TransMedics (TMDX) 3 Aug 232023 Q2 Earnings call transcript

Good afternoon, and welcome to TransMedics Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode.

We will be facilitating a question-and-answer session towards the end of today's call.

As a reminder, this call is being recorded for replay purposes.

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

you. Thank released the TransMedics XXXX. June results financial today quarter-ended for XX, Earlier copy is release the on A press website. available of the company's

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

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

at the on and on subsequent Additional risks heading and Factors appears filed www.sec.gov. website the and Securities our with www.transmedics.com. filings February which Commission Securities with available Form on Commission, under information Risk Exchange are XX, XXXX, XX-K our the uncertainties these regarding and at Exchange and our

is of time law or broadcast otherwise. as except or new and today by forward-looking call future of X, obligation, to because financial conference or whether information, XXXX. or intention This information August required accurate any the disclaims contains statements revise update as TransMedics any live projections only sensitive events

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

quarter call. XXXX Thank welcome you, TransMedics Good and earnings afternoon, second to everyone, Brian.

As Stephen Financial me today Gordon, joining is Chief Officer. our always,

important and XXXX was growth initiatives. first of as operational several an strategic successfully executed period on TransMedics The for half we

our being XQ culminated have highest Our efforts revenue in quarter-to-date.

We with agreements offering, this a balance both our propel sheet long-term. entered and convertible two trajectory into our that for on earlier will successful we growth further and short also buttressed acquisitions debt week us

XQ, and room a three schedule accelerated position meet NOP opened momentum further Operationally, all our through This on sterilization across organs. capacity. and demand In growing OCS. clean and partnership better second production we to and will significant demonstrated clinical new enhancing large we commercial adoption the high us throughput for secured our

U.S. and million, up our achieved sales performance. Now year-over-year XXX% let quarter, growth specifics XXX% year-over-year of representing second the me cover XX% In revenue, $XX of revenue over XQ growth $X.X million. XQ OUS the $XX.X we with million total 'XX. in to growing represented XX% sales

P&L down section detail cover We today's the his we Stephen benefit call. also demonstrated in as continued leverage. the will operating increasing from improvement of

sheet our TransMedics a of buttressed convertible us issuing $XXX million the at and approximately terms, up by to we highly net enable in Importantly, standing debt favorable invest network. balance which logistics aviation provided to

in by volume in consecutive new quarters. many and lungs. three the volume was past heart meanwhile, and quarters. sequentially across all highest for another also quarter, XQ quarter lung we've the watermark saw sixth represented organs the liver, case eight first increased driven high in for We achieved growth for heart growth Liver the

continued this We lung hope growth to forward. early momentum on build to and are see continue going planning to

NOP, OCS liver, we were transplant number liver In our NOP. grew and also active In users. XX and of using used heart programs and the XQ, programs strategy, which of growth line outline with XX lung OCS

of used XX active OCS were by We're programs lung For recovery heart, repeat of that lung users. five early There XX XX program. there NOP, users. signs the NOP, of and were were and OCS which encouraged of used programs were our that which

to continuing of the on our focused XX business XX grow remain next months. we over lung to segment However,

In lung On approximately XX% per NOP. NOP. volume came were of our from of NOP U.S. heart case cases XX% basis, contribution, and organ from XX% approximately of of a total terms of liver, XX%

the in before, to to share lion's expect drive we going As continue of U.S. our the NOP the stated we forward. revenue

In we in right new our clean more adding XQ, room production capacity demand for on to meet initiated schedule, OCS.

new building space. room first shifts training We the currently second are and clean up and for the

in We new expect perfusion per it's fully modules XX,XXX once OCS over room this year to produce clean staffed.

qualifying significant our add to enhance second will able are forward. partner. we capacity XQ, by sterilization large a sterilization in further Finally, capacity throughput This going

demonstrated business. the of growth XQ trajectory have again Our our once results

NOP call, XQ our industry in past the shown current and the the have model unscaled months the described United our operating inefficient in us experience we model As XX States over how organ transplant dedicated logistics for network. U.S. committed in launching efficient for is developing national transplantation more TransMedics national as to a organ by Aviation logistics transportation model is. the TransMedics the first

directly goal to end-to-end transplant manage all our help half the to NOP recipient U.S. transplant XXXX. to to is by the the U.S. the volume a Our of broadly. This donor will control and to growth in remove logistics volumes second bottleneck process entire critical of

