TransMedics (TMDX) 31 Jul 242024 Q2 Earnings call transcript

Good afternoon, and welcome to the TransMedics Second Quarter 2024 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 Laine Morgan from the Gilmartin Group for a few introductory comments.

Thank you, operator. Earlier today, TransMedics released financial results for the quarter ended June 30, 2024. press available the website. the of copy release on is company's A

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

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

press statements, www.sec.gov of and any to obligation, information, revise available appears whether website under update and at the or law, forward-looking our forward-looking Additional information these except otherwise. events Securities disclaims subsequent XX-Q filings heading on or new projections which our Form release, earnings risks and XX-Q by May Risk intention statements Factors Commission or because financial regarding future in of filed Exchange www.transmedics.com. the required uncertainties Form and the are with our at X, today's XXXX, included TransMedics as any or

date, time-sensitive contains XX, XXXX. broadcast July information only call live conference and of accurate the as is This

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

XXXX Second Thank much, and welcome TransMedics to Call. everyone, so Earnings you afternoon, Quarter Laine. Good

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

previously, As for critical stated represents XXXX a year TransMedics. we've

in laser have our revenue been remain We operations and and future both also in and focused scaling while product infrastructure. pipeline our terms of business on investing

are heart on the growth build-out the TransMedics OCS technology and and and OCS OCS demand existing adoption two, transplant to to using completing specific, and designed X logistics meet the of OCS NOP three both focused clinical reinvigorate market services; programs initiatives: growing the continuing network be and fleet transplant overall three, expansion in share for To we cardiothoracic drive aviation to transplant national new missions; our lung transplants franchise. volume the launch clinical preparing to our expand NOP one,

growth, Through of significant profitability QX, and case flow, we positive is a another quarter free milestone achieved for maintained revenue cash business. our delivered and which

key addition, above In momentum the across built three initiatives. strong we

representing highlights. operational from for key growth review me million, $XXX.X Let growth XQ Total XXXX. QX from an was XXX% QX XXXX, revenue sequential XX%

results services driven as in were both logistics TransMedics revenue. as OCS Our by well growth transplant continued product

sequentially experienced to compared cases OUS sequentially year period volume in year as the QX same to QX. and both commercial and substantial to We compared significant in in across heart period as growth and the both U.S. lung, compared same NOP XXXX. well and liver We last revenues cases last heart growth liver case experienced OCS over

approximately up service was in from logistics $XX.X million, $XX.X representing for XX% growth XQ quarter-over-quarter. transplant TransMedics million revenue QX,

slightly XX%, margins Overall 'XX. was down XX% QX XQ in from for gross

over to fluctuate we discussed expect modestly gross still previously, we've the and the building quarters. of As we are margins several next business our foundation therefore, believe

For margins context, XQ in were XXXX. gross XX%

operations next gross XX over both scale be from we and months margins able product further the Importantly, to in we confident remain that extremely over benefit as will confident. I extremely XX service remain to improve we time. repeat, we

profit operating of And of finally, GAAP we revenue. in million. income $XX.X to QX, $XX.X representing total was XX% million were Net pleased deliver

flow free during earlier, positive the are while basis, approximately proud we our are quarter. quarter profitable expecting flow next free continuing fully Again, achieved expect as months of remain to cash generated aircraft we on mentioned have we first and to to very As an $X some in with product business purchasing we new in cash operating heavily XX the million pipeline. despite fluctuation are cash invest a to XX over our free

metrics out operational Now network. with our more logistics me across that let building transplant detail background, provide relating key to

