TransMedics (TMDX) 6 Nov 232023 Q3 Earnings call transcript

Good afternoon, and welcome to the TransMedics Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes.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 September 30, 2023. A copy of the press release is available on the company's website.Before we begin, I would like to remind you that management will make statements during this call, including during the question-and-answer portion of the call, that include forward-looking statements within the meaning of Federal Securities laws. organization margins are products our this events, our estimates. relate and assumptions forward-looking for results statements, in without in and predictions financial expectations statements.All beyond operating our upon contained trends, growth including, future operating of or limitation, statements call future expectations commercial our to that or and and/or our forward-looking the which Any potential of opportunity examination performance include expenses guidance and for for based current expectations expectations, in and revenue, gross XXXX are risks These statements. statements forward-looking anticipated involve cause uncertainties material from implied to or and events results materially those differ actual or these could by that risks on our which filings and Factors or revise otherwise. statements included except forward-looking February appears information, because heading should Risk update XX-K Commission new and subsequent the by to in projections Form available Form uncertainties place XX-Q and or law, intention Accordingly, on disclaims as you these these not under on with or today's reliance and release, future XXXX, our of on Exchange required the obligation, undue the any earnings is filed www.sec.gov.TransMedics XX, any events Securities at statements.Additional regarding forward-looking our whether statements, or press financial information website to November This President conference Hassanein, today, that, of XXXX.And X, call Officer. call Waleed broadcast contains Executive time-sensitive live with over information turn and as is accurate and the only I'll Chief the

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

one initiate position us August, our team Summit quarter to service of late X Bridge with position long-term goal to X XQ. limited solid was in challenges met enabled diligently with in us second this growth Stephen outlined acquisition the was overall NOP We Life to positive launch quarter in third for of we for achieved one to transplant worked to try sustained our Summit us growth a and our an impact building This XQ. on achieve goal, combined of for logistics on and Gordon, foundation operational early Aviation; joining and Aviation demand with in to significant growth organ our catalyzing meet and early Technologies.Following to despite growth all is and OUS momentum, adoption.This near-term acquisitions: volume Chief logistics quarter As closed always, XQ. revenue, clinical started we TransMedics. strategic We Officer.The me important today the Financial seeing summary for the call.Here performance markets resource our results are case for

school Our was revenue quarter-over-quarter including the total $XX.X period in approximately thrilled of the in and million by legacy over total plans, raises as XXXX. sequential $X.X are it was today.Approximately growth our charter $XX.X logistics million confidence from growth presentation XXX% XQ later performance cover the flight revenue XX% long-term transplant-related in $XX same million of from early our Summit million, Aviation $X.X logistics-related our XXXX operations. NOP I was service will and revenue.We transplant which the to and activities, of and the million attributable in total aviation representing

the cover their compared to TransMedics entire speaks and fronts. XQ In acknowledge of will executing performance of strategy, also for on the U.S. in organ detail volumes efforts continue full flight forward. school to charter we the QX. part me will Stephen we in section in our flexibility grew to XQ. cover of use before, NOP great sequentially. specifics results.Now let and our associated revenues team success diminishing of on hard which it of maintain a to call.Given early X across line help his markets revenue P&L us legacy in program P&L the stated transplant call.Our work, details to a centers. a forward, will exit exit dedication primarily we business achieve all and of programs at our the before QX the team be going Meanwhile, take the revenue OUS these growth with U.S. intend with their grew contribution section great trends we've to the want affords it, will number moment today's all did we XXXX. organ-specific a our to revenue, the creativity. Stephen As quarter-over-quarter will in his impacts job instead I of focus today's going

Let me repeat again.