We that seeing are of today. NOP availability fragmented air transplant flight the making being the limited this older importantly, and investment to is the outpace capacity, radius charter volumes because starting the we are used

our operational represents network capacity. logistics Please U.S. color recently NOP acquire aviation next the allow and reach This the designed we acquisition premier national more and strategy the that this a important to me service months. Summit to the over several flight on end, operators. to provide envision a element how next definitive cornerstone we expand transplant signed to I'm steps getting Aviation, dedicated that one of To a acquisition to charter our of create agreement delighted

or to and for of VP satisfactory current Aviation assume timeline perspective, close President this is of Ben in subject XXXX intend to the perspective veteran expected timing Summit QX, and a TransMedics Walton, closing a acquisition the From we a of conditions of fulfillment Services. role

entire and the team to from operations and the majority transition TransMedics. pilots the maintain to intend also of We Summit

TransMedics establishing eight here dispatch currently and capable from is deploy Continental will Aviation fleet team aviation in Further, of a hubs Andover U.S. dedicated Andover, the of center command digital This that national XXX% the approximately TransMedics the Massachusetts. center covering be located will efficiently logistics in

use to approach data and to maximize the of operations. driven TransMedics network continue will logistical coverage refine to efficiency a the national transplant We

We begun fleet first operational have XXXX. also by initially several the the reach XX goal target TransMedics acquiring to of to process to aircrafts of airplanes expand half of our having XX additional

an we intend long-term TransMedics bring support future fleet. our Subject future strategic success. for advantage existing flight the for school pilots the is to believe strongly ensure Summit closing, to the of We trained to foreseeable operations to supply important this

operations to of the we transition transition have in XXX% Montana intend down part Summit, we our dispatch with and transplant a agreement to charter wind transplant As aviation TransMedics short focused national a dispatch aircraft to Bozeman, which And Andover operations management will center. period private maintain finally, complement operations. intend to to all command our we during and

XX continuing specifically, front grow reach Especially to we in As U.S., of our coverage NOP and workflow the to footprint field to scaling NOP to the process. services months to must growth team NOP invest the the infrastructure working surgical continue logistics of maximize our we or logistics meet on and in revamping us. Meanwhile, and across and grow dispatch we our expanding demand U.S. the to efficiency clinical significant intend throughout is in also next the staffing the the XX to NOP are clinical growing for and meet the

year a transplants transplant we I've per achieve which our to devised goes growing stated publicly before, NOP are strategy at volume reach multifaceted TransMedics As X next as we over goal, XX,XXX years. follows. To focusing on the this

leadership enable workflow clinical volume. scalability First, maintain is of in This will by the OCS developing that a the technological clinical platform for optimized management. field NOP and next-gen case

our the TransMedics expand And for OCS the Second, platform. finally, indications offering. clinical product overall expand

and recently IP-related Life. above Bridge the technologies two on to from we execute to strategy, perfusion To assets acquired

cover heart The clinical to warm elements OCS criteria currently was the perfusion to unique technology indications to using transplant. expand transplant. We that supplement hearts our And for to product first development, next-gen preserved the technologies second plan storage. perfusion for OCS static cold these our accelerate platform standard use lung of merely and cold OCS heart today heart LifeCradle are was EVOSS

these may in a support better momentum in technology our our advantage the and U.S. the long-term And to intellectual the programs using to expand that of breadth for to perfusion to technology, share cold effort be worldwide. there finally, We near property hope development reignite broad believe have more about then for future. the lung We machine value portfolio. and perfusion

quarters and the performance demonstrated NOP. for the demand have commercial Our OCS past growing over and X significant

in this and and 'XX. we ability that and We significantly to transplants have the we goal reach the years. transplant next is in similar to results is beginning, deliver our believe successfully again track grow that to our revenue important on only to over determined strongly are 'XX, X XX,XXX note volume of our It demonstrated we are annual

NOP We I aviation it the operations and time and scale grow logistics time and must, the of the as to the however, to buttress level. following. NOP integration describe our the next capacity for take infrastructure to can allow our best

growth to see must be and the to acclimatization achieving months a our to time and as stage to wave the very path XXXX pace growth four needed integration target. stage ourselves TransMedics for next growth we or summit, next beyond. We our high for to On long-term allow the ready ensure six or in critical

$XXX potential from are for $XXX a be year to Given over between annual previously our 'XX full-year representing million results, strong growth $XXX and balanced our million, $XXX XXXX $XX million XXXX communicated million revenue million challenges, up XQ $XXX total increasing we the guidance to scalability and of full our revenue. and million HX guidance to with

