TransMedics (TMDX) 1 May 232023 Q1 Earnings call transcript

Good afternoon, and welcome to TransMedics First Quarter 2023 Earnings Conference Call. [Operator Instructions].

I would now like to turn the call over to Brian Johnston from the Gilmartin Group for a few introductory comments.

Thank you. Earlier today, TransMedics released financial results for the quarter ended March 31, 2023. press available the website. the of copy release on is company's A

question-and-answer forward-looking are we remind Federal call this relate results statements the to I'd Securities events, call, of future to statements. that that during Before contained like that make Laws. you Any begin, in meaning within statements the management forward-looking statements will including expectations performance portion of predictions include this or during or

statements results the for trends, commercial uncertainties limitation, financial guidance could are should our revenue, reliance or examination our Accordingly, expenses involve and statements. for material forward-looking and are opportunity organization, not events gross current or expectations implied All statements. including, products undue operating operating for based from in statements, upon without risks expectations, of cause which by that growth These estimates and those potential actual you our materially place assumptions. future and XXXX margin our differ to forward-looking anticipated these include these and and expectations in to various

or revise only otherwise. live Additional Form time-sensitive information information, projections contains any the obligation, www.transmedics.com. new of This is Commission, by filed and regarding financial or to our except X, and any today, intention and and May accurate the at appears with call disclaims update forward-looking required XX, information are Securities subsequent conference TransMedics or XXXX. broadcast which Securities at because February the Commission statements, XXXX, XX-K as or events future of Exchange as on with whether on available website law, on our Factors filings these heading, Risk Exchange and under the risks our uncertainties and www.sec.gov

President And Officer. Chief Executive I'll the Hassanein, Waleed and turn call with to over that,

Earnings Thank you, Quarter TransMedics everyone, Call. Good and afternoon, to XXXX welcome First Brian.

strong I'm to XXXX today our results growth Since we many on continued performance, Officer. accelerated our through our TransMedics of me for that our first Gordon, making the our previously is have thrilled joining XXXX. building report always, momentum update, quarter last commercial on progress adoption As Stephen outlined NOP. and Chief clinical significant Financial demonstrated goals

we OCS supply modules. progress scaling our in perfusion in QX, our of capacity made also Importantly,

are top the Here line results.

achieved of XQ million, growth we revenue QX, $XX.X over XXX% and year-over-year In total representing growth XXXX. XX%

As our revenue a trend predicted, primary for for expect foreseeable NOP we to to be continued future. driver the the continue growth,

down of leverage will the Importantly, increasing improvement we operating Stephen P&L benefited we today's which call. also section his in demonstrated from continued as detail

to take morning was I the on I which mention first like annual our report published details, move XQ would to ESG to on our that this discuss has Before a TransMedics moment released website.

OCS and on for new represented volume, and the consecutive provide by move work quarter. fifth Meanwhile, watermark me cases, liver heart Overall, highlights rebuild users. also were liver driven In and heart transplant that used XX NOP. active outlined NOP the OCS grew this important XQ, line our using very were number of XQ high some on volumes XXXX. another which with programs of lag XQ as we programs more to growth help increased repeat continue let to liver and There in Now we XX granular market. and which case strategy, for lung sequentially

that NOP, and repeat NOP, lung users. programs which There use For OCS of the of XX which were X users. were that X XX active OCS heart, were were and there use repeat programs and

previous growth. numbers We to our and will concerned given take materially trend XX guidance our the program impact not small by center approximately the months are to that initiatives lung XX lung

XX% case XX% XX% approximately and organ were of NOP. of liver, of the basis, of of volume from our from U.S. XX% terms approximately per heart total came On lung In contribution, cases NOP a penetration the NOP very managing several U.S. line these encouraging volume the view share our years. and over NOP of rates of We with transplant having next lion's program. in are TransMedics goal as NOP

XQ, The operational driven was increase of we shift by existing the second in scaling also our and production increase clean our primarily In sterilization began capacity. to room.

further expansion clean our see to as expect gradual We bring fully and capacity operational. online we room new