Through fleet aircraft, of owned end XX QX. QX, we our expand to of continued reaching aircraft by

our owned as to X July, today. aircraft added in total new XX TransMedics of aircraft also bringing We

significant count were efficiency made head growing operational investments over We doubling to investment size These nearly QX, pilot of pilot also made the and in fleet. current QX. our in our maximize TransMedics crew aviation

investments XXXX missions in are beyond. for these prepare to demand made NOP Importantly, and growth expected in for being the OCS

compared To 'XX. that in active approximately to end, aircraft the aviation of daily number to QX planes XX average TransMedics X grew of

aircraft continue to throughout year compared we XX remain QX reaching QX of track year-end. owned will by number this increase XX% approximately Notably, to XX% in NOP expect our We in the covered missions aircraft our on approximately to as of operational XXXX. flight

us the Let long ahead moment a in underscore me runway this important of take additional to remaining of growth area.

share have of volume, current OCS to we grow NOP logistics. our at our First, room mission

grow XXXX. stated NOP we logistics move revenue overall U.S. a would we by At several significantly significant Second, level, TransMedics. XX,XXX volume represent in the to of as year expect target per next the for transplants years achieving over opportunity OCS that to closer the our

TransMedics this growth long of growth ahead we field have of our opportunity committed to as a capitalizing very and of differently, we of date, are us, and Said much on fullest. green its as are to we our transplant logistics to proud execution

programs 'XX. approximately logistics continued transplant grow perspective, QX, our that of QX From In a footprint used of compared customer U.S. are we logistics have approximately using to XXX also in transplant TransMedics the services. XXX number programs to

we while growing volumes mass programs existing transplant within have overall transplant and better we going their meet a our achieved need. are programs, deeper that focused to Now these of logistics on user critical increasingly

clear will that expanding and key transplant business. TransMedics gained growth our logistics on the to Based scale be growth of long-term of as of near- continued through air and greater fleet a and plans. our for performance, even above our services balance continue into sight catalyst see 'XX operations the we We support line 'XX success we to the conviction a ground have to

programs. to Moving now our clinical

to our to on reinvigorate lung continue programs offering advance and OCS for We and our the clinical new expand heart market lung OCS heart. designed OCS indications

all the we on Importantly, for X in programs track of initiation XXXX. clinical remain

of and OCS on heart OCS potential lung are programs We the our new following updates. excited increasingly based the confident impact and about clinical

heart First, programs, we've the OCS our which initiate and new of expect to perfusion in in circuit we progress significant made developing for lung which early new and designs OCS first our XXXX. clinical solution

impact a transplants cold and OCS 'XX, lower evaluate The XX compared towards number concluded and of testing hearts donor for than the successful more milestone OCS morning In the lung of This a preclinical storage. second of these heart perfusion developments. on formation enabling lungs to controlled edema significant quarter to significantly of new critical while have significant we successfully is hours improvement performance OCS OCS results ischemia-reperfusion demonstrated storage designs. OCS maintenance operational histological hours XX to of to what to compared for this circuit the and static injury demonstrating both of and circuit OCS of heart with cold achieved significant We and perfusion new achieved of lung markers for similar reduction we throughout overall lung the liver. OCS heart, due lung with our

new looking preclinical is on sharing underway. experience heart program development this second our I'm of this early of new and half kick calls. concept, the in to program by encouraged Again, clinically with of perfusion this cold our results to XXXX. Second, off are expect very forward product future we we the preclinical

scientific upcoming catalyze platform For reference, nationally. publicly product lung volumes preclinical to potential programs very detailed Again, of conferences mid- growth transformative presented and and are OCS our the more transplant we and and at formally heart long-term excited of drive be in lung nature about results XXXX. to our and pipeline the these heart the transplant will

like on and I we website. data mention providing report, key TransMedics which inaugural update about a gears. in update provided information shift last moment our ESG the supplements take me released metrics has to ESG our points data Let data our was This would afternoon this year. its latest that to published performance

HX by we our are performance. encouraged conclusion, In

are initiatives now growth continuing half execution on second focused 'XX of the strong We of our throughout preparing for beyond. 'XX and and

half year Given this quarter potential growth fact second performance revenue a strong revenue scheduled guidance are our 'XX, will second represents guidance year revenue million. Also, to be $XXX like of to underscore that could in XX% to the of pace of full of limit which which note of annual logistics routine OUS throughout between the aircraft $XXX our temporarily I'd half down to revenue. and growth XXXX over factors it million maintenance we our full XXXX, for second XX% this in increasing that year. contemplates some of the in our HX. our variability few