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

you, Thank Waleed.

some provide the the other on for additional quarter. information quarter and now will financial I results second details

and increase total increase quarter from $XX.X million. quarter. quarter of is XXXX a of second of last XX% quarter. from XXX% For U.S., an from was last QX second XXX% from the the This sequential $XX of XXXX, sequentially In million, an revenue increase our and revenue XX% XXXX was

of U.S. $X.X the heart on of following. $XX.X million million breakdown of liver, OCS $XX.X organ OCS and OCS revenue The million is lung.

million the that, lung. heart million $X.X XX% $X.X million, the increase me $XX.X was $X.X of and of of and liver, Ex-U.S. of that XXXX million $XX.X $X.X heart lung. from revenue quarter second Let was and repeat million breakdown million

Now service the regarding and for product revenue quarter. the breakout of

of we for was the the procurement product organ was added As a is service revenue million of revenue charge part QX, was service revenue million, the $XX and $XX.X management so service reminder, amounts the total. and XX% In as the NOP. surgical revenue

it's revenue product of from QX XXXX quarter was in XX% the ago QX from that's the up of in modest year and up first XXXX XX% for QX service high XXXX. XXXX margin margin The XXXX, margin up and the result second sequential The on in quarter. XX%. XX% margin from first in gross 'XX. a from revenue up and a the in XX% The of XX% the QX was quarter The quarter in flat from is from is in up This last improvement XX% in that's XX% XXXX on of was QX XXXX, quarter. of

were the million, Total QX XXXX quarter XX% $XX.X operating above expense. operating expenses that's for

company's continued make growth. SG&A well capabilities and ensure adding are critical our the improve we're technologies And process. infrastructure. support the to we company In resources as scalability investments in to have NOP We OCS to digital as both in developing to tools NOP to and overall next-generation the R&D,

for Operating million quarter improved million the And loss million second of the and was loss second last of second compared XXXX. $X.X compares $XX.X to $X quarter. XXXX even, our in was XXXX of $X.X loss $X.X quarter as the to for the and of million quarter from in in loss million 'XX the that second net quarter quarter

is TransMedics cash the June to provided of proceeds call Total $XXX.X includes convertible after debt. note the net XXXX, the related XX, cost cash the issued May, $XXX as which of in million the sheet balance on the of that to which capped we of million

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

week, long-term have agreements strategy. we Waleed earlier mentioned signed As our to support this two

two we agreement Aviation, as we signed a an agreement we early second, to to QX. strategy, equity we close step of in finally, And purchased in assets And aviation an of purchase in from XXX% the signed to EVOSS and the First, Summit LifeCradle acquire in second QX. IP expect and closed the our which to technologies of Bridge have Life. aircraft

and the the a guidance investments QX to results XXX% repeat services our grow represents OCS updated statement, $XXX and XXXX Overall, to our we in our million our for our run. growth just financial reflected service both to product which enhance as I'll adoption of made to solution. long the $XXX business several million XXXX. and technologies growth over of revenue in continue in have our to In allow and QX, NOP And concluding XX% utilization year, us

I'll turn comments. back to call the Now for closing over Waleed

you, Stephen. Thank

for by growth will humbled sustained must for that scale innings new said enable fully and our of throughout the first capitalize long our 'XX. and believe to motivated that early of are as a we commercial TransMedics. allow infrastructure, our That national market and to opportunity. We integrate time us needed unique the in runway now NOP on the We traction half said, strongly before, NOP we logistic our are I network of execution

support and to technology are globally. and their want I working team contribution. clinical NOP deliver to our programs for TransMedics this transplant recognize clinical Our moment efforts best TransMedics the to and and diligently the broader tirelessly take

Importantly, Summit to I moment the pilots leadership welcome the entire TransMedics team, this team, to want take operations, to the family. and Summit

execute growth. We future where stand, and I their are can looking to bright just goal We I the very revenue TransMedics. forward see under continue we for to our of contribution of to organ logistics transplant need the umbrella. the field reach Aviation TransMedics summit time transforming From TransMedics a to so

