so how install getting put the energy of clarity that have a

own them managers to thing get other When therapy sorry, I’m to onboarding onboard as salespeople in I better is, we our people. particular bring say and account on or have and – need mappers The managers. we

at self-aware those new role, and with how to kind at to hire us. a take in to we’re next and This role. people have it we’re think come has with maintenance, is physicians for level, learning manager, these not make into development a brought things is getting for to hospitals, that. these right and hand. groups process and account milk of after people technologies attract still the I and the physician changes that We’re And and savages, our and sales it job the This It pretty work we necessary, run, a market business a need have the take been team, about procedures. new approach time. but a attempt And we learning

much Where into to need we I what to how need need do think we coming And to clearer be? it? we it’s focus, do?

$XX-ish in sales question quarter. Maybe the Street sitting in and rate given year. fourth the Thanks. placements quarter that’s My guess for for for around is run David. million probably second high next the

So, given million that more good $XX a should we yet. haven’t $XX know trajectory? you of be Is sort next like guidance thinking I official something million, for year?

Yes. Robbie, for thank you question. so the

operating help you in But referenced. still will you key as we’re finalizing plan the of the some So, drivers XXXX that process our me on answer perspective your give question. let

our mission foremost, first as So, think focused patient as are improve as physician we Vince plan. and that that to own about of top invest and we experience transform to mind and operating as AP very outcomes XXXX we on our dramatically continue much the is look and steadfastly to well mentioned,

our at more a XXXX, XXXX, a than roughly of guidance than doubling contemplates a more little to look As when doubling. you updated compared bit sales

know, included performance. seasonality. we’ve you of As course, several headwinds, as COVID-XX as enhanced sales uneven And such XXXX the discussed

sit As about headwinds access very it’s such today, some whether volume likely as and restrictions. face direct lab XXXX, nature, procedure think COVID-XX, as we elective or were where hospital such we’ll indirect, those continued from disruptions, in you from

a and probably market But and we normalization COVID have I the of that is expecting the lifts XXXX from conditions. we something think that fully of XXXX today, sit looks kind where many predict like to cloud end of full premature. COVID and tried

originally our this the next as base annualizing parts – planned some about third given all install business, forward expands of our crossing, behind about think now business and the I of quarter. expands in we’re $X.X moving all for by installed base, kind be of year, a have the we’ll because when level the which million effect full disposable give referenced at the partially lower be annualizing in business late carry nice excuse terms the base, we will our as an the builds would And of discussed, March of year that, March. But in end launches given February, execution our that’ll year. that sales view internal you told, So, thought in work procedure be to on where a specifically will factors, user than product separate a external me, AcQBlate are probably XXXX our we’ll call, we which compared guidance offset revenue, which we’ve and with new very formal guidance, expands volumes, quarter early a fourth

things, and on just of increase had with we larger If of the about projected that, We definitely the and remove on install replace and we ground we a just still the team wrong base in had a commercial I not or of of plan think kind insufficient to than that and geography can follow are David, decision maybe or the installed XX, of base weren’t maybe to just, had meaningful conscious team commercial the make did kind place, very QX. painful moved or the in or the some number these a because Robbie, ground. consoles also I less our traction difficult, the one our decisions have in talked doctor, were you we wanted on – we seeing but champion to, reposition already

centers quarter that have and believe in I this this growth into we We quarter. five installed new up back will QX, ramp alone already

just we thing installed fact the I XX the our hard want The XX U.S., that over Europe, is last systems. reinforce partner to reinforce the India to about have and it’s ablation the of, Biotronik now months other and importance importance the

tied generator important us, ablation, is this day pump across also a the really gotten of the cubic RF is art Mapping ours revenue really we’ve and with potential ablation Holy about we’ve generator, stimulator. the not Grail very for is is know especially of as since force the integrated each So here, for a and intimately talked like unit, mapping just as kind board, and This the one system. to important. have when but other. state you system Mapping the therapy

units these in I’m XX for the doing I So I installed of for to very over to think get whole proud that. last kind that really bellwether the think focus of month, number a of on. team And important is us

Thanks lot. Great. a

Thank you.

comes Our Blair. with question William from Margaret next Kaczor

line open. Your is

follow capital I for what growth. question. a guys, and get Hey the visibility kind those to little of a wanted more taking thanks maybe is to good around of XXXX bit trying sales installed up on the to start sense based

on? early part geographies is next so those come back, pods the So guess, pushed six following on, power of guys being up on and sales or maybe, the nine or figure year, months your and comments around the timeliness this out and I you set out for so kind technology new as can and

