Boston Scientific (BSX) 26 Oct 222022 Q3 Earnings call transcript

Good morning and welcome to the Boston Scientific Third Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Lauren Tengler, Vice President, Investor Relations. ahead. go Please

President Welcome, our With Andrew. in Chairman thanks joining reconciliations earlier non-GAAP Executive for Chief issued the Officer. Thank press of XXXX a on everyone, release. results, today’s the today. release Vice Brennan, Dan me Officer; morning Mahoney, used Chief call us Financial Executive We announcing you, this and and and QX are measures and included Mike which

the as copy Investor of We Financials the that our of reconciliations have well and take your today’s the of morning’s The this guidance, Mike measures call performance Dan as we'll to website a Relations hour. in outlook will used duration posted & full and Filings. business, heading non-GAAP then release of will as under and call for QX the section including year approximately on our provide XXXX XXXX be one comments questions. well QX as

joined Dan Ken During Stein. today's Dr. Q&A Medical be and and session, will Dr. by Meredith; Chief Mike Ian Officers, our

we and are full is Baylis FARAPULSE close remind of revenue well announced which the XXXX. on organic further XXXX. revenue the comparable closed acquisitions sales. to X, which which include and to Preventice, call, closed operational include and the which as for as impact Surgical, everyone in excludes a on M.I.Tech, currency growth Lumenis I'd stake to Medical, the excludes of Before previously March respectively; year-end February September March, the growth Guidance organic on and Pharmaceuticals, of are which majority acquisitions XXXX. Relevant purchase -- excludes XXXX, that expected closed less foreign August Specialty like than by there BTG growth Divestitures agreement divestitures, begin, fluctuation XX, of for net period excluded

anticipate, all financial Investor refer of most to differences and or such These other which include cause identified federal only references those rates, laws, to website. statements our may expressed On SEC. more please today's or deck, are over point, vary estimate otherwise believe, words. could If the or it this as other of approvals anticipated our clinical including our call, within our market words and the specified, growth This share, by on our forward-looking this and other Relations and They may meaning revenue, organic. may, and be unless contains new trials, be and and include, about use, statements launches, found growth highlights For to may operating performance, information, call product and like flow similar which savings things, cost our securities expected Factors our opportunities, earnings, acquisitions, Risk expenses. turn sales sales, margins uncertainties financial intention among cash described section At materialize, turn to to implied as any XX-K comments. recent and in that expectations forward-looking underlying from materially speak statements out and filed and statements. risks for spend well I'll and if Factors our as date, subsequent results assumptions R&D XX-Qs the our actual we Mike incorrect tax certain disclaim them. the or his and update by obligation of with projections be expect,

of chain for particularly supply and everyone, the ongoing in and our today. quarter, third of in us you, light joining proud thank Lauren, Thanks, here the performance We're headwinds. very macroeconomic

the innovative continues portfolio and diversification be of and of team. supported the our Our performance by our spirit winning global strength to

of our grew our businesses Third testament is grew and the than eight innovation This which on our of XX.X%, and focus respective high to performance versus quarter total a year XXXX of believe double-digits exceed XX% nearly end XX%. X% operational category of company prior and and we sales range sales organically guidance grew to leadership faster strategy business does their Six grew that our strong units regions of with markets. execution. all commercial organic

EPS the range of quarter. $X.XX year headwinds low grew adjusted spend prior attributable our within slightly increased X.X% guidance of at Third versus end $X.XX, to and higher of $X.XX quarter FX the to

We and XXXX have of approximately organically quarter. for organic to we third this guidance grown growth to full are our year-to-date And performance, X%. XX.X% growth X.X% through approximately in light increasing operational year

to X.X% to exchange. $X.XX guiding EPS XX.X% X%. adjusted we're to to headwind organic of and primarily guidance For of also year to operational fourth ongoing We're updating related quarter the X% XXXX growth to XXXX foreign $X.XX, full revenue, growth our from

fourth XXXX improve to we $X.XX estimate goal have maintained EPS $X.XX. adjusted is operating our XXXX, to Our quarter margins. Throughout

XXXX growth particularly versus additional grew year. While the and East, most Regionally, and outlook. provide was does prudent considering and on I'll Middle our rate versus approximately cardiovascular of continued growth operational highlights full operational future points an all endoscopy, US I'm along versus -- sorry, of Europe, provide margin it's included updated adjusted approximate of some prior feel with our margin remains, approximately acquisitions. an of East basis now tailwind across basis comments Strong basis, this XX.X%. basis represent realized third we target our the Africa to an XX% point On Middle operating XXX XX% year. delivered prior pressures. of from business on expansion goal year macroeconomic quarter XX XX% a units,

within operationally with notable eight interventions. we In our portfolio double-digits. grew the growth India, Europe, and in growing Asia-Pac, strong XX% continue fueled growth excellent execution of see across We innovative ASEAN countries. seven accelerated with peripheral market within strength and our China, growth in by with Sales business cardiology units to emerging countries

impact POLARx, results WATCHMAN, by Japan to some continue saw quarter, including driven we strength While and COVID within our from new Rezum. FLX products, the see

our new product cardiovascular, across business delivered China the XX%. ongoing business results and CRM the driven in supported quarter ICTx third growth portfolio. PI of by primarily Growth team in our launches with Our excellent is units, by within and

our the team XX% new operational starting The on in markets quarter, America. quarter, exceptional the major growing units, on XX% and enabled than The XX Public grew Latin by across XX% stone third and management, third across franchises portfolio. double-digits More with basis. double-digits and an sales to All another which I'll business provide urology, and performance executed were training support. now units prostate operationally. organic Urology thoughts quarter all business in regions. in Health, remote grew Turning the launched some health with balanced the products grew prosthetic and