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

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

with Starting revenue.

school, $X.X quarter. For million XXXX from the be would which sequential XXX% to transplant-related quarter of million. $XXX.X million is of and the of our of XX% This total second an second last $XXX.X XXXX, revenue revenue. flight quarter was increase related $XXX.X our from an million included increase The

includes $X.X revenue The the also was was QX and of organs from million million from outside In XXXX. U.S. XXXX was quarter QX of breakdown All XXXX. the $XXX.X million million. U.S., of The $XX.X ex The breakdown substantially organ $X.X grew of logistics of And $XX.X second last on lung. XXXX $X.X liver, U.S. a XXX% heart revenue. transplant second million from million, of XX% U.S. million increased million of over revenue and heart sequentially revenue quarter of revenue $XX lung. was and the quarter. U.S. increase the $X.X XX% of

the on product and Next, revenue. service

NOP the and service service revenue product and was service revenue As management, the QX portion clinical The of organ revenue million. revenue was $XX.X flight revenue. also school logistics surgical $XX.X the reminder, our a In of total. procurement million, service was includes the and XX.X%

last year, the was in second the comparison slightly to which business, quarter Gross quarter from the include our quarter the change did XXXX In in second of second year. XX% higher quarter. QX down last last not XXXX of service of XX% down reflects from margin component logistics XX%, for and the

in this and XX% XX% improved and remain margin XX% Product was quarter last QX, steady-state should product the to nicely a in which margin, from range. XX% reflects

maintenance aviation primarily training and our to This hiring ensure in service accelerate to XX%, from efficiency. driven planes the pilot operational and investment by new margin the in line decline was XXXX. decline a our On to for was QX significant investment time availability operational maximize side,

some leverage. will As margin, in mentioned, early service gain we we Waleed variability XXXX efficiency expect more the as which and stabilize operational by

margin that with improving several Importantly, we and margin, quarters. gross overall gross next our margin over service are product the confident will the improve strong

QX growth related was personnel Total expense investment operating product million, $XX.X operating driven expenses related new regulatory corporate in and by for SG&A quarter This product primarily R&D in and XX% infrastructure. XXXX to the quality XX%, costs development to overall were growth higher expense. and resources. above grew XX%

of we Moving expect first expenses rate than will what half the year. grow, I seen the still in have be forward, while of to lower growth the

loss These was delivered compared of and loss in And the million. quarter $X or quarter was the XX% $X.X $XX.X million per with revenue. earnings QX Net income we earnings $X.XX diluted $X.XX. share share a operating of again, was operating GAAP million profit XXXX million second and XXXX. an per of net of $XX.X in of Once

of $XX.X operating quarter of cash March of $XXX.X first is XXXX. and the Total for million flow. cash reflects June increase XXXX, $XX.X the end million the at of XX, the balance and, as cash an time, from $X XX, million free was This of at million

second jet QX, owned additional X bringing XX. purchased our the in We and of then today total number quarter, X to jets early in jets we purchased

weighted diluted Basic weighted for were for million. and outstanding quarter the outstanding average common XX.X XX.X the shares average quarter were common shares million

very was TransMedics. for summary, financial another successful QX In quarter

We in generated now early consistently continue our and GAAP to cash is focus our cash operating shown an in free we said, also generation the and infrastructure That a flow in given new of flow building on profit. grow scale. current which our will our planes, term. In investing quarter, example we revenue fluctuation operational free capability have product see our pipeline, we near this cash as

which range guidance in just full XX% of represents XXXX. $XXX the $XXX over Finally, our earlier the year comment, are be million to to Waleed's of we million, updating annual growth to repeat revenue to XX%