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

today's with question Bill [Operator Canaccord. first from Instructions] And comes Plovanic

a wondering for. at kind million so are you was comments Good in the skip the kind were what which maybe here to $XX.X we of you less taking looking quarter you're challenges number the through NOP? didn't -- one, referenced of for Great, the you the to, facing than there's thanks. looking go little I'm terms going have missed manufacturing your worked help evening, heart guidance supply? just what in if could Hi. and us million, sure right up the demand thanks $XX increase was are some U.S. you And my if guidance sequential also I'm to investors of supply questions. but over understand are meet to scale of in And you and unable I prepared translation, and challenges where then any cases have you because Thanks. and

Thank you, Bill.

logistical liver quarter missions. could to but issues, we question. of QX be mainly not support Let We capacity as few missed me get heart us need in system. to start missions where supply done issues. to achieve lack lost because of with and because in the our We part not planes cases and to the of We've the the well in second same -- for of lung, we as chain the well find because logistical of

the we So capacity achieving as really, are as far other not by are constrain, satisfied the growth now. it's we

up Aviation and up and case the surgical most that given better be now withstand to now the to beef need XX-hour have that team transplant programs be the are many case to that need going comfortable And of We overnight the the XX-hour beef importantly, not and are get be that see up lose to quality even NOP cases network to more and need to TransMedics support better your able the and procedure but traditional any X U.S. allowing ahead able case across our logistics to growth to And growth. our the bigger organ the managed transitioning morning we logistics, to we doing to transplant us, in XX with Bill. forward. from of broad demand to capacity, to we to TransMedics running

a concerned normal that QX. hope happens see obviously see and a little this of not we transplant. flows QX tracking ebbs as to As this the a see of it recover I We're we're all and in one and -- bit as specifics we're But to the far about that I this it and about in blip. concerned part heart, not bit. don't as It's

if million. already the you've $XX and to Okay. I back $XX million half the $XX guidance circle year done contemplates back the of guidance, could million in revenue to And

So of my in you're the that Can the going of thought essentially the driving granularity the what's year behind kind us Thanks guidance? down on business process understand down. questions. half or just for any is help you back more saying taking

overall things. second what Bill. the summer impact on you, Thank their about Sure. always the the transplant Three One, are year year volumes. of half concerned at have the some and holidays potential end vacations, of that we

we integrate time additional network the the year that the stand we second until Two, need have and because of goes our cases attention own don't the to operational. aircrafts up of That's access year. half add up the we may have half we second to third-party and in network acquire going have to uncovered in and logistical

We conservatism. that already concerned growth on to we're bigger given us. need where growth of our we we conservative should think to be a year. just be that three, last about the investors I And doubling ahead the huge don't are, from revenue path we're wave have experiencing

And to already what's our beyond for focus right done in on TransMedics XXXX and prudent given it team is what we've now, XXXX. coming and

our than speed acclimatize need misinterpreted don't and So that to to with time top way we're take in of not the neck anywhere breaking growing yet. and we I this any way other we be summit, a to and are integrate want close the on to

for conference next Great. and see questions taking our at Thanks week. my you

looking forward We're Thank it. to you.

comes question Allen from with Gong JPMorgan. next the And you. Thank

platform you've seen. and had lung. congrats influx was I the question I'm bit a you're what EVOSS. from good around challenges that also planning to see to market? you revitalize that of into incorporate Thank think curious about It you that one to kind encouraging OCS should we upwards of OCS on to quarter. bring on features that can acquisition kind a just announced maybe given that with How really what the little help and

Allen. you, Thank

as well are no declaring victory. performance about by this lung the quarter, We excited are we means

are to there in to OCS initiatives and believe the being year transparent. is on are the OCS and announcing continuing the the fully that the mindshare We help monitor EVOSS reviving than design and second of EVOSS invest other situation lung, we'll be We around and current in fronts. superior continue specifically far this to many half

first a to and that ventilation, just the to pressure EVOSS But lead a need clinical program. However, of better into We ventilation. the negative it. the attributes two both smaller unique the the clinicians be two opportunity and the did want might One to prove results studies lose to we have we OCS negative is integrate we of clinical to not footprint. importance. that brings two think a access have need to and pressure Again, positive an do

benefit. that's trials We we So significant some it we to what to unique there need might see clinical prove as do and it. believe add the

follow-up a profitability. then Got it. And just on quick

I might building as business, Summit as what's the make initiatives the need the encouraging margins think the think we well think was both investments, improve XXXX? operating about your for about business on how freight on of service TransMedics it When as gross pretty piece of the well half air side. you definitely should that product the control expense Aviation good of for to as we back you. and see in to Thank piece the out further year,

to margin definitely, Allen. over growth, to we of invest seeing going Yeah, and hi, we of onto but come year. our incorporating depreciation a that think we're some rate, the second to are we Summit. modest intend in with in for the we're books Yeah, spend half I going is modest aircraft with so continue improvement volume to see overall Stephen. that the is by purchase, aircraft will increase Summit, This bolster kind but

Next question, operator.

