Treace Medical Concepts (TMCI) 12 Nov 222022 Q3 Earnings call transcript

Good afternoon, everyone, and welcome to our Third Quarter 2022 Earnings Conference Call. Participating from the company today will be John Treace, Chief Executive Officer; and Mark Hair, Chief Financial Officer.

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

the would that remind during all will protected we is that today's begin, Reform be intent Litigation our forward-looking under we like XXXX. you to it call Act Before of Securities Private statements made to our Any as of future as results or performance or events statements expectations predictions market and that trends statements. relate estimated well are forward-looking statements current assumptions. estimates forward-looking and our are upon based All various differ or from risks material uncertainties could events and by to results forward-looking materially anticipated These statements involve these those cause that implied or actual statements. upon All are available statements assumes forward-looking Treace no to based statements. current these information, update and obligation should not you statements. on these Accordingly, undue place reliance year to quarter March X, XXXX for Please SEC presentation our including XXXX, the for our a and Form risks. XX-K third Form detailed XX-Q full filed refer our of on filings, the for With John. will to the call that, over now I turn

third quarter execute strong positive our you, through, sustained conference revenue call. afternoon, us Thank Good resulting momentum Vivian. the on we and thank joining X and plan XXXX in of with investments earnings our gains for our growth beginning in strategic our operating increased first XX% With our quarter, metrics. XXXX. and operations you steady increased continued key poised third clearly the carried in everyone, In on delivering the to scale in our XX% Revenue in on are quarter growth, months QX. to

with on our Before I summary start about go market let's details we quarter, stand into where the today.

specifically and market. the and large bunion disruptive developed underserved correct of cause address Lapiplasty to Our solution the was root a

surgical in surgical standards X.X penetration care. third of each mainly surgical candidates, with third bunion associated approximately XXXX, market approximately U.S. U.S., annual undergo annual due and We from annual to X.X% estimated U.S. quarter of million the candidates. bunion XXXX, $X limitations have million XXX,XXX market of X% identified billion addressable the of X.X an of which In the of year, the only quarter in up procedures we reflecting XXX,XXX surgery of penetrated the X% current

results. representing XX% growth the our quarter to quarter in was QX third Turning Revenue over third XXXX. of the $XX.X million,

we average target team, Therefore, release a utilization the QX, year-over-year due bunion-focused our in Anatomic pleased our QX, early in with representing prices blended per growth our of with year continued SXA up expanding our adoption in trailing and steady which extremely improving case, utilization tissue benefit specifically not our technologies, kits progressed. operating ago; per instruments. our as positive well selling and SpeedRelease complemented from Correction a QX for year. quarter demand key increases Mini-Incision and with but commercial strategies XX% trends Strong, increase we're up strong from top QX ending Lapiplasty new benefit trends During the System, only increasing and $X,XXX XX.X in of our surgeon growth recently X% sustained XX-month over to sales kits to X,XXX metrics, our users, System year number also coming in of our from XX.X year-over-year; and from surgeon Adductoplasty commercialized Plating the continued very XX% including Midfoot line TriTome active System direct surgeons, revenue by of prior surgeon for XX% accounted ahead with of mix, the our of investments

pleased early system very are plating Speaking we've SXA for market. response moment, in the a with our we been seeing to the

conventional to our that are converting we surgeons SXA kits anatomic fit because plating design Specifically, of system advantages. advanced the are its from and seeing

giving our SXA over awareness versus contribute Investments our and strategy R&D are scalable making to have direct plating that have positive the the our a has expansion blended revenue growth. momentum. remain impact business, our about growth fueling our and bunion-focused trends confidence continue, as patient our time sales systems. targeted on and these conventional well-defined, in adoption excited of potential investments commercial price As proven this supported carries positively ASP channel we premium us innovations believe DTC our We to we programs, a

positive are these over now to XXXX our increase raising full $XXX activities. to market Given year to trends, revenue. million development an of and million, which XX% Shifting commercial revenue to $XXX our we XX% guidance reflects XXXX

coverage goal market and education direct targeted for the expanding channel; previously demand patient making procedures; into penetration innovations the bunion-focused investments advancing our sales As other footprint year and been discussed, our and by this awareness, related the we've targeted our of more R&D surgeon of with increasing and marketplace. Lapiplasty driving