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

performance. and on you, logistics. first Overall, throughout drive TransMedics of forward XXXX initiatives NOP OCS proud we We're half the and of Thank to are execute looking adoption our deeper major and to Stephen. to all continuing humbled broader transplant

second on need we're Importantly, growing the the focused to U.S. in consecutive organ world. and for U.S. our transplants in for year transplant help around volumes patients the national

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

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

really Congratulations quarter. on strong a

I think just specifically the first had question heart. I for was

I last was few for a concern think investors this the point of quarters. in

second how your were technologies the limited But in label. seeing here. advent market very you had given You challenges the and quarter competitive had even some of talked a you strong about some

how and back you we think can drivers some that half? to that into the should about strength the just So talk sustaining of of

Allen. Thank you,

a I think, comment. be different of Allen, thinking you might

had from The franchise. cold concern been about we of There We've once trial said perfusion What late doubt dynamics have given the We we and a that have XXXX. heart our concerns never some different we never the around has ebbs in flows start our about the is Street. stated any franchise. any heart expected

the think the think meet And of same what to progression. primary in the I I European point. seeing in the of end natural fail effectiveness we're results announcement roost to where came QX with their the they is technology, that ISHLT,

U.S. DBD around remains the to is for from donors growth delivering criteria and perfusion and only The of utilization DCD technology in extended the the speaks the and OCS world, outcomes that significant heart FDA-approved themselves. be utilization

is we're clinical facing the success meeting the now in I with the community the the of outcomes clinical in the voting adoption So and think their given OCS marketplace. all all that challenges

we we continue next are we proud and So this this throughout accelerate. to this launch QX further we results, programs, to year the Once very even expect of expect our year. and heart

we're OCS lot platform. not yet. us done even We're of the to So the stay a growth proud tuned. and upon QX heart execute of results, front There's accelerate but further with in

million be a And think you're that implies about sequentially. headwind you follow-up a you about help talked quarter, then the to some going on so to guidance be can bit will the so per of just cadence? a at a the planes, guide. quick think roughly we how Because But the business. back little maintaining of When half, that your just us implies a $XXX step-down midpoint about the bit

already So be relative quarter? cadence the quarter, year pretty of first had expect to by should what the outperform half we third you see given to to able fourth And more planes why significant you're a margin? you what that at in shouldn't

We well. my as Allen. I'll you, expect Stephen provide you never do. Listen, and give do we his perspective, Thank to decelerate. will not

know we Yes, to when realistic, that try we and aircraft, to be is of but it to we whatsoever. weeks are get guidance into we with practical so away. be operational. some always crew are size, what all operating takes a service no operational. but doubled surprises number buy higher to trained However, do our our and to at there go X minimum an fully It X right takes Yes, X weeks X airplane, to doesn't it we

avoid know. And tendency are as guidance That's least we are perspective. factoring that there very And guidance. surprises. to at my you we take any some conservative So to in operational seriously, be variabilities we our have

well. it to And then his on I'll perspective Stephen turn give to as

Waleed especially is we Yes. echo do, that Allen, in of logistics just I quite the nature said, would what dynamic. what

to to planes them, But together, going. we're no mentioned, of so know maintenance could training we on happen. at that size delays, we could all there that that we putting things we're speed now, are these pace pilots, want to will and be delays try we getting the up programs hiring ahead As we're cause that assume don't

we're bit that's being why So little a conservative.

what the half second pace, I the bit we're a little up at. certainly over looking is think flattish to

I agree.

from comes Bill question Canaccord. with next The Plovanic

could sounds the cold it warm and I you the programs Just 'XX. to go we the those think 'XX like just start pipeline. into later Especially, in you're perfusion first, think early if expecting perfusion,

if For design-locked you revenue and on terms its lock product, device get are the kind to warm you trials? in and where generating solution. Kind approvals start the off of on trials? going of design through the then remember those of it's correctly, you perfusion, I those? in that Are be on the solution the to process process the will And

question. the Bill, for you, asking Thank

We are locked loaded. and

really mainly FDA this be regulatory stages. are our exercising the second of We in with And next the phase strategy. will interactions final the and year at half

that's of And to And abstracts that's design early we we'll keep have in scientific like perspective, feel written FDA. But as talk and why by from actually between the year, about. we them presented. loaded. confident a that conferences already So XXXX we're results, and very and these locked next preclinical lot us we to many be to hopefully, why for early a

going BNP So design testing. It's there's now. right exploration on or chain no supply and

on And will those pressure? you negative a the that FDA product, get question, a reimbursed And for lung then you trials, already is approval? have considering