FDA Given to late that the we be the in track for our remains XQ, room line received clean confident QX. certification new of are operational room for time on that clean we new

accelerate for Our further XQ bolstering NOP to results on of laser infrastructure the model. service growth. We and and the our OCS clearly and demand pace growing NOP sustain technology focused our demonstrated fast our clinical remain chain supply

demand, our up capacity. to key me availability production OCS outline focus specifically keep and areas accelerated Let on infrastructure with this NOP

So -- first, product availability. production

mentioned, as manufacturing as product raw to material capacity enhancing -- supply chain continuous to and specifically, our well we in sterilization supply continuing we're are management. and we As More availability. invest capacity production ensure as chain

new clean we room but midyear, For stated, stopping online to space track production capacity, on and are sterilization production our we as here. bring by are not

already material goods as support finished secured as new in growth. space production raw and our well inventory have current to We build increased facility additional the

third-party we experts spaces. addition, to clean production workflow workflow both In efficiencies maximize are revamp our process room working optimization to within with specialized

the brand-new major will and sterilization Lastly, partner. sterilization the working while of expand capabilities HX are increasing capacity XXXX. current qualifying significantly in our sterilizer we by online sterilization throughput our expanded to be This capacity a

For management, historically, had our shortage. never material raw material we've raw

growing dedicated the closely proactively our our clinical have are we near-, OCS a to our and meet for material establish function raw we This replenish operations mid- needs. scalable new capacity and meet long-term our and technology, growing significantly new as monitoring material to a team's team demand our is However, raw within material process increasing demand planning established for to track raw production team. to

expand Second, we infrastructure. continue NOP to our

field meet clinical to Specifically, XX for to growing U.S. we surgical months our the clinical staffing services demand the the and throughout will XX grow the next NOP across

new pools potential reach faster donors points X X efficiently. opportunistically more are and later to this our and expand add to launch We of also larger year to coverage planning

will Next, case of the NOP we and revamp logistical scale the management flow.

to and center creating a the We entire from transplant and this from initiative initiative to -- sharing to and our sorry, logistics control call central exciting is the creating end NOP centers in over digital, command, initial I'm NOP control scale start digital, senior command workload. our key hope digitize and NOP and here detail arriving dispatch We XXXX. have logistical the new oversee central transplant starting national on lead streamline, our center and towards to initiative manage hotline workflow to feature literally, program, the One a granular more dispatch center. of of organ through at this recruited the a executives the Amazon of exciting

our April we of the on of Additionally, overall provide surgeons team, and customer-facing well clinicians ISHLT as for at updates status also and logistics in information. connect the managing secure a time portion between on the real-time clinical announced we of organ case OCS This as organ our communication and the TransMedics travel the real-time will secure and information the OCS staff. program that enable is launch with It are of application. planning HIPAA-compliant will that app transplant

it new function will transplant we of users organs status of route our We and and their are this OCS about our excited very center. hope to and provide the confidence to about more transparency connect their

the the remove times, transport to our eventually will This transplant for entire stated air have we fully as and critical bottleneck growth. intend and ground function we control for cases. a NOP several Finally, help

we model volumes We are that fragmented of radius our the air today. outpace charter availability NOP seeing transplant to the programs capacity, using transplant are and the starting are flight and the

launch this sometime We initiative also announced in to important expect that TransMedics we XXXX. ISHLT HX that aviation

discuss to latter of engaged hubs. opportunity for meantime, the cover existing this the I'm way in please We United are this charter exciting looking transplants me on potential new further current to transportation allow several the dedicated establish In transplant a forward detail of actively year. to NOP network flight clarify initiative States. and in air the half fronts to take in our organ and to national discussing this

Consequentially, heart, allowed transplant cost all, to Historically, a in organ it start, area routinely to and part via flights. lung or are short that and the costs To payers acquisition air limited flights CMS was transported These donor of distance DSA, the States transplant the organ Back important the local liver United involved purchased then, and or chartered reality within their the OPOs transport of XX% OPOs OPO recognize the to reimburse than OPO, I costs. donor DSA. are all And organ DSA, few for main the a center CMS charge coordinators repeat, the outside manage only when of commercial an the local is for all are Today, their transport service support, these cost allocation Organ the the less were programs own transplant XX% came aircraft flight programs. literally short-range opposite. miles. transplant complete travel. more Procurement XXX than than for local of from came less from is Organization

why Let me and explain how.