on will NOP we operational revenue era.Beyond an scale forward, centers. as continued cash progress accurate see This in no as growth instead and of longer efficiencies because from we of we is growth, trends organ-specific of or quarter-over-quarter revenue numbers predictor towards center XQ to Going the also in primarily focus continue we the and further number positive believe profitability. strong demonstrated increasing making benefit flow

high were XQ. we contribute stated met per of NOP, the XX% having of a contribution of we all-time XQ heart terms lion's revenue NOP of NOP XX% reached organ basis, approximately the our XX% of from U.S. XX% cases.On our of U.S. of an share NOP In as goal and lung in of in cases liver, total

and meet the that added in we for fully shortage staffing XXXX.To Given XX new specialists will direct the this in and demand our overcome model expect surgeons success, in transition shrinking XQ, we clinical XQ. of clinical NOP to we XX growing out support discussed acquisition we

for U.S. from more growth to well area turn goal perspective, would in discussion our than than we detailed XXXX. throughout way to stated continue doubling volume are and to 'XX volume our now expected completing in more new NOP this a will beyond.From invest of on of our in of reaching a business. and case remainder the in 'XX prepare to This on me represent 'XX logistics transplants our X,XXX more We XXXX.Let early the

U.S. set to TransMedics out model transplant call, develop XQ a in national our efficient on described we more As the logistics

require we entire is XXXX.By and unscalable XX% TransMedics background world-class afforded to developed in for donor of and XX transplants and laws.Our recipient past efficient U.S. dedicated goal the that logistics operating the experience NOP process transplant in with and as era the to current inefficient logistics liver of the the a service, of the model we us increase a the donor NOP have to the reminder, from NOP that expansion our model by of U.S. NOP growth revenue end-to-end our case second transplant limited distance months of charter a move Our NOP, all our volume. and of can NOP and lung logistics volume and organs the over recipient.The to XX% launch operated is NOP initiated shown meaningfully transplant heart, volume new national support drive approximately teams allocation our to and vision way business transplant case control half overall in protective inefficiencies of private aviation air clearly transportation and industry in expand the in technology rapid by effect additional QX, is to new OCS of with of these growth.Late fueling the the solve and

Despite business the the early offering.So operation, We thrilled expected are of extremely integrate growing truly we results. by Summit early XQ the inefficiencies as new far, are the represents results. inning encouraging this we with early TransMedics pains and first pleased important

fleet out process staff efficiently. additional We fleet of are operate building in adding the the the and to

our the This Rest expand it As expect and that that have utilization to build-out logistics to drive confident want half clinical everything approach.We efficient on by this X bullish affirm integrating a to for is inefficiencies clinical Andover, important XQ, and on QX we move and logistics second to a as We our the logistics, today, entire to dispatch was know to potential operation to gross will I the our let today, progression logistical share NOP planes. forward. based of significant and from be service Massachusetts, positive XX our data-driven case with assured volume efficiency acquired 'XX. streamlining and it initiated operational of dispatch resources.I planes transplant headwind digital around expectations on XXXX. the fully of have and of on we bit center the of plan of more we by continue of on on our XX our assess growth impact are and will of the to we the also on In command transplant on our margin service based operation aviation, Summit resources.Before fleet associated operational in NOP we focus need extremely me going margin.

all. simply long-term the several XQ our margins inefficiencies of quarters We to product leverage let repeat, next The improve quarters.Let inefficiencies not few all, to not, and margins me over We integration do mid we the me I improve Simply long-term margins next to of represent given expect our expected stated, expect more long-term this fully margins gain plans. and Summit -- at turn operations.Now the stated, integration represent of do service efficiency. and expected not both operational margins be crystal as our the transitioning our XQ and clear. do at over

stated product accelerate expand in program acquired some we leverage we our our Bridge to to NextGen we the strategy OCS to our multifaceted of As Life call, last technologies a from have and offering.

growth programs new leverage and NOP to to grow programs associated seventh our clinical about in drive to U.S. have of volume forward. revenue in And our mid can have to goal that OCS more to share and Our long-term technologies case clinical the consecutive stated XX,XXX these We goal cases. drive in of are new NOP demonstrated is to these its and XXXX. reach adoption our XXXX.We we quarter, later we and by technologies cases NOP performing hope for business our our continuing the

our We stated XXXX. more X,XXX track to are NOP in our meet of transplants doubling on goal than to

let of potential million our the to growth of guidance up Stephen? stopping from $XXX to Stephen to to goal are revenue.With next annual between to call the results revenue XQ XXX% and We the over cover that, not results $XXX we increasing $XXX year our quarter. are reach full years.Given here, to over communicated guidance million be representing turn me our challenges, previously financial and of strong XXX% $XXX with we XXXX transplants X the our detailed year for million 'XX total however, the determined balanced XX,XXX full million, as scalability the are