Yes.

revenue-generating will our it's the many or premarket program, all As have and And any trials. you been program. that know, be trials know, post-market, all the of through whether on call or clinical TransMedics, trials NOP

be revenue generation expectation our for absolutely So users. and there's us

So is the answer yes.

You And NOP device said but specifically. not revenue device also?

NOP. for the the is disposable. charge device, yes. NOP during hardware yes, the And OCS, answer is The the We never

clarification I'll pressure in Okay. operation? lung first this was the say negative last include just And the will then just on

this Not future. the this maybe turnaround. not No, turnaround, in in in

Next Josh Cowen. from question comes Jennings with

business. the been It's is the life ask improvements affording transplant OCS on in wanted just the the Well, the to Congratulations then transplant teams. recruit to that continued about the tough I of NOP to momentum and surgeons in just great surgery. It's see quality quarter. strong the

from era to quality of at fully kind terms advancing about think new Congress, of of in Transplant for the transplants. morning liver society of I life indication, more the in attempting and surgeons president these moving lung American talked the and keynote heart that a surgeries that get and for play and

customers my customers if mean, they of having school/residency? and to is, their guess do you surgeon are from move transplant more question but OCS hearing And surgery trouble maintaining NOP? I expect your I transplant guess not they're out into your I noncustomers, that surgeons you adopted haven't base, medical

Josh. here. be Thank you for to very need careful question, I the

one I that all on about heart have the the could afforded think and are that that direct the I of the comment in last community, are made many the hope day NOP can procedure as have the of procedure liver using that know their liver the that were community scheduled transplants by facts we cardiothoracic ISHLT about liver hours been morning community they or at the lung comments transplant transplanters in morning NOP a like actually, experiencing. semi-scheduled and the the XX% publicly

that's yes, maturity of we at that's every enable turning happen. that stone to be these are why safety level why the So machine to that and And same franchise to to cardiothoracic OCS perfusion, with get we're investments. perfusion making with

and this leadership of transplantation, and been specialty fatigue Two, in challenge statements recruiting new President ATC the day basis. or about the we've many of leaders field being is OCS young really the with a given absolutely ASTS about provides NOP a less To surgeons. your made national accomplishment on the that's results that that XX% investment. issue That's and is that organ we're XX the huge the liver sustained We NOP liver. again, a real see from correct. program hope transplant There ASTS that comment in hours, seeing that old. the the is solution only has for organ for speak can the I And of of the months public done than on transplants why a

to we achieve arena. the that the in So cardiothoracic yes, be to is able answer hope

of programs the comment comment I challenges surgical we on NOP their maintaining using really on. something really That's are can't that not team. and cannot

can international executives the just maybe lead organization be international I contributions wanted even hired and to ask opportunity. you've over to be any about about beyond? there. believe in and work helpful. a And And that meaningful access updates couple XXXX maybe from I on we share more franchise would you commercial the Should of Understood. thinking

Thank Josh. you, Excellent question.

European definitely us we want if start have contribution have that markets, like to to these hires think access wouldn't materializing. opportunity we I I'd caution mainly from OUS, don't European going into just to by market made fruit time that is could but it of takes. efforts I 'XX OUS and the we end we beyond. 'XX early expect. of what see hope That's definitely these take And that

the don't try all of and OUS in significant the globe, and to We're actually geographies. tuned, also model NOP success generation. dialogue, the we stay selectively in opportunities And they active impact about talk that replicate across U.S. TransMedics have portion the actionable NOP in generated and could or of are to the targeting like we to excitement positively a materialize really, these smaller into but interest discussions items until for revenue either

Next question William Blair. Daniels with from Ryan comes

is by In Congrats pilot the solid prepared This your nearly count on on you mentioned for Jack twofold. Ryan. remarks, increased that head quarter.