OPOs X national that the be Francisco means the or New recipient San XX% to allocation the to Carolina. distant This should a acceptance programs. less local centers or from to national years States. allocation This all not all allocated than coordination in lungs, York, flipped rate matched X With or hearts Boston to the responsibility in transplant in the transplants that ago, transport allocation shifted by regional air transplant and or if and many organ organ nearly to of liver most selling of their Approximately can North effectively for United only shifting Raleigh-Durham, donor the jets change, and more leading overnight the of XX% led allocation. than and responsibility, back

shift FDA the was To procurement Continental OCS shift the placements interesting, the OCS Alaska, and U.S. in from to in United outside States the and Puerto like organ country established. became Rico and States, enables XXXX, a Hawaii, distance the safe, between across longer the the XXXX make approved more United and this Canada. important because This NOP technology entire very led

So This flight -- major antiquated, rely on missions how we are brokers a cost daily who those charter owns growth of license This a operationally do the operate near is organ third-party on transplant flights. organ exclusively basis now forward. have running -- future. we of the rely charter expected fragmented flight their brokers not jets and charter and programs approach for in charter using the a on charter regional transport the and They today? inefficient geared of They operators do will very even to or the the flights bottleneck few a NOP or long-term transplant rely flight. that no exclusively owners going coordinate volume that distances way NOP is covering, become to donor volume transportation a organ and

capabilities. communication of with very Wi-Fi the Importantly, flight many are jets and vintage older range today used limited lacks

States. in firsthand that under patients We growth the critical inefficiencies saw logistical the stakeholders transplantation current believe TransMedics additional create and network believe organ in in other strongly of significant for United value TransMedics as States. model, XXXX, and business and in massive this our that in We users, we will cost managing our flights the own for the act aviation, exist the would NOP their charter TransMedics United dedicated network securing catalyst an of national clinical

Again, technology as transplantation to far. year. first in and States details growth get we organ transformative doubt OCS NOP more by our in shift initiative thus performance a demonstrated quarter and as trajectory I model service later There's strong no are our this driving United operational hope share the this

strongly It is only note this believe that beginning. we the that important to is

We down. slowing are not stopping or

we We laser-focused continued success. curve have on execution sustained our intend growth on to fully mind, for steep and in and to We achieve business. strategy navigating execute growth to drive goals remain our bigger long-term the

the done as impact I've would you trajectory to we past, As growth a the remainder potential XXXX. that in what our could for share of see with challenges like I all temporarily

constraints our chain capacity. supply and production on First,

our we as regarding we As parts delays issues stated our some hamper that of need growth. raw though production do issues some temporarily obsolescence be capacity, could earlier, we currently or could availability demand foresee face immediate-term we any materials increase to cognizant for not

staffing. could hubs new ability regions, Delays Second, until we temporarily cover it. clinical limit NOP to our resolve

revenue. year in be increased over to balanced in with and transport challenges XX% are could delays our to trajectory guidance 'XX growth of scalability we and supply down million. to given goods XXXX. results, total Finally, our guidance temporarily annual XXXX increasing between -- strong logistical the XXXX slow previously above, from up represents That XQ slow revenue an securing said, XX% communicated of potential for year finished full us our the later our guidance year $XXX $XXX million $XXX million this This to full confidence million, network into new $XXX our air down

With for to to the financial cover me quarter. Stephen that, detailed turn the Stephen? call let the results

the for I now some results you, Thank QX the other will Waleed. details quarter. on and provide additional financial information

million The quarter. was on XXXX and the million, revenue revenue $X.X Heart million OCS heart of For OCS of $XX XXXX an $X.X total and organ XX% was $XX.X quarter. was of million our of first breakdown $X.X increase QX revenue QX a Liver, from XXXX, is quarter of U.S., XXXX ex-U.S. was and $X.X the XX% million, last of increase million, increase last an In and of million the XX% was sequential U.S. of from Ex-U.S. the first of $XX.X lung. of $XX.X from sequentially XXX% of and lung. increase revenue XXX% quarter this from revenue from a made million