Kalia The Oppenheimer. question next Yes. with comes from Suraj

Waleed, you hear right? all me Hi, Stephen, can

We can hear you just fine.

Perfect. Congrats quarter. on nice a

bunch in your a of So just and back hop throw Waleed, them way queue. questions I'll

question me are about there comments forgive missed calls you That if going many your, be mitigating through? sequentially I your could walk flat missed would one. I factors on. number heart, Waleed, any was us it So

asset next-gen form-factor the how acquisition? Waleed, little improvements you the specifics thank a terms Stephen end road to the down incremental Life terms more this assets XX, thinking give should line more thinking the of for XX, you And and Bridge to to about XX In this with would it, finally, start of acquisition can questions. of months Summit Aviation, taking that that terms need of we about for in integration Gentlemen, this complement you're my of us necessitated we thinking this clinical you're or planes is in the of you the fleet? timing buy

it's Thank pace organ over not cases bit. concerned you, is planes Factors QX only again, This in ebbs flat. the of Suraj, organ lost but at Suraj. not There that were QX transplantation. ebbs the the it not flows up, find transplant. maybe mission, of was same was because in few the not one it's QX, that But about not we heart reason. we're flows it's up it's to It's and it and to down the that, the over QX. meet just a and we couldn't

closely. rebound made feel the in of Coming out monitoring one is existence will confusion, tracking the very that we that forward, report and been issue ISHLT, not the may concerned it care The heart better have the ISHLT, remarks bit. confusing going growing, this to we are and very half year about of not second that at that Net-net, this there and strongly dynamic took we in heart is QX. and we we're of some and are hope we

half again, second the the what's before second the the aviation? -- go part second part. we of was me to There a Remind

about. Yes. Waleed, I was curious

Yes. EVOSS. The

program the the been started. ongoing It's year. has know already you last for as next-gen for Suraj, TransMedics So

think three that our clinical the benefit combine with is it reason the for timing negative might things. the for add ventilation pressure pressure So, to EVOSS positive a acquisition ventilation. We

form ventilation ventilation have product form the line make both than factor, for a the name right to lighter, mode, To final existing be bottom the that is factor be it lung that it to factor system sure has would We to we OCS mode. smaller has are going one release the form OCS that the the platform. not will need that on OCS

that's on it at we all So, can the comment moment.

Stephen on the turn about Now it me question address let to to Summit. specific

the Yes, a smaller all, planes. and fleet already Suraj Summit buttress is, in two process is going we the through to started Summit bought months. answer XX relatively end need operator, to the by not is additional we and that we about continue go QX We've in this to we're which the investing earlier buy more as next

the So, it's definitely -- the not not the beginning, it's simply it's end.

Thank you.

Suraj. you, Thank

you. comes question Thank William Ryan from next And with our Daniels Blair.

for for thanks you that performance. that little you eight and infrastructure, Waleed, actually meaning could internal will NOP given more mentioned strong bit I'm ownership? that it assets now curious your I you and consolidate own questions. a hub the there change think Yes, Congrats flexible current be a on taking aviation correlate how you, will the the the and to hubs, one

Ryan, you to the on it's good Thank question. call. have for you our

are across all our think I if performance out nearly national of heat and assets United we of States in put there's of the we will Ryan. that definitive donors, result Continental definitive exploring the coverage answer XXX% we did historical X and direction XX might on give hubs the U.S. air is believe an to people and at map moment, we based that a the We math, send data hate that to direction. of The above at

might open workflow is We workflow new actually that's us part still The underway, optimization. huge. hubs. For

to us our will this, want to it it, have it at we work, front Let sharing take and to once TransMedics do upcoming the hate I we the do time team be right, the on I run calls. definitely

Okay.