Hey Margaret Yes. for thanks the question.

isn’t staffing administrative new as with evaluation are as timeline well in COVID those and that, of factors sit to industry. going be have that processes about to the heard something the of a that’s potentially on byproducts we And I resolved, think shortages today, do. visibility fine when about from extensively putting we some talked to So technology where respect you’ve we

with Delta count the COVID fully business, of our your is visibility right we identified have and nor not environment about To type environment of look a the we remain assuming very we as our pods we’ve together on. XXXX business reverting and have of the plan are elements concentration are Clearly a which accounts. is we of impact that put normalized or a seen we where similar have external XXXX, something dynamics specifically we a our lot have variant fourth right over to but would many what on we now, power So quarter not – full something of to staffing hospitals, point shutdowns do that for what in the start the – and to repeat guidance at recent past. the extended segmented

that so-called that or getting QX, doesn’t referenced of – year very as QX. is me, now. also are strong consoles. something in this we’re Then extraordinary better systems market to the see, through – new it’s if right similar, may mapping to as exit uneven. back of net four effort the this products five because expect associated We getting where this a available. to just are dynamic QX sustained but here pace hasn’t a year but end in But cadence would reposition probably set prudent year eight XXXX, so products the We installations look to our than normalized that is our some repositioning available. entire had it, dynamics in with seeing pretty we’ve portfolio are but The one where installs of you course normal just in utilization, been that just of rationalization system, a seem have our over in the of you the where XXXX, date we not is QX, at I were there’s year, This going the across installed a assuming year some broader be excuse can Vince in we going QX, Europe

Okay.

bit was profile from why are get power trying us and others are power than And Now kind we color pod. of around then, or useful? doing better kind about of had throughout any two be XX to perspective sense for, there for little strategy I fair a a or on you and And of a the questions. XXXX, that maybe those would pod other through two then enough. pods us pods to service One scale up those could effort as think further going and your of

Vince, to you want do take one? that

the how mapping just line. sure. talk to And on or I learned Yes, use table about product with question. we’ve have sure think and just a of we the What they’re the and is the between And are markets, When person, cardiology a by them and through, you a at the seen – required situations, physicians driving what would system, we kind to to that that catheters, you through hire I that a the that bringing do for screen, have on account, the bedside think the remind system. year skillset have, great other the mapper. are mapping and they do we now not I from we it we – catheter physical in and they is really say just new as access The alluded a user we them is is need an side, about certain and physician, procedure mapper heart skillset. you at not interventional on system what from of call. we one some have structural has that peripheral of looking really, out come sheath, somebody a the more number interventional so the beside learned, places other background. earlier mapping somebody things that there good a an left can go has What heart I that but there what onboard when this last typically physician world need walking of have of communication of a companies

So management as can we country the have we team, tableside able but the in or effective, and up of and as with the who to Europe team therapy pod, initially. understaffed up that drive if best been around mapper our you I We’ve the attract rockstar But to and pair you be as very a cadre think of also best that very, managers power therapy has system. pair we them you have them, a those. that think person we skills, manager, about call account you

The how this a look to thing that you the history decade, radiate going they time over brethren the that in and out at really the is our radiate scale in this well. those way decades evolved if to pockmark much as over from to with country pod of Is pods. power extent very possible the this strategy. there, the rather leaders more here industry, it’s think they cost the to or deployed kind business, is that’s kind second initial where last two be pods I of you radius of – effective than And

accelerator the to have are should that but scale we stomping we approach. the come I now to think center, on where are we we And are.

the about has is And that I get growth, kind potential accounts Okay, for year, XX terms that the obviously or new amongst to as one that are ablate crossing, well. as that utilization that great. in actually existing should those on at other just we of mean, think good units really strong, for that into last products? products the accounts the ready But that added good of in new been that could that next trajectory at two how better point this going

one kind is things I’d say well up can crossing, what really procedure, the whole procedure. septal first really and can you in if it of do do it’s poorly, a if the pretend efficient And it do the procedure. it you it you of Yes, muck

get introducing get you and it entry you customers in and the we and to entire point business. our philosophy right. our passion calling bring our if product to for So great there, It’s this that line company, card a

system get in hope think how for they to think me very currently I are our we volume list over know have septal U.S. we next year. in of our and see QX innovation here. don’t very when customers customers, and over on often that people systems half and customers a those are our high They our yet, of good to about they high half believe mapping crossing – funnel get installed the