of the service management surgical a procurement NOP. million. quarter, includes of added as the service $XX for million and revenue part we revenue Regarding service the QX, and charge reminder, revenue breakout product as $X.X was and was the revenue amounts product this the organ In

the XX% service in of QX. total So was revenue

margin XX%. XXXX of for Gross first quarter was the

as the reflected in gross company production the the this margin. XXXX. was improvement quarter overall by sequential QX of operating operating XX% $XX.X margin continued margin operations. capacity XXXX overall a While XX% XXXX, revenue the million, from of XX% is the sequential product margin in -- drove higher in scaling was QX on some as and the it both service first The the for XX% from XXXX. reported expenses sequential expense, down on well in The our of were the the Total revenue above QX quarter in QX driven in service improvements primarily overall investment in and increase is NOP XX%

leverage to the as quarter in our business the of revenue. Operating XXXX, grow we loss million XXXX, in was of million demonstrating first the strong $X.X quarter in compared $X.X first the

Our of net first million balance XXXX, $XXX.X which in cash $X.X $X.X XXXX the a to was total equates March million as quarter loss our of of to $XX.X QX the for million the at And quarter XXXX. first reduction compared million of XXXX. end was of XX, the from

for average weighted quarter outstanding shares Our common the were million. $XX.X

OCS XXXX reflect results continued our of and plan. NOP financial our growth QX execution the Overall, in

results. million reflected as increasing to in capacity able top and been repeat just have to production We unlock guidance growth. $XXX XX% And to additional guidance the both our planned, of we which our line bottom million, which $XXX to was to represents update, XX% are annual revenue range

Now comments. would Waleed call back for to the turn like to closing I

Thank Stephen. you much, so

before, said, TransMedics. in OCS continued long-term believe our We said trajectory are the and of XQ clinical results of for by I we as technology our growth the and sustained early envision thrilled demand stage for services. That clinical still are growth we NOP we strongly the

pose operational, that this and potential. We near- our our success. We to commercial potential We focused meet remain initiatives strides forward our steep to are to navigating continuing challenges potential initiatives make on understand -- growth We any while our long-term laser-focused basking and driving growth in challenges. look XXXX. not throughout on strategic clinical curve could

With that, turn now call Operator? the will operator for to I the Q&A.

Instructions]. [Operator

with question Bill Plovanic Canaccord. is first Our from

and going -- quarter. congratulations start the with I'm to on out

margin? bringing over And new does capacity? impact past that does issues account of new next few come what adoption? terms over new that then you does folks and how constraining curious, how capacity quarter impact did in on clean are Just the quarters? And gross sales add and your this online how room from net the then Like accounts

the of two you let address thank parts I'll the and first on question. address Stephen question, the the impact Bill, I'll for gross then So margin.

new to So the see QX. to extent of QX last liver, in accounts the in new capacity you limit go but heart not in of of compared year, the QX lesser to ability growth tried ramping our a accounts. addition limited the up to the We and That's in for users QX the and in, dissolved why pretty accounts deeper the based supply QX. At capacity. or of on That traditional flat. wanted remain noticed repeat much beginning added to new in end started the QX, of we because slightly It's we capacity. our up to remain with wanted this accounts the that yet active get and the increased you users some constraint

because additional at we're approximately As add at will additional -- not optimization new far We're XX in it X shift going when next listening were that a we substantially. key not over XX times the is double because are last that get we be QX room it's I to clean the months, XX guesstimate as we at people to next said months fully just capacity I take current increase. I a going the this stopping audience guesstimate to staffed. year. significant not this we and The and efficiencies believe say, the -- new why to is would capacity. gradually. we it even point would not expect -- XX be capacity, It's we or constantly But expect QX, over we capacity time. But the capacity do and QX least, at workflow a the where looking room, to That's of definitely, point constantly I want increase clean will open gradually. the at back the situation to to

making again. to team aggressive a situation we us the going from back-order significant on happening that avoid Nick and So are be we and that, to are constantly sure monitoring

Stephen margin. to on to it the With discuss that, I'll turn gross

Stephen. this Bill, is

increase. didn't this -- because have the moving the quickly around was costs logistical to see country meet margin, we of were able service as around quarter gross Primarily, regarding needs. to that we much sequential did we a So disposables NOP margin

kind do time, able that the kind of costs of we're additional So have from reduce new to At baked same clean our the that's margin. already into some. we room