is priority number get -- operational. for XXX% across availability, is coverage U.S., the the the XXX% the But that us for Continental to network coverage priority provide XXX% to one

versus sense. I'm And NOP the balance in be OCS, getting use more outcomes of also maybe driving their of it, improving that to kind night. there because your and comments XX them by use be at cases they repeat didn't to users work-life morning improve the curious the active just to about comfortable and that balance that's if clients more and overall in of and that's such the are before actually increasing going luxury that XX-hour NOP cases cases then to regarding allowing might anytime Makes didn't the something they now work-life moving use of platform? order to but with

paying and may do back to that of in teams a multiple them trauma the to enable cases right the back be Ryan, balance could versus the It's or just double it's staff, not operate or morning for safer time are cost call, well talent it it's to the -- transplant But in not procedure. emergency safer, your assembled night moment. the safer absolutely with actually the middle is beyond and the correct. work-life it's less may on it do it's to the staff have primary at for patient, transplant intense safe

other better benefit provides in a addition academic transplantation. in the fellows that institution, teaching in major for organ is it and that The are opportunity to involved training

that staff, to glad that a happen we've of see one just enable really it's to well of comprehensive work-life balance really happening and know, taken beyond you it's So off stated we're to is always benefits the clinical NOP benefit, as the that and -- for this and soon. it's

expect as they We these for need safe that cover need for sure We're as transition long we making to we and staffed this have is ready to team that late expected, than to make what be to. we sooner seeing and transition. cases happening it fresh, sure this our but a up

leases? if this, very Thanks. regards but or should CapEx you last that $XX be outright don't purchases That's million one thinking plane? in it's mentioned should range we And one, is Perfect. know to helpful. for then million $XX then purchase, a just if of thinking per the I to we potential planes. be CapEx And

it the purchases think to just I his the pretty close and Ryan, in CapEx, it near Yeah. is is you range term what described.

leasing best And initial the Ryan, cost profile strongly have believe this lessor can our that what adds so to options. the the significant pass to looked an and aircraft cost users. want operation, and We make why to transplant the both we we efficient Stephen some just at reason right process, assumption efficiencies that to of add we the the that is margin to for savings said, to

for strategic Thanks my again and congrats all questions the Great. taking momentum. on

you. Thank

Ryan. you, Thank

you. next from Jennings Josh Cowen. the TD comes Thank with And question

for acquisition, franchise some guys the to I just my has in that lung in collaboration just initiatives OCS just of and us, there Waleed XXXX community you on about see of a in help follow-up being have clip thanks And States. lung just the Hi, and how beyond? talk technology taking higher been was ask guess you with lung there transplant but surgeon transplant you the cadence at place thrust and societies? adopted a lung double hoping remind other us OCS know trying volumes can help the the just of into questions. terms any I and the both United I

Thank you, Josh.

in I stages the these think, early of we're Josh initiatives.

we I get half people's is announce wait going second attention. because wanted catalysts of the to think we this that to one we up. the acquisition the of start believe We will ramping year until be will this

on EVOSS use a focused was get wanted of coming we'll next catalyst. completed, you a in that had community, to lot there attention it. may as focus and We As know what's acquisition on the potential that some

with some several system new wave the lung get to wave other of are pressure we existing of and the as on platform. take OCS we're first probably negative that working will form operational, with the It's to there integrated the growth. factor second ventilation growth, not use going But time and next-gen a catalysts that

and in to have sort can we next-gen maybe we early will are be ideas of the but concepts and time the do growing system to this 'XX we in implement and We others get lung or lung late that later next. 'XX have early horizon, other 'XX how enact planning year

margin updated roadmap Okay. And thoughts, the I high at earnings Aviation Thanks of about any any don't tucking high-level but get asked yet, another to acquisition I by positivity, think if question taking the from questions. Summit in but asked know just on EBITDA run apologize the transplant profitability isn't in, business, aviation is and roadmap that rate frequently for was any profitability, well, or calls know this level closed hit we where comments if this from the but impact to I could already revenue a acquisition? you're anything I adding if there just that terms just

Hi, say Stephen. investment quarter. we're I first, Josh. side, EBITDA this which Well, also, I we think going much, where no, we're call we to once were question. going be to say But aviation, from not would be we we revenue would on going to It's to before. It's it's probably haven't change. change additional a but positive good the going that integrate at it's aviation adding to so very say about this some it's had prepared

for So some calls. future that through give and that we'll model us prepare time to

Understood. Thanks Stephen.

concludes Thank you. the closing And for the this Hassanein over any would question-and-answer like Waleed comments. return I to session. to call

for to QX. with speaking Thank you. you We you the look great again everyone. us afternoon, forward Thank all a Have joining QX call. for on

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

may disconnect your You lines. now