Mexico Japan. both received pleased We continue to Rezum have focus approval commenced of Korea the and to in and global and are launches expansion and SpaceOAR on in

quarter broad did we with enhanced best-in-class of and global our franchises in products. training. excited Technology, organic the and utilization and September organic activities, turn of enabling Ureteroscopes, acquisition sales about Lumenis In driven in Flexible market the was Laser Endoscopy, Our In the innovations, grew by management continues and and organically. product our Moses remain Single-Use education biliary X%. stone other revenue to single-use key This imaging products. XX% EXALT-D business opportunity portfolio LithoVue increased Growth category-leading Neuromodulation, physician ahead on focus by with ongoing development grew

Cord impacting impacted WaveWriter by Alpha, patient were year-over-year, demand sales ongoing strong below fast our international ongoing was while strong, US US denials flat were Stimulation. Spinal very growth demand pain interest our therapy. Vertiflex our SCS In challenges sales for and preauthorization Our procedures reimbursement SCS, with with in despite for both and franchise expectations, broad physician

We supporting have on in team a focused documentation requirements. place preauthorization the

US, we're therapies, our Stimulation, moved fourth quarter. This our we of XT the differentiated underlying full franchise. excellent another franchise In momentum well in Globally, therapies persist DBS organic and performance However, EMEA we international Within and digits challenges sales particularly programming delivered cardiology, third sales to in with double imaging strong XX%. stable third driven and organic interventional integrated we grew launch imaging STIMVIEW sales into operational seeing XX%. in the grew regions, will quarter, that Deep procedure quarter. in performed by anticipate with and do growing as our quarter, continue Brain continue coronary growth, growing LatAm in Cardiology regions US to XX% see the platforms. cardiology the

AGENT drug-coated for US launch very Importantly, to we in IDE Japan in-stent US in And restenosis. we XXXX, trial. first expect completed in This coronary treat in trial enrollment in to the our XXXX. recently a balloon is the

again, Our structural third continued heart strength neoX valves quarter Europe franchise with in TAVR with the our ACURATE did grow digits double in platform.

stroke. stroke risk meaningful device, analysis Additionally, overall PROTECTED reduction cerebral as Recall results from presented of a TAVR while of reach reduction demonstrated reduction embolic studied with trial statistical -- endpoint versus the stroke our not were clinically SENTINEL, late the endpoint in primary overall in relative TAVR With the unprotected XX% the a severe TCT. significance, in a PROTECTED protection TAVR disabling secondary did a primary at breaker trial TAVR. the

very Turning by first grew post to be XX to third XX% in FDA sales strong, in the physicians to label WATCHMAN. DAPT OAC Organic giving and further an include continues days Global patients expanded of supported the approval of choice DAPT, or quarter. implant. US growth

our in to WATCHMAN next-generation PRO a we new FLX TCT our also with is September. space, continue device, highlighted We at innovation focus event this which our FLX steerable on and Trusteer, investor in sheath

focus on management We sales build to to prior device high-voltage lifetime our PRO implant our strong grew In Cardiac mid-single with enhance from to broad franchise core designed and second-generation diagnostics digits sizes patient low of additional with grew CRM, as We healing. another expect had versus quarter we on organic performance, low-voltage coding Management, the our year. single portfolio. digits. continue in to Within FLX FLX Rhythm grew X%

XX% franchise and Mark We're well. Our implantable on grew for to have our operational basis. sales LUX-Dx, commenced we diagnostics Electrophysiology to cardiac XX% an an launch. on continues received our organic have commercial perform very CE and pleased basis monitor,

see contribution very FARAPULSE FARAPULSE. strength two POLARx are international to organically. comprehensive for includes into in expanding in and months increased this Japan which we POLARx utilization existing XX% in while strong, of remains demand continue and Europe centers, We see new Physician And and to grew portfolio, continue our at we accounts. from

Obsidio special pleased the In well growth on In access in sales major our in in expectations. franchises and In a the and for growing another portfolio Singapore have closed and to approval arterial extension remains Obsidio Oncology Interventions, is Interventional anticipate our the The the We're eluting peripheral grew a pleased acquisition execute longest XXXX. announced grew for PI driving and We to TheraSphere. data had for And committed focus length and FARAPULSE great disparities improving and therapies, We and outcomes to The with embolic portfolio. social a R&D, under with future. integration strong business despite technology achieve launching collaboration the excited regions. the full to with growth the In today disease have double-digits drug we sustainable received an addition, complementary stent Boston to addition we and invest we into to opportunities commenced year quarter strength various very macroeconomic long-term and tuck-in healthcare a provide our in disease track double-digit governance we're financial US. faster of in Arterial, with double-digits vasculature look ahead also We're drug-eluting within on quarter broad our in Baylis technology. with with Scientific. of ELUVIA all insights sales the Peripheral peripheral adjusted go to and expansion, the pressures, our portfolio TruVida, and continue patient the and grow better to FDA to the commitment line of approval XX% of strategic forward launched to division embolic continued the US to gel platform, in ICX differentiated flow the our Transseptal access, gel help progress aiming cancer the the with across persistent long-term organic first goals, quarter growth continues material Australia efforts, innovation differentiated in the on XXXX. to for generation. to on alignment strong focused about address our than and PI markets, and adjusted cash indication overall remain states. free environment, within remain operating EPS margin continuing this healthcare launch M&A