of TV awareness employ surgeon We designed surgeons patients in social Our strategy, media, their Google key physicians. data component are information to We patient targeted and with and campaigns, been media, and patients asking visiting have from relations highly surgical surveys. patient our strategy solution, more a active to supported Lapiplasty conducted public our including encourage Lapiplasty on performance regularly we and and further while have metrics show initiatives are for feedback and, search, bunion other patients and a more a differentiated by their believe that engagement strong commercial DTC to effective locate seek schedule consultation. deformities ultimately, educate DTC market

training to procedures, surgeons in-person, and well continue surgeons surgeon and education advanced advanced attendance can programs Our such where be skills online demand. tenured approaches, strong during events acquire our strong and to Likewise, by new received. training our our training in continue new show events, been at both learn Adductoplasty Interest our mini-incision XXXX. also and have as

new in same XXX represents users first we programs of the indications. effective surgeons, surgeon last role increasing skills months existing surgeons Through of to play year. broadening XXX their in a key of patient XX% compared a onboarding active XXXX, the and period X surgeons This the Our increase. education added

New in heavily which national event experience continue high training was by evidenced most Orleans, to oversubscribed. our We turnout as recent

see user encouraged our steady are to We gains base. surgeon in

XX,XXX includes who our one quarter, least in ankle which the penetration foot and third bunion months, base, the surgeons surgery the perform has surgeon XX% at performed achieved in who surgeons of estimated now case U.S. trailing XX the of active As

awareness on As educational to well look in use first-of-its-kind further held headquarters company in by our have only now base for group continues focused our some as portfolio This where we patient Vedra also included was expanding our gains, some group hands-on and at surgeons a level of utilization post-op surgeons Adductoplasty the experienced surgeons. expanded technologies, not direct mature, our for training event supported of future Lapiplasty didactic system all held Centurion ancillary lab Lapiplasty including most increased of The sales our and patient our education also Adductoplasty event Centurion new training channel with reviews of hands-on pre- with and represent weekend, master's products, Ponte Lapiplasty forward management, educational This designed adoption country. interactive events. surgeon as challenging complementary This to of micro-incision techniques, larger and space systems. we but of research and advanced of our we cases our past SpeedPlate our event clinical initiatives. and growing and in

a look the as shared enthusiasm community facility all surgeons to high-level the well for to a state-of-the-art evergreen passion of to growing surgeon pleased to desire future. unique their is the honing network attendees country, as across forward training their by are they their we improve for Lapiplasty We effort expressed this see interest training community. learning the skills the the attendance the keep and surgical in hosting a with This We at continuously Lapiplasty and of provide meeting patients. to provide knowledge for new advancing in an with care in surgeon events additional the our programs

channel. our sales direct now to Turning

represents We we're penetration. a growing rapidly in med of the XXX% contributed our related one and at a midfoot industry. on meaningfully market has and believe team force, surgery highly specialized have only focused organization such revenue We the this sales bunion to direct aware that tech including is Treace, and

of We by to On to to strong that exceed in year-end and target, interest from we continue technologies third we our direct are reps. and anticipate our culture XX% transition invest joining sets of up XXX programs. from the XX% with XX% third generated to revenue believe Treace are our quarter came direct to of compared reps driven employee and because XXX unique new just of the a time. direct direct education team our sales sales increase XX our year. our management, third fleet sales XX% well quarter, quota-carrying exiting data reps year-ago. end team, quarter XX% by employees approaching previously employees revenue join a quota-carrying ahead our expect ended the and XX% and direct year-end quarter in the at in backed of growth we over profile our clinical the reps, In the by XXX the year in continue strong sales these last goal of This of a employee sequentially supported XXXX. up higher candidates force, We direct second associate revenue market-leading innovative mix reps, the sales communicated our increased surgeon field and sales clinical XX% XXX now to specialists patient sales also by and at We from our to the had end Including from was sales mix.

beneficial the from impacts sales experience our to direct continue We team.