I financial detail for information quarter. results supplemental QX our and Waleed. the you, provide now Thank will

acquisitions X evolving move with model, through the points.Starting I relevant Given revenue. and and all carefully on will dialogue to touch try business the

related an XXX% XX% a and revenue Summit charter business. the is of million from of Of sequential process the For our increase was is in Aviation's by XXXX, exit million increase to the for quarter last transitioning, third $XX.X revenue charter of note, the to the total revenue XXXX business million. and from included $X.X of early quarter The of quarter. quarter of legacy This legacy intend we $XX.X third XXXX.

the to of revenue revenue minimal expect X that revenue $XX.X as also part Summit about million includes We $XXX,XXX flight our XXXX.The enter charter acquisition in QX Aviation. of be and should we was of related the school of

million.Now and taking would are the part own is logistics logistics network. included charter school service transplant-related missions was we $XX first $XX revenue our past, mentioned, as Waleed paid this now into providing. other In logistics million. in hospital account revenue, derived this This our of revenue of that flight was this to our customers transplant-related the logistics $X.X utilized But from the So brokers. that revenue million was have

XXX% million So start.In revenue is U.S. for quarter the the feel the U.S., from $XX.X in quarter we That's less growth full transplant million. was a good than $X.X very a lung. this XXXX. heart $XX.X includes U.S. breakdown million And logistics of The was $X.X million the of $XX.X million revenue. and million of QX revenue organ liver, $X.X of on of

revenue repeat that. U.S. of revenue introduction million million. the of the million liver.Now this and logistics liver, $XX.X million $X.X of It of and million $X.X lung service product regarding of $XX.X just of of was $X.X aviation. given me revenue quarter, Ex was lung. million let million breakout growing service of is and $X.X heart, So and heart $X.X

product likely service was nontransplant XXXX of million So revenue revenue part million that's the out includes was but revenue. of to and of of million million the to the by of service not XXXX the being $X.X revenue charter and $XX.X This $XX.X $X.X as million. early transitioned just related reiterating, expect $X.X flight we recur, school QX revenue acquisition, grow. the it's in And Summit

And the acquisition gross flight margin due for is as quarter third transplant of grows.Now inefficiencies and limited was Waleed school lower launch to transplant So to will material related the the of as transient XXXX be the less offering. mentioned, our Summit our than XX%. of turning revenue margin. Gross to logistics XXXX QX this

off, legacy integration, Beyond charter service operations the was exclusively was both the old charter our we also these. We missions.So focus impacted but and by gross transplant beginning, service scale general, as trailing impacted business margin neither we business margin. unfavorably business new one mix of transition in had margin by the In on of the to overall at higher reduce the have was the transplant quarter. does

And we simple product was margin improve expect margin service fully over quarters. and range the the XX% expect and was into the this in the gross However, XX%, XX% to quarters.In in improve quarter mathematical the our margin this terms, few we coming next QX. to

range.The over that to starting gross in XX% mid-XX% mix XX% In range the service. mix few for over to margin improve [ to next do the the XXXX. very about future, XX%-XX% to and and upper low QX product very much with to and mid quarters about to the which product confident the margin We ] are the next expect into a and gross also we expectations.So improve in will overall would we XX% service, was expect be several our in equate in expect quarter quarters the line this the business,

logistics mix and a well.Moving steady were will in we million. contribution was using to us more sales, upper expenses. mid Total cases this product as our of as dollar the not than $XX on business, quarter, gross network. reasonable more profit up higher of And in a this expenses higher be own that the Given QX, if significantly just open XXXX And the to were logistics we is margin gross operating third true we of service course, XXs for our quarter to state. believe overall our allows finished