to of in be take his We're to Before Medical With as that, particularly and meaningful I turn great turn share want will April for moment it I performance that Dr. science Meredith, our over to dedication things to do patients, review detail. Officer, a extremely XXXX. humor. sense a contributions, retiring clinical our in Ian grateful Chief it's And Dan, now financial strong more Dan to of innovation. to I'll over

Thanks, Mike.

revenue to reported the million $XXX Third of and revenue million, represents from quarter foreign due X.X% higher a $X,XXX our versus US exchange, expectations the continued growth of dollar. reflects than third consolidated strength quarter XXXX headwind

this through was Sales our and growth from growth revenue through headwind growth, contributed acquisitions quarter. Excluding the operational July, to the of organic in XXXX. revenue XXX foreign exceeding of from resulting August Lumenis points XXX the basis point basis versus XX.X% range exchange, Baylis X% in guidance of FARAPULSE XX% high end XX.X%

and costs. largely Adjusted related freight our higher exchange a across top end continues resulting slightly macroeconomic third versus representing the expectations. the to The headwinds growth portfolio with the be of which range, of offset improvement pressures per in availability share foreign have XXXX. outperformance, largely slight on line achieving investment for adjusted quarter inflationary Continued R&D line X.X% in and in guidance low spend gross margin QX XX.X% particularly earnings challenging, was offset $X.XX, of our environment our to materials,

For manufacturing full adjusted XXXX, be headwinds to XXXX. in slightly continue macroeconomic variances attributable unfavorable approximately to costs and unfavorable headwinds increased recognized with XX.X%, labor expect portion six to we increased These versus predominantly Recall, $XXX to from in freight with margin includes are turns. inventory direct which gross year a material million below line cost over are months, related variances, our and smaller primarily availability manufacturing costs.

adjusted quarter than was lower expectations. Third margin XX.X%, slightly our operating

with for margin We update to SAVAL fuel line is XX%. the to near-term goal to quarter's growth. of write-off adjusted weigh included focus it continue on our but the We approximately global to spend to flexibility operating discipline to believe investments to now margin full expect our target to be One-time results minor operating allow charges operating year our within prudent program. continue top the margin a discontinuation related of expansion,

as intangible for the business primarily recognized asset to million addition, product. continues related GAAP On the reimbursement GAAP outlook a XX.X%. the of $XXX to margin the a Vertiflex challenges attributable impacting an face In third operating quarter we charge basis, impairment to revenue was

$XX higher interest Moving losses by to in million in from expense currencies. certain than Adjusted unhedged line. the totaled driven part below and other our expectations FX QX,

third tax stock basis, was items Our from discrete an XX.X% the tax rate for the accounting. on including and adjusted compensation quarter benefit

million items, weighted ended was $XXX free these tax fully the Excluding $XXX average $XXX flow now shares operational We from to and billion. activities capital expect XX%, outstanding. Adjusted free million adjusted with net year was cash $XXX expenditures. in line flow our be We with million cash operating approximately our million, flow less diluted XXXX with QX full $X free rate quarter for expectations. X,XXX cash million

Our million of legal million, related to IP litigation primarily June XXth was a $XXX September of reserve certain $XXX payments. and XXth, as versus decrease total mesh

of As had XX, hand $XXX of September we million. cash XXXX, on

goals. assess allocation remains Our financial conjunction M&A for capital top opportunities high priority we'll with our continue tuck-in quality to and in

slightly the now below walk through XXXX. at leverage September our for of and now As and X.X full times. XXth, X.X QX year year-end or guidance was be expect we leverage to times, I'll

to exchange year growth full XXXX, point expectations. than approximate which operational versus basis expect XXXX on XXX current approximately headwind be We based an our higher rates, from points XX.X% basis XXX excludes previous foreign revenue

revenue reflecting a Excluding be Baylis, basis now expect specialty in year our FARAPULSE, sales versus $XX QX XXXX in from acquisitions consistent XXXX, organic point contribution of growth. growth Lumenis performance and procedural full the pre-divestiture and X% XXX approximately million pharmaceutical we Preventice, of continued and confidence XXXX, to strong