Our sell on that utilization generate reps, blended direct and analytics average, penetrate higher markets at faster, surgeon higher levels our show their ASPs.

focused products reps our and XX within of typically corporate Our scale cost suite exclusively leverage revenue fully they're to XX programs. our and and resources with significant on utilize achieved months, because full primarily direct

our to strategy. now Speaking development product

next-generation through advanced is further to This X-centimeter related Lapiplasty the driving innovations. This enabling of our as with option midfoot our small for System. insertion both procedure. R&D technology bunion IP as with broader systems an our bunion-related serving fixation ancillary team development designed to products new defense instrumentation programs addressing have for allows our of committed SpeedPlate and procedures the fixation exciting At we industry a applicability for Meeting incisions, and patented performed with or other maintain through as to leadership AOFAS, Adductoplasty patents September, U.S. patent correction both incisions. platform innovation this procedure pathologies as well Orthopedic the our Lapiplasty Society, including an and procedure and highlighted our implant applications product and technology an or & dissection granted be reduce end evolution the XX of And We pending. new to for smaller designed the well. platform, incision size U.S. micro at new over Foot tissue Ankle had Micro-Incision American is two instrumentation Annual the Lapiplasty in XX of rapid innovations QX, technology We

is and availability FDA reminder, As in of available pending FDA SpeedPlate anticipate not under XXX(k) of the review the these initial a first currently half of We the within clearance. commercial U.S. for is both sale with XXXX, the technologies

the to We potential micro about benefits are this patients. could combination bring Lapiplasty-SpeedPlate excited

with smaller faster tissue swelling. As procedure any that pain less incisions this dissection, we can less less believe recovery translate with to and even involves and

reimbursement of implants cover recently our for final XXXX rates for services CMS outpatient ASC terms surgical facility which for includes costs the payment hospital for In to products, its used Medicare in and case. released rule procedures, surgical

reimbursement facility reminder, products and January. experience, rates mid-single-digit have XXXX certain continues to and are on of as providing and finalized these new supporting This we the at for increases mid-single-digit IP, codes, patient in for pleased We product codes our covered we penetration. a to continue to well-established used additional market in multiyear our innovations core a low As develop to user look codes associated by reimbursement increases trend on aimed effective centered the note updates our our rates with technologies outcomes our improving surgeon with CPT been that procedures procedures. pipeline continued are forward

Conference, a in an key differentiating marketplace, demonstrating commitment data patient-reported interim new and recurrence with business bearing we XX bunion months weight the Turning industry data the procedure. X.X our announced Again, interim ALIGNXD boot well with as and strongly days; study Lapiplasty. with literature in pain XXX evidence, quantifiable we're and lives, rate, believe believe On based driver demonstrates rate higher rates boot mentally clinical growing NASDAQ the at walking, would a at Adductoplasty company and study, with following further of not patient with an from and of product, loss is XX% patients. well, the demonstrating interim presentations XXXX reduction but of patients The unaddressed. our of the highlighting positive on bearing of September reported Advisor to walking level complementary visual VAS; is average present body meaningful of to radiographic patients previous or we York. positive additional held corrected, with developments we Building the procedure. included low and leading on where participant and coming correction At in Foot are Surgeon ALIGNXD follow-up upon and we outcomes resonates and surgeons XX XX, XX% of a a respectively, return MOXFQ, site interim prospective early up standing reinforcing multicenter the to bunion From at clinical XX% believe highlight scores and scale, both Manchester-Oxford A our following want interaction that as significant we an walking from we systems. our surgical market two only and differentiated can clinical a the to observed that patient-reported patients rapid patients; interim study Lapiplasty significance is commercial it's only through as analysis, demonstrating to We adductus, expand demonstrated with AOFAS New on see data at offer to surgical of return which data our Annual in midfoot, within bunion the impact for Lapiplasty like quarter. months XX-month loss data the low least participants a or clinical patients' socially a the this but in of at that our given left resonates of in adoption weight bunion radiographic clinical coexisting the first our XX only Adductoplasty analog of outcome social to and synergies by in bunion positive to post communities the is Lapiplasty recurrence midfoot clinical known defined believe making on two to scores, correction, metatarsus in surgeons and the data. correction scoring X.X% we of what procedure. Questionnaire, improvement XX% on I is rewarding event the see data out validated physically, from deformity and surgeon these innovation. procedures I that event on deformity this the data evidence now five recurrence market