we Bridge me, to However, million Technologies. operating acquisition development X X the impacts.First, research to have secondly, specific acquisition of expenses include acquired transaction included our acquisition -- and transition in-process related excuse expenses of Life in $XX.X This items, approximately quarter is expenses.Now acquisition-related $XX.X other third for of if $X.X these sequential SG&A above X% million million. is expense XXXX underlying was growth of normalize our operating we of 'XX. XX% from X QX and And the

expense jets million Taking earlier, operating scalability the and the million future a for investments critical just still spent would we XXXX quarter, to on compared cash logistics in the the rate compared quarter company approximately in X our net breakeven continued fleet. been million the quarter were of revenue.Our growing of the have was for $X.X income as above for that while In to business as million transaction well of lower 'XX. loss We our in XXXX. quarter, loss million consideration into in third third XX, the to I make to million mentioned $XX.X $XXX,XXX.Our as quarter $XXX quarter XXXX to at ensure $X.X the $XX.X specific much to was XXXX. about third $XXX.X support Total acquisitions growth operating transplant growth X $XX.X million the expenses of on September was than X items have of added

We are residual jets XX depreciating value. with these a years over XX%

common are shares were financial average results. with we quarter pleased our $XX.X weighted million.Overall, outstanding QX extremely the Finally, for

revenue aviation own our that a have and continue pace. in allowed We adding QX at demonstrated logistics to us growing offering strong

are path back statement, million the with to change for gross million, us showed guidance our a quarter, gross like confidence margin, clearly we have I $XXX growing, XXX% which lower profit in saw offering. have for dollars to And the revenue on to Waleed we updated business described, will our also our profitability.As margin a a concluding While to the statements. after the call in as our puts gross gross integrating to margin turn full I on that logistics represents this this in would headwinds XXX% some which closing repeat ability transitional even were growth.Now to $XXX mid-XXs XXXX to grow I

critical NOP quarter first-of-its-kind Aviation, support period and for NOP third a a business business, our you, as TransMedics we capacity execution further product that firmly we foundation clinical our Overall, are integrated believe great growth in a our setting great achieved, Summit and Thank the offering.Despite expanded expand new we accelerate up was a to service the beyond. and results to Stephen. launched 'XX

NOP it confident to achieve for transplant XX,XXX Q&A. We in the are extremely execute goal stated now by to to that, missions our XXXX.With operator I of and turn call strategy will Operator? ability the our our

Gong from The Allen [Operator Instructions] question with JPMorgan. comes first

okay? me you hear Can

Allen. Yes,

dropped I on good line the just to want Congratulations really make second. quarter. my a sure for

kind touch a a flat doing taking you're that math, on to right? just of like Just in fourth on it Just stance you of basically a growth bit, quarter. cautious highlighted of few guidance, a guiding looks And kind dynamics. are to bit little it the my had you

caution? walk so can to of aviation up trends it far kind logistics your is the Is it So just seeing Or through is us of that October? what ramping model? the service you you're leading in

It's QX. staffed significant certainly One, X fully are yet. the made latter, not Allen, progress we in things. We

us Our yet. the of but team we're the extremely we achieve woods not creative make achieved, out results was to

seen challenges continuing number the that's is make cautious we our are standing rest that business. year. have sure sure operational this these what aviation to for extremely is two still make just one. need So in we in actually that to to we've encouraging. up Number of guidance the October Actually, We

ambition. probably I'm be then But you've in a think XXXX. little talked talking I guessing past, it's about your to early And about the

the you've and really doubling for wanting ambition sales continue of think But transplants. term, XXXX. near talked about your about to number have obviously You we when

will momentum business, we XXXX? continued that have from for with XXXX, we think how the think your only should growth So about also a in not fact ramping contribution you but now the when Aviation, Organ aspirations about

not our of upon it. aspiration sharing our are we shy and Allen, to execute ability

your point year. little last to updated reference revenue We've However, needs our bit. be tripled a

to on double are We year year. pace last over this

issue we growing be think ] for numbers to end will guidance year I that in I want of [ significantly. cautioned are our 'XX but call,

a is now. 'XX point we're not But data guidance issuing that right So for dated. any bit

We will the year. do in call first in it the

question next with Our from comes Plovanic Bill Canaccord.