XXXX? acquisitions? on of kind pilot part, are on? going are pace I'm just planes the this up if an especially okay second year is count you will the add is at more as in to And area as to an continue you forward, So curious, kind accretive that goes head a keep of you this level Or of now head just with planned count

to beef head pilot increase by to to growing Thank able be also the for is operational the count fleet, of you, number aircraft pilot the active two up plane. continue capacity represents us. meet adding we crew we're that our but opportunities to will Jack. to the double-shifting One The

clock be actually planes XX potentially could per than hours day. available So rather the around the

additional One, be hours day. pilots XX so could has we it impact. will operational new double-shift new more the positive aircraft potentially plane, than be to a a pilots double So plane need but each to recruited man

take ultimately hours to to around that's goal time. clock, reach but is going the Our XX

is, answer for would we right dictate data and know, given midpoint, operational half the So enter we why pilots. we and the evaluate number we where 'XX and our But of utilization. need into now, will pilots We'll the our the grow of what for the second we to the as this we're on growth anticipation or pilots middle could and fleet of say, us given in We we investments go are or I grow made we've additional the planes success, sort let in mode number this not these on infrastructure in we That's front of now. year making XXXX. of see of continue the in a investment starvation planes.

then had at Okay. quick where some room you're bottlenecks. last on us Understood. an just on can give think capacity? you And as clean follow-up, a update you year, I just

starting So plans Or expansion are to here? you reinvest in do rooms? have clean any you

business standpoint, within definitely term constraint, months, next quarters XX but of I start capacity strategic continuity interactions from to XX the so. a Thanks, from we'll some investor or we've the near as Jack. a over X.X had planning last the Nothing in stated

over from I business a XX capacity for risk continuity not begin months, adding standpoint, the So to would say management constraint. for capacity next we'll XX

comes Piper Matthew The Sandler. O'Brien from next question with

fundamentally study, off something shutting but that heart side. the There's just back understand was with you Waleed, a I'd step-up to started the clinical else on I down. I that's can't a improving working sequential go mean Q&A to clinical trial competitor be on there. the commentary like that

or If 'XX that improving And aren't quarters several heart into you two point beyond? would durable what the side, had on one are next to why be? the and they they to things in

trial all. I'm question. impacts. just Matt, the down at of not you, clinical one that saying the I'm Thank saying it's the shutting Yes. that for is

just for we flash So never flows clarifying The at expect be that to this is durable and the I We heart goes momentum. the expect in a ebbs around." question "Guys, this Allen's this all. just doubted be we've to was said, We pan that heart. don't durable. the sustained just

and been and And all there clinical system have NOP, not noise predicted, grow the utilization value, perfusion salvage. donors extended access donors on out we the OCS as cold heart in remote quarter in in was help noise static and utilization long-distance deliver about the any of no technology or delivering DBD DCD value, salvaging have which meaningful of be of this impact to and transplant trial they has donors now the to cold donors to been impact of criteria in system the could noise volume like the cold of of that did the and the nothing and areas quarter but other proven, and country perfusion

year. warm So we cold by expect for and the it year, launching sustained, the accelerating next heart to clinical fully early expect one be and of one this X we our programs for in heart half second

model to eventually for the I in then year And metric. about is Got margin question some close yet, then the for think you're QX next the low-water but Stephen, made for comments that mark on through this year? it. operating Appreciate a And not here XX% that. at exiting you've full

secondly, does in where the model of improvement? the from all, you number then And get of to that come really to leverage XX% right? kind First is that

that mean, I us generate. in I that consistently business have down allow that, we'll and model have No, point, investment Matt. we said is still the margin, drop significant Thanks, kind We're this to of at Yes. think that mode. which that revenue should can