X.X% XXXX, XXX We exchange approximate from a point XXXX revenue be excludes which to quarter on foreign range expect in versus headwind current basis to XX.X% rates. based operational of fourth growth an

we acquisition XXXX of quarter growth Baylis, revenue basis point fourth expect range in contribution XXX a be to organic to X%. from X% a of the Excluding

of XXXX continue full discrete for the expectations expenses We approximately standard with the recognized tax and benefit be to including XX%, XX%, to rate tax expect approximately at adjusted approximately our items tax year an year $XXX accounting below-the-line XXXX Full remain year-to-date. rate of stock million. unchanged compensation operational adjusted

rate of a the treatment legislation, R&D tax provision expectations expenditures. Our reflect including current on

this support historical expect rate of adjusted. And approximately revert if year reverse bipartisan be XX% range we XX% operational and full to legislation such were to provision. tax to to its would continue believe our enacted, We there's to

average X,XXX fully a weighted of shares and expect million million XXXX for count X,XXX diluted shares full share for We year XXXX. approximately QX the

hedging long-term FX strengthening our anticipate rates, US we minimizing Our strategy are $X.XX due EPS, FX through At continued XXXX of adjusted XXXX. on largely headwinds dollar. and unfavorable to which year full continues be of at effective versus hedged the current impact to $X.XX, per is on previous share now the expectations earnings we

we full to earnings adjusted X% per $X.XX, to year our a XXXX. As versus growth share to are $X.XX X% result, updating range representing

We to fourth to Lauren. a it before range expect be $X.XX. One $X.XX of in quick to turn item share per adjusted quarter housekeeping earnings over I back

continue dividend dividend impact the share conversion. stock increase We XXXX retire price point XXXX, scenarios, count will XXXX the These EPS of preferred on expect to and to our convertible In of will the expense method. to at of on full mandatory should conversion our approximately expense related using the mature $XX if-converted June May time at will our shares offering the immaterial. be which each resulting based stock share preferred Xst, million year

line moderate turn the growth. to remain back a continued environment, who Q& margin investment And share A. we For achieved to of innovative will check more operational and our QX outlines continued the with conversion. and Relations closing, with balanced momentum. proud more In Lauren, focused year-to-date top information, results despite which please QX on in MCPS on Investor it macroeconomic we've results website highlights, our details I'm I'll operating financial revenue for with that, expansion challenging above-market XXXX And drive the portfolio

Thank up Andrew, for open you, [Operator questions so. Dan. the Andrew, minutes next please let's go to XX it Instructions] ahead. or

First the Marcus question-and-answer JPMorgan. comes We will Instructions] from [Operator Robbie with ahead. now go begin question session. Please,

the quarter. Maybe a organic. Thanks to in guidance. taking also and Great. very congratulations question, top to digits line a really well-deserved Meredith retirement. look top quarter congrats continues Fourth double Dr. question for on I'll add for strong line, it was great a on my good

pressure I the we've a area on where think little margins. seen one is

elevated be year, currency was So, is you a Street's decent normalized There's margin in returning in I pieces the with look into with going it's spending. and us think or moving able next pressured an Do you a a OpEx hoping might how the count. you and the for share to generally to Dan, early give lot of Thanks. XXXX? to more think spot do year still expansion, be year next

Robbie. Sure,

I specifically. be that But helpful. give commentary to obviously, probably you some early can on comment XXXX I think would think, I

First, the really mentioned I be That a share EPS mentioned that, you on next of once converted. the MCPS, count. factor, shouldn't year's driving that conversion because really shouldn't impact

look Let me QX though. first, at

If expectations which lower is given reasonable of at of the was range, you FX from look the at $X.XX $X.XX EPS headwind the been $X.XX high of reported EPS end income achieved incremental revenue probably versus to XX. operating that the for $X.XX it's that lower to high $X.XX. which end at and is from have would quarter. is we the $X.XX, the percentage We the expect in quarter, the range, the than

term additional continuing inflation which there. time, in of to commentary initiatives given involves the reduce at performing well line, well. fuel to balancing XX% supply I understood, goal and offset same US a for lot think, top this Relative is while certain our short of to chain I operating the the And expenses year. be income full our headwinds, has percentage, to been is think very the the so dollar, the to impact, the strengthening not the FX

to full margin of you in slightly XX% XXXX while lower line of than we in in than And at look headwinds full margin keep think adjusted said, R&D adjusted second this inflation XXXX appropriate. than half XXXX, in operating mind, likely of If basis SG&A and higher importantly, than gross with income the XX be XX.X% a the would and XXXX, Mike have and with it as XXXX. scenario year And margin absorbing P&L this compared year points is and million higher components XXXX would XXXX. the $XXX line supply XXXX chain higher

balancing margin, XX XXXX, feel successful that for and very that about as is I goal again, points to operating a Specific long-standing doing looking XX% year. So per of very that to at the good to continue how year. number basis always our we're goal increase

If half. where in advanced we if year, on you said, look I points, basis second we XXXX that the we'll last with that then XX hit the be XX.X at XX. were and in And as even XXXX

I forward good So that and in and more feel to the look guidance XXXX are and we come as in timeframe, deliver we journey continuing evolve in XXXX to beyond. where likely February but

Appreciate Great. the color. Thanks.

with comes question from Larry Please, Wells next The Fargo. Biegelsen go ahead.