quarter. Congratulations strong on a

these days questions business. metrics First, getting the I we're the to think the are related or aviation most surrounding

is, color the whole I gross idea us can business, an on of per services gave give you margin, think what a average you kind but of revenue the case little you us to of think operating that. XX% or margin be to gross with said NOP I margin, And per projected XX% current think own you case? then of aviation your maybe applicable that you could your

trying model kind this to so get this, can out? metrics some Just we of around

don't Thanks, focus details Bill. that way on on soon. to intend It's too early needed that aviation. share the we greatly anytime And to

our Our revenue second what from and indicative But our of We cover the it's most all growth our see to not of on, share support NOP of we why indicative is in the course, course, year, cases XXX% before and what both we to doing fleet of be next revenue.On product operations one, the we in be service with those when staff, given, as by ourselves, sure the to we healthy huge second as the the of aviation. and going up. our get is we all cases of stood many that. make on believe a the the of dispatch up benefit metric improvement focusing intention that the our we service fronts of half the need we expect have to most to goal that. beef operation, almost track is pilots, do That's do That's are margin. first, lion's the cases realistic. NOP be to But to

think revenue a the hospitals gets ] that we case for average, an you've but how about mean, -- average that? specifically, don't the of aviation And we should revenue that case typical into [ a On ballpark. through the for seen I push metrics, on to just kind what's have reimburse visibility

Sure.

be a Old organ limit not Bill, aviation mechanism There's the of This want is reimbursed per So no question. is through cautious. This I same fully se. are to organ of transplant. transport fact and a logistics acquisition.

efficiencies this we doing pass transplant In we fact, we of the efficient more to are back program. believe could be because some the and

support anybody not quote center There is the to call business I on the no far of that It another think it's from not want sure another making It's But cover as fully vendor. So this efficiencies, the If limit. that normal would ] get be it's specifics. of average, not for ask mechanisms that able There have a question a to or they reimbursement. the transplant. the too expensive, fleet, It's aviation reimbursed too reimbursed. organ the it's of to no feels depends. do early. we through the [ question is is missions.As team again,

If between average $XX,XXX $XX,XXX. flying is distances, you're to somewhere shorter the

longer If as as distances, could you're $XXX,XXX. flying it go high

missions it's first you're what type efficiencies QX of it's The depends really really on first inning, inning. goal is our the to is gain gain even results So innings, volume. early just the not again, it flying.And first, --

So here. the operational detail build we're fleet are foreseeing more build and and we building confidence forward more, the as efficiency achieving more we looking to sharing

And question, then last I promise.

of million cash. Just with fleet, you couple the things. One, on the quarter $XXX ended in a

missing I $XXX Stephen's core almost here? I words million profitable math up? but which mouth, there's with think that looking out $XXX planes. million more, serves leave And cash. think [ if been to plane, will acquire my Am X $XX million, business, was add in not $X case you've if your acquired out -- memory by something to X Does were of X you over And million. it's stripping ], I that actually everything you correct, a take me

You're not missing Bill. anything,

it exactly right. You got

Suraj next from Oppenheimer. Kalia comes The with question

you all right? me Can hear

Yes.

quarter. great a on congrats Gentlemen,

meeting Waleed, you your of in some Waleed, idea have give So Help mist dry that demand. remarks, quarter, you're handle that that? your -- away team I us us should in how prepared know and did understand mentioned all but in of particularly? -- terms from shying How runs, runs we these think I reasons was about ask. you some metrics, to obvious giving creative this for in

you, the our we fact that to addressing My was achieve results prepared great were were fact support we Suraj. Thank remarks building team. clinical able still the Sure. that these really despite