a I trend I operating We're could going do I of think point be variability. cash profit. at don't us So not backwards. some we consistent going where flow we're see kind level. least cash But that we're see quite consistently will at a on as the perspective, a positive from at generation, mentioned, variable. it to be

the in some critical where but the past, organization the cases, a NOP the the than think as fast got not a I pace. growing growing good we're investment mass. we still coming in We've of just probably, at very far leverage, at is not from were leverage at spending were we pace As in the but pretty rate revenue

more nominal in are now. They're the And we The service major investment area. up talked increments biggest to is investments. that COGS so the showing about not

see starts well. out, point leverage that as to really So as really we'll a fill that be

as So highly a a grows leverageable It's we lot the have revenue of here. opportunities pretty model.

The Wood next question comes from with Stanley. Patrick Morgan

what side those start, it the things, you to just What edge? XX how very extra wave. over that Or Have the online it there's there? they're are between has adopters and programs Maybe a think noticed care the earlier in conversations? consistent? curious been was what tips in for that do the difference I'm obviously the people logistics of conversations And difference you about, second programs any demanding came those

I Thank question. Patrick, what They much, cost-effective conversations how them, how want as logistics program, logistics the to you fairly similar. to actually all understand be partner for them. TransMedics would could they're could characterize TransMedics a so help the the

night spades The the based in One, their on is three they're hearing is the the and in to able adopters things. seeing two, out colleagues; logistics are they're anticipate and it. probably further organs a the logistics element fail have early or they and either to never a they from middle location to of us, that providing; demonstrated peers TransMedics growth from them it institutions that and the and we reached recent were the are third getting we're and meet coming reach they partner that would secure

the The and benefit economic applicable country. bottom all. across to program offering financial same is is It's the line our

for us. makes So that it easy

board. difference same and the OCS logistics And or the rapid adoption. the it's the program efficiency in way success extremely TransMedics proud the a huge the cost again, we feel don't So by of programs really because humbled network different we see experience and the across

and to these it's relationships our forward. network go logistics deeper and relationships for through Now these these secure really going deepen and relationships grow us and time in dig

as investing Super Was gotten off-label? clinical a follow-up, Like, a just being presumably, maybe would of it's expansion, with some that example, it's clear. way? you the of customers partly I customers, discussions to take that well? programs, know it focus you that into checks a occasionally one DBD to And what sort guys. those the then right, coming new maybe label about you pushed prompted demand that side on side. you on had you have temperature with it in mean, and how obviously conversations you're and had in for kind big as think Or sense was guys used that

Patrick. Thanks,

been we're on years. heart market, sub-X-hour that because capitalize got this heart we as transplant to dynamic, think hour we to segment for are the sub-X TransMedics and and said eating now would ready. this characterize something have XX% last that XX, breathing, a XX we're living, it. get market, when preservation an trying saw opportunity, will I organ the of I we here saw something we We've was the XX%, ready, always We

heart customers for. So ultimately, continuation our have And franchise. to help we to get to really our And it. going position we don't an that we that is and we it, something the it's just to indication a the know will it's always in plan of get solidify pushed This us not always is area in by on or market heart us that's being strategy. an this

Next Oppenheimer question Co. Kalia comes with Suraj & from

Waleed, Stephen, a quarter. on Tamer, blowout congrats

you. Thank you, Suraj. Thank

Waleed, one Stephen. for questions, you, So one for multipart

made, let's dysfunction, perfusion everything not and then radical implications ethical, say, you assume make band, organ What within organ you survive piggyback you on of mix, you specifically pressure? if scavengers, perfusate for is, can the you PGD, legal Bill share ask is that, and a of some bogey? comments device. reason that have tweaking? Like, such Is earlier. correctly, the other asked And could the what heart, perfusion helping let's I want it is to had for critical XX-hour hours, if variable the So using that normal get temperature, some free heard edema like you I Waleed, less are to what's an Waleed, that I you XX

if maybe what just can around seeing? So you How kind wrap of are there? you getting you are

The Thank but I Suraj. question, on you above. is the the speak now all right of can't specific, for yes, answer

to We market take and are lung storm. going the by heart

We have new circuits.