Good about the channels taking Neuromodulation. morning. just around are it your to about talk all growth in? except businesses seems like challenges rate growing more the a What question. reimbursement consistently Neuromodulation. there? you the And that could are wanted Mike, ask seeing little corporate Thanks for you bit I

accelerate earlier, the agree my especially Thanks with about Meredith, plan And and what's wholeheartedly I questions. Dr. your of just taking So me humor. also to growth extend comments for his congratulations in that to let the business? sense the

of we're yes, the peer Larry, faster group as every business every and double-digits and nearly the grew proud performance well. than quite region

in growth over. the China all Europe saw and You

of macro in deep the through in the Europe, and quarter strong Neuromod, two results doing business. brain double-digits, nice in and the US, broken the headwinds down is of proud not stimulation pipeline. franchise well, quite we're they're a And year. growing So DBS seeing really The the really extremely we're really some pieces.

getting we potentially the the spinal in few we're low business, this has as Really now. hopefully pandemic. think, during to past cord years now been over you The And single-digits call. markets, to pandemic. mid-single-digit the range market know, essentially stimulation the On tough of out as the

the in growth competitive bit market year, What's in the terms some of as Boston necessarily you've more hurting a And in we're seen the rate, you've spinal down throughout not market, market results we and the cord come US. this stimulation overall Scientific been the seen the denials in US. already, preauthorization believe. has seeing trend it So has

funnels. seeing are We strong patient

team focused trials. those our essentially obviously manage customers These The preauthorization need our So is building patients the help work. physician on really to capabilities additional products. products

I working think it's more right streamline through authorization And to of process get now. position we're challenge get an with the to and paid. them industry funnel to that patients

some So better anticipate on that Hopefully, have we more it so do and will mathematically. think like -- right need competitors, comps get customers XXXX than fundamentally, Boston headwind issue. our that will it's persist in a help our easy preauthorization fourth into system we will with building of But a the in the improve Us, to this class I and hiccups Scientific the with this that. XXXX. we're quarter. in issue based capabilities patients But helps now

much. so you Thank

Wuensch ahead. Joanne Please from Citi. go comes question with next The

improved for of much broader impacting Can on how are going the and last how very franchise? headwinds months, questions. you a and not Thanks. XX competition over apart You've you bit franchise? the sort an Thank those but WATCHMAN spend Sorry, those time reach. little segments of taking pick headwinds geographic or label we Can the maybe increased had are

It quarter. business a XX%. from US. WATCHMAN The of terrific The bulk had the that coming growth Sure. grew

XXXX. We've gate and the is of in situation impact the done slower is I us to results say market there China, which more a share the that bigger gain should Similar proctoring, have for COVID Europe, similar But given of restrictions, a COVID continued previous in by We It's important a calls. Japan, important. really slower I far, have the some has commentary. need launched and there to for would out US the the team job. same but bit in A recently better should given in but think comment excellent albeit XXXX. also get the most in an bit

the quarter in And momentum That back FLX out really, have that additional third converted some us ease quarter. refer. You benefits, we've in did the kind particular, label. EP DAPT call The as consistent did it's now referring and receiving the is the the of or the community had more physicians, cardiologist WATCHMAN, confident some from label. that to for implanting of, use, WATCHMAN support and getting safety each more in that is

we trials and it from XX% growth. WATCHMAN continue clinical coming differentiated it. so a of And quite that be We're we our behind roughly to of new market pipeline in champion FLX We're you're option the is have strong market what widen already aware And further products to healthy. to opportunity expect investing with the for very competitor calling the product.

top think we So, the we're our drivers. grow one we're market to be really growth to to going this and continue in a of good here invest position and have

you very Thank much.

comes The next question Please from Evercore. Vijay Kumar with go ahead.

maybe X the on here. financial Hey guys. question. for Thanks for side Dan, you my taking

sheet steep at any that Anything year, impact been next way? be current right the rates? And those the in to the think thinking for XXXX? impact next you would you. balance margin imply FX operating through P&L year, for Thank that Are pretty margins flowing capitalized XX% about inventories, year ramp QX, we QX. the should which think about about for have margins, what for the I when think

Relative Vijay? to -- again, say that

I the meant impact inventory for Not sorry. XXXX. XXXX,

so Yes, We're right, is right, got operating QX, year-to-date that. adjusted right? Specific your to math margin. XX.X%

gross to full that the back the the to There's past bit have fourth both and a seasonality We quarter implies do to XX.X% a we you we highest operating. few over have, place in if year QX look the that. get of for helps is the plans usually years, it a believe quarter XX%. So margin

looking that we're to continue QX. for trend So, in here

the but QX, that. Specific helpful it strong a plans in probably be to but can deliver on a we requires that. yes, XXXX, So -- we little bit believe have I to place

hedging I program. we that think us hedge somewhat do program, in years multiple our unique in to out

I for as in are we XXXX. hedged mentioned my largely So, commentary,

at So, the earnings year much if where of likely see they operating you to rates similar XXXX impact percentage FX. from don't you'd margin I what were an level, think see benefit to see on Recall, per you in stay this share. are pretty today,

in then that the that dollar-denominated, you OpEx our -- see the margin. majority lose P&L. our section gross of But the are OpEx in the because of You dollars

So, from contribution FX minor. the operating margin is very

So, what to similar assuming remain constant. I impact, about likely relative rates this would see to EPS year, not you much But say, to talk there.

Thanks guys.