So increase and and sequentially, I that's as in I answer. in right as grows moderate said expect the feel margin past, revenue our I've like still the

for just second And on the my aviation. Great. question,

plane. in plane about to what's it so thanks likely into? And this the some You does equity you'll do revenue form the this you're and or how or and gross And P&L raise need business to the do debt cost building then then expansion detail. b, to to that get c, you what to acquisition the do going kind Is for to talked of pathway or most or capital through think looking this do. potential -- is revenue margin the gross an operating. by A, impact

first aviation Bill. on Thank how two build the TransMedics. Stephen parts question, I'll address your evaluated the I'll the P&L. address business and We let different you, Again, TransMedics options impact all in the of of to

eliminated a long to because We have of the operating going completely XX XXX Part take will take TransMedics secure time at organic plane least charter time XX adding at a it months. one license option for to to is significantly

efficient pursuing that license most creating across XXX can are that operator or paths United leverage of that we States. venture two we number are two had, either jets with significant again, assets our a the the a one So assets. had a acquiring These that actively are joint of significant and options a Part operator quickly

this, into tap the do to always current ability finance aviation to as finance that we've business. our to sheet publicly not balance anything far related expect stated As the to we

in advisers So of financing non-dilutive front the or with dilutive working of we're our that we're options. less forms And exploring different of us. options on different is financing modalities

Stephen. on it turn I'll

flights P&L. a is so Bill, perspective, in today, the Yes, from for P&L our not revenue

transplant, or for as an from So length adder revenue flight. $XX,XXX perspective we that think of depends a $XX,XXX whether would the of the on it's each

So that will be one change.

positive down EPS. margin revenue the But we're be should our may EPS, would will income. it be overall the to be would come in percent it of we be more service although bit. company perspective, our bucket, a margin the accretive a from an And dollar once service revenue, improved. in to So gross The think favorable service

next is JPMorgan. from The Allen Gong with question

really really touch portfolio lot for do but to recovered. and strong face there's heart was have quite comes talk rest I to want and really to is bit. like pretty off. come that the We even has to lung little things necessarily way kind even quarter. by on transplants a you understand on obviously of significant when challenges as as I continuing Congratulations COVID the a taking liver, the in It's bit lung your -- back of exciting a impacted clearly about not of really it same

of can back market to really So up for what that running details provide you your OCS? kind on strategy and get

Thank for question. the you, Allen,

progresses, will I'll granular hopefully, think focus as publicly we our more stated able about some of to -- I the And detail I on reveal initiatives. what be before. as year

three trying is to basically, leverage to heart We're in the So we market. trying things. NOP are doing success what liver leverage and rev we're literally up to lung the of the NOP and the

detail angle at that discussed in So that's and ISHLT. one the we

transplant The Because is X also waiting years trying market of be. group, X just perfusion on surgeons. of years including with -- on of machine last market, form of lost of Lung does to kind the and lung in list focus importance a importance second patient COVID, to the the market understanding about transplant. a OCS the lung believe we're what general, the what waiting mean I mean, pulmonologists patients would in even the people the and the it for And the I the for reeducate angle

area. another that's So

around granularity The lung machine using quarter is promise it be of at the detail. X, Allen, I we major but mix on We're galvanize a I'm area and catalyst year discuss our find NOP. in next perfusion right a to kind I'll this we is our to I platform, will or within -- to that as quickly going that, focus you leave clinical more vague as the can. hopefully, will And third progresses, it. of trying as the provide we're the area that hopefully for

watching happening stopping we are Again, am We're well. we're early the to saw starting But X forward will here. about move what's the prongs explore to continue modalities we and QX. feel going concerned trend And in push not We're with initiatives QX, all not forward. in that we as we fruit. as other to I bear

for and is we're give this it us, that to not market going important up easy. an So

then when And a a at you're of what at a slant. another in with flat impressive basically question yourself, I bit positive But look right? updated your XQ, it I like left On When look raised for XQ, a guidance, quarterly looks implying quarter. really revenues, more be you've basis. kind of XQ,

cadence saying you be holding back you meaningfully not like set from I'm able to outperform have at once Like Now for bar up you capacity and outperforming the shouldn't But XQ. the of be end will that why really really exactly running that. yourself? what's this you