So our small really, as clinical aspect the way sure logistics out of for efficiently and make those we limited team. our and results we We we And our impact were performance. staffing. staffing cover team can aspect operating as of minimize went out speak make to their with sure on That's went we the one much to and as cases small many fleet themselves. that is the very the very, of very of we way can cases as second of of that it.The cover

runs be So, stated really the of what dry -- show.As the runs intending to I of is the remarks far times, that's to DCD prepared several nature was going with rate donation. runs, as dry as us. the It's dry

long we doesn't to to going going And for as we as the norm donors, we're -- be case there's using where donor DCD forward. always go DCD to progress as DCD. this As is potential the be DCD us a as have long DCD donors,

progression below QX, lack always but can the saw progressing -- it on. of all as progression rate I the quarter, that's there's little would bit far of As DCD was say I when of you're or of in lack donors -- But trend DCD DCD donors was using donors. DCD we comment the a

my you, that I of all if when for love like? you second to think were I'd north moving? the memory those. how at within share trajectories Hearts, during you from TransMedics' these of and do progression your Hearts, also DCD Waleed, especially XX%, updated know was look XX% in or And we TransMedics visit, DBD could right, serves site DCD how subcategories color is had question, characterize you me indicated capturing -- some get If

-- Suraj. appreciate the Thank appreciate the you, question. I I call

X-part the address me let asked. you So question

to DCD do TransMedics the yes, continue of share the in United is, donation first The lion's States. Heart

sure.As doesn't because transplant full the expect over of XX%, be from white to this that to the year-end now fruit Hearts to for I number being last why sort number the it to DCD the see But black are continuing overall afforded we especially north OCS.Now after because here, would and I heart in far, XX% is of volumes. release by We that DBD true. year publicly, lung opposite see we is heart, and -- of it's DCD That's -- the are of the The -- is not liver liver to transplant XX% many used. stated grow right the DBD so volumes option it's we not mean growing DBD. DCD year our annualized use and were is low-hanging by times when between say, expect where released. are donors, high of to that of U.S.

'XX publications to expand using growing as pool 'XX organs further. There that up are highlighting see in donor point to benefits. out now we expect beyond will even importance There We coming be are DBD and some data some that the early of readouts. clearly will the the in

we we the So business portion our DCD will we that forward, of as will are to move both. confident achieve and grow, continue rates DBD high continue on success and to

comes next Blair. William Ryan Daniels Our from with question

of channel many little there systems, outright over recently especially for But our bit that checks I just heard actually on few NRP Gap] controversy issues. due nonprofits, that. you a [Audio in just market quarters for DCD was we've with banning in the NRP and are last demand there. ethical know the to

in that's United States? actually the started that to market curious the you've where bans if face So across I'm seen some

we last stated I progression Ryan, about as at call, all you're the of and NRP. are right, not absolutely concerned

we and many the the NRP NRP more are in Again, OCS. We We're States. of shifting -- are United to are that opposite doing is uses XX% true. now use now seeing Hearts centers used than seeing to DCD the

of importance So of was abstracts of more is this to have the a while, limited The be NRP. and cost to NRP, that show it's is comparison and between that. we true. in there might upcoming and directly opposite will pointing NRP. -- including misnomer Our OCS that at capabilities a misunderstanding ISHLT not for expensive be and nature.We a point OCS OCS, address all. at OCS clearly And couple I'm Because than concerned results going have the

So Hearts TransMedics this is doing line TransMedics share is DCD -- lion's the the of country. bottom in

We expect ultimately, And continue case. majority probably of to doing point, to we'll the at be it. vast the that be some

we because concerns all where eliminates are. are methods around that with it these We exist our proud ethical trust we We trust and our technology, legal NRP.

then the progress good the I'll back staff. adding guess queue. Really and And hop clinical I question, additional in

think how throughout there then quarter the in staff the to to get a how and benefit you And grow I speak spread for you fourth full kind Did to surgeons. to Can said through new need continue quarters? Was should we the of the see that quarter? again. quarter? you scale into the bit XX to the And about that you progressed XX clinical think the XXXX? little investments congrats

Thank you, Ryan.

quarter. mainly -- half to fair, through second the think came think be I I this of the

not significantly. contributed So but they some,

QX the we in and and for continue in building expect We beyond. clinical in 'XX will QX, staffing to contribute to out prepare to those investment make more support

impact in trained hires will as that these fountain new But job staffing. a Tamer doing and the So more more 'XX. we a them his would see this And more and impact and see growth QX. deployed we early because as team be in the to to of need QX, XX and And is getting given up the clinical great support going stop doesn't see are in we to in it's mainly ramp we field. more