Vijay Thanks

next with of Bank The ahead. from go America. Steed Please comes question Travis

to congrats Hey for the question. Also Meredith. Ian

I margin as and the three might the OpEx more ago? it the drove was months op was parts last quick Day Analyst question then to us remind the guide clarification. what higher And ask a have Just can earlier, So you on lower on versus but moving year. I for missed the going again XXXX

You growth closer in? double-digit And given for we're CAGR. still macro you're be XXXX in still committed in the the year, range, CAGR EPS Is good? a double-digit point that that and to were This pressures EPS double-digit X%. starting to that

double-digit that effect that on legislation this share, earnings went in about Yes, that's years. overall achieved And The that and tax the been many always $X.XX January. into in year. per change goal, we've our the growth is is issue for a year

of It's solidly if the old a were that double amortization So the legislation, be within tax. provision R&D digits. on we'd

forward stick that's double Investor and first going really Day. the your kind digits was...? talked digit remains then our And getting to of the goal we question at year. the this so, of And Double spokes as about

amortization advocating on others that and to lot a focus for just I'll comment. of reverse. society with R&D AdvaMed There's on

you will strong year. of that a some that double So FX digits were the XXXX. if the is and for neutralize in And annualize one-timer that

OpEx exactly And remind helpful. what change may could That’s on missed moving the margin parts that earlier. the you have I guide, margin op us higher what drove in again. XXXX the if and the just

Yes, balance within It's just it's really the a really. P&L.

are margin, gross think higher see you XXXX, lower higher of see R&D. versus where you'll if we SG&A So see and you'll slightly you'll

So we're appropriate we to balancing that in maintaining top fuel versus offset have the $XXX the to the and of continue just R&D line P&L million headwinds level to try spend XXXX. of And line. the that

within the really only So that's there. tweak

supply sure making and the offset top while the inflationary So to headwinds. we that still line, trying chain fuel

on Great. line. And top congrats good another

Thanks.

Please, Furlong Cecilia Stanley. The go with next Morgan question comes ahead. from

you taking thank the for and morning Great. questions. Good

deductibles. to versus And through the and expectations, saw bit wanted looking portfolio. walk August guide, across your Just color exiting a could September July you more then, XQ what ask if either your at on looking for just specifically China. in you're you seasonality. impact US, you guide. Any question. call OUS, from that Anything And would what out for XQ incorporated just either And the the thanks then at you expected taking

I think on don't of the specifics We're stand the own. organic the into the XX.X% results -- of their going we're quarter. I get the super to mean, Yes. we're I revenue growth in proud quarter. think

versus business And of have QX those the But what in QX, rest again, the has we again, itself. obviously, might proud ago. XX.X% for XX bit tremendous we of most giving days today. QX, where speaks are through Neuromod, So I think October in a Mike October. we're in digits. know of probably the where as is guidance momentum. -- Relative to are said, we challenged Neuromod expected double with We super through that And businesses delivered that in we

Yes.

regions. the You asked about

and a shout very innovation grow team You more And in product third and a continues launches. of the quarter. year And double-digits extremely the really the established the strong but team our of diversification the the double-digits US Europe to also in market, And grew mature portfolio in the the well to kind in very and It's quarter on China Western saw in in emerging there. this the is the the China. year out of markets European and Asia-Pac. full markets based also for done strength business in particular over strong, XX% quite performance

So, we're trials on you're many particularly in the And the to working throughout get products, of the products in improved through I mentioned in EP, script, region year. balanced Europe, as growth these those clinical across seeing and each in really US.

Thanks the for Great. taking question.

are You welcome.

The go Stifel. Please next from with question Rick comes Wise ahead.

large question. hi Two the Mike, recovery, picture just product Dan. Maybe and questions. on just one Hi one

maybe have the of saying extent On getting more going FX And the Are are to I staffing macro improving other keep grown a and recovery, have are issue, myself I'm still then follow-up worse? freight were general Is I even obviously, cost less to I'm in staffing. an things an stabilizing would or some side staffing continue. what a of stabilizing very you the is curious -- factor headwinds notable product issue? But particularly even if question. rapidly. that's on

Sure.

of some of challenge of staffing, incrementally likely. Maybe ways hospitals. some were to a they the forcing them better, quite could you've seen gotten portfolio. managing hospital a innovative the procedure on but are be And be a public times, find report. nice change it's continue the for big reducing it. our shortage staffing us volumes hospital with job improved If we the healthy. On still shortages, they're do, procedure it's But better. certainly which companies, Despite through little Despite to doing bit that, the quite

improvement for be more very due provide the there of longer the we incremental improvements to over $XXX we as raw XXXX. cost. may cost, is gets supplies some that supply supply, areas, not at tied some contracts shortages increases. better, versus The headwinds about and million-ish have are product hospitals. going seeing a better, of in the materials might ongoing And we ensure bucket that time have overnight. slight And some I those term purchase. slightly price staffing slowly, It slight up hefty of but impactful environment still better, bucketed it's to upside we chain, get biggest some come but the tough more other and supply in the So, chain And expect but some most freight XXXX. material talked The bigger the think costs some that's -- we there the to

better getting in see don't XXXX. we bucket, that So

that as annualize we'll forward XXXX contracts. So, you we those think in carry

plants our get efficient Some other will of manufacturing the areas productivity and the forth. so of more

to our of Dan headwinds XXXX bps carry we for XX as So, XXXX. primarily supply we material mentioned, into margins year, expect versus similar cost the chain improve did this to many But plans.

manage will goal margins improve through to XXXX to be and in that. continue Our

in remind Mike. XXXX? you centers extremely in color update for Can opened? And again. going XXXX any like -- and in on track asking incremental well. sounds if about things are just And FARAPULSE Europe, That's for readout the approval everything still to you maybe FARAPULSE. Thank data maybe demand data us, us just It hard great, US it's resist -- talk about is of on drivers