for So terrific us. model a that’s just business

in the of we our U.S. things, not we for sites obviously of with terms trials we trials doing. out commercial are ablation ablation ablation roll yet, side the the clinical are In as

the night nothing terms do products, in suffer my And might it we most of trials the other are getting system. said sites technology, have stern virtually sites call my do not for crossing, our And generator, think when where includes we we procedure to are, suffer have, to RF ablation They In for going its model us of I ablation. majority to to – of has generator at absolute than You of mapping I stack we which therapy our that the that, closing of have I effects. resources. we Europe use system do or those already in I complete that to adopted highest line our – again choose be one that And and of our own the the take imagine we at where clearly one efficient large sleep the the that better remarks, to entire we’re sites state-of-the-art set don’t close products to Europe, mean, our mapping helps consoles or about force as to and as pump. blue and sites the aren’t going as have helps they’ll some look me and That’s stem be chip mapping, in that got scale fools. using cash be the that’s us. ROI accounts where the

guys. Thanks Great.

you. Thank

from from comes Canaccord. question Bill Plovanic next Our

open. is line Your

for taking And my Thanks. Good thanks Great. evening. questions.

either you versus have now, how a owned First versus XX evaluation many agreement. to purchase systems with just right under of the start or actually those use the in are with market just –

take do want David, to you that?

let Sure. a just give you. for Bill, second of me – the you for so back a

field commitment mid there is rent So in in permanent out converted units XXs. the in are that the are XX or that the either catheter sale,

okay. And then –

that systems. accounts. around, of continuation of at to either XX little about you the out that of out that? just do I new some of How on my kind XX. XXs we at in a goal evaluation some to XX-ish, been there It more those of How kind and of have of those those then, kind have want of versus this moving think ongoing gut we, I sounds have mid we're we about going at we rationalization some call have of So near-term? well the you and a should meet this so you've means And least sales, it start as to those while been think as the is of that year, like, the check with program rationalization finishing end

a probably We'd come fair in to quarter. I and Bill. characterization the think fourth a I expect more in have couple be didn't out here

For the some we of work them, of placement. convert obviously those continue balance to permanent sort to either will to

user that the them figure obviously at can have for as is to we ongoing as and proof us Capital goal drive we that but a to and a engaged drive base. disposable wants for well sense build an system and Our utilize help is the and such utilization. if makes a that significant drive strong continue utilization topline, we sales to points consistent clip, program will out placement

that's at reference. so out sort of of there, pool or look you So convertible XX the the that you that's

systems through We that's wouldn't convert a whether some But we or to that other upfront to the will and of placement, some sale our determined. model ultimately those placed. our revenue, with capital permanent administration that's ensure to way get recognize where utilization have an is work to that be an a ecosystem we facilitates create these permanent and for physician goal compliant to customers

account the their procedures through another are heavily are, because working different, as of at for say day each example, backlog well? patients. on the you this ESPP focused and perspective give These me on is end of Let Let's right? theses

they it's five If uses of and procedures, three, two, sees, but do of couple catheter our validated catheter like a month kind want yet. that kind use system one wants but champion four, maybe one don't than ROI the will we're his one with very different he allow okay colleague the connectology two with do cable doctor to think a that it's, let's the ablation I an doctor new the look, with to he we number a number common we're to months not pretty have There's that there. and doctor ablation delivering, next one weeks, likes. a a the wants catheter number good catheter subset in few There's use we doctor account maybe unlike a want. us. we procedures example it ago, but times Doctor not that, of what want one, really couple we we're number we where number they So number with pick to installed the right use,

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the procedure every volumes that we going that to necessarily So isn't hospital repositioned. at want isn't be

start they're Sometimes in bear those deliver we need and just us people order to that waiting improvements adopting. hug to get to for incremental

HRS which I that. bringing correctly. for catheter. think just about talked Vince, more Thanks out region I remember have for bigger if cable you the What questions. else we the back picture an I in two ablation finder software, a at the product Actually one first is automatic you're set, saw

gates out and bunch flood kind access. new things products brought any or up? or one to be continue mapping of you three What software, that the change the brought two a a of develop to there in need is As opens you that

just them some do shortened Well software and image made In deal. or didn't had those procedural standing some that mappers or interpretation region workflow big of some just suite, refinements that finder the we of XX some a of a in eliminated some the that cases, by we a We what go made took couple wait, And would which asked I cases steps minutes interest physicians we factor XXX. they're is while we couple tableside say in steps of is to our refinements same procedures faster. the to do, want a things. that

technical, the out. seem are, figure just they your using is what listen and out often customers, little like figure things them that's from kind of these us push this out that more So suspenders, overly out, to grinded is keeping but belt

ablation certainly on I to some out. U.S. incrementally and things Our amazing bringing in help job significantly team going is these just And in centers and help. to Having think the available an others. significantly is that’s going

Our trial well. is flutter very enrolling

have going our we or XXXX expect is to we've got We have that end in and well. Steven that process XXXX solid enrollment trial centers number do up running approval for beat flutter of the and early program approval; a McQuillan right-sided that Now certainly of the through by will help.