Allen. you, Excellent question. Thank

script, production X which Allen, that last ramp we identify nuance achilles we is So were our the up been place heel trying in capacity, taking we're quarters. has a the as trying for to

we're have Now secure pace inventory. to the at volume we historically ability or our straining same at the kept in same as raw material

to of raw to that material. have allow don't around Nick be to enough So the the sure corner. we know have and conservative prudent what's coming team and They we buffer make

the material our use build of are every We we for of product purchasing our solutions. of ramping all raw up

had to room So some leave allow some to place. take surprises we for to

hope having are an And tech, to we very to to think we have to prudent But do. make by of med that realistic. XX% that don't the nature, think out this know, is thing easy XX% now, better. -- do and you material. I is what sure growth be to hard be the very raw we know and in we conservative like team run is We I also, not realistic we we And working as right cannot to

that get that up done, I The is our adding If specifically confident aviation. and long-term scaling called up TransMedics call, control I our that our network, and X ramping sure NOP other staffing of logistical these feel our We're stated TransMedics ramping trajectory. We're we and Allen, forward also we're as logistics. on infrastructure, other when this we're growth area our our is is making business year the building. units this aviation. the But our all going we're really infrastructure, building still new still in supply whole a upgrading a area,

be we have So to prudent.

opportunity we in We and feel us. reality the excited feel of the where pretty about potential realistic, pretty and And have we see we here the from and strongly outlined to front be we reflect that it. guidance

The with is next from Furlong question Morgan Stanley. Cecilia

as thinking forward, Great. I supply. some Q&A, the the as going that increases, NOP wanted really from about trying driving And in the well across driving start, your your sites you work Congrats about stage those liver forward? a you're on going and recircling through contemplating targeting also, heart as as then as of Waleed, the comments quarter. talked some bringing focus on about XQ you current what center strong repeat versus another you new in on , versus earlier lung commercial how to balance are deeper the the on users you think as just you on balance just about users. think or And capacity reinvigorate utilization of can to talk about standpoint we

you, Thank for Cecilia, the question.

I will one we've we the company. public, same, single-trick be always for is TransMedics FDA we headwinds we TransMedics We're cylinders. in organ happens a single Cecilia. approval to from i.e., delays. heart in liver, kind firing and gained we resilient organs publicly more of that, organ, three Also, all as have the that full when went a my potential day answer of pony. not also said the stated both said We've think all questions not any makes business the

going from. fronts So the to to to continue all push from coming business, where overall regardless are it's achieve on our our growth for perspective, we three

the half question. or one of number second that's So your

That's the again, your pursue. growing strategy growth number at It's but number as this the States. in United accounts really the volume. the our we're we U.S. and The a existing to growing focusing going going hopefully be our in deeper point, We're growth -- the of to going stated as continue question, in some overall long half centers last at or that really of demonstrating quarter the existing first strategy we're not some is of point, to to users is something that's on transplant us. centers, is focus also future, And point. why third element the to single

and argue, or for centers, and we all We're stay one one core doing. So were volume achieve growth-wise above. of penetrate their group what with significant by that success could deeper we're to can TransMedics, that's XX% grow doing existing if XX%, we just of volume their but not able overall

targeting penetration up to on centers patients for and new their grow and centers them their deeper and We're existing targeting and its for and overall for NOP staff We're their them benefits to going and overall volume. their growing hook volume.

that's So few what that successful next for more could potential. that believe is that if this strategy, And TransMedics we of we and doing coherent in years. headwinds we to huge makes any TransMedics. growth view that the over resilient growth throughout we'll humble And recipe that achieve our be these the a experience

up follow Great. I helpful. well. if could Super as And

about of specifically components about the secondly, OpEx on building gross on margin Stephen, well initiatives balance think we adding terms of service as Just some of you margin and component gross in then through should And out, could if through margin pick SG&A the up. how saw to as the that think that we the margins, of you talk NOP. specifically, component talked we just of year? incremental

should we this how about and balance an OpEx SG&A think Just standpoint. from year the of