Dr. cover have Stein one. Thanks, that Rick. I'll

think for thanks, if the of as headwinds the seeing the where said product and question. sure, really, to safety least It's be be with with we promise are centers the rollout proving at mentioned the we're very Europe centers to the We're in open outcomes continued of commercial And terms to new enhanced as being and just launch. Mike opened effective. in procedure certainly, FARAPULSE Yes, date. in And thanks, of we at staffing, Mike, drivers of in pleased much really is right? as as compared more terms couldn't the continue it's a Rick, it's not efficient Europe what to always issue technology, more efficacious, thermal able with growth have to in ablation, with that happier what procedure terms and I date, both the we've

of, on then and to all of was completed finish year data the again, in, of enrollment endpoint it's FDA ADVENT IDE midterm the in have We to hands regulators. the primary trial our still that next then track and for and the follow-up the submit sort US that in trial,

Thank you, much. very

from next with The Piper comes Jaffray. Please, Matthew O'Brien question go ahead.

as congratulations for you're me offer taking continue tech diversified like growth, growth because bit faster pain spending Mike, it now these of your out near-term right you of a one to taking continue let Good on be names morning. in to And Meredith there. well the areas, his my med retirement. question. little seems my to Thanks Dr.

you of there. stay growth, if to more momentum of med continue where other faster in than So broad-based tech level kind if one in going this is across improvement be you. going I'm large-cap don't out a just to what it's can if or double-digit where the little Thank the know specifically different or And more that bit range historically. areas. keep some a franchises all like it's if curious, going names you I to seen be in you feel it's can into of of we've cardiology growing focal areas, XXXX,

get Sure. we mentioned throughout and grow all across seen the What of to of is new pretty innovation you've mix many quarter that our you've similar the each and the we innovation seen teams have. lower And smaller on we performance in consistent the eight in because quarter, six quarter. as markets, times, of M&A and And year double the our commercial -- year businesses growth digits each those grew divisions, layer the faster. this performance of

So well. our and that's it's formula, kind of pretty work proven to

-- in more and that outside neo our will with our FARAPULSE is And other XXXX decisions will which US, and in well that of about, in that we're very the the portfolio the we the excited the you're cryo of script Agent great be portfolio that Dr. exceptionally look Stein as launches. have we period, whether we very balloon launches needle seeing we As in significant, excited move and really and the Europe, mentioned, the coronary the just ACURATE growth valve, have. where some it about launch XXXX, Most are significant we're change launches in make, the Japan. of think next significant that's EP doing year we

be So FARAPULSE persistent that a require quite trial a starting clinical of the R&D here. does coming bit and with in We'll work. months

peer In So spend that guidance over fuel we give above our February. appropriate R&D think to growth in XXXX, LRP. is we'll the consistent market

give based we're guidance we're what peer XXXX at quite we're a group. Interventional in we're and XXXX in you if you year. above We our Oncology this performance seeing the for tougher look will be there. the company, in what confident if delivering, have whether But of But the future have business, it grow that consistently -- next at look on we growth Europe excited will EP bring, bit based X% LRP more we'll comps and clinical will in the or and what the on the business that science estimated

question next from go Taylor Jefferies. The ahead. with Please Matt comes

thanks hear Hi, for me the you okay? taking question. Can

Matt. fine you hear Yes,

Dan. Thanks

Okay, to QX. about just X so circle ask and I wanted back

you plus quarter-over-quarter? delta that on did quarter. you the anything is conservative? seeing just XX% versus But organic the tougher. else you comp highlights the you out there? Are on X% this call being anything Obviously, of is Any there down? to slow the X% kind Are Just

really both I as a is is Neuromod lot the businesses. double-digits in internationally. we've rest the better than just eight more average have, continued the launches think QX, the in comp, of difficult. which six But we And product say, momentum of of with good of of the new basis the lower the XXX it's points to and continued part US

momentum. great year versus will if So, we organic for X% you delivered great I year I that And And company. the a once I think comp, be for for XXXX, growth full revenue the the a QX. clear think it's business think has great the

What are I that, with I start things to staffing come volumes? quarters next due? guess, heard Great. about signs to how Can that of slightly that know, guess, peers do I over of that ask with you more you the Would pent-up you from we X have of square could that, And follow-up? the wanted to release demand help signs seeing better? couple other reported. found some -- getting just I are the the

is We been volume there pent-up in but system it's certainly the a think the is while. demand, good. for And pretty

a wait in look replacement you're your be You or XX typical at product to implant. whatever, or men's XXX-day Oftentimes, whether getting the a US. backlog, it a knee health Afib a

demand. so see certainly that near-term. in cured the there's getting I But don't And pent-up

strong very there's shortage a of just demand. so -- hospital procedures. to there's think patient that staffing do I labs bit a only is There many has a a

is busy, And future very lab and their months. volume, waitlist strong some outstrips in just we demand don't many busy the sign that But so drive shortages see changing coming we cases that hospitals time guess I supply the of the the which that waitlist. here and despite good pretty in dramatically extremely see a for staffing

thanks Mike, Dan. Thanks

Chickering Please from Bank. Pito Deutsche next with comes ahead. question go The