– Okay. medical my you provide So final for inspection watched device here, is they feel you would all said answered companies of over actually kind usually of and one that kind And question, that really there was time which it. growth? we've – point I think was, anything thing any as hit that or all develop we in that

myself Is starts the I is something going is ablation technology? line just and that? increase? step can ask that The think, You top It that really right. really it it function just, I gets moving, else what

X get AcQMap yet, and that potential the with the has other improvements growth the that as finders it rate. out we comfortable has with proven inflect to interest region out potential. the It's people of and think roll automated not I

Great. questions. Thanks for my taking

you. Thank

BTIG. with Thibault Marie from comes question next Our

open. of line Your

taking this first a here use QX question try my evening. Hi, thank questions Wanted the you for guide bit implied to the better. to understand to

be it and hospital you're front access should procedure more QX. know it you was of sounds seen it conversations haven't here, seems QX curious like be lower but QX, and these than maybe some and was should QX you yet in us in don't more positive loaded slightly quite could I some conversion if that? for understand environment that help progress of in why feels versus QX. I'm volume the normal that then than said given a improve likely QX. environment capital like have the I would As If we in sales expecting COVID like

question. Thanks, Maria. opportunity also this to Sure. answer And Bill's correct as my to an I'll use

Biotronic. units the and XX with our We of seven September have as you XX XXth, in field converted XX direct business in

capital flat-to-down amount step Biotronic significant in here lot second in through fourth from assuming good we quarter third revenue no had, recur quarter your quarter from to that So them of of a guidance see correct QX. imply you're not And the Biotronic. up largely a purchased capital revenue QX. if – effectively, does QX, We our does had did sequential we recall, are you we point a the purchases in a that in big from and capital QX QX, in

would the So our the we over magnitude single console so was years, past expect AcQMap third biggest the – two quarter revenue capital.

the could you to and fourth sequentially. tend be There year-end second down periods opportunity spending. be as with at to hospitals, correct of budget quarter be largest hospital an are the CapEx flush to You know, respect

interest. in very quite variety of of but counting our administrative of are We are in teams the and active has some And to our is to found factors. on is pool convert we is that in, numbers, processes What that are convertible not a significant in, significant. units very these the lengthy do with actually looking with

we you're sit as driver correct is in are here and for guidance. the in So we of that and assuming primary a the, today sales capital for in quarter down planning purposes purposes step the the guidance fourth

thank converted quarter? translate that David, the Okay. revenue. recall were tell systems understood, many actually here? I that. does you systems How during you how That’s well, many the Can $X.X us million for

In converted. the quarter XX systems about were

Okay. That is helpful.

large from strategy MedTech a company. that has quarter of commercial if hear away competitor impact me a to up the during my we Let acquired use saw of by kind something on follow here get or the then the you any conversation, some an thank that? or disruption about anything of do at Just have portfolio. or product to dynamics in all again. like crossing on curious Transseptal that underlying the sort you And part see any you portfolio, of Wanted

Yes.

last obviously acquired manufacturer it. there, side really a is for, of for large very, acquisitions Scientific Boston Ablation couple for have the over been a very think And of So large Boston there which disposables Field Scientific a number. number things and very FARAPULSE Integer a nice Oscor, a acquired the with I Pulsed recently quarters, acquired Baylis number. on just number of

first of Let area. is Field an Ablation Well, Pulsed me the quickly. I’ll two. touch on real touch those all three on

of we we have this Prague, And designed CE we the Republic. generator, Mark of This up, energy. is in with a PFA built a brand site from that a purpose announced company. future commenced important and PFA first extraordinary an amount trial a the invested We wheels new today have That time our is trial Czech generator. generator that extraordinarily for

the line in that better I just that’s today, We mean catheter think our FORCE pairing be catheter time delivery very We acquired our bones I is believe have is we when and today are procedures, $X.XX which these combine completed mapping our ablation at of designed, completed, is we system, all in PFA heart non-contact access the with that don’t with Sensing a kinds and our case my then we’ve change of catheter, with to of complete curve that point up is ninth give eight go with with going ninth Baylis ownership. perspective, I shot already for, well. particularly new today, eight with are which physicians paired excitement new we telling. we ongoing. as the and the that will I far to sense our single think also in under procedures, have first a then those is left efficiency believe system. utilizing all able you We mapping numbers and so Boston I do day billion. and cases ongoing the Baylis cases, it. who you Prague interest here with our the that approach getting be learning head-to-head of a nine catheter the level From mapping new on together extraordinary, generator expect today to I a our to we the are sit product