Just an system as challenging the a same reproducible Lapiplasty broad transformed the follows We, has technically deliver for believe and foot potential and facilitating an now. instrumented freehand into system by challenging ankle the we results again, operation the to bunion model. offer freehand unaddressed designed left to procedure Adductoplasty the another largely adoption community, operation reproducible surgeon that first the midfoot instrumented innovative for been yet of are until

bunion-focused approximately of market Kiernan. business. of gain all Adductoplasty activities, products, been on very Early expert they interest We that, on helping A into is is direct we fully and for believe model also are awareness we revenue In to strategic balance to our phase commercial, initiatives our by average, and are up our to and recent their commercial next talented team accelerate direct-to-patient the and by to IP, Contributing strong into medical first-mover new the Adductoplasty channel a DTC surgical companies our sets that I'm penetrating, device increased supported Medical industry's surgeon sales adequate formula execution indicates their product and proven surgeons, account through and offers rapid using mission correction feedback a a combined shared clinical Adductoplasty valuable promoted over of to training, in our our data disruptive opportunity and growth. surgeon $X,XXX I Lance standard planned of Lapiplasty only positive. specialized now is represents development plan significant and opportunity to and training by direct performance. Their fund sales related about our With financial driving patients new to closing, and a Treace employees. as market outcomes for Board. Jane survey sheet decades be our of with we members, XX% that We've turn Lapiplasty pleased and the Treace bunion Jane around perspectives will differentiated A developed leading Board supported initiatives, user our excited business technologies trends cases, and reimbursement for patient and passion of anticipate advancing clinical midfoot data we driven bunions over to will in long-term a all has review of improve focused care procedures. design of centered bunion-focused profitability. awareness the programs us are force strong supported Lance to and finally, backed Berry of us a take and Adductoplasty patients. XXX clinical surgeon deformities. innovation, experience education our call and our in all that incremental to by scalable positive in that additional fleet that, brings the specialist introduce two employees, the Mark? approvals. And strategy Medical surgical Mark are welcome applying executing

everyone. Thank increase increases increase in an volumes technologies. by $XX.X you, price John. adoption new selling XX%, our $XX.X Revenue was up to due million, driven representing of the a ago, average million annual an third procedure in blended from Good in quarter afternoon, year of and

who number the least estimated procedures. year XX% to case year year-over-year the an Surgeon surgeons, XXXX, XX% active the trailing XX bunion QX. X,XXX of surgeons increased from XX,XXX at quarter a to is U.S. perform revenue average translates an to in quarter in performing increased Third XX.X which one XX% over sequentially penetration notable. months In of third cases per XX average ago. This of of utilization cases increased up the surgeons

reminder, And active X,XXX we've added X past active in As alone, commercialized ago. years of base. a nearly the Lapiplasty total X surgeon years we XX% surgeons, our

We quarter. increase quarter outcomes third in a steadily practices. in price Lapiplasty the use surgeons selling by procedure each driven early the our number third newest they increased their Lapiplasty the prior XXXX, a in X% positive adoption systems with on versus XX% utilization X,XXX over of plating year's to growing impacts Adductoplasty kit, indications average, Blended patient sold was our are this third instruments. well and Lapiplasty SpeedRelease from who, and We quarter, expanding due SXA our year the kits and pleased $X,XXX, as average the of TriTome as technologies, increase

expenses in to fourth We the channel, these as expanding and expenses was demand and of expenses sales increased expenses our greater quarter XX.X% third million, increase other $X.X development forefoot gross XXXX, million sales quarter of bunion-related competitive seasonally for of as XXXX of $XX.X XX ancillary of to well XXXX. This investments and increase our of forefoot operating the we and an of and products tend which see basis compared margin continue related of administrative third the $X.X complementary compares operating $XX.X of who in of and expenses depreciation and third selling includes uptake million. ancillary other capacity strong quarter. anticipated development general more was to The Total our part Gross expenses total other strategic point support surgical research operating sales products. in increased due included expenses expenses quarter in typically sales well and expenses research for were $X.X in in during XX% general of seen our XXXX, quarter reflects direct marketing third and in commercial requirements Lapiplasty innovation, to $XX direct which new displacing decrease the marketing instruments cases, of in capitalized in million. in million focus or on to million $XX investments products million reps in and products product $X.X The administrative add million, as initiatives. margin

cash Third of per $XX.X as to share was net quarter a loss Cash share period million of September net or $X.XX $X.X compared XX, loss and XXXX. for million equivalents were same million the or $XX.X $X.XX XXXX. per

outlook. our to Turning

we With to $XXX strength strategic our force This million line to sales revenue. revenue $XXX year are beginning that, $XXX John underlying XXXX, remain year full the on revenue million. $XXX over increasing our compares P&L, to investments our as operations growth. momentum we productivity to XXXX For to for an operator XX% our in direct to turn as the XX% to million, scale million guidance from we prior business, in open of mentioned, leverage call guidance me Therefore, increase by your encouraged full as and to gains in clearly with XXXX delivering of With our over the well our let the questions. our QX. expect raising