Thanks Hey good my morning guys. question. for taking

be the clear, isn't pre been about bottlenecks product just and within as last portfolio any all And seeing funnel but normalize across think for across Have you get this hospitals, to health about funnel touch you your while procedures points your systems. COVID it's since that patients growth? levels? the care organic Now, to staffing versus spike. COVID nurse Are necessarily the a seen you

think Yes, you. thank I --

the a with it's and sometimes smoothed the pretty over quarter better. happens good It procedure on the third depends world China similar did in the pockets slowdown the doing growth that's what all overall, with depending in out been see COVID. And in of think you We bit see world. last response. on Japan. underlying to I region us But a and pockets

here, being But And is a so issue. to shore an very are quarter resolved as XXXX. again, innovative wait list. shortage longer strong you think and It's XXXX I fourth Hospitals still staffing try to common be not in look going that see patient up. to to to demand,

that. the despite see But but see do a strong underlying consistent still demand the we staffing we pretty shortage. for fix quick don't demand, So,

so Thanks Great. much.

comes question Chris next with go ahead. The from Research. Please Pasquale Nephron

on denials Neuromod. I the follow to increased of in prior up wanted

data helping to with documentation, allow had what help? clinical the more reticence You you about think that physicians to And front? talked those access planned what addressing on underlying had you about therapies? but can payer Do

that's science mature does quite quite of team terms for The product last on. of a teams It's we comment contact with it's bit competitors that preauthorization evidence. been we of across aim -- bit and to it's improve years. payers. in clinical studies But pretty worked recent do therapy to some of a those just a market that of denials hema few clinical more in number the increased certainly through need be it's bit reemphasize with terms to it the the just work directly to Part their payers is our that really process. and And We efficiency. clinical much a our really that approvals. I'm well-accepted -- a of actually

Got you.

Okay.

by and related our Boston don't poor related group established whether not There's good to I the any data think it's it's it a an orthopedic and well physician Scientific it's out. or to not proven clinical any pain data. be clinical at peer implanter, -- slowdown well -- the related is physician. It's

market it is of it's through was the some a slower, that think issue. I historically. mechanics even also denials think the overall, I preauthorization the these But than excluding is bit of working

about renal and innovation become [ph]. How hot of going you is with topic that AHA. Vasix there at ability new growth potential thinking then to the at a a to as be therapy time driver And had participate one cardiology? in Boston's does are a program there Boston it

that take Meredith, one. Dr.

trial is the come Yes, hypertension RADIANCE study Ultrasound. we hypertension This improved. problem will is is space out we This with significant thanks, a opportunity. we come be therapy, and Obviously, still the just follow question. a AHA, this an TCT a Medtronic Yes, out of very real II enormous cardiovascular good and the Chris. and globally, It's see carefully. saw results results could

variability cardiovascular therapy. a reflects in got the have whom a that we to arm problem. very to should pay probably that significant effect. we've Hypertension we you of If do But in that It's We to And field there's the more treated understand it's attention be form using follow closely. to. look, this real one opportunity. is massive

Thanks, and congrats, Dr. Meredith.

Thank you.

last I and be from question, Please with one ahead. And time go Barclays. there Miksic is understand that Matt for would

squeezing thanks Hey for much in. me so

Matt. morning Good

we've certainly referring months Dr. Hey to on to quarter, that your humorous about guess So, to you? and how that got miss everyone is disposition. six to. I get we'll this really thankful Meredith, side your are And a congrats insights and know cheerful strong I'm

So, I look forward to that.

that FX, pretty the year. could, it on one $X.XX you talked explains Dan, impact follow-up, if much for the seems EPS guide I in and the margins. Just reduction about like of

here. question It's QX maybe a Just such on trajectory. strong one

the And give around QX your me of a growth. into comment strikes That on just will I not far questions how talking costs but the and then for lot strength, range love maybe You're given some at EPS were of about a Or I'm for thinking sure this margins. half bit if it's little And there's sort organic conservative know to top should we about adjusting I end you're shape for back been the about XXXX, a of that. be of higher XXXX XXXX half, as go. but think we much of point. on can -- you as the inventory is and this much. costs front and Thanks that so think roll about should so on? we insight P&L they any but say, to how early through too

question. Matt. A in that chew on Sure, lot to

to agree the -- now assertion. down the for $X.XX was share $X.XX. The year, is impact $X.XX. with $X.XX FX your per I from first, That's is FX $X.XX on that to FX. it the adjusted guidance EPS $X.XX, earnings $X.XX So, is the

for So in the that to difference is the guidance. $X.XX $X.XX change

On conservative. the it revenue for QX, your comment that appears

I think it's appropriate.

business think are and momentum XXXX, I we've just gave all probably wait appropriate. the I program. teaser we just let that, and I how early. we bit is we think I variables operating And performed for where the you margin give gave to in our year hedging XXXX has beyond. you to the and in our think looked super other But than specifics. given the little of a are over to continuing I'll there, guidance But that expand that all forward that there on think time. excited But trend different FX, bit that and on at we is mean a -- obviously, continue I until that the about I it's this company think guidance other the a with than goal look officially

in interest to don't reach hesitate you Thank Relations appreciate team. please right. All we to if unable to any Investor your you to question today. We out or get were Boston If Scientific. your the have joining follow-ups, for us

all you. details for give Before you you disconnect, will pertinent the Andrew the replay. Thank

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