I you it that have unprotected with I And in think head-to-head physicians found called large old BRK we there. of being way continue coming do needle a, to a needle. my important the on that sort the transseptal kind Having this. focus market a be is, get number expand as slip of the a space a kind of, and fast, a septum long of very still career of said new well into bringing extremely crossing as able this we’ll Prague boats. do when it on the and into the tends new and and and and focus the technology, of safely rising as to And crossing that it result quickly a that all we of stream help, importance think rise renewed tide to a fashioned

of it. I any negatives if I, I out see don’t So positives. coming see anything,

thoughts. Great. Thank you for those

Sachs. [Operator you. question next Instructions] Hazan Thank comes Goldman Amit The from with

open. is line Your

Thanks. afternoon to clarification few I just thought that been things, a back Good come just a few have to on covered. maybe folks. to things

numbers, the on XX to your March. David First I on think comment,

of I $XX just that the referencing guided in roughly make you year think you about had at want to to one million that’s time were in I behind. you number were sales. a terms $XX to million saying sure

Sure, Amit.

March. provided you’re we at had that So, that guidance is correct the in

And initially had guidance We are we correct. for you any specifically issued. that not providing guidance are a but XXXX, here is

a what kind greenfield you’re the and just installed Maybe especially next an you to systems as and seeing we the of to about year. next. would expect on units trends Yes, help, of base just that base little that think install with grow bit

piece for we how the that, So, base happen growth pace, installed certain that that next you? there’s the year at but evaluation we in the think should about will know a

point the base time. install under great in gamut generating revenue of are just are question. disposable to a And that those an because counted generating those they’re just if not they also range our capital well, it’s revenue. important and – are They to evaluation are of clarification, Yes, units evaluations first,

months Some as long as of short as as and those are three XX.

are in all are though revenue our generating. those reflected So even the not base, capital units install

we of year or be perspective most the effort in our netting the that into base, the gross would, put by So increase XXXX. from first complete to install in of of repositioning end it this the should against quarter is

So would installed significant more, net in base. probably growth more expect you our

of year have significant at we through the sit we you our As XXXX, XX look will ended evolution we are I last XXXX, the, XX, here think today at had of some as we kind pace if with install removal. probably we installations we in base,

So some removal.

We XXXX. give but that, at would net So number. specific net a level of prepared installed growth higher increase that in you look to the expect next might you aren’t expect year, a

assume XX XX of five we next removal include range probably year So be to that, that down the year this excess a end in year. will if to And you XX somewhere net to to expect XX in to the pace of would XX units expect, would we or next net net increased removals so.

Yes. That’s really helpful.

given one you, considerations you with stick on here, change is of on cash last changes whether just guidance, maybe David, me, some Just your from just if the burn expectations just Thank And just kind the of you about, and much. this and at expected earlier resources given think the, in might have the all how, than reallocating you lower all. ramp year. so it

Sure.

expenses material a impact evolution what’s operating our, anything commercial the than So ramp, at business, in interesting have our at of in more burn cash our, actually much in point else. the our at on this

several reference of size R&D So remarks, $XX.X I And expanding sales whether we’re programs. several very quarters. have looking use where expense the and bouncing and development looking operating over investing right operating do, corporate past our kept past the we that key kind research investments? we and $XX-ish most They’re, quarters last, where cetera, as infrastructure, pretty that’s So, our where, of not giving around at manufacturing, the prepared to critical now, they’re my are guidance million in range talked organization million this and commercial while the marketing, while actively we investments, highest effective in and et is across of priority expenses. about those

portfolio investments the for looking are self-fund of we of our ways sort So today. OpEx to within

as had outlook the about profile, think middle XXXX of the we guide, raise. updated last said updated So still cashed XXXX. are of the recent our to takes through had quarter I total us say the we with we first on sales would with cash call, burn We respect - we think most through the

you. thank Great,

Thank This participation. your you. conference for today’s you concludes Thank call.

a disconnect. wonderful You have may day. Everyone now