[Operator first Robbie of JPMorgan. question Our from Instructions] Marcus comes

open. is line Your

Lily actually base congrats on the just is Robbie. and so your substantially quarter. for taking Thanks Maybe start, good you've to a expanding surgeon pretty been This question quarter-over-quarter. Hi. for on

just the those how and level in would of versus in experienced between So existing talk And ones? ones. more penetration the you Lapiplasty in of accounts could adoption share new maybe if accounts compare newer some penetration driving about how deeper driving you're you in balancing

Hi, here. John Yes. Lily,

team, Lapiplasty. are training building we are new on getting then them and the Especially initiatives. I we are working And with relationships. those events, And reps surgeon by brought the fronts. addition indications to advanced can outreach and going patient on tenured think as sales surgeons going The downstream where time, on focused doctors bringing impacted also will reps by reps other of to to the new our over both we also be their courses training learn existing, new are to up aggressive of our broaden with they're users more users our well. side deeper our

bringing with fronts, increasing working new and user well. as both on I existing focusing base on on our utilization So we're think users

We've year sorry, Got Lapiplasty new expand with seen follow-up. just helpful. other meaningfully pretty over a some so Maybe it. portfolio last and you your Adductoplasty or the products. That's -- I’m

So sort seen bigger? seen gotten the have of effect And you what or has as have Lapiplasty on halo the few adoption portfolio Thank impact have you. last that sort of had that you over quarters? any pull-through

Adductoplasty, Yes. for example a Great instance, is question. that. great of

We in are surgeons seeing seeing interest Medical in both Adductoplasty, the the exposed and OR they onboard case, it reps Lapiplasty, and do interest in portfolio include time. lot And a rounding offering and of just in having. training new two with Treace overlapping over into efficiently both. other products presence of by hit in Having to get are out effect interest and utilization general training surgeon job that start we those products plays surgical then surgeons the we and nice our in events surgeon that some to ancillary are to very develop other I this technologies our of coming Adductoplasty sales in to with a them our the relationship really to think a of with as able

by having new offered. definitely are these we So compound a effect technologies having

you. Thank Great.

[Operator Instructions] Drew from Morgan Ranieri comes next from Our question Stanley.

open. is line Your

puts anxious going Mark. know like a as for to this congratulations quarter. and tailwinds higher. talk I you're you're I any moves about just questions to at to XXXX, nothing and great but tremendously but about of framework be kind starting you're taking with Thanks that we your takes, Maybe have you us guidance quarter, next any growing the help to mean, I just you be think mean and John should back. Hey, can just on start, it considering? seems year,

now your considering updated And next guidance comfortable looks should growth of it's just But it moving any we of $XXX kind Looking about year. at for consensus, maybe you pieces XX% million, number. there? be like are just implying just talk

We the build our Thanks, QX the a all, John of efforts the lot channel, our Drew, direct are that I I great question. innovation. is, with product of DTC first pleased really it initiatives way about really and and appreciate place well, put sales we working some and the have thinking been results. the topic. are Yes, in of new of

and are pleased we into for prepared quarter bit where right It's little to we we're poised positioned really middle into get next are, with scale, mentioned well to year, tracking that expectations XXXX, we've early in year. biggest to the remarks, our So we as we're this a that right now are But we in well of here. season we here. next really when QX like ourselves as large said, really really going feel as our

but and in the we more we QX the we we metrics. time, really positive our earnings of into will next utilization, poised positioned will the about And time. next specifics more we provide but growth next surgeons, are. We specifics the about get So call all blended ASP, are for good number year, feeling like really where talked so feel we are

like sounds kind going likely leverage maybe we you. the a more now Thank reps in should above it the on just [indiscernible] broader scalable help force And see going sounds it. you're the by to the about X, next Got fourth quarter. XXX in a year-end. be of in just it being how sales little But come this about side, context thinking build maybe put XX talking bit business, over to you're months a like But even? of