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market, the replicate we're huge said, we seeing therapeutic fully success to as arena. that new the the the preclinical agents on itself. have let We will clinical hopefully declare And level then we'll in you exercise

committed hard the are We doing to work.

preservation the there's company in field committed that organ evidence, has are TransMedics. unfortunately, of transplant, the is that evidence We been to for the only X unequivocal evidence, delivering which level that, one delivering

preservation of we success. actually more the best our We're possible pan delivering commercial And transplant. that TransMedics your grow would and we spent focusing franchise going on deliver to assumption years to our the solid X.X technologies field back deliver to organ evidence hope out once evidence.

Our market itself, the commitment itself, is declare to based deliver on the we'll the let and evidence outcomes. dictate

compare to normal trial or cold storage? And Waleed, thermic clinical was OCS it the

only have clinical on the to ourselves compare storage care. these our standard because care, programs, what any the as it sure, is moved to from the last of in already People static standard in the care have heard, standard standard we historical cardiothoracic longer. we've ISHLT, upcoming you've and historical the away declaring been as as call of I'll and care, the focus They of of Suraj, ISHLT the are care. the many hearing of standard cold I'm

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enough. for different it question about rephrase The again, you, the asked and come multipart one question, a I may. from and others Fair I'll have at if leverageability angle. everything maybe Stephen,

XXX the So possible, you that There us aviation. used were XXX these about give you was Gentlemen, is and ASTS that runs utilized the math give the Stephen, XXXX And if physician power with XXX sites again. point can what moving becoming that of President does beyond? roughly talking pricing in suggesting OCS, in made concentration organ Maybe, the sites. about life easier congrats aviation?

question. for Yes, Suraj, thanks the

that. me try address to Let

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apologize. what then And your was Suraj? third I question,

XXXX in beyond. leverage Pricing and

Yes.

moment, far pricing we've As model works. the that look, got a at as leverage, pricing

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as want for of just what part national Suraj, echo said, question, overall on transplantation market We're always. share What growing our leverage. question I focusing are existing as on transplant pricing to excellent especially look Stephen the Listen, is which volume. the we transplant at second an opportunity the don't in an is growing we volume. the

pricing We current a are We our partner trusted with transplant want to programs. be comfortable model. to

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speaks of we'll So itself, are. said, for that. revenue We're that's we it that. where And and the Stephen as at proud leave

next question The comes Sellers George from Stephens with Inc. Instructions] [Operator

a little could give if those based strategy that what a to we those more the curious for most you programs just the think How a if XXX aggressive secondly, could share just mentioned, transplant strategy deeper like clinical at time instance, little commercialization maybe of on, that that I'm about you in Maybe color strategy? share are that really having And on the us revisit over penetration look programs, to of strong you're quarter. to distance specific Congrats that drive on bit. a that's maybe last some working on? what then organs U.S. that question at detail, or travel some you work centers. the is those should different could

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As covered at QX stated, we missions current NOP the only the volume. of XX% I

have a go. we long So to way

discussed that comment I anything before. So we publicly can't haven't on

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outcome focusing care the the rest will on the on proving take outcomes focusing and the are measures of in We case. and We're itself.

and it's is Transplantation procedure. black a a white, life-saving

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number one. So that's

staff huge Number impact to resource support pay needs management. the double the time, two, hospital find the on staff, are or not them X.X, support even and transplant-focused morning, X:XX hospital At more. in probably

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that national our for last well and XX we to months we staff to of the rested the network As models XX have it through over which the kind shifts. is this operator largest service, NOP, is run numerous developed of ensure

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

everyone. appreciate a Thank wonderful QX us call. and We you speaking Have in time, Thank to forward so you. evening. much joining evening, the look this for your again we

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

lines, and now day. may disconnect have wonderful You your a