Josh Jennings from with comes TD question next Our Cowen.

on on remarks, prepared things your wanted to really you results. X think. really the on strong said just I Congrats ask I

The first was just center numbers.

believe detail of anymore. accurate numbers bit you've the don't a just us you build other it's that I You growth center on predictive not on give can an predictor not are more just already. growth repeat active on and some to hope of you [indiscernible]? questions that yourself I'm But little asking an answered why

on their growing of the we're as organ that revenue quarter-over-quarter, our know, saying growth. that, jump most indicator centers the a is and and the in is into We're to then for most of continue -- looking growth.The at month north is, come that you, the is is, handful a never at and Sure. heart, Most our It's noisy other -- that us, the massive NOP, liver. Thank heart I and for in some meant quarter-to-quarter them to XX center-to-center I'm Really, we're those trying -- centers. get NOP. critical what liver -- With growth, X but our some may mean, I thing quarter, important back every they be month. that's -- every continues strongest per they as centers it's already already Josh, say and again, in we center of by you use Josh. segment as slip All long OCS life becoming of life, is of for

it's growth and have adoption most the important.The clinical progression and going center, the within That organ not per the we the centers lung, -- want the doing reflective That's the beyond confusing of be So new track increasing that quarter-to-quarter of mostly was revenue. accurate tracked But growing few be this is i.e., lung. much That's to may that revenue. what data saying. We really of largest the not growth. market growth. the we're is the indicator to program too with quarter lung by The the it's anyway, penetration in center. within a until lung, it's growing

can users read and well the I capacity regular think those in with metric not are on an just NOP Difficulty] commentary we [Technical that delta, that, been metrics you of as that predictor that TransMedics that But -- of quarter. centers the versus not with as expanding reporting and have is enlisted And through you've center service important the as and growth? active that said,

saying, we're what exactly That's Josh. Exactly.

follow-up a about, visit was something that talked My think, we quarter. at headquarter I this

with add Hoping saving each as case? money company build much and for NOP NOP notes, from that, desire use payers Just there's a a you are that in does cases, saying how centers can are had that anything have could money and on that you just with and just payers just you [indiscernible] to interaction your I adopt saving payers NOP service. and to -- TransMedics payers my the

Sure Josh.

is Let demonstrated on driver comments us. ] team waiting patients patient What insurance the one environment. ICU have here true. growth absolutely ICU maximum clarify even a significant we're NOP supported in needing The made Starting is That's of referring awaiting economic [ we the sometimes -- -- a keeping Cowen's biggest companies, me Josh's the accessing organ cost supported wait OCS of waiting of from question. visit an list during lowers NOP an to more with an to the the NOP using of on benefit with the transplant. organ environment, in across time chain patient

we're seeing significantly. cost to post-transplant So surgical that the case that's procedures two, the rate -- additional one.Number cost add dropping number

the you're really seeing significantly. For or re-transplantation, of transplant driving States. payers what's the by -- in And benefits post-transplant organ organs, we're growing the more really a driven like we're significantly dialogue health efficiency is example, the are of With seeing more major say post-transplant ECP to payer, take to that's transplant and with bleeding, and the payers causing OR, down that's we're procedures the post-transplant organs. down what to communication constant cost United of an what in hearing.We and some the economics it's

positive And in we and the the OCS discussion their the to Boston in make given and to their that focus and going a and that challenge. business volume seeing to do of outcomes we're payers with their straightforward quality multiple commercial care rest of just laser more providing. we're execution the the community, If their that to here in that success their growing us. having held are highlighted many to us continue success mantle significant with be cases continue continue to pretty from significant discussion growing However, picking the their We transplant own to with we -- payers is rest they've payers, volume.So and forums is going their mid-October, on in achieved this programs is right, believe more success. we centers with key up own now for sure

The Genuity. Plovanic comes Bill Canaccord with question from next

I the of answered my queue, out tried question. you've Actually, get to back

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

evening, time and Have a we're great Thank your everyone. to looking up you following evening, so forward much to looking Thank and this for forward our call. you. next

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

You may now disconnect.