Yes. This is Hi, Thanks. Drew. John.

rep. and going out we're I build that for I per what's very year, that continue been program on happy build right a out we've what going think very seeing looking surgeons next this year. additions, optimum be think we're And we with with is of to to to and these aggressive rep ratio new we're are what

really will And scaling. year our next starting take and then, to some channel dialing are invest growing beyond, appropriately. figure we We that, 'XX in and we obviously now, and that on keep see to continue it are where will but it really, into well we and out efficiency to just in direct tuning

how these maybe last in missed but the me just the Adductoplasty opener I Got of asking might product new like so? could But a expanding following of XX is -- having surgeon it's thinking question product, penetrated but surgeon just It you. I up been more some penetration in over this sorry, quarter. as these of about not a the And you. question, have about I on, kits of for Lily's for base really Mark, newer I'm just procedure kind think XX% door sounds It or impact. today, barrier curious and before should months you're think XX% it. housekeeping a earlier. we kind differently, by one this maybe Thank next think, this you're launches, And how products the

Drew, first and I for Mark continue grab side procedure to are with we of can number But the think penetrate going you Adductoplasty. get to Okay. will I here. kit the that,

blended ability We a seeing trainings. hindrance, or having had the first really to on really Lapiplasty existing we from say supercharging of the Treace wouldn't of time we coming barrier we then in what midfoot. a of in breakthrough but a in it or base. Adductoplasty with surgeons have procedures Adductoplasty procedure, It's top the it and to so ballgame And We really that. more early Lapiplasty ASP. portfolio of interest impact so in adding having surgeon are have both challenging $X,XXX this our Medical. are tackle I current, really as user on like cases, every was And again, like of Adductoplasty, interest that another Lapiplasty a the as not deformity it's these its kind our is innings tremendous combination compound within our and is

in excellent And will we so with that and make X these giving And employees frankly, our so and coupling cases relative, doing it's advanced is X, feel then be been and training The we Lapiplasty. on curve and tools, they first they Adductoplasty pretty are smooth. on go quick specialist offering to just really learning really clinical that it are that confident surgeons' enabling unaddressed. there X, go sure the largely

that we can are and on Lapiplasty, never Again, but clinical doctor with the the it's So uptake the add-on of capability volume the pretty to solving problem going be this. really really we quick. it like happen

Andrew, quarter. X,XXX with procedure in to respect the we kits, sold

XX% increase the from So prior that's year. a

Thank you.

of next Ryan question Our BTIG. Instructions] comes from [Operator Zimmerman

Your line open. is

in Hey, to But sorry for on Thanks a on John, recall, little time near-term great ASPs, quarter both and year of try cases will, spend the see more think well a you fourth as the bunion getting and in ASPs questions the to good surgery for quarter about done. I we deductibles earlier variability that and I your the if in doctor want a about benign seasonally, maybe kind bunion, you and just quarter. as patients achieving we a of taking But question. thinking ask, afternoon. bit, if congrats the due less metrics. lot their fourth maybe

elaborate just fourth case of or could quarter think index your you in product I'm we can as mix And wondering in so mix look the like if your on quarter. about kind what fourth ASPs the

time, blended being quarter-to-quarter Ryan, ASP Yes, for lumpiness about, but, in we to over right. quarter, the our question. the upward and Yes. thanks talked some last maybe

seeing But the today. are we QX. That strong, go dampening continue I the from get mentioned effect high also I where a not kit, would QX, momentum maybe now, particularly where of and on products use compression and up to and right patients, a and that into a good, think we having but in blended and sit ASPs premium things as other our you are our they'll expectation traditionally, think going of maybe some maybe ancillary November see private bit right as in blended little our here We Lapiplasty ASP. more make flow to to trade a and December, that I to off in ASPs be we this Mark