Cecilia. Thanks,

as in situation we should So QX, challenging I QX mentioned, this kind were we of increase first, on margin, we're the service think see, stay. so that in I see from to able an

be kind in we don't remain at were another expect that we into increase big I should situation. disposable level. level should in as don't of that that as fall device shortage long but So a we or we there QX,

margin help overall help So for that grows our the will and as our revenue company.

grew I about mean, As far OpEx, as OpEx we XX%.

in initiatives. XX%, think annually includes XX% in overall the mentioned the of these kind growth last a call, range. of I lot That I

investing. we're a sense that So how gives I think of

Kalia Suraj from Oppenheimer. is question with Next

Can Tamer. right? Stephen, all me hear Waleed, you

Yes. Prefect Suraj.

Perfect. nice Gentlemen, quarter. congrats another on

it for clarify. question was to you by help client can say, suffice So through asked I a Maybe a Waleed, loop. me then

TransMedics a Any waited belt. I So have the organs under more be till would you till additional TransMedics April. made color Would in great. XXX X,XXX? are number X,XXX, it i.e., aviation mass the to of done question believe into logistics, reach to a was sometime critical gave there sense of their get have should

a have mass you the of that thought literally not We logistics entertained we thank halt. will Suraj, into never not course, achieved do the only what if see we could coming Sure. screeching we put -- -- that for believe literally we've critical would this a entire question.

-- we and end today. today. to So actually a enough airplanes. we bottleneck going of We're the are year-end year, at by our by volume airplanes very we missions start confident going scale that having we we have and on finding our significantly finding concerned that that XXXX. could volume are literally a more year-end becoming mass the at is the critical higher is feel be very know definitely be But much into our importantly, Not to higher problems for

we we becomes The decisively it are reiterate to this calls. want see So it coming today and sense. -- we sense, perfect that would another before about on critical us believe what act quickly have behoove and reached we area talking these to mass and we even a makes are that we -- question makes

in hop back one I'll you Waleed, Fair for enough. one or Stephen, and queue. for

should over been pie a all increasing? the approvals. you? is about the Whether taking do it's overall little think you livers, Waleed, year think heart, a you from Are Or how share for Waleed, away heart that's the it's cold pie? storage? it's So we whether with

lease $XX far saying too all including let's and are so And TransMedics you, expense -- so and XX Or the $XX it, somewhere would be at And an surgeons per may, incremental off OpEx Stephen, said it form we but when aviation, if million would talking Stephen, traditional be reporting, TransMedics say, I year. for P&L be I million, XX different? under be -- so umbrella we on per years, look X done speak, a separate in everything would so forth. the "subsidiary", to planes about so in and the obviously, in organ, would

Suraj. you, Thank

address again, of growing last grew for both. speak and the me by answer X% X%. by is X%, heart the overall first market. let themselves. market, a So we're existing the And seen significant the question. The We're portion grew taking numbers lung We've grew year, liver by

growth current question. And the earlier streamlining Why? percentage in the And -- XXXX XXXX. of we're to Because is organs sorry, said to we're their overall the meaningful this NOP. a taking I be volume. process Cecilia's through what expect We higher of I'm these

Our cannibalize the existing to strategy is just not market.

our to themselves. the plus for strategy that Our our And results speak think grow do market. -- is I I believe that overall

XXXX that do have our and going results, demonstrated to continuing 'XX, we both expect in see trajectory to are in and that forward. We ability to we our continue

this of on to me separate be be I Suraj, to I to added don't at I include about let And subsidiary. comes the when address as it the as a separately. component reporting our is, And -- revenue I really the talk subsidiary well expect investment a will part well, revenue question it expect it cost. can moment, it overall P&L. what can't say

line to as going not be added be makes TransMedics will that it's I breakeven. to hope a It well. So sense. bottom

question-and-answer would for like conference Waleed the session. back to This concludes our remarks. over closing turn I Hassanein to any

next for we thank Thank wonderful having look our your a forward time all this you call to you. and QX We evening. for Have results. our evening,

you Thank concluded. today's now has for attending conference The presentation.

disconnect. You may now