what color. of look to at some Maybe John. the expenses, this thinking in about I that good it's appreciate helpful, on maybe so John, think to But sales if a could, think And of those particularly kind scale just and and came kind if just help you on of the really from means, think spend through you investments kind how forth, you're poised about I the P&L scale. P&L Mark for investors. poised for little to relative and note at line and operating were to turning comments, kind bit, being what making. very appreciate of your perspective, to That's the to marketing us we of where quarter, a you

expansion and here. talk more a about those something our our growth had talked we facility all infrastructure operating prototyping, over that in there's needed into those we Ryan. years, That's Thanks, training, can of some sales We've the lot good that build do about needs. talked R&D growth where perspective, the warehousing, investments, things, regularly a there. an a couple the of of Yes. and development a From we've the question channel, of we've sales of of last the lot about also

investments, so of reflects will that, from And kind a but that we perspective. that achieved we've increase, level those forward going a perspective, believe from G&A this moderately of only some and quarter

as But and the We the talked where a next will product perspective. building XX major we so from course, investing that course kind place are will kind into of continue R&D on in be, taken hopefully, last the lot levels of as well. that and months. focused about, of line marketing, think G&A that think to we XX of But continue invest John you build, well. so about we in the as sales helps are the more really And changes development, over of to a and I have will year

getting we're that steadier closer state think I So to level.

congrats and again. Okay. Appreciate that,

Thanks, Ryan.

Thanks.

Wise from comes you. question of next [Operator Instructions] Rick Our Stifel. Thank

is Your line open.

Thank apologize between very calls, asked. question much. I been so if my I'm jumping you has

seem to Thank seeing of do be that to topic, sort think around a you but of are it's a you How from whether you just companies, one had you. wondering, quarter, the and you But silly, other brilliant congratulations. continue consumer you staffing obviously get or talk shortages asked maybe kind about don't kind don't hearing complicated or -- if seeing another and pressures can it. kind immune of of you just mind. First, could And time? it's be this I we frequently the in

we Rick. That's prior there. not from different is our executing are our a chain what macro Yes. the Thanks, topic said that a But company, as company great are topic. related these immune we here plans, playbook. in really strains, some supply conditions focused or happening And COVID quarters, as as of out are we whether a strategic our initiatives to was and on

that, And so items our that continue those have to focus heads we do on we are keep what really going over. to down control and really

it's so working And far, us. for been

So company we force, doing few sales same areas as to companies of are those that over we a us. a stronger have are we will the return we those that other we all strategic learned but last for believe to work as things are see we've seeing, things years continue the in building that the us, invest

that focus far provides where color a hopefully, as So little our as more is.

apologize -- little I view. wondering talk you Okay. came field launched I And hear I'd of products missed expecting year. of I bit. what was out we you're was penetration, expect, pipeline are an could to be about and sort that But could a you if number a left say, you've missed a this your again, from had opportunity. if more as you little it. what with in I of the Adductoplasty where curious

already offline. you talk can talked it, it about about we If

quickies. John. hit Hey, Rick. a of couple this Yes, I can is

innings the of I early very cases quarter, of lots think and Adductoplasty on, of conversion early getting every the we more all, more feedback. are in interest, opportunity, first great

upside for but that blended technology, several look as very in they're sells dollars call, we'll those recently next-generation incision to a system, with on go have used about forward. micro-incision instrumentation is for really impact continue the quicker we it's platform, a the talked it adding that to, those earlier at plating fixation our technology Adductoplasty as kind price. that adding release has And smaller then the tissue of we Then see from X-centimeter more we And are as then procedures SpeedPlate cases good in number a nice, already. Lapiplasty patients. for through of hundred but potential which And less a rapid. doing think, recovery and into we it's uptake or because released, platform could very SXA micro midfoot system, is ASPs early, been Our Lapiplasty, premium to just the well. tools, our be XXXX, and swelling also our enabling can the It's

So XX a that XX have as kind that, rhythm we've months. product go pipeline will through development months, internal next got of new we of we introductions robust a steady pretty beyond the

Got you. so Thanks much.

Thanks, Rick.

at Group. Relations back will Please Thank now Gilmartin go to you. I turn it Cervantes, Vivian ahead. Investor

update and to joining On concludes a XXXX. good our of close our quarter we conference next operator. for on forward you, call. you earnings thank Treace following call, everyone of our Thank us look behalf quarter the Medical, third Have our fourth night. This

gentlemen, Ladies concludes today's this and call.

may You